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The Marshall Plan was instituted to provide economic aid to countries that remained capitalist. Aid was supplied in money but also in commodities like livestock. This influenced many nations to lean toward capitalism, nations like Italy, which was on the brink of turning Communist. Only after the Christian Democrats won the election of 1948, with the aid of the newly formed CIA, was Italy included in the Marshall plan.

This plan was intended to stop the spread of communism in Western Europe. It made each country decide which side of the fence it would sit on thus accelerating the division of Europe. It solidified capitalism in countries like France and Italy and communism in countries like Czechoslovakia (Issacs 243). The conflict came to a head during the Soviet blockade in 1948. The center was Berlin where the Soviets controlled half the country and the Allies controlled the other half. Conflicts included currency, inspection of trains, and a collision between a British airliner and a Soviet fighter. The Soviets wanted one type of currency, the Ostmark, and the West responded with their currency, the B-mark. The conflict came about when the Soviets wouldn't allow the B-mark to be circulated in Soviet sectors. Finally, the Berlin assembly approved both currencies. The next day barriers were lowered on all the routes linking Berlin with West Germany. By imposing this blockade, the Soviets hoped to force the Western Allies to change their policies or get out of Berlin all together. In Washington there was a decision to stay in Berlin. Truman said, "We are going to stay, period." (Issacs 247)

George Kennan, who wrote the X document, influenced this policy. He said in this document that the Soviet ideology was self-destructive and would eventually collapse. He saw no threat from their military since the USSR was prostrate after World War II. Also, he predicted the ultimate failure of the Soviet economy and that the success of capitalist states would drive the Soviets to reform. He said, "It is difficult to see how these deficiencies can be corrected at an early date by a tired and dispirited population working largely under the shadow of fear and compulsion" (Larson 93). He said the Soviets have within it the "seeds of their own decay" and that the world would see the economic success of capitalist countries and the failure of the communists causing a decline in the influence of communism. With containment in mind, the U.S. instituted a series of policies, following the Truman Doctrine, including the Marshall Plan (Gaddis 94).

The Marshall Plan was instituted to provide economic aid to countries that remained capitalist. Aid was supplied in money but also in commodities like livestock. This influenced many nations to lean toward capitalism, nations like Italy, which was on the brink of turning Communist. Only after the Christian Democrats won the election of 1948, with the aid of the newly formed CIA, was Italy included in the Marshall plan.

This plan was intended to stop the spread of communism in Western Europe. It made each country decide which side of the fence it would sit on thus accelerating the division of Europe. It solidified capitalism in countries like France and Italy and communism in countries like Czechoslovakia (Issacs 243). The conflict came to a head during the Soviet blockade in 1948. The center was Berlin where the Soviets controlled half the country and the Allies controlled the other half. Conflicts included currency, inspection of trains, and a collision between a British airliner and a Soviet fighter. The Soviets wanted one type of currency, the Ostmark, and the West responded with their currency, the B-mark. The conflict came about when the Soviets wouldn't allow the B-mark to be circulated in Soviet sectors. Finally, the Berlin assembly approved both currencies. The next day barriers were lowered on all the routes linking Berlin with West Germany. By imposing this blockade, the Soviets hoped to force the Western Allies to change their policies or get out of Berlin all together. In Washington there was a decision to stay in Berlin. Truman said, "We are going to stay, period" (Issacs 247).

The Soviets cut off all supplies to the West. All rail, road, and canal routes were blocked, and the only way to get supplies in was through the air. With only the C-47 transport as a means of delivery, this option looked out of reach. First the Allies instituted a counter blockade. This severely hurt the East. With their options limited, the Allies began the airlift campaign led by General Clay. Soon, C-47's and C-54's were flying tons of supplies around the clock into Berlin from bases in Western Germany. They were determined not to let the Soviets take control of Germany and expand their power (Issacs 250).

Soon after the Berlin Blockade was put into effect, there was the formation of the North Atlantic Treaty Organization. The United States wanted to find allies to aid in the containment of Soviet power. On April 4, 1949, the United States, Canada, and ten European nations signed the treaty (Gaddis 122). The treaty stated that an attack against one of the nations was an attack against them all and if one nation were attacked the others would come to its aid. It was a defensive organization against communist power. Soon after, the Berlin Blockade was lifted and Soviet expansion ceased in Europe; however, it did not stop in Asia. American troops were now constantly stationed in Europe. This was the closest the two powers had come to an actual conflict...

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