Marshall PlanMarshall Plan

19471947

America’s Response To GreeceBritain decided to withdraw troops

end aid in GreeceThis left it up to Americans to

restore democracy in Greece. Congress gave support of Truman

in giving $400 million to Greece and Turkey.

THE MARSHALL PLAN 1947THE MARSHALL PLAN 1947(Marshall Aid)(Marshall Aid)

What Was it?

• An American response to the poverty and hardship in post war Europe

• Who was Marshall?

•An American General and American Secretary of State, sent to assess the economic state of Europe

The Marshall PlanThe Marshall Plan was a program

announced by General George Marshall in June of 1947

It was a program of aid to war-torn Europe to re-equip its factories and revive agriculture and trade

This aid took the form of money, equipment, food, and technical assistance

Details

Economies in ruins

Shortages of goods

Bread still rationed

Coal shortages

It was thought that these were the conditions in which communism thrived

WHY?

What a nice gesture by the What a nice gesture by the Americans.Americans.Yes BUT…..Yes BUT…..The aid came in the form of goods The aid came in the form of goods

made by American firmsmade by American firmsSo there was an element of So there was an element of

American self-interest to prevent American self-interest to prevent another depression in USAanother depression in USA

Europe’s Reaction European leaders confronted with

economic hardships and no resources were in no position to say no

They quickly accepted.

And StalinAnd Stalin He hated Marshall Aid!!He hated Marshall Aid!! Forbade Eastern European countries Forbade Eastern European countries

from having anything to do with itfrom having anything to do with it Regarded as anti-CommunistRegarded as anti-Communist Feared that it might weaken his hold on Feared that it might weaken his hold on

Eastern BlocEastern Bloc And Eastern countries would swing to And Eastern countries would swing to

the US dollar.the US dollar.

USSR v. US Truman saw the Marshall Plan as one of

America’s greatest contributions to world peace

The Soviets saw it as aiming to unite countries against Communism

Russia’s reply: Create the Cominform: an attempt to

consolidate control over the Soviet satellites and bring conformity to Eastern bloc

The Marshall Plan in ActionIn April 1948, the US Congress

allocated $5.3 billion to implement the Marshall Plan.

By the time the plan had come to an end in 1951, over $13 billion had been spent and this money had enabled European countries to develop their economies and improve their standards of living

http://upload.wikimedia.org/wikipedia/commons/5/53/Marshall_Plan.png

Two sides to every story… One Side:

“The most unselfish act by any great power in history” –Winston Churchill on the Marshall Plan

Another Side: It also protected American interests Enabled the US to dominate Europe

economically Often it was given in the form of goods which

allowed the US to control its use better than giving dollars