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A State of Clear and Present Danger: A History of American Foreign Policy during the Cold War

by Tom Wheat

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Introduction

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Chapter 9

Conclusion

Of Further Interest

Middle East
Research Links
Historical Documents

Chomsky on Terror
Iriquois Confederacy

US Strategic goals after the Cold War

Recommended Reading

Global Consumerism

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Chinese & Russian Revolutions

Cold War International History Project 

 

 

 

Origins of the Cold War

Chapter 1

"I know from experience that the leaders of the armed forces can be very persistent in claiming their share when it comes time to allocate funds. Every commander has all sorts of very convincing arguments why he should get more than anyone else. Unfortunately there is a tendency for people who run the armed forces to be greedy and self--seeking. They're always ready to throw in your face the slogan "If you try to economize on the country's defenses today, you will pay in blood when war breaks out tommorrow." I am not denying that these men have a huge responsibility, and I am not impugning their moral qualities. But the fact remains that the living standard of the country suffers when the budget is overloaded with allocations to unproductive branches of consumption. And today as yesterday, the most unproductive expenditures are all of those made on the armed forces." Krushchev - 1970


This next section will begin with the origins of the Cold War and the development of the four pillars of American foreign policy beginning from 1943 to 1949. A special focus will be placed on the nature of the alliance albeit the system, and convergence of the powers, the states and their separation into two camps upon establishing a New World Order in the international system. The failure to deal with the Soviets, after Roosevelt, a major discontinuity emerged in American foreign policy in this regard; rather the focus was on meeting the threat of Soviet expansion head on, rather than plans for mutual reconciliation. Rather the vision of huge Soviet Occupying armies poised to take Europe by storm by the fissioning of the European political heartland after the rise of totalitarianism became the view that was the rallying call for continued mass mobilization. America at this time knew that the dissolution of Fascist Germany was imminent and it was presumed that Eventually a military alliance structure would need to fill that gap caused by the eventual collapse of fascism that could also contain the Soviet expansion threat caused by the political vacuum in Europe.

 

One could argue that The Cold War began with death of Roosevelt. He envisioned a world order run by four policemen, the US, Britain, China and the Soviet Union, all providing collectively for world security. It was during this pivotal war period that the Alliance maintained consensus of aims and nowhere in modern history except at this time would individuals play such a a major role in the systematic reorganization of the balance of global power. Besides Roosevelt the other key players were Winston Churchill and Josef Stalin. These state leaders maintained an uneasy alliance, through various international Charters and agreements and they sought political stability in a matter suited towards their own individual state security aims. However, when Roosevelt died all attempt at cooperation with the Soviets were ended.

As a world figure, Churchill wanted to reconstruct the old balance of power in Europe while recognizing America's newfound power, as leading or co-joining that coalition with Britain. Britain wanted desperately to preserve its colonial possessions but this was not a systemic reality. Much of the early Cold War period was marked by British liquidation of its colonial territories in the Third World and the Soviet's supporting those nationalist uprisings in order to create spheres of influence and incorporate alliances in territories perceived to have geo-strategic interests to the US and England. According to the West this was a direct threat and challenge to the Bretton Woods Agreements, the matter in which the post war economic map of Europe was to be drawn, and this inexorably tied its fate to Asia of which more will be discussed later.

Stalin was a realist who incorporated Marxist Leninist models while relying on the ideology of utopianism to unify his country and monopolize total state control over his populace by nationalizing the limited means of production that existed in the hands of individual entrepreneurs and directing that capital into the hands of a newly created centralized Leninist bureaucracy solely under his control. Stalin was a key figure in Soviet history, because on the one hand sought to maintain traditional Tsarist Russia foreign policy aims he also incorporated Communism as the official ideology of the State. Stalin envisaged expansion into to Eastern Europe so as to create a security belt from any further threat of future European invasion. At the Yalta conference as WWII was still being waged Stalin gave notice of his intention to occupy Poland in order to prevent further encroachments from the Germans who had previously used the country to launch an invasion into the Soviet Union. Historian Walter Lefeber describes Stalin's key goals in establishing a sphere of control in Poland.

 "Having been invaded four times since 1914 and having suffered the destruction of much of the western Soviet Union, he added, the Soviets wanted puppet regimes in all contiguous countries and a guaranteed freedom from danger to recover and industrialize."(American Age, 438)

Stalin as did Churchill viewed the alliance as temporary unlike Roosevelt who envisioned cooperation and eventually including China who at the time was still occupied by the Japanese and undergoing a Civil War between Nationalist and Communist War Lords. To Stalin the world was an unstable place, by the nature of his ideology, and the image of the world that he presented to his people, there could never be true peace, between capitalism and communism and rather the current compromise was forged out of necessity. Stalin also relied on crisis to maximize his authority relying on the historically characteristic Russian Tsarist image of the savior/sovereign autocrat. According to many diplomatic theorists Stalin was able to secure far to many concessions from Roosevelt and the effects of which were perceived to be detrimental to following US Administrations.

