JC History Tuition Singapore - What is the steel trigger price mechanism - Global Economy Notes

What is the steel trigger price mechanism?

Learn more about the steel industry in the United States [Video by Wall Street Education].

Historical background
By the late 1970s, the share of imports for steel in the United States (US) market rose to 18 percent. This was substantially higher than the 2 percent in the late 1950s. In response, there was mounting pressure on the White House for protectionist responses.

Led by US President Jimmy Carter, the US government launched a programme to advance the domestic steel industry. At the core of this programme was the ‘Trigger Price Mechanism’ (TPM). This mechanism was targeted at the prevention of ‘unfair’ price competition from imports.

How does the Trigger Price Mechanism work?
Given that Japan was being identified as the lowest cost producer of steel in the world, its production costs would be publicly declared as ‘Trigger Prices’. Should the price of an import shipment be below the ‘trigger price’, the US government was authorised to intervene and act against the foreign supplier on the grounds of suspected dumping practices (i.e. export priced below the market price of an importing country).

Notably, the TPM functioned well in industries that were guided by price leadership. Once a market leader sets its ‘leading price’, other competitors would follow voluntarily. In 1920, the Supreme Court made a decision in the United States Steel Corporation case, declaring price leadership as an acceptable practice under the US anti-trust law. In other words, if the White House declares the ‘fair prices’ to all producers, these prices will be observed. By doing so, price competition can then be minimised.

The TPM was in effect from 1978 to 1982.

With the recession of 1980, prices of imported steel fell by less than 1 percent, and the price of domestic steel declined by 5.5 percent. In the first quarter of 1980, U.S. Steel filed dumping complaints against five European producers. By basing the trigger prices on Japanese costs, the program gave the higher-cost European producers a license to dump. […]

Nevertheless, the real price of imported steel continued to decline, producing another round of complaints from the steel industry in 1982. In addition to allegations of dumping, the steel companies maintained that foreign steel companies were being subsidized by their governments and that countervailing duties should be imposed. This charge led to the permanent suspension of the trigger price mechanism.

An excerpt taken from “Has trade protection revitalized domestic industries?” by Daniel P. Kaplan.

Did the Trigger Price Mechanism benefit the US steel industry? Assessing its impacts on the world economy.
The TPM functioned as a form of trade protection to enhance the efficiency of the domestic steel industry. Since 1960, the steel industry has not been as profitable as manufacturing, on average. With rising debts and low profitability, the domestic steel producers struggled to accumulate finances. Even with the use of the TPM, the profits generated were inadequate.

In summary, efforts to modernise the steel industry under the Carter administration were disappointing. By 1984, employment in the steel industry fell by nearly fifty percent compared to 1968. Instead, the TPM contributed to an increase in the world price of steel, indicating an adverse impact on the global economy.

The trigger price mechanism has, however, altered the geographic pattern of imports, cutting into the Japanese share of the U.S. market to the advantage not only of European producers, which was part of the original intent, but of such fast-growing newcomers as Brazil, Korea, and Taiwan.

The most striking impact, however, of a trigger price mechanism based on Japanese costs, given the rapid appreciation of the yen, has been to raise prices. Trigger price levels rose by more than 10 percent in 1978, almost entirely as a result of the yen’s appreciation, and were scheduled to rise by another 7 percent on January 1, 1979. […] In the words of the EEC’s steel producers’ group, Eurofer, the trigger price mechanism “has raised steel prices all around the world.”

An excerpt taken from “The International Environment: Readings” by Eston T. White and Walter R. Milliken.

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JC History Tuition Singapore - How did Pakistan came into existence - Indo-Pakistani Conflict Notes

How did Pakistan came into existence?

Examine the historical significance of the India-Pakistan partition in 1947 [Video by TRT World].

Quaid-e-Azam: Enter Muhammad Ali Jinnah
In 1876, Mahomedali Jinnahbhai (Jinnah) was born in Karachi. Seven years later, the eldest son of a merchant moved to London to study law at the Lincoln’s Inn. In the process, Jinnah learnt more about nationalist politics.

Jinnah then returned home and joined two organisations – the Indian National Congress and the Muslim League. He urged both groups to seek cooperation in order to achieve self-government. As a result, the Lucknow Pact was created in December 1916. The Pact presented a set of demands to the British, such as greater representation to the religious minorities in the provincial legislatures.

The [Lucknow] pact, according to Lal Bahadur, “proved the British allegation of sharp division between the Hindus and the Muslims and justified, for all intents and purposes, all earlier propaganda of the latter regarding the exercise of the so called high handedness by the former… The ought to have understood that this concession to the Muslims separationists would tear the nation forever into two sharply divided communities“.

An excerpt taken from “Muslim Separatism and the Partition of India” by Debadutta Chakravarty.

