What were the benefits and potential pitfalls of Truman's offer to support any country trying to resist communism? The states of the future Eastern Bloc were also approached, and Czechoslovakia and Poland agreed to attend. It ceased operation of displaced persons camps in Europe in 1947; many of its functions were transferred to several UN agencies. INTRODUCTION 2. The Spanish question arose at the San Francisco Conference. [102] The final German loan repayment was made in 1971. This left the following countries to participate in the plan: Austria, Belgium, Denmark, France, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Sweden, Switzerland, Turkey, the United Kingdom, and western Germany. U.S. Secretary. [132], Noam Chomsky said the Marshall Plan "set the stage for large amounts of private U.S. investment in Europe, establishing the basis for modern transnational corporations". During the nationwide campaign for support, "more than a million pieces of pro-Marshall Plan publications-booklets, leaflets, reprints, and fact sheets", were disseminated. With the escalation of the Cold War, the United States reconsidered its position and in 1951 embraced Spain as an ally since it was encouraged by Franco's aggressive anti-communist policies. Every country in Europe was invited, with the exceptions of Spain (a World War II neutral that had sympathized with the Axis powers) and the small states of Andorra, San Marino, Monaco, and Liechtenstein. What countries were part of the Marshall Plan? This organization was later replaced by the permanent Organisation for European Economic Co-operation (OEEC), to which West Germany was ultimately admitted. The Legacy of the Marshall Plan", "Oral History Interview with Lincoln Gordon", "BBC Correspondent Leonard Miall and the Marshall Plan Speech: An Interview", "BLS and the Marshall Plan: The Forgotten Story", "Wiederaufbau Deutschlands mit finanzieller Hilfe der Alliierten", The German Marshall Fund of the United States, Speech by J.F. Much of this aid was designed to restore infrastructure and help refugees. The speech described the dysfunction of the European economy and presented a rationale for US aid. (Counterpart funds were invested by the recipients of the aid.) ECA was headed by economic cooperation administrator Paul G. Hoffman. Which countries participated in the Marshall Plan? Thus far they had found lands nearly empty of treasure, populated by naked natives who died off rapidly on contact with Europeans. Necessary cookies are absolutely essential for the website to function properly. [88] The balance of payment problems the trouble the postwar government was caused less by economic decline and more by political overreach, according to Jim Tomlinson. The Korean War. [65]The French communist party, like others, was then to redirect its mission to "destroy capitalist economy" and that the Soviet Communist Information Bureau (Cominform) would take control of the French Communist Party's activities to oppose the Marshall Plan. If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. Add one US Influence in each of seven non-USSR Controlled Western European countries. The British could not accept the inclusion of Spain in the ERP because it would give weight to the negative image that the USSR promoted in relation to the ideology of the Marshall Plan.. Office of the Historian. Although most small towns and villages had not suffered as much damage, the destruction of transportation left them economically isolated. Soon after World War II, the United States offered economic aid to Marshall Plan, formally European Recovery Program, (April 1948-December 1951), U.S.-sponsored program designed to rehabilitate the economies of 17 western and southern European countries in order to create stable conditions in which democratic institutions could survive. This surprising result suggests that Europe itself was primarily responsible for its own reconstruction, and that the Marshall Plan and IBRD loans may have played a much smaller role in aiding European reconstruction than previously thought. Marshall gave the address at Harvard University on June 5, 1947. The total of the loan includes $65 million for Belgium and $3 million for Luxembourg: it is impossible to define the respective grants among the two countries. The United States transferred $13.3 billion (equivalent of $173 billion in 2023) in economic recovery programs to Western European economies after the end of World War II. Reports provided to Marshall suggested that some regions of the continent were on the brink of famine because agricultural and other food production had been disrupted by the fighting. [54] After that, statements were made suggesting a future confrontation with the West, calling the United States both a "fascizing" power and the "center of worldwide reaction and anti-Soviet activity", with all U.S.