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The Creation of the Pillars

Between 1944-1954 the four pillars of American foreign policy developed in response to the unstable alliance with the Soviets during the War. These pillars were not at all fixed and after a while some basic tenets such as deterrence became irrelevant, in the face of total nuclear war. However, this period represents a major discontinuity in American History in that America was now committed to a very active role in foreign affairs. Indeed the US would have a major card to play in shaping the post war world. A description of the four pillars shall now follow.

The first pillar was deterrence and it was based on four things. It assumed that the threat of nuclear war was imminent. Thus many scenarios were conjured up in US and Soviet policy think tanks on how best to use nuclear weapons in order to maximize advantage. While the Soviets did not detonate their first Atomic bomb until 1949, a Russian spy, Klaus Fuchs was a member of the Manhattan project and actively assisted the Soviets in atomic design protocols. The second form of deterrence was the requirement for massive stockpiling of nuclear weapons. The third form of deterrence was the willingness to use nuclear weapons at all levels of engagement. Ultimately Deterrence while touted to be a stabilizing force predicated on the notion that the threat of mutual annhilation would bring about compromise, the long term effect of this policy was an increase in Nuclear Weapons proliferation around the world.The final commitment was to stay technologically ahead. Later on as previously mentioned deterrence became the first pillar to erode as one might imagine.

The second pillar was containment through alliance. The goal of this was to contain Soviet expansionism, either in its ideological or territorial form. Out of this pillar emerged the institutions of NATO and among others CENTRO and SEATO. This was the most expensive of the four pillars.

The third pillar was commitment to intervention. This meant that US foreign policy, in an effort to contain the Soviet threat would engage the enemy, anywhere, either through direct combat or combat via proxy through a series of limited engagements throughout the Third World. Containment of the Soviet threat created a US policy of intervention into the political systems of the countries of the Third World where nationalism was rampant after the decay of colonialism. Intervention in these countries was deemed imperative in order to prevent the spread of Soviet Marxism a favorite tool utilized by many Nationalists hoping to seek political and economic independence from the dominate western economic capitalist system. It was this pillar that gave rise to the Truman Domino theory an ideology characteristic of Third World Intervention and culminated in US policy being ideologically committed to a losing cause in Vietnam.

The Fourth Pillar was the establishment of a "liberal" economic international world order. This had been a long established program of which Stalin had been present at its creation. This new World Order was conceived at the Bretton Woods agreements where the uneasy alliance had endeavored to create a multi-polar world. However, though, through a policy of mutual distrust, and ideological incompatibility, Stalin withdrew from the conference and closed his markets to the west. Bretton Woods created the IMF and the World Bank. It was the function of these international agencies to loan money to embattled countries, to prevent a potential future war that would disrupt the Free Trade system, and that the economic incentive of cash loans would overwhelm the desire for regional power brokers to carry vendettas that could lead to future world wars. According to the architects of the Bretton Woods agreements, Keynes and White, [1][1] War represented a failure of the economy and as such the IMF and the World Bank were perceived as stabilizing buttresses that could contain and transpose the threat of war into the realm of international commerce.

The central factor of this pillar that is still with us today is the concept of free trade. Free trade involved lowering tariffs and among other things a balance of trade favorable to the capitalist system. Secondly Free Trade relied on the free convertibility of currencies. Thirdly, in the beginning, free trade relied on fixed monetary exchange rates; since it was viewed that major monetary fluctuations could stall the free flow of trade. The goal was for economic stability, no country could without first consulting the IMF could devalue its currency. The US one could argue now emerged with a willingness to manage the international system something in the past it had not shown willingness to do before. Also America maintained willingness to station troops throughout Europe, to safeguard European futures in terms of a ready supply of export credits and circulation of US dollars as the international monetary standard in the Bretton woods system. Simple economics would later graft European and American ambitions into an international military force structure called NATO.

The Man From Independence, Missouri

Harry S. Truman comes on to the scene after Roosevelt's death and immediately as a result of personality conflicts with Stalin the Man from Missouri would not compromise with the Soviet dictator. The Soviet's in turn refused to cooperate with the Bretton Woods agreements, --the said agreements constituting a new economic dimension to the US's diplomatic position on free trade after W.W.II to the present. Truman enjoyed enormous power in Western Europe after the Allied occupation. In 1946 as the Allies were rebuilding Germany's 4 occupation zones Truman called for a merger of all four Zones. The Soviet's refused.

