The Marshall Plan and Economic Containment

George Kennan’s version of containment called for economic and political aid to check Communist expansion. In this context, to forestall Communist inroads and offer humanitarian assistance to Europeans facing homelessness and starvation, the Truman administration offered economic assistance to the war-torn continent. Secretary of State George Marshall recognized that if the United States did not offer help, European nations would face “economic, social, and political deterioration of a very grave character,” which in turn might plunge the world and the United States, which depended heavily on European markets, into another Great Depression. In a June 1947 speech that drew heavily on Kennan’s ideas, Marshall sketched out a plan to provide financial assistance to Europe. Although he invited any country, including the Soviet Union, that experienced “hunger, poverty, desperation, and chaos” to apply for aid, Marshall did not expect Stalin to ask for assistance. To do so would require the Soviets to supply information to the United States concerning the internal operations of their economy and to admit to the failure of communism.

Following up Marshall’s speech, Truman asked Congress in December 1947 to authorize $17 billion for European recovery. With conservative-minded Republicans still in control of Congress, the president’s spending request faced steep opposition. The Soviet Union inadvertently came to Truman’s political rescue. Stalin interpreted the proposed Marshall Plan of economic assistance as a hostile attempt by the United States to gain influence in Eastern Europe. To forestall this possibility, in late February 1948 the Soviets extinguished the remaining democracy in Eastern Europe by engineering a Communist coup in Czechoslovakia. Congressional lawmakers viewed this action as further proof of Soviet aggression. In April 1948, they approved the Marshall Plan, providing $13 billion in economic assistance to sixteen European countries over the next five years.

Explore

See Document 24.3 for the Soviet Union’s reaction to the Marshall Plan.

Review & Relate

Why did American policymakers believe that containing Communist expansion should be the foundation of American foreign policy?

What role did mutual misunderstandings and mistrust play in the emergence of the Cold War?