However, the rise of Mahatma Gandhi gradually overshadowed Jinnah’s prominence in Indian politics by the 1920s. Over time, a political rivalry between the two political figures surfaced. Gandhi led the Indian National Congress, whereas Jinnah helmed the Muslim League.

A nation for the Muslims in India: The Lahore Resolution
Jinnah stressed that the Muslim League represented the Muslim population in India. He asserted that the Muslim interests were not adequately protected in spite of the 1937 elections. More importantly, Jinnah claimed that a Hindu-dominated India would be problematic since the Muslims should also play an equally important role in the politics of an independent nation.

Jinnah asserted in 1940 that the Indian Muslims were not a minority but a nation, thus entitled to the principle of self-determination. Under the ‘Two-Nation Theory‘, the Muslims and Hindus are two separate nations. The Muslims should have their own separate homeland in which Islam is the dominant religion, which differed from the Hindus.

On 23 March 1940, the Lahore Resolution was made by the Muslim League, calling for the autonomy of territories in the northwestern and eastern parts of British India. Notably, 23 March is the National Day of Pakistan.

Ironically, inasmuch as it had outlined a separate Muslim homeland, the reference point for this parallel federalist thinking was the 1940 Lahore Resolution, which was passed by the All India Muslim League and canonized as the raison d’etre for Pakistan after partition. […] The Lahore Resolution raised more questions than answers. Would there be one or more groupings? What was the meaning of independent sovereign units? How many states were visualized for Muslims?

An excerpt taken from “Unstable Constitutionalism Law and Politics in South Asia” by Mark Tushnet and Madhav Khosla.

Choudhry Rahmat Ali came up with a name for an autonomous Muslim state in northwestern India: Pakistan. It was an acronym composed of the first letters of Panjab, Afghan Province, Kashmir and Sindh and the last syllable of Baluchistan. Although Jinnah initially objected to Rahmat Ali’s proposition, the former eventually accepted the creation of a ‘moth-eaten’ Pakistan on 14 August 1947.


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JC History Tuition Singapore - What is Article 370 - Indo-Pakistani Conflict Notes

What is Article 370?

Learn more about the historical background of Article 370 to understand the impacts when the Indian government revoked it [Video by DW News].

Historical context
After the end of the Second World War, Third World nations went through decolonisation. In 1947, the British Parliament passed the Indian Independence Act, fulfilling the aspirations of the people in India.

On 15 August 1947, it was declared that India was to be partitioned to form two independent dominions – India and Pakistan. This Partition was attributed to multiple factors, including Lord Louis Mountbatten’s hastily conceived strategies to withdraw the British.

The division of the subcontinent into India and Pakistan was triggered by a combination of factors in the metropole and the colony: In addition to the shifting colonial position on retaining India as a colony, the demand for Partition was articulated within the context of a colonial state’s framing of provincial politics and intra-elite factional conflicts within India that had already prepared the ground for irreconcilable differences. The two-nation theory, driven more by politics than religion, grew in momentum from the fears stoked by democratization in the 1930s, the Indian National Congress’s anti-war stance, the growing empowerment of the Muslims League, and the British announcement to quit India.

An excerpt taken from “The Performance of Nationalism India, Pakistan, and the Memory of Partition” by Jisha Menon.

Incorporation of Article 370 & Article 35A: Special Status of Jammu and Kashmir
Through the Instrument of Accession to India, Jammu and Kashmir (J&K) joined India in October 1947 after much contemplation whether to accede to India or Pakistan.

At first, the Princely States of India were permitted to have a separate constitution. However, in 1949, they agreed to accept the Indian Constitution for their own states. In contrast, J&K opposed this move. Then, Maharaja Hari Singh’s successor, Sheikh Abdullah, forged a new political relationship with India, leading to the attainment of special rights for J&K. This was known as Article 370.

On 17 October 1949, the Indian government introduced Article 370 as part of the Indian Constitution, granting J&K autonomy of internal administration. In other words, J&K was permitted to pass its own laws in all matters, excluding finance, foreign affairs, communications and defense.

In 1952, Abdullah and Nehru forged a 1952 Delhi Agreement, which led to the introduction of Article 35A in 1954. Article 35A functions as a provision for the special treatment of ‘permanent residents’ of J&K, such as employment, property ownership and settlement.

Article 370 was incorporated in the Constitution of India with particular reference to Jammu and Kashmir. No other Princely State that acceded to India in 1947 by executing the same standard instrument of accession was referred to in this way in the Constitution of India that came into force on 26th January, 1950. […] Yes, may be there are still some in J&K, who have grievance against Nehru or Congress for putting the people of J&K in illusions or still keeping J&K like a Colony, earlier it was of the British and now it is of India under Article 370 some may allege.

An excerpt taken from “Jammu & Kashmir- A Victim: Understanding the Complexities of the Conflict in Kashmir” by Daya Sagar.