Prior to this in 1944 at the Pottsdam conference the Allied forces had agreed to 4 occupation zones of Germany. In part this was a departure from the Yalta conference in which an economically hind and quartered Germany would have intensified the political vacuum in Europe. Germany had been the center of Industrial production in Europe and the leaders of the Alliance with the exception of Stalin realized that a debilitated Germany stripped of its production capabilities could only be maintained by force, and that eventually Europe would have to rely on a prosperous re-developed German Nation. In the end the Pottsdam conference created two zones of occupation with West Germany going over to the West and East Germany going over to the Soviets. However, a key concession one at Pottsdam was Stalin's ability to carve out territory in Poland and merge it with this newly created East German block. According to Walter Lafeber, Truman recognized that the Pottsdam conference settled 3 important factors, concerning the fate of Germany. Two of these factors were in accord with American policy objectives and the third suited Stalin's notion of a security buffer zone.

"Pottsdam in truth settled three key German problems: dismemberment went forward; reparations from the western zones to the Soviet Union were stopped, and over Truman's and Atlee's objections, Stalin insisted that the new Poland have German territory."(American Age)

In 1946 the US suspends dismantling of German industry in its zone. By the latter half of 1946 the US and Britain agree to merge their occupation zones and by 1947 the French agree to do the same

The economic foundations for w. European stability were predicated upon military intervention, and economic restructuring of European capital by the US to resuscitate a war ravaged W. European economy. Hence, the first major exercise of the second pillar of US foreign policy was first articulated in the formation of the European Welfare state as a means to keep Europe from aligning with the USSR. This economic containment plan was known as the Marshall plan. According to Russia this was the second offensive act of the cold war, by the US, the first act being the detonation of the Atom bomb at Hiroshima and Nagasaki. Some Cold War theorists have pointed to this act as the US's first excercise of atomic diplomacy and a warning to Stalin that occupation of Japan would not paralell soviet gains in eastern europe.


For more information on the Truman debate, concerning the question of using the atom bomb as the precusor phase to atomic diplomacy, please click here!


The Marshall Plan: A Cold War Call to Arms 

The Marshall Plan was created to aid the war torn countries of Europe and rebuild their industry and other domestic infrastructure destroyed by WWII. The Plan was proposed for two reasons. The first reason was for humanitarian reasons and the second reason was to combat Soviet influence from entering impoverished regions where poverty would be a fertile breeding ground for Soviet Marxist ideology. France was a good example of this in that after having been ravaged by the NAZIS a large communist party had managed to unify many of the partisans under common opposition to the economic chaos that ensued. With the Truman Doctrine of containing Soviet expansionism the Marshall plan provided the economic financing for rebuilding of domestic infrastructure, and as such the policy platform included all of Europe to be rebuilt and reintegrated under a US dominated capitalist system. Here again the Domino theory underlined the need for this program in that if Europe fell to Soviet Communism the US dependant upon Europe for export of its surplus production would lose such a vital market, and would be dragged into another great depression, or worse a revolution. Historian Walter Lafeber on Paul Nitze, a member of Truman's State Department, summed up the administrations view of the economic crisis in Europe and the potential for the demise of the newly constructed balance of power if the US did not act quickly with a plan for economic recovery.

"The most dangerous problem as Nitze and other business leaders saw it, was not the threat of soviet invasion, but a European economic collapse that could turn the pivotal region toward socialism, paralyze the US economy, and threaten the entire Capitalist system."(American Age, 479) Hence the economic well being of Europe was tied to America's conceptions of security in this respect.

The Marshall plan accomplished two objectives. One it allowed the US economy that had been mobilized for the war effort, the trappings of which included a huge surplus of goods to be exported over to Europe as loans with the promise that Europe would rebuild and recover and consequently American investment would flourish. Furthermore, America had to get rid of its surplus after the war or it would face a recession of its own. The second objective to the Marshall plan allowed the US government and its constituent business networks considerable oversight into the affairs of European governments, which amounted to easing tariff restrictions and ending all thoughts of implementing central economic planning, beyond the confines of benign Keynesian economics, the other option being the mercantile command economy the tool and method of the Soviet economic system.This effectively distanced the Soviet's from the Marshall plan and at the same time attempted to establish a third pole in Europe to offset the dangerous extreme nature of the bipolar system. The overall effect of the Marshall plan was the creation of the Cold War, where the Soviet's sealed their borders to Western trade and developed their own economic recovery plan for their client states.

