talist’s economy was rising in Western Europe and Industrial production rose 200%.Truman formed a new trading policy called GATT (General Agreement on Tariffs and Trade) which opened all of the 17 nations in Europe to American trade. Western Europe became a major center of American Trade and investment. Basically the Americans bought off the European countries to deter them from communism and to ensure the strength of the Untied States. The Soviet Union felt that the United States was trying to rebuild Germany to incorporate it in an anti-Soviet block. In retaliation the Soviets placed a blockade in Germany to stop trade with the Untied States. The Berlin crisis was an opportunity for Truman to show the Soviets that the United States wasn’t easily defeated. Truman along with Great Britain sent over 2 million tons of supplies to allies in Berlin. In May of 1949 the Soviets conceded defeat and lifted their blockade. The United States continued to use their power in Europe for their benefit. The Untied States, Canada, and ten European nations formed a mutual defense pact called NATO (North Atlantic Treaty Organization) which an attack against one of them would be an attack against all of them, all for one, one for all. The Americans were able to keep Russia out, Untied States in, and Germany down which was perfect for them. They were the leading nation and would take any challenge the soviets would give them. Eventually NATO extended to West Germany, the Soviet Union responded by creating a counterpart, the Warsaw Pact witch included East Germany. This further set the division of Europe. Winston Churchill said, “an iron curtain has descended across the European Continent.” Soviet Union sponsored communist controlled North Korea under Kim Sung who attacked South Korea under the unpopular dictatorship of Syngman Rhee. George Kennan regarded it as a civil war, nothing that the Untied States needed to get involved i...
