Meanwhile, the United States, giving economic aid to certain countries, was creating a network of American corporate control over the globe, and building its political influence over the countries it aided. The Marshall Plan of 1948, which gave $16 billion in economic aid to Western European countries in four years, had an economic aim: to build up markets for American exports. George Marshall (a general, then Secretary of State) was quoted in an early 1948 State Department bulletin: "It is idle to think that a Europe left to its own efforts… would remain open to American business in the same way that we have known it in the past."
The Marshall Plan also had a political motive. The Communist parties of Italy and France were strong, and the United States decided to use pressure and money to keep Communists out of the cabinets of those countries. When the Plan was beginning, Truman's Secretary of State Dean Acheson said: "These measures of relief and reconstruction have been only in part suggested by humanitarianism. Your Congress has authorized and your Government is carrying out, a policy of relief and reconstruction today chiefly as a matter of national self-interest."
From 1952 on, foreign aid was more and more obviously designed to build up military power in non-Communist countries. In the next ten years, of the $50 billion in aid granted by the United States to ninety countries, only $5 billion was for nonmilitary economic development.
When John F. Kennedy took office, he launched the Alliance for Progress, a program of help for Latin America, emphasizing social reform to better the lives of people. But it turned out to be mostly military aid to keep in power right-wing dictatorships and enable them to stave off revolutions.
From military aid, it was a short step to military intervention. What Truman had said at the start of the Korean war about "the rule of force" and the "rule of law" was again and again, under Truman and his successors, contradicted by American action. In Iran, in 1953, the Central Intelligence Agency succeeded in overthrowing a government which nationalized the oil industry. In Guatemala, in 1954, a legally elected government was overthrown by an invasion force of mercenaries trained by the CIA at military bases in Honduras and Nicaragua and supported by four American fighter planes flown by American pilots. The invasion put into power Colonel Carlos Castillo Armas, who had at one time received military training at Fort Leavenworth, Kansas.
The government that the United States overthrew was the most democratic Guatemala had ever had. The President, Jacobo Arbenz, was a left-of-center Socialist; four of the fifty-six seats in the Congress were held by Communists. What was most unsettling to American business interests was that Arbenz had expropriated 234,000 acres of land owned by United Fruit, offering compensation that United Fruit called "unacceptable." Armas, in power, gave the land back to United Fruit, abolished the tax on interest and dividends to foreign investors, eliminated the secret ballot, and jailed thousands of political critics.
In 1958, the Eisenhower government sent thousands of marines to Lebanon to make sure the pro-American government there was not toppled by a revolution, and to keep an armed presence in that oil-rich area.
The Democrat-Republican, liberal-conservative agreement to prevent or overthrow revolutionary governments whenever possible whether Communist, Socialist, or anti-United Fruit-became most evident in 1961 in Cuba. That little island 90 miles from Florida had gone through a revolution in 1959 by a rebel force led by Fidel Castro, in which the American-backed dictator, Fulgencio Batista, was overthrown. The revolution was a direct threat to American business interests. Franklin D. Roosevelt's Good Neighbor Policy had repealed the Platt Amendment (which permitted American intervention in Cuba), but the United States still kept a naval base in Cuba at Guantanamo, and U.S. business interests still dominated the Cuban economy. American companies controlled 80 to 100 percent of Cuba 's utilities, mines, cattle ranches, and oil refineries, 40 percent of the sugar industry, and 50 percent of the public railways.
Fidel Castro had spent time in prison after he led an unsuccessful attack in 1953 on an army barracks in Santiago. Out of prison, he went to Mexico, met Argentine revolutionary Che Guevara, and returned in 1956 to Cuba. His tiny force fought guerrilla warfare from the jungles and mountains against Batista's army, drawing more and more popular support, then came out of the mountains and marched across the country to Havana. The Batista government fell apart on New Year's Day 1959.
In power, Castro moved to set up a nationwide system of education, of housing, of land distribution to landless peasants. The government confiscated over a million acres of land from three American companies, including United Fruit.
Cuba needed money to finance its programs, and the United States was not eager to lend it. The International Monetary Fund, dominated by the United States, would not loan money to Cuba because Cuba would not accept its «stabilization» conditions, which seemed to undermine the revolutionary program that had begun. When Cuba now signed a trade agreement with the Soviet Union, American-owned oil companies in Cuba refused to refine crude oil that came from the Soviet Union. Castro seized these companies. The United States cut down on its sugar buying from Cuba, on which Cuba 's economy depended, and the Soviet Union immediately agreed to buy all the 700,000 tons of sugar that the United States would not buy.
Cuba had changed. The Good Neighbor Policy did not apply. In the spring of 1960, President Eisenhower secretly authorized the Central Intelligence Agency to arm and train anti-Castro Cuban exiles in Guatemala for a future invasion of Cuba. When Kennedy took office in the spring of 1961 the CIA had 1,400 exiles, armed and trained. He moved ahead with the plans, and on April 17, 1961, the CIA-trained force, with some Americans participating, landed at the Bay of Pigs on the south shore of Cuba, 90 miles from Havana. They expected to stimulate a general rising against Castro. But it was a popular regime. There was no rising. In three days, the CIA forces were crushed by Castro's army.
The whole Bay of Pigs affair was accompanied by hypocrisy and lying. The invasion was a violation-recalling Truman's "rule of law"-of a treaty the U.S. had signed, the Charter of the Organization of American States, which reads: "No state or group of states has the right to intervene, directly or indirectly, for any reason whatever, in the internal or external affairs of any other state."
Four days before the invasion-because there had been press reports of secret bases and CIA training for invaders-President Kennedy told a press conference: "… there will not be, under any conditions, any intervention in Cuba by United States armed forces." True, the landing force was Cuban, but it was all organized by the United States, and American war planes, including American pilots, were involved; Kennedy had approved the use of unmarked navy jets in the invasion. Four American pilots of those planes were killed, and their families were not told the truth about how those men died.
The success of the liberal-conservative coalition in creating a national anti-Communist consensus was shown by how certain important news publications cooperated with the Kennedy administration in deceiving the American public on the Cuban invasion. The New Republic was about to print an article on the CIA training of Cuban exiles, a few weeks before the invasion. Historian Arthur Schlesinger was given copies of the article in advance. He showed them to Kennedy, who asked that the article not be printed, and The New Republic went along.