-aligned countries branded as enemies. France's major concern was that Germany not be rebuilt to its previous threatening power. The plan contributed greatly to the rapid renewal of the western European chemical, engineering, and steel industries. The main years of autarky are not those that are usually considered, but 1947-1955, marked by the exclusion of Spain from the Marshall Plan and the Madrid Treaty between the Franco regime and the United States. Crawford's thesis was read by future Supreme Court Justice Abe Fortas and presented to President Truman as the solution for Marshall's proposal. NOTE: We exclude countries that do not belong to our Europe aggregate; the excluded amount is less than $5 billion in 2019 dollars. Learn more about the Econ Lowdown Teacher Portal and watch a tutorial on how to use our online learning resources. Between May and June 1946, the UN Security Council made a study on the political situation in Spain, arriving at the following conclusions: Franco's regime was fascist in nature, established with the help of the Nazi regime in Germany and the fascist regime in Italy. [54] It claimed that "marshallization" must be resisted and prevented by any means and that French and Italian communist parties were to make maximum efforts to sabotage the implementation of the Plan. Still, not all participating nations benefitted equally. For Franco it was the end of his putative aspirations of conquest and a possible risk of invasion by the allies given their alignment with Germany and Italy. Which U.S. president signed the Marshall Plan into law? [131], Former US Chairman of the Federal Reserve Bank Alan Greenspan gives most credit to German Chancellor Ludwig Erhard for Europe's economic recovery. The new plan JCS 1779 stated that "an orderly and prosperous Europe requires the economic contributions of a stable and productive Germany. The Plan was intended to improve the economic situations of the countries of Western Europe and, at the same time, to discourage them from embracing communism. The Marshall Plan grants were provided at a rate that was not much higher in terms of flow than the previous UNRRA aid and represented less than 3% of the combined national income of the recipient countries between 1948 and 1951,[109] which would mean an increase in GDP growth of only 0.3%. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Please refer to the appropriate style manual or other sources if you have any questions. "[52] While the Soviet ambassador in Washington suspected that the Marshall Plan could lead to the creation of an anti-Soviet bloc, Stalin was open to the offer. The economic recoveries of France, Italy, and Belgium, Cowen argues, began a few months before the flow of US money. But its real importance was simply to compensate for the US failure to institute controls on inflows of hot money from Europe. Its headquarters were on the new Arbat Street in Moscow. Also, you are from Spain, you never got Marshall Plan, why do you lie? The Spanish Expulsion - Chabad.org The Marshall Plan, just as GARIOA, consisted of aid both in the form of grants and in the form of loans. The British could not accept the inclusion of Spain in the ERP because it would give weight to the negative image that the USSR was propagating about the ideology of the Marshall Plan. This was the Marshall Plan or European Recovery Program (ERP). So if Communism could help fix Europe's problems why was the U.S.A. against it? [28] Exceptions were the United Kingdom, the Netherlands and France, where by the end of 1947 production had already been restored to pre-war levels before the Marshall Plan. Food shortages were severe, especially in the harsh winter of 194647. The Solid Democratic South was highly supportive, the upper Midwest was dubious, but heavily outnumbered. [5], On November 4, 1950, the General Assembly adopted Resolution 386, which revoked the recommendation for the withdrawal of ambassadors accredited to the Spanish government while repealing the recommendation that prevented Spain from being a member of the International agencies established or linked by the United Nations. The resolution was adopted with 34 votes in favour, 6 votes against, 13 abstentions and one absence. When World War II began on September 1, 1939, Francoist Spain proclaimed that Spain would remain neutral. In one of the most evident signs and reflections of tight Soviet control and domination over the region, Jan Masaryk, the foreign minister of Czechoslovakia, was summoned to Moscow and berated by Stalin for considering Czechoslovakia's possible involvement with and joining of the Marshall Plan. The United States feared that the poverty, unemployment, and dislocation of the post-World War II period were reinforcing the appeal of communist parties to voters in western Europe. [3] Between May and June 1946, the UN Security Council made a study on the political situation in Spain, arriving at the following conclusions: Convinced that the Francoist State was imposed on the Spanish people by force with the help of the Axis powers (which it helped during the war) and did not represent the Spanish people, making it impossible to participate in international affairs of the Spanish people with The United Nations,[4] on December 12, 1946, the General Assembly adopted Resolution 39, which excluded the Spanish government from international organizations and conferences established by the United Nations. 1. Why was Spain excluded from the Marshall Plan? - Z Library Language links are at the top of the page across from the title. The trade relations fostered by the Marshall Plan helped forge the North Atlantic alliance that would persist throughout the Cold War in the form of NATO. The phrase "equivalent of the Marshall Plan" is often used to describe a proposed large-scale economic rescue program.