Recent developments: Revocation of Article 370
In August 2019, the Modi government revoked Article 370, marking an end to the special status of J&K. Modi asserted that the revocation was necessary to place J&K on the same footing as the rest of India, aligning with his political party’s election manifesto.

The shocking announcement raised concerns of demographic changes within J&K, as non-Kashmiris would be allowed to purchase land in the Muslim-majority region.

Despite the provisions included in Article 370, there have been several presidential orders over the years that India has used to increase its reach and control in the state. Nonetheless, Article 370 was symbolically important for many living in Jammu and Kashmir. The state having its own constitution and flag allowed the people to hold on to a unique cultural and linguistic identity. Consequently, the revocation of Article 370 was perceived by many Kashmiris as an assault on their national identity.

An excerpt taken from “Abrogation of Article 370: An Analysis of the Supreme Court Verdict” by Imran Ahmed and Muhammad Saad Ul Haque.

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JC History Tuition Singapore - What is the Instrument of Accession - Indo-Pakistani Conflict Notes

What is the Instrument of Accession?

Historical context: India divided and the British departure
In 1946, Britain declared that it would grant India independence. The Governor-General Lord Louis Mountbatten declared that this important phase would commence on 15 August 1947. However, views on the ground were divided on the matter.

Leaders of the Indian National Congress Party, Jawaharlal Nehru and Mahatma Gandhi, called for a single federal dominion of independent India. They believed that a united India was vital to bring people from all faiths together.

In contrast, the Muslim League leader Muhammad Ali Jinnah insisted that the Partition was necessary to form an independent Pakistan that governs the Muslims rather than to remain subordinate to the Hindu majority of India.

As such, the British civil servant Sir Cyril Radcliffe was tasked by Mountbatten to draw up the borders between India and Pakistan.

An illustration of the Partition of India [Sources: Nigel Dalziel, The Penguin Historical Atlas of the British Empire, Penguin Books, 2006; George s Duby, Atlas historique mondial, Larousse, 2003].

In less than ten weeks, a British layers, Cyril Radcliffe, who had never set foot on Indian soil, presided over the partition of British India’s two largest multicultural provinces, Punjab and Bengal.

After first rushing Radcliffe to finish drawing the new maps in desperate haste, Mountbatten embargoed them as soon as Radcliffe finished, refusing to allow even his own British governors of Punjab and Bengal to see where the new lines would be drawn, such that no troops could be stationed at key danger points along these incendiary provincial borders, no warnings could be posted for desperate people who, overnight, found themselves living in ‘enemy’ countries rather than among relatives and friends.

An excerpt taken from “India and Pakistan: Continued Conflict or Cooperation?” by Stanley Wolpert.

As a result of the Partition, many Hindus and Muslims were subjected to violent attacks from opposing sides. An estimated of up to 20 million people were displaced as a result of the Partition.

Enter Maharaja Hari Singh: Jammu and Kashmir
On 26 October 1947, Maharaja Hari Singh, then ruler of the State of Jammu and Kashmir (J&K), signed the Instrument of Accession (IoA) with India. Initially, Hari Singh wanted Kashmir to remain independent, but changed his mind when attacked by tribesmen from Pakistan during the Poonch uprising.

J&K was founded by Maharaja Gulab Singh in 1846. It was strategically located within the border provinces of Gilgit-Baltistan and Ladakh, thus explaining it being a hotly contested territory.

The circumstances, as they developed owing to the raids of tribesmen, were such that immediate action was uncalled for. The invasion of tribesmen was possible only because of Pakistani support. Mahajan commented: “The tribesmen were subjects of Pakistan. This was an unprovoked act of aggression. The Maharaja had done nothing to invite it. […] Unless accession took place and supported by the National Conference, Nehru was unwilling to send Indian army.

An excerpt from “Jammu and Kashmir: The Cold War and The West” by D. N. Panigrahi.

On that same day, Mountbatten accepted the accession of J&K.


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JC History Tuition Singapore - What is the United Nations Partition Plan - Arab-Israeli Conflict Notes

What is the United Nations Partition Plan?

Learn more about the day when Palestine was partitioned as part of the United Nations Plan [Video by the Associated Press].

Historical Context: The end of the British mandate of Palestine
Between 1922 and 1947, Great Britain assumed control of the Palestinian territory, as part of its mandate authorised by the League of Nations. As mentioned in the Balfour Declaration, the British government expressed support for the creation of a ‘national home for the Jewish people’ even though it did not specify the territorial delineation of Palestine.

As Jewish immigration from Europe took place between 1922 and 1947, the Arab-Jewish tensions (see Arab revolts of 1936-39) grew and escalated by the onset of the Second World War. Even the British was not spared of the escalating violence, pressuring the government to seek an viable solution for the two groups.

