Cold War & Recovery

1. Cold War & Recovery 1945-1968

2. Roots of Cold War • Teheran Conference, 1943: USSR guaranteed to be only power to liberate Eastern Europe • Yalta Conference, 1945: • Stalin pledged to allow democratic elections in E. Europe (but later reneged) • Germany would be divided into four zones controlled by U.S., France, Britain and USSR • After war, Soviets dominated their zone and did not allow reunification of Germany • Potsdam Conference, 1945: • Truman demanded free elections in Eastern Europe but Stalin refused • Stalin wanted a "buffer zone" between Germany and USSR for protection against future war

3. Roots of Cold War • U.S. point of view: • Stalin seemed intent on creating "spheres" of influence in Eastern Europe • Broke pledges at Yalta; refused to allow reunification of Germany • Churchhill's "Iron Curtain" speech in 1946 alerted Americans to a future conflict • U.S. wanted democracy spread throughout the world with a strong international organization to maintain global peace

5. Roots of Cold War • Soviet point of view: • Democracies traditionally hostile towards communism and the USSR • e.g., Archangel expedition during WWI; non-recognition by U.S. until 1933 • US & Britain did not open western front in Europe early enough; millions of Soviet soldiers were dying fighting the brunt of Nazi armies alone until mid-1944. • The US and Britain froze Russia out of the atomic bomb project. • US terminated lend-lease to Moscow in May 1945 but gave Britain aid until 1946. • Wanted "buffer zone" for the Soviet western border esp. in Poland

6. Partition of Germany • USSR, U.S., Britain & France would each occupy a part of Germany but would allow for German reunification once she was no longer a threat. • Germany was to pay heavy reparations to USSR in form of agricultural and industrial goods. • Soviets dominated their Eastern German zone • Did not want revitalized Germany that could once again pose a threat. • Stripped E. Germany of much of its resources.

7. Partition of Germany • U.S. and W. Europeans felt German economy vital to recovery of Europe • 1949, West Germany became an independent country when US, France and Britain gave back each of their zones • Federal Republic of Germany – led by Konrad Adenauer • 1949, East Germany formally established – Democratic Republic of Germany led by Walter Ulbricht (1883-1973); communist regime influenced by Moscow

9. "Containment" • By 1947, US pledged to prevent further spread of communism • Truman Doctrine, 1947: U.S. gave aid to Greece and Turkey to defeat communist forces there.

10. Marshall Plan • 1947: Massive aid package to help war-torn Europe recover from the war • Purpose: prevent communism from spreading into economically devastated regions • Result: Western and Central Europe recovered economically -- the "economic miracle" • Soviets refused to allow U.S. aid to countries in eastern Europe

13. Berlin Crisis(1948-49) • Soviets attempted to remove Allies from Berlin by cutting off access • One of high tension points of the Cold War; World War III? • U.S. instituted a massive airlift; Soviets lifted blockade in 1949 (Berlin Airlift)

15. More Containment • North Atlantic Treaty Organization (NATO) formed in 1949 • Collective security organization consisting of democracies in Europe, U.S. & Canada to prevent against Soviet expansion in Europe. • Radio Free Europe & Voice of America set up to send pro-democracy messages to countries behind the "iron curtain"

16. Eastern Bloc • Countries in Eastern Europe dominated by Soviet Union after WWII • Included Poland, Hungary, Czechoslovakia, East Germany, Rumania, Bulgaria • Communist parties of eastern Europe established one-party states by 1948, with help of Red Army and KGB (Soviet secret police) • Only Yugoslavia, led by Marshal Tito, is not dominated by Soviets • Postwar economic recovery in eastern Europe proceeded along Soviet lines. • Changes went forward at slow & uneven pace; came to almost a halt by the mid-1960s. • Five-year plans in USSR reintroduced to tackle massive economic reconstruction

17. Eastern Bloc • Stalin reinstitutes oppressive rule • Great Patriotic War of the Fatherland had fostered Russian nationalism and a relaxation of dictatorial terror. • Stalin’s new foe, the U.S., provided an excuse for re-establishing harsh dictatorship. • After war, Stalin repressed millions of Soviet citizens living outside Soviet borders when the war ended. • Stalin revived many forced labor camp, which had accounted for roughly 1/6 of all new construction in Soviet Union before the war • Culture and art were also purged

18. Czechoslovakia • Czechoslovakia the economic exception in E. Europe: industrialized, strong middle class and industrial working class and experience of political democracy between the wars. • During “dualist period", President Benes and Foreign minister Jan Masaryk proposed to govern a social democracy while maintaining close voluntary relations with the USSR. • In response to Marshall Plan in 1947, Stalin replaced gov’t in 1948 with 1-party communist rule to prevent nation from courting the West.

