The Marshall Plan Between 1948 and 1951, the Marshall Plan delivered an unprecedented $12.3 billion in U.S. aid to help Western European countries recover from the destruction of the Second World War, and forestall Communist influence in that region. The Marshall Plan: A New Deal for Europeexamines the aid program and its ideological origins, and explores how ideas about an Americanized world order inspired and influenced the Marshall Plan’s creation and execution. The book provides a much-needed re-examination of the plan, enabling students to understand its immediate impact and its political, social, and cultural legacy. Including essential primary documents, this concise book will be a key resource for students of America’s role in the world at mid-century. Michael Holm is Lecturer in History at Boston University. For additional documents, images, and resources please visit The Marshall Plan companion website at: www.routledge.com/cw/criticalmoments Critical Moments in American History Edited by William Thomas Allison, Georgia Southern University A full list of titles in this series is available at www.routledge.com/Critical- Moments-in-American-History/book-series/CRITMO. Recently published titles: The Homestead Strike Labor, Violence, and American Industry Paul E. Kahan The Flu Epidemic of 1918 America’s Experience in the Global Health Crisis Sandra Opdycke The Emergence of Rock and Roll Music and the Rise of American Youth Culture Mitchell K. Hall Transforming Civil War Prisons Lincoln, Lieber, and the Politics of Captivity Paul J. Springer and Glenn Robins The Battle of Fort Sumter The First Shots of the American Civil War Wesley Moody The WPA Creating Jobs and Hope in the Great Depression Sandra Opdycke The California Gold Rush The Stampede that Changed the World Mark Eifler Bleeding Kansas Slavery, Sectionalism, and Civil War on the Missouri-Kansas Border Michael E. Woods The Marshall Plan A New Deal for Europe Michael Holm First published 2017 by Routledge 711 Third Avenue, New York, NY 10017 and by Routledge 2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN Routledge is an imprint of the Taylor & Francis Group, an informa business © 2017 Taylor & Francis The right of Michael Holm to be identified as author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Library of Congress Cataloging in Publication Data CIP data has been applied for ISBN: 978-1-138-91570-1 (hbk) ISBN: 978-1-138-91571-8 (pbk) ISBN: 978-1-315-69008-7 (ebk) Typeset in Bembo and Helvetica Neue by Florence Production Ltd, Stoodleigh, Devon Contents Series Introduction vi List of Figures and Tables vii Acknowledgments viii Timeline xi Introduction xv 1 A New Deal for the World: American Plans for the Post-World War Two Order 1 2 The World America Made: Towards the Marshall Plan, 1945–1947 25 3 Creating the European Recovery Program, 1947–1948 51 4 The Marshall Plan in Action and the Emergence of European Unity, 1948–1951 83 5 Epilogue: The Marshall Plan and Memory 117 Documents 131 Notes 169 Bibliography 188 Index 200 Series Introduction Welcome to the Routledge Critical Moments in American Historyseries. The purpose of this new series is to give students a window into the historian’s craft through concise, readable books by leading scholars, who bring together the best scholarship and engaging primary sources to explore a critical moment in the American past. In discovering the principal points of the story in these books, gaining a sense of historiography, following a fresh trail of primary documents, and exploring suggested readings, students can then set out on their own journey, to debate the ideas presented, interpret primary sources, and reach their own conclusions—just like the historian. A critical moment in history can be a range of things—a pivotal year, the pinnacle of a movement or trend, or an important event such as the passage of a piece of legislation, an election, a court decision, a battle. It can be social, cultural, political, or economic. It can be heroic or tragic. Whatever they are, such moments are by definition “game changers,” momentous changes in the pattern of the American fabric, paradigm shifts in the American experience. Many of the critical moments explored in this series are familiar; some less so. There is no ultimate list of critical moments in American history— any group of students, historians, or other scholars may come up with a different catalog of topics. These differences of view, however, are what make history itself and the study of history so important and so fascinating. Therein can be found the utility of historical inquiry—to explore, to challenge, to understand, and to realize the legacy of the past through its influence on the present. It is the hope of this series to help students realize this intrinsic value of our past and of studying our past. William Thomas Allison Georgia Southern University Figures and Tables FIGURES 2.1 James Byrnes congratulates George Marshall 38 3.1 Europe in the Cold War era 58 4.1 The Berlin Crisis 