In the years between the 1929 Wailing Wall riots, which had shaken the Zionist leadership’s complacent faith in eventual Arab acceptance of the Zionist enterprise, and the outbreak of the Arab Revolt, informal negotiations took place between Ben-Gurion and Musa Alami. […]

Ben-Gurion seemed to come to a more sober understanding of the Arab position: “There is a conflict, a great conflict. There is a fundamental conflict. We and they want the same thing: We both want Palestine. And that is the fundamental conflict.”

An excerpt taken from “The Palestinian People: A History” by Baruch Kimmerling and Joel S. Migdal.

Enter the United Nations Special Committee on Palestine (UNSCOP): The Partition Plan
In April 1947, Britain referred the ‘Palestine matter’ to the United Nations – an inter-governmental organisation that took over the mantle of the defunct-League of Nations. In May 1947, the UNSCOP examined the matter. This committee consisted of eleven members: The Netherlands, Peru, Sweden, Uruguay, Yugoslavia, Canada, Australia, Czechoslovakia, Guatemala, India and Iran.

In summary, the UNSCOP concluded that the British Mandate should be terminate and that Palestine should be partitioned into two independent states.

The Partition Plan was as follows:

  1. The proposed Jewish state: Land around Tel Aviv and Haifa, Negev, Jezreel and the Hule Valleys. The Jewish state was to be comprised of about 5,500 square miles and the population was to be 538,000 Jews and 397,000 Arabs.
  2. The proposed Arab state: Gaza strip, Nablus, Galilee, Hebron and Beersheba. The Arab states was to be compromised of 4,500 square miles and the population was to be 804,000 Arabs and 10,000 Jews.
  3. The Jerusalem city was to be administered as an international zone.

On 29 November 1947, the United Nations General Assembly (UNGA) obtained a two-thirds majority, adopting Resolution 181. Both the United States and the Soviet Union supported the Partition Plan, whereas Britain abstained.

It is important to note that the Palestinian Arabs and Jews were divided on the Partition Plan, which may have explained why tensions persisted even after 1948.

The question of the Palestinian position regarding the UN partition plan which was adopted on the 29 November 1947 is not as clear and sharp as it is customary to portray it in most of the historical sources dealing with the issue. In the Palestinian camp there was a variety of views which were not expressed in the ultimate position, which crystallized and was perceived by the international community as an absolute rejection of the partition resolution.

The Palestinian people was forced to pay an unbearable price for their acquiescence of the decision of a short-sighted leadership. The terrible tragedy which befell them demolished their hopes to realize their national ambitions and to live in a state where they would enjoy sovereignty and independence like all other nations.

An excerpt taken from “The Two-State Solution: The UN Partition Resolution of Mandatory Palestine – Analysis and Sources” by Ruth Gavison.
A map to illustrate the United Nations Partition Plan of 1947 [Source: The United Nations Department of Public Information].

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JC History Tuition Singapore - What is the Balfour Declaration - Arab-Israeli Conflict Notes

What is the Balfour Declaration?

Learn more about the Balfour Declaration to understand its impact on the Arab-Israeli conflict in the 20th Century [Video by The Economist]

Historical Context
During World War One, Britain and France clashed with Germany on the Western Front. In December 1917, British Prime Minister David Lloyd George publicly supported Zionism. The Russian Jew Chaim Weizmann was one of those that led this movement.

The British government’s decision to declare its support of Zionism was partly driven by hopes of garnering Jewish support for the Allied Powers amidst the war.

On 27 November 1914, tentatively reviewing British war aims, [C. P. Scott] raised the question of Palestine and Zionism, but found that the subject was not new to Lloyd George, who told him that he had had a ‘heart to heart’ talk with Herbert Samuel, that he sympathised with the aspirations of a small nation and was interested in a ‘partly Jewish buffer state’. Scott continued diligently to press the Zionists’ case and at the end of January 1917 he urged the British Government to issue a definite statement in favour of making Palestine a national home for the Jews.

An excerpt taken from “The Question of Palestine British-Jewish-Arab Relations, 1914-1918” by Isaiah Friedman.

The Declaration: A letter to Rothschild
On 2 November 1917, British Foreign Secretary Arthur Balfour wrote a letter to Lionel Walter Rothschild, a friend of Weizmann. The letter stated that the British government was in favour of the ‘establishment in Palestine of a national home for the Jewish people’. Rothschild represented the British Jewish community.

His Majesty’s Government view with favour the establishment in Palestine of a national home for the Jewish people, and will use their best endeavors to facilitate the achievement of this object, it being clearly understood that nothing shall be done which may prejudice the civil and religious rights of existing non-Jewish communities in Palestine or the rights and political status enjoyed by Jews in any other country.

An excerpt taken from the Balfour Declaration written by Arthur James Balfour to Lord Rothschild, 2 November 1917.

After the Declaration was made, the League of Nations declared that Palestine would fall under the British Mandate on 24 July 1922. This ‘mandate’ system was meant to give the League authority to administer non-self-governing territories, so as to advance the well-being of the population within.

