Step-by-step explanation:
Labour rejoiced at its political triumph, the first independent parliamentary majority in the party’s history, but it faced grave problems. The war had stripped Britain of virtually all its foreign financial resources, and the country had built up “sterling credits”—debts owed to other countries that would have to be paid in foreign currencies—amounting to several billion pounds. Moreover, the economy was in disarray. Some industries, such as aircraft manufacture, were far larger than was now needed, while others, such as railways and coal mines, were desperately short of new equipment and in bad repair. With nothing to export, Britain had no way to pay for imports or even for food. To make matters worse, within a few weeks of the surrender of Japan, on September 2, 1945, U.S. President Harry S. Truman, as he was required to do by law, ended lend-lease, upon which Britain had depended for its necessities as well as its arms. John Maynard Keynes, as his last service to Great Britain, had to negotiate a $3.75 billion loan from the United States and a smaller one from Canada. In international terms, Britain was bankrupt.