NEWCASTLE UNIVERSITY Thesis submitted towards PhD in History An examination of the decline of shipbuilding on the North-East Coast of England and the West of Scotland during the interwar period, 1920–1939 W. Paxton October 2017 i CONTENTS Page Copyright, declaration, and dedication .................................................................................. v Abstract ................................................................................................................................. vi Acknowledgements .............................................................................................................. vii List of Diagrams ................................................................................................................. viii List of Tables ......................................................................................................................... x List of Maps ....................................................................................................................... xiii List of Photographs ............................................................................................................. xiii List of Illustrations .............................................................................................................. xiv Appendices ........................................................................................................................... xv Abbreviations ...................................................................................................................... xix INTRODUCTION................................................................................................................ 1 Understanding British industrial decline, understanding interwar shipbuilding .................. 4 Interwar shipbuilding: stagnation without decline? ............................................................ 18 The situation of interwar British shipbuilding: regions in comparison .............................. 29 CHAPTER ONE: REGIONS IN COMPARISON: INTERWAR SHIPBUILDING ON THE NORTH-EAST COAST OF ENGLAND AND THE WEST OF SCOTLAND Introduction .......................................................................................................................... 37 Catergorizing British shipbuilding ....................................................................................... 42 Passenger vessels ............................................................................................................ 43 Cargo vessels .................................................................................................................. 49 Coasters ........................................................................................................................... 54 Tanker ............................................................................................................................. 56 Tanker construction during the interwar period ......................................................... 59 ii The largest tanker shipbuilders and their customer base ........................................... 71 The growing level of overseas competition ............................................................... 75 Interwar shipbuilding output on the North-East coast of England and the West of Scotland ................................................................................................................. 79 British shipbuilding output ........................................................................................... 79 Foreign tonnage output................................................................................................... 90 Corporate and technical innovation ..................................................................................... 95 New technologies in assembly ........................................................................................... 110 Corporate structure ............................................................................................................. 112 Financial structure .............................................................................................................. 128 Shipbuilding regions in comparison ................................................................................. 132 Conclusions ........................................................................................................................ 143 CHAPTER TWO: NAVAL SPENDING, LIMITATION TREATIES AND NAVAL SHIPBUILDING IN THE REGIONS OF THE NORTH-EAST COAST OF ENGLAND AND CLYDESIDE Introduction ....................................................................................................................... 145 Government retrenchment and warship construction: from Colwyn to Geddes ............... 148 Limitation Treaties: striving for peace or a fiscal policy .................................................. 156 Competing for Admiralty contracts .................................................................................. 172 Naval shipbuilding and rationalisation ............................................................................. 182 Naval shipbuilding and its effect upon the shipbuilding regions ...................................... 185 Conclusions ....................................................................................................................... 194 CHAPTER THREE: THE SHIPBUILDING INDUSTRY AND THE TRADE FACILITIES ACTS Introduction ....................................................................................................................... 198 iii British shipbuilding after war’s end.. ................................................................................. 200 The effects of recession within the British shipbuilding industry .................................... 205 1. Unemployment and labour issues .......................................................................... 205 2. Foreign competition ............................................................................................... 209 3. Laid-up tonnage ..................................................................................................... 212 4. The motorship ........................................................................................................ 214 5. The effects of international trade ........................................................................... 220 Government assistance....................................................................................................... 221 1. The loan guarantee schemes .............................................................................. 221 2. Postal subventions .............................................................................................. 230 Conclusions ....................................................................................................................... 231 CHAPTER FOUR: RATIONALISING THE SHIPBUILDING INDUSTRY Introduction……………………………………………………………………………….238 A precedent of rationalisation led by the Bank of England – Armstrong Whitworth…… 240 First phase of cooperation: Shipbuilding Conference …………………………………....248 The need for rationalisation .............................................................................................. 253 National Shipbuilders Security Limited ............................................................................ 257 Palmers Shipbuilding & Iron Company Limited ............................................................... 273 Conclusions ....................................................................................................................... 282 CHAPTER FIVE: JOHN BROWN, CUNARD, AND THE ROYAL MAIL STEAM PACKET COMPANY Introduction ....................................................................................................................... 287 The background to the problem ........................................................................................ 289 The difficulties experienced by the RMSPC .................................................................... 289 iv The problems confronted at John Brown .......................................................................... 291 The post-war experience ................................................................................................... 292 Government assistance and the Royal Mail Group ........................................................... 293 Difficulties ahead .............................................................................................................. 297 Britain’s stake in the North Atlantic shipping .................................................................. 304 Governmental rescue strategy ............................................................................................ 306 The merger of Cunard and White Star Line ...................................................................... 311 Conclusions ....................................................................................................................... 328 CHAPTER SIX: THE TRAMP-SHIPPING INDUSTRY DURING THE 1930S Introduction ....................................................................................................................... 332 The dilemma facing government ...................................................................................... 341 The impact of government strategy .................................................................................