The Marshall Plan

by Benn Steil

  35 Pechatnov and Edmondson (2001:121).

  36 Beisner (2006:167–71); State Department, policy statement, December 1, 1949, in FRUS, 1949, V: 443; National Security Council, policy statement, “The Position of the United States with Respect to Scandinavia and Finland,” NSC/121, January 8, 1952, in FRUS, 1952–1954, VIII: 755.

  37 Beisner (2006:167).

  CHAPTER 10: PASSAGE

  1 Francis Wilcox and Thorsten Kalijarvi, interview with Harry B. Price, August 8, 1952, Folder: “August–December, 1952,” Box 1, Oral History Interview File, Price Papers, Truman Library.

  2 New York Times (April 22, 1951).

  3 Congressional Record, 80th Congress, 2nd Session, XCIV, 1948: 1915–20. A video clip of the speech is here: https://www.youtube.com/watch?v=9Z0BxDeKtrQ (British Pathé [April 13, 2014]).

  4 Gallup (March 3, 1948).

  5 Marshall, interviews with Harry B. Price, October 30, 1952 and October 12, 1954, reproduced in Price (1955:65). See also Reston’s interesting profile of Vandenberg as a politician: Reston (March 28, 1948).

  6 Untitled and undated memo, Folder: “France General,” Box 156, Foreign Affairs File, President’s Secretary’s Files, Truman Papers, Truman Library; Editorial Note in FRUS, 1948, II: 85–86.

  7 Douglas to Marshall, March 1, 1948, in FRUS, 1948, II: 107. Lovett heartily concurred with Douglas’ tactics, authorizing “Douglas to indicate to the French that the United States was unprepared to undertake any commitments as to shipments to the French zone under ERP unless and until we obtain a clear idea as to the French position on German policy, in particular coordination of their zone with Bizonia.” Jacob D. Beam, memorandum of telephone conversation, “Telephone Conversation with London regarding German Discussions,” March 2, 1948, in FRUS, 1948, II: 112.

  8 V. Treskov, informational memorandum, “The Foreign Trade of the USA and West European Nations Under the ‘Marshall Plan,’ ” August 7, 1948, AVP RF, Fond 046, op. 8a, P. 74a, file 2, p. 18.

  9 Khrushchev (1971:191).

  10 Memo recipient was Lieutenant General Stephen J. Chamberlin. See Murphy to Marshall, March 3, 1948, in FRUS, 1948, II: 878.

  11 Kennan I (1967:400); Gaddis (2011:305).

  12 Lippmann (March 15, 1948).

  13 See, for example, Hanhimäki (1997).

  14 Lippmann (March 16, 1948).

  15 Reston (March 14, 1948).

  16 Reston (March 26, 1948).

  17 The Essays on the History of Russian Foreign Intelligence, V: 558–65; British Embassy to State Department, March 11, 1948, in FRUS, 1948, III: 46–48; Marshall to Lord Inverchapel (Sir Archibald Clark Kerr), March 12, 1948, in FRUS, 1948, III: 48. Kennan I (1967:400–402); Millis (1951:387); Harrington (2012:42–43); Clay to Stephen J. Chamberlin, March 5, 1948, in Smith II (1974:568–69); Smith (1978:75–76); Smith (Winter 1988:34); Smith (1990:467); Isaacson and Thomas (1986 [2012]:440).

  18 Interview with Acheson (and Earle), Reel 2, July 2, 1953, Folder: “July 2, 1953 [2 of 2],” Box 79, Princeton Seminars File, Acheson Papers, Truman Library: 17.

  19 Kuhn (February 29, 1948).

  20 Belair (March 17, 1948).

  21 Lippmann (March 22, 1948).

  22 Interview with Harriman (and Acheson), Reel 4, Track 2, October 10, 1953, Folder: “October 10–11, 1953,” Box 80, Princeton Seminars File, Acheson Papers, Truman Library: 10.

  23 Lord Inverchapel (Sir Archibald Clark Kerr) to Marshall, “Summary of a Memorandum Representing Mr. Bevin’s Views on the Formation of a Western Union,” January 13, 1948, in FRUS, 1948, III: 5.

  24 Lippmann (April 5, 1948); Lippmann (December 4, 1947).

  25 John D. Hickerson to Marshall, memorandum, January 19, 1948, in FRUS, 1948, III: 6–7.

  26 Josiah Marvel, Jr., to Marshall, March 12, 1948, in FRUS, 1948, III: 51.

  27 “Paraphrase of a Telegram from Bevin of April 9th Regarding Recent Talks on North Atlantic Security Arrangements,” undated, in FRUS, 1948, III: 79–80.

