[42], One of the more significant examples of the implementation of containment was US intervention in the Korean War. It appeared that any enemy of the Baghdad regime was a potential ally of the United States. Though the parties were technically at … Bullitt arrived in Moscow with high hopes for Soviet–American relations, but his view of the Soviet leadership soured on closer inspection. The U.S. emerged much richer than any other nation and dominated the world economy; it had a baby boom and by 1950 its gross domestic product per person was much higher than that of any of the other powers. [28], The Soviet Union sought to dominate the internal affairs of countries in its border regions. October 24, 1948: Bernard Baruch coins the term “Cold War” to describe the hostilities that exist between the West, led by the United States, and the East, led by the Soviet Union. [169] Both sides were selling armaments to gain influence. [67] After World War II, US officials guided Western European leaders in establishing their own secret security force to prevent subversion in the Western bloc, which evolved into Operation Gladio. [34], Some historians have argued that the Cold War began when the US negotiated a separate peace with Nazi SS General Karl Wolff in northern Italy. [371] Although Soviet casualties are difficult to estimate, as a share of gross national product the financial cost for the Soviet Union was much higher than that incurred by the United States. [91], Stalin believed that economic integration with the West would allow Eastern Bloc countries to escape Soviet control, and that the US was trying to buy a pro-US re-alignment of Europe. In July 1947, President Truman rescinded on “national security grounds” the directive that ordered the U.S. occupation forces to “take no steps looking toward the economic rehabilitation of Germany.” A new directive recognized that “[a]n orderly, prosperous Europe requires the economic contributions of a stable and productive Germany.”. Near the end of that term, the Treasury Department requested that the State Department explain recent Soviet behavior, such as its disinclination to endorse the International Monetary Fund and the World Bank. The first phase of the Cold War began immediately after the end of the Second World War in 1945. [235] In 1964, the Brazilian military overthrew the government of president João Goulart with US backing. Soviet agents took control of the media, especially radio; they quickly harassed and then banned all independent civic institutions, from youth groups to schools, churches and rival political parties. [91] Meanwhile, Khrushchev broadened Moscow's policy to establish ties with India and other key neutral states. In Central and Eastern Europe, the end of the Cold War has ushered in an era of economic growth and an increase in the number of liberal democracies, while in other parts of the world, such as Afghanistan, independence was accompanied by state failure. He described the Soviet incursion as "the most serious threat to the peace since the Second World War". These texts provided justification for the Truman administration’s new anti-Soviet policy. [249], In East Africa, a territorial dispute between Somalia and Ethiopia over the Ogaden region resulted in the Ogaden War. The military governor Lieutenant-General John R. Hodge later said that "one of our missions was to break down this Communist government. [92] Cominform faced an embarrassing setback the following June, when the Tito–Stalin Split obliged its members to expel Yugoslavia, which remained communist but adopted a non-aligned position. According to John Lewis Gaddis, Khrushchev rejected Stalin's "belief in the inevitability of war," however. The USSR perceived itself at perpetual war with capitalism. [133] In the early 1950s (a period sometimes known as the "Pactomania"), the US formalized a series of alliances with Japan, Australia, New Zealand, Thailand and the Philippines (notably ANZUS in 1951 and SEATO in 1954), thereby guaranteeing the United States a number of long-term military bases. Nonetheless, at the Potsdam Conference, the Allies assigned parts of Poland, Finland, Romania, Germany, and the Balkans to Soviet control or influence. 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