The political state of Europe 1945-50: The new balance of power in Europe, Russian domination

of Eastern Europe, decisions on Germany’s future, economic collapse of western Europe and

recovery, Marshal Plan, Cold War, the blockade of Berlin, NATO

1. What was, in your view, the most important factor that led the United States to abandon its historic
policy of isolationism and adopted internationalism after 1945?

2. Bring out the circumstances which led to the establishment of the NATO. Also critically examine its
role and achievements in the field for which it has been formed.

3. In what ways did the Marshall plan, the dividing of Berlin, the communist take-over of power in
Czechoslovakia and the formation of NATO contribute to the development of Cold war. Analyze

4. Do you agree with the view that politics of Europe between 1945 and 1950 was confronted with the
issues of new Balance of Power and Cold War? How far these were settled?

5. What was MArshal Plan and its role in the reconstruction of Europe after WW2? (Done)

6. Discuss the factor that led to the creation of NATO and Warsaw Pact. (Done)

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1. Discuss the factor that led to the creation of NATO and Warsaw Pact.

NATO

The North Atlantic Alliance was founded in the aftermath of the Second World War. Its purpose was to
secure peace in Europe, to promote cooperation among its members and to guard their freedom – all of
this in the context of countering the threat posed at the time by the Soviet Union.

It commits the Allies to democracy, individual liberty and the rule of law, as well as to peaceful resolution
of disputes.

Importantly, the treaty sets out the idea of collective defence, meaning that an attack against one Ally is
considered as an attack against all Allies. The North Atlantic Treaty Organization – or NATO – ensures that
the security of its European member countries is inseparably linked to that of its North American
member countries.

The United States saw it as a tool to prevent the resurgence of nationalist tendencies in Europe and to
foster political integration on the continent.

Conflict between the Western nations (including the United States, Great Britain, France and other
countries) and the Communist Eastern bloc (led by the Union of Soviet Socialists Republics or USSR)
began almost as soon as the guns fell silent at the end of World War II (1939-45). The USSR oversaw the
installation of pro-Soviet governments in many of the areas it had taken from the Nazis during the war. In
response, the U.S. and its Western allies sought ways to prevent further expansion of Communist
influence on the European continent. In 1947, U.S. leaders introduced the Marshall Plan, a diplomatic
initiative that provided aid to friendly nations to help them rebuild their war-damaged infrastructures
and economies.

Events of the following year prompted American leaders to adopt a more militaristic stance toward the
Soviets. In February 1948, a coup sponsored by the Soviet Union overthrew the democratic government
of Czechoslovakia and brought that nation firmly into the Communist camp. Within a few days, U.S.
leaders agreed to join discussions aimed at forming a joint security agreement with their European allies.
The process gained new urgency in June of that year, when the USSR cut off ground access to Berlin,
forcing the U.S., Britain and France to airlift supplies to their sectors of the German city, which had been
partitioned between the Western Allies and the Soviets following World War II.

Warsaw Pact

The Warsaw Pact was established in 1955. It was a military alliance of communist countries. It relied on
the theory of collective security – if one Warsaw Pact member state was attacked, the other member
states would help defend it.

Why was the Warsaw Pact established?

This can be seen as a response to the establishment of NATO in 1949 and the fact that the Eastern Bloc
was surrounded by NATO countries.

West Germany was allowed to join NATO in 1955. It was also permitted an army and air force - the USSR
saw this as a threat that could lead to a new and strong Germany.

The Warsaw Pact was dominated by the USSR. This allowed the Soviets to force their foreign policy on
the rest of the Eastern Bloc.

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2. What was MArshal Plan and its role in the reconstruction of Europe after WW2

Between 1948 and 1951, the United States undertook what many consider to be one of its more
successful foreign policy initiatives and most effective foreign aid programs. The Marshall Plan (the Plan)
and the European Recovery Program (ERP) that it generated involved an ambitious effort to stimulate
economic growth in a despondent and nearly bankrupt post-World War II Europe, to prevent the spread
of communism beyond the “iron curtain,” and to encourage development of a healthy and stable world
economy

Formulation of the Marshall Plan

The Marshall Plan was proposed in a speech by Secretary of State George Marshall at Harvard University
on June 5, 1947, in response to the critical political, social, and economic conditions in which Europe
found itself at that time. He merely suggested that the United States would be willing to help draft a
program and would provide assistance “so far as it may be practical for us to do so.” In addition, Marshall
called for this assistance to be a joint effort, “initiated” and agreed by European nations. The crisis that
generated the Plan and the legislative and diplomatic outcome of Marshall’s proposal are discussed
below.

