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Dollar Diplomacy
The USSR asked for a $6billion loan from the US. The US immediately imposed conditions of opening the Eastern European markets to US manufactured prodcuts. The Soviet's need for capital was made more desperate when the US terminated Lend-Lease in May 1945. A further request for a $1billion loan by the USSR was lost by the US State Department, further increasing the Soviet conviction that the US was unwilling to collaborate in postwar economic reconstruction. -
Dollar Diplomacy
The US also imposed the conditions of dropping trade barriers in Eastern Europe and compensation for US assets seized in Romania and Bulgaria on a request by the Soviets for a loan in August 1945. This led to the Soviet's refusal to join the International Monetary Fund (IMF) and the World Bank in December 1945- organisations which the US hoped would help reconstrict and create a new global economy. This marked the beginning of the economic divide. By June 1946, all negotiations over loans ended. -
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Yalta Conference
Stalin signed the Declaration of Liberated Europe which pledged free elections and democratic institutions. However, he only regarded in for public relations purposes. He saw the declaration as 'algebra' as compared to the practical arithmetic put forward by the percentages agreement of 1944. This cause Roosevelt to doubt for the first time in April 1945 the possibility of post-war cooperation with the Soviets. -
Atomic Diplomacy
US practiced atomic diplomacy at Potsdam where Truman offered Stalin information about the bomb in return for the reorganisation of Soviet controlled governments in Bulgaria and Romania. The Soviets were not intimidated but sped up their own atomic programme. The accelerated the start of a nuclear arms race that would charactertize the cold war. It also helped to further deepen the cracks in the Grand Alliance. -
Soviet's actions in Korea
Soviet troops moved across the Russian border into north korea to take over from the Japanese. US quickly sent troops to occupy South Korea. Soviet did not respond, and this reflected Soviet's attitude at that point in time of their willingness to cooperate. -
American's reaction to Soviet's actions in Manchuria
50000 US Marines were sent to North china to secure key communications centres, road, rail routes & help transport KMT armies to the area. This shows Soviet's aggression, and this also caused severe implications on the levels of trust the US had with the USSR. -
Kennan's Long Telegramme
His analysis of Soviet's foreign policy emphasized the role of communist ideology. He saw the Soviet leadership as suspicious and aggressive. This was the decisive factor in the Truman administration's change of course to a policy of firmness towards the USSR. -
Churchill's Iron Curtain Speech
This hardened the attitude of the American public. Stalin had no follow-up action, but only called Churchill a warmonger and accused him of trying to start WW2. -
Clifford-Elsey Report
This reflected the US perception of the USSR which had crystallised by this point in time as a justification for the US perspective of the Soviets. -
Baruch Plan
The Plan concerned the frequent inspection of atomic energy installations in UN member states part of the effore to regulate atomic energy, however, it allowed the retaining of American atomic capability. This shows US' insincerity in cooperating with the Soviets as seen by how they designed the Plan to be unacceptable to the Soviets. -
Truman Doctrine
Truman doctrine laid the foundation for the formulation of the Marshall Plan in June 1947. -
Marshall Plan
The plan aimed to contain communism and create a captive European market for American goods. The initial willingness of the soviets to cooperate at this point in time is highlighted by the sending of a 100-man delegation headed by Molotov, to participate in the discussion about the plan. However, the American insistence of economic coordination which meant which meant that the soviets would have to give up exclusive control, was unacceptable to the ussr. -
Marshall Plan
Soviet saw the plan as an attempt to create an American economic empire in Eastern Europe. The marshall plan cemented the economic schism in Europe. The Russians ensured that the Eastern European countries did not participate in it and instead produced their own version of the Marshall plan- the Molotov plan. This effectively divided Europe into 2 economic blocs. -
Berlin Blockade
The blockade came close to the first armed clash between the two sides and represented a point where the Cold War might have turned hot. It also increased the feeling of military insecurity in northern, western and southern Europe. There was pressure for a common military force to defend the region and can be argued to have contributed to the formation of North Alantic Treaty Organisation (NATO) in 1949. The blockade ended any hope of agreement between east and west over Germany.