The Reverse Course ( 逆コース , gyaku kōsu ) is the name commonly given to a shift in the policies of the U.S. government and the U.S.-led Allied occupation of Japan as they sought to reform and rebuild Japan after World War II . The Reverse Course began in 1947, at a time of rising Cold War tensions. As a result of the Reverse Course, the emphasis of Occupation policy shifted from the demilitarization and democratization of Japan to economic reconstruction and remilitarization of Japan in support of U.S. Cold War objectives in Asia. This involved relaxing and in some cases even partially undoing earlier reforms the Occupation had enacted in 1945 and 1946. As a U.S. Department of State official history puts it, "this 'Reverse Course'… focused on strengthening, not punishing, what would become a key Cold War ally."
111-592: Japan surrendered to the Allied Powers on August 15, 1945, and officially exchanged instruments of surrender in Tokyo Bay on September 2, by which time thousands of Allied Occupation forces had already begun landing on Japanese soil. The Occupation was commanded by American general Douglas MacArthur , whose office was designated the Supreme Command for the Allied Powers (SCAP). In the initial phase of
222-773: A Democrat from Georgia, "there is no prospect of ever winning Russian cooperation." Despite its reservations, the 80th Congress implemented Truman's requests, further escalating the Cold War with the USSR. Truman signed the Economic Cooperation Act into law on April 3, 1948; the Act established the Economic Cooperation Administration (ECA) to administer the program. ECA was headed by economic cooperation administrator Paul G. Hoffman . In
333-640: A concern was the Czechoslovak eagerness to accept the aid, as well as indications of a similar Polish attitude. Soviet Foreign Minister Vyacheslav Molotov left Paris, rejecting the plan. After that, statements were made suggesting a future confrontation with the West, calling the United States both a "fascizing" power and the "center of worldwide reaction and anti-Soviet activity", with all U.S.-aligned countries branded as enemies. The Soviets blamed
444-513: A follow-up conversation with Stalin, he explained that an armed struggle would be impossible and that the struggle against the Marshall Plan was to be waged under the slogan of national independence. Congress, under the control of conservative Republicans, agreed to the program for multiple reasons. The 20-member conservative isolationist Senate wing of the party, based in the rural Midwest and led by Senator Kenneth S. Wherry (R-Nebraska),
555-587: A just and honorable peace but—even worse—has actively sought to prevent it. Members of the Republican-controlled 80th Congress (1947–1949) were skeptical. "In effect, he told the Nation that we have lost the peace, that our whole war effort was in vain.", noted Representative Frederick Smith of Ohio. Others thought he had not been forceful enough to contain the USSR. "What [Truman] said fell short of being tough", noted Representative Eugene Cox ,
666-614: A larger meeting was convened in Paris. Every country in Europe was invited, with the exceptions of Spain (a World War II neutral that had sympathized with the Axis powers ) and the small states of Andorra , San Marino , Monaco , and Liechtenstein . The Soviet Union was invited with the understanding that it would likely refuse. The states of the future Eastern Bloc were also approached, and Czechoslovakia and Poland agreed to attend. In one of
777-773: A military. At the same time, however, Cold War tensions were already ramping up in Europe, where the Soviet occupation of Eastern European countries led Winston Churchill to give his 1946 " Iron Curtain " speech, as well as in Asia, where the tide was turning in favor of the Communists in the Chinese Civil War . These shifts in the geo-political environment led to a profound shift in U.S. government and Allied Occupation thinking about Japan, and rather than focusing on punishing and weakening Japan for its wartime transgressions,
888-664: A moderating effect on future militarism, legalizing the Communist and Socialist parties, encouraging the formation of labor unions, and extending the right to vote to women. The crowning achievement of the first phase of the Occupation was the promulgation at SCAP's behest in 1947 of a new Constitution of Japan . Most famously Article 9 of the Japanese Constitution explicitly disavows war as an instrument of state policy and promises that Japan will never maintain
999-666: A new currency. Taxes were also reduced and Germany prepared to remove economic barriers. During the first three years of occupation of Germany, the Allied occupational authorities vigorously pursued a military disarmament program in Germany , partly by removal of equipment but mainly through an import embargo on raw materials, part of the Morgenthau Plan approved by President Franklin D. Roosevelt . Historian Nicholas Balabkins concluded that "as long as German industrial capacity
1110-458: A percent. Graham T. Allison states that "the Marshall Plan has become a favorite analogy for policy-makers. Yet few know much about it." Some new studies highlight not only the role of economic cooperation but approach the Marshall Plan as a case concerning strategic thinking to face some typical challenges in policy, as problem definition, risk analysis, decision support to policy formulation, and program implementation. In 1947, two years after
1221-527: A pre-condition of ending the Occupation, the United States required the Japanese government to agree to the U.S.-Japan Security Treaty , which allowed the United States to continue to maintain military forces on Japanese soil. This locked Japan into a newly-forged U.S.-Japan Alliance , and ensured that the United States would continue to exercise an outsized influence on Japanese government policies both foreign and domestic. Historian Nick Kapur has argued that
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#17327659115971332-455: A proposal than a plan, it was a challenge to European leaders to cooperate and coordinate. It asked Europeans to create their own plan for rebuilding Europe, indicating the United States would then fund this plan. The administration felt that the plan would likely be unpopular among many Americans, and the speech was mainly directed at a European audience. In an attempt to keep the speech out of American papers, journalists were not contacted, and on
1443-636: A quick European response to (and acceptance of) the offer, which led to the creation of the Committee of European Economic Co-operation . The two agreed that it would be necessary to invite the Soviets as the other major allied power. Marshall's speech had explicitly included an invitation to the Soviets, feeling that excluding them would have been a sign of distrust. State Department officials, however, knew that Stalin would almost certainly not participate and that any plan that would send large amounts of aid to
1554-476: A small factor in their economy. Much of the Marshall Plan aid would be used by the Europeans to buy manufactured goods and raw materials from the United States and Canada. Most of Europe's economies were recovering slowly, as unemployment and food shortages led to strikes and unrest in several nations. Agricultural production was 83% of 1938 levels, industrial production was 88%, and exports 59%. Exceptions were
1665-574: A strategic partner, and in exchange, the Federal government would purchase stock in the US businesses to reimburse them. In this way, Europe would receive the aid it needed, American businesses would receive capital investment, and the federal government would make a profit when the stock was sold. British Foreign Secretary Ernest Bevin heard Marshall's radio broadcast speech and immediately contacted French Foreign Minister Georges Bidault to begin preparing
1776-454: A sweeping land reform that made tenant farmers the new owners of the lands they had previously rented, in a blow against a previously powerful landlord class that had supported the wartime regime, and sought to unravel the wartime Japanese police state by breaking up the national police force into small American-style police forces controlled at the local level. SCAP also sought to empower previously marginalized groups that it believed would have
1887-584: Is a bay located in the southern Kantō region of Japan spanning the coasts of Tokyo , Kanagawa Prefecture , and Chiba Prefecture . Tokyo Bay is connected to the Pacific Ocean by the Uraga Channel . The Tokyo Bay region is the most populous and the largest industrialized area in Japan. In ancient times, the Japanese knew Tokyo Bay as the uchi-umi ( 内海 ) , which means "inner sea" . By
1998-652: Is enormous in Greater Tokyo , there is little room for traditional garbage disposal sites; waste is rigorously sorted at the household, much of it is turned into ash and further recycled into bay landfill. The Tokyo Bay Aqua-Line bridge-tunnel crosses Tokyo Bay between Kawasaki and Kisarazu; Tokyo-Wan Ferry also crosses the bay toward the Uraga Channel between Kurihama (in Yokosuka) and Kanaya (in Futtsu on
2109-525: Is known as Nakanose , and has a depth of 20 m (66 ft). North of this area the bay has a depth of 40 m (130 ft) and an uncomplicated underwater topography . Areas south of Nakanose are significantly deeper moving towards the Pacific Ocean. The only natural island in Tokyo Bay is Sarushima (0.055 km (0.021 sq mi)) at Yokosuka , Kanagawa Prefecture. Sarushima
2220-401: Is logical that the United States should do whatever it is able to do to assist in the return of normal economic health to the world, without which there can be no political stability and no assured peace. Our policy is not directed against any country, but against hunger, poverty, desperation and chaos. Any government that is willing to assist in recovery will find full co-operation on the part of
2331-855: The Azuchi–Momoyama period (1568–1600) the area had become known as Edo Bay ( 江戸湾 , Edo-wan ) after the city of Edo . The bay took its present name in modern times, after the Imperial court moved to Edo and renamed the city Tokyo in 1868. Tokyo Bay juts prominently into the Kantō Plain . It is surrounded by the Bōsō Peninsula in Chiba Prefecture to the east and the Miura Peninsula in Kanagawa Prefecture to
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#17327659115972442-603: The Comecon . In a 1947 speech to the United Nations, Soviet deputy foreign minister Andrei Vyshinsky said that the Marshall Plan violated the principles of the United Nations. He accused the United States of attempting to impose its will on other independent states while at the same time using economic resources distributed as a relief to needy nations as an instrument of political pressure. Although all other communist European countries had deferred to Stalin and rejected
2553-651: The Democrats controlled the White House with Harry S. Truman as president. Some businessmen feared the Marshall Plan, unsure whether reconstructing European economies and encouraging foreign competition was in the US' best interests. The plan was largely the creation of State Department officials, especially William L. Clayton and George F. Kennan , with help from the Brookings Institution , as requested by Senator Arthur Vandenberg , chairman of
2664-688: The Japan Self-Defense Forces and laid the foundations of the U.S.-Japan alliance , ensuring that Japan would remain firmly in the American camp throughout the Cold War. In fact, a remilitarized and strengthened Japan made it the cornerstone of U.S. security policy in East Asia. In the economic realm, the incomplete suppression of the zaibatsu industrial conglomerates allowed them to partially reform as "informal associations" known as keiretsu . In Japanese domestic politics,
2775-634: The Keiyō Industrial Zone in Chiba Prefecture along the north and east coasts of Tokyo Bay after World War II . The development of the two zones has resulted in the largest industrialized area in Japan. The large-scale industrial zones of the coastal Tokyo region have caused significant air and water pollution. The Port of Yokosuka contains the naval bases of the Japan Maritime Self-Defense Force and
2886-620: The Meiji and Taishō periods . After World War II these islands were converted to residential or recreational use. Odaiba , also known as Daiba , was one of six artificial islands constructed in 1853 as a fortification to protect the Tokugawa shogunate at Edo , and was known as the Shinagawa Daiba. After World War II Odaiba was incorporated into Tokyo and redeveloped for commercial and recreational use. Before World War II, Yumenoshima