While the British Mandate allowed both the Jewish and Arab communities to manage their own affairs, the British was unable to maintain regional stability.

But the Balfour Declaration, far from being dropped, became embedded – even augmented – in British policy to Palestine. This continuing British commitment was made in the face of all-but overwhelming evidence and argument that a British-backed Zionist project for a Jewish national home would lead to inter-communal antagonism and, in time, a territory that would be ungovernable. Arab opposition was rekindled after the war and, as Jewish immigration resumed, soon manifested itself in demonstrations, petitions and outbreaks of violence.

An excerpt taken from “Legacy of Empire Britain, Zionism and the Creation of Israel” by Gardner Thompson.

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JC History Tuition Online - Revised A Level History Syllabus

The revised A Level H2 History syllabus (9174)

H2 History (9174)

The Scheme of Assessment remains the same, featuring two papers, with a duration of three hours each. For each paper, candidates have to complete a compulsory source based case study (SBCS) and two essay questions.

Paper 1: The Changing International Order (1945-2000)

  • Section A: Source Based Case Study – Theme I
  • Section B: Essays – Themes II and III

Paper 1 Theme I: The Development of the Cold War (1945-1991)
This SBCS theme covers a heavily-studied topic, the Cold War. Candidates will explore the origins of the Cold War in the post-WWII phase, followed by the Globalisation of the Cold War and finally the End of the Cold War. It is imperative to draw references to recurring concepts, such as ideological rivalry between the superpowers that defined their motivations in proxy conflicts.

Note: Pretty much the same as before. There’s no drastic change to the syllabus content for this theme.

Paper 1 Theme II: The Development of the Global Economy (1945-2000)
For this essay theme, candidates have to select one out of two given questions in the examination to answer. This theme focuses on the economic perspective of the world in the 20th century. For instance, there will be coverage of the reasons for the ‘Golden Age of Capitalism’ between 1945 and 1971, followed by the causes and consequences of the Crisis Decades (such as the twin oil shocks of the 1970s). Another sub-section of this theme features country case study assessment of two East Asian economies, namely Japan and China.

Note: The ‘Growth and Challenges in the Global Economy’ remains unchanged if we compare it with the old syllabus (phased out by 2024). As for ‘Transformation of East Asian Economies (Japan and China)’, this sub-section will replace the ‘Rise of Asian Tiger economies’ that featured South Korea and Taiwan.

Paper 1 Theme III: Conflict and Cooperation (1945-2000)
For this essay theme, candidates are required to select one of the two given questions in the examination to answer. This theme examines the reasons for conflicts in the 20th century and also efforts to forge international cooperation. This theme unpacks the nature of conflicts in two parts: Inter-state conflicts and Intra-state conflicts. For inter-state conflicts, candidates will learn more about the Indo-Pakistani Conflict and Arab-Israeli Conflict. For intra-state conflicts, candidates will study the Congo Crisis and Bosnian War.

  • Causes, Development and Management of Inter-state Conflicts
  • Causes, Development and Management of Intra-state Conflicts

Note: This theme undergoes an extensive overhaul in which the past Theme III featured the ‘United Nations’ from an organisational approach, covering specific principal organs and their functions, as well as peacekeeping in a macro-perspective. It appears that the number of case studies has been reduced to four to provide a more in-depth coverage of the subject matter.


Paper 2: Developments in Southeast Asia (Independence-2000)

  • Section A: Source Based Case Study – Theme III
  • Section B: Essays – Themes I and II

Paper 2 Theme I: Forming Nation-States
For this essay theme, candidates have to select one out of the two questions in the examination to answer. Candidates will learn more about two pillars of nation-building: efforts to achieve political stability and create national unity. Candidates are required to relate featured concepts to a variety of country case studies, as explicitly stated by the SEAB [Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar (Burma), Singapore, Thailand, the Philippines and Vietnam].

Note: Content in this theme largely remains unchanged if compared with the phased out syllabus (by 2024). It is imperative to keep in mind how the Cold War developments (see Paper 1 Theme I) could impact Southeast Asia for a more in-depth analysis.

Paper 2 Theme II: Economic Change After Independence
For this essay theme, candidates have to choose one out of two essay questions in the examination to answer. They will learn more about the government efforts to pursue at least one of the three major aims: economic growth, equity and nationalism. Also, there will be a coverage of strategies employed to facilitate growth of specific sectors, such as agriculture, industry and finance and services. In addition, candidates are required to examine the outcomes of economic challenge, particularly to find out if the government efforts led to more beneficial or detrimental impacts on Southeast Asian economies.

Note: A key change to this Theme II is the omission of the ‘Asian Financial Crisis’ sub-topic that was featured in the phased out syllabus.

Paper 2 Theme III: Regional Conflicts and Cooperation
For this SBCS theme, candidates must attempt two parts of the compulsory question – parts (a) and (b) during the examination. The six sources (A-F) will be based on topic(s) taken from this theme. Theme III covers the causes and consequences of inter-state tensions, narrowing down to five case studies that impacted bilateral and regional relations in Southeast Asia. Furthermore, candidates are to study the regional association ASEAN and how it was formed to promote regional cooperation.

