The Marshall Plan

More than Economic AidPresented by SSgt Damian Niolet

OVERVIEW

• Introduction, Purpose Statement, and Overview

• One Name, Many Contributors

• The Situation Prior to the Marshall Plan

• The Marshall Plan in Detail

• More than Economic Aid

• Omitted for Suspense’s Sake

• The Rest is History

• Relevance

• Conclusion

One Name, Many Contributors

• The plan was named for George C. Marshall• Secretary of State ‘47 – ‘49

• There is ambiguity surrounding who really initiated the concept behind the plan:• William L. Clayton and/or George F. Kennan

• The plan itself was not even headed by Marshall• Paul G. Hoffman and Averell Harriman

• The plan’s official name is the Economic Recovery Program (ERP)

The Situation Prior to the Marshall Plan

• Sept 16, 1944: The Morgenthau Plan is enacted.

• July 17 - 9 Aug 1945: The Potsdam Conference; the A-bomb; the beginning of tensions w/ Soviet Union.

• March 5, 1946: Spread of Communism.

• 1946-1947: Europe in economic downward spiral; American defense being downsized.

• March 12, 1947: The "Truman Doctrine" signed.

• March 18, 1947: Report from Former Pres Hoover.

• June 5, 1947: Sec of State George C. Marshall gives speech at Harvard

The Marshall Plan’s Beginnings

• June 19, 1947: The British and French Foreign ministers issue a joint communiqué.

• July 12, 1947:The Conference of European Economic Cooperation convenes.

• September 1947:The CEEC submits its report.• February 1948:A Soviet-backed, communist coup occurs

in Czechoslovakia.• April 2, 1948:Congress passes the

Economic Cooperation Act (ECA).

• April 1948: Appointees named.• April 15, 1948:First official

meeting of the OEEC in Paris.

The Marshall Plan by the Numbers

• Total amount given to ERP was $13.3 billion.

• Only Germany was required to pay aid back.

The Marshall Plan in Action

The Marshall Plan Bares Fruit

More Than Economic Aid

The Diplomatic Arm

• The Soviet Union was “making friends.”• US didn’t realize how weak Soviet Union was.

• The US was in a position to “buy its friends.”• Ensure communism would not grip more of Europe.• Create a greater buffer between US and Soviet Union.

• America aimed for Soviet Union to turn plan down.• America, “Ace” in hand, felt it could take a hard stance.• Soviets saw it as lessening their grip in Eastern Europe.

• The purpose of the plan was to act as leverage in solidifying the blocs in the face of a growing ideological struggle as expressed in the “Truman Doctrine.”

The Situation Prior to the Marshall Plan

• March 5, 1946: Spread of Communism.

• 1946-1947: Europe in economic downward spiral; American defense being downsized.

• March 12, 1947: The "Truman Doctrine" signed.

• March 18, 1947: Report from Former Pres Hoover.

• June 5, 1947: Sec of State George C. Marshall gives speech at Harvard

• Sept 16, 1944: The Morgenthau Plan is enacted.

• July 17 - 9 Aug 1945: The Potsdam Conference; the A-bomb, the beginning of tensions w/ Soviet Union.

The Military Arm

• The debate: Who should annihilate the enemy?• Air Force vs Navy.

• Same horse (of the apocalypse), just different color• Nuclear power was equated into war strategy, so long as

we always had the more powerful bomb. The question was, “How would it be delivered?”

• AAF (USAF) used success in Japan to promote massive expansion

• Navy believed it would serve better for the staging of nuclear equipped aircraft and wanted to expand.

• After 1947, Army didn’t have much say in the matter.

• 1945: Debate among military leaders regarding new Military strategy in light of A-bomb.

• Sept 16, 1944: The Morgenthau Plan is enacted.

• July 17 - 9 Aug 1945: The Potsdam Conference; the A-bomb, the beginning of tensions w/ Soviet Union.1948-1949

The Situation Prior to the Marshall Plan

• March 5, 1946: Spread of Communism.

• 1946-1947: Europe in economic downward spiral; American defense being downsized.

• March 12, 1947: The "Truman Doctrine" signed.