[13]. Herbert Hoover noted that "The whole economy of Europe is interlinked with German economy through the exchange of raw materials and manufactured goods. When traveling at a safe speed on a freeway select a lane that allows others to. Congress eventually allocated $12.4 billion in aid over the four years of the plan. ", This page was last edited on 16 April 2023, at 20:55. In late June 1941, the Francoist regime decided to participate in the "anti-communist crusade", the invasion of the USSR by the Axis, by sending a Spanish infantry division composed of volunteers, known as the Blue Division, to the Russian front. At this conference, the three winning powers in World War II (the United States, the United Kingdom and the Soviet Union) issued a statement on the matter: The three governments, however, feel compelled to declare that they will not support any request for accession (in the UN) to the present Spanish Government, which, having been established with the support of the Axis powers, has, by reason of its origins, its nature, its history and its close association with the aggressor countries, the qualities necessary to justify that entry. The cards text reads: "Allows play of NATO. After WWII, the countries of Europe were badly damaged. [D] All this aid was separate from the Marshall Plan. This resolution paved the way for Spain to join the United Nations system, which began in 1951 with the incorporation of agencies such as UPU, ITU, FAO and WHO,[1][6] and completed with the accession of Spain to the UN in 1955. Let us know if you have suggestions to improve this article (requires login). A Theoretical and Political Analysis in the Global World Against a Background of Regional Integration: Table 1. From the very beginning of World War II, Spain favoured the Axis Powers.Apart from ideology, Spain had a debt to Germany of $212 million for supplies of matriel during the Civil War. It was also, In an effort to prevent economic decline in post-war Europe, the spread of communism and the stagnation of world trade, the Plan sought to, How did the rule of Francisco Franco in Spain differ from the rule of Adolf Hitler and Benito Mussolini? It is usually used when calling for federal spending to correct a perceived failure of the private sector. The cookies is used to store the user consent for the cookies in the category "Necessary". On the basis of a unified plan for western European economic reconstruction presented by a committee representing 16 countries, the U.S. Congress authorized the establishment of the European Recovery Program, which was signed into law by U.S. Pres. [53] He quickly realized, however, that this would be impossible after Molotov reportedfollowing his arrival in Paris in July 1947that conditions for the credit were non-negotiable. The largest sum went to the Congress for Cultural Freedom. [130] Some critics and Congressmen at the time believed that America was giving too much aid to Europe. This cookie is set by GDPR Cookie Consent plugin. By 1996 it had accumulated a value of 23 billion Deutsche Mark. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Famous for his iron political nerve, Franco believed that he was the one designated to save Spain from the chaos and instability caused by parliamentary democracy and political parties, which he blamed for ruining the unity of Spain. The initiative was named after United States Secretary of State George C. Marshall. Despite Allied protests, Franco aided the Axis Powers by sending the Blue Division to the Soviet Union and seizing. Which countries did not accept the Marshall Plan? There was large-scale American aid to Nationalist China, and North Korea, as well as French Indochina, Thailand, Burma and the Philippines. After winning the war, Franco became leader of the now one-party Spain, which he ruled until his death. CFDA Number: 19.040 Total Amount Available: $25,000 Award Ceiling: $25,000 By implementing technological literature surveys and organized plant visits, American economists, statisticians, and engineers were able to educate European manufacturers in statistical measurement. A common American interpretation of the program's role in European recovery was expressed by Paul Hoffman, head of the Economic Cooperation Administration, in 1949 when he told Congress Marshall aid had provided the "critical margin" on which other investment needed for European recovery depended. [C] "Marshall Plan" has become a metaphor for any very large-scale government program that is designed to solve a specific social problem. The negotiations were long and complex, with each nation having its own interests. In addition to economic redevelopment, one of the stated goals of the Marshall Plan was to halt the spread of communism on the European continent. [62] When they asked Zhdanov if they should prepare for armed revolt when they returned home, he did not answer. [41], The United Nations also launched a series of humanitarian and relief efforts almost wholly funded by the United States. Although they offered to participate, Soviet Union abandoned the Plans benefits, and also blocked benefits to Eastern Bloc countries such as Hungary and Poland. In the same year, the