THE TRUMAN DOCTRINE AND MARSHALL PLAN

22 MARCH 1947

COUNTRIES LIKE: Greece,Italy and Turkey were weak after WW2. To them COMMUNISM would've been a good option.

TO COMBAT THIS TRUMAN SET OUT A NEW POLICY CALLED 'THE TRUMAN DOCTRINE'

• The world had a choice between 'communist tyrany' and 'democratic freedom'.
• The USA has a responsibilty to fight for liberty wherever it's threatened.
• AMERICA would send troops and economic resources to help governments threatened by communism.
• Communism shouldn't be allowed to spread.

16 European countries had a total of $7500 million trade deficit.

Average production was only 83% of pre-war level.

Poor harvest in 1946.

Severe winter 1946-47 cause coal shortages and food riots in Western occupied zones.

Both France and Russia blocking attempts to aid German recovery.

Fears of extremism in France and Italy as Communists were serving in coalition governments.

JANUARY 1947- Truman appointed Marshall as Secretary of State.

Marshall devised the EUROPEAN RECOVERY PROGRAMME.

In the 1st year alone the ERP spent $5.3 billion.

By 1952 Europe was experirncing sustained economic growth. The US had put $13 billion into Europe.

THE USA HAD A DUAL STRATEGY FOR HELPING EUROPE:

1. THE TRUMAN DOCTRINE- containment using military force.                                 2. THE MARSHALL PLAN- money to rebuild shattered economies.

By encouraging economies to get stronger they'd weaken the attraction of communism.

IN ORDER TO QUALIFY, A COUNTRY MUST- agree to trade freely with the USA, therefore helping the US economy too.

RUSSIA claimed AMERICANS were trying to split Europe into two camps. They saw it as stage 1 to waging war on Russia, so prevented any country under Russian influence from receiving aid.

16 countries welcomed the plan- it was a way to rebuild their economies and destroy communism in their countries.

1. Suggested that AMERICA rather than the UN had a responsibility to protect the world- this  marked the end of the alliance.           AMERICA = THE WORLDS POLICEMAN

2. Seperated the world in two ideologies- capitolism and communism were in opposition. Marked the end of the Grand Alliance.

3. Set a realistic goal for the US foreign policy.

4. Contain communism.

COMECON was RUSSIA'S response to the Marshall Plan.

COMECON- Economic support from Russia to give other countries aid and get them back on their feet.

In the first year, Comecon compromised of USSR, Bulgaria, Hungary, Poland and Romania and East Germany joined soon after.

There were multiple key implications:

• Poltically it would minimize American influence in Eastern Europe.
• Economically it ensured that benefits of the economic recovery in Eastern Europe.
• It also meant that Eastern Europe did not have access to the prosperity of Western Europe.