A. Ideological Differences: communism (soviet union) vs. Capitalism (US) ; trade, free market, we need places to go with our product. Dictatorship vs. Democracy
B. Establishing the Post-War World
1. World Bank & IMF US $7 billion to each Stalin refuses
Bank responsible for allocating loans and help reconstruct Europe WWII
IMF- coincides with the world bank, regulating exchange rates with other countries, stimulate growth, invite Stalin..he refuses when he finds out us will be there. Stalin see the US as trying to use capitalism to enslave the western Europe with its money.
France applies for money for loan from world bank, before US give France a loan you have to get rid of communist factors in your country…then you get the money.
2. George Kennan’s “Long Telegram” (2/1946)
1. Impervious to log of reason, sensitive to logic of force”
In a way it won’t do much to negotiate with Stalin, suggests that US should press the Soviet Union, contain communism where its at, keep pressure on it, and it will shrivel up.
Contain and Don’t let it spread, it will die from within.
2. Churchill travels to Missouri in March of 1946, Churchill gives a speech, and says this great iron curtain has gone across Europe, separates the western and eastern world.
C. President Truman and Containment
i. Greece & Turkey (2/1947) = Truman Doctrine 1947
Truman Doctrine- Implemented in response to Communist-led uprising in Greece and Soviet demands for control of Turkey, president asked congress for $400 million in economic and military aid to assist “free people” against “totalitarian”
1. Support “free peoples resisting attempted subjugation by armed minorities or by outside pressures”…resist a “certain ideology”
Communism…in a way adopts Kennan’s suggestions. The way the US takes from here on out.
Containment Theory- the US theory that stated, if Communism in Asia could be contained in the area the system would eventually die out (George Kennan)
D. Rebuilding/Protecting Western Europe
i. Marshall Plan (1948-1952) – Sec. of State George C. Marshall
- Marshall Plan- discontent from depression and way encouraged growth of the Communist party in Western countries life France and Italy, extensive program of economic aid to help nations revive their economies, Soviet union was offered but refused.
- Effects of the Marshal Plan- worked just as they had expected, self-sustaining growth was achieved in Europe by the 1950s, ended any real communist threat in the region.
1. $113 billion in aid to W. Europe the US…