The Situation in Europe

European conditions in 1947, as described by Secretary of State Marshall and other U.S. officials at the
time, were dire. Although industrial production had, in many cases, returned to prewar levels (the
exceptions were Belgium, France, West Germany, Italy, and the Netherlands), the economic situation
overall appeared to be deteriorating. The recovery had been financed by drawing down on domestic
stocks and foreign assets. e. European nations were building up a growing dollar deficit. As a result,
prospects for any future growth were low. Trade between European nations was stagnant

To many observers, the declining economic conditions were generating a pessimism regarding Europe’s
future that fed class divisions and political instability. Communist parties, already large in major
countries such as Italy and France, threatened to come to power.

The potential impact on the United States was severalfold. For one, an end to European growth would
block the prospect of any trade with the continent. One of the symptoms of Europe’s malaise, in fact,
was the massive dollar deficit that signaled its inability to pay for its imports from the United States.
Perhaps the chief concern of the United States, however, was the growing threat of communism.
Although the Cold War was still in its infancy, Soviet entrenchment in Eastern Europe was well under
way.

The Truman Doctrine, enunciated in March 1947, stated that it was U.S. policy to provide support to
nations threatened by communism.

Marshal Plan

On December 19, 1947, President Harry Truman sent Congress a message that followed Marshall’s ideas
to provide economic aid to Europe. Congress overwhelmingly passed the Economic Cooperation Act of
1948, and on April 3, 1948, President Truman signed the act that became known as the Marshall Plan.

Over the next four years, Congress appropriated $13.3 billion for European recovery. This aid provided
much needed capital and materials that enabled Europeans to rebuild the continent’s economy.

For the United States, the Marshall Plan provided markets for American goods, created reliable trading
partners, and supported the development of stable democratic governments in Western Europe.
Congress’s approval of the Marshall Plan signaled an extension of the bipartisanship of World War II into
the postwar years.
Its Role iin COnstruction Of Europe

Aid for the Netherlands

World War II hit the Netherlands hard when the German forces occupied the country from 1940-1945.
The war heavily damaged its infrastructure, agriculture and housing and they were in desperate need of
repair. To rebuild its infrastructure, The Marshall Plan gave half a million dollars to the cement industry
to repair roads, bridges and ports. The port in Rotterdam was particularly important because the country
uses it to import goods. The Plan provided more funds to build housing for 9.5 million people living in
the Netherlands. Fixing the agriculture of the Netherlands required the country to modernize its
practices. It spent funds on new farming equipment and the treatment and repairing of the soil
destroyed by years of fighting. In total, the Netherlands received $1.127 billion to rebuild its country.

Aid for Germany

Germany split in two shortly after World War II ended. The Soviet Union controlled East Germany while
the United States and its allies controlled West Germany. West Germany received $1.4 billion in Marshall
Plan aid although the war heavily impacted it. The whole of Germany had an aggressive bombing
campaign to destroy its cities and invading armies from the west and east devastated the country’s
communities. Twelve percent of the aid to West Germany went towards housing the nearly eight million
refugees that had settled there after the war. These houses were necessary with a population of 67.9
million. Coal was another industry that was in desperate need; 40 percent of funding went towards this
so that Germany could fuel its industries and factories. The funds from the Marshall Plan helped the
German people find homes, jobs and food.

Aid for the UK

German bombings on British industrial sites had a terrible impact on the production of British goods,
particularly on its southern cities. By 1948, the United Kingdom had mostly recovered from the war, but
it needed to address more. While the U.K. was able to rebuild, the country was deep in debt and was
having a challenging time feeding its people and keeping its industries going. Because of its 1948
population of 50 million people and its contribution to the war effort, the U.K. received the largest sum
from the Marshall Plan, $3.2 billion. These funds provided the country with financial stability and
allowed it to balance out its economy. While the aid did not go towards helping the U.K.’s economy, it
benefited from the food and fuel brought in and the breathing room necessary to stabilize its country.

Conclusion

In total, the United States spent over $13 billion in aid for the 15 countries. These countries were able to
provide food, fuel, housing and stability for their people during a devastating time thanks to the Marshall
Plan. The average GDP of the nations that received aid increased from their prewar levels by 35 percent,
and overall industrial production rose by 40 percent. The U.S. was also a beneficiary of the economic
success of the European nations engaging in trade. In the decade following the end of the Marshall Plan
in 1951, the GDP of the United States had nearly doubled. The Marshall Plan shows the benefits of
providing foreign aid that can help not only those receiving but those giving as well.

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3. Bring out the circumstances which led to the establishment of the NATO. Also critically examine its
role and achievements in the field for which it has been formed.