THE MARSHALL PLAN
The Marshall Plan Speech:
Secretary of State George C. Marshall,
Harvard University Commencement,
C a m b r i d g e , M a s s a c h u s e t t s , June 5, 1947
M r. P re s i d e n t ,
D r. C o n a n t ,
m e mb e r s of t h e
B o a rd o f
O ve r s e e r s ,
L ad i e s an d
Gentlemen:
I 'm p ro fo u n d-
l y gr at e f u l an d
to u c h e d by t h e g re a t di st i n c ti o n a n d
h on o r an d g re a t co m p l im e n t ac c o rde d me
by th e a u th o r i ti e s of H ar v a rd t h i s m or n -
i n g . I 'm ove r w h e l m e d , as a m at t er of fa c t,
an d I' m ra th e r fe a r fu l o f my i n ab i l i ty to
ma i n ta i n su c h a h i gh r a ti n g as yo u ' ve
b e e n ge n e rou s e n ou g h t o ac c ord t o me .
In th e se h i sto r i c an d l ove ly su rro u n d i n g s ,
th i s p e r fe c t d ay, a n d th i s ve r y wo n d e r f u l
a s s e m b ly, i t i s a tre m e n d o u s ly im p re s s i ve
th i n g t o an i n d i vi d u al i n my p osi t i o n .
Bu t t o s p e ak m ore s er i o u sl y, I n e e d
n ot t e l l yo u t h at th e wor l d si t u ati o n i s
ve r y se r i o u s. Th at mu s t b e ap p a re n t to
al l i n t e l l i ge n t p e op l e . I t h i n k o n e di f fi c u l -
ty i s t h at t h e p ro b l e m i s o n e o f s u c h
e n or m ou s c om p l e x i ty th at t h e ve r y mas s
of f ac t s p re se n t e d t o t h e p u b l i c by p re s s
an d r ad i o m ake i t e x c e e di n gl y di f fi c u l t
for th e m an in th e st re e t t o re a c h a c l e a r
ap p ra i se me n t o f th e si tu a ti o n .
F u r t h e r m o re , th e p e o p l e o f t h i s co u n t r y
a re d i st an t from t h e t ro u b l e d are as o f
th e e ar th an d i t i s h ar d fo r t h e m t o c om -
p re h e n d t h e p l i gh t a n d c o n se q u e n t re a c-
ti o n s of t h e l on g -su f fer i n g p e op l e s, a n d
th e e ffe c t of t h os e re ac t i on s on t h e i r
gove rn m e n t s i n c o n n e c ti o n w i t h ou r
e f fo r ts to p rom o te p e a c e i n t h e wo r l d .
In c on si d e r in g t h e re q u i re m e n t s fo r
th e reh a b i l i ta ti o n o f E u ro p e , th e p hy s i c a l
l os s o f l i fe , th e v i s ib l e de st r u c ti o n o f
c i t i e s , f a c t o r i e s , m i n e s , an d r ai l ro ad s w a s
c o rre c t ly es ti m at e d, b u t i t h a s b e c o me
ob v i o u s d u r i n g re c e n t mo n t h s t h at t h i s
v i si b l e d es tr u c t i on w a s p ro b a b ly l e s s
se r i ou s t h an t h e di s l oc at i o n of t h e e n t i re
fa b ri c of E u rop e an e c on o my. Fo r t h e p ast
te n ye ar s c o n di t i on s h ave b ee n ab n o rm al .
Th e feve r i sh p re p a ra ti o n fo r w ar a n d t h e
m o re feve r i sh m ai n t e n an c e o f th e w a r
e f fo r t e n gu l fe d al l as p e ct s of n at i on a l
e c o n o m i e s . M a c h i n e r y h a s f al l e n i n t o di s-
re p ai r o r i s e n t i re l y o b sol e t e . Un d e r t h e
a r b i t r a r y a n d d e st ru c t i ve Naz i r u l e , v i r -
t u a l ly e ve r y p os si b l e e n t e rp r i se w as
g e a re d i n t o t h e G e r m an w ar mac h i n e .
