<Li> in practice, the pooling of RAF and Dominion air force personnel, for posting to both RAF and Article XV squadrons . </Li> <P> Britain borrowed everywhere it could and made heavy purchases of munitions and supplies in India and Canada during the war, as well as other parts of the Empire and neutral countries . Canada also made gifts . Britain's sterling balances around the world amounted to ₤ 3.4 billion in 1945 or the equivalent of about $US 200 billion in 2016 dollars . However, Britain treated this as a long - term loan with no interest and no specified repayment date . Just when the money would be made available by London was an issue, for the British treasury was nearly empty by 1945 . </P> <P> In June 1940, France surrendered to invading German forces, and Italy joined the war on the Axis side, causing a reversal of the Singapore strategy . Winston Churchill, who had replaced Neville Chamberlain as British Prime Minister the previous month, ordered that the Middle East and the Mediterranean were of a higher priority than the Far East to defend . Australia and New Zealand were told by telegram that they should turn to the United States for help in defending their homeland should Japan attack: </P> <P> Without the assistance of France we should not have sufficient forces to meet the combined German and Italian navies in European waters and the Japanese fleet in the Far East . In the circumstances envisaged, it is most improbable that we could send adequate reinforcements to the Far East . We should therefore have to rely on the United States of America to safeguard our interests there . </P>

The prime minister of great britain during world war 2 was