Washington confirms its commitment not to use the territory of Iraq to attack neighboring countries

[ChuckFinley]

Sounds like they are planning the coming out party. 

[yota691]

Jubouri McCork: The role of the coalition is important to support the parliament and the government in a post-urging

Political

 Since 2017-04-22 at 15:32 (Baghdad time)

Baghdad - Mawazine News

The Speaker of the House of Representatives Salim al-Jubouri stressed the need to continue close cooperation with the international coalition in the post-urging period, especially in the field of training and arming Iraqi forces, pointing out that "the victories achieved by the security services during the battles to liberate Mosul contributed to the stability of political and security situation in the country."

"The Speaker of the House of Representatives received in his office, the envoy of US President of the International Coalition, Brett McCurk, in the presence of US Ambassador to Iraq Douglas Silliman," said a statement from the office of al-Jubouri. "The meeting reviewed the most prominent political and security developments in Iraq and the region,

He stressed the meeting on "continuing close cooperation in the field of training and arming the Iraqi armed forces in the framework of the strategic relationship between the two countries, especially in the post-gangs and the terrorist advocate."

"The meeting also touched on the efforts of the parliament to activate the file of community reconciliation through the enactment of relevant laws, and the file of relief for the displaced and international efforts to bring them back to their areas liberated from the control of gangs and calls for terrorism."

"The role of the international community is important and influential in supporting the efforts of the parliament and the government after the completion of a gang of gangs," al-Jubouri said, adding that "the victories achieved by the security services during the battles to liberate Mosul contributed to the stability of the political and security situation in the country."

The Speaker of the House of Representatives praised "the efforts of the international coalition in the ongoing military operations and support to the Iraqi security forces on the front lines in order to complete the liberation of all cities in the country."

For his part, praised the envoy of the President of the United States "the victories achieved by Iraqi forces, especially in the ongoing military operations in Mosul, praising the sacrifices made by Iraq during the last period in the war against a supporter."

The US envoy said that "the international coalition helps Iraq in the stabilization operations in the liberated areas of Dahesh, and works seriously with the Iraqi forces to clear the mines in these areas to prepare for the return of families to them."

[ChuckFinley]

Nice to see all these article start with "Post". 

[MyLadiesDaddy]

So like everyone else in the world they want us to pay them for getting rid of Saddam  and ISIS. Go figure

 

 

Marshall Plan

From Wikipedia, the free encyclopedia

 

 

"European Recovery Program" redirects here. It is not to be confused with European Economic Recovery Plan.

Marshall Plan

Other short titles	China Aid Act of 1948
Long title	An Act to promote world peace and the general welfare, national interest, and foreign policy of the United States through economic, financial, and other measures necessary to the maintenance of conditions abroad in which free institutions may survive and consistent with the maintenance of the strength and stability of the United States.
Enacted by	the 80th United States Congress
Effective	June 3, 1948
Citations
Public law	80-472
Statutes at Large	62 Stat. 137
Legislative history
Introduced in the Senate as S. 2202 Passed the Senate on March 13, 1948 (71-19) Passed the House on March 31, 1948 (333-78) Reported by the joint conference committee on April 1, 1948; agreed to by the House on April 2, 1948 (321-78) and by the Senate on April 2, 1948 (agreed) Signed into law by President Harry S. Truman on April 3, 1948

 

The labelling used on aid packages created and sent under the Marshall Plan.

 

George C. Marshall, pictured here as a general of the US Army, before he became the US Secretary of State. It was during his term that he planned, campaigned for and carried out the Marshall Plan.

The Marshall Plan (officially the European Recovery Program, ERP) was an American initiative to aid Western Europe, in which the United States gave over $13 billion^[1] (approximately $130 billion in current dollar value as of June 2016) in economic support to help rebuild Western European economies after the end of World War II. The plan was in operation for four years beginning April 8, 1948. The goals of the United States were to rebuild war-devastated regions, remove trade barriers, modernize industry, make Europe prosperous once more, and prevent the spread of communism.^[2] The Marshall Plan required a lessening of interstate barriers, a dropping of many regulations, and encouraged an increase in productivity, labour union membership, as well as the adoption of modern business procedures.^[3]

The Marshall Plan aid was divided amongst the participant states roughly on a per capita basis. A larger amount was given to the major industrial powers, as the prevailing opinion was that their resuscitation was essential for general European revival. Somewhat more aid per capita was also directed towards the Allied nations, with less for those that had been part of the Axis or remained neutral. The largest recipient of Marshall Plan money was the United Kingdom (receiving about 26% of the total), followed by France (18%) and West Germany (11%). Some 18 European countries received Plan benefits.^[4] Although offered participation, the Soviet Union refused Plan benefits, and also blocked benefits to Eastern Bloc countries, such as East Germany and Poland. The United States provided similar aid programs in Asia, but they were not called "Marshall Plan".

The initiative is named after Secretary of State George Marshall, who also served as the United States Army Chief of staff during WWII. The plan had bipartisan support in Washington, where the Republicans controlled Congress and the Democrats controlled the White House with Harry S. Truman as president. The Plan was largely the creation of State Department officials, especially William L. Clayton and George F. Kennan, with help from the Brookings Institution, as requested by Senator Arthur H. Vandenberg, chairman of the Senate Foreign Relations Committee.^[5] Marshall spoke of an urgent need to help the European recovery in his address at Harvard University in June 1947.^[2] The purpose of the Marshall Plan was to aid in the economic recovery of nations after WWII as well as to antagonize the Soviet Union. In order to combat the effects of the Marshall Plan, the USSR developed its own economic plan, known as the Molotov Plan. It was not as effective as the Marshall Plan, and in some ways contradictory to eastern block countries that served alongside the axis powers in WWII.^[6]

The phrase "equivalent of the Marshall Plan" is often used to describe a proposed large-scale economic rescue program.^[7]

 

Development and deployment[edit]

The reconstruction plan, developed at a meeting of the participating European states, was drafted on June 5, 1947. It offered the same aid to the Soviet Union and its allies, but they refused to accept it,^[8][9] as doing so would allow a degree of US control over the communist economies.^[10] In fact, the Soviet Union prevented its satellite states (i.e., East Germany, Poland, etc.) from accepting. Secretary Marshall became convinced Stalin had no interest in helping restore economic health in Western Europe.^[11]

 

European Recovery Program expenditures by country

President Harry Truman signed the Marshall Plan on April 3, 1948, granting $5 billion in aid to 16 European nations. During the four years the plan was in effect, the United States donated $13 billion (equivalent to $189.39 billion in 2016) in economic and technical assistance to help the recovery of the European countries that joined the Organisation for European Economic Co-operation. The $13 billion was in the context of a US GDP of $258 billion in 1948, and on top of $13 billion in American aid to Europe between the end of the war and the start of the Plan that is counted separately from the Marshall Plan.^[12] The Marshall Plan was replaced by the Mutual Security Plan at the end of 1951; that new plan gave away about $7 billion annually until 1961 when it was replaced by another program.^[13]

The ERP addressed each of the obstacles to postwar recovery. The plan looked to the future, and did not focus on the destruction caused by the war. Much more important were efforts to modernize European industrial and business practices using high-efficiency American models, reducing artificial trade barriers, and instilling a sense of hope and self-reliance.^[14]

By 1952, as the funding ended, the economy of every participant state had surpassed pre-war levels; for all Marshall Plan recipients, output in 1951 was at least 35% higher than in 1938.^[15] 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. 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.^[16] The Marshall Plan was one of the first elements of European integration, as it erased trade barriers and set up institutions to coordinate the economy on a continental level—that is, it stimulated the total political reconstruction of western Europe.^[17]

Belgian economic historian Herman Van der Wee concludes the Marshall Plan was a "great success":

It gave a new impetus to reconstruction in Western Europe and made a decisive contribution to the renewal of the transport system, the modernization of industrial and agricultural equipment, the resumption of normal production, the raising of productivity, and the facilitating of intra-European trade.^[18]

Wartime destruction[edit]

 