2997-468: The Molotov Plan . However, the plan was said to have not worked as well due to the USSR particularly having been hit hard by the effects of World War II . The phrase "equivalent of the Marshall Plan" is often used to describe a proposed large-scale economic rescue program. The reconstruction plan, developed at a meeting of the participating European states, was drafted on June 5, 1947. It offered
3108-533: The National Police Agency . Finally in 1955, de-purged conservative politicians, at U.S. urging and with the covert backing of the CIA, united to form the powerful Liberal Democratic Party , which has ruled Japan almost continuously since that time. The Reverse Course had far reaching consequences. In terms of global security, it paved the way for the de facto remilitarization of Japan in the form of
3219-696: The National Police Reserve (NPR) in 1950 and the Coastal Safety Force (CSF) in 1952. They later became the ground and maritime branches of the Japan Self Defense Forces (JSDF) in 1954, respectively. SCAP also attempted to weaken the labor unions they had recently empowered, most notably issuing an edict stripping public-sector workers of their right to go on strike. The climax of the Reverse course came in
3330-717: The Port of Chiba , the Port of Tokyo , the Port of Kawasaki, the Port of Yokosuka , the Port of Kisarazu , rank not only as the busiest ports in Japan, but also in the Asia-Pacific Region . Industrial zones on Tokyo Bay were developed as early as the Meiji era (1868–1912). The Keihin Industrial Zone was built on reclaimed land in Kanagawa Prefecture to the west of Tokyo. This was expanded to
3441-601: The Soviet Union refused Plan benefits and also blocked benefits to Eastern Bloc countries, such as Romania and Poland . The United States provided similar aid programs in Asia, but they were not part of the Marshall Plan. Its role in rapid recovery has been debated. The Marshall Plan's accounting reflects that aid accounted for about 3% of the combined national income of the recipient countries between 1948 and 1951, which means an increase in GDP growth of less than half
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3552-616: The United States Forces Japan . Tokyo Bay was the venue for the Perry Expedition , which involved two separate trips from 1853 to 1854 between the United States and Japan by Commodore Matthew Perry (1794–1858). Perry sailed on his four " Black Ships " into Edo Bay on July 8, 1853, and began negotiations with the Tokugawa shogunate that led to a peace and trade treaty between the United States and Japan in 1854. The Japanese Instrument of Surrender at
3663-634: The United States Senate Committee on Foreign Relations . Marshall spoke of an urgent need to help the European recovery in his address at Harvard University in June 1947. The purpose of the Marshall Plan was to aid in the economic recovery of nations after World War II and secure US geopolitical influence over Western Europe. To combat the effects of the Marshall Plan, the USSR developed its own economic recovery program, known as
3774-401: The "critical margin" on which other investment needed for European recovery depended. The Marshall Plan was one of the first elements of European integration , as it erased trade barriers and set up institutions to coordinate the economy on a continental level—that is, it stimulated the total political reconstruction of Western Europe. Belgian economic historian Herman Van der Wee concludes
3885-587: The American and British proposals. During negotiations with the French and the British, Molotov received a ciphered telegram from Vyshinsky, Soviet Minister of Foreign Affairs. The official position of the Soviet Union, on Stalin's orders, had changed dramatically, and now Moscow's representatives in Paris were forcefully rejecting the Marshall Plan. Due to this change, Molotov rejected the counteroffer to scrap
3996-599: The American economy as well. Major newspapers were highly supportive, including such conservative outlets as Time magazine . Vandenberg made sure of bipartisan support on the Senate Foreign Relations Committee. The Solid Democratic South was highly supportive, the upper Midwest was dubious, but heavily outnumbered. The plan was opposed by conservatives in the rural Midwest, who opposed any major government spending program and were highly suspicious of Europeans. The plan also had some opponents on
4107-613: The British-American "Bizonia" and to include the Soviet zone within the newly constructed Germany. Marshall was particularly discouraged after personally meeting with Stalin to explain that the United States could not possibly abandon its position on Germany, while Stalin expressed little interest in a solution to German economic problems. After the adjournment of the Moscow conference following six weeks of failed discussions with
4218-562: The Chiba side). Tokyo Bay was a historical center of the fishing industry, a source of shellfish , and other aquaculture . These industries decreased with the industrialization of the Tokyo Bay region early in the 20th century, and almost completely ceased with the construction of the Keihin and Keiyō industrial zones directly after World War II . A number of Japan's most important ports are located in Tokyo Bay. The Port of Yokohama ,
4329-545: The Czechoslovakian and Polish delegations were prevented from attending the Paris meeting. The other Eastern Bloc states immediately rejected the offer. Finland also declined, to avoid antagonizing the Soviets (see also Finlandization ). The Soviet Union's "alternative" to the Marshall plan which was purported to involve Soviet subsidies and trade with western Europe, became known as the Molotov Plan , and later,
4440-627: The Eastern Bloc, Truman asked Congress to restore a peacetime military draft and to swiftly pass the Economic Cooperation Act , the name given to the Marshall Plan. Of the Soviet Union Truman said, "The situation in the world today is not primarily the result of the natural difficulties which follow a great war. It is chiefly due to the fact that one nation has not only refused to cooperate in the establishment of
4551-430: The European economy and presented a rationale for US aid: The modern system of the division of labor upon which the exchange of products is based is in danger of breaking down. ... Aside from the demoralizing effect on the world at large and the possibilities of disturbances arising as a result of the desperation of the people concerned, the consequences to the economy of the United States should be apparent to all. It
