[14] In fact, the Soviet Union prevented its satellite states (i.e., East Germany, Poland, etc.) The European recipient, however, was not given the goods as a gift but had to pay for them (usually on credit) in local currency. Its purpose should be the revival of a working economy in the ", Elwood, David, "Was the Marshall Plan Necessary?" In considering the requirements for the Secretary Marshall and President Truman knew that it would not be easy to convince the American people and Congress to come to the aid of Europe, especially to help such a fierce former enemy as Germany. It offered the same aid to the Soviet Union and its allies, but they refused to accept it,[12][13] as doing so would allow a degree of US control over the communist economies. The rising issues related to the Cold War, particularly in the realm of Korea, led the U.S. to rethink the use of their funds. Economic rehabilitation would relieve that suffering and finally deliver Europeans from the lingering effects of Nazi domination. agreed to by a number, if not all, European nations. So the sale of his farm produce 128, 2005, Weissman, Alexander D. "Pivotal politics—The Marshall Plan: A turning point in foreign aid and the struggle for democracy. much further in its efforts to alleviate the situation and help start the and his family an ample supply of food, however short he may be on clothing The speech, written by Charles Bohlen, contained virtually no details and no numbers. The Economic Cooperation Act of 1948 was signed on April 3 of that year, and the Marshall Plan was underway. With the escalation of the Cold War, the United States reconsidered its position, and in 1951 embraced Spain as an ally, encouraged by Franco's aggressive anti-communist policies. [67] The poverty and starvation of the immediate postwar years disappeared, and Western Europe embarked upon an unprecedented two decades of growth that saw standards of living increase dramatically. Audio, Image = Public domain. is very serious. Marshall Plan aid allowed the nations of Western Europe to relax austerity measures and rationing, reducing discontent and bringing political stability. The Marshall Plan also played an important role in European integration. What arguments does he make to support his plan in paragraph 7? To meet this emergency, Secretary of State George Marshall proposed in a speech at Harvard University on June 5, 1947, that European nations create a plan for their economic reconstruction and that the United States provide economic assistance. The feverish preparation for war and the more feverish maintenance of the In the document, the Europeans asked for $22 billion in aid. After reading the recommendations of the Policy Planning Staff and Will Clayton's memo to Dean Acheson, Secretary Marshall concluded that the United States needed to act quickly for a program to rebuild Europe to have any chance of being successful. government that is willing to assist in the task of recovery will find The ECA's official mission statement was to give a boost to the European economy: to promote European production, to bolster European currency, and to facilitate international trade, especially with the United States, whose economic interest required Europe to become wealthy enough to import US goods. Truman tasked George Marshall with developing a plan to carry out this goal. Farms and towns were destroyed, industries bombed, and millions of civilians either killed or maimed. The Marshall Plan made it possible for West Germany to return quickly to its traditional pattern of industrial production with a strong export sector. These reparation payments meant the Soviet Union itself received about the same as 16 European countries received in total from Marshall Plan aid. Jennifer Goss is a Holocaust historian and history educator. "From the Marshall Plan to the EEC", in. Within six weeks of Secretary of State George C. Marshall's remarks at Harvard University, leaders from all of the countries of Europe met in Paris to develop a plan for recovery and determine the resources needed for the recovery to be successful. What does Marshall mean when he says that American assistance must be a “cure rather than a mere palliative”? 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. Secretary of State George Marshall, who had been the Army Chief of Staff during the War, represented the United States. To hear a recording, click here. Interviewed by: W. Haven North. History teachers will be able to incorporate those topics into an exploration of the history of the Marshall Plan, its purposes, and the diplomacy required to launch it. She serves as a consultant for the United States Holocaust Memorial Museum and the USC Shoah Foundation. Why did the Marshall Plan support farmers? The United States, on the other hand, was different. bipartisanship of World War II into the postwar years. During the nationwide campaign for support, "more than a million pieces of pro-Marshall