Note: A noteworthy update to this Theme III is the specification of case studies featured in the ‘Inter-state Tensions and Cooperation’ sub-topic. Previously, the possible case studies tested were more than what’s stated, such as the Sipadan-Ligitan dispute, Pedra-Branca dispute and Chaim Herzog controversy. It appears that the ‘ASEAN’ section still features similar content from the phased out syllabus.

For more information on the H2 History (9174) syllabus, please refer to the SEAB document.


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You will receive study notes, participate in thought-provoking class discussions and attempt writing practices with tutor guidance to review your application skills. You can also follow our Telegram Channel to get useful updates.

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JC History Tuition Online - What was the Bretton Woods gold standard system

What was the Bretton Woods gold standard system?

Topic of Study [For H2 History Students]: 
Paper 1: The Development of the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 1: Factors for the growth of the global economy (1945-1971)

Historical Context: The end of the Gold Standard
In 1913, the Federal Reserve introduced the Gold Standard. A law was passed, requiring the Federal Reserve to hold gold equal to forty percent of the value of the currency it issued. At the same time, it had to convert these dollars into gold at a fixed price of $20.67 per ounce of pure gold. Back then, the Federal Reserve held more gold to back the issued currency. This was known as ‘free gold’.

The quantity of ‘free gold’ could be influenced by the prevailing interest rates. For instance, higher interest rate encouraged Americans to deposit in banks, facilitating movement of gold from households to the Federal Reserve.

However, the Great Depression of the 1930s saw substantial outflow of gold from the Federal Reserve. Both individuals and business owners preferred to hold gold instead of currency. This economic crisis even influenced foreign investors to reduce their demand for USD as well. Over time, the quantity of ‘free gold’ fell, making it difficult for the Federal Reserve to honour its commitment to convert currency to gold. As a result, the Roosevelt administration suspended the Gold Standard on 20 April 1933.

The reaction of the global currency markets was instantaneous. In one day the dollar lost 10 percent of its value relative to the pound sterling, and 8 percent relative to the French franc. […] Commodity markets also reacted with force, reflecting the sentiment among market participants and the general public that getting off gold, and implementing some (or all) of the policies in the Thomas Amendment, would help raise prices and bring deflation to an end.

An excerpt taken from “American Default: The Untold Story of FDR, the Supreme Court, and the Battle over Gold” by Sebastian Edwards.

Bretton Woods Conference: System Renewed
During the Bretton Woods Conference in July 1944, the USA contemplated on replacing the Gold Standard with a new international monetary system to achieve economic stability. In particular, a system that fixed the US dollar (USD) to gold at the parity of USD$35 per ounce. All other foreign currencies had fixed, but adjustable, exchange rates to the USD.

Historically, countries sought credibly to commit not to change the value of their currencies by pegging them to a particular amount of precious metals – either gold or silver or a combination of the two. As the volume of global trade increased in the late nineteenth century, more and more countries joined the club of advanced nations that fixed their currencies to a given quantity of gold. When they did so, they effectively promised to maintain reserve of gold (or of currencies like the British pound that were considered as good as gold) and allow holders of their currencies to redeem bills at will at the fixed exchange rate.

An excerpt taken from “The Bretton Woods Agreements: Together with Scholarly Commentaries and Essential Historical Documents” by Naomi Lamoreaux and Ian Shapiro.

In 1958, the Bretton Woods System was functional. Countries used USD as the international currency for economic activities. The USA honoured its commitment to ensure gold convertibility. However, this commitment was later put to the test when the USA experienced twin deficits.

What can we learn from this article?
Consider the following question:
– How far do you agree that the Golden Age of Capitalism was mainly the result of the Bretton Woods System?


Join our JC History Tuition to learn more about the Global Economy. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

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JC History Tuition Online - Sabah Dispute Revisited

Sabah Dispute: Revisited

Topic of Study [For H2 History Students]:
Paper 2: Regional Conflicts and Co-operation
Source Based Case Study
Theme III Chapter 1: Inter-state tensions and co-operation: Causes of inter-state tensions: territorial disputes

Historical Context
The Sabah dispute arose because of competing claims between the Philippines and Malaya.

For the Philippines, its formal claim was based upon a 1878 Lease signed between the Sultan of Sulu, Sultan Jamal Al Alam, and Baron de Overbeck and Alfred Dent of the North Borneo Company. An annual payment of 5000 dollars was to be made to the heirs of the Sultan.

For Malaya, its claim was based on the legal transfer of power from the British to the Malayan authorities, which later oversaw the creation of the Malaysian Federation that included Sabah.

In June 1962, the Philippine President Macapagal made his first official claim to Sabah to the British government. While tensions surfaced, attempts were made to address the dispute – the Manila Accord.

