Unit 2: The Cold War
Capitalism
• Any person should be free to start a business and employ people
• Any profit he or she makes is reward for hard work
• Average standard of living higher than under communism, but wide spread between
rich and the poor
• Opportunity for all
• A free economy
• Choice of many parties for government, chosen by the people (a democracy)
• Freedom of speech afforded – people can disagree with politicians
Communism
• No private person should be allowed to profit from the work from other citizens
• All profits, instead of going into the pockets of one owner or even shareholders, goes
to the state – everyone benefits
• Lower average standard of living but in theory everyone equal
• Fairness and equality for all
• A controlled economy
• Only one party for government, no need for anymore
• No freedom of speech – media can only print what the government allows
Yalta (February 1945)
• The ‘Big Three’ consisted of the leaders of the UK, the USA and the USSR – Winston
Churchill, Franklin D. Roosevelt and Joseph Stalin respectively
• They met in Yalta in Ukraine to agree what would happen in post-war Europe
• Churchill wanted to ensure the survival of the British Empire and saw the USSR as a
danger to the West that had to be stopped
• Roosevelt wanted the creation of a free world protected by the United Nations as a
peacekeeping body. He was prepared to work with Stalin and the USSR to do this
• Stalin sought the creation of a buffer zone within Eastern Europe between Western
Europe and the USSR to protect itself from any further attack – it was hoped these
countries would be controlled by communist governments friendly to Moscow
Agreements:
• Germany and Berlin would be divided into four separate zones to be occupied by the
armies of Britain, France, the USA and the USSR
• Germany would have to pay reparations
• The UN would be established
• The USSR would declare war on Japan within three months after Hitler was defeated
• Poland would have new borders (no agreement on its gov)
, • Eastern Europe would come under the influence of the USSR however free,
democratic elections would be held in these countries
Potsdam (July 1945)
The Big Three met again in July 1945 and by this time several changes had taken place:
• The war had ended in Europe and Hitler was dead
• Soviet troops were spread throughout Eastern Europe
• Plans were being made to return most US troops home
• Roosevelt had died and was replaced by Harry Truman – Truman was suspicious of Stalin’s
aims and his advisers urged him to take a harsh line against Stalin
• Churchill had been replaced by Clement Attlee as Britain’s Prime Minister during the
conference
• US and British attitudes towards the Soviet Union were hardening as they watched Germany
being stripped of its resources and puppet governments being set up in Eastern European
countries under Soviet occupation
• Stalin’s fear of the West increased when he was told the US had developed the atomic bomb
and would not share the technology
Decisions made at Potsdam:
• How Germany would be divided and occupied, each power could only take reparations from
their own zone but not so much as to endanger lives of ordinary Americans
• The USSR could also take reparations from the British and US zones in exchange for
supplying food, fuel and raw materials
• How Austria would be divided and occupied
• The changes of Germany’s border with Poland
The suspicions and tensions at Potsdam became the first ‘drop in temperature’ in what would
become the Cold War
Spread of Communism in Eastern Europe
By the end of 1945:
• The USSR and USA were both by far the strongest nations in the world
• Each feared the other wanted to spread their influence
• Each believed that the other wanted to destroy them – the USA feared the Red Army
and the USSR feared the atomic bomb
In March 1946 Churchill made a speech that condemned Stalin’s attempts to control Eastern
Europe – it was in this that the phrase ‘Iron Curtain’ was coined. Stalin reacted angrily and
argued the USSR was only protecting itself from invasion
Between 1945 and 1947 elections in Albania, Bulgaria, Hungary, Poland and Romania
resulted in communist governments being set up in these countries. The West suspected
these elections were rigged. Yugoslavia was already under communist control but its leader
Tito was less inclined to do what Stalin told him.
, Communism took control in these countries through certain trends:
• Soviet pressure that communists obtained key positions in the temporary puppet
governments set up after the war
• The suggestions of radical changes to help economic recovery, gaining popularity for
the communists
• Controlling/rigging the elections to ensure a communist victory
By the end of 1947 only Czechoslovakia was free from Communist control in Eastern Europe
(it would fall under communist control in February 1948)
The US viewed this differently and so this increased tension:
• America’s view was influenced by George Kennan (a US diplomat based in Moscow)
who argued the two superpowers could never live in peace and that the US must act
to contain the USSR’s ‘aggression’. This resulted in the policy of containment.
• The US failed to see the USSR was obsessed with its own security and suspicion, fear
and hostility were only increased
Truman Doctrine
After WW2, it was agreed that Greece would come under influence of the British and so the
Allies had agreed to fight a war against Greek communists. In March 1947 Britain
announced it could no longer support the war and looked to America for help. Truman
believed countries would become communist if they were poor and if economic recovery
took place they would not fall to communism and could trade with the US.
• Truman decided to ask Congress for help and said that rather than remain isolated,
the USA’s policy would now be to use military or economic means to stop the spread
of communism – through external invasion or internal revolution. This became
known as the Truman Doctrine.
• Congress released $400 million to stop the communist threat in Greece
Marshall Plan
• US Secretary of State George Marshall agreed and proposed an investment of $13.3
billion into Europe over a four-year period. This became known as the Marshall Plan
or Marshall Aid
• Initially Congress was reluctant and unconvinced but after the communist takeover
of Czechoslovakia in February 1948 it changed its mind.