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4662-654: The Financing of Post-War Business and Industry in the United Kingdom and Republic of France." Crawford's thesis was read by future Supreme Court Justice Abe Fortas and presented to President Truman as the solution for Marshall's proposal. It was Crawford's thesis which provided the key to selling the Marshall Plan to Congress by laying out the idea of "strategic partnerships." Instead of the Federal government granting money directly to Europe, American businesses would provide technology, expertise, and materials to Europe as
4773-552: The German economy." The new plan JCS 1779 stated that "an orderly and prosperous Europe requires the economic contributions of a stable and productive Germany." The restrictions placed on German heavy industry production were partly ameliorated; permitted steel production levels were raised from 25% of pre-war capacity to a new limit placed at 50% of pre-war capacity. With a communist, although non-Soviet, insurgency threatening Greece, and Britain financially unable to continue its aid,
4884-572: The Kremlin from whom he received instructions, also castigated communist parties in France and Italy for collaboration with those countries' domestic agendas. Zhdanov warned that if they continued to fail to maintain international contact with Moscow to consult on all matters, "extremely harmful consequences for the development of the brother parties' work" would result. Party rules prevented Italian and French communist leaders from pointing out that it
4995-445: The Marshall Plan was a "great success": It gave a new impetus to reconstruction in Western Europe and made a decisive contribution to the renewal of the transport system, the modernization of industrial and agricultural equipment, the resumption of normal production, the raising of productivity, and the facilitating of intra-European trade. By the end of World War II, much of Europe was devastated. Sustained aerial bombardment during
5106-448: The Nazis, had long been closely linked to the German economy and felt their prosperity depended on its revival. The Scandinavian nations, especially Sweden , insisted that their long-standing trading relationships with the Eastern Bloc nations not be disrupted and that their neutrality not be infringed. The United Kingdom insisted on special status as a longstanding belligerent during the war, concerned that if it were treated equally with
5217-460: The Occupation, from 1945 to 1946, SCAP had pursued an ambitious program of social and political reform, designed to ensure that Japan would never again be a threat to world peace. Among other reforms, SCAP worked with Japanese leaders to disband the Japanese military, purge wartime leaders from government posts , and break up the powerful zaibatsu industrial conglomerates that had supported Japan's drive for empire in Asia. In addition, SCAP instituted
5328-469: The President announced his Truman Doctrine on March 12, 1947, "to support free peoples who are resisting attempted subjugation by armed minorities or by outside pressures", with an aid request for consideration and decision, concerning Greece and Turkey. Herbert Hoover noted that "The whole economy of Europe is interlinked with the German economy through the exchange of raw materials and manufactured goods. The productivity of Europe cannot be restored without
5439-403: The Reverse Course continued even after 1952 with the covert and overt support of the United States, working in tandem with sympathetic conservative governments in Japan. In 1954, the National Police Reserve was reformulated into the Japan Self-Defense Forces , a formal military in all but name. That same year, with U.S. encouragement, a Police Law was passed which re-centralized police forces under
5550-410: The Reverse Course resembled the Marshall Plan in Europe, especially in that it prioritized economic reconstruction while attempting to limit the influence of communism. The Occupation of Japan officially came to an end with the enactment of the San Francisco Peace Treaty on April 28, 1952. This meant that the U.S.-led Occupation could no longer directly dictate policy to Japanese leaders. However, as
5661-522: The Reverse Course significantly weakened left-wing forces and strengthened conservatives, laying the foundations for decades of conservative rule. At the same time, it did not completely destroy leftist forces that had been deliberately unleashed in the Occupation's early stages, setting the stage for extremely contentious political struggles and labor strife in the 1950s, culminating in the massive Anpo protests and Miike Coal Mine Strike , both in 1960. Tokyo Bay Tokyo Bay ( 東京湾 , Tōkyō-wan )
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#17327659115975772-487: The Soviet Union called a meeting of nine European communist parties at the resort town of Szklarska Poręba in southwest Poland. A Communist Party of the Soviet Union (CPSU) report was read at the outset to set the heavily anti-Western tone, stating now that "international politics is dominated by the ruling clique of the American imperialists" which have embarked upon the "enslavement of the weakened capitalist countries of Europe". Communist parties were to struggle against
5883-548: The Soviet ambassador in Washington suspected that the Marshall Plan could lead to the creation of an anti-Soviet bloc, Stalin was open to the offer. He directed that—in negotiations to be held in Paris regarding the aid—countries in the Eastern Bloc should not reject economic conditions being placed upon them. Stalin only changed his outlook when he learned that (a) credit would only be extended under conditions of economic cooperation, and (b) aid would also be extended to Germany in total, an eventuality which Stalin thought would hamper
5994-414: The Soviets in their occupied zone. Molotov refrained from supplying accounts of Soviet assets. The Soviets took a punitive approach, pressing for a delay rather than an acceleration in economic rehabilitation, demanding unconditional fulfillment of all prior reparation claims, and pressing for progress toward nationwide socioeconomic transformation. After six weeks of negotiations, Molotov rejected all of
