Marshall Plan

Marshall Aidthe Marshall PlanreconstructionEuropepostwar reconstructionAmerican financial aidAmerican financial supportERP creditsEuropean reconstructionEuropean Recovery Plan
The Marshall Plan (officially the European Recovery Program, ERP) was an American initiative passed in 1948 to aid Western Europe, in which the United States gave over $12 billion (nearly $ billion in US dollars) in economic assistance to help rebuild Western European economies after the end of World War II. Replacing the previous Morgenthau Plan, it operated for four years beginning on April 3, 1948.wikipedia
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Harry S. Truman

TrumanHarry TrumanPresident Truman
The plan had bipartisan support in Washington, where the Republicans controlled Congress and the Democrats controlled the White House with Harry S. Truman as President.
He implemented the Marshall Plan to rebuild the economy of Western Europe, and established the Truman Doctrine and NATO.

George Marshall

George C. MarshallMarshallGeneral Marshall
The initiative was named after United States Secretary of State George Marshall.
After the war, as Secretary of State, Marshall advocated a significant U.S. economic and political commitment to post-war European recovery, including the Marshall Plan that bore his name.

George F. Kennan

George KennanKennan, George F.Kennan, George
The Plan was largely the creation of State Department officials, especially William L. Clayton and George F. Kennan, with help from the Brookings Institution, as requested by Senator Arthur H. Vandenberg, chairman of the Senate Foreign Relations Committee.
Kennan played a major role in the development of definitive Cold War programs and institutions, notably the Marshall Plan.

William L. Clayton

William ClaytonWilliam L. "Will") ClaytonWilliam L. Clay.
The Plan was largely the creation of State Department officials, especially William L. Clayton and George F. Kennan, with help from the Brookings Institution, as requested by Senator Arthur H. Vandenberg, chairman of the Senate Foreign Relations Committee.
He served as assistant, and then as deputy Secretary of State for economic affairs from December 1944 to October 1947, where he was primarily concerned with working on the Marshall Plan.

Aftermath of World War II

post-World War IIpost-wardefeat in World War II
The purpose of the Marshall Plan was to aid in the economic recovery of nations after WWII and to reduce the influence of Communist parties within them.
Western Europe and Japan were rebuilt through the American Marshall Plan whereas Central and Eastern Europe fell under the Soviet sphere of influence and eventually behind an "Iron Curtain".

Arthur Vandenberg

VandenbergSenator Arthur H. VandenbergSenator Vandenberg
The Plan was largely the creation of State Department officials, especially William L. Clayton and George F. Kennan, with help from the Brookings Institution, as requested by Senator Arthur H. Vandenberg, chairman of the Senate Foreign Relations Committee.
He is best known for leading the Republican Party from a foreign policy of isolationism to one of internationalism, and supporting the Cold War, the Truman Doctrine, the Marshall Plan, and NATO.

Mutual Security Act

Mutual Security Act of 1951Mutual Security AgencyMutual Aid for Defense Program
The Marshall Plan was replaced by the Mutual Security Plan at the end of 1951; that new plan gave away about $7 billion annually until 1961 when it was replaced by another program.
It largely replaced the Marshall Plan.

A Report on Germany

After World War II, in 1947, industrialist Lewis H. Brown wrote at the request of General Lucius D. Clay, A Report on Germany, which served as a detailed recommendation for the reconstruction of post-war Germany, and served as a basis for the Marshall Plan.
After World War II, in 1947 Lewis H. Brown wrote at the request of General Lucius D. Clay A Report on Germany, which served as a detailed recommendation for the reconstruction of post-war Germany, and served as a basis for the Marshall Plan.

Brookings Institution

BrookingsThe Brookings InstitutionBrookings Graduate School of Economics and Government
The Plan was largely the creation of State Department officials, especially William L. Clayton and George F. Kennan, with help from the Brookings Institution, as requested by Senator Arthur H. Vandenberg, chairman of the Senate Foreign Relations Committee.
The resulting organization scheme assured that the Marshall Plan was run carefully and on a businesslike basis.

Molotov Plan

its own recovery
To combat the effects of the Marshall Plan, the USSR developed its own economic plan, known as the Molotov Plan, in spite of the fact that large amounts of resources from the Eastern Bloc countries to the USSR were paid as reparations, for countries participating in the Axis Power during the war.
It can be seen to be the Soviet Union's version of the Marshall Plan, which for political reasons the Eastern European countries would not be able to join without leaving the Soviet sphere of influence.

Morgenthau Plan

Joint Chiefs of Staff Directive 1067harsh peace for the German peopleJCS Directive 1067/14
Replacing the previous Morgenthau Plan, it operated for four years beginning on April 3, 1948.
From 1947, US policies aimed at restoring a "stable and productive Germany" and were soon followed by the Marshall Plan.

Winter of 1946–47 in the United Kingdom

snow and frostwinter of 1946–47severe winter
Food shortages were severe, especially in the harsh winter of 1946–47.
That winter is also cited as a factor in the devaluation of the pound from $4.03 to $2.80 and the introduction of the Marshall Plan to rebuild war-torn Europe.

