by Tony Judt
If Stalin went to such trouble to assert and re-assert his authority in eastern Europe, it was in large measure because he was losing the initiative in Germany.39 On June 1st 1948 the Western Allies, meeting in London, announced plans to establish a separate West German state. On June 18th a new currency, the Deutsche Mark, was announced; three days later it was placed in circulation (the banknotes had been printed in great secrecy in the US and transported to Frankfurt under US Army escort). The old Reichsmark was withdrawn, with every German resident entitled to exchange just forty of them for the new marks at a 1:1 ratio, thereafter at a ratio of 10:1. Initially unpopular (because it destroyed savings, pushed up real prices and put goods beyond most people’s reach) the currency was quickly accepted, as stores filled up with goods that farmers and traders were now willing to sell at fixed prices for a reliable medium of exchange.
On June 23rd, the Soviet authorities responded by issuing a new, East German Mark and cutting the rail lines linking Berlin to western Germany (three weeks later they would close the canals as well). The following day the Western military government in Berlin blocked Soviet efforts to extend the new Eastern zone currency to West Berlin—an important point of principle, since the city of Berlin was under four-power rule and the Western zone had not hitherto been treated as part of Soviet-occupied eastern Germany. As the Soviet troops tightened their control over surface connections into the city, the American and British governments decided upon an airlift to provision their own zones and on June 26th the first transport plane landed at Tempelhof airfield in (West) Berlin.
The Berlin airlift lasted until May 12th 1949. Over those eleven months the Western allies shipped some 2.3 million tons of food on 277,500 flights, at the cost of the lives of 73 Allied airmen. Stalin’s purpose in blockading Berlin was to force the West to choose between quitting the city (taking advantage of the absence in the Potsdam protocols of any written guarantee of Allied surface access to it), or else abandoning their plans for a separate West German state. This was what Stalin really wanted—Berlin for him was always a negotiating chip—but in the end he secured neither objective.
Not only did the Western allies hang on to their share of Berlin (somewhat to their own surprise, and to the amazed gratitude of the—West—Berliners themselves), but the Soviet blockade, following hard on the Prague coup, only made them more determined to move ahead with plans for West Germany, just as it made a division of the country more acceptable to Germans themselves. France joined the Bizone in April 1949, creating a single West German economic unit of 49 million inhabitants (against just 17 million in the Soviet Zone)
Like most of Stalin’s diplomatic adventures the Berlin blockade was an improvisation, not part of any calculated aggressive design (though the West could hardly be blamed for not knowing this at the time). Stalin was not about to go to war for Berlin.40 Accordingly, when the blockade failed, the Soviet leader changed tack. On January 31st 1949 he publicly proposed lifting the blockade in exchange for a postponement of plans for a West German state. The Western allies had no intention of making any such concession, but it was agreed to convene a meeting to discuss the matter and on May 12th the Soviet Union ended the blockade in exchange for nothing more than a conference of Foreign Ministers scheduled for May 23rd.
The conference duly took place and lasted for a month, but predictably found no common ground. Indeed it had only just begun when the West German parliamentary council in Bonn formally passed into effect the ‘Basic Law’ establishing a West German government; a week later Stalin responded by announcing plans for a complementary East German state, formally created on October 7th.41 By the time the conference broke up, on June 20th, the military government in West Germany had been replaced by High Commissioners from the US, Britain and France. The Federal Republic of Germany had come into being, though the Allies reserved certain powers of intervention and even the right to resume direct rule if they judged it necessary. On September 15th 1949, following his Christian Democratic Party’s success at the elections a month earlier, Konrad Adenauer became the Republic’s first Chancellor.
The Berlin crisis had three significant outcomes. In the first place, it led directly to the creation of two German states, an outcome none of the Allies had sought four years earlier. For the Western powers this had become an attractive and attainable objective; indeed, for all the lip service thenceforth paid to the desirability of German unification, no-one would be in any hurry to see it happen. As the British Prime Minister Harold Macmillan replied to President Charles De Gaulle nine years later, when De Gaulle asked how he felt about a united Germany: ‘In theory. In theory we must always support reunification. There is no danger in that.’ For Stalin, once he appreciated that he could neither compete with the Allies for the allegiance of the Germans nor force them to abandon their plans, a separate East German Communist state was the least bad outcome.
Secondly, the Berlin crisis committed the United States for the first time to a significant military presence in Europe for the indefinite future. This was the achievement of Ernest Bevin, the British Foreign Minister—it was Bevin who successfully urged the Americans to lead the airlift to Berlin, once Truman had been assured by Marshall and General Clay (the US commander in Berlin) that the risk was worth taking. The French were all the less involved in the Berlin crisis because from July 18th to September 10th 1948 the country was in the midst of a political crisis with no clear governing majority in the Assemblée Nationale.
But thirdly, and this followed from the first two, the Berlin crisis led directly to a reappraisal of Western military calculations. If the West was going to protect its German clients from Soviet aggression then it would need to give itself the means to do so. The Americans had stationed strategic bombers in Britain at the start of the Berlin crisis and these were equipped to carry atomic bombs, of which the US had 56 at the time. But Washington had no established policy on the use of atomic bombs (Truman himself was especially reluctant to consider using them) and in the event of a Soviet advance US strategy in Europe still presumed a retreat from the continent.