Bombed and burned-out buildings in Nuremberg, 1945

By the end of World War II, much of Europe was devastated. Sustained aerial bombardment during the war had badly damaged most major cities, and industrial facilities were especially hard-hit.^[19] The region's trade flows had been thoroughly disrupted; millions were in refugee camps living on aid from United Nations Relief and Rehabilitation Administration and other agencies. Food shortages were severe, especially in the harsh winter of 1946–47. From July 1945 through June 1946, the United States shipped 16.5 million tons of food, primarily wheat, to Europe and Japan. It amounted to one-sixth of the American food supply, and provided 35 trillion calories, enough to provide 400 calories a day for one year to 300 million people.^[20]

Especially damaged was transportation infrastructure, as railways, bridges, and docks had been specifically targeted by airstrikes, while much merchant shipping had been sunk. Although most small towns and villages had not suffered as much damage, the destruction of transportation left them economically isolated. None of these problems could be easily remedied, as most nations engaged in the war had exhausted their treasuries in the process.^[21]

The only major powers whose infrastructure had not been significantly harmed in World War II were the United States and Canada. They were much more prosperous than before the war but exports were a small factor in their economy. Much of the Marshall Plan aid would be used by the Europeans to buy manufactured goods and raw materials from the United States and Canada.^[22]

Initial post-war events[edit]

Slow recovery[edit]

Europe's economies were recovering slowly, as unemployment and food shortages led to strikes and unrest in several nations. In 1947 the European economies were still well below their pre-war levels and were showing few signs of growth. Agricultural production was 83% of 1938 levels, industrial production was 88%, and exports only 59%.^[23] In Britain the situation was not as severe.^[24]

In Germany in 1945–46 housing and food conditions were bad, as the disruption of transport, markets and finances slowed a return to normality. In the West, bombing had destroyed 5,000,000 houses and apartments, and 12,000,000 refugees from the east had crowded in.^[24] Food production was only two-thirds of the pre-war level in 1946–48, while normal grain and meat shipments no longer arrived from the East. The drop in food production can be attributed to a drought that killed a major portion of the wheat crop while a severe winter destroyed the majority of the wheat crop the following year. This caused most Europeans to rely on a 1,500 calorie per day diet.^[25] Furthermore, the large shipments of food stolen from occupied nations during the war no longer reached Germany. Industrial production fell more than half and reached pre-war levels only at the end of 1949.^[26]

While Germany struggled to recover from the destruction of the War, the recovery effort began in June 1948, moving on from emergency relief. The currency reform in 1948 was headed by the military government and helped Germany to restore stability by encouraging production. The reform revalued old currency and deposits and introduced new currency. Taxes were also reduced and Germany prepared to remove economic barriers.^[27]

During the first three years of occupation of Germany, the UK and US vigorously pursued a military disarmament program in Germany, partly by removal of equipment but mainly through an import embargo on raw materials, part of the Morgenthau Plan approved by President Franklin D. Roosevelt.^[28]

Nicholas Balabkins concludes that "as long as German industrial capacity was kept idle the economic recovery of Europe was delayed."^[29] By July 1947 Washington realized that economic recovery in Europe could not go forward without the reconstruction of the German industrial base, deciding that an "orderly, prosperous Europe requires the economic contributions of a stable and productive Germany."^[30] In addition, the strength of Moscow-controlled communist parties in France and Italy worried Washington.^[31]

In the view of the State Department under President Harry S Truman, the United States needed to adopt a definite position on the world scene or fear losing credibility. The emerging doctrine of containment (as opposed to rollback) argued that the United States needed to substantially aid non-communist countries to stop the spread of Soviet influence. There was also some hope that the Eastern Bloc nations would join the plan, and thus be pulled out of the emerging Soviet bloc, but that did not happen.

 

The hunger-winter of 1947, thousands protest in West Germany against the disastrous food situation (March 31, 1947). The sign says: We want coal, we want bread

In January 1947, Truman appointed retired General George Marshall as Secretary of State. In July 1947 Marshall scrapped Joint Chiefs of Staff Directive 1067 implemented as part of the Morgenthau Plan under the personal supervision of Roosevelt's treasury secretary Henry Morgenthau, Jr., which had decreed "take no steps looking toward the economic rehabilitation of Germany [or] designed to maintain or strengthen the German economy." Thereafter, JCS 1067 was supplanted by JCS 1779, stating that "an orderly and prosperous Europe requires the economic contributions of a stable and productive Germany."^[32] The restrictions placed on German heavy industry production were partly ameliorated; permitted steel production levels were raised from 25% of pre-war capacity to a new limit placed at 50% of pre-war capacity.^[33]

With a communist insurgency threatening Greece, and Britain financially unable to continue its aid, the President announced his Truman Doctrine on 12 March 1947, "to support free peoples who are resisting attempted subjugation by armed minorities or by outside pressures", with an aid request for consideration and decision, concerning Greece and Turkey. Also in March 1947, former US President Herbert Hoover, in one of his reports from Germany, argued for a change in US occupation policy, amongst other things stating:

There is the illusion that the New Germany left after the annexations can be reduced to a 'pastoral state' (Morgenthau's vision). It cannot be done unless we exterminate or move 25,000,000 people out of it.^[34]

Hoover further noted that, "The whole economy of Europe is interlinked with German economy through the exchange of raw materials and manufactured goods. The productivity of Europe cannot be restored without the restoration of Germany as a contributor to that productivity."^[35] Hoover's report led to a realization in Washington that a new policy was needed; "almost any action would be an improvement on current policy."^[36] In Washington, the Joint Chiefs declared that the "complete revival of German industry, particularly coal mining" was now of "primary importance" to American security.^[32]

The United States was already spending a great deal to help Europe recover. Over $14 billion was spent or loaned during the postwar period through the end of 1947, and is not counted as part of the Marshall Plan. Much of this aid was designed to restore infrastructure and help refugees. Britain, for example, received an emergency loan of $3.75 billion.^[37]

The United Nations also launched a series of humanitarian and relief efforts almost wholly funded by the United States. These efforts had important effects, but they lacked any central organization and planning, and failed to meet many of Europe's more fundamental needs.^[38] Already in 1943, the United Nations Relief and Rehabilitation Administration (UNRRA) was founded to provide relief to areas liberated from Germany. UNRRA provided billions of dollars of rehabilitation aid, and helped about 8 million refugees. It ceased operation of displaced persons camps in Europe in 1947; many of its functions were transferred to several UN agencies.

Soviet negotiations[edit]

After Marshall's appointment in January 1947, administration officials met with Soviet Foreign Minister Vyacheslav Molotov and others to press for an economically self-sufficient Germany, including a detailed accounting of the industrial plants, goods and infrastructure already removed by the Soviets in their occupied zone.^[39][40] Molotov refrained from supplying accounts of Soviet assets.^[41] The Soviets took a punitive approach, pressing for a delay rather than an acceleration in economic rehabilitation, demanding unconditional fulfillment of all prior reparation claims, and pressing for progress toward nationwide socioeconomic transformation.^[42]

After six weeks of negotiations, Molotov rejected all of the American and British proposals.^[39][42] Molotov also rejected the counter-offer to scrap the British-American "Bizonia" and to include the Soviet zone within the newly constructed Germany.^[42] Marshall was particularly discouraged after personally meeting with Stalin to explain that the United States could not possibly abandon its position on Germany, while Stalin expressed little interest in a solution to German economic problems.^[39][42]

Marshall's speech[edit]

Wikisource has original text related to this article: The Marshall Plan Speech

After the adjournment of the Moscow conference following six weeks of failed discussions with the Soviets regarding a potential German reconstruction, the United States concluded that a solution could not wait any longer.^[39]

To clarify the US's position, a major address by Secretary of State George Marshall was planned. Marshall gave the address to the graduating class of Harvard University on June 5, 1947. Standing on the steps of Memorial Church in Harvard Yard, he offered American aid to promote European recovery and reconstruction. The speech described the dysfunction of the European economy and presented a rationale for US aid.

