Marshall plan

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  • USA's involvement in Europe (Marshall plan)
    • Origins of the Marshall Plan
      • 1947 George Marshall travelled through Europe
        • He was shocked by the level of post war devastation
          • concluded aid was need to help Europe recover
            • All European nations were eligible to apply
              • Churchill described the plan as the most unselfish act in history
            • $13billion give by 1852
              • Plan accelerated the economic recovery of W   Europe and stabilized Western zones in Germany
    • Motivations behind the MP
      • Concerns without economic recovery in Europe, the USA would enter recession
        • There was a decline in domestic demand after the war.
        • Europe under communism would be unable to serve the a market for US goods
      • Americans also believed that with economic desperation communism was likely to flourish.
        • Fear that the Italian communists would win the elections in Spring 1948
        • Suggested the MP was part of containment
      • The conditions attached to the MP, would be refused by the Russians
        • These included opening up of economic markets and producing transparent economic records
          • The US hoped that E European countries might accept and this could drive a wedge between the satellite states and the USSR
            • Any remaining opposition to the MP in congress crumbles after the coup in Czech (1948) seen as the last powerhouse of democracy in eastern Europe
              • Until the coup, the Czechs had been expressing an interest in taking up the plan
            • ASK WHY!
    • Soviet reactions to MP
      • Stalin rejected the plan
        • Molotov branded the plan as dollar imperialism
          • Which would give US the power to determine diplomatic and internal politics through economic leverage
            • The condtiions attached would mean the USSR would have to make fundamental changes to domestic policies
              • USSR tightened its grip over Eastern Europe
      • Attempted to thwart the plan
        • Com inform established 1947
          • circulate propaganda and coordinate other communist parties to try to obstruct their elected govt
          • France encouraged tarde unions to strike to frustrate the MP
        • Comecon establishedin 1949
          • Created t6o forge economic cooperation between the socialists states

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