The Manila Accord
On 31 July 1963, the Manila Accord was formed, involving three parties: The Philippines, Indonesia and Malaya. From the Macapagal’s perspective, the Accord was seen as his personal attempt to mediate the dispute involving the Tunku’s announcement to form the Federation of Malaysia. The Federation was contested by both Sukarno and Macapagal due to varying reasons.

Based on the Accord, the Philippines asserted its right to claim Sabah (formerly known as North Borneo), insisting the this matter should be referred to the International Court of Justice (ICJ) for a peaceful settlement. Yet, the British and Malaya did not agree to this proposal.

A mission for naught?
As stated in the Accord, a United Nations mission would be conducted under the auspices of the Secretary-General or his representative to ascertain if a majority of the people in North Borneo wanted to be part of the Malaysian Federation. While Secretary-General U Thant led the mission to fulfil this agreement, the Tunku announced on 29 August 1963 that the Federation of Malaysia would be formed on 16 September (later known as ‘Malaysia Day’).

Enraged by this perceived breach of faith, the Indonesian President Sukarno launched the ‘Crush Malaysia’ (Ganyang Malaysia) campaign on 25 September 1963, marking the start of the Indonesian Confrontation (Konfrontasi). Although the mission report did recognise that a majority of the people in North Borneo agreed to join the Federation, Sukarno and Macapagal rejected the findings.

A short-lived pause: End of the Konfrontasi and the birth of ASEAN
After the 30 September incident (Gestapu) that marked the end of the abortive coup by the Communist Party of Indonesia (PKI), Suharto assumed control in March 1966. Five months later, Suharto signed a peace treaty with Kuala Lumpur, ending the Confrontation.

In that same year, Malaysia and the Philippines signed a joint communique (3 June 1966) to reaffirm mutual commitment to the Manila Accord for the peaceful settlement of the Philippine claim of Sabah.

In August 1967, the Association of Southeast Asian Nations (ASEAN) was formed. The claimants, the Philippines and Malaysia, were founding members of the regional association. Both parties made efforts to forge cooperation, as seen by their common agreement to fight smuggling and border crossing.

Despite several high-level talks and third-party interventions, Malaysia was not recognized by the Philippines. Ambassadors were withdrawn from each other’s capitals, and diplomatic relations were suspended. […]

President Marcos recognized the new Federation of Malaysia in June 1966, and both sides agreed in a Joint Communique to “the need to sit together” for clarifying the claim and for discussing the means of a settlement. ASEAN was created the following year, but the Sabah problem did not disappear. The importance of Sabah to the Philippines was obviously more than a mere legal claim.

An excerpt taken from “Impediments to Regionalism in Southeast Asia: Bilateral Constraints Among Asean Member States” by Hans H. Indorf.

However, bilateral relations were once again strained by a controversial incident, also known as the ‘Corregidor Affair’.

The Jabidah Massacre and the Sabah Bill
In March 1968, the Philippine authorities approved of a secret training camp on Corregidor Island. The government’s purpose was to train recruits to infiltrate Sabah and bring about a secession of Sabah from the Malaysian Federation. When these recruits refused to cooperate, they were killed by the military. A lone survivor, Jibin Arula, made known to public what had happened. It was expected of Malaysia to express outrage at this incident, viewing the operation as a gross violation of national sovereignty.

Under Oplan Merdeka, the Philippines trained a special commando unit named Jabidah that would create chaos in Sabah. The purpose of the havoc was to force the Philippine government to take full control of Sabah, otherwise, the residents therein would decide by themselves to secede from the same territory. […] According to Jibin Arula, a survivor who lived to tell the tale, there was a “mutiny in the camp in which fourteen trainees were shot dead and seventeen were missing”.

An excerpt taken from “Neighborliness: Redefining Communities at the Frontier of Dialogue in the Southern Philippines” by Fr. Erdman Beluan Pandero.

Three months after the controversial incident, diplomatic relations were suspended once more even though both parties continued to attend ASEAN-level meetings.

Marcos stood his ground as seen by the issuance of the Sabah Bill (Baseline Law) on 18 September 1968, which highlighted the claim of Sabah as part of Philippine sovereign territory. This was known as the Republic Act 5446.

What can we learn from this article?
Consider the following question:
– How far do you agree that Malaysia was more responsible than the Philippines for the Sabah dispute?


Join our JC History Tuition to learn more about Inter-state Tensions. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.

JC History Tuition Online - What did the UN do to help Somalia - UN Notes 2

What did the UN do to help Somalia?

Topic of Study [For H1/H2 History Students]:
Paper 1: Safeguarding International Peace and Security 
Section B: Essay Writing
Theme III Chapter 2: Political Effectiveness of the UN in maintaining international peace and security

Historical Context: The rise and fall of Siad Barre
After a ten-year transition period under a United Nations (UN) Trusteeship in the 1950s, Somalia gained independence. From 1960 to 1969, Somalia was led by multi-party system. In 1969, Major General Mohamed Siad Barre became President after a bloodless coup.

