Direct military expenditure dropped from 54.3% of 1945 budget to 18% 1947

exploitation of reparations from east Europe

SU:

  • 1946 drought
  • 1947 winter famine

Stalin expected US to fall into recession again and beg for contract as after 1929

Greece test case for communist revolutions

  • Stalin decided not to b/c increase western hostility as Greece was significant in Truman Doctrine to prevent Domino effect

Yugoslavia proposing a Balkan federation -> disliked by Stalin

Czechoslovakia

Czechoslovakia as a key region between west Germany & Ukraine & SU

  • previous communists less tough & too many concessions
  • SU urged Klement Gottwald (communist prime minister) in February 1948 to get tough
  • demonstrations and armed trade unionists -> Benes resigned

Tito & Yugoslavia

Tito’s aid to the Greek communists -> expulsion of Yugoslavia from the Cominform -> but loyal Yugoslavs -> <=> witch hunt of titoist

Berlin Blockade

failure of the London conference of Foreign ministers

  • end of reparations from the Western zones to the SU

currency reformed discussed in the ACC of Germany

  • Reichsmark
  • Deutsche Mark (DM) in the western zone

24 June 1948 - 12 May 1949

  • Berlin blockade
  • SU agree to lift the blockade only if cancel the currency reforms
  • nuclear war was about to begin
  • events at similar time:
    • Titoist hunt
    • Stalin suffering from ill health and poorly prepred to meetings

SU declared the DM illegal currency in the eastern zone

  • blackmarkets - 30 east Marks to 1 western mark

election in whole western Germany -> Konrad Adenaur

  • proclaimed the Federal Republic of Germany (FRG)
  • SU followed with the German Democratic Republic (GDR)
  • competed to represent for the whole country

4 April 1949 NATO

  • Article 5 for mutual protection

1949 Comecon

  • Council for Mutual Economic Assistance

1955 Warsaw Pact