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Meanwhile,
Europe is facing severe difficulties as a result of the war. Fifteen
million lives have been lost, many cities and towns lie in ruins,
the European economies are devastated, and political systems badly
damaged. Imports of essential equipment are restricted by depleted
gold and dollar reserves, and the people are further demoralised
by food shortages and inflation. Great efforts are made to overcome
these problems but these gains are set back by the severe winter
of 1946-47.
In
spite of US aid, Europe appears on the verge of economic collapse.
In France and Italy, the deteriorating situation begins to undermine
governmental authority, widespread poverty in Germany fosters popular
discontent, while Britain is obliged to suspend aid and military
assistance to Greece and Turkey which are striving to ward off Communist
take-overs.
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