As post-World War 2 went into the era of the Cold War, a new phrase entered our vocabulary; Dollar Diplomacy. On March 12, 1947, President Truman delivered an address to a joint session of Congress in answer to a British declaration it was no longer providing assistance to Greece of Turkey as of March 31.
At the time, the U.S. Government believed that the Soviet Union supported the Greek Communist war effort and worried that if the Communists prevailed in the Greek civil war, the Soviets would ultimately influence Greek policy. In fact, Soviet leader Joseph Stalin had deliberately refrained from providing any support to the Greek Communists and had forced Yugoslav Prime Minister Josip Tito to follow suit, much to the detriment of Soviet-Yugoslav relations. However, a number of other foreign policy problems also influenced President Truman’s decision to actively aid Greece and Turkey. In 1946, four setbacks, in particular, had served to effectively torpedo any chance of achieving a durable post-war rapprochement with the Soviet Union: the Soviets’ failure to withdraw their troops from northern Iran in early 1946 (as per the terms of the Tehran Declaration of 1943); Soviet attempts to pressure the Iranian Government into granting them oil concessions while supposedly fomenting irredentism by Azerbaijani separatists in northern Iran; Soviet efforts to force the Turkish Government into granting them base and transit rights through the Turkish Straits; and, the Soviet Government’s rejection of the Baruch plan for international control over nuclear energy and weapons in June 1946.
In light of the deteriorating relationship with the Soviet Union and the appearance of Soviet meddling in Greek and Turkish affairs, the withdrawal of British assistance to Greece provided the necessary catalyst for the Truman Administration to reorient American foreign policy. Accordingly, in his speech, President Truman requested that Congress provide $400,000,000 worth of aid to both the Greek and Turkish Governments and support the dispatch of American civilian and military personnel and equipment to the region.
Truman justified his request on two grounds. He argued that a Communist victory in the Greek Civil War would endanger the political stability of Turkey, which would undermine the political stability of the Middle East. This could not be allowed in light of the region’s immense strategic importance to U.S. national security. Truman also argued that the United States was compelled to assist “free peoples” in their struggles against “totalitarian regimes,” because the spread of authoritarianism would “undermine the foundations of international peace and hence the security of the United States.” In the words of the Truman Doctrine, it became “the policy of the United States to support free peoples who are resisting attempted subjugation by armed minorities or by outside pressures.”
Truman argued that the United States could no longer stand by and allow the forcible expansion of Soviet totalitarianism into free, independent nations, because American national security now depended upon more than just the physical security of American territory. Rather, in a sharp break with its traditional avoidance of extensive foreign diplomacy commitments beyond the Western Hemisphere during peacetime, the Truman Doctrine committed the United States to actively offering assistance to preserve the political integrity of democratic nations when such an offer was deemed to be in the best interest of the United States.
This session of Congress, from March 23, 1947 offers a glimpse into the debating process and sheds light on the what was becoming an increasing dependence on U.S. aid in lieu of potential Communist influence throughout Europe and how diplomacy was working in the potential conflict. Here is a half-hour excerpt from the hours-long proceedings as aired by NBC Radio.