	American Citizen Services U.S. Visa Information Immigrant Visa Section Travel to the U.S. Study in the U.S. Doing Business with the U.S. GEI/SNAP Recruitment Services Foreign Agricultural Service America.gov Press and Culture U.S. Embassy Programs American Reference Center Publications Fulbright Commission Frequently Asked Questions
	Contact Us

Marshall Plan 60^th Anniversary

Ambassador McCaw

U.S. Ambassador Susan McCaw

Belvedere Palace
Vienna, June 5, 2007

Minister Bartenstein, Excellencies, Staatssekretär Winkler, Staatssekretärin Marek, Ambassador Steiner, distinguished guests.

As we know, it was exactly 60 years ago today that Secretary of State George C. Marshall outlined the economic recovery plan that would bear his name.

The principle he articulated at Harvard University that day was a simple one: “To assist in the return of normal economic health in the world, without which there can be no political stability and no assured peace.” The concept was simple enough, but what came to pass was nothing less than revolutionary.

The Marshall Plan accelerated the economic recovery of Western Europe after World War II.And it cemented the foundations for the strong economic cooperation we know today, both within Europe and across the Atlantic – economic cooperation that has created significant political, cultural and social benefits for all concerned.

Of the many remarkable aspects to Secretary Marshall’s speech, there was one that particularly struck me: The speech was only 12 minutes long. And that was two minutes longer than Secretary Marshall had intended it to be. I believe on this occasion a 10- or 12-minute speech is a goal worth emulating. So I will try to keep my remarks within that limit.

I will speak about the Marshall Plan’s history, particularly as it pertains to Austria. I will also talk about what the Marshall Plan – officially known as the European Recovery Program or ERP – is doing today in Austria. Many people are surprised – I know I was – to learn that the ERP is still active and still contributing to the Austrian economy.

And finally, I will proudly announce an exciting new initiative for the ERP in Austria, one that is in keeping with the ideals and objectives of the original Marshall Plan.

First, some statistics to put the importance of the Marshall Plan in Austria into context:

The Marshall Plan represented a massive investment by the American government of $13 billion 60 years ago – that would be the equivalent of $110 billion today. That was close to ten percent of the entire budget of the US government. It represented a contribution of roughly $80 from each American – at the time, roughly two-weeks’ wages for a skilled worker.

President Truman, Secretary Marshall and their colleagues offered these funds to a war-ravaged Europe as a cure, not a crutch. They did not consider these funds to be a hand-out. Rather, from them, it was an out-stretched hand. They said to Europe: If you will put aside your divisions, if you will work together to help yourselves, then America will work with you.
And from the beginning, Austria was a key partner in this plan.

On a per capita basis, Austria benefited more from the Marshall Plan than almost any of the other 15 countries in the plan.
Austria received almost $1 billion in Marshall Plan funds – about $133 for every Austrian citizen. And remember, we’re speaking of dollars from the late 1940s and early 50s. The one billion dollars that Austria received 60 years ago would be worth more than $8 billion today.
And there’s another point to remember: ERP funds didn’t only go into the American zone or the zones of the Western allies. Austrians who lived in the Soviet zone also benefited.

This was in keeping with the spirit of the Marshall Plan. America ’s out-stretched hand had been extended to – but roundly rejected by – the Soviet Union and, at Stalin’s insistence, by the Eastern Bloc countries. The Marshall Plan was an ingenious concept – or in the words of Winston Churchill, “the most unsordid act in history.”

Europe ’s economy got a much-needed infusion of capital at a time it needed it most. And for its contribution, America helped establish a strong and democratic Western Europe – one that has stood shoulder to shoulder with us throughout the Cold War and continues to be among our closest allies today.

In 1958, Chancellor Raab described the Marshall Plan as an event of “global significance,” calling it “an ideal form of aid” because it allowed the recipients “to stand on their own two feet again.” It helped build Austria’s “flourishing economy,” one that Chancellor Vranitzky described in 1987 as reflecting “a climate full of optimism that helped to overcome, finally and definitely, the psychological depression of the 1930s and 1940s.”

We realize, of course, that the tremendous and unprecedented economic resources provided by the United States were only one part of the story. America ’s reliance on its European partners to know best how to invest those dollars was equally important.

“The initiative” Secretary Marshall insisted, “must come from Europe.” And so the other part of the story of the ERP’s success is how the Austrians have wisely used those funds. At first, Austria’s leaders used the money for basic human needs – food for workers; coal for heating.
These expenditures were essential for the short term. They helped Austria get through the difficult times of the immediate post-War period. Later, though, as the country began to resume self-sufficiency, the Austrian stewards devoted more and more ERP funds to longer-term projects: the reconstruction of basic infrastructure and industries such as energy, iron and steel, pulp and paper.