• March 18, 1947: Report from Former Pres Hoover.

• June 5, 1947: Sec of State George C. Marshall gives speech at Harvard

Sept 1949: Successful

nuclear test in Russia

NSC-68

• Defending the Western Hemisphere and essential allied areas in order that their war-making capabilities can be developed.

• Providing and protecting a mobilization base while the offensive forces required for victory are being built up.

• Conducting offensive operations to destroy vital elements of the Soviet war-making capacity, and to keep the enemy off balance until the full offensive strength of the United States and its allies can be brought to bear.

• Defending and maintaining the lines of communication and base areas necessary to the execution of the above tasks.

• Providing such aid to allies as is essential to the execution of their role in the above tasks.

STRENGTHEN ALLIED MILITARY POWER

STRENGTHEN ALLIED MILITARY POWER

WEAKEN ENEMY MILITARY POWER

STRENGTHEN ALLIED MILITARY POWER

STRENGTHEN ALLIED MILITARY POWER

WHILE STRENGTHENING ALLIED MILITARY POWER

• 1945: Debate among military leaders regarding new Military strategy in light of A-bomb.

• Sept 16, 1944: The Morgenthau Plan is enacted.

• July 17 - 9 Aug 1945: The Potsdam Conference; the A-bomb, the beginning of tensions w/ Soviet Union.1948-1949

The Situation Prior to the Marshall Plan

• March 5, 1946: Spread of Communism.

• 1946-1947: Europe in economic downward spiral; American defense being downsized.

• March 12, 1947: The "Truman Doctrine" signed.

• March 18, 1947: Report from Former Pres Hoover.

• June 5, 1947: Sec of State George C. Marshall gives speech at Harvard

Sept 1949: Successful

nuclear test in Russia

The National Security Act

of 1947The means to

illuminate

One Strategy – Cold War

Contain the Enemy.

Deter war.

•The Marshall Plan was the Economic arm.

•The Truman Doctrine was the Diplomatic arm.

•The Annihilation Strategy was the Military arm.

•The Nat. Sec. Act of 1947 became the Intelligence arm.

The Strategy in Cartoons

• The Economic Arm

The Strategy in Cartoons

• The Diplomatic Arm

Lee Merlin -

The Atomic GirlThe Strategy in Cartoons

• The Military Arm

• The Intelligence ArmThe Strategy in Cartoons

From the Soviet Perspective

• The sign reads: Sovereignty of Western European Countries.

• The fences read: Tariff barriers.

• An American is using the bludgeon of its economy to take control of Western Europe.

The Rest is History

Contain the Enemy.

Deter war.

•The Marshall Plan was the Economic arm.• Became the forming of coalitions.

•The Truman Doctrine was the Diplomatic arm.• Became ideological struggle to win hearts and minds

•The Annihilation Strategy was the Military arm.• Became the arms race.

•The Nat. Sec. Act of 1947 became the Intelligence arm.• Became job security.

The Results

• Favorable• The world economy was more rapidly placed back into

balance.

• US became the leading superpower and formed strong and lasting alliances with much of Western Europe.

• US Military became the strongest in the world.

• Unfavorable• Ally was turned to an enemy.

• Sentiment that US was really looking to subjugate Western Europe in its own way.

Relevance for Today

• Does the Cold War live on?

Relevance for Today

• We are no longer trying to contain Communism so much as WMD.

• We have moved back to traditional war fighting in the sense that we rely far more heavily on combats rather than WMD to end wars.

• We cannot buy our friends so easily.

• There is greater diplomacy due to strength of UN compared to early in the Cold War.

• We still use bombing campaigns to begin wars, but not with WMD.

• Our focus has certainly shifted with the fall of USSR and later terrorist attacks.

Sources

• Arkes, Hadley. Bureaucracy: the Marshall Plan and the National Interest. Princeton: Princeton University Press, 1972.

• Fossedal, Gregory A. Our Finest Hour: Will Clayton, the Marshall Plan, and the Triumph of Democracy. Stanford: Hoover Institution Press, 1993.