The modern system of the division of labor upon which the exchange of products is based is in danger of breaking down. ... Aside from the demoralizing effect on the world at large and the possibilities of disturbances arising as a result of the desperation of the people concerned, the consequences to the economy of the United States should be apparent to all. It is logical that the United States should do whatever it is able to do to assist in the return of normal economic health to the world, without which there can be no political stability and no assured peace. Our policy is not directed against any country, but against hunger, poverty, desperation and chaos. Any government that is willing to assist in recovery will find full co-operation on the part of the USA. Its purpose should be the revival of a working economy in the world so as to permit the emergence of political and social conditions in which free institutions can exist.

Marshall was convinced that economic stability would provide political stability in Europe. He offered aid, but the European countries had to organize the program themselves.

The speech, written by Charles Bohlen, contained virtually no details and no numbers. More a proposal than a plan, it was a challenge to European leaders to cooperate and coordinate. It asked Europeans to create their own plan for rebuilding Europe, indicating the United States would then fund this plan. The administration felt that the plan would likely be unpopular among many Americans, and the speech was mainly directed at a European audience. In an attempt to keep the speech out of American papers, journalists were not contacted, and on the same day, Truman called a press conference to take away headlines. In contrast, Dean Acheson, an Under Secretary of State, was dispatched to contact the European media, especially the British media, and the speech was read in its entirety on the BBC.^[43][44]

Rejection by the Soviets[edit]

Eastern Bloc
Soviet Socialist Republics[show]
Allied states[show]
Related organizations[show]
Dissent and opposition[show]
Cold War events[show]
Decline[show]
v t e

British Foreign Secretary Ernest Bevin heard Marshall's radio broadcast speech and immediately contacted French Foreign Minister Georges Bidault to begin preparing a quick European response to (and acceptance of) the offer, which led to the creation of the Committee of European Economic Co-operation. The two agreed that it would be necessary to invite the Soviets as the other major allied power. Marshall's speech had explicitly included an invitation to the Soviets, feeling that excluding them would have been a sign of distrust. State Department officials, however, knew that Stalin would almost certainly not participate, and that any plan that would send large amounts of aid to the Soviets was unlikely to be approved by Congress.

Initial reactions[edit]

Speaking at the Paris Peace Conference on 10 October 1946 Molotov had already stated Soviet fears: " If American capital was given a free hand in the small states ruined and enfeebled by the war [it] would buy up the local industries, appropriate the more attractive Rumanian, Yugoslav […] enterprises and would become the master in these small states ^[45]." 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.^[46] He directed that—in negotiations to be held in Paris regarding the aid—countries in the Eastern Bloc should not reject economic conditions being placed upon them.^[46] Stalin only changed his outlook when he learned that (a) credit would only be extended under conditions of economic cooperation and, (b) aid would also be extended to Germany in total, an eventuality which Stalin thought would hamper the Soviets' ability to exercise influence in western Germany.^[46]

Initially, Stalin maneuvered to kill the Plan, or at least hamper it by means of destructive participation in the Paris talks regarding conditions.^[46] He quickly realized, however, that this would be impossible after Molotov reported—following his arrival in Paris in July 1947—that conditions for the credit were non-negotiable.^[46] Looming as just as large a concern was the Czechoslovak eagerness to accept the aid, as well as indications of a similar Polish attitude.^[46]

Stalin suspected a possibility that these Eastern Bloc countries might defy Soviet directives not to accept the aid, potentially causing a loss of control of the Eastern Bloc.^[46] In addition, the most important condition was that every country choosing to take advantage of the plan would need to have its economic situation independently assessed—a level of scrutiny to which the Soviets could not agree.^{[citation needed]} Bevin and Bidault also insisted that any aid be accompanied by the creation of a unified European economy, something incompatible with the strict Soviet command economy.^{[citation needed]}

Compulsory Eastern Bloc rejection[edit]

Soviet Foreign Minister Vyacheslav Molotov left Paris, rejecting the plan.^[47] Thereafter, 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.^[47] The Soviets also then blamed the United States for communist losses in elections in Belgium, France and Italy months earlier, in the spring of 1947.^[47] It claimed that "marshallization" must be resisted and prevented by any means, and that French and Italian communist parties were to take maximum efforts to sabotage the implementation of the Plan.^[47] In addition, Western embassies in Moscow were isolated, with their personnel being denied contact with Soviet officials.^[47]

On July 12, a larger meeting was convened in Paris. Every country of Europe was invited, with the exceptions of Spain (a World War II neutral that had sympathized with Axis powers) and the small states of Andorra, San Marino, Monaco, and Liechtenstein. The Soviet Union was invited with the understanding that it would likely refuse. The states of the future Eastern Bloc were also approached, and Czechoslovakia and Poland agreed to attend. In one of the clearest 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 prime minister of Poland, Józef Cyrankiewicz, was rewarded by Stalin for his country's rejection of the Plan, which came in the form of the Soviet Union's offer of a lucrative trade agreement lasting for a period of five years, a grant amounting to the approximate equivalent of $450 million (in 1948; the sum would have been $4.4 billion in 2014^[48]) in the form of long-term credit and loans and the provision of 200,000 tonnes of grain, heavy and manufacturing machinery and factories and heavy industries to Poland.^[49]

The Marshall Plan participants were not surprised when the Czechoslovakian and Polish delegations were prevented from attending the Paris meeting. The other Eastern Bloc states immediately rejected the offer.^[50] Finland also declined in order to avoid antagonizing the Soviets (see also Finlandization). The Soviet Union's "alternative" to the Marshall plan, which was purported to involve Soviet subsidies and trade with western Europe, became known as the Molotov Plan, and later, the Comecon. In a 1947 speech to the United Nations, Soviet deputy foreign minister Andrei Vyshinsky said that the Marshall Plan violated the principles of the United Nations. He accused the United States of attempting to impose its will on other independent states, while at the same time using economic resources distributed as relief to needy nations as an instrument of political pressure.^[51]

Yugoslavia[edit]

Although all other Communist European Countries had deferred to Stalin and rejected the aid, the Yugoslavs, led by Josip Broz (Tito), at first went along and rejected the Marshall Plan. However, in 1948 Tito broke decisively with Stalin on other issues, making Yugoslavia an independent communist state. Yugoslavia requested American aid. American leaders were internally divided, but finally agreed and began sending money on a small scale in 1949, and on a much larger scale in 1950-53. The American aid was not part of the Marshall Plan.^[52]

Szklarska Poręba meeting[edit]

In late September, the Soviet Union called a meeting of nine European Communist parties in southwest Poland.^[53] A Communist Party of the Soviet Union (CPSU) report was read at the outset to set the heavily anti-Western tone, stating now that "international politics is dominated by the ruling clique of the American imperialists" which have embarked upon the "enslavement of the weakened capitalist countries of Europe".^[54] Communist parties were to struggle against the US presence in Europe by any means necessary, including sabotage.^[55] The report further claimed that "reactionary imperialist elements throughout the world, particularly in the U.S.A., in Britain and France, had put particular hope on Germany and Japan, primarily on Hitlerite Germany—first as a force most capable of striking a blow at the Soviet Union".^[56]

Referring to the Eastern Bloc, the report stated that "the Red Army's liberating role was complemented by an upsurge of the freedom-loving peoples' liberation struggle against the fascist predators and their hirelings."^[56] It argued that "the bosses of Wall Street" were "tak[ing] the place of Germany, Japan and Italy".^[56] The Marshall Plan was described as "the American plan for the enslavement of Europe".^[56] It described the world now breaking down "into basically two camps—the imperialist and antidemocratic camp on the one hand, and the antiimperialist and democratic camp on the other".^[56]

Although the Eastern Bloc countries except Czechoslovakia had immediately rejected Marshall Plan aid, Eastern Bloc communist parties were blamed for permitting even minor influence by non-communists in their respective countries during the run up to the Marshall Plan.^[57] The meeting's chair, Andrei Zhdanov, who was in permanent radio contact with the Kremlin from whom he received instructions,^[54] also castigated communist parties in France and Italy for collaboration with those countries' domestic agendas.^[58]Zhdanov warned that if they continued to fail to maintain international contact with Moscow to consult on all matters, "extremely harmful consequences for the development of the brother parties' work" would result.^[58]

