The political situation in Britain, Anglo American relations, and the Imperial Preference system.
IOTL, Winston was in a very difficult position in 1942, Britain had suffered a number of serious defeats, and was not doing well. The combination of the loss of Poland, Denmark, Norway, Holland, Belgium, France, Yugoslavia, Greece including Crete, recent successes by the German/Italian forces in North Africa along with the Japanese successes in the Far East, DEI. And the subsequent threat to Australia, with in addition the increasing losses in the Atlantic, as a result of the American declaration of war against Germany. There were serious questions being raised in Parliament, the establishment and the press, about his Premiership and the conduct of the war. While there was little chance of him being removed, he had to tread carefully, especially in his dealings with Parliament. ITTL, the situation is very different, yes Britain has suffered much the same losses as IOTL, however there have been significant changes, while Winston is to an extent responsible for the debacle in Norway, Poland, Denmark, Holland and Belgium are nothing to do with him. Not only is he not responsible for the failure in France, the slightly better result, and the ability to divert resources to the Middle East. Have provided him with a much better result in the Middle East, where the Italian attack on Egypt and British East Africa, has been a complete failure. And while Yugoslavia and Greece have fallen, they retention of Crete and thanks to British success in North Africa, the lifting of the serge of Malta. Has avoided the major losses of men and equipment that were seen IOTL, which has had the advantage that there were resources available to defend Burma and Malaysia. In contrast to OTL Britain is reasonably secure, and is beginning to enjoy a number of successes. Note the leadership in Spain and Turkey, are looking at Britain with far different eyes now than they were IOTL, and the general attitude is to be far more cooperative than it was.
Anglo American relations are now on a very different situation than they were IOTL, Britain is not the weak apparently on the ropes nation, that it was to American eyes in 1942, desperate for the Americans to ride over the hill and save them from defeat. ITTL, Britain is a strong nation that has weathered the initial onslaught of the war in Europe, and is beginning to punch back in a significant way. In the conflict against Japan, the British have in comparison to the Americans enjoyed success, suffering far less losses in men and materials than the Americans have. While the Americans are still reeling from the attack on Pearl Harbour, and the loss of a significant portion of their fleet, which has pushed them into third place in regards to capital units for a time. Britain is now number one, and the Japanese are number two, and this situation will only change once the Americans have recovered and repaired the battleships sunk and damaged at Pearl. And American industry has produced the stream of warships that it did IOTL, but it’s going to be mid 43 before America is once again equal to Britain. Note that the British are not going to be asking the Americans for the loan of an aircraft carrier to help them fly in fighters to Malta, as they did. It’s more likely that the Americans will be requesting the British to loan them two as apposed to one carrier to support their Pacific Fleet, during 42/43. Without boots on the ground in Europe, the British will be able to very much set the agenda up until mid 43, and in the Far East until late 44. The relationship will be far more equal, and Britain more likely to have things their way. Britains desire to liberate Greece and be involved in the Balkans, is going to be virtually impossible for the Americans to resist. All that they can do is decline to be directly involved, which is a political mistake, though the Americans will not realise it until post war. Yes Britain will be financially strapped by the end of the war, but no where as near to bankruptcy as she was, and thus able to get a far better deal in the post war settlement than she did.
Imperial Preference was complex, and the attitude of American corporations to it was varied, some liked it, a lot were indifferent, and others hated it with a passion. Companies like Ford, GMC and Hover, liked it and used it to their advantage. They were able to operate in a closed market, that restricted foreign competition, and used a clear set of rules, that all were obliged to follow. They could own their business outright, with no requirement to have local investors, and they were able to remit their profits to America without having to pay a tax on such remittance. The system of law was close to their own, and the language similar, with just differences in some spelling and meaning, ie a rubber in England wasn’t the same thing as a rubber in America. Because of the stable political system, it was virtually impossible for a British company to buy a politician and gain an advantage. Such companies once they had grown used to operating in Britain or the Dominions, quickly learned to take advantage of the situation. Others like the Nowherevill Ice-cream corporation, didn’t care on way or another, they weren’t exporting ice-cream to Britain, nor were British ice-cream companies exporting to America. However there were some like the United Fruit Company that absolutely hated it, as it servilely cramped their stile, and effectively excluded them from markets that they thought should be theirs. Unlike in Central America, where they could buy a government, ignore any local laws, have their own heavily armed militias, and if the worst happens and their was a revolution, get the American government to send in the marines, and put things back to just the way they liked them. However they couldn’t buy a government in any British Caribbean nation, nor could their ignore what primitive labour, tax and land rights, were in place. The police were owned by the government, and took a very dim view of anyone trying to usurp their power, and if you tried to play the big man game, the RN and Army would come knocking. Asking the US Government to send in the marines, to enable you to get your own way, was going to result in a resounding NO. Yes Ford and others had problems with the strength of both the labour laws and unions in Britain and the Dominions, but as their competitors were affected just the same, they learned to live with them. The biggest problem for any American executive sent overseas, was the lack of a decent cup of Joe, and the all prevailing tea culture. They thought that the had eliminated this in Boston in 1773, and tea and the British attitude as to how to conduct business, came as a major shock to some American businessmen.
RR.