6105-408: The Soviets regarding a potential German reconstruction, the United States concluded that a solution could not wait any longer. To clarify the American position, a major address by Secretary of State George Marshall was planned. Marshall gave the address at Harvard University on June 5, 1947. He offered American aid to promote European recovery and reconstruction. The speech described the dysfunction of
6216-420: The Soviets was unlikely to get Congressional approval. Speaking at the Paris Peace Conference on October 10, 1946, Molotov had already stated Soviet fears: "If American capital was given a free hand in the small states ruined and enfeebled by the war [it] would buy up the local industries, appropriate the more attractive Romanian, Yugoslav ... enterprises and would become the master in these small states." While
6327-414: The Soviets' ability to exercise influence in western Germany. Initially, Stalin maneuvered to kill the plan, or at least hamper it using destructive participation in the Paris talks regarding conditions. He quickly realized, however, that this would be impossible after Molotov reported—following his arrival in Paris in July 1947—that conditions for the credit were non-negotiable. Looming as just as large
6438-453: The US presence in Europe by any means necessary, including sabotage. The report further claimed that "reactionary imperialist elements throughout the world, particularly in the United States, in Britain and France, had put particular hope on Germany and Japan, primarily on Hitlerite Germany—first as a force most capable of striking a blow at the Soviet Union". Referring to the Eastern Bloc, the report stated that "the Red Army's liberating role
6549-450: The United Kingdom, the Netherlands and France, where by the end of 1947 production had already been restored to pre-war levels before the Marshall Plan. Italy and Belgium would follow by the end of 1948. In Germany in 1945–46 housing and food conditions were bad, as the disruption of transport, markets, and finances slowed a return to normality. In the West, the bombing had destroyed 5,000,000 houses and apartments, and 12,000,000 refugees from
6660-455: The United States for communist losses in elections in Belgium, France, and Italy months earlier, in the spring of 1947. It claimed that "marshallization" must be resisted and prevented by any means and that French and Italian communist parties were to make maximum efforts to sabotage the implementation of the plan. In addition, Western embassies in Moscow were isolated, with their personnel being denied contact with Soviet officials. On July 12,
6771-496: The United States. Its purpose should be the revival of a working economy in the world so as to permit the emergence of political and social conditions in which free institutions can exist. Marshall was convinced that economic stability would provide political stability in Europe. He offered aid, but the European countries had to organize the program themselves. The speech, written at Marshall's request and guidance by Charles Bohlen contained virtually no details and no numbers. More
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#17327659115976882-423: The United States. These efforts had important effects, but they lacked any central organization and planning, and failed to meet many of Europe's more fundamental needs. Already in 1943, the United Nations Relief and Rehabilitation Administration (UNRRA) was founded to provide relief to areas liberated from Germany. UNRRA provided billions of dollars of rehabilitation aid and helped about 8 million refugees. It ceased
6993-430: The aid, the Yugoslavs, led by Josip Broz (Tito), initially went along and rejected the Marshall Plan. However, in 1948 Tito broke decisively with Stalin on other issues. Yugoslavia requested American aid. American leaders were internally divided, but finally agreed and began sending money on a small scale in 1949 and on a much larger scale in 1950–53. The American aid was not part of the Marshall Plan. In late September,
7104-565: The bay in Chiba Prefecture. Land reclamation has been carried out along the coast of Tokyo Bay since the Meiji period. Areas along the shore with a depth of less than 5 m (16 ft) are simplest to carry out landfill , and sand from the floor of Tokyo Bay is used for these projects. The topography of the shoreline of Tokyo Bay differs greatly from that of the pre-modern period due to ongoing land reclamation projects. Tokyo Bay includes about 249 km (96 sq mi) of reclaimed land area in 2012. Aggregate household waste production
7215-503: The bay. In a broader sense, Tokyo Bay includes the Uraga Channel. By this definition the bay opens from an area north of the straight line from Cape Tsurugisaki on the east of Miura Peninsula to Cape Sunosaki on the west of the Boso Peninsula. This area covers about 1,100 km (420 sq mi). The area of Tokyo Bay combined with the Uraga Channel covers 1,500 km (580 sq mi). The shoal between Cape Futtsu in Chiba Prefecture and Cape Honmaku in Yokohama
7326-399: The destruction of transportation left them economically isolated. None of these problems could be easily remedied, as most nations engaged in the war had exhausted their treasuries in the process. The only major powers whose infrastructure had not been significantly harmed in World War II were the United States and Canada. They were much more prosperous than before the war, but exports were
7437-409: The devastated continental powers, it would receive virtually no aid. The Americans were pushing the importance of free trade and European unity to form a bulwark against communism. The Truman administration, represented by William L. Clayton , promised the Europeans that they would be free to structure the plan themselves, but the administration also reminded the Europeans that implementation depended on
7548-472: The dollar value of the goods in local currency ("counterparts") into so-called ERP Special Accounts that were set up at the country's central bank. This way of operation held three advantages: the provision of U.S. goods to Europe without European dollar payments helped to narrow the dollar gap that strangled European reconstruction; the accumulated funds could be used for investments in long-term reconstruction (as happened in France and Germany) or for paying off
7659-424: The east had crowded in. Food production was two-thirds of the pre-war level in 1946–48, while normal grain and meat shipments no longer arrived from the East. The drop in food production can be attributed to a drought that killed a major portion of the wheat crop while a severe winter destroyed most of the wheat crop the following year. This caused most Europeans to rely on a 1,500-calorie-per-day diet. Furthermore,