Italian and French communist leaders were prevented by party rules from pointing out that it was actually Stalin who had directed them not to take opposition stances in 1944.^[58]The French communist party, as 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.^[55] When they asked Zhdanov if they should prepare for armed revolt when they returned home, he did not answer.^[55] In a follow-up conversation with Stalin, he explained that an armed struggle would be impossible and that the struggle against the Marshall Plan was to be waged under the slogan of national independence.^[59]

Passage in Congress[edit]

Congress, under the control of conservative Republicans, agreed to the program for multiple reasons. The 20-member conservative isolationist Senate wing of the party, based in the rural Midwest and led by Senator Kenneth S. Wherry (R-Nebraska), was outmaneuvered by the emerging internationalist wing, led by Senator Arthur H. Vandenberg (R-Michigan). The opposition argued that it would be "a wasteful 'operation rat-hole'"; that it made no sense to oppose communism by supporting the socialist governments in Western Europe; and that American goods would reach Russia and increase its war potential.^[60] Vandenberg, assisted by Senator Henry Cabot Lodge, Jr. (R-Massachusetts) admitted there was no certainty that the plan would succeed, but said it would halt economic chaos, sustain Western civilization, and stop further Soviet expansion. Senator Robert A. Taft (R-Ohio), the most prominent conservative^{[citation needed]}, hedged on the issue. He said it was without economic justification; however, it was "absolutely necessary" in "the world battle against communism." In the end, only 17 senators voted against it on 13 March 1948^[61] A bill granting an initial $5 billion passed Congress with strong bipartisan support. Congress would eventually allocate $12.4 billion in aid over the four years of the plan.^[62]

Congress reflected public opinion, which resonated with the ideological argument that communism flourishes in poverty. Truman's own prestige and power had been greatly enhanced by his stunning victory in the 1948 election. Across America, multiple interest groups, including business, labor, farming, philanthropy, ethnic groups, and religious groups, saw the Marshall Plan as an inexpensive solution to a massive problem, noting it would also help American exports and stimulate the American economy as well. Major newspapers were highly supportive, including such conservative outlets as Time Magazine. Vandenberg made sure of bipartisan support on the Senate Foreign Relations Committee. Regional attitudes played little part^{[clarification needed]}; the Solid Democratic South was highly supportive, the upper Midwest was dubious, but heavily outnumbered. The plan was opposed by conservatives in the rural Midwest, who opposed any major government spending program and were highly suspicious of Europeans.^[63] The plan also had some opponents on the left, led by Henry A. Wallace, the former Vice President. He said the Plan was hostile to the Soviet Union, a subsidy for American exporters, and sure to polarize the world between East and West.^[64] However, opposition against the Marshall Plan was greatly reduced by the shock of the Communist coup in Czechoslovakia in February 1948. The appointment of the prominent businessman Paul G. Hoffman as director reassured conservative businessmen that the gigantic sums of money would be handled efficiently.^[65][66]

Negotiations[edit]

Turning the plan into reality required negotiations among the participating nations. Sixteen nations met in Paris to determine what form the American aid would take, and how it would be divided. The negotiations were long and complex, with each nation having its own interests. France's major concern was that Germany not be rebuilt to its previous threatening power. The Benelux countries (Belgium, Netherlands and Luxemburg), despite also suffering under the Nazis, had long been closely linked to the German economy and felt their prosperity depended on its revival. The Scandinavian nations, especially Sweden, insisted that their long-standing trading relationships with the Eastern Bloc nations not be disrupted and that their neutrality not be infringed.^[67]

The United Kingdom insisted on special status as a longstanding belligerent during the war, concerned that if it were treated equally with the devastated continental powers it would receive virtually no aid. The Americans were pushing the importance of free trade and European unity to form a bulwark against communism. The Truman administration, represented by William L. Clayton, promised the Europeans that they would be free to structure the plan themselves, but the administration also reminded the Europeans that implementation depended on the plan's passage through Congress. A majority of Congress members were committed to free trade and European integration, and were hesitant to spend too much of the money on Germany.^[67] However, before the Marshall Plan was in effect, France, Austria, and Italy needed immediate aid. On December 17, 1947, the United States agreed to give $40 million to France, Austria, China, and Italy.^[68]

Agreement was eventually reached and the Europeans sent a reconstruction plan to Washington, which was formulated and agreed upon by the Committee of European Economic Co-operation in 1947. In the document the Europeans asked for $22 billion in aid. Truman cut this to $17 billion in the bill he put to Congress. On March 17, 1948, Truman addressed European security and condemned the Soviet Union before a hastily convened Joint Session of Congress. Attempting to contain spreading Soviet influence in Eastern Bloc, Truman asked Congress to restore a peacetime military draft and to swiftly pass the Economic Cooperation Act, the name given to the Marshall Plan. Of the Soviet Union Truman said, "The situation in the world today is not primarily the result of the natural difficulties which follow a great war. It is chiefly due to the fact that one nation has not only refused to cooperate in the establishment of a just and honorable peace but—even worse—has actively sought to prevent it."^[69]

Members of the Republican-controlled 80th Congress (1947–1949) were skeptical. "In effect, he told the Nation that we have lost the peace, that our whole war effort was in vain.", noted Representative Frederick Smith of Ohio. Others thought he had not been forceful enough to contain the USSR. "What [Truman] said fell short of being tough", noted Representative Eugene Cox, a Democrat from Georgia, "there is no prospect of ever winning Russian cooperation." Despite its reservations, the 80th Congress implemented Truman's requests, further escalating the Cold War with the USSR.^[69]

Truman signed the Economic Cooperation Act into law on April 3, 1948; the Act established the Economic Cooperation Administration (ECA) to administer the program. ECA was headed by economic cooperation administrator Paul G. Hoffman. 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 Organization for European Economic Cooperation (later called the Organization for Economic Cooperation and Development or OECD), which was headed by Frenchman Robert Marjolin.

Implementation[edit]

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First page of the Marshall Plan

The first substantial aid went to Greece and Turkey in January 1947, which were seen as the front line of the battle against communist expansion, and were already receiving aid under the Truman Doctrine. Initially, Britain had supported the anti-communist factions in those countries, but due to its dire economic condition it decided to pull out and in February 1947 requested the US to continue its efforts.^[70]The ECA formally began operation in July 1948.

The ECA's official mission statement was to give a boost to the European economy: to promote European production, to bolster European currency, and to facilitate international trade, especially with the United States, whose economic interest required Europe to become wealthy enough to import US goods. Another unofficial goal of ECA (and of the Marshall Plan) was the containment of growing Soviet influence in Europe, evident especially in the growing strength of communist parties in Czechoslovakia, France, and Italy.

The Marshall Plan money was transferred to the governments of the European nations. The funds were jointly administered by the local governments and the ECA. Each European capital had an ECA envoy, generally a prominent American businessman, who would advise on the process. 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.

The Marshall Plan aid was mostly used for the purchase of goods from the United States. The European nations had all but exhausted their foreign exchange reserves during the war, and the Marshall Plan aid represented almost their sole means of importing goods from abroad. At the start of the plan, these imports were mainly much-needed staples such as food and fuel, but later the purchases turned towards reconstruction needs as was originally intended. In the latter years, under pressure from the United States Congress and with the outbreak of the Korean War, an increasing amount of the aid was spent on rebuilding the militaries of Western Europe. Of the some $13 billion allotted by mid-1951, $3.4 billion had been spent on imports of raw materials and semi-manufactured products; $3.2 billion on food, feed, and fertilizer; $1.9 billion on machines, vehicles, and equipment; and $1.6 billion on fuel.^[71]

Also established were counterpart funds, which used Marshall Plan aid to establish funds in the local currency. According to ECA rules 60% of these funds had to be invested in industry. This was prominent in Germany, where these government-administered funds played a crucial role in lending money to private enterprises which would spend the money rebuilding. These funds played a central role in the reindustrialization of Germany. In 1949–50, for instance, 40% of the investment in the German coal industry was by these funds.^[72]

