Britain were almost bankrupt and couldn't aid other countries - Truman took action
Truman delivered a speech to the US Congress to announce that the US will provide $400 million in aid to Turkey and Greece
12th March 1947
Truman used the opportunity to make a clear statement of what he saw as the differences between democracy and communism
2 ways of life described by Truman
Majority rule & freedom from political oppression
The will of the minority to be forced upon the majority (communism)
Truman: 'Choosing democracy over communism is like choosing good over evil'
The Marshall Plan was a practical outcome of the Truman Doctrine. It provided economic aid to war-torn countries to stop communism taking over
During the time the Marshall Plan was in action the USA gave $12.7 billion of aid
Before WW2 USA had followed a policy of isolationism - this was abandoned due to the Truman Doctrine
In order to receive aid from the from the Marshall Plan, the country must commit to trading with the USA & review the countries finances
Marshall Plan + and - :
+ Plan supported Greece in defeating the communists
+ Confirmed the USA's commitment to containing communism
--Deepened the rivalry between US and USSR
-- Confirmed the split between communist & non-communist Europe
Dollar Imperialism (Soviet response):
People were now reliant on America and their money
People/countries indebted to America all the time
Undermined UN, suggesting it was America's job to protect the world
Stalin hated the Marshall Plan
Soviet Response to the Marshall Plan:
Stalin hated the Marshall Plan
Believed the Truman Doctrine showed USA was trying to extend it's influence in Europe
Undermined the international role of the UN
Marshall Plan is using economic might to divide Europe into 2 and establish an American economic empire (Soviets referred to this as 'dollar imperialism')
Cominform- September 1947
A political organisation set up by Stalin on the 22nd September 1947
There were 9 members
Headquarters was in Yugoslavia, Yugoslav communists were the strongest support - tension between Yugoslavia and USSR grew, Yugoslavia expelled (Headquarters moved to Romania)
Satellite states encouraged to trade with Cominform members
Contact with non-communist countries was discouraged
Comecon - January 1949 Stalin didn't allow satellite states to accept Marshall Aid --> he knew he needed to offer an alternative to keep control --> he created comecon 25th Jan 1949
Comecon provided aid in line with communist principles - in direct competition with Marshall Plan
Comecon aimed to support economic development - arranged trade & credit agreements
1953, industrial plan set up for satellite states - each state needed a 5yr plan
Trade with USA & West was discouraged
Stalin formed Comecon and Cominform in response to the threat he believed the Marshall Plan posted on the Soviet Union
However this played a significant part in the formation of NATO