• The two criteria were that these countries had to have their economic records open
for inspection and that they were willing to trade with the US and Western goods
• Sixteen countries, especially the UK and Allied parts of Germany benefited from the
Marshall Plan, overseen by the Organisation for European Economic Cooperation
Stalin described the Marshall Plan as ‘dollar diplomacy’ and argued the US would gain
influence over countries by controlling their economies. He rejected the offer of finance
and made sure all countries he controlled did the same by establishing:
Capitalism
• Any person should be free to start a business and employ people
• Any profit he or she makes is reward for hard work
• Average standard of living higher than under communism, but wide spread between
rich and the poor
• Opportunity for all
• A free economy
• Choice of many parties for government, chosen by the people (a democracy)
• Freedom of speech afforded – people can disagree with politicians
Communism
• No private person should be allowed to profit from the work from other citizens
• All profits, instead of going into the pockets of one owner or even shareholders, goes
to the state – everyone benefits
• Lower average standard of living but in theory everyone equal
• Fairness and equality for all
• A controlled economy
• Only one party for government, no need for anymore
• No freedom of speech – media can only print what the government allows
Yalta (February 1945)
• The ‘Big Three’ consisted of the leaders of the UK, the USA and the USSR – Winston
Churchill, Franklin D. Roosevelt and Joseph Stalin respectively
• They met in Yalta in Ukraine to agree what would happen in post-war Europe
• Churchill wanted to ensure the survival of the British Empire and saw the USSR as a
danger to the West that had to be stopped
• Roosevelt wanted the creation of a free world protected by the United Nations as a
peacekeeping body. He was prepared to work with Stalin and the USSR to do this
• Stalin sought the creation of a buffer zone within Eastern Europe between Western
Europe and the USSR to protect itself from any further attack – it was hoped these
countries would be controlled by communist governments friendly to Moscow
Agreements:
• Germany and Berlin would be divided into four separate zones to be occupied by the
armies of Britain, France, the USA and the USSR
• Germany would have to pay reparations
• The UN would be established
• The USSR would declare war on Japan within three months after Hitler was defeated
• Poland would have new borders (no agreement on its gov)
, • Eastern Europe would come under the influence of the USSR however free,
democratic elections would be held in these countries
Potsdam (July 1945)
The Big Three met again in July 1945 and by this time several changes had taken place:
• The war had ended in Europe and Hitler was dead
• Soviet troops were spread throughout Eastern Europe
• Plans were being made to return most US troops home
• Roosevelt had died and was replaced by Harry Truman – Truman was suspicious of Stalin’s
aims and his advisers urged him to take a harsh line against Stalin
• Churchill had been replaced by Clement Attlee as Britain’s Prime Minister during the
conference
• US and British attitudes towards the Soviet Union were hardening as they watched Germany
being stripped of its resources and puppet governments being set up in Eastern European
countries under Soviet occupation
• Stalin’s fear of the West increased when he was told the US had developed the atomic bomb
and would not share the technology
Decisions made at Potsdam:
• How Germany would be divided and occupied, each power could only take reparations from
their own zone but not so much as to endanger lives of ordinary Americans
• The USSR could also take reparations from the British and US zones in exchange for
supplying food, fuel and raw materials
• How Austria would be divided and occupied
• The changes of Germany’s border with Poland
The suspicions and tensions at Potsdam became the first ‘drop in temperature’ in what would
become the Cold War
Spread of Communism in Eastern Europe
By the end of 1945:
• The USSR and USA were both by far the strongest nations in the world
• Each feared the other wanted to spread their influence
• Each believed that the other wanted to destroy them – the USA feared the Red Army
and the USSR feared the atomic bomb
In March 1946 Churchill made a speech that condemned Stalin’s attempts to control Eastern
Europe – it was in this that the phrase ‘Iron Curtain’ was coined. Stalin reacted angrily and
argued the USSR was only protecting itself from invasion
Between 1945 and 1947 elections in Albania, Bulgaria, Hungary, Poland and Romania
resulted in communist governments being set up in these countries. The West suspected
these elections were rigged. Yugoslavia was already under communist control but its leader
Tito was less inclined to do what Stalin told him.
, Communism took control in these countries through certain trends:
• Soviet pressure that communists obtained key positions in the temporary puppet
governments set up after the war
• The suggestions of radical changes to help economic recovery, gaining popularity for
the communists
• Controlling/rigging the elections to ensure a communist victory
By the end of 1947 only Czechoslovakia was free from Communist control in Eastern Europe
(it would fall under communist control in February 1948)
The US viewed this differently and so this increased tension:
• America’s view was influenced by George Kennan (a US diplomat based in Moscow)
who argued the two superpowers could never live in peace and that the US must act
to contain the USSR’s ‘aggression’. This resulted in the policy of containment.
• The US failed to see the USSR was obsessed with its own security and suspicion, fear
and hostility were only increased
Truman Doctrine
After WW2, it was agreed that Greece would come under influence of the British and so the
Allies had agreed to fight a war against Greek communists. In March 1947 Britain
announced it could no longer support the war and looked to America for help. Truman
believed countries would become communist if they were poor and if economic recovery
took place they would not fall to communism and could trade with the US.
• Truman decided to ask Congress for help and said that rather than remain isolated,
the USA’s policy would now be to use military or economic means to stop the spread
of communism – through external invasion or internal revolution. This became
known as the Truman Doctrine.
• Congress released $400 million to stop the communist threat in Greece
Marshall Plan
• US Secretary of State George Marshall agreed and proposed an investment of $13.3
billion into Europe over a four-year period. This became known as the Marshall Plan
or Marshall Aid
• Initially Congress was reluctant and unconvinced but after the communist takeover
of Czechoslovakia in February 1948 it changed its mind.
• The two criteria were that these countries had to have their economic records open
for inspection and that they were willing to trade with the US and Western goods
• Sixteen countries, especially the UK and Allied parts of Germany benefited from the
Marshall Plan, overseen by the Organisation for European Economic Cooperation
Stalin described the Marshall Plan as ‘dollar diplomacy’ and argued the US would gain
influence over countries by controlling their economies. He rejected the offer of finance
and made sure all countries he controlled did the same by establishing:
