History 103 Lecture – 13 January th 01/13/2014
Wartime Alliance: “marriage of convenience” and “permanent mutual suspicion”
War’s end: military “facts on the ground”
The tradeoff over Eastern Europe
The global field: Allied differences
U.S. designs (Bretton Woods, World Bank, IMF)
Competition between the western powers themselves. A contest among the communist powers
themselves as well.
“Cold war in the communist world” GET IT
European powers led by Britain wanted to turn the clock back and restore their colonial powers
Equally determined to close old, closed colonial block
US effort to open up markets launched in 1944 at a resort in new Hampshire. Convened by Roosvelt
and 28 countries in attendance.
Bretton Woods conference (1944) not just a measure for the colonies devastated by war but about
much more than that. Wanted to devise a long term plan for regulating the global economy.
Three principle goals in mind
1. Put in place policies and institutions that would promote private investment on a world wide scale
2. To promote free trade among nations
3. To secure open access to resources and raw materials on a global basis.
In the service of those goals, two financial institutions brought into being
1. International bank for reconstruction and development, better known as the world bank. Mechanism
for loaning money for postwar economic reconstruction of Europe and to promote economic
development projects in what was soon going to be known as the “third world.” Mission to promote
capitalism and reduce the appeal of the soviet union. So that as a condition for receiving loans,
countries would have to adopt policies favoured by the bank such as openness to tax breaks and
foreign investment. Through it’s ability to grant and withhold loans, it was able to exert tremendous
amounts of influence on the countries that depended on it for loans. Bank financed by member
contributions. World Bank has always been American.
2. International monetary fund or the IMF
Have to have mechanisms to ensure stability within the currencies that you are traded in.
Emergency fund for the currency that suddenly plummeted in value propping up currencies and by
extension, their governments.
Wheeling and Dealing at Yalta AGENDA
Stalin’s price for entering the Pacific War
Creating the UN
Determining the postwar status of Eastern Europe
Determining the political future of Germany
Four issues dominated the Yalta talks, three of which expressly concerned with postwar political
1. Securing Soviet participation in the war with Japan.
2. Creation of a new international body that would replace the failed LoN
3. Political status of postwar Eastern Europe
4. Political future of Germany
1. Stalin has promised Roosevelt that Soviet would enter the war with Japan within three months of the
defeat of Nazi Germany. Send troops across the border from Siberia to Japan occupied Manchuria. But
Stalin retracted a heavy price in return. Demanded in receipt of all of the former tsarist privileges
including rail roads, port facilities and also involved crucially and also that Chinese govt. recognized the