Stalin could not have accepted the Marshall plan and remained in power for long. The Marshall plan would have given the United States a major share in reorganization of Russian economic and monetary policy. The structure of the Soviet state saw itself as independent of capitalism and incompatible with capitalist directed globalism and its ensuing interdependent market structures. The Soviets viewed the system of balance of power in colonialist terms and Marxism taught them that imperialism from the West first comes by the establishment of western market contacts, whereby the economic integration with the stronger or more industrialized nation would create a marginalizing effect on the sovereignty of the nonwestern state and reduce it to peripherary status.

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Michael J. Hogan of the Corporatist school of Diplomatic History has argued that the Marshall Plan created a stable region in Western Europe. The Marshall plan he argues had continuity with Roosevelt's own New Deal program for American economic recovery. He also argued that the Marshall Plan endeared a system of collective stability, and that such economic recovery could only occur through capitalism, and specifically the plan relied on Keynesian deficit spending through government capital flows to stimulate economic recovery.

"Marshall planners used the New Deal as a blue print in their struggle to assure international stability through the spread of liberal capitalism. Economic assistance provided the means for rebuilding a balance of power in Europe by establishing an organization that could simultaneously contain the Soviet Union in Eastern Europe and reintegrate Germany into an economically interdependent and politically stable Western Europe." (America in the World, 263)

An equally influential theorist John Lewis Gaddis [4] argues that Corporatist theory places too much emphasis on domestic factors of production and not to geopolitical interests. Gaddiss faults Stalin as being the cause of the Cold War due to the constraints of his bureaucratic management style that required a constant state of paranoia and aversion to all things western and that ideology of totalitarianism was paramount in Stalin's dealings with the west. Furthermore at times the US did not solely act according to the dogma of free trade when it blocked Japan's attempts to resume normal trading relations with China. This was presumed necessary in that geopolitical interests were paramount in containing the newly constituted expansionistic Chinese Communist state.

Both Hogan and historian Melvyn Leffler agree that the Marshall plan accomplished what its chief aims were at that time and that intensification of Cold War Conflicts were residual, and rather reflected overarching ideological policy concerns arising out of the attempt to preserve 'peace' through economic recovery and expansion. (America in the World, 265)

Thus, US policymakers viewing the successes of the Marshall plan in Europe tried to implement similar measures in the Third World though not as grand in duration and this led them to conflict with the Russians and later the Chinese in Korea. The prewar mobilization of the US economy created a system in which surplus goods could be sold directly to Europe and later to the Third World.. This surplus included military, industrial and agricultural hardware, and foodstuffs produced by a WWII war machine that was not going to go away soon. The implementation of the Marshall plan also caused the Soviet's to retreat to their own economic bloc as well as an attempt to blockade Berlin, the first military action of the Cold War.

***


US foreign policy in 1946 focused primarily on Europe and not Asia. In light of this it is not hard to imagine that unqualified personnel in Asia paralleled qualified personnel in place in Europe. US foreign policy had two key directives during this time. The first one was to establish security in the new international system, i.e., a European American Alliance of established trade networks and at the same time to maintain political security in the developing bipolar world. Not only did the US focus on Europe more than Asia had to do with more with Anglo and other ethnocentric and economic affiliations then the political and economic instability offered by Asia which at the time had little to offer other than endless civil war.

The political reality was posed to US policymakers as well as to its Allies that the amount of Red Army occupation troops poised to overrun Europe in comparison to allied troops stood at a 30-10 ratio. Walter Lafeber describes how the US viewed Soviet political expansion into eastern and central Europe by virtue of their occupying forces being put in place after W.W.II and how the US viewed the Soviet's interpretation of spheres of influence and the resulting creation of satellite client states as constituting a Military and ideological threat to capitalism and the new emerging US-European security arrangement.

"Moreover not only were the Red Army's divisions concentrated in Eastern Europe, but large communist parties in war devastated France and Italy were poised to seize power. Byrnes [secretary of state] and Moltov [Russian foreign minister] fought bitterly…until they finally agreed on peace treaties for Finland and Italy that the Americans liked and for Romania, Hungary, and Bulgaria that the Soviet's could accept."(American Age, 468)

  The Paper Tiger

In Asia Roosevelt's vision of the fourth policeman, China was undergoing Civil War. US General Hurley who had been stationed in China maintained that US foreign policy objectives would best be served if the US backed Chiang Kai Shek's Nationalist faction as opposed to the communist faction backed by Mao Tse Tung who was affiliated and perceived to be a potential soviet puppet. Hurley is inexperienced in the state of domestic Chinese politics and his sole mission is to keep the Soviets out of China.

