After the end of World War II, the capitalist countries in Western Europe were on the verge of economic paralysis and urgently needed external financial assistance to resume production. On the one hand, due to the intensification of class contradictions, and the socialist former Soviet Union's heroic fight against German fascism in World War II, its influence was increasing day by day, and it was possible for Western European countries to introduce the socialist system. Therefore, in order to control Western Europe politically and economically to counter the former Soviet Union and eventually dominate the world, the United States.
With the approval of US President Truman, US Deputy Secretary of State Acheson instructed the the State Council-War Department-Admiralty Coordination Committee to draft a "Greater Europe Plan" with the assistance of the Ministry of Finance on March 5, 1947; At the same time, a foreign aid committee was set up in the State Council to draft a memorandum stating the State Council's views. At the end of April and the beginning of May, the two teams successively submitted preliminary reports, suggesting to formulate a comprehensive foreign aid plan, emphasizing the consideration of Europe as a whole and attaching importance to Germany's role in European rejuvenation.
The next day, he instructed Kennan's policy design committee to put forward specific proposals for a comprehensive study of American aid to Europe.
On May 23rd, the Policy Design Committee chaired by Kennan presented a report, which analyzed the relationship between "European Renaissance" and "Truman Doctrine" from the perspective of American global strategy. In view of the explicit ideological color of Truman Doctrine, the Kennan report emphasized that "American efforts to help Europe should not aim at fighting against * * * capitalism itself", and the United States could not take the lead on a global scale as promised in the President's address.
On July 12th, 1947, the European Economic Conference was held in Paris as scheduled. The meeting was attended by 16 countries, including Britain, France, Austria, Belgium, Denmark, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Sweden, Switzerland and Turkey. Franks is the chairman. During the meeting, American Assistant Secretary of State Clayton, Ambassador to France caffery, Ambassador to Britain Douglas, Political Adviser to the High Commissioner in Germany Murphy and others kept "consulting" with Franks and the Executive Committee, and reviewed all the reports drafted by the Paris Economic Conference in advance, indicating that western European countries must act according to the requirements of the United States. However, Western European countries have their own demands. In the draft report they drew up at the end of August, they asked the United States for $28.2 billion in aid, which the United States thought was wild speculations and could not be realized at all. Under the pressure of the United States, western Europe has to cut the amount of aid again and again. The United States also stressed that in order to obtain the consent of the US Congress, "the US government should reserve the right to approve the use of peer-to-peer funds". Western European countries, which were heavily dependent on American aid at that time, had to submit to American demands on many issues.
On September 22nd, representatives of 16 countries signed the general report of the European Economic Cooperation Committee, which was vague about the cooperation scope of the European Reconstruction Plan, but only expressed the willingness of participating countries to cooperate with each other. In view of the pressure from the United States, the report stipulates four principles of the plan: "First, all participating countries strive to develop production, especially to modernize agriculture, fuel and power, transportation and equipment; Second, establish and maintain domestic financial stability as an important condition for making full use of European production and financial resources; Third, develop economic cooperation among participating countries; Fourth, take measures to solve the deficit between participating countries and the American continent. " Finally, the general report requested the United States to provide $22.4 billion in aid within four years.
on December 19th, 1947, Truman formally submitted a message to the National Assembly on "American Support for European Renaissance Plan", demanding that 17 billion US dollars be allocated in 1948-1952, and 6.8 billion US dollars be allocated in the first 15 months, and that the Prime Minister of the Economic Cooperation Department be established.
In 1948, amid the uproar against "the former Soviet Union threatened Europe", Congress passed the Foreign Aid Act of 1948 on April 2. The next day, signed by Truman, Marshall Plan was formally implemented.
according to the foreign aid law of 1948, the amount of Marshall plan should be examined and approved year by year, and the total amount for a period of four years is not determined. The government proposed to allocate $6.8 billion for the first 15 months to $5.3 billion, but this is only the maximum amount, and the available funds must be determined by another appropriation law.
article 115 of the law stipulates that western European countries must sign multilateral or bilateral agreements with the United States to obtain assistance. Participating countries must provide economic statistics and allow the United States to exercise some control over its internal budget. Recipient countries must also undertake certain specific obligations, such as cooperation with other countries to promote trade; Take necessary financial and monetary measures to stabilize the currency; Determine or maintain an effective foreign exchange rate; Once conditions are ripe, the government budget will be balanced immediately, and the credibility of the monetary system will be fully restored or maintained. In order to protect the American economy, the law stipulates that the use of surplus materials from the United States is encouraged, the purchase of scarce materials is prohibited, the allocation of materials is promoted to meet the needs of the United States, and agricultural products from outside the United States are not allowed.
after the foreign aid law was passed by the U.S. congress, the representatives of 16 western European countries and the military chiefs of the United States, Britain and France in Germany signed the convention on European economic cooperation on April 16, 1948, and decided to establish a permanent European economic cooperation organization. The organization set up a Council composed of all member States, with the Executive Committee and the Secretary-General and others to assist in its work, stipulating that the Secretary-General and staff members do not seek or accept instructions from any member state or any government or any government authority outside the organization. Belgian Prime Ministers Paul and Henry, who actively promoted European integration and received support from the United States? Spock was elected as the chairman of the board of directors, and the chairman of the executive Committee was Edmund? Hall? Sir patch took office, and another promoter of European integration, jean? Monet refused the post of secretary-general and recommended Robert? Marjolin took the post. From June to July, the participating countries successively signed agreements with the United States.
At that time, American aid to Britain had already been used up. Although France, Austria and Italy accepted "temporary assistance" of 5 million US dollars before April 1948 at the end of 1947, they were still in urgent need of aid, and the US dollar reserves of other countries were on the verge of exhaustion. Therefore, before the US Congress passed the first-year appropriation plan, the European Economic Cooperation Organization put forward the allocation for the first quarter (April-June, 1948) according to the requirements of the US Economic Cooperation Agency, and finally decided to allocate 1.39 billion US dollars and began to handle the allocation work. After the first year's aid to Europe was approved, the total planned allocation of the Economic Cooperation Agency was US$ 4.875 billion. The five countries that received the most aid were Britain (1.263 billion), France (989 million), Italy (61 million), West Germany (514 million) and the Netherlands (496 million). The way of aid implementation is that the US government allocates the money to the Economic Cooperation Agency through the budget, which purchases the "necessary" materials from American enterprises and then exports them to the recipient countries. The U.S. government credited this sum, together with labor costs including transportation fees, to a special account specially listed. After receiving this batch of materials, the recipient country will record the proceeds of sales in its own currency into a special account, which is the "equivalent fund" as stipulated in Article 115 of this Law. Recipient countries can only use 95% of the fund with the consent of the Economic Cooperation Agency to "stabilize domestic currency and finance or stimulate production". The remaining 5%, dominated by the United States, is used to buy the "short" materials in the United States, that is, to increase the storage of strategic resources in the United States. Most of the aid was provided as grants, and by the end of 1948, about one-fifth of the aid was provided in the form of loans. By June 1952, the United States Agency for Economic Cooperation had finished its work, and allocated $13.15 billion, of which about 1/1 was loaned.