Law Establishing the Marshall Plan
4/3/1948
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On April 3, 1948, President Truman signed the Economic Recovery Act of 1948. It became known as the Marshall Plan, named for Secretary of State George Marshall, who in 1947 proposed that the United States provide economic assistance to restore the economic infrastructure of postwar Europe. The first and last pages of this 22-page act are shown here.
When World War II ended in 1945, Europe lay in ruins: its cities were shattered; its economies were devastated; its people faced famine. It was believed that Europe’s economic recovery was central to establishing a lasting peace. In the two years after the war, the Soviet Union’s control of Eastern Europe and the vulnerability of Western European countries to Soviet expansionism heightened the sense of crisis. To meet this emergency, Secretary of State George Marshall proposed in a speech at Harvard University on June 5, 1947, that European nations create a plan for their economic reconstruction and that the United States provide economic assistance.
On December 19, 1947, President Harry Truman sent Congress a message that followed Marshall’s ideas to provide economic aid to Europe. Congress overwhelmingly passed the Economic Cooperation Act of 1948, and on April 3, 1948, President Truman signed the act that became known as the Marshall Plan.
Over the next four years, Congress appropriated $13.3 billion for European recovery. This aid provided much needed capital and materials that enabled Europeans to rebuild the continent’s economy. For the United States, the Marshall Plan provided markets for American goods, created reliable trading partners, and supported the development of stable democratic governments in Western Europe. Congress’s approval of the Marshall Plan signaled an extension of the bipartisanship of WWII into the postwar years.
When World War II ended in 1945, Europe lay in ruins: its cities were shattered; its economies were devastated; its people faced famine. It was believed that Europe’s economic recovery was central to establishing a lasting peace. In the two years after the war, the Soviet Union’s control of Eastern Europe and the vulnerability of Western European countries to Soviet expansionism heightened the sense of crisis. To meet this emergency, Secretary of State George Marshall proposed in a speech at Harvard University on June 5, 1947, that European nations create a plan for their economic reconstruction and that the United States provide economic assistance.
On December 19, 1947, President Harry Truman sent Congress a message that followed Marshall’s ideas to provide economic aid to Europe. Congress overwhelmingly passed the Economic Cooperation Act of 1948, and on April 3, 1948, President Truman signed the act that became known as the Marshall Plan.
Over the next four years, Congress appropriated $13.3 billion for European recovery. This aid provided much needed capital and materials that enabled Europeans to rebuild the continent’s economy. For the United States, the Marshall Plan provided markets for American goods, created reliable trading partners, and supported the development of stable democratic governments in Western Europe. Congress’s approval of the Marshall Plan signaled an extension of the bipartisanship of WWII into the postwar years.
Transcript
Eightieth Congress of the United States of AmericaAt the Second Session
Begun and held at the City of Washington on Tuesday, the sixth day of January, one thousand nine hundred and forty-eight
An Act
To promote world peace and the general welfare, national interest and foreign policy of the United States through economic financial and other measures necessary to the maintenance of the conditions abroad in which free institutions may survice and consistent with the maintenance of the strength and stability of the United States.
Be it enacted by the Senate and the House of Represenatives of the United States of American in Congress assembled, That this Act may be cited as the "Foreign Asistance Act of 1948".
TITLE I
Sec. 101. This title may be cited as the "Economic Cooperation Act of 1948".
Findings and Declaration of Policy
Sec. 102. (a) Recognizing the intimate economic and other relationships betwen the United States and the nations of Europe, and recognizing that disruption following in the wake of war is not contained by national frontiers, the Congress finds that the existing situation in Europe endangers the establishment of a lasting peace, the general welfare and national interest of the United States, and the attainment of the objectives of the United Nations. The restoration or maintenance in European countries of principles of individual liberty, free institutions, and genuine independence rests largely upon the establishment of sound economic conditions, stable international economic relationships, and the achievement by the countries of Europe of a health economy independent of extraordinary outside assistance. The accomplishment of these objectives calls for a plan of European recovery, open to all such nations which cooperate in such plan, based upon a strong production effort, the expansion of foreign trade, the creation and maintenace of internal financial stability, and the development of economic cooperation, including all possible steps to establish and maintain equitable rates of exchange and to bring about the progressive elimination of trade barriers. Mindful of the advantages the Unted States has enjoyed through the existence of a large domestic market with no internal trade barriers, and believing that similar advantages can accrue to the countries of Europe, it is declared to be the policy of the people of the United States to encourage these ...
[pages omitted]
Economic Corporation, may deem necessary to carry out the purposes of this title and to improve commercial relations with China.
Sec. 406. Notwithstanding the provisions of any other law, the Reconstruction Finance Corporation is authorized and directed, until such time as an appropriation is made pursuant to section 404, to make advances, not to exceed in the aggregate $50,000,000, to carry out the provision of this title in such manner and ins uch amounts as the President shall determine. From appropriations authorized under section 404, there shall be repaind without interest to the Reconstruction Finance Corporation the advances made by it under the authority contained herein. No interest shall by charged on advances made by the Treasury to the Reconstruction Finance Corporation in implementation of this section.
Sec. 407. (a) The Secretary of State, after consultation with the Administrator, is hereby authorized to conclude and agreement with China establishing a Joint Commission of Rural Reconstruction in China, to be composed of two citizens of the United States appointed by the President of the United States and three citizens of China appointed by the President of China. Such Commission shall, subject to the direction and control of the Administrator, formulate and carry out a program for reconstruction in rural areas of China, which shall include such research and training activities as may be necessary or appropriate for such reconstruction: Provided, That assistance furnished under this section shall not be construed as an express or implied assumption by the Unted States of any responsibility for making an futher contributions to carry out the purposes of this section.
(b) Insofar as practicable, an amount equal to not more than 10 per centum of the funds made available under subsection (a) of section 404 shall be used to carry out the purposes of subsection (a) of this section. Such amount my be in United States dollars, proceeds in Chinese currency from the sale of commodities made available to China with funds authorized under subsection (a) of section 404, or both.
[endorsements]
This primary source comes from the General Records of the United States Government.
National Archives Identifier: 299857
Full Citation: (Law Establishing the Marshall Plan) An Act of April 3, 1948, Public Law 80-472, 62 STAT 137, to Promote World Peace and the General Welfare, National Interest, and Foreign Policy of the United States; 4/3/1948; Enrolled Acts and Resolutions of Congress, 1789 - 2011; General Records of the United States Government, Record Group 11; National Archives Building, Washington, DC. [Online Version, https://www.docsteach.org/documents/document/marshall-plan, September 8, 2024]Rights: Public Domain, Free of Known Copyright Restrictions. Learn more on our privacy and legal page.