7770-607: The end of World War II was signed on September 2, 1945, on board USS Missouri (BB-63) , which was anchored at 35° 21′ 17″ N 139° 45′ 36″ E. A flag from one of Commodore Perry's ships was flown in from the Naval Academy Museum and displayed at the ceremony. Marshall Plan The Marshall Plan (officially the European Recovery Program , ERP ) was an American initiative enacted in 1948 to provide foreign aid to Western Europe . The United States transferred $ 13.3 billion (equivalent to $ 173.8 billion in 2024) in economic recovery programs to Western European economies after
7881-429: The end of World War II . Replacing an earlier proposal for a Morgenthau Plan , it operated for four years beginning on April 3, 1948, though in 1951, the Marshall Plan was largely replaced by the Mutual Security Act . The goals of the United States were to rebuild war-torn regions, remove trade barriers , modernize industry , improve European prosperity and prevent the spread of communism . The Marshall Plan proposed
7992-493: The end of the war and the start of the plan that is counted separately from the Marshall Plan. The Marshall Plan was replaced by the Mutual Security Plan at the end of 1951; that new plan gave away about $ 7.5 billion annually until 1961 when it was replaced by another program. The ERP addressed each of the obstacles to postwar recovery. The plan looked to the future and did not focus on the destruction caused by
8103-559: The end of the war, industrialist Lewis H. Brown wrote, at the request of General Lucius D. Clay , A Report on Germany , which served as a detailed recommendation for the reconstruction of post-war Germany and served as a basis for the Marshall Plan. The initiative was named after United States Secretary of State George C. Marshall . The plan had bipartisan support in Washington, where the Republicans controlled Congress and
8214-489: The focus shifted to rebuilding and strengthening Japan as a potential ally in the emerging global Cold War . Meanwhile on the Japanese domestic front, rampant inflation, continuing hunger and poverty, and the rapid expansion of leftist parties and labor unions led Occupation authorities to fear that Japan was ripe for communist exploitation or even a communist revolution and to believe that conservative and anti-communist forces in Japan needed to be strengthened. An early sign of
8325-441: The form of the Soviet Union's offer of a lucrative trade agreement lasting for five years, a grant amounting to the approximate equivalent of $ 450 million (in 1948; the sum would have been $ 4.4 billion in 2014 ) in the form of long-term credit and loans and the provision of 200,000 tonnes of grain, heavy and manufacturing machinery and factories and heavy industries to Poland. The Marshall Plan participants were not surprised when
8436-406: The four years of the plan. Congress reflected public opinion, which resonated with the ideological argument that communism flourishes in poverty. Across America, multiple interest groups, including business, labor, farming, philanthropy, ethnic groups, and religious groups, saw the Marshall Plan as an inexpensive solution to a massive problem, noting it would also help American exports and stimulate
8547-464: The four years that the plan was in effect, the United States donated $ 17 billion (equivalent to $ 240.95 billion in 2023) in economic and technical assistance to help the recovery of the European countries that joined the Organisation for European Economic Co-operation . The $ 17 billion was in the context of a US GDP of $ 258 billion in 1948, and on top of $ 17 billion in American aid to Europe between
8658-517: The gigantic sums of money would be handled efficiently. Turning the plan into reality required negotiations among the participating nations. Sixteen nations met in Paris to determine what form the American aid would take, and how it would be divided. The negotiations were long and complex, with each nation having its own interests. France's major concern was that Germany not be rebuilt to its previous level of might. The Benelux countries (Belgium, Netherlands, and Luxembourg), despite also suffering under
8769-567: The harsh winter of 1946–47 . From July 1945 through June 1946, the United States shipped 16.5 million tons of food, primarily wheat, to Europe and Japan. It amounted to one-sixth of the American food supply and provided 35 trillion calories, enough to provide 400 calories a day for one year to 300 million people. Especially damaged was transportation infrastructure, as railways, bridges, and docks had been specifically targeted by airstrikes, while much merchant shipping had been sunk. Although most small towns and villages had not suffered as much damage,
8880-432: The industrial sector, plans for further antitrust actions against the remains of the old zaibatsu were scrapped, and some earlier antitrust policies were partially undone. MacArthur had originally planned to break up 325 Japanese companies, but in the end only 11 companies were dissolved. In the realm of self defense, the United States began pressuring Japan to eliminate Article 9 and remilitarize. To this end, SCAP established
8991-574: The large shipments of food stolen from occupied nations during the war no longer reached Germany. Industrial production fell more than half and reached pre-war levels at the end of 1949. While Germany struggled to recover from the destruction of the War, the recovery effort began in June 1948, moving on from emergency relief. The currency reform in 1948 was headed by the military government and helped Germany to restore stability by encouraging production. The reform revalued old currency and deposits and introduced
9102-576: The left, led by Henry A. Wallace , the former vice president. He said the plan was hostile to the Soviet Union, a subsidy for American exporters, and sure to polarize the world between East and West. However, opposition against the Marshall Plan was greatly reduced by the shock of the communist coup in Czechoslovakia in February 1948. The appointment of the prominent businessman Paul G. Hoffman as director reassured conservative businessmen that