  28 Marshall to the U.S. Embassy in London, February 28, 1948, in FRUS, 1948, II: 101.

  29 Douglas to Marshall, March 2, 1948, in FRUS, 1948, II: 111.

  30 Bidault to Marshall, March 4, 1948, 840.20/3-448, RG 59, National Archives.

  31 Lovett, memorandum of conversation with Inverchapel, January 27, 1948, in FRUS, 1948, III: 13; John D. Hickerson, memorandum of conversation with Lovett and Inverchapel, February 7, 1948, in FRUS, 1948, III: 22; John D. Hickerson to Marshall, memorandum, March 8, 1948, in FRUS, 1948, III: 40–41.

  32 George H. Butler (PPS), memorandum, “Points for Discussion at S/P Meeting March 19, 3 P.M.,” March 19, 1948, in FRUS, 1948, III: 59. Italics in original.

  33 Minutes of the Second Meeting of the United States–United Kingdom–Canada Security Conversations, March 23, 1948, in FRUS, 1948, III: 65.

  34 Minutes of the Third Meeting of the United States–United Kingdom–Canada Security Conversations, March 24, 1948, in FRUS, 1948, III: 66. Minutes of the Sixth Meeting of the United States–United Kingdom–Canada Security Conversations, April 1, 1948, in FRUS, 1948, III: 71–75; Gaddis (2011:307).

  35 Semen Kozyrev and Constantine Zinchenko, “Five-nation treaty on the Western Union, signed in Brussels on March 17, 1948 (brief analysis),” March 23, 1948, AVP RF, Fond 07, op. 21, P. 33, file 497, p. 1.

  36 “The German question in the relation between the USSR, USA, Britain and France. A survey, Part 3,” in The USSR and the German Question 1941–1949, III: 661 (citing AVP RF, Fond 048z, op. 11zh, P. 70, file 17, p. 435); Narinsky (1996:63); Smirnov to Molotov, March 12, 1948, in The USSR and the German Question 1941–1949, III: 601.

  37 Narinsky (2011:164–65); Harrington (2012:43–45); Narinsky (1996:65); Laufer and Kynin III (2004:546); Harris (Spring 1967:12–14) in RG 263, National Archives; Berlin airgram A-247, March 29, 1948, 862.00B/3-2948, RG 59, National Archives; Khrushchev (1971:191).

  38 Record of Stalin’s conversation with Pieck and Grotewohl, March 26, 1948, RGASPI, Fond 558, op. 11, file 303, p. 34 (the whole record, pp. 24–52); Naimark (1995:307).

  39 Narinsky (1996:62), citing Dratvin and Semenov to Molotov and Bulganin, cable, April 17, 1948, Arkhiv Prezidenta Rossiiskoi Federatsii, Fond 3, op. 64, file 789, p. 25.

  40 Murphy to Marshall, April 6, 1948, in FRUS, 1948, II: 890–91.

  41 Narinsky (1996:62), citing Dratvin and Semenov to Molotov and Bulganin, cable, April 17, 1948, Arkhiv Prezidenta Rossiiskoi Federatsii, Fond 3, op. 64, file 789, p. 23.

  42 Narinsky (1996:62), citing Dratvin and Semenov to Molotov and Bulganin, cable, April 17, 1948, Arkhiv Prezidenta Rossiiskoi Federatsii, Fond 3, op. 64, file 789, p. 24.

  43 Gaddis (2011:310).

  44 Gaddis (2011:321); Kennan I (1967:405–8).

  45 Kennan, “Comments on the General Trend of U.S. Foreign Policy,” August 20, 1948, Folder 53, Box 163, State Department File, Organizations, Kennan Papers, Mudd Library, Princeton University.

  46 Kennan, National War College lecture, “Soviet Diplomacy,” October 6, 1947, Folder 41, Box 298, Unpublished Works, Writings, Kennan Papers, Mudd Library, Princeton University.

