Development of the Cold War 1946-55 - Marshall Aid, Comecon, Cominform

How did Marshall Aid aim to contain communism? How did it suggest that communism gained a foothold in countries?

It was an American response to poverty and hardship in Europe, aiming to help the recovery and rebuilding of war-torn Europe. It was thought that economies in ruins with shortages of goods and food were the conditions in which communism thrived.

What did Truman and General Marshall suggest about the need for Marshall Aid in Europe?

Truman felt that many were forced into Truman’s regime against their will and that ‘we must keep that hope (the hope of people for a better life) alive.’ He was also worried that if Greece fell to communism, as would the countries surrounding it - the Domino Theory.
In 1947, George Marshall suggested that the ‘Policy was not against country or doctrine but against poverty, hunger, desperation and chaos’ and that the purpose was to revive the working economy and permit political and social conditions in which free institutions can exist — seems to be suggesting that Marshall Aid was not an act of war of aggression but was intended to allow the freedoms that the USSR were not granting

What were the economic reasons for Marshall Aid?

• To allow European economies to rebuild and assist the return of ordinary economic health

• It also meant that American foreign policy could reach further across Europe, also boosting the US economy as they then had more countries that they were able to trade with

• Allowed European states to continue industrial expansion and invest in heavy industry

What were the political reasons for Marshall Aid?

• To permit the emergence of political and social conditions in which free institutions can exist

• Aid was sent to areas thought to be under threat of communions as their economic and political circumstances were such that communism could gain a foothold and thrive - poverty and food shortages

• It was a preventative measure rather than dealing with crises as they appeared

What was the US strategy and priorities for where Marshall Aid should be implemented?

Germany was at the centre of the aims for the Marshall plan - European recovery could not proceed without a vibrant German economy at the centre — in this way, Marshall Aid can be seen as marking the start of a Western German state, though this didn’t come into fruition until 1949.

How did the Soviets react to Marshall Aid?

It was viewed as a bid for economic dominance or dollar imperialism, with Stalin fearing that US economic power would undermine Soviet influence and so he refused allow the satellite states to apply for assistance. The Czechoslovak and Polish governments were particularly keen to receive aid but were pressurised by the Soviet government to withdraw their applications.

What was Vyshinsky’s response to Marshall Aid?

Viewed it as incompatible with the principles of the united nations, as an expansionist measure by the US government, making countries dependent on American monopolies, with European countries being placed under economic and political control of the US

How can Cominform be seen as a direct response to Marshall Aid?

Communist party leaders from Eastern Europe as well as representatives of the French, Italian and Yugoslav communists were invited to a conference in 1947, its aim being to counter the threat of the Marshall Plan, establishing Cominform — countries directly under soviet control were forbidden from accepting any aid. Stalin relied on purges to dissuade dissent from Eastern European leaders, ensuring that Gomulka was removed from office in Poland and Kadar in Hungary. Stalin now forced the satellite states down a path of Soviet-style planned economies and collectivisation of agriculture.

How can Marshall Aid be seen as provoking Stalin to seize further control over Czechoslovakia (Czech Crisis 1948)?

As Czechoslovakia made their wishes to apply for Marshall Aid clear, Stalin denied states within his Soviet sphere to apply for the American aid, and promised to deliver 600,000 tons of grain to Czechoslovakia. Rejecting being drawn into the Stalinist camps, non-communist parties resigned from the government, hoping to force an election. However, Benes allowed the communists to form a government and they used their powers controlling the police and the Interior to arrest and intimidate opposition. This terror involved Jan Masaryk, the foreign minister, being found dead in March 1948 - by suicide or from being pushed from his window — symbolised the end of a free Czechoslovakia

How can Marshall Aid be seen as the Truman Doctrine in action?

Because it’s aim was to actively and directly stop the spread of communism and Soviet influence by providing aid to countries under threat of communism in an attempt to prevent it gaining a foothold.

Where was most aid given in Europe?

Mostly Western nations that received Marshall Aid payments, with the UK receiving the highest amount of payments, just over 3000 million dollars, followed by France (2700 million), Italy (1,506 million dollars) and West Germany (1,389 million dollars). The only Eastern European countries to receive aid were Greece, Austria and Yugoslavia.