Lo n g-s ta n di n g c om me rc i al t i e s, p r i v a t e
i n s t i t u t i o n s , b a n k s , i n su r an c e c o mp an i e s ,
an d sh i p p i n g c om p an i e s d i sap p e a re d
t h ro u gh l o ss of c ap i t a l , a b s o r p t i o n
t h ro u gh n a ti o n al i z at i on , or b y si m p l e
d e s t r u c t i o n . I n m any c o u n tr i e s, c o n f i -
de n c e i n th e l o c al c u r re n c y h as b e e n
s eve re ly sh ake n . T h e b re a k d ow n of t h e
b u si n e ss st ru c t u re o f E u rop e du r i n g th e
w ar w as c om p l e t e . R e c ove r y h a s b e e n
s e r i o u s ly re t a rde d b y t h e fa ct t h at t wo
ye ar s a ft e r th e c l ose of h o sti l i t i e s a
p e ac e se t t l e me n t w i t h G e r many an d
Au st r i a h a s n o t b e e n ag re e d u p o n . B u t
eve n gi ve n a m ore p rom p t so l u ti o n o f
th e s e di f fi c u l t p ro b l e m s , t h e re h a b i l i t a-
ti o n o f th e ec o n o mi c st r u c tu re o f E u ro p e
q u i te ev i d e n t ly w i l l re q u i re a mu c h
l on g e r ti m e an d g re a te r e f fo r t t h an h a s
b e e n fo re s e e n .
T h e re i s a p h as e of t h i s m at t er wh i c h
i s b o t h i n te re st i n g an d se r i ou s. T h e
fa rm e r h as al w ay s p ro du c e d th e fo o d-
st u ff s t o e x c h an ge w i t h t h e c i t y dwe l l e r
for th e o t h e r n e ce s si ti e s of l i fe . Th i s di v i -
si o n of l a b or i s th e b asi s of mo d e rn ci v i -
l i z a t i o n . A t th e p re se n t t i me i t is t h re a t -
e n e d w i t h b re a k d ow n . Th e t ow n a n d c i t y
i n du s tr i e s a re n ot p rod u c i n g a de q u at e
goo ds t o e x c h a n ge w i t h t h e fo o d - p ro d u c -
i n g f ar m e r. R aw mat e r i al s an d fu e l a re i n
s h o r t s u p p ly. M a c h i n e r y i s l a ck i n g o r
wor n o u t . Th e f ar me r o r t h e p e asa n t ca n -
n ot f i n d th e go od s fo r sa l e w h i c h h e
d e s i re s to p u rc h a s e . S o t h e sa l e of h i s
fa rm p rod u c e fo r mo n ey w h i c h h e ca n n ot
u se s ee m s t o h i m an u n p ro fi t ab l e t r an s-
a c t i o n . H e , t h e re fo re , h as w i th d r aw n
m a ny fi e l d s f ro m c ro p c u l t iv a ti o n a n d i s
u si n g th e m fo r gr az i n g. He fe e d s m ore
gr ai n to st o ck an d fi n d s fo r h i ms e lf a n d
h i s f am i ly a n am p l e su p p l y of fo o d , h ow -
eve r sh o r t h e may b e o n c l ot h i n g an d th e
ot h e r o rd i n a r y ga dge t s of c i v i l i za ti o n .
M e a n w h i l e , p e o p l e i n t h e c i ti e s are sh o r t
of fo od an d f u e l , an d i n so m e p l ac e s
ap p ro ac h i n g th e s ta r v at i on l eve l s . S o th e
gove rn m e n t s are fo rce d t o u se t h e i r fo r-
e i gn m on e y an d c re di t s t o p ro c u re th e s e
n e c e ssi t i e s ab ro a d . T h i s p roc e ss e x h au st s
fu n d s w h i c h a re u r ge n t ly n e e d ed fo r
re c o n s t r u c t i o n . Th u s a ve r y s e ri o u s s i tu a -
ti o n i s r ap i d ly d eve l o p i n g w h i c h b o de s n o
goo d for t h e wo r l d . Th e m od e r n sy st e m
of t h e d iv i s i on o f l ab o r u p on w h ic h th e
e x c h an ge of p ro d u ct s i s b as e d i s i n d an -
ge r o f b re a k i n g d ow n .
Th e t r u th of t h e ma tt e r i s t h at
E u ro p e 's re q u i re m e n ts fo r th e n e x t t h re e
or fou r ye ar s of fo re i g n fo od an d o th e r
e sse n t i al p rod u c t s - p r i n c i p al l y fro m
Am e ri c a - a re so mu c h gre a te r t h an h e r
p re se n t ab i l i t y to p ay th a t sh e mu st h ave
su b st an t i al a ddi t i on a l h e l p o r fa c e e c o-
n o m i c , s o c i a l , a n d p o l i ti c a l de t e r i or at i o n
of a ve r y gr ave c h ar ac t e r.
