An Overview of the Marshall Plan (the Long Version)
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An Overview of the Marshall Plan (the Long Version)

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An interactive, overview of the Marshall Plan from WWII. If you are interested in the original version, with links and animations, please contact me and I'll get it to you.

An interactive, overview of the Marshall Plan from WWII. If you are interested in the original version, with links and animations, please contact me and I'll get it to you.

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  • By the end of this brief you should have a very clear understanding of the Marshall Plan, how it was more than a plan for economic aid to Europe, and how the plan relates to the primary topic of this class – Strategy. To get there I’m going to speak to these areas.
  • inviting twenty-two European nations to send representatives to Paris to draw up a cooperative recovery plan. which became the Committee of European Economic Cooperation (CEEC), meets in Paris. The Soviet Union declines to attend and pressures Czechoslovakia, Poland, and Hungary into staying away. estimating needs and the cost of the European Recovery Program (ERP) over four years. It provides for the establishment of the Organization for European Economic Cooperation(OEEC) to coordinate the program from the European side. that authorizes the Marshall Plan. President Truman signs it the next day. Paul Hoffman of Studebaker Corporation is appointed Administrator of the Economic Cooperation Agency (ECA), the temporary American agency created to implement the plan. Averell Harriman is appointed special representative of the ECA in Europe. to determine national needs prior to passage of appropriations bill by U.S. Congress.
  • The Marshall Plan was more than economic aid; it was the Policy arm of America’s New National Security Strategy, which was not fully formulated. Soviet takeover of control at the outset generally followed a three stage "bloc politics" process: (i) a general coalition of left-wing, antifascist forces; (ii) a bogus coalition in which the communists neutralized those in other parties who were not willing to accept communist supremacy; and (iii) complete communist domination, frequently exercised in a new party formed by the fusion of communist and other leftist groups.
  • Truman signed the document, but still sent it back for detail revisions. He wanted to have exact figures, dollar amounts.
  • Will L. Clayton was one of 3 partners who built a $75 cotton merchandising company. He entered government work during WWI. He also worked in government during WWII, at the Import-Export Bank, where he worked to procure strategic materials for the US and keep them out of the hands of Germany.
  • “ At the bottom of the Kremlin's neurotic view of world affairs", Kennan argued, "is the traditional and instinctive Russian sense of insecurity". Following the Russian Revolution, this sense of insecurity became mixed with communist ideology and "Oriental secretiveness and conspiracy". "the main element of any United States policy toward the Soviet Union must be a long-term, patient but firm and vigilant containment of Russian expansive tendencies... Soviet pressure against the free institutions of the Western world is something that can be contained by the adroit and vigilant application of counterforce at a series of constantly shifting geographical and political points, corresponding to the shifts and manoeuvers of Soviet policy, but which cannot be charmed or talked out of existence.
  • It grew out of the Second Quebec Conference that began Sept 16 th 1944. The plan’s aim was to divide Germany among Allied Nations and reduce Germany to a “pastoral state.” Germany’s industrial capabilities were being piecemealed out to Allied Nations.
  • There were several adjustments made to the Morgenthau plan, namely further divisions of Germany and Austria (and their capitals) in to 4 occupation zones.
  • Most notable about this conference is that at the end of it, Truman made an ultimatum to Japan, which was refused. On 6 and 9 August, the US dropped Atom Bombs on Hiroshima and Nagasaki, respectively. This may have imbued a sense of fear in the Soviet Union.
  • Conditions set in the Potsdam Conference were not being carried through; it was a case of “who started it?” Either way, the Soviet Union was becoming less of an ally.
  • Churchill expresses concern in “Iron Curtain” speech with Truman present. From Churchill’s Speech: From Stettin in the Baltic to Trieste in the Adriatic an "iron curtain" has descended across the Continent. Behind that line lie all the capitals of the ancient states of Central and Eastern Europe. Warsaw, Berlin, Prague, Vienna, Budapest, Belgrade, Bucharest and Sofia; all these famous cities and the populations around them lie in what I must call the Soviet sphere, and all are subject, in one form or another, not only to Soviet influence but to a very high and in some cases increasing measure of control from Moscow. I do not believe that Soviet Russia desires war. What they desire is the fruits of war and the indefinite expansion of their power and doctrines.” The book ends of this speech were the two writings from Kennan.
  • Russia was taking control of these countries, not because it was very strong, but because it was very weak. It intended to exploit these countries economically.
  • By 1947, Britain was just about bankrupt. Despite continued Lend-Lease contributions and acquisitions of Germany’s industrial infrastructure, devastations of WWII grows; economy deteriorating, widespread famine, unemployment, homelessness. Recovery extremely slow if not going backwards.
  • Europe’s economic crisis was one thing, Britain’s inability to sustain military operations on the other side of the continent was another. The US was doubly concerned.
  • But we didn’t foresee the Soviet Union becoming a threat; they were a strong ally in 1945.
  • Outlined in a presidential speech to Congress, makes it U.S. policy to protect nations threatened by communism. Will L. Clayton was working tirelessly prior to this time to relieve arms trade barriers to European countries, in particular Greece and Turkey, in order to combat communism. Perhaps due to George F. Kennan’s view that
  • Former US Pres Hoover explained the importance of Germany’s recovery to Europe’s Recovery. It has been suggested that Herbert Hoover's March 1947 economic report helped end the execution of the Morgenthau plan, particularly through the paragraph which stated: "There is the illusion that the New Germany left after the annexations can be reduced to a 'pastoral state'. It can not be done unless we exterminate or move 25,000,000 people out of it.“ Clayton and General Luis D Clay, who expressed early fears of Spread of Communism in Eastern Europe.
  • In a speech at the Harvard commencement in 1947, Secretary of State George C. Marshall calls for an American plan to help Europe recover from World War II.

An Overview of the Marshall Plan (the Long Version) An Overview of the Marshall Plan (the Long Version) Presentation Transcript

  • The Marshall Plan More than Economic Aid Presented 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.
    • 1945: Debate among military leaders regarding new Military strategy in light of A-bomb.
  • 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.
  • 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
    • 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 Sept 1949: Successful nuclear test in Russia
    • April 1950: NSC-68 endorsed as National Policy
  • 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
  • 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
    • 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 tension s w/ Soviet Union.
    1948-1949 Sept 1949: Successful nuclear test in Russia The National Security Act of 1947 The 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 Girl
    The Strategy in Cartoons
    • The Military Arm
    • The Intelligence Arm
    The 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. Marshall
    • 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.
    RETURN
  • William L. Clayton
    • 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.
    RETURN
  • George F. Kennan
    • 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.”
    RETURN
  • Paul G. Hoffman
    • An automobile company executive, having been president of Studebaker and Ford.
    • Served as director of the Economic Cooperation Administration (ECA) 1948 - 1950.
    RETURN
  • Averell Harriman
    • US Ambassador to the Soviet Union Oct 1943 – Jan 1946.
    • 11 th Secretary of Commerce Oct 1946 - Apr 1948.
    • In charge of the Marshall Plan for its duration.
    • 48 th Governor of New York 1955 – 1958.
    RETURN
  • Proposed Divisions from the Morgenthau Plan
    • 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.
    RETURN
  • 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
    RETURN
  • War Torn Europe NEXT
  • War Torn Europe RETURN
    • 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.
    RETURN
  • 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.
    RETURN
  • Marshall’s Call for Aid
    • Marshall was the face needed to sell the plan.
    RETURN
    • Emphasized that it was up to Europe to prove it cold be self-reliant once aided.
  • QUESTIONS?