Marshall Plan

What was it?

-June 1947
-General George Marshall
-1947-52: $13bn in economic aid to 16 countries
-European recovery plan:
restore trade and increase employment
rebuild and accelerate economic recovery

Aims: 1. US economic gain

-more trading partners
-provided in $ + some money spent on US goods
-economic info had to be shared
-prosperous US market would create barrier and push against imperialism
-prosperous W Europe would protect US interests and prevent another economic recession

Aims: 2. Altruistic

-80% given in grants (85% of aid to Brit + France in grants)
-$700m given to Greece, fed, fuelled and clothed Greek nation, imported Missouri mule
-suffered least domestically, had money to support allies and did
-Germany starving to death, seen devastation, open to all countries that would accept it

Aims: 3. Containing communism

-Czechoslovakia Feb 1948
-Long Telegram February 1946, determined
-accepting help meant being in US sphere of influence
-strengthen European economy, weaken attractions of communism, reducing economic stagnation, less likely to elect comm out of desperation

Soviet Response

-July 1947- USSR rejected any participation 'dollar imperialism', walked out of Paris Conf, attempt to divide into 2 camps
-Cominform Sept 1947, consolidate Soviet influence, against imperialism, tightened grip on EE
-Molotov plan, basis of Comecon Jan 1949, lacked financial strength, not as substantial, economic assistance,
-countries who had expressed interest e.g. Poland, Czechoslovakia, forced to reverse decisions, despite E.E. being amongst most damaged, only Yugoslavia