Truman sends General George C. Marshall to work out a truce settlement with Chiang and Mao. The US congress earmarks 800 million dollars for Chiang's regime and Chiang wastes no time in using the money to fight Mao. At the same time the Nationalist government was rife with corruption since it was entirely headed by Chiang's relatives who embezzled as frequently as modern day Chinese light up cigarettes. The result was skyrocketing inflation. In some places people could be seen with wheelbarrows carting around worthless currency to the markets to buy just bread in the waning days of Chiang's inept regime. Mao ends up defeating Chiang due to the Nationalist army having ill trained and disloyal troops in the face of Mao's fanatically loyal troops. This was a major failure in US foreign policy. The US had an opportunity to bring Mao under a western orbit and due to ethnocentrism and western aversion to all things vaguely Marxist, despite Mao's Chinese socialism more or less being in tune with mercantilist fascism and so America lost China and she became aligned with Russia. Later China would emerge into a regional power that would attempt to challenge Soviet hegemony. The US would counter this Sino-Soviet rivalry by relying on a strategy of detente. This Foreign policy blunder would later set the tone for the limitations of US power in Korea.

***

"To attribute this to inadequate foreign support, I said, was to miscalculate entirely what bad been going on in China and the nature of the forces involved. The almost inexhaustible patience of the Chinese people had ended. They had not overthrown the Government. There was nothing to overthrow. They had simply ignored it. The Communists were not the creators of this situation, this revolutionary spirit, hut had mounted it and ridden to victory and power." -Acheson-

Dean Acheson, Truman's Secretary of State established the US's diplomatic objectives as they would be exercised throughout the Cold War. Acheson was a self-described realist. He believed that Stalin could only be negotiated with through "positions of strength." Acheson had helped write the Bretton Woods accords and viewed peace with the Soviets could only be achieved if the Soviets agreed to the Bretton Woods agreements. When the Soviet's refused Acheson began to call for massive US military mobilization. Historian Walter Lafaber asserted this point succinctly:

"Americans had to either find open markets and liberal international trade or they would find themselves facing the economic horrors of the 1930's. Since the Soviet's refused to join the Bretton Woods system, Acheson turned to reliance on military power."(American Age, 466)

Acheson also placed little faith in the power of the UN, which he viewed as a mere forum.

With the creation of the United Nations a world forum was created which consisted of a General Assembly and a Security Counsel the latter of which consisted of five permanent members and two alternate members among the G-7 industrialized nations. The Security counsel functioned on the principle of the unit veto system. At times this unit veto system could be skirted in favor of US objectives. For example the with the later Korean conflict, the UN security counsel authorized the US engagement in Korea with the Soviets absent from the council on that day because they were protesting China's exclusion from the member body since the Nationalist government in Taiwan was the only legally recognized sovereign body outside of China.

The Tehran Conference

 During W.W.II in 1943 the Tehran Conference underlined the process of troop withdrawals from occupied areas in the oil rich Middle East. Later in 1946 British and American troops had withdrawn from these regions when Stalin decided to claim the Iranian republic as a Soviet client state. A second war almost ensued. Originally, it was the British who had created the partition of Persia into Iran and Iraq and now they along with the US were not about to allow the Soviet's to effectively install their own puppet regimes in order to nationalize those oil fields under Communist control. The US and its allies realized that nationalization of these oil fields would cause the price of oil world wide to skyrocket. The US response was an appeal to the United Nations and the UN threatened invasion of Iran. This was forestalled when the pro- west faction of the Iranian government executed the Soviet puppet Iranian "Tudeh" party leaders.

The Tehran Conference also became pivotal with the notion of Turkey and its strategic position on the Bosphorous. During the Tehran conference Churchill had promised Stalin access through the straits as well as limited control. However, when that issue was brought before Truman, he maintained that any, "..island waterways bound by more than two states be placed under international control."(American Age, 469). It was at this point that Acheson's view on the necessity to deal with Stalin from "positions of strength" came to be characterized by Truman's new emerging containment doctrine, the Domino theory. Deterrence was the first measure of response when Truman ordered the US Navy aircraft carrier, the USS Roosevelt to remain permanently in the Mediterranean. Stalin responds to this by withdrawing from all overt participation in any Bretton Woods Agreements, and closed his borders to all western trade. Stalin then began a massive armament campaign and a policy of a coup entente in the Third World.


Chapter 2

Containment Plan

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