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etroleum, and 53.9 billion cu m (1.9 trillion cu ft) of natural gas. Energy Annual electrical output in the early 1990s exceeded 317 billion kilowatt-hours, of which about 75 percent was generated in conventional thermal facilities using fossil fuels. Britain was a pioneer in the development of nuclear plants for the production of electricity. The world's first commercial-scale nuclear power station at Calder Hall in Cumberland became functional in 1956. By the early 1990s nuclear power supplied about 16 percent of Great Britain's electricity production. Currency and Banking The pound sterling , consisting of 100 pence, is the basic unit of currency (0.66 equals U.S.$1; 1996). In 1968 Great Britain took the first step in a three-year conversion of its currency to the decimal system of coinage by introducing the first two new coins, the 5-new-pence piece (equal to 1 old shilling) and the 10-new-pence piece. The conversion was completed in 1971. The pound was permitted to float against the dollar and other world currencies beginning in June 1972. The Bank of England, chartered in 1694, was nationalized in 1946 and is the bank of issue in England and Wales. Great Britain has 17 major commercial banks with more than 17,000 domestic and overseas branches, most of which are offices of the four leading banks: Lloyds, Barclays, National Westminster, and Midland. Several banks in Scotland and Northern Ireland may issue currencies in limited amounts. Some banking services are provided by the postal system, savings banks, and cooperative and building societies. Many foreign banks maintain offices in London. Foreign Trade The prominent position of British commerce in world trade during the 18th and 19th centuries resulted largely from the geographical isolation of the British Isles from the wars and political troubles that afflicted the centers of trade on the European continent. The development of the great trading companies (see East India Company; Hudson's Bay Company), colonial expansion, and naval control of the high seas were corollary factors. Before the 17th century the foreign trade of England was almost completely in the hands of foreigners; wool was the principal export, and manufactured goods were the chief imports. Under the mercantile system (see Mercantilism), which in Great Britain was the prevailing economic theory of the 17th and 18th centuries, the government fostered British foreign trade, the development of shipping, and trading companies. As British overseas possessions increased, the raising of sheep for wool and mutton became a major occupation in the colonies; the practice of exporting wool from England and importing manufactured woolen articles was gradually replaced by the import of wool and the manufacture and export of yarns and fabrics. Cotton textiles, iron and steel, and coal soon became significant British exports. In the early 1990s Britain remained one of the world's leading trading nations. Its major exports were road vehicles and other transportation equipment, industrial machinery, petroleum and petroleum products, electrical machinery, office machines and data processing equipment, power-generating machinery, organic chemicals, precision instruments, and iron and steel. Leading imports were road vehicles and parts, food products, office machines and data processing equipment, electrical machinery, petroleum and petroleum products, clothing and accessories, industrial machinery, textile yarn and fabrics, paper and paper products, and power-generating equipment. Exports, primarily from France, the United States, Germany, the Netherlands, Italy, and Ireland, were valued at $190.1 billion annually in the early 1990s. In the same period, annual imports, chiefly from Germany, the United States, France, the Netherlands, Japan, and Italy, totaled $221.6 billion. Trade with other Commonwealth members and with the sterling area (a group of countries whose currencies are tied to the British pound sterling) declined after Great Britain joined the European Economic Community (now the European Union) in 1973, and trade with Western Europe has become more important. Most domestic retail trade is conducted through independently owned shops, although the number of department, chain, and cooperative stores and supermarkets is increasing. More than half of all wholesale trade is carried out in London. Tourism Tourism is an essential source of overseas income. In the early 1990s some 19.3 million visitors toured Great Britain annually, spending about $13.7 billion. Under the Development of Tourism Act of 1969, a government organization, the British Tourist Authority, has been set up to attract visitors and improve tourist accommodations and travel conditions. Transportation The irregular coastline of the British Isles, with its numerous indentations and bays and navigable streams, the improvement of the country's harbors, and the provision of dock facilities have all helped