Plan publications-booklets, leaflets, reprints, and fact sheets", were disseminated. Belgium, the country that relied earliest and most heavily on free-market economic policies after its liberation in 1944, experienced swift recovery and avoided the severe housing and food shortages seen in the rest of continental Europe. The breakdown of the business structure of Europe during the war was complete. [69] However, opposition against the Marshall Plan was greatly reduced by the shock of the Communist coup in Czechoslovakia in February 1948. [52] In addition, Western embassies in Moscow were isolated, with their personnel being denied contact with Soviet officials. of the matter is that Europe's requirements for the next three or four Students will be provided a transcript of the speech given by George Marshall at Harvard University on June 5, 1947—which is usually seen as the beginning of what becomes known as the Marshall Plan—and a list of questions to answer, based upon the speech. To make his plan work, he will need the trust of the Europeans, and here he begins to his efforts to win it. George C. Marshall, “The Marshall Plan Speech,” June 5, 1947. The Marshall Foundation Prior to his appointment, Marshall had an illustrious career as the chief of staff of the United States Army during World War II. Food shortages were severe, especially in the harsh winter of 1946–47. Does the film portray the Marshall Plan as chiefly an economic or humanitarian endeavor? This lesson is divided into two parts, a teacher’s guide and a student version, both accessible below. The largest sum went to the Congress for Cultural Freedom. Lexington, Ky.: Van der Eng, Pierre (1988). With foresight, and a willingness on the part of our people [51] He quickly realized, however, that this would be impossible after Molotov reported—following his arrival in Paris in July 1947—that conditions for the credit were non-negotiable. capital, absorption through nationalization, or by simple destruction. Additionally, U.S. President Harry Truman believed that the best way to contain the spread of communism and restore political stability within Europe was to first stabilize the economies of Western European countries who had not yet succumbed to communist takeover. Drafting the Marshall Plan Speech. upon our country, the difficulties I have outlined can and will be overcome. America took its first step in that direction when President Truman persuaded Congress to allocate funds to aid the government of Greece as it fought a civil war against a home-grown Communist resistance. He goes on to identify a problem: the public cannot understand the complexity of the world situation because it is overwhelmed by the “mass of facts” presented in the media and because Americans are far removed from those “troubled areas,” the nations of Europe, which are making the world situation serious. Without the plan, agriculture would have played a larger role in the recovery period, which itself would have been longer. A larger amount was given to the major industrial powers, as the prevailing opinion was that their resuscitation was essential for general European revival. The War left Europe devastated. By 1996 it had accumulated a value of 23 billion Deutsche Mark. position. Print. Agricultural production substantially surpassed pre-war levels. March 22. It hangs, I think, to a large Mr. President, Dr. Conant, members of the Board of Overseers, Ladies Over 10,000 entries were submitted. However, the OEEC served as both a testing and training ground for the structures that would later be used by the European Economic Community. [9], Criticism of the Marshall Plan became prominent among historians of the revisionist school, such as Walter LaFeber, during the 1960s and 1970s. Belgian economic historian Herman Van der Wee concludes the Marshall Plan was a "great success": It gave a new impetus to reconstruction in Western Europe and made a decisive contribution to the renewal of the transport system, the modernization of industrial and agricultural equipment, the resumption of normal production, the raising of productivity, and the facilitating of intra-European trade. the confidence of the people of Europe in the economic future of their Behrman, Greg. Constructing the balance of payments problem in post-war Britain. It is virtually impossible at this distance merely by reading, British economist argued that their position was validated by 1950 as European industrial production exceeded prewar levels. The farmer or the peasant cannot find the goods For a related lesson, see NSC 68: America’s Cold War Blueprint in America in Class® Lessons. In 1948, the US allowed ERP aid to be used in purchasing goods from Canada. Over the next decade, a considerable amount of American aid would go to Spain, but less than its neighbors had received under the Marshall Plan. [46], After six weeks of negotiations, Molotov rejected all of the American and British proposals.