  47 Isaacson and Thomas (1986 [2012]:449).

  48 Isaacson and Thomas (1986 [2012]:447); Bohlen (1973:267).

  49 Middleton (March 28, 1948).

  50 Arkes (1972:110–11); Congressional Record, 80th Congress, 2nd Session, XCIV, 1948: 2539, 2025, 2038, 2782–83.

  51 Washington Post (December 12, 1947); Kuhn (March 9, 1948); Wall Street Journal (March 9, 1948).

  52 Belair (March 13, 1948).

  53 Kuhn (March 25, 1948).

  54 Central Intelligence Agency, “The Current Situation in Italy,” October 10, 1947, Folder: “O.R.E [Office of Reports and Estimates]: 1947: 44–54,” Box 216, Central Intelligence Reports File, Intelligence File, President’s Secretary’s Files, Truman Papers, Truman Library.

  55 Truman, “Special Message to the Congress on the Threat to the Freedom of Europe,” March 17, 1948, in Public Papers of the Preside
nts: Harry Truman, 1948.

  56 Edwards (March 26, 1948).

  57 Walz (March 29, 1948).

  58 Reston (March 23, 1948).

  59 Laurence Steinhardt to Marshall, April 30, 1948, in FRUS, 1948, IV: 754.

  60 John D. Hickerson to Lovett, March 8, 1948, in FRUS, 1948, III: 390–91. Belair (April 1, 1948).

  61 Byrnes (June 1999); Daly (2009); Reston (March 31, 1948); Tower (February 29, 1948); Congressional Record, 80th Congress, 2nd Session, XCIV, 1948: 4034–36; Howard Piquet, interview with Harry B. Price, February 10, 1953, Folder: “January–June 1953,” Box 1, Oral History Interview File, Price Papers, Truman Library.

  62 Hinton (April 4, 1948); Behrman (2007:161); Hoffman, interview with Harry B. Price, January 28, 1953, Folder: “January–June, 1953,” Box 1, Oral History Interview File, Price Papers, Truman Library; Willard L. Beaulac to Lovett, April 4, 1948, in FRUS, 1948, IX: 31–32; Fenwick (July 1948).

  63 The Economist, “Unsordid Act,” April 10, 1948, quoted in Douglas to Marshall, April 13, 1948, Folder: “Telegrams: London [England]: Winant,” Box 166, Foreign Affairs File, Subject File, President’s Secretary’s Files, Truman Papers, Truman Library.

  64 Warren (April 6, 1948).

  65 New York Times (April 6, 1948).

  66 The Socialists and Communists polled 20.7 percent and 18.9 percent respectively in the 1946 election; they ran as a coalition in 1948. Furlong (2002:16).

  67 Behrman (2007:164, 175–77); Kennan, interview with Harry B. Price, February 19, 1953, Folder: “January–June, 1953,” Box 1, Oral History Interview File, Price Papers, Truman Library.

  68 Policy Planning Staff, memorandum, May 4, 1948, in FRUS, Emergence of the Intelligence Establishment: 1945–1950: 668–72; Thompson (2009:83–84).

  69 Raucher (1986:68); Whitman (October 9, 1974); Busch (April 4, 1949).

  70 Life (May 10, 1948); Richard W. B. Clarke, interview with Harry B. Price, November 10, 1952, Folder: “November 1–November 10, 1952,” Box 1, Oral History Interview File, Price Papers, Truman Library; Hoffman, interview with Philip C. Brooks, October 25, 1964, Oral History Interviews, Truman Library; Behrman (2007:173–74, 177–78, 183).

  71 Huempfer (2016).

  72 Behrman (2007:174, 184–85, 208); Duchene (1994:171–72); ECA (1948:54), First Report to Congress.

  73 “La 5e Colonne américaine en France” = the American fifth column in France. Price (1955:85); Behrman (2007:188–89, 197); New York Times (June 27, 1948); MacCormack (May 2, 1948).

  74 Swanson (1976:125).

  CHAPTER 11: SHOWDOWN

  1 Policy Planning Staff, report, “Review of Current Trends: U.S. Foreign Policy,” PPS/23, February 24, 1948, in FRUS, 1948, I: 522–23.

  2 Marshall (approved by Lovett) to Smith, urgent telegram, undated 1948, Folder: “Russia [7 of 8],” Box 15, Subject File, Clifford Papers, Truman Library.

  3 “Molotov’s reception of Romanian Ambassador [Iorgu] Iordan, October 3, 1947, 3:00 PM,” AVP RF, Fond 06, op. 9, P. 2, file 23, p. 14.

  4 The Essays on the History of Russian Foreign Intelligence, V: 551–56).

  5 Washington Post (August 11, 1961); New York Times (August 10, 1961); Middleton (March 16, 1947); Beevor (October 23, 2010).