Under the Cold War context, Somalia had received Soviet military and financial aid. Yet, the Soviet Union disapproved Barre’s decision to launch an invasion of Ethiopia in July 1977, which was known as the Ogaden War. The war concluded with Somali defeat in March 1978 as well as the termination of Soviet aid.

The Ogaden War had a profound effect on international relations in the Horn of Africa. Russia and Cuba withdrew from the long-standing military and naval bases they had helped build in Somalia, and relocated to what was then the Red Sea coastline of Ethiopia (now Eritrea). As a result, Siad Barre switched allegiance to the West, making his first visit to the USA in 1982 […].

An excerpt taken from “Somaliland: with Addis Ababa & Eastern Ethiopia” by Philip Briggs.

In addition, the Barre government had to contend with clan-based rebellions that lasted throughout the 1980s. By then, more Somalis became disillusioned with a military dictatorship under Barre. The rebellions began with a failed coup attempt in April 1978, which were carried out by disgruntled army officers led by Colonel Mohamed Osman Irro.

By late 1990, the United Somali Congress (USC) launched an offensive on the capital Mogadishu, thus forcing Barre to flee in January 1991.

Enter the United Nations: UNOSOM
After Barre’s self-imposed exile, a civil war broke out between two factions: one that backed the Interim President Ali Mahdi Mohamed and another that supported General Mohamed Farah Aidid. In hopes of brokering peace between the factions, the Secretary-General Javier Pérez de Cuéllar dispatched a UN envoy, James Jonah.

More importantly, many Somali civilians’ lives were undermined by the civil war, thus necessitating humanitarian intervention. By November 1991, about 300,000 people died. Many suffered from malnutrition and other related diseases. Also, a million Somalis fled their homes, giving rise to a refugee crisis.

On 3 March 1992, leaders of both competing factions (Mahdi and Aidid) signed a ceasefire agreement (“Agreement on the Implementation of a Ceasefire”), which granted consent for the UN to deploy military observers to oversee the process.

On 24 April 1992, the UN Security Council (UNSC) adopted Resolution 751, which authorised the deployment of the United Nations Operation in Somalia (UNOSOM). UNOSOM was tasked to distribute food supplies to the Somali civilians with the help of other non-governmental organisations (NGOs), such as the International Committee of the Red Cross (ICRC). However, its relief efforts were hampered by the absence of security, which gave rise to looting by armed gangs.

However, humanitarian aid was preyed upon by a mixture of the warring factions and unaffiliated bandits. The militia leaders used food to pay their fighters and buy weapons that allowed them to extend their control and subsequently their access to wealth. […] Khalil Dale, a British Red Cross worker, recalled:

I’ve been to Afghanistan, two or three times. I’ve been to Sudan, I’ve been to a lot of war zones and famine camps and cholera camps. But I’ve never seen anything like Somalia was at that time. And it was certainly the most frightening place for me, it was the most insecure, unpredictable. You just didn’t know what was going to happen next.

An excerpt taken from “Soldiers and Civil Power: Supporting or Substituting Civil Authorities in Modern Peace Operations” by Thijs Brocades Zaalberg.

General Aidid held dominant control of strategic locations where most of the food aid had arrived from abroad, namely the port and airfield. The problem was so serious that the ICRC had to employ nearly 20,000 armed guards to protect their personnel from looters.

Help is on the way: United Task Force
Frustrated by the lack of progress, the Bush administration supported the UNSC’s resolution to authorise an American-led force to establish a “secure environment for humanitarian relief operations in Somalia”. On 9 December 1992, Operation Restore Hope was conducted by the US government under the United Task Force (UNITAF).

Out of the 38,000 troops deployed, 24,000 were American, reflecting the commitment of the US government to support the UN’s humanitarian intervention in Somalia. Between December 1992 and May 1993, the UNITAF secured nine humanitarian relief sectors, thus enabling the resumption of humanitarian aid to the Somali civilians.

Providing security relief operations was obviously a success. By late December and early January there was consensus worldwide that the US-led intervention enabled the relief organization to deliver much-needed supplies much more effectively. As a result, many thousands of lives were saved. […]

According to the official US Army After Action Report of the Somalia mission, the Bush administration recognized that lasting peace in Somalia could only be achieved by disarming the warlords, reconciliation and assisting in the restoration of law and order and societal infrastructure.

An excerpt taken from “Soldiers and Civil Power: Supporting or Substituting Civil Authorities in Modern Peace Operations” by Thijs Brocades Zaalberg.

What can we learn from this article?
Consider the following question:
– How far do you agree that the failures of the United Nations mission in Somalia were expected?


Join our JC History Tuition to learn more about the United Nations. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.