19. USSR under Nikita Khrushchev(1894-1971)

20. Khrushchev • Power struggle emerged after Stalin died in 1953; Khrushchev emerged a few years later • Stalin’s heirs realized reforms were needed. • Widespread fear and hatred of Stalin’s political terror resulted in reduction of power of secret police and gradual closure of forced labor camps. • Agriculture in bad shape. • Shortages of consumer goods. • Hard work and initiative in decline due to poor living conditions.

21. De-Stalinization • XXth Party Congress, 1956: Khrushchev took startling initiative against hard-liners by denouncing Stalin’s crimes in a closed session. • Secret anti-Stalin speech probably most influential statement in Russia since Lenin addressed the crowd on arriving in April 1917. • Gosplan: Resources shifted from heavy industry and the military toward consumer goods and agriculture – Centralized Economic Planning

22. De-Stalinization • Great ferment in the arts (anti-Stalinist views tolerated) • Boris Pasternak (1890-1960) wrote Dr. Zhivago in 1956. • Story of prerevolutionary intellectual who rejects brutality of revolution of 1917 & Stalinism; even as he is destroyed, he triumphs from his humanity and Christian spirit. • Aleksandr Solzenitsyn: One Day in the Life of Ivan Denisovich (1962) • Portrays in grim detail life in Stalinist concentration camp (he had been a prisoner)

23. De-Stalinization • De-Stalinization resulted in communist reformers and the masses seeking greater liberty and national independence. • Poland: March 1956, riots resulted in release of more than 9000 political prisoners, including previously purged leader Wladyslaw Gomulka. • Gomulka skillfully managed to win greater autonomy for Poland while keeping anti-Soviet feeling at bay.

24. Hungarian Uprising1956 • Students and workers in Budapest installed a liberal Communist reformer, Imre Nagy as new chief in October 1956. • Hungarian nationalists staged huge demonstrations demanding non-communist parties be legalized; turned into armed rebellion and spread throughout the country. • Hoped U.S. would come in and help achieve Hungarian independence

25. Hungarian Uprising1956 • Soviet tanks and troops responded by invading Hungary and crushing the national democratic revolution. • János Kádár installed firm communist rule • After Hungarian invasion, most eastern Europeans hoped for small domestic gains while obediently following USSR in foreign affairs.

26. Post-War Political and Economic Framework • Bretton Woods Conference (1944): created International Monetary Fund (IMF) • Lay foundations for modern monetary system; based on U.S. dollar • IMF (World Bank)designed to loan money to struggling countries to prevent economic crises and anarchy; instrumental in post-war economic boom. • United Nationscreated in 1945: Security Council (12 nations including 5 permanent members had powers to act; General Assembly had powers to advise (included all nations of the world)

27. Western Europe Political Recovery • Economic hardship after WWII: scarcity of food, runaway inflation, black markets • Many people believed Europe was finished. • Suffering was worst in Germany

28. Western Europe Political Recovery • Political restructuring • Christian Democrats inspired by common Christian and European heritage. • Rejected authoritarianism & narrow nationalism; had faith in democracy and cooperation. • Catholic parties also progressive in nature • Socialists and Communists also emerged with increased power and prestige, especially in France and Italy. • Pushed for social change and economic reform with considerable success. • Result: social reform and political transformation created foundations for a great European renaissance.

29. Western Europe Political Recovery - Italy • Christian Democrats gained control in 1946 led by Alcide De Gasperi • Socialist influence: social benefits came to equal a large part of the average worker’s wages

30. Western Europe Political Recovery - France • General Charles De Gaulle, inspiring wartime leader of Free French, re-established free and democratic Fourth Republic (resigned in 1949) • Catholic party provided some of best postwar leaders e.g. Robert Schuman • Socialist influence: large banks, insurance companies, public utilities, coal mines, and the Renault auto company were nationalized by gov’t. • Britain followed same trend

31. Western Europe Political Recovery - West Germany • 1949, Konrad Adenauer began long, highly successful democratic rule. • Christian Democrats became West Germany’s majority party for a generation

32. Western Europe Political Recovery – Great Britain • Clement Attlee, socialist Labour party leader, defeated Winston Churchill and the Conservatives in 1945. • Attlee moved toward establishment of a “welfare state.” • Many industries nationalized, gov’t provided each citizen with free medical service and taxed the middle and upper classes more heavily.

33. “Economic Miracle” • Unprecedented economic growth in European history • Europe entered period of rapid economic progress lasting into late 1960s. • By 1963, western Europe produced more than 2.5X more than before the war.