  6 Smith to Marshall, telegram, marked with a circled “3,” May 10, 1948, Folder: “Russia [7 of 8],” Box 15, Subject File, Clifford Papers, Truman Library. For the Soviet version of the conversations, see Record of conversation with the U.S. Ambassador W. B. Smith on the positions of the US Government on international problems and foreign policy of the USA, May 4, 1948, AVP RF, Fond 06, op. 10, P. 1, file 4, pp. 1–12, and Record of conversation with the U.S. Ambassador W. B. Smith on the state of Soviet-American relations, May 9, 1948, AVP RF, Fond 06, op. 10, P. 1, file 4, pp. 19–29. Kuhn (May 12, 1948).

  7 Pechatnov and Edmondson (2001:140).

  8 TASS statement, “On Soviet-American Relations,” May 11, 1948, Red Star 110, RGASPI, Fond 558, op. 11, file 387, pp. 44–45.

  9 Reston (May 12, 1948).

  10 State Department Weekly Review, Europe and the British Commonwealth: Smith-Molotov Exchange, undated, Folder: “Foreign Relations—Russia (1948),” Box 64, Subject File, Elsey Papers, Truman Library: 3.

  11 Douglas to Marshall, transcript of U.K. House of Commons questioning on the Smith-Molotov meeting, May 14, 1948, Folder: “Telegrams: London [England]: Winant,” Box 166, Foreign Affairs File, Subject File, President’s Secretary’s Files, Truman Papers, Truman Library.

  12 Gromyko to Molotov, memorandum of meeting with Wallace (with Stalin’s notations), April 21, 1948, RGASPI, Fond 558, op. 11, file 387, p. 6;– Pechatnov and Edmondson (2001:85).

  13 Gromyko to Molotov, memorandum of meeting with Wallace (with Stalin’s notations), April 21, 1948, RGASPI, Fond 558, op. 11, file 387, pp. 5–10; This memo was only made publicly accessible in Moscow in January 2016.

  14 These candidates included Truman, Dwight Eisenhower, Harold Stassen, Joseph Martin, and Wallace’s soon-to-be running mate, Glen Taylor.

  15 Gromyko to Molotov, memorandum of meeting with Wallace (with Stalin’s notations), April 21, 1948, RGASPI, Fond 558, op. 11, file 387, pp. 5–10.

  16 Gromyko to Molotov, memorandum of meeting with Wallace (with Stalin’s notations), April 21, 1948, RGASPI, Fond 558, op. 11, file 387, pp. 5–10; Moscow (May 12, 1948); Washington Post (May 12, 1948).

  17 National Council of American-Soviet Friendship (1948); Stalin’s response to Wallace’s letter (with handwritten notations in red pencil), April 27, 1948, RGASPI, Fond 558, op. 11, file 387, pp. 13–21.

  18 Durbrow to Marshall, May 18, 1948, in FRUS, 1948, IV: 870–71.

  19 Gaddis (2011:311–14); Kennan I (1967:346–47); Kennan to Marshall, May 12, 1948, Folder: “USSR 1946–1950,” Box 23, PPS Records, RG 59, National Archives; Kennan to Smith, June 18, 1948, Folder 2, Box 140, Miscellaneous Correspondence, Correspondence, Kennan Papers, Mudd Library, Princeton University; Kennan to Lovett, June 9, 1948, Folder: “USSR 1946–1950,” Box 23, PPS Records, RG 59, National Archives.

  20 Sedgwick (May 2, 1948); Thompson (2009:89).

  21 Harrington (2012:181–82); Garvy (1966:9–74); Thieme (1999:576–77); Schwartz (1954:469); Zwass (Fall/Winter 1978–1979: 12, 18–19); Zwass (1975:159).

  22 Steil (2013:273–74); Rees (1973:177, 189); Petrov (1967:122–23); Blum III (1967:180–81) Dietrich (2002); Harrington (2012:68–69).

  23 “On June 19, 1948, Lucky Strikes reached an all-time high, $2,300 a carton at the official exchange rate.” Barnet (1985:40).

  24 Frank Wisner to Lovett, March 10, 1948, in FRUS, 1948, II: 879–82.

  25 Phone cable from the chief commander of SVAG Marshal V. D. Sokolovsky and political adviser of SVAG V. S. Semenov to the Foreign Ministry of the USSR on the meeting of the Control Council, Berlin, March 20, 1948, AVP RF, Fond 06, op. 10, P. 43, file 583, pp. 1–2 (sent to Stalin, Molotov, Beria, Zhdanov, and others); Narinsky (1996:57–75).