Central and Eastern Europe after World War Two
The military rethinking began with the Czech coup. In its aftermath Europe entered a period of heightened insecurity, with much talk of war. Even General Clay, not typically given to hyperbole, shared the prevailing fear: ‘For many months, based on logical analysis, I have felt and held that war was unlikely for at least ten years. Within the last few weeks I have felt a subtle change in Soviet attitude which I cannot define, but which now gives me a feeling it may come with dramatic suddenness. ’ It was in this atmosphere that the US Congress passed the Marshall Plan legislation and the European allies signed the Brussels Pact, on March 17th 1948. The Brussels Pact, however, was a conventional 50-Year Treaty binding Britain, France and the Benelux countries to ‘collaborate in measures of mutual assistance in the event of a renewal of German aggression’, whereas European politicians were becoming markedly more aware of their helpless exposure to Soviet pressure. In this respect they were as vulnerable as ever: as Dirk Stikker, the Dutch Foreign Minister, would note in retrospect, ‘We in Europe had only a verbal pledge from President Truman of American support.’
It was the British who initiated a new approach to Washington. In a speech to Parliament on January 22nd 1948, Bevin had committed Britain to engagement with her continental neighbours in a common defense strategy, a ‘Western European Union’, on the grounds that British security needs were no longer separable from those of the continent—a significant break with past British thinking. This western European Union was officially inaugurated with the Brussels Pact, but as Bevin explained to Marshall in a message of March 11th, such an arrangement would be incomplete unless extended to the concept of North Atlantic security as a whole—a point to which Marshall was all the more sympathetic because Stalin was just then applying considerable pressure on Norway to get it to sign a ‘nonaggression’ pact with the Soviet Union.
> At Bevin’s urging, then, secret discussions took place in Washington between British, US and Canadian representatives to draft a treaty for Atlantic defense. On July 6th 1948, ten days after the start of the Berlin airlift and immediately following Yugoslavia’s expulsion from the Cominform, these talks were opened to other members of the Brussels Pact, among whom the French were not well pleased to discover that once again the ‘Anglo-Americans’ had been arranging the world behind their back. By April of the following year the North Atlantic Treaty Organisation (NATO) had been agreed and signed by the US, Canada, and ten European states.
NATO was a remarkable development. As late as 1947 few would have predicted that the United States would commit itself to a European military alliance. Indeed, there were many in the US Congress who were notably reluctant to approve Article V of the Treaty (which bound NATO members to come to one another’s aid if attacked), and the Treaty only secured Congressional approval, after three months of discussion, because it was represented as an Atlantic defense pact, rather than a Euro-American alliance. Indeed, when Dean Acheson presented the Administration’s case before the Senate, he took care to insist that America would not be deploying substantial ground forces in Europe.
And this was indeed the American intention. If the United States was committing itself to an entangling European alliance for the first time, it was because many people in Washington saw NATO much as they saw the Marshall Plan: as a device to help Europeans feel better about themselves and manage their own affairs—in this case, their own defense. In itself, NATO changed nothing in the European military balance: of the fourteen divisions stationed in Western Europe, only two were American. The Western allies were still outnumbered on the ground 12:1. The US Chiefs of Staff in 1949 calculated that it would be 1957 at the earliest before an effective defense on the Rhine could be mounted. It was by no means inappropriate that at the NATO Treaty-signing ceremony in Constitutional Hall, Washington, on April 9th 1949, the band played ‘I’ve Got Plenty of Nothing . . . ’.
Nevertheless, things looked rather different from the European side. The Americans did not ascribe much significance to military alliances; but Europeans, as Walter Bedell Smith advised his colleagues on the State Department Policy Planning Staff, ‘do attach far more importance to the scrap of paper pledging support than we ever have.’ This was not perhaps altogether surprising—they had nothing else. The British, at least, were still an island. But the French, like everyone else, were as vulnerable as ever: to the Germans and now to the Russians as well.
NATO thus had a double attraction for Paris especially: it would place the line of defense against Soviet forces further east than hitherto—as Charles Bohlen had observed, some months before the Treaty was signed, ‘the one faint element of confidence which [the French] cling to is the fact that American troops, however strong in number, stand between them and the Red Army.’ And perhaps more important, it would serve as a reinsurance policy against German revanchism. Indeed it was only because of the promise of NATO protection that the French government, with the outcome of World War One still firmly in mind, conceded its approval for a West German state.
The French thus welcomed NATO as the guarantee against a revived Germany that they had been unable to obtain by diplomatic means in the previous three years. The Dutch and Belgians also saw in NATO an impediment to future German revanchism. The Italians were included to help shore up Alcide De Gasperi’s domestic support against Communist critics. The British regarded the NATO Treaty as a signal achievement in their struggle to keep the US engaged in Europe’s defense. And the Truman Administration sold the agreement to Congress and the American people as a barrier to Soviet aggression in the North Atlantic. Hence the famous bon mot of Lord Ismay, who took up his post as NATO’s first Secretary General in 1952: the purpose of the North Atlantic Treaty Organization was ‘to keep the Russians out, the Americans in and the Germans down.’