9213-416: The most evident signs and reflections of tight Soviet control and domination over the region, Jan Masaryk , the foreign minister of Czechoslovakia, was summoned to Moscow and berated by Stalin for considering Czechoslovakia's possible involvement with and joining of the Marshall Plan. The prime minister of Poland, Józef Cyrankiewicz , was rewarded by Stalin for his country's rejection of the plan which came in
9324-580: The next two decades, Western Europe enjoyed unprecedented growth and prosperity, but economists are not sure what proportion was due directly to the ERP, what proportion indirectly, and how much would have happened without it. A common American interpretation of the program's role in European recovery was expressed by Paul Hoffman, head of the Economic Cooperation Administration, in 1949 when he told Congress Marshall aid had provided
9435-425: The one hand, and the anti-imperialist and democratic camp on the other". Although the Eastern Bloc countries, except Czechoslovakia, had immediately rejected Marshall Plan aid, Eastern Bloc communist parties were blamed for permitting even minor influence by non-communists in their respective countries during the run-up to the Marshall Plan. The meeting's chair, Andrei Zhdanov, who was in permanent radio contact with
9546-475: The operation of displaced persons camps in Europe in 1947; many of its functions were transferred to several UN agencies. After Marshall's appointment in January 1947, administration officials met with Soviet Foreign Minister Vyacheslav Molotov and others to press for an economically self-sufficient Germany, including a detailed accounting of the industrial plants, goods and infrastructure already removed by
9657-399: The plan's passage through Congress. A majority of Congress members were committed to free trade and European integration and were hesitant to spend too much of the money on Germany. However, before the Marshall Plan was in effect, France, Austria, and Italy needed immediate aid. On December 17, 1947, the United States agreed to give $ 40 million to France, Austria, China, and Italy. Agreement
9768-419: The plan, and thus be pulled out of the emerging Soviet bloc, but that did not happen. In January 1947, Truman appointed retired General George Marshall as Secretary of State. In July 1947 Marshall scrapped Joint Chiefs of Staff Directive 1067 , which was based on the Morgenthau Plan which had decreed "take no steps looking toward the economic rehabilitation of Germany [or] designed to maintain or strengthen
9879-479: The reduction of interstate barriers and the economic integration of the European Continent while also encouraging an increase in productivity as well as the adoption of modern business procedures. The Marshall Plan aid was divided among the participant states roughly on a per capita basis. A larger amount was given to the major industrial powers, as the prevailing opinion was that their resuscitation
9990-464: The restoration of Germany as a contributor to that productivity." Hoover's report led to a realization in Washington that a new policy was needed; "almost any action would be an improvement on current policy." In Washington, the Joint Chiefs declared that the "complete revival of German industry, particularly coal mining" was now of "primary importance" to American security. The United States
10101-531: The same aid to the Soviet Union and its allies , but they refused to accept it, under Soviet pressure (as was the case for Finland's rejection) as doing so would allow a degree of US control over the communist economies. Secretary Marshall became convinced Stalin had no interest in helping restore economic health in Western Europe. President Harry Truman signed the Marshall Plan on April 3, 1948, granting $ 5 billion in aid to 16 European nations. During
10212-474: The same day, Truman called a press conference to take away headlines. In contrast, Dean Acheson , an Under Secretary of State, was dispatched to contact the European media, especially the British media, and the speech was read in its entirety on the BBC . In the audience at Harvard was International Law and Diplomacy graduate student Malcolm Crawford, who had just written his Master's thesis entitled "A Blueprint for
10323-646: The same year, the participating countries (Austria, Belgium , Denmark, France, West Germany, the United Kingdom, Greece, Iceland , Ireland, Italy, Luxembourg , the Netherlands , Norway, Sweden, Switzerland , Turkey, and the United States) signed an accord establishing a master financial-aid-coordinating agency, the Organisation for European Economic Co-operation (later called the Organisation for Economic Co-operation and Development or OECD ), which
10434-551: The shift in SCAP's thinking came in January 1947 when MacArthur announced that he would not permit a massive, nationwide general strike that labor unions had scheduled for February 1. Thereafter, the broader shift in Occupation policies became more and more apparent. As part of the Reverse Course, thousands of conservative and nationalist wartime leaders were de-purged and allowed to reenter politics and government ministries. In
10545-620: The so-called " Red Purge " ( reddo pāji ) of 1950. The victory of the communists in China in 1949 and the outbreak of the Korean War in 1950 had heightened conservative fears that communism was on the march in Asia. Against this backdrop Japanese government and business leaders, with the encouragement of SCAP, purged tens of thousands of communists, alleged communists, and other leftists from government posts, private sector jobs, and teaching positions at schools and universities. In many ways,
10656-488: The view of the State Department under President Harry S Truman , the United States needed to adopt a definite position on the world scene or fear losing credibility. The emerging doctrine of containment (as opposed to rollback ) argued that the United States needed to substantially aid non-communist countries to stop the spread of Soviet influence. There was also some hope that the Eastern Bloc nations would join
10767-487: The war had badly damaged most major cities, and industrial facilities were especially hard-hit. Millions of refugees were in temporary camps. The region's trade flows had been thoroughly disrupted; millions were in refugee camps living on aid from the United States, which was provided by the United Nations Relief and Rehabilitation Administration and other agencies. Food shortages were severe, especially in