Britain grow into a maritime power. The Navigation Laws of the 17th century were instituted to give English vessels maximum advantage in the carrying of English products, and naval victories over Spain and France, chief rivals of Britain in world trade, gave the nation control of the seas and preeminence in world merchant shipping. This leadership lasted until World War II (1939-1945), when the destruction of British shipping by enemy action and the increased production capacity of U.S. shipyards enabled the American merchant marine to overtake and surpass the British merchant fleet. In 1993 the British registry listed about 8.8 million gross tons of commercial shipping, a 38 percent decline since 1985. Most British ports rely on intercoastal trade. The majority of the international ports have been nationalized. Among the country's leading seaports are the extensive Port of London, Liverpool, Manchester (an inland seaport), Grimsby, Southampton, Milford Haven (a petroleum port), and Glasgow. Other major ports include the Tees River ports and Felixstowe. In the 15th century the English government began improving natural waterways and constructing canals. By the early 1990s Great Britain had about 5600 km (about 3500 mi) of canals and navigable rivers. The most important canal is the Manchester Ship Canal. Railroads began to supplant canals in the 19th century, and the first important railroad line in the world was opened between Liverpool and Manchester in 1830. After almost a century of development and expansion the railroads of Great Britain were divided, in 1921, into four major systems: the London, Midland, and Scottish Railway; the London and North-Eastern Railway; the Great Western Railway; and the Southern Railway. In 1948 the four lines, together with their associated railroad and steamship lines, docks, hotels, and canals, were nationalized, or put under government operation. In 1994 the British government began transferring the railroads back to private ownership, a process called privatization. In early 1996 three private companies took over selected British Rail routes. Another four companies were formed in April 1996, and the government plans to have privatized 95 percent of British Rail by May 1997. In the early 1990s the British railroads operated about 16,914 km (about 10,510 mi) of track, including about 394 km (about 245 mi) of the London subway system. In the late 19th century work was begun on a tunnel beneath the English Channel. The project was later abandoned, and then revived in 1957. Work began again but was halted in 1973 by Great Britain due to the immense cost of the project. In 1987, however, work again began and the English Channel Tunnel, owned by both Great Britain and France, was completed in 1993. It is 52 km (32.2 mi) long and runs between Folkestone, England, and Calais, France. The tunnel, which cost more than $15 billion, runs 130 m (426.5 ft) below sea level, and is composed of three parallel tunnels, one for freight exclusively and two for the transportation of passengers, cars, and freight. Freight trains can travel through the tunnel at speeds of up to 300 km/h (186 mph), resulting in a crossing time of about 90 minutes. On May 6, 1994, Queen Elizabeth of Great Britain and President FranЪois Mitterrand of France rode through the tunnel as part of its inaugural ceremonies. British Airways was formed in 1972 by combining the two state-run airlines, British Overseas Airways Company and British European Airways. Privatized in 1987, British Airways operates one of the largest route networks in the world, traveling to some 170 destinations in 77 countries. In 1976, together with Air France, British Airways inaugurated the world's first supersonic passenger service, using Concorde aircraft. Besides the national airline, Great Britain has numerous independent operators. Major airports include London's Heathrow, Gatwick, and Stansted, as well as Luton, Manchester, and Glasgow. In 1970 Great Britain joined Airbus Industrie, a European aircraft manufacturing consortium, as an associate partner. Airbus manufactures medium and large widebody passenger jets with parts from each member of the consortium. In 1979 Great Britain became a full member, joining France, Germany, and Spain; Belgium and the Netherlands are associate members. The road system of Great Britain in the early 1990s consisted of about 362,982 km (about 225,557 mi) of public routes. Some 20.1 million passenger cars were registered in Great Britain. Automobile travel has become increasingly important in recent decades; about 90 percent of all passenger travel in Great Britain is by road. Communications The Post Office, founded in 1635, maintains about 20,000 branch offices throughout Great Britain and administers a postal savings system. The postal system was revised and penny postage established in the 1830s. In 1969 the post office was reorganized as a public corporation. A parcel post system has largely supplanted privately run express