Greek Civil War

civil warGreececivil war in Greece
With a communist, although non-Soviet, insurgency threatening Greece, and Britain financially unable to continue its aid, the President announced his Truman Doctrine on March 12, 1947, "to support free peoples who are resisting attempted subjugation by armed minorities or by outside pressures", with an aid request for consideration and decision, concerning Greece and Turkey.
Greece in the end was funded by the US (through the Truman Doctrine and the Marshall Plan) and joined NATO (1952), while the insurgents were demoralized by the bitter split between the Soviet Union's Joseph Stalin, who wanted the war ended, and Yugoslavia's Josip Broz Tito, who wanted it to continue.

Eastern Bloc

Soviet bloccommunist blocEastern Europe
Although offered participation, the Soviet Union refused Plan benefits, and also blocked benefits to Eastern Bloc countries, such as Hungary and Poland.
In June 1947, after the Soviets had refused to negotiate a potential lightening of restrictions on German development, the United States announced the Marshall Plan, a comprehensive program of American assistance to all European countries wanting to participate, including the Soviet Union and those of Eastern Europe.

Ernest Bevin

Bevin[Ernest] BevinBevin Avenue
British Foreign Secretary Ernest Bevin heard Marshall's radio broadcast speech and immediately contacted French Foreign Minister Georges Bidault to begin preparing a quick European response to (and acceptance of) the offer, which led to the creation of the Committee of European Economic Co-operation.
He gained American financial support, strongly opposed Communism, and aided in the creation of NATO.

Committee of European Economic Co-operation

British Foreign Secretary Ernest Bevin heard Marshall's radio broadcast speech and immediately contacted French Foreign Minister Georges Bidault to begin preparing a quick European response to (and acceptance of) the offer, which led to the creation of the Committee of European Economic Co-operation.
The Committee of European Economic Co-operation (CEEC) was a joint European conference to determine the priorities for the recovery of the European economy after World War II, and to assist in the administration of the Marshall Plan.

Deutsche Mark

DMmarksmark
The currency reform in 1948 was headed by the military government and helped Germany to restore stability by encouraging production.
The currency reforms were simultaneous with the $1.4 billion in Marshall Plan money coming in from the United States, which primarily was used for investment.

History of the United States Democratic Party

Democratic PartyDemocraticDemocrat
The plan had bipartisan support in Washington, where the Republicans controlled Congress and the Democrats controlled the White House with Harry S. Truman as President.
On the far-left, former Vice President Henry A. Wallace denounced Truman as a war-monger for his anti-Soviet programs, the Truman Doctrine, Marshall Plan and NATO.

Polish People's Republic

Polandcommunist PolandRepublic of Poland
Although offered participation, the Soviet Union refused Plan benefits, and also blocked benefits to Eastern Bloc countries, such as Hungary and Poland.
Thus, without the reparations and without the massive Marshall Plan implemented in the West at that time, Poland's postwar recovery was much harder than it could have been.

West Germany

West GermanFederal Republic of GermanyGermany
The largest recipient of Marshall Plan money was the United Kingdom (receiving about 26% of the total), followed by France (18%) and West Germany (11%).
The West German Wirtschaftswunder ("economic miracle", coined by The Times in 1950) was due to the economic aid provided by the United States and the Marshall Plan.

Cominform

Communist Information BureauCominform ResolutionInformation Bureau
The French communist party, as others, was then to redirect its mission to "destroy capitalist economy" and that the Soviet Communist Information Bureau (Cominform) would take control of the French Communist Party's activities to oppose the Marshall Plan.
The French and Italian parties were tasked specifically with the obstruction of the implementation of the Marshall Plan and the Truman Doctrine.

Soviet Union

SovietUSSRSoviets
Although offered participation, the Soviet Union refused Plan benefits, and also blocked benefits to Eastern Bloc countries, such as Hungary and Poland.
Comecon, the Council for Mutual Economic Assistance (Russian: Совет Экономической Взаимопомощи, Sovet Ekonomicheskoy Vzaimopomoshchi, СЭВ, SEV) was an economic organization from 1949 to 1991 under Soviet control that comprised the countries of the Eastern Bloc along with a number of communist states elsewhere in the world. Moscow was concerned about the Marshall Plan and Comecon was meant to prevent countries in the Soviets' sphere of influence from moving towards that of the Americans and South-East Asia. Comecon was the Eastern Bloc's reply to the formation in Western Europe of the Organization for European Economic Co-Operation (OEEC),

1948 Czechoslovak coup d'état

Communist coupcoup d'état1948 coup d'état
However, opposition against the Marshall Plan was greatly reduced by the shock of the Communist coup in Czechoslovakia in February 1948.
The event alarmed Western countries and helped spur quick adoption of the Marshall Plan, the creation of a state in West Germany, vigorous measures to keep communists out of power in France, Greece and especially Italy, and steps toward mutual security that would, in little over a year, result in the establishment of NATO and the definitive drawing of the Iron Curtain until the Revolutions of 1989.

80th United States Congress

80thEightieth80th Congress
Members of the Republican-controlled 80th Congress (1947–1949) were skeptical.
The 80th Congress passed several significant pro-business bills, most famously the Marshall Plan and the Taft–Hartley Act, but it opposed most of Truman's Fair Deal bills.

Finland

🇫🇮FinnishFIN
Finland also declined, to avoid antagonizing the Soviets (see also Finlandization).
Finland rejected Marshall aid, in apparent deference to Soviet desires.