The Limits of US Power: Transatlantic Financial Diplomacy under the Johnson and Wilson Administrations, October 1964–November 1968

Abstract

Historians' views of the transatlantic financial diplomacy of the later 1960s have been dominated by the idea of a secret deal made between President Lyndon Johnson and Prime Minister Harold Wilson in 1965, which traded US financial help for a continuation of the United Kingdom's world defence role. This notion has become extremely widespread, and is often taken for granted in historical writing. There was a high level of co-operation between the two men: as a number of writers have made clear, Wilson and Johnson shared a number of unspoken objectives which may have tied the interests of the two leaders together without any formal pact. However, the difficulty with arguments focusing on their ‘deal’ is that such work often underestimates the extent to which Britain was able to manipulate the relationship to its own ends. The United States still required British help, and needed therefore to support Britain in a number of fields – diplomatic, economic and military.