The companies were obligated to repay the loans to the government, and the money would then be lent out to another group of businesses. This process has continued to this day in the guise of the state owned KfW bank, (Kreditanstalt für Wiederaufbau, meaning Reconstruction Credit Institute). The Special Fund, then supervised by the Federal Economics Ministry, was worth over DM 10 billion in 1971. In 1997 it was worth DM 23 billion. Through the revolving loan system, the Fund had by the end of 1995 made low-interest loans to German citizens amounting to around DM 140 billion. The other 40% of the counterpart funds were used to pay down the debt, stabilize the currency, or invest in non-industrial projects. France made the most extensive use of counterpart funds, using them to reduce the budget deficit. In France, and most other countries, the counterpart fund money was absorbed into general government revenues, and not recycled as in Germany.^{[citation needed]}

The Netherlands received US aid for economic recovery in the Netherlands Indies. However, in January 1949, the American government suspended this aid in response to the Dutch efforts to restore colonial rule in Indonesia during the Indonesian National Revolution, and it implicitly threatened to suspend Marshall aid to the Netherlands if the Dutch government continued to oppose the independence of Indonesia.^[73]

Technical Assistance Program[edit]

 

Construction in West Berlin with the help of the Marshall Plan after 1948. On the plaque read: "Emergency Program Berlin - with the help of the Marshall Plan"

 

US aid to Greece under the Marshall Plan

The US Bureau of Labor Statistics (BLS) contributed heavily to the success of the Technical Assistance Program. The United States Congress passed a law on June 7, 1940 that allowed the BLS to "make continuing studies of labor productivity"^[74] and appropriated funds for the creation of a Productivity and Technological Development Division. The BLS could then use its expertise in the field of productive efficiency to implement a productivity drive in each Western European country receiving Marshall Plan aid.

By implementing technological literature surveys and organized plant visits, American economists, statisticians, and engineers were able to educate European manufacturers in statistical measurement. The goal of the statistical and technical assistance from the Americans was to increase productive efficiency of European manufacturers in all industries.

In order to perform this analysis, the BLS performed two types of productivity calculations. First, they used existing data to calculate how much a worker produces per hour of work—the average output rate. Second, they compared the existing output rates in a particular country to output rates in other nations. By performing these calculations across all industries, the BLS was able to identify the strengths and weaknesses of each country's manufacturing and industrial production. From that, the BLS could recommend technologies (especially statistical) that each individual nation could implement. Often, these technologies came from the United States; by the time the Technical Assistance Program began, the United States used statistical technologies "more than a generation ahead of what [the Europeans] were using".^[74]

The BLS used these statistical technologies to create Factory Performance Reports for Western European nations. The American government sent hundreds of technical advisors to Europe in order to observe workers in the field; this on-site analysis made the Factory Performance Reports especially helpful to the manufacturers. In addition, the Technical Assistance Program funded 24,000 European engineers, leaders, and industrialists to visit America and tour America's factories, mines, and manufacturing plants.^[75] This way, the European visitors would be able to return to their home countries and implement the technologies used in the United States. The analyses in the Factory Performance Reports and the "hands-on" experience had by the European productivity teams effectively identified productivity deficiencies in European industries; from there, it became clearer how to make European production more effective.

Before the Technical Assistance Program even went into effect, Maurice Tobin (the United States Secretary of Labor) expressed his confidence in American productivity and technology to both American and European economic leaders. He urged that the United States play a large role in improving European productive efficiency by providing four recommendations for the program's administrators:

1. That BLS productivity personnel should serve on American-European councils for productivity;
2. that productivity targets (based on American productivity standards) can and should be implemented to increase productivity;
3. that there should be a general exchange and publication of information; and
4. that the "technical abstract" service should be the central source of information.^[76]

The effects of the Technical Assistance Program were not limited to improvements in productive efficiency. While the thousands of European leaders took their work/study trips to the United States, they were able to observe a number of aspects of American society as well. The Europeans could watch local, state, and federal governments work together with citizens in a pluralist society. They observed a democratic society with open universities and civic societies in addition to more advanced factories and manufacturing plants. The Technical Assistance Program allowed Europeans to bring home many types of American ideas.^[77]

Another important aspect of the Technical Assistance Program was its low cost. While $19.4 billion was allocated for capital costs in the Marshall Plan, the Technical Assistance Program only required $300 million. Only one-third of that $300 million cost was paid by the United States.^[76]

 

1960 West German stamp honoring George Marshall

German level of industry restrictions[edit]

Even while the Marshall Plan was being implemented, the dismantling of ostensibly German industry continued; and in 1949 Konrad Adenauer, an opponent to Hitler's regime and the head of the Christian Democratic Union,^[78] wrote to the Allies requesting the end of industrial dismantling, citing the inherent contradiction between encouraging industrial growth and removing factories, and also the unpopularity of the policy.^[79]Adenauer had been released from prison, only to discover that the Soviets had effectively divided Europe with Germany divided even further.^[78]Support for dismantling was by this time coming predominantly from the French, and the Petersberg Agreement of November 1949 greatly reduced the levels of deindustrialization, though dismantling of minor factories continued until 1951.^[80] The first "level of industry" plan, signed by the Allies on March 29, 1946, had stated that German heavy industry was to be lowered to 50% of its 1938 levels by the destruction of 1,500 listed manufacturing plants.^[81] Marshall Plan played a huge role in post-war recovery for Europe in general. 1948, conditions were improving, European workers exceeded by 20 percent from the earning from the west side. Thanks to the Plan, during 1952, it went up 35 percent of the industrial and agricultural.^[82]

In January 1946 the Allied Control Council set the foundation of the future German economy by putting a cap on German steel production. The maximum allowed was set at about 5,800,000 tons of steel a year, equivalent to 25% of the pre-war production level.^[83] The UK, in whose occupation zone most of the steel production was located, had argued for a more limited capacity reduction by placing the production ceiling at 12 million tons of steel per year, but had to submit to the will of the US, France and the Soviet Union (which had argued for a 3 million ton limit). Steel plants thus made redundant were to be dismantled. Germany was to be reduced to the standard of life it had known at the height of the Great Depression (1932).^[84] Consequently, car production was set to 10% of pre-war levels, and the manufacture of other commodities was reduced as well.^[85]

The first "German level of industry" plan was subsequently followed by a number of new ones, the last signed in 1949. By 1950, after the virtual completion of the by then much watered-down "level of industry" plans, equipment had been removed from 706 manufacturing plants in western Germany and steel production capacity had been reduced by 6,700,000 tons.^[86] Vladimir Petrov concludes that the Allies "delayed by several years the economic reconstruction of the war-torn continent, a reconstruction which subsequently cost the United States billions of dollars."^[87] In 1951 West Germany agreed to join the European Coal and Steel Community (ECSC) the following year. This meant that some of the economic restrictions on production capacity and on actual production that were imposed by the International Authority for the Ruhr were lifted, and that its role was taken over by the ECSC.^[88]

Expenditures[edit]

The Marshall Plan aid was divided amongst the participant states on a roughly per capita basis. A larger amount was given to the major industrial powers, as the prevailing opinion was that their resuscitation was essential for general European revival. Somewhat more aid per capita was also directed towards the Allied nations, with less for those that had been part of the Axis or remained neutral. The exception was Iceland, which had been neutral during the war, but received far more on a per capita basis than the second highest recipient.^[89] The table below shows Marshall Plan aid by country and year (in millions of dollars) from The Marshall Plan Fifty Years Later.^[90] There is no clear consensus on exact amounts, as different scholars differ on exactly what elements of American aid during this period were part of the Marshall Plan.

