The purpose of this paper is to investigate the relation between the Silesian linen industry and the European, especially British economy in the 17th and 18th centuries. The main conclusions are as follows. (1) Until the middle of the 18th century England was the main market of the Silesian linen. The reasons were the fact that the Silesians had succeeded in the imitation of the French linen and the relative low duties on German linen. (2) The interest of the English woollen manufacturers reflected in these low duties, because they thought that the intended import of the linen would urge the specialization in the linen production in Germany. The same policy was applied to Ireland and Scotland. But because of the importance as the market of the English woollen Germany was treated better. (3) Thus the relation of exchange between the English woollen and the German linen came into existence. In fact the Anglo-German trade in the 18th century was the woollen-linen trade. But this relation was realized by Hamburg's intermediary trade. (4) The British and Irish linen manufacturers claimed the removal of the drawback and the additional duties on German linen. But the English woollen manufacturers opposed and checked these claims, because they thought that the high duties on German linen would cause the reprisal duties against the English woollen goods. (5) In Silesia the duties on the foreign woollen goods were till 1766 low, though the governments of Austria and Prussia had the protective intention. But thereafter the duty level was increased and in 1771 its import was prohibited, and the coincidence of the interest of the English woollen industry with that of the Silesian linen industry broke. (6) Besides at that time the production of linen in Great Britain and Ireland increased considerably and the English cotton industry began to develop. Thus Silesian linen was driven out of the English market and later it was deprived of the other foreign and home markets by the British products. The structure of the British Economy and its change influenced the prosperity and decline of the Silesian linen industry.