Today, the Kaprun power plant and the Voest Steelworks stand as just 2 testaments to the tremendous impact that Marshall Plan dollars had on Austria. As these core industries became increasingly viable, those managing Austria’s ERP funds turned their attention to the manufacturing and exporting of finished goods.

They also focused on developing Austria’s tourism industry. In fact, virtually every ski lift and resort benefited from ERP funds. We have seen the enormous value – the enormous impact – that the ERP brought to this country.

Would Austria have recovered from World War II without the Marshall Plan? Certainly. But the ERP helped accelerate Austria’s recovery. It helped Austria regain its self-confidence. And it helped Austria get off of economic life support, becoming one of the world’s most robust economies in just three generations.

But what is most significant to me and what I want to emphasize here is that the Marshall Plan was not just economic aid. The Marshall Plan was an investment – an investment in the future security and stability of Europe, the United States and the world.

Moreover, it was an investment that provided the political and social foundations that have, for decades, supported a peaceful, prosperous and democratic Austria. America ’s leaders and their European counterparts understood that lasting security and stability required close cooperation and coordination.

That cooperation, that coordination is, for me, the spirit of the Marshall Plan. And that spirit lives on today in institutions like the OECD and the European Union. It can be found at the very heart of our strong transatlantic relationships, including an Austro-American relationship that remains strong and vibrant.

And so we honor the Marshall Plan today for 60 years of service to Austria and the United States. And we honor Austria’s wise stewardship of those funds. This is certainly a time to celebrate these successes.

But the ERP is still a living, vital force in the Austrian economy. Of course, and thankfully, times change. The needs of 2007 are not the needs of 1947. The very best tribute we can pay to the Marshall Plan is to keep its spirit alive and its purpose relevant.

And because Austria’s use of its ERP funds has been so skillful, we have the opportunity today to direct a portion of those funds in a way that honors George C. Marshall’s original vision of building a durable transatlantic relationship. From the moment I arrived in Austria over a year and a half ago, one of my top priorities has been to encourage academic and professional exchanges between our countries.

I believed then, and believe even more strongly now, that there is no more effective way to improve mutual understanding than to live and study in another country. I know this was true for me. While a Stanford University student, I had studied in Italy.

As I look back on this particular period of my life and my education, I realize that my studies abroad have helped shape the ambassador that I am today. Similarly, I know Minister Bartenstein places great stock in his educational experiences in the United States as both a high school and a university student.

I know that we both value these experiences and have benefited from them. We share the belief that academic exchange enhances mutual understanding. And I know that we both believe that other Austrians and Americans should be given the same opportunities to study abroad.
So that is why I am extremely pleased to announce that in a few minutes, Minister Bartenstein and I will sign a memorandum of understanding creating a Marshall Plan scholarship program. With the full support of the Austrian Government, the Marshall Plan Foundation will award 1,000 scholarships for Austrian and American students to participate in academic exchange programs.

One hundred of these Marshall Plan scholarships will be awarded each year for the next 10 years. I want to note that these new academic exchanges will be administered with the assistance of the Fulbright Commission and the Austrian Exchange Service. And they are in addition to the dozen or so annual exchanges the Marshall Plan Foundation already offers Austrian academics and teachers.

These new university level scholarships will also complement AFS’ high school exchange program – a program, I may add, that has already done so much to further mutual understanding between our countries. We hope that the 1,000 students who are able to take advantage of these new Marshall Plan scholarships will return to their respective countries with broadened perspectives, an appreciation of shared values and a respect for divergent points of view.

And if they don’t agree with their host country’s policies, we hope they will understand the intellectual basis that formed these policies, a basis that reflects the country’s political, social, cultural and historic traditions. Minister Bartenstein – just as your predecessors recognized the spirit and the potential of Secretary Marshall’s plan, you, too, are wisely investing in the generation to come.

Indeed, through these scholarships, you are setting the tone for our future cooperation. You have helped refresh the ideals of the Marshall Plan for the 21 st century. As I said, I don’t want to go beyond the 12 minutes that Secretary Marshall used at Harvard on June 5, 1947.

So, in closing, let me pay tribute to General Marshall by repeating a very apt observation President Bush recently made:

“George Marshall is admired for the war he fought, yet he is best remembered for the peace he secured.”

Thank you.