Country	1948/49 ($ millions)	1949/50 ($ millions)	1950/51 ($ millions)	Cumulative ($ millions)
Totals	4,924	3,652	4,155	12,731
Austria	232	166	70	468
Belgium and  Luxembourg	195	222	360	777
Denmark	103	87	195	385
France	1085	691	520	2296
West Germany	510	438	500	1448
Greece	175	156	45	376
Iceland	6	22	15	43
Ireland	88	45	0	133
Italy and  Trieste	594	405	205	1204
Netherlands	471	302	355	1128
Norway	82	90	200	372
Portugal	0	0	70	70
Sweden	39	48	260	347
Switzerland	0	0	250	250
Turkey	28	59	50	137
United Kingdom	1316	921	1060	3297

Loans and grants[edit]

The Marshall Plan, just as GARIOA, consisted of aid both in the form of grants and in the form of loans.^[91] Out of the total, 1.2 billion USD were loan-aid.^[92]

Ireland which received 146.2 million USD through the Marshall Plan, received 128.2 million USD as loans, and the remaining 18 million USD as grants.^[93] By 1969 the Irish Marshall Plan debt, which was still being repaid, amounted to 31 million pounds, out of a total Irish foreign debt of 50 million pounds.^[94]

The UK received 385 million USD of its Marshall Plan aid in the form of loans.^[92] Unconnected to the Marshall Plan the UK also received direct loans from the US amounting to 4.6 billion USD.^[92] The proportion of Marshall Plan loans versus Marshall Plan grants was roughly 15% to 85% for both the UK and France.^[95]

Germany, which up until the 1953 Debt agreement had to work on the assumption that all the Marshall Plan aid was to be repaid, spent its funds very carefully. Payment for Marshall Plan goods, "counterpart funds", were administered by the Reconstruction Credit Institute, which used the funds for loans inside Germany. In the 1953 Debt agreement the amount of Marshall plan aid that Germany was to repay was reduced to less than 1 billion USD.^[96] This made the proportion of loans versus grants to Germany similar to that of France and the UK.^[95] The final German loan repayment was made in 1971.^[97] Since Germany chose to repay the aid debt out of the German Federal budget, leaving the German ERP fund intact, the fund was able to continue its reconstruction work. By 1996 it had accumulated a value of 23 billion Deutsche Mark.^[98]

Effects and legacy[edit]

 

One of a number of posters created to promote the Marshall Plan in Europe. Note the pivotal position of the American flag. The blue and white flag between those of Germany and Italy is a version of the Trieste flag with the UN blue rather than the traditional red.

The Marshall Plan was originally scheduled to end in 1953. Any effort to extend it was halted by the growing cost of the Korean War and rearmament. American Republicans hostile to the plan had also gained seats in the 1950 Congressional elections, and conservative opposition to the plan was revived. Thus the plan ended in 1951, though various other forms of American aid to Europe continued afterwards.

The years 1948 to 1952 saw the fastest period of growth in European history. Industrial production increased by 35%. Agricultural production substantially surpassed pre-war levels.^[62] The poverty and starvation of the immediate postwar years disappeared, and Western Europe embarked upon an unprecedented two decades of growth that saw standards of living increase dramatically. There is some debate among historians over how much this should be credited to the Marshall Plan. Most reject the idea that it alone miraculously revived Europe, as evidence shows that a general recovery was already underway. Most believe that the Marshall Plan sped this recovery, but did not initiate it. Many argue that the structural adjustments that it forced were of great importance. Economic historians J. Bradford DeLong and Barry Eichengreen call it "history's most successful structural adjustment program."^[99] One effect of the plan was that it subtly "Americanized" countries, especially Austria, who embraced United States' assistance, through popular culture, such as Hollywood movies and rock n' roll.^[100]

The political effects of the Marshall Plan may have been just as important as the economic ones. Marshall Plan aid allowed the nations of Western Europe to relax austerity measures and rationing, reducing discontent and bringing political stability. The communist influence on Western Europe was greatly reduced, and throughout the region communist parties faded in popularity in the years after the Marshall Plan. The trade relations fostered by the Marshall Plan helped forge the North Atlantic alliance that would persist throughout the Cold War. At the same time, the nonparticipation of the states of the Eastern Bloc was one of the first clear signs that the continent was now divided.

The Marshall Plan also played an important role in European integration. Both the Americans and many of the European leaders felt that European integration was necessary to secure the peace and prosperity of Europe, and thus used Marshall Plan guidelines to foster integration. In some ways this effort failed, as the OEEC never grew to be more than an agent of economic cooperation. Rather it was the separate European Coal and Steel Community, which notably excluded Britain, that would eventually grow into the European Union. However, the OEEC served as both a testing and training ground for the structures that would later be used by the European Economic Community. The Marshall Plan, linked into the Bretton Woods system, also mandated free trade throughout the region.

While some historians today feel some of the praise for the Marshall Plan is exaggerated, it is still viewed favorably and many thus feel that a similar project would help other areas of the world. After the fall of communism several proposed a "Marshall Plan for Eastern Europe" that would help revive that region. Others have proposed a Marshall Plan for Africa to help that continent, and US Vice President Al Gore suggested a Global Marshall Plan.^[101] "Marshall Plan" has become a metaphor for any very large scale government program that is designed to solve a specific social problem. It is usually used when calling for federal spending to correct a perceived failure of the private sector.

Repayment[edit]

The Organisation for European Economic Co-operation took the leading role in allocating funds, and the OEEC arranged for the transfer of the goods. The American supplier was paid in dollars, which were credited against the appropriate European Recovery Program funds. The European recipient, however, was not given the goods as a gift, but had to pay for them (usually on credit) in local currency. These payments were kept by the European government involved in a special counterpart fund. This counterpart money, in turn, could be used by the government for further investment projects. Five percent of the counterpart money was paid to the US to cover the administrative costs of the ERP. The Marshall Plan money was in the form of grants that did not have to be repaid.^[102] In addition to ERP grants, the Export-Import Bank (an agency of the US government) at the same time made long-term loans at low interest rates to finance major purchases in the US, all of which were repaid.

In the case of Germany, there also were 16 billion marks of debts from the 1920s which had defaulted in the 1930s, but which Germany decided to repay to restore its reputation. This money was owed to government and private banks in the US, France and Britain. Another 16 billion marks represented postwar loans by the US. Under the London Debts Agreement of 1953, the repayable amount was reduced by 50% to about 15 billion marks and stretched out over 30 years, and compared to the fast-growing German economy were of minor impact.^[103]

Areas without the Plan[edit]

Large parts of the world devastated by World War II did not benefit from the Marshall Plan. The only major Western European nation excluded was Francisco Franco's Spain, which did not overtly participate in World War II. After the war, it pursued a policy of self-sufficiency, currency controls, and quotas, with little success. With the escalation of the Cold War, the United States reconsidered its position, and in 1951 embraced Spain as an ally, encouraged by Franco's aggressive anti-communist policies. Over the next decade, a considerable amount of American aid would go to Spain, but less than its neighbors had received under the Marshall Plan.^[104]

While the western portion of the Soviet Union had been as badly affected as any part of the world by the war, the eastern portion of the country was largely untouched and had seen a rapid industrialization during the war. The Soviets also imposed large reparations payments on the Axis allies that were in its sphere of influence. Austria, Finland, Hungary, Romania, and especially East Germany were forced to pay vast sums and ship large amounts of supplies to the USSR. These reparation payments meant the Soviet Union itself received about the same as 16 European countries received in total from Marshall Plan aid.^[105]

In accordance with the agreements with the USSR, shipment of dismantled German industrial installations from the west began on March 31, 1946. Under the terms of the agreement the Soviet Union would in return ship raw materials such as food and timber to the western zones. In view of the Soviet failure to do so, the western zones halted the shipments east, ostensibly on a temporary basis, although they were never resumed. It was later shown that the main reason for halting shipments east was not the behavior of the USSR but rather the recalcitrant behavior of France.^[106] Examples of material received by the USSR were equipment from the Kugel-Fischer ballbearing plant at Schweinfurt, the Daimler-Benz underground aircraft-engine plant at Obrigheim, the Deschimag shipyards at Bremen-Weser, and the Gendorf powerplant.^[107][108]

The USSR did establish COMECON as a riposte to the Marshall Plan to deliver aid for Eastern Bloc countries, but this was complicated by the Soviet efforts to manage their own recovery from the war. The members of Comecon looked to the Soviet Union for oil; in turn, they provided machinery, equipment, agricultural goods, industrial goods, and consumer goods to the Soviet Union. Economic recovery in the East was much slower than in the West, resulting in the formation of the shortage economies and a gap in wealth between East and West. Finland, which USSR forbade to join the Marshall Plan and which was required to give large reparations to the USSR, saw its economy recover to pre-war levels in 1947.^[109] France, which received billions of dollars through the Marshall Plan, similarly saw its average income per person return to almost pre-war level by 1949.^[110] By mid-1948 industrial production in Poland, Hungary, Bulgaria, and Czechoslovakia had recovered to a level somewhat above pre-war level.^[111]

Aid to Asia[edit]

From the end of the war to the end of 1953, the US provided grants and credits amounting to $5.9 billion to Asian countries, especially China/Taiwan ($1.051 billion), India ($255 million), Indonesia ($215 million), Japan ($2.44 billion), South Korea ($894 million), Pakistan ($98 million) and the Philippines ($803 million). In addition, another $282 million went to Israel and $196 million to the rest of the Middle East.^[112] All this aid was separate from the Marshall Plan.