participating countries (Austria, Belgium, Denmark, France, West Germany, the United Kingdom, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, Turkey, and the United States) signed an accord establishing a master financial-aid-coordinating agency, the Organisation for European Economic Co-operation (later called the Organisation for Economic Co-operation and Development or OECD), which was headed by Frenchman Robert Marjolin. [citation needed], In January 1947, Truman appointed retired General George Marshall as Secretary of State. There were no agents working among the Soviets or their satellite states. The administration felt that the plan would likely be unpopular among many Americans, and the speech was mainly directed at a European audience. However, prominent Spanish Republican leaders did attend the conference, exerting a notorious influence on several delegations, extended to the conditions of entry into the United Nations. Why was Spain excluded from the Marshall Plan? No Peace Without Spain was a popular British political slogan of the early eighteenth century. How come instead of the policy of "Containment", the U.S. didn't try an "Open Immigration" policy instead? By Paulina Restrepo Echavarria , Brian Reinbold. [105], The Central Intelligence Agency received 5% of the Marshall Plan funds (about $685 million spread over six years), which it used to finance secret operations abroad. The Marshall Plan gave another $13 billion, equivalent to about $100 billion in 2010 value. However, the countries did return roughly 5 percent of the money to cover the administrative costs of the plans implementation. The years 1948 to 1952 saw the fastest period of growth in European history. [21][B] Over the next two decades, Western Europe enjoyed unprecedented growth and prosperity, but economists are not sure what proportion was due directly to the ERP, what proportion indirectly, and how much would have happened without it. However, the Cold War caused the US government to change its attitude towards Francoist Spain since its geographical situation and anticommunist government would be a valuable asset to the so-called "free world" plans. The cooperative allocation of funds was encouraged, and panels of government, business and labor leaders were convened to examine the economy and see where aid was needed. Copyright 2023 - globalanswers - All Rights Reserved, The British could not accept the inclusion of Spain in the ERP. Attitude in the beginning of the international organization towards Franco Spain, United Nations resolution adopted in 1946, United Nations resolution adopted in 1950, United Nations Security Council Resolution 4, United Nations Security Council Resolution 7, Dates of establishment of diplomatic relations with Francoist Spain, "La percepcin espaola de la ONU (1945-1962)", "Espaa y la ONU: la "cuestin espaola" (1945-1950)", "Investigation of the Spanish question before the United Nations", "Resolucin 39(I) de la Asamblea General de la ONU sobre la cuestin espaola", "El repudio internacional, el fin del aislamiento y el ingreso en la ONU", "La esperanza frustrada. (A) analyzes the origins of the Cold War (e.g., establishment of the Soviet Bloc, Mao's victory in China, Marshall Plan, Berlin Blockade, Iron Curtain). On December 17, 1947, the United States agreed to give $40 million to France, Austria, China, and Italy. The British government considered it politically impossible to cooperate with Spain under the Marshall Plan. At least five national laws of expulsion were implemented, in varying degrees, and often counterpart laws were enforced in the states. The only major Western European nation excluded was Francisco Franco's Spain, which was highly unpopular in Washington. "Marshall Plan Commemorative Section: The European Response: Primacy of Politics", Weissman, Alexander D. "Pivotal politics The Marshall Plan: A turning point in foreign aid and the struggle for democracy. So how could that be possible? Why didn't the eastern bloc accept the Marshall aid? [A], Its role in rapid recovery has been debated. 5 What are facts about the Marshall Plan? Major newspapers were highly supportive, including such conservative outlets as Time magazine. Not to be confused with. There were conservatives among the participants, but non-communist (or former communist) leftists were more numerous.[107]. Europe includes the following countries: Austria, Belgium, Denmark, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Sweden, Switzerland, Turkey and the United Kingdom. Franco's Spain paid a high price for this 'original sin', and alongside Finland, it was to be the only Western European country excluded from the Marshall Plan and, by extension, from the organisations that emerged on the back of United States reconstruction policy on the continent, most notably the Organisation for European UNRRA provided billions of dollars of rehabilitation aid and helped about 8 million refugees. Our editors will review what youve submitted and determine whether to revise the article. The Marshall Plan was very successful. They spent months attempting to convince Americans that their cause was just and that they should embrace the higher taxes that would come in the foreseeable future.[123].
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