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Thursday, 27-Jun-2002 13:20:43 EDT |
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Secretary of State
George C. Marshall
Commencement address at
Harvard University
Cambridge, Massachusetts
June 5, 1947
Presented here is the text of the speech given by United States Secretary of
State, George C. Marshall at Harvard University on 5 June 1947. This speech
initiated the post-war European Aid Program commonly known as the
Marshall Plan.
I need not tell you, gentlemen, that the world situation
is very serious. That must be apparent to all intelligent people. I think one
difficulty is that the problem isone of such enormous complexity that the very
mass of facts presented to the public by press and radio make it exceedingly
difficult for the man in the street to reach aclear appraisement of the situation.
Furthermore, the people of this country are distant from the troubled areas of
the earth and it is hard for them to comprehend theplight and consequent
reactions of the long-suffering peoples, and the effect of those
reactions on their governments in connection with
our efforts to promote peacein the world.
In considering the requirements for the rehabilitation of Europe, the physical
loss of life, the visible destruction of cities, factories, mines and railroads was
correctlyestimated 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. 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. Under the arbitrary and destructive Nazi rule, virtually
every possible enterprise was geared into the German war machine.
Long-standing commercial ties, private institutions, banks, insurance companies,
and shipping companies disappeared, through loss of capital, absorption
through nationalization, or by simple destruction.
In many countries, confidence in the local currency has been severely shaken. The
breakdown of the business structure of Europe during the war was complete. Recovery
has been seriously retarded by the fact that two years after the close of
hostilities a peace settlement with Germany and Austria has not been
agreed upon. But even given a more prompt solution of these difficult problems
the rehabilitation of the economic structure of Europe quite evidently will
require a much longer time and greater effort than had been foreseen.
There is a phase of this matter which is both interesting and serious.
The farmer has always produced the foodstuffs to exchange with the
city dweller for the other necessities of life. This division of labor is the
basis of modern civilization. At the present time it is threatened with
breakdown. The town and city industries are not producing
adequate goods to exchange with the food producing farmer. Raw materials and fuel
are in short supply. Machinery is lacking or worn out. The farmer or the peasant
cannot find the goods for sale which he desires to purchase. So the sale of his
farm produce for money which he cannot use seems to him an unprofitable
transaction. He, therefore, has withdrawn many fields from crop cultivation and
is using them for grazing. He feeds more grain to stock and finds
for himself and his family an ample supply of food, however short he may be
on clothing and the other ordinary gadgets of civilization. Meanwhile people in the
cities are short of food and fuel. So the governments are forced to use their
foreign money and credits to procure these necessities abroad. This
process exhausts funds which are urgently needed for reconstruction. Thus a
very serious situation is rapidly developing which bodes no good for the world.
The modern system of the division of labor upon which the exchange of products is
based is in danger of breaking down.
The truth of the matter is that Europe's requirements for the next three or four
years of foreign food and other essential products - principally from America - are
somuch greater than her present ability to pay that she must have substantial
additional help or face economic, social, and political deterioration
of a very grave character.
The remedy lies in breaking the vicious circle and restoring the confidence of
the European people in the economic future of their own countries and of Europe as
awhole. The manufacturer and the farmer throughout wide areas must be able and
willing to exchange their products for currencies the continuing value
of which is not open to question.
Aside from the demoralizing effect on the world at large and the possibilities
of disturbances arising as a result of the desperation of the people concerned, the
consequences to the economy of the United States should be apparent to all. It is
logical that the United States should do whatever it is able to do to assist in the
return of normal economic health in the world, without which there can be no
political stability and no assured peace. Our policy is directed not
against any country or doctrine but against hunger, poverty, desperation
and chaos. Its purpose should be the revival of a working economy in the
world so as to permit the emergence of political and social conditions in which
free institutions can exist. Such assistance, I am convinced, must not be on a
piecemeal basis as various crises develop. Any assistance
that this Government may render in the future should provide a cure rather than a
mere palliative. Any government that is willing to assist in the task of recovery
will find full co-operation I am sure, on the part of the United States Government.
Any government which maneuvers to block the recovery of other countries cannot
expect help from us. Furthermore, governments, political parties, or groups which
seek to perpetuate human misery in order to profit therefrom politically
or otherwise will encounter the opposition of the United States.
It is already evident that, before the United States Government can proceed much
further in its efforts to alleviate the situation and help start the European world
on its way to recovery, there must be some agreement among the countries of Europe
as to the requirements of the situation and the part those countries themselves
will take in order to give proper effect to whatever action might be undertaken
by this Government. It would be neither fitting nor efficacious for
this Government to undertake to draw up unilaterally a program
designed to place Europe on its feet economically. This is the business of the
Europeans. The initiative, I think, must come from Europe. The role of this country
should consist of friendly aid in the drafting of a European
program and of later support of such a program so far as it may be practical for
us to do so. The program should be a joint one, agreed to by a number, if not all
European nations.
An essential part of any successful action on the part of the United States is
an understanding on the part of the people of America of the character of the
problem and the remedies to be applied. Political passion and prejudice
should have no part.
With foresight, and a willingness on the part of our people to face up to the vast
responsibility which history has clearly placed upon our country, the difficulties
I have outlined can and will be overcome.
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