Canada[edit]

Canada, like the United States, was little damaged by the war and in 1945 was one of the world's largest economies. It operated its own aid program. In 1948, the US allowed ERP aid to be used in purchasing goods from Canada. Canada made over a billion dollars in sales in the first two years of operation.^[113]

World total[edit]

The total of American grants and loans to the world from 1945 to 1953 came to $44.3 billion.^[114]

Criticism[edit]

Laissez-faire criticism[edit]

Initial criticism of the Marshall Plan came from a number of economists. Wilhelm Röpke, who influenced German Minister for Economy Ludwig Erhard in his economic recovery program, believed recovery would be found in eliminating central planning and restoring a market economy in Europe, especially in those countries which had adopted more fascist and corporatist economic policies. Röpke criticized the Marshall Plan for forestalling the transition to the free market by subsidizing the current, failing systems. Erhard put Röpke's theory into practice and would later credit Röpke's influence for West Germany's preeminent success.^[115]

Henry Hazlitt criticized the Marshall Plan in his 1947 book Will Dollars Save the World?, arguing that economic recovery comes through savings, capital accumulation and private enterprise, and not through large cash subsidies. Ludwig von Mises criticized the Marshall Plan in 1951, believing that "the American subsidies make it possible for [Europe's] governments to conceal partially the disastrous effects of the various socialist measures they have adopted".^[116] Some critics and Congressmen at the time believed that America was giving too much aid to Europe. America had already given Europe $9 billion in other forms of help in previous years. The Marshall Plan gave another $13 billion, equivalent to about $100 billion in 2010 value.^[117]

Modern criticism[edit]

Criticism of the Marshall Plan became prominent among historians of the revisionist school, such as Walter LaFeber, during the 1960s and 1970s. They argued that the plan was American economic imperialism, and that it was an attempt to gain control over Western Europe just as the Soviets controlled the Eastern Bloc. In a review of West Germany's economy from 1945 to 1951, German analyst Werner Abelshauser concluded that "foreign aid was not crucial in starting the recovery or in keeping it going". The economic recoveries of France, Italy, and Belgium, Cowen found, also predated the flow of US aid. Belgium, the country that relied earliest and most heavily on free market economic policies after its liberation in 1944, experienced swift recovery and avoided the severe housing and food shortages seen in the rest of continental Europe.^[118]

Former US Chairman of the Federal Reserve Bank Alan Greenspan gives most credit to Ludwig Erhard for Europe's economic recovery. Greenspan writes in his memoir The Age of Turbulence that Erhard's economic policies were the most important aspect of postwar Western Europe recovery, even outweighing the contributions of the Marshall Plan. He states that it was Erhard's reductions in economic regulations that permitted Germany's miraculous recovery, and that these policies also contributed to the recoveries of many other European countries. Its recovery is attributed to traditional economic stimuli, such as increases in investment, fueled by a high savings rate and low taxes. Japan saw a large infusion of US investment during the Korean War.^[119]

 

The Postwar Period coin

Noam Chomsky from the left said the Marshall Plan "set the stage for large amounts of private U.S. investment in Europe, establishing the basis for modern transnational corporations".^[120]

In popular culture[edit]

Alfred Friendly, press aide to the US Secretary of Commerce W. Averell Harriman, wrote a humorous operetta about the Marshall Plan during its first year; one of the lines in the operetta was: "Wines for Sale; will you swap / A little bit of steel for Chateau Neuf du Pape?"^[121]

The Spanish comedy film Welcome Mr. Marshall! tells the story of a small Spanish town, Villar del Río, which hears of the visit of American diplomats and begins preparations to impress the American visitors in the hopes of benefiting under the Marshall Plan.

Edited April 22, 2017 by ladyGrace'sDaddy

[Golfnsr]

How about Cliff Notes on the last post.

[ChuckFinley]

1 minute ago, Golfnsr said:

How about Cliff Notes on the last post.

I always wanted those translation ones done. Just reading them is a challenge.   

[yota691]

envoy Trump renewed his country 's support for Iraq in the war Daesh

 

 

 

 11 minutes ago

 

 

US President George W. Bush's envoy for international coalition affairs, Brett McCurk, on Saturday reiterated his country's support for Iraq in the fight against a militant organization.

 

This came during a meeting with Iraqi Prime Minister Haider al-Abbadi in Baghdad, Obama's envoy, according to a statement by the office of Abadi Ward to twilight News.

 

During the meeting, they discussed bilateral relations and the conduct of the battle for the liberation of Mosul, in addition to the situation in the region.

 

McCurck reiterated his country's support for Iraq in its fight against terrorism and other fields, congratulating the great victories achieved on the organization of a preacher, praising the ability of Iraqi forces in the battle, according to the statement.

[yota691]

Trump's envoy assured Abadi of his country's support for Iraq in its fight against terrorism   Editor Haider Majid - Saturday April 22, 2017 18:49           Alsumaria News / Baghdad US envoy to Iraq, Brett McCurk, assured Iraqi Prime Minister Haidar al-Abadi Saturday that the United States supports Iraq in its war against the Da'ash organization.   The Prime Minister's Office said in a statement received by Al-Sumerian News that Abadi met today with the US President's envoy for international coalition affairs, Brett McCurk, during which they discussed the strengthening of bilateral relations and the conduct of the liberation of Mosul, .     "McCork renewed his country's support for Iraq in its fight against terrorism and in other areas, and congratulated the great victories achieved by the terrorist gangs," the office said, praising "the ability of Iraqi forces to fight."   On Sunday, April 9, 2017, a US congressional delegation confirmed US support for Iraq in its fight against "terrorism".

[ChuckFinley]

Old photo, still think that guy is asking if it is going 1 to 1.  

[yota691]

Abadi discussed with the envoy of the US President for International Alliance Affairs the latest developments in the battle of Mosul

By Roudao 6 hours ago

Abadi receives Bret McCurck, the US president's envoy for international coalition affairs

Roudao - Erbil 

Search Iraqi Prime Minister, Haider al - Abadi, on Saturday, with Brett Macgork, envoy of the US President for the conduct of the international coalition fighting against the "Islamic State", Daesh, in the city of Mosul. 

A statement by the Iraqi government said that Abadi "received the envoy of the US President for International Alliance Affairs, Brett McGork, and discussed the strengthening of bilateral relations between the two countries and the conduct of the battle to liberate Mosul and the situation in the region." 

According to the statement, McGourke "renewed the support of the United States of America in Iraq in its war against terrorism, and in other areas, and congratulated the great victories achieved by the terrorist gangs and the ability of Iraqi forces in the battle." 

The US authorities did not issue a statement on the matter until 1730 GMT. 

The Iraqi forces in the anti-terrorism of the liberation of the second district of health in the city of Mosul, on Saturday, while the federal police forces were able to penetrate the old city in Mosul from four axes in the brick door by the Tigris River, and Bab al-Jadid from the Baghdad garage, A bar of milk west of the city, and in the district of the revolution towards the Zanjili area. 

Iraqi forces are trying to storm the area of Jami` al-Nuri, the last stronghold of the major organization in the old city of Mosul, but the spread of sniper organization and car bombs prevent the resolution of the battle for the benefit of Iraqi forces.