10878-419: The war. Much more important were efforts to modernize European industrial and business practices using high-efficiency American models, reducing artificial trade barriers, and instilling a sense of hope and self-reliance. By 1952, as the funding ended, the economy of every participant state had surpassed pre-war levels; for all Marshall Plan recipients, output in 1951 was at least 35% higher than in 1938. Over
10989-470: The west. The shore of Tokyo Bay consists of a diluvial plateau and is subject to rapid marine erosion . Sediments on the shore of the bay make for a smooth, continuous shoreline. In a narrow sense, Tokyo Bay is the area north of the straight line from Cape Kannon on the west of Miura Peninsula to Cape Futtsu on the east Bōsō Peninsula. This area covers about 922 km (356 sq mi) in 2012, reclamation projects continue to slowly shrink
11100-613: Was Stalin who had directed them not to take opposition stances in 1944. The French communist party, like others, was then to redirect its mission to "destroy capitalist economy" and that the Soviet Communist Information Bureau ( Cominform ) would take control of the French Communist Party's activities to oppose the Marshall Plan. When they asked Zhdanov if they should prepare for armed revolt when they returned home, he did not answer. In
11211-441: Was already spending a great deal to help Europe recover. Over $ 14 billion was spent or loaned during the postwar period through the end of 1947 and is not counted as part of the Marshall Plan. Much of this aid was designed to restore infrastructure and help refugees. Britain, for example, received an emergency loan of $ 3.75 billion. The United Nations also launched a series of humanitarian and relief efforts almost wholly funded by
11322-430: Was complemented by an upsurge of the freedom-loving peoples' liberation struggle against the fascist predators and their hirelings." It argued that "the bosses of Wall Street" were "tak[ing] the place of Germany, Japan, and Italy". The Marshall Plan was described as "the American plan for the enslavement of Europe". It described the world now breaking down "into basically two camps—the imperialist and antidemocratic camp on
11433-468: Was constructed in 1985 and is home to Yokohama Hakkeijima Sea Paradise . Other artificial islands include Heiwa , Katsushima , Shōwa , Keihin , and Higashiōgi islands. Numerous rivers empty into Tokyo Bay, and all provide water for residential and industrial areas along the bay. The Tama and Sumida rivers empty into the bay at Tokyo. The Edo River empties into Tokyo Bay between Tokyo and Chiba Prefecture. The Obitsu and Yōrō rivers empty into
11544-590: Was essential for the general European revival. Somewhat more aid per capita was also directed toward the Allied nations , with less for those that had been part of the Axis or remained neutral . The largest recipient of Marshall Plan money was the United Kingdom (receiving about 26% of the total). The next highest contributions went to France (18%) and West Germany (11%). Some eighteen European countries received Plan benefits. Although offered participation,
11655-498: Was eventually reached, and the Europeans sent a reconstruction plan to Washington, which was formulated and agreed upon by the Committee of European Economic Co-operation in 1947. In the document, the Europeans asked for $ 22 billion in aid. Truman cut this to $ 17 billion in the bill he put to Congress. On March 17, 1948, Truman addressed European security and condemned the Soviet Union before a hastily convened Joint Session of Congress . Attempting to contain spreading Soviet influence in
11766-482: Was headed by Frenchman Robert Marjolin . According to Armin Grünbacher: The U.S. government did not give money directly to the participating countries so that they could buy whatever they thought they needed. Instead the U.S. delivered the goods and provided services, mainly transatlantic shipping, to the participating governments, which then sold the commodities to businesses and individuals who had to pay
11877-436: Was kept idle the economic recovery of Europe was delayed." By July 1947, Washington realized that economic recovery in Europe could not go forward without the reconstruction of the German industrial base, deciding that an "orderly, prosperous Europe requires the economic contributions of a stable and productive Germany." In addition, the strength of Moscow-controlled communist parties in France and Italy worried Washington. In
11988-593: Was no certainty that the plan would succeed, but said it would halt economic chaos, sustain Western civilization, and stop further Soviet expansion. Senator Robert A. Taft (R-Ohio) hedged on the issue. He said it was without economic justification; however, it was "absolutely necessary" in "the world battle against communism." In the end, only 17 senators voted against it on March 13, 1948 A bill granting an initial $ 5 billion passed Congress with strong bipartisan support. Congress eventually allocated $ 12.4 billion in aid over
12099-533: Was one of the locations fortified with coastal artillery during the Bakumatsu period and was subsequently incorporated into the Tokyo Bay Fortress during the Meiji period . The Imperial Japanese Navy maintained a degaussing station on the island until the end of World War II . The island is now uninhabited and is a marine park. Many artificial islands were built as naval fortifications in
12210-445: Was outmaneuvered by the emerging internationalist wing, led by Senator Arthur H. Vandenberg (R-Michigan). The opposition argued that it made no sense to oppose communism by supporting the socialist governments in Western Europe; and that American goods would reach Russia and increase its war potential. They called it "a wasteful 'operation rat-hole'" Vandenberg, assisted by Senator Henry Cabot Lodge Jr. (R-Massachusetts) admitted there
12321-636: Was planned as an airfield (one of the largest in the world at the time), but after the US military expansion of Haneda Airport following World War II, the plan of the airfield fell through. The island briefly opened as a public beach before being repurposed and used as a landfill between 1957 and 1967 to dispose of the large quantities of garbage from the Tokyo Metropolitan Area. The reclaimed land now hosts Yumenoshima Park with numerous recreational facilities. Hakkei Island (0.24 km (0.093 sq mi)), formerly Landfill Number 14,
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