US involvement in post war Europe

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  • Topic 3
    • The Marshall Plan
      • Aid to be provided in exchange for purchase of American goods
      • Countries that excepted aid would join the organization of European Economic cooperation
      • $13.5 billion given to European countries in aid
        • Majority was given to France
      • Tried to prevent economic stagnation to decrease the likelihood of communist parties being elected
      • Preserve stability of Western Europe
      • The Soviet response
        • Rejected Marshal aid and forced all Eastern European countries to reverse their choices
        • Cominform was created in retaliation
        • Council for mutual economic assistance to establish a socialist economic bloc
    • Division of Germany and Berlin
      • USA was not willing to relinquish Western Berlin
      • USA did not want a unified Germany in fear that it will fall to communism
      • Bizonia (USA and UK) was formed on January 1st 1947
      • New currency made for western germany
        • Stalin saw this as Unilateral
      • West Germany was included in the European recovery programme

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