34. “Economic Miracle” • Causes: • Marshall Plan aid helped western Europe begin recovery in 1947 • Korean War in 1950 stimulated economic activity. • Economic growth became a basic objective of all western European governments. • Governments accepted Keynesian economics to stimulate their economies. • Germany and France were especially successful and influential. • In most countries many people willing to work hard for low wages; expanding industries benefited. • Increased demand for consumer goods. • Many economic barriers eliminated and a large unified market emerged: Common Market.

35. “Economic Miracle” • German economic recovery led by finance minister Ludwig Erhard • Combined free-market economy & extensive social welfare network inherited from Nazi era. • By late 1950s, West Germany had robust economy, full employment, a strong currency and stable prices.

36. “Economic Miracle” • France • Combined flexible planning and a “mixed” state and private economy to achieve most rapid economic development in its history. • Jean Monnet: economic pragmatist and architect of European unity. • France used Marshall Plan aid money and the nationalized banks to funnel money into key industries, several of which were state owned.

37. European Unity

38. Council of Europe:Created in 1948 • European federalists hoped Council would quickly evolve into a true European parliament with sovereign rights, but this did not happen. • Britain, with its empire and its “special relationship” with U.S., opposed giving any real political power—sovereignty—to the council.

39. Schuman Plan • 1950 created the European Coal and Steel Community • Put forth by French statesman Jean Monnet and Foreign Minister Robert Schuman. • Special international organization to control & integrate European steel and coal production. • West Germany, Italy, Belgium, Netherlands, & Luxembourg accepted in 1952; Britain refused to enter • Immediate economic goal: a single competitive market w/o national tariffs or quotas. • "The Six": By 1958 coal and steel moved freely among six nations of the European Coal and Steel Community • Far-reaching political goal: bind six member nations so closely together economically that war among them would become unthinkable and virtually impossible.

40. European Economic Community (EEC) • Treaty of Rome, 1957 • Created European Economic Community (EEC) or the Common Market • Signed by same six nations in the Schuman Plan – “the Six” • First goal of treaty: Gradual reduction of all tariffs among the Six in order to create a single market almost as large as the U.S. • Other goals: • Free movement of capital and labor. • Common economic policies and institutions. • Tariffs were rapidly reduced and regions specialized in what they did best.

41. European Economic Community (EEC) • EEC encouraged hopes of political and economic union. • Union frustrated in 1960s by resurgence of more traditional nationalism. • Euratom (European Atomic Energy Agency) also created by agency. • Communist states responded by forming their own economic association--COMECON

42. France Steps Back from European Unity • Bitter colonial war in Algeria resulted in the election in 1958 of General De Gaulle who established the Fifth French Republic and ruled as president until 1969. • Withdrew France from "US controlled" NATO and developed own nuclear weapons program. • De Gaulle twice vetoed application of pro-American British to European Union. • Britain did not inter until 1973.

43. Cold War in the 1950’s

44. Events • 1949, Communists in China led by Mao Zedong win Chinese revolution • Establish "Peoples Republic of China" ("Red China") • 1949, Soviets successfully test atomic bomb

45. Korean War 1950-1953 • After WWII, Korea divided at 38th parallel: North was communist, South was not • Cause: 1950, North Korea invaded South Korea (supported by Soviet resources) • UN (led by US & Gen. Douglas MacArthur) sent forces to push back communists • Soviets boycotting UN for U.S. refusal to allow "Red China" into UN Security Council • China sends hundreds of thousands of troops to push back UN • Result: cease-fire and border at 38th parallel restored; still in existence today

46. Korean War

47. Hydrogen Bomb • Developed by US in 1952 & USSR in 1953: world now has two superpowers

48. Warsaw Pact1955 • Collective security organization of eastern bloc nations to counter NATO. • U.S. policy of "massive retaliation" between 1953-55 • U.S. policy now is to help eastern European countries remove communism. • U.S. vows to destroy USSR with nuclear weapons if it tries to expand • Brinksmanship: the art of going to the brink of war to force the other side t back down.

49. Relations b/n USSR & U.S. Improve w/ Ascension to power of Nikita Khrushchev • Seeks “peaceful coexistence” with the West in order to focus on Soviet economy • Austrian Independence: USSR agreed in 1955 to real independence for a neutral Austria after 10 years of Allied occupation. • Resulted in significant reduction in cold war tensions between 1955 & 1957.

50. Relations b/n USSR & U.S. Improve w/ Ascension to power of Nikita Khrushchev • Krushchev sought to prove communism was superior to capitalism and the USSR would be the model communist state in the world; "we will bury you.” • Krushchev began wooing new nations of Asia and Africa with promises and aid, even if they were not communist. • Geneva Summit -- 1955 (July) • US meets with USSR, Britain, & France to begin discussions on European security and disarmament; no agreements made • 1958, relations sour with Khrushchev's ultimatum for Allies to leave Berlin: 6 month deadline passes without incident, extended indefinitely