  26 Narinsky (1996:66); Narinsky (2011:166), citing the resolution of the Council of Ministers of the USSR, “On conducting monetary reform in the Soviet occupation zone of Germany,” May 18, 1948, Arkhiv Prezidenta Rossiiskoi Federatsii, Fond 3, op. 64, file 789, pp. 33–35. Italics added.

  27 Washington Post (June 13, 1948); Warren (June 14, 1948).

  28 Smith (1990:486–89); Clay to Draper, June 15, 1948, FMPC-175, in Smith II (1974:678).

  29 Warren (June 17, 1948).

  30 Feigel (2016:305–6, 319).

  31 Editorial Note, “The Establishment of the Berlin Blockade,” in FRUS, 1948, II: 909.

  32 Murphy to Marshall, June 19, 1948, in FRUS, 1948, II: 910; Harrington (2012:71–72); Clay to Bradley, CC-4843, June 23, 1948, Folder: “AG 319.1 Transportation Situation Reports, vol. II, 1948,” Box 427, OMGUS AGO General Correspondence, RG 260, National Archives; Murphy to Marshall, June 21, 1948, in FRUS, 1948, II: 911–12; Narinsky (1996:66).

  33 Narinsky (1996:66); “The German question,” AVP RF, Fond 048/3, op.
11zh, P.70, file. 17, p. 454.

  34 Smith (1990:492); Clay to Royall, CC-4880, June 25, 1948, in Smith II (1974:675–78).

  35 Feigel (2016:301, 312); Sutherland and Canwell (2007:37); Narinsky (1996:66–67); Jean Ganeval to Bidault, June 24, 1948, Fonds 457, Carton AP-18, Private Archives of M. Georges Bidault, Archives Nationales; Bidault to Henri Bonnet, June 27, 1948, Fonds 457, Carton AP-18, Private Archives of M. Georges Bidault, Archives Nationales; M. Senin, “Memorandum on the Berlin question, 1950,” AVP RF, Fond 082, op. 37, P. 216, file 112, p. 21; Caffery to Marshall, June 24, 1948, in FRUS, 1948, II: 916–17; Hetzel (Winter 2002:27); Buchheim (1999:94); Clay (1950:364); Narinsky (1996:61, 66); Laufer (1999:80–84); Middleton (June 23, 1948); Morrow (June 24, 1948).

  36 Feigel (2016:319–20); James Riddleberger to Acheson, March 17, 1949, in FRUS, 1949, III: 693; Smith (1990:529).

  37 Recovery in the French zone, where decontrols were delayed, was slower (Giersch, Paqué, and Schmieding [1993:4–5]). Behrman (2007:201–2, 205–6); Smith (1990:483, 523); Clay to Byrnes, September 18, 1948, in Smith II (1974:858–60). Perhaps the best analysis of the currency reform, coauthored by a great economist who was also a Marshall Plan official, is Kindleberger and Ostrander (1998), in Folder: “ ‘The 1948 Monetary Reform in Germany’. . . ,” Box 9, Subject File, Kindleberger Papers, Truman Library.

  38 Feigel (2016:316); Beevor and Cooper (1994 [2004]:325); Harrington (2012:73–75); Howley (1950:198, 203); Raymond (June 25, 1948); Morrow (June 25, 1948).

  39 Declaration of the Ministers of Foreign Affairs of the USSR, Albania, Bulgaria, Czechoslovakia, Yugoslavia, Poland, Romania and Hungary, 1948.

  40 Gaddis (2011:328); Kennan to Frank Altschul, July 20, 1948, Folder 2, Box 140, Miscellaneous Correspondence, Correspondence File, Kennan Papers, Mudd Library, Princeton University.

  41 Ignatiev’s full first name is unknown. See D. Ignatiev, “Background for the ‘Marshall Plan’ and the revival of the military-industrial potential of West Germany,” December 31, 1948, AVP RF, Fond 046, op. 8a, P. 74a, file 2, pp. 143–54.

  42 Declaration of the Ministers of Foreign Affairs of the USSR, Albania, Bulgaria, Czechoslovakia, Yugoslavia, Poland, Romania and Hungary, 1948; Mastny (1996:48).