[yota691]

Trump envoy in Baghdad to discuss the war on the "urging"

By Roudao 2 hours ago

US Ambassador to Iraq Donald Trump meets Iraqi Foreign Minister Ibrahim al-Jaafari

Roudao - Erbil 

Search Brett Macgork envoy of US President Donald Trump international coalition in Baghdad, developments of the war on the organization of "Daesh" during his meeting on Saturday with Iraqi Foreign Minister Ibrahim al - Jaafari. 

"The Secretary of State reviewed with the Special Envoy of US President Donald Trump, the International Alliance to Combat Da'ash, which is loaded with political and security developments, and the war against terrorist gangs," Jaafari's media office said in a statement. 

Jaafari called for "the concerted efforts of the international community and contribute to the reconstruction of infrastructure after the elimination of terrorism and the opening of areas of joint cooperation between the two countries." 

For his part, Brett Macgork stressed on the sidelines of the meeting , the continued support of Iraq even eliminate the organization Daesh, "according to the statement. 

A source at the Iraqi Foreign Ministry, in a press statement, preferring anonymity as not authorized to speak to the media that" Macgork will be several other meetings leaders of Iraqi politicians to discuss the restoration of stability in the liberated areas, and post - Daesh. " 

the source added that" Macgork will meet with US military commanders in Iraq to discuss the role of the alliance in the coming tasks , especially, and the city of Mosul will be announced soon liberated from the control of Daesh. " 

leading US United Nations has an international alliance of more than six 0 state provides air cover for Iraqi forces and other allies in Syria within the framework of the war aimed to defeat the organization "Daesh" in the two countries, as authorized by Washington , with the participation of hundreds of US military experts and advisers. 

US President Donald Trump has pledged during his election campaign last year to step up the pace of the war against "Daesh" but has not yet taken any concrete steps. 

locked Iraqi security forces , with the support of the international coalition running battles since October / October 2016 to restore the city of Mosul from "Daesh".

[yota691]

 April 23, 2017 |  2:06 PM  Jaafari to the US envoy: the need to activate the strategic framework agreement signed between Baghdad and Washington Foreign Minister Ibrahim al-Jaafari discussed with the special envoy of US President Donald Trump and the international coalition to fight the "Brett McGork" the comprehensive security developments and the great victories achieved by Iraqis in their war against terrorist gangs and international efforts to support security, Stability of the region.  Al-Jaafari said in a statement quoted by the Foreign Ministry's press office that "all Iraqis have united to defend Iraq's sovereignty and eliminate terrorism." He reiterated the necessity of concerted efforts by the international community and contributing to the reconstruction of the infrastructure. After the eradication of terrorism, and the adoption of a project similar to the Marshall Plan, which contributed to the construction of Germany after the Second World War. Jaafari pointed to the importance of activating the strategic framework agreement signed between Baghdad and Washington because of its great impact on opening up the fields of joint cooperation between the two countries and that Iraq is committed to bilateral relations with all the countries of the world and neighboring countries in particular, based on exchanging common interests and facing risks. Common, and non-interference in internal affairs. For his part, the envoy stressed the continued support of Iraq until the elimination of terrorist gangs, praising the efforts of the Iraqis in their war against terrorism and the diplomatic openness witnessed by the Iraqi relations with different countries of the world.

[copper13]

[Luigi1]

Luigi found this news article of Dinarian interest.

 

23 April 2017  Iraq News...

Iraq Asks USA For Post-War Reconstruction Fund.

Iraq’s foreign minister has asked the United States to develop a financial plan for the reconstruction of the country after ISIS, similar to a program developed for Western Europe after the Second World War.

In discussions with US Special Presidential Envoy to the coalition Brett McGurk, Ibrahim al-Jaafari stressed the need for “collective support from the international community to contribute to the reconstruction of infrastructure after the defeat of terrorism,” read a statement from the foreign minister’s office published after their meeting.

Jaafari suggested “the adoption of a project similar to the Marshall Plan which contributed to rebuilding Germany after the Second World War.  He emphasized activating the strategic framework signed between Baghdad and Washington,” the statement detailed.

The Marshall Plan, passed by Congress in 1948, saw the United States commit funds that eventually totaled over $12 billion (roughly $123 billion today) for the rebuilding of Western Europe ravaged by war.

The plan was adopted out of fear of Communist expansion amid economic hardship in the post-war years.

As a result of the Marshall Plan, Western European industrialization had a rebirth, bringing renewed investment into the region and, at the same time, stimulating the US economy as it created a market for American goods,

[boosterbglee]

Thanks Luigi!

[skeetdog]

Thanks Yota...

On 4/22/2017 at 7:22 AM, yota691 said:

A statement issued by al-Jaafari's office said that during the meeting, they reviewed the security, political and major developments achieved by Iraqis in their war against terrorist gangs and international efforts to support the security and stability of the region.

We know the dinar is getting very close when direct statements are being made about the major developments achieved by Iraqis...to support "security and stability" of the region...These are (were) the main concerns of the CBI in increasing the value of their dinar....

[ChuckFinley]

A skeetdog, it is coming.  With only a few things left to do they can not, well I guess they can, make anymore excuses.  Time is up.  

[ChuckFinley]

I can not see them talking about the Marshall Plan or more importantly asking for money if they were not close. 

[King Bean]

And how much has the US spent in military $$$ to get rid of ISIS, yet they have the b@lls to ask, in advance, for money to rebuild?? How about all the money Maliki and his cronies stole, in the billions, sitting out of country. Make some effort, Iraq. Pull up your big boy pants and go after these thieves. Or we will send President Davis of Ottawa over there to kick some butts.

                              

[10 YEARS LATER]

14 minutes ago, King Bean said:

And how much has the US spent in military $$$ to get rid of ISIS, yet they have the b@lls to ask, in advance, for money to rebuild?? How about all the money Maliki and his cronies stole, in the billions, sitting out of country. Make some effort, Iraq. Pull up your big boy pants and go after these thieves. Or we will send President Davis of Ottawa over there to kick some butts.

                              

This really chafes my A$$ - You said it KB - STILL with their hand out demanding more. This makes me FURIOUS . . . BLOOD BOILING IN MY TEMPLE       

[Luigi1]

2 hours ago, ChuckFinley said:

I can not see them talking about the Marshall Plan or more importantly asking for money if they were not close. 

 

Agree. Yet could it be a smoke screen to keep us all off guard as the RV comes in through the back door unannounced.

[ChuckFinley]

1 hour ago, Luigi1 said:

 

Agree. Yet could it be a smoke screen to keep us all off guard as the RV comes in through the back door unannounced.

Very possible, we are going to have to see how the rest of the week plays out.  

[DWS112]

Jaafari calls Trump envoy to activate the strategic framework agreement signed between Baghdad and Washington   April 23, 2017

Iraq's Foreign Minister Ibrahim al-Jaafari on Sunday called on US special envoy Donald Trump and the international coalition to fight Brett McGuck to activate the strategic framework agreement signed between Baghdad and Washington.
"Jaafari pointed out the importance of activating the strategic framework agreement signed between Baghdad and Washington because of its great impact on the opening of fields of joint cooperation between the two countries, and that Iraq is committed to bilateral relations with all countries of the world," the Foreign Ministry said in a statement, And the neighboring countries in particular; based on the exchange of common interests, and face common risks, and non-interference in internal affairs.
"The meeting included a review of the overall security, political and major victories achieved by the Iraqis in their war against terrorist gangs and international efforts to support the security and stability of the region," the statement said.
"All Iraqis unite to defend Iraq's sovereignty and eliminate terrorism, reiterating the necessity of concerted efforts by the international community, contributing to the reconstruction of infrastructure after the eradication of terrorism and adopting a project similar to the Marshall Plan that contributed to building Germany after the Second World War, .
For his part, the Special Envoy of US President Donald Trump, and the International Alliance to combat the continuation of support for Iraq until the elimination of gangs of terrorist advocates, praising the efforts of the Iraqis in their war against terrorism, and diplomatic openness in Iraq's relations with different countries of the world.

[ChuckFinley]

Activate the agreement you better worth something. We are not going to carry your a$$ internationally.  

[Officiallytook]

Is it me or have they been doing it awhile...

 

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