The cost to Britain of remaining a Great Power had greatly increased since 1939. The country’s expenditure on all military and diplomatic activity in the years 1934–38 was £6 million per annum. In 1947, on military expenditure alone, the government budgeted £209 million. In July 1950, on the eve of the Korean War—i.e. before the increase in defense spending that followed the outbreak of war—Britain had a full naval fleet in the Atlantic, another in the Mediterranean and a third in the Indian Ocean, as well as a permanent ‘China station’. The country maintained 120 Royal Air Force squadrons
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