The Marshall Plan

June 1947

What was it?

• June 4 1947, US Secretary George C. Marshall gives speech

• Economic assistance for European countries to help them rebuild after damages faced in WWII.

• The USA would provide these countries with grants and loans to help them rebuild

• The Marshall Plan and European Recovery Program (ERP) was offered to all countries around Europe, including the Soviet Union

Impact and Outcomes

• The Soviets rejected the plan and pressured other Eastern European countries to do the same

• The Soviet was not keen on the thought of providing such economic assistance to Germany, the enemy which had recently invaded the Soviet Union (Operation Barbarossa 1941)

• The pressure was successful and none of the Soviet satellites participated in the Marshall Plan

• The Soviet claimed that the Marshall Plan was really just “a plan for interference in the domestic affairs of other countries”

• However, the US ignored Soviet action and successfully established the Marshall Plan in 1948, providing funds for other countries

• The US argued that this was another indication from the Soviet to isolate Eastern Europe from the West and enforce its communist and totalitarian policies in that region

• However, from the Soviet’s perspective their intention to isolate Eastern Europe to the West was due to it’s desire to be free from American “economic imperialism” and domination

• Indicated that the Cold War tension between US and Russia were intensifying

Conclusion