How can Marshall Aid be seen to have contained the spread of communism to France and Italy?

• Both of their territories had been heavily carved up and destroyed during WW2 and without Marshall Aid, these countries would have taken decades to recover

• A growing economy would alleviate this crippling poverty which was becoming a breeding ground for communism — the Communist parties in both France and Italy had become popular because of their promises to redistribute wealth

• In France - The Communist party gained 28% of the vote in 1946; In Italy, the Communist Party gained 31% of the vote in 1948

• $2,706 million dollars was given to France and $1,506 to Italy, preventing communism gaining a foothold in Western Europe

By 1952, how much aid had the US given through Marshall Aid?

$13 billion

What was the impact of Marshall Aid on the US economy?

• Europe spent money, which had been received via Marshall Aid, on US goods — this redirected many Marshall Aid dollars back into the American economy and industry, leading to a post-war boom

What was the impact of Marshall Aid in Greece?

Greece were in desperate need of aid after years of Nazi occupation and Civil War. They received nearly $700 million in economic assistance during the four years of the Marshall Plan — projects stretched over every sector of the economy e.g. in Northern Greece, Marshall planners set up a scheme to import the Missouri Mule, which were much larger and able to carry weight than Greece’s own mules, helping farms to become productive again

Why was Yugoslavia expelled from Cominform in 1948?

Tito refused to follow Soviet plans and wished to be more independent, not consulting or taking advice from Stalin.

How much aid was given to Yugoslavia? How might the Soviets have reacted to this?

Tito requested American economic assistance, receiving $150 million of aid and emerging from behind the ‘Iron Curtain’ in 1950
- May have been seen by the USSR as the West/USA interfering in the economies of the East, threatening to undermine his sphere of influence

How did US actions and aid prevent communism gaining a foothold in Italy?

• Covert actions by the CIA in Italy - money to officials to help with propoganda and their campaigns

• With the Marshall Plan, Fiat received new assembly line machines, fuelling revival of Italian industry — reflects the desire of the US to secure Europe’s future and prevent spread of communism to Western Europe, through modernising economies

What were the two Soviet Satellite organisations created as a response to Marshall Aid? How did it allow Stalin to gain greater control over the satellite states?

• Cominform in 1947 - allowed Sralin to spread information and tell the leaders of the satellite states what he wanted them to do — a more co-ordinated Eastern bloc, following Stalin’s demands, such as that for collectivisation

• Comecon in 1949 - Offered aid to Eastern bloc countries, such as sending grain to Czechoslavakia after bad harvest — more direct response to Marshall Aid, clearly shows his view of Marshall Aid as an expansionist and antagonistic move by the US

• Both organisations were created in direct response to Marshall Aid

Overall, in reference to heightening East-West tensions and contributing to the outbreak of the Cold War, what are three main impacts and examples of the Marshall Plan?

• Germany — US becoming more economically involved in Europe, particularly in the Western Zones of Germany — Marshall Aid gave $1.3 billion to West Germany and Germany became its centre in rebuilding Europe — introduction of assembly lines to Volkswagen, emulating the American economy — Greater divide between East and West Germany, helping the beginning of a West German state to develop

• It was the Truman Doctrine in action, actively intervening to prevent Stalin and Communism gaining a foothold in the West. In Italy 1948, the Communists gained 31% of the vote - Marshall Aid intervened, reviving Italy’s economy and this effectively turned it away from communism — created a more clear Eastern and Western bloc, both the USSR and USA directly intervening in the affairs of Eastern and Western European states — creates a more direct and clear Eastern and Western bloc, backed by different ideologies

• The differences between East and West became far more drastic - $13 billion was spent on rebuilding Western Europe, while the East was still in rubble and war-torn. Beginnings of the West being seen as more attractive, emulating economic booms in the US, the contrast between the two becoming greater

• Further solidified the Eastern bloc, provoking Stalin and the Commmunists to take greater control in Czechoslovakia, with the Communists taking full control within 5 days, which had previously been a somewhat free state

How was Comecon different to Marshall Aid?

It was the Soviet economy that benefitted from the supply of manufactured goods from the more-developed economies of Eastern Europe. Comecon provided support for collectivisation and the development of heavy and the development of heavy industry along Soviet lines, but there was a minimal amount of financial assistance.