https://history.blog.gov.uk/2017/06/12/whats-the-context-us-secretary-of-state-proposes-a-marshall-plan-for-the-reconstruction-of-europe-5-june-1947/

What’s the Context? US Secretary of State proposes a ‘Marshall Plan’ for the reconstruction of Europe, 5 June 1947

Seventy years ago this week US Secretary of State George C. Marshall gave a speech at Harvard University in which he offered American aid to a destitute and fragile Europe if it proved willing and able to help itself. Britain, and in particular Foreign Secretary Ernest Bevin, took up the gauntlet by coordinating the necessary European response. As a result, between 1948 and 1950, the US channelled $12 billion into the European Recovery Programme. Britain received the lion’s share of $2.7 billion. The US offer and Soviet response set the emerging Cold War division of Europe.

George C. Marshall (third from left, front row) receiving an honorary degree at Harvard University, 5 June 1947. Also present is J. Robert Oppenheimer (far left, front row), wartime director of the Los Alamos Laboratory, often known as the “father of the atomic bomb." Source: commons wikimedia.org

Uniting Europe

In the months following the Truman Doctrine senior US officials, though empowered and emboldened by victory in the Second World War, became convinced that the economic recovery of Europe was crucial to US security. Europe was not just an important market for American goods and services; its unity and prosperity was a strategic necessity. The war- and winter-ravaged continent appeared susceptible to Communist contagion. Free and democratic capitalism was the prescribed prophylactic. In March, Marshall had told Bevin that ‘The United States were ready to pay a high price for the Unity of Europe’[1] and tasked George Kennan, Director of Policy Planning  at the State Department with figuring out ‘what could be done to promote world recovery’.

“We want coal, we want bread.” A demonstration in the city of Krefeld, North Rhine-Westphalia, Germany, during the exceptionally harsh winter of 1947. Commons wikimedia

However, tensions within the US administration (between State Department, Treasury and Pentagon) on how best to help Europe and combat Communism were exacerbated by Congressional elections in the preceding November. The results left a Democratic President with the uphill battle of getting approval for Marshall Aid through a Republican controlled Congress.

Europe divided

Believing, with some justification, itself to be the greatest victim and victor of the Second World War, the Soviet Union was determined to maintain its hard-earned Great Power status. Like the US, the Russians had their own designs for a Europe that would best serve Soviet prosperity and security: German reparations, commerce and technology for the Soviet Union, Communist or Communist-dominated rule in the East, and sympathetic governments in the West (most likely in unstable Italy, France and Greece). Its leadership saw the Marshall Plan as another example of Anglo-American capitalist expansionism; excluding them from European markets and resources, and denying them the right to spread their own version of liberty and Communist egalitarianism.

Laurence Steinhardt a Jan Masaryk
Jan Masaryk, Czechoslovak Foreign Minister, with Laurence Steinhardt, US Ambassador to Czechoslovakia, in 1947. Marshal Stalin summoned Masaryk to Moscow to berate him for his country’s acceptance of an invitation to a Paris Conference on the Marshall Plan which convened 12 July 1947. Both Czechoslovakia and Poland initially accepted the invitation to Paris but did not attend because of Soviet pressure. Commons Wikimedia.org

Consequently, at the Tripartite Foreign Ministers’ meeting in early July 1947, Soviet Foreign Minister Vyacheslav Molotov precluded Soviet involvement in the European recovery programme. He declared that it would put smaller states under the control of the Great Powers and divide Europe into two camps.[2] The Soviet leadership soon proved their own predictions by preventing the participation of their East European client states.[3] The creation of Cominform (Communist Information Bureau) in the autumn of 1947 and Comecon (Council for Mutual Assistance) in 1949 were direct responses to Marshall Aid. Their purpose was to coordinate an ideological assault by Communist parties upon the West and facilitate the economic development of the Eastern European countries of the Soviet bloc.

Britain at the helm

Bevin had been quick to act on Marshall’s bold and generous offer. Optimistic and pragmatic, he was determined to relieve Britain of its burden in occupied Germany and maintain Anglo-American solidarity for Western security in the face of Soviet encroachment and espionage which included an ever more evident desire to sabotage Marshall’s scheme. But Bevin was also fortunate that the experienced Georges Bidault returned as French Foreign Minister in January 1947. Together, sharing enthusiasm for economic cooperation in Western Europe, they ensured that American expectations of a united (West) European response to Marshall’s proposal were fulfilled. However, Commonwealth considerations meant that the Treasury and Board of Trade ensured that Britain resisted US pressure to form a Western European Customs Union.

Bevin was also helped by the intervention of John Snyder, US Secretary of the Treasury. In the summer of 1947 Snyder secured Congressional approval for the release of the final balance of the 1945 loan, untangling a knot that the US State Department had put into the Marshall Plan negotiations. British officials had left it too late to tell their US counterparts that they would have to break one of the key conditions of the loan, the convertibility of sterling, to avoid Britain’s financial ruin.

Photograph of participants in a conference aboard President Truman's yacht, the U.S.S. WILLIAMSBURG, (seated, left to...- NARA - 199026
Oliver S. Franks (third from left, standing), Baron Franks (1905-1992), with Prime Minister Winston Churchill and US President Harry S. Truman, and other high-ranking officials aboard the USS Williamsburg in 1952. After heading the British delegation in negotiations for Marshall Aid, Franks went on to become HM Ambassador to the US, 1948-52 and chairman of the Organisation for European Economic Cooperation, playing a central role in making the post-war world. Commons Wikimedia.org

British diplomacy and the drafting of the European Recovery Programme also owed much to a small coterie of first-rate administrators and negotiators, not least Oliver Franks. A philosophy don and Provost of Queen’s College Oxford, Franks was called upon to lead the British delegation and chair, with little official guidance, the Conference on European Economic Cooperation in 1947. This would transform Marshall’s offer into a joint programme for recovery - avoiding the potential pitfall of merely presenting a wish list to the US - eventually approved by Congress.

 

Europe Plan Marshall. Poster 1947
A 1950 poster produced by the US government’s Economic Cooperation Administration to promote the Marshall Plan in Europe. Commons Wikimedia

Britain’s post-war leadership in securing and unifying Western Europe would be short-lived. The Truman Doctrine and Marshall Aid relieved Britain of some of its post-war European responsibilities and so allowed it to concentrate on domestic reform and global commitments in particular Commonwealth commerce, and colonial development and security. In Europe, Britain ensured that the Organisation for European Economic Cooperation, set up to administer Marshall Aid, remained an intergovernmental rather than a supranational body, contrary to US hopes. It would be to France that the US would now turn to lead the integration of Western Europe.

 

Suggestions for further reading:

Documents on British Policy Overseas, Series I, Volume XI, European Recovery and the Search for Western Security (London: Routledge, 2017)

Alex Danchev, Oliver Franks: Founding Father (Oxford: Clarendon Press, 1993)


[1] Telegram from the British Embassy in Moscow reporting an informal conversation between Bevin and Marshall, 23 March 1947, printed in Documents on British Policy Overseas, Series I, Volume XI, No. 66

[2] Telegram from Tripartite Foreign Ministers’ meeting in Paris on Marshall initiative, printed ibid., No. 107

[3] Telegram from UK Delegation to the Economic Commission in Europe (Geneva), printed ibid., Nos. 113 and Telegram from the British Embassy in Paris reporting Czech Govt reversal of decision to attend Paris Conference, printed ibid., No. 116

 

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