86 TABLES 3.1 Table of aid breakdown from the Economic Corporation Act of the Foreign Assistance Act 77 Acknowledgments This book began from the conviction, in the words of one of the most influential public intellectuals of the twentieth century, that “what rules the world is ideas because ideas define the way reality is perceived.” Too often historians of American foreign relations have been uncomfortable with this reality, uncomfortable with ideas as significant factors in policy - making. This belief in the power and importance of ideas informed much of my doctoral research at Boston University and this book is, in many respects, a narrow spinoff of my earlier work on the impact of American ideology on foreign policy during the 1940s. As a result this volume, to a considerable extent, bears the mark of those esteemed intellectuals who have shaped my professional development thus far. Debating the power of ideas in mid-twentieth century U.S. foreign policy with brilliant minds such as Bill Keylor, Andy Bacevich, and David Mayers has been the experience of a lifetime. We may often have disagreed and pushed each other—sometimes perhaps to the brink—but they have all taught me to be a better critic, a better scholar, a better teacher, and, I hope, a more eloquent thinker. I have learned much from them but I would like to believe that, at times, my thinking may have challenged their perceptions of what constitutes and inspires America’s role in the world as well. If so, that is what the intellectual endeavor is all about. It is about the exchange of ideas to refine, recalibrate, and force new and interesting ways and prisms through which to perceive reality. The debt I owe to these gentlemen is immeasurable, as are the personal and professional ones that I have incurred to Boston University’s Louis Ferleger, Erik Goldstein, and Cathal Nolan for their constant and unwavering support of my academic pursuits. I owe much to my students as well. During my years of teaching history and international relations at Boston University, I have been fortunate to encounter cohort after cohort ACKNOWLEDGMENTS ix of remarkably gifted young individuals, all of whom, in one form or another, have been subjected to my research and my ideas in classroom discussions and through reading and writing assignments. The enthusiasm that so many of them brought, and continue to bring, to the classroom, their engagement, commitment, and pursuit of knowledge—all of it I find wonderfully inspirational. The list is too long to complete in full but a special thank you goes to Tyler Snyder, Liz Kelley, Samuel Baker, Natalie Armacost, Natalie Kaufman, James Klimas, Briana Vessells, Morgan Barry, Katie Rice, Annie Frantel, Tessa Steinert-Evoy, Aura Lunde, Elizabeth Cameron, Cristina Inceu, Colin Rosenow, Kristin Wagner, Hannah Cohen, Erin Shyr, and especially Marissa Comeau. Marissa took three of my courses on U.S. history at Boston University before graduating in the spring of 2015. Already as a student she demonstrated exceptional writing skills and, in conversations with me, Marissa several times voiced an interest in pursuing a career as an editor for an academic publishing house. As I began writing this book I therefore, quite naturally, turned to Marissa to enlist her assistance. She was the first to read through the present book manuscript and she provided the first round of edits. Her sharp pen and insightful mind helped turn the first draft into an actual book. I could not have completed this without her. Marissa, I am forever grateful. I hope we get to work together again. The opportunity to publish my first book with Routledge as part of the Critical Moments in American History series has been made all the easier by the incredible level of support I received from the start of the process. Early on, series editor Bill Allison pushed me to think about the Marshall Plan beyond the traditional narrative as did the anonymous reviewers who, with the critic’s potent pen, forced me to shift vantage points and think differently about my approach to the Marshall Plan as well as the inclusion of primary sources. At Routledge, I owe a great debt also to Genevieve Aoki and Dan Finaldi. Both worked dutifully and patiently with me, answered questions quickly and showed a real dedication to the project. Their support of the manuscript, in the acquisition of sources, and their incredible knowledge made this process smoother than I could have hoped for or even imagined. I cannot thank them enough for having taken on and backed this book with such dedication throughout the entire process. Such a level of help means the world, especially to a first-time author. Finally, to Judy, my fellow troublemaker—as always—thank you for your love, and patience throughout this last year of research and writing. Your support of my work nourishes me and keeps me healthy in ways you could not ever imagine. Your dedication to your own work, likewise, provides me with an inspiration that I will never be able to express in