1. The Cold War: Spheres of influence

2. Economic spheres of influence

3. USA: Containment Policy adopted by USA
To protect western Europe from communist threat
Policy of containment: to “contain” the spread of communism

4. USA’s containment
POLICY OF CONTAINMENT
Truman Doctrine
Marshall Plan

5. Truman Doctrine Announced in 1947 by president Truman
Reaction to events in Greece and Turkey
USA would send money, military equipment and advice to any country threatened by communist takeover
the basis of American foreign policy aimed at stopping the spread of communism

6. Marshall Plan
American economic aid to Europe to rebuild war-damaged economies
To destroy conditions under which the appeal of communism would spread
: $17 billion in Marshall aid
Recipients: France, Germany, Britain, etc.

7. Dollar Diplomacy
Conditions to Marshall aid: only countries with capitalist economies were eligible and they had to be willing to import American goods
Viewed by Stalin with suspicion – did not allow satellites to accept it
USSR saw it as dollar diplomacy
Increased divisions between east and west and tensions between superpowers

8. USSR: control Stalin did not allow satellites to accept Marshall aid
Set up his own post-war systems and organisations

9. Cominform Communist Information Bureau
Introduced in 1947 in reaction to Truman Doctrine
to co-ordinate communist parties in Eastern Europe (control over satellites)
Independent-minded leaders replaced by those loyal to Stalin
Communist parties in France and Italy also members

10. Comecon Council for Mutual Economic Aid Formed in 1949 USSR dominated
Communist countries outside Europe also included (Cuba, Vietnam)