NATO was a bluff. As Denis Healey, a future British defense minister, observed in his memoirs, ‘for most of the Europeans, NATO was worthless unless it could prevent another war; they were not interested in fighting one’. The originality of the Treaty lay not so much in what it could achieve but in what it represented: like the Marshall Plan—and the Brussels Treaty from which it sprang—NATO illustrated the most significant change that had come over Europe (and the US) as a result of the war—a willingness to share information and cooperate in defense, security, trade, currency regulations and much else. An integrated Allied command in peacetime, after all, was an unheard of departure from practice.
But NATO did not leap fully formed from the agreements of 1949. In the spring of 1950 Washington was still worrying about how to explain to the French and other Europeans that the only realistic hope for West European defense was to rearm Germany, a subject that made everyone uneasy and was thought likely to provoke an unpredictable response from Stalin. In any case, no-one wanted to spend precious resources on rearmament. The appeal of neutrality—as an alternative to defenseless confrontation—was growing, in Germany and France alike. If the Korean War had not broken out just at this moment (a reasonable counter-factual, since it nearly didn’t) the contours of recent European history might look very different indeed.
Stalin’s support for Kim Il Sung’s invasion of South Korea on June 25th 1950 was his most serious miscalculation of all. The Americans and West Europeans immediately drew the (erroneous) conclusion that Korea was a diversion or prelude, and that Germany would be next—an inference encouraged by Walter Ulbricht’s imprudent boast that the Federal Republic would be next to fall. The Soviet Union had successfully tested an atomic bomb just eight months earlier, leading American military experts to exaggerate Soviet preparedness for war; but even so, the budget increases requested in National Security Council paper #68 (presented on April 7th 1950) would almost certainly not have been approved but for the Korean attack.
The risk of a European war was greatly exaggerated, but not completely absent. Stalin was contemplating a possible assault—on Yugoslavia, not West Germany—but abandoned the idea in the face of Western rearmament. And just as the West misread the Soviet purpose in Korea, so Stalin—accurately advised by his intelligence services of the rapid US military build-up that followed—mistakenly assumed that the Americans had aggressive designs of their own on his sphere of control in eastern Europe. But none of these assumptions and miscalculations was clear at the time, and politicians and generals proceeded as best they could on the basis of limited information and past precedent.
The scale of Western rearmament was dramatic indeed. The US defense budget rose from $15.5 billion in August 1950 to $70 billion by December of the following year, following President Truman’s declaration of a National Emergency. By 1952-53 defense expenditure consumed 17.8 percent of the US GNP, compared with just 4.7 percent in 1949. In response to Washington’s request, America’s allies in NATO also increased their defense spending: after falling steadily since 1946, British defense costs rose to nearly 10 percent of GNP in 1951-52, growing even faster than in the hectic rearmament of the immediate pre-war years. France, too, increased defense spending to comparable levels. In every NATO member state, defense spending increased to a post-war peak in the years 1951-53.
The economic impact of this sudden leap in military investment was equally unprecedented. Germany especially was flooded with orders for machinery, tools, vehicles and other products that the Federal Republic was uniquely well-placed to supply, all the more so because the West Germans were forbidden to manufacture arms and could thus concentrate on everything else. West German steel output alone, 2.5 million tonnes in 1946 and 9 million tonnes in 1949, grew to nearly 15 million tonnes by 1953. The dollar deficit with Europe and the rest of the world fell by 65 percent in the course of a single year, as the United States spent huge sums overseas on arms, equipment stockpiles, military emplacements and troops. FIAT in Turin got its first American contracts, for ground-support jet aircraft (a contract
urged upon Washington for political reasons by its Rome embassy).
But the economic news was not all good. The British government was forced to divert public expenditure away from welfare services to meet its defense commitments, a choice that split the governing Labour Party and helped bring about its defeat at the elections of 1951. The cost of living in West Europe went up as government spending fuelled inflation—in France consumer prices rose 40 percent in the two years following the outbreak of war in Korea. The West Europeans, who had only just begun to reap the benefits of Marshall Aid, were clearly in no condition to sustain for very long what amounted to a war economy and the 1951 US Mutual Security Act recognized this, effectively closing out the Marshall Plan and transforming it into a programme of military assistance. By the end of 1951 the US was transferring nearly $5 billion of military support to Western Europe.
From a psychological boost to European confidence, NATO thus became a major military commitment, drawing on the seemingly limitless resources of the US economy and committing the Americans and their allies to an unprecedented peacetime build up of men and matériel. General Eisenhower returned to Europe as Supreme Allied Commander and Allied military headquarters and administrative facilities were established in Belgium and France. The North Atlantic Treaty Organisation was now, unambiguously, an alliance. Its primary task was what military planners called the ‘forward defense’ of Europe: i.e. confrontation with the Red Army in the middle of Germany. To perform this role, it was agreed at the NATO Council meeting in Lisbon in February 1952 that the alliance would need to raise at least ninety-six new divisions within two years.