Th e re m ed y l i e s in b rea k i n g t h e
v i c i ou s c irc l e an d re st or i n g th e c on f i -
de n c e o f th e E u ro p e an p e o p l e i n t h e e c o -
n om i c f u tu re o f th e i r ow n co u n t ri e s an d
of E u rop e as a w h o l e . T h e ma nu f a c t u re r
an d t h e fa rm e r t h ro u gh o u t w i de a re a s
mu st b e a b l e an d w i l l i n g t o e x c h an ge
th e i r p ro du c t for cu r re n c i e s , th e c on t i nu -
i n g v a l u e of w h i c h i s n ot o p e n t o q u es -
tion.
Asi d e f ro m th e d e mo r al i z i n g e f fe c t on
th e wor l d at l ar ge an d th e p oss i b i l it i e s of
di s tu r b an c e s ar i si n g as a re su l t of t h e
de sp e r a ti o n o f t h e p e o p l e c on c e r n e d, t h e
c on s eq u e n c e s to t h e e c o n omy o f th e
Un i t e d St at e s s h ou l d b e ap p a re n t t o al l .
It i s l og i ca l t h at t h e Un i t e d S t at e s s h ou l d
do w h at eve r i t i s ab l e t o do t o a ssi st i n
th e ret u r n o f n or ma l e c on o m i c h e al t h i n
th e wo r l d , w i th o u t w h i c h th e re c a n b e n o
p ol i t i c al s ta b i li t y a n d n o a ssu re d p ea c e .
Ou r p o l i cy i s d i re c t e d n ot ag ai n st an y
c o u n t r y o r d oc t r in e b u t aga i n st h u n ge r,
p ove r t y, d e s p e r a t i o n , an d c h aos . It s p u r-
p os e sh o u l d b e th e re vi v a l of a wo r k i n g
e c o n o my i n t h e wor l d so as t o p e r m i t
th e e me r ge n c e o f p ol i t i c al a n d s oc i al
c on d i ti o n s i n w h i ch fre e i n st i t u ti o n s c a n
e x i s t . S u c h ass i st an c e , I am c on v i n c e d ,
mu st n o t b e on a p i e c e m ea l b as i s as v ar i -
ou s c r i se s d eve l o p. A ny assi s ta n c e th a t
th i s G ove r n me n t m ay re n de r i n th e
f u t u re sh o u l d p rov i d e a c u re r at h e r t h an
a m e re p al l i at i ve . A ny gove rn m e n t th a t i s
w i l l i n g t o ass is t i n th e ta sk o f re c ove r y
w i l l fi n d f u l l c oo p e r at i on , I am s u re , o n
th e p ar t of t h e Un i t e d S ta te s
G ove r n m e n t . A ny gove r n m e n t w h i c h
m a n e u ve rs to b l o c k t h e re c ove r y of
ot h e r c o u n tr i e s c a n n ot e x p e c t h e l p f ro m
u s . F u r t h e r m o re , gove r n m e n t s , p o l i t i c a l
p a r t i e s , o r grou p s w h i ch se e k t o p er p e t u -
at e h u m an m i se r y i n ord e r to p ro f i t
t h e re f ro m p ol i t i c al ly or o th e r w i se wi l l
e n c ou n t e r t h e op p o si t i on of t h e Un i t e d
States.
It i s al re ad y ev i de n t t h at , b e fo re th e
Un i t e d St at e s G o ve r n m e n t c an p ro c e e d
mu c h f u r t h e r i n i t s e f fo r t s t o al l ev i a t e
th e si t u ati o n a n d h e l p sta r t th e E u ro p e a n
wor l d on i ts w ay t o re c ove r y, t h e re m u s t
b e so me agre e m en t a mo n g th e c o u n tr i e s
of E u rop e as t o t h e re q u i re m e n ts of t h e
si t u at i on a n d th e p a r t t h o se c o u n tr i e s
t h e m s e l ve s w i l l ta ke i n o rd er to gi ve
p ro p e r e ffe c t t o w h at eve r ac t i on m i gh t
b e u n d er t a ke n by th i s G ove r n m e n t . I t
wou l d b e n e i t h e r fi t t i n g n o r e ff i c ac i ou s
for th i s G ove rn m e n t to u n d e r t a ke t o
d r aw u p u n i l at e r al l y a p ro gr am de si g n e d
to p l a c e E u ro p e o n i t s fe e t e c on o mi c a l ly.
