Cold War - Marshall Plan [E3/24]

Italy in 1947

• Post-war poverty was rampant, creating fertile ground for communism's growth.

• Many were hungry and endured tightening economic hardships.

• Membership of the Communist Party reached 2 million, prompting American fears of a shift toward communism in Western Europe.

• Poverty and misery nurtured the rise of totalitarian regimes; hope among the people needed to be preserved.

May Day in Moscow

• The Red Army stood as the largest fighting force globally in 1947.

• Stalin's control extended across Eastern Europe, presenting an alternative to Western capitalism through state ownership.

• Growing alarm over the potential collapse of the economy in Western Europe linked to active domestic communists.

February 1947 Crisis

• British government announced the end of aid to Greece and Turkey due to financial strain and fear of communism's spread.

• Truman positioned the U.S. as a protector of freedom, asking for Congress’s approval for $400 million in aid.

• Presented the struggle as freedom versus tyranny, influencing Congress towards taking action.

Truman's Character and Context

• Truman believed in clear-cut answers to complicated issues, reflecting his perspective after fighting fascism.

• The post-war environment saw devastation, creating a recruitment surge towards communism as a beacon of hope.

The Role of General Marshall

• Truman appointed General Marshall as Secretary of State to plan U.S. actions against communism.

• Marshall was known for his leadership qualities; he insisted on being called by his title.

• His meeting with Stalin revealed Soviet intentions to stall Europe’s recovery to gain influence without military invasion.

Marshall Plan Emergence

• Marshall recognized Germany's role in European recovery and believed quick action was critical.

• Announced a vast aid proposal at Harvard, which appealed to European leaders and eventually led to the European Recovery Program.

Reaction of the Soviet Union

• The USSR, under Stalin, was suspicious of the Marshall Plan, seeing it as a means to undermine Soviet influence in the region.

• During a foreign ministers' conference, Soviet participation was rejected following Western proposals.

Czech Response to the Marshall Plan

• A political crisis escalated in Czechoslovakia due to Stalin's pressure against joining.

• The democratically elected government initially supported participation but ultimately succumbed to Soviet pressure.

• The ultimatum from Stalin highlighted the oppressive measures used to maintain control over Eastern Bloc countries.

The Impact of Stalin's Ultimatum

• The ultimatum resulted in the Czech government retracting its initial unanimous support for the Marshall Plan.

• The political fallout culminated in the tragic death of Czech Foreign Minister Jan Masaryk, symbolic of lost freedom.

The Marshall Plan’s Approval

• The post-coup environment in Czechoslovakia influenced American Congress and the urgency for foreign aid.

• Truman's administration secured $5 billion in aid after intense legislative debate.

Economic Structure of the Marshall Plan

• Aid consisted of 80% grants and 20% loans, aiming to revitalize European economies.

• Over four years, $13.5 billion was spent, underpinning America's economic interest in Europe's recovery.

Specific Aid to Greece and Industrial Challenges

• Greece needed extensive aid due to WWII destruction and civil war impacts, receiving $700 million.

• Projects addressed immediate local needs, including importing Missouri mules for agricultural work.

France and Labor Strikes

• Post-war labor strikes led to governmental instability and the expulsion of communist ministers in France.

• The French government faced pressure from the U.S. to control the communist influence before aid was granted.

Yugoslavia’s 1948 Split with the USSR

• Tito’s Yugoslavia broke from Soviet dependency, opting for U.S. economic assistance after Stalin's expulsion from Cominform.

• U.S. interest in Yugoslavia was also part of strategizing against communist expansion.

The Italian Elections of 1948

• The imminent communist victory raised fears; U.S. reactions included extensive outreach campaigns to Italian-Americans.

• The CIA initiated a covert operation to support Italian anti-communism, aiding the Christian Democrat Party.

Church's Role in The Election

• The Catholic Church campaigned against communism, with Pope Pius XII excommunicating communists shortly before the election.

• The church’s influence was significant in swaying public opinion against communists.

Election Results of April 1948

• The Christian Democrats won decisively, reducing communist votes by nearly half.

• Celebrated as a crucial moment preventing communism's rise in Italy and solidifying Western alignment.

Post-Election Developments

• Following the Christian Democrats' victory, Italian industries, notably Fiat, received substantial Marshall aid, modernizing production methods.

• The outcome influenced the trajectory of U.S.-European relations, reinforcing alliances and promoting economic integration.