Definitions

economic assistance

Council for Mutual Economic Assistance

or Comecon

Organization founded in 1949 to facilitate and coordinate the economic development of Soviet-bloc countries. Its original members were the Soviet Union, Bulgaria, Czechoslovakia, Hungary, Poland, and Romania; other members joined later, including Albania (1949) and the German Democratic Republic (1950). Its accomplishments included the organization of Eastern Europe's railroad grid, the creation of the International Bank for Economic Cooperation, and the construction of the “Friendship” oil pipeline. After the political upheavals in Eastern Europe in the late 1980s, it largely lost its purpose and power. In 1991 it was renamed the Organization for International Economic Cooperation.

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The Mutual Defense Assistance Act commonly known as the Battle Act was a 1949 law passed by the United States.

The act was part of the American Cold War strategy of containment. The act had a number of sections. Most importantly it promised defense assistance to any ally that might be attacked by the Soviet Union, or one of its allies.

It also cut off all aid and economic assistance to any country that traded in strategic materials with the Soviet Union or its allies. The act covered a wide range of materials needed for the production of weapons, and was especially focused on anything that could aid atomic weapons research and construction.

France

Massive support was negotiated with France from 1950 to 1954 when the French Union fought the Chinese and Soviet-backed Viet Minh during the First Indochina War.

Support included massive financial aid, material supply from the US Army (uniform, helmet, rifle, tanks), US Navy (carrier Belleau Wood/Bois Belleau), the US Airforce (twelve Fairchild C-119, fighters, bombers and maintenance crews) and the CIA (twenty four pilots of the CAT) from which two pilot were killed in action during the battle of Dien Bien Phu.

India

The act caused a great deal of friction, especially with the non-aligned countries. India refused to accept any American imposed limits on its trade and went ahead with shipments of Thorium nitrate to China. Realizing that cutting off all aid to India would do more harm than good, Secretary of State Allen Dulles negotiated a solution.

Notes

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