Th i s i s t h e b u si n e ss of t h e E u ro p e a n s .
Th e i n i t i at i ve , I th i n k , mu s t c o m e fro m
E u ro p e . Th e rol e of t h i s c o u n tr y sh o u ld
c on s i st of f ri e n d ly a i d i n th e d r af ti n g of a
E u ro p e an p ro gr am an d o f l a te r s u p p or t
of su c h a p rog r am so fa r as i t m ay b e
p r ac t ic a l fo r u s t o do so. T h e p ro g r a m
sh o u l d b e a j o i n t on e , a g re e d to b y a
nu m b e r, i f n ot al l , E u ro p e an n a ti o n s.
An e s se n ti a l p ar t o f a ny su c c e ssf u l
ac t i on on t h e p a r t o f th e Un i te d S t at e s i s
an u n d e r st an di n g o n th e p ar t of t h e p e o-
p l e o f A me r i c a o f th e c h ar ac t e r of t h e
p ro b l e m an d th e re m e di e s to b e ap p l i e d .
Po l i ti c al p assi o n a n d p re j u d ic e sh ou l d
h ave n o p a r t . Wi t h fo re s i g h t , an d a w i ll -
i n gn e ss on th e p ar t of o u r p e op l e t o fa c e
u p t o th e v a st re sp on s i b i l it y w h i c h h i s to -
r y h a s c l e ar l y p l ac e d u p on o u r c o u n tr y
th e di f fi c u l t i es I h ave o u t l i n e d c a n an d
w i l l b e ove rc o m e .
I am so rr y t h at o n e ac h oc c as i on I
h ave sai d so me t h i n g p u b l i c l y i n re g a rd t o
ou r in t e r n at i on a l si t u at i on , I ' ve b ee n
fo rc e d by t h e n e c e ssi t i e s o f th e c ase t o
e n te r i n t o r at h e r te c h n i c al di sc u ss i on s.
Bu t t o my m i n d, i t i s o f v a st i mp o r t a n c e
th a t ou r p e o p l e re ac h s om e ge n e r al
u n de r st an d i n g o f w h at t h e c om p l i c at i on s
re a l ly are , r at h e r th a n re ac t from a p as-
si o n or a p re j u di c e o r an e mo ti o n o f th e
m o m e n t . A s I sa i d m ore fo r m a l ly a
mo m en t a go, we are re m ot e f ro m th e
sc e n e o f t h e se tro u b l e s . It i s vi r t u a l l y
i mp o ssi b l e at th i s di s ta n ce me re ly by
re a d i n g , o r l is te n i n g , or eve n se e i n g p h o-
t o g r ap h s or m ot i o n p i c tu re s , to gr a sp at
al l t h e re al si gn i fi c a n c e of t h e si t u at i on .
An d ye t th e w h ol e wo r l d o f th e fu t u re
h an g s o n a p ro p e r j u dge m e n t . It h a n gs, I
t h i n k , to a l ar ge e x t e n t on th e re a l i z a t i o n
of t h e Am e r i c an p e o p l e , of j u st w h a t a re
th e v ar i ou s do mi n a n t fac t o rs . Wh at are
th e rea c ti o n s o f th e p e op l e ? W h at are
th e j u st if i c at i on s of t h os e re a c t i o n s ?
Wh at a re th e s u ffe r i n gs? W h a t i s n e e de d ?
Wh at c an b e st b e d on e ? W h at mu st b e
done?
Th an k yo u ve r y mu c h .
Th i s t r an s cr i p t i on of t h e Mar sh a l l
Pl a n sp e e c h i s ta ke n f ro m a t ap e i n t h e
Mar sh a l l Fo u n d at io n A rc h i ve s , w h i c h wa s
ma de a s S e c re t a r y Ma rs h al l gave t h e
fa mo u s a dd re s s . T h e p r i n ci p a l di f fe re n c e s
b e t we e n th i s tr an s c ri p t i on an d e ar l i e r
w r i tt e n ve r si on s o f t h e sp e e c h d i st r i b -
u te d t o th e p re s s an d o th e r s are t h e
op e n i n g an d c l os i n g p a ra gr ap h s w h i c h
Mar sh a l l add e d w h i l e d e l i ve ri n g h i s
a dd re s s .