What was the Marshall Plan

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A.� It just depends upon your point of view. It was either the Americans' generous plan to help war-torn Europe remain stable; or another attempt to expand American imperialism into another sphere.< xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

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Q.� What did it entail

A.� The details were outlined by George Marshall, the American Secretary of State, at Harvard University on 5 June 1947. The nations of Europe had just survived one of the worst winters on record. They had nothing to sell for hard currency, and the democratic socialist governments in most countries were unwilling to adopt hardline proposals for recovery. America believed something had to be done - for humanitarian reasons and to stop the potential spread of communism.

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Marshall, in his speech, said: 'In considering the requirements for the rehabilitation of Europe, the physical loss of life, the visible destruction of cities, factories, mines, and railroads was correctly estimated, but it has become obvious during recent months that this visible destruction was probably less serious than the dislocation of the entire fabric of European economy.

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'For the past 10 years conditions have been highly abnormal. The feverish preparation for war and the more feverish maintenance of the war effort engulfed all aspects of national economies. Machinery has fallen into disrepair or is entirely obsolete...

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'In many countries, confidence in the local currency has been severely shaken ... the rehabilitation of the economic structure of Europe quite evidently will require a much longer time and greater effort than had been foreseen.'

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Q.� What was on offer

A.� Up to $20 billion for relief, but only if the European nations could get together, as a single economic unit, and draw up a rational plan on how they would use the aid. Marshall also offered aid to the Soviet Union and its allies in eastern Europe, but Stalin denounced the programme.

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Q.� What was in it for America

A.� There were benefits. The money would be used to buy goods from the United States, shipped across the Atlantic on American merchant vessels. By 1953 America had paid out $13 billion, and Europe was standing on its feet again. It had the added effect of bringing West Germany back into the European community.

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Q.� So this was sowed the seeds of the European Union

A.� Yes. The Marshall Plan led to the Schuman Plan - which pooled the steel and coal resources of Western Europe - which in turn led to Euratom (the European Atomic Energy Community), then the Coal and Iron Community and the Common Market. Now those countries even have a common currency, with a couple of honourable exceptions.

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Q.� And a success for the Americans

A.� It considered a triumph of realpolitik. It helped feed the starving and shelter the homeless, revived the European economy and stopped the spread of communism westwards.

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Steve Cunningham