• Parrish, Scott D, and Mikhail M Narinsky. New Evidence on the Soviet Rejection of the Marshall Plan, 1947: Two Reports. Working Paper, Washington DC: Woodrow Wilson International Center for Scholars, 1994.

• Weigley, Russell F. The American Way of War. Bloomington: Indiana University Press, 1973.

George C. MarshallRETURN

• Chief of Staff of the Army during WWII

• As a General in Army, highly regarded by American people.

• Second choice for Sec of State.

• Won Noble Peace Price for the Marshall Plan.

William L. ClaytonRETURN

• Strong supporter of free trade.

• Economic Advisor to Truman 1945.

• Turned down job of Sec. of State in 1947.

• Wrote several memos in 1946 encouraging financial support to Europe, especially countries battling communism.

George F. KennanRETURN

• Deputy head of US mission in Moscow until April 1946.

• Wrote lengthy (5,500 word) telegram to State Dept explaining Soviet behavior In February 1946.

• Kennan wroted an article in July 1947 issue of Foreign Affairs under the pseudonym "X", entitled “The Sources of Soviet Conduct.”

Paul G. HoffmanRETURN

• An automobile company executive, having been president of Studebaker and Ford.

• Served as director of the Economic Cooperation Administration (ECA) 1948 - 1950.

Averell HarrimanRETURN

• US Ambassador to the Soviet Union Oct 1943 – Jan 1946.

• 11th Secretary of Commerce Oct 1946 - Apr 1948.

• In charge of the Marshall Plan for its duration.

• 48th Governor of New York 1955 – 1958.

Proposed Divisions from the Morgenthau Plan

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• This map shows the proposed divisions of Germany.

• The intent was to separate the industrial north and other areas from agricultural south.

• In order that Germany’s ability to wage war be nil.

Further Divisions after the Potsdam Conf.

• Germany and Austria divided into 4 occupation zones.

• Berlin and Vienna divided into 4 occupation zones as well.

NEXT

More from the Potsdam Conf.

• Pres. Truman hinted to Stalin about a new weapon.

• Ultimatum given to Japan.

NEXT

Tensions w/ Soviet Union

• Certain provisions of the Potsdam Conference not being carried through.

• US demanded that the reparations being extracted out of Germany be openly accounted for and shared.

• Lend-Lease program terminated when Soviet Union was asking for more.

• Soviet Union showing little concern for economic recovery of Germany.

• Soviet Union exerting greater pressure on Eastern Bloc countries, rather than simply influencing them.

RETURN

“Iron Curtain” Speech

• Given at Westminster College in Fulton, Missouri where he would receive an honorary degree.

• President Truman was in attendance.

• He was no longer the Prime Minister of Britain.

NEXT

Spread of Communism

• Areas in red are countries that became communist in the 1940’s and 50’s

• Notice that the Soviet Union was establishing communist rule in those areas, into which it mobilized the eastern front of the Allied Forces

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War Torn EuropeNEXT

War Torn EuropeRETURN

• Britain gave India its independence seeing that it could no longer rule India from such a great distance.

• Britain told Greece and Turkey that it’s military support would end soon.

American Defense Downsizing

• There is always a general drawdown of military after a war.

• The drawdown from 1946 – 1948 was drastic.

• Only to go back up again in 1950 for reasons we will soon see.

• The “drawups” might not have required as much spending had a plan been firmly established from the start.

RETURN

The Truman Doctrine

• “The policy of the United States is to support free peoples who are resisting attempted subjugation by armed minorities or by outside pressures.”

• Truman had to sell the proposal to an American population that was growing more “Isolationist” in their sentiments and both Republican houses in Congress.• $400 hundred million given to Greece and Turkey, but no

military supplies.

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Report from Hoover

• Hoover working as critical economic advisor in Germany.

• “Move or exterminate 25,000,000 people.”

• Others were already trying to circumvent the Morgenthau Plan.

• Possibly the catalyst that finally ended the Morgenthau Plan.

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Marshall’s Call for Aid

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• Marshall was the face needed to sell the plan.

• Emphasized that it was up to Europe to prove it cold be self-reliant once aided.

QUESTIONS?