An arco book arco is a registered trademark of Thomson Learning, Inc., and is used herein under license by Peterson’s. About The Thomson Corporation and Peterson’s

80. The correct answer is (E). With the withdrawal of Japanese troops from China following World
War I, Nationalist Chiang Kai-shek and Communist Mao Zedong resumed a civil war. The United
States for a time supplied military aid to the corrupt Chiang Kai-shek regime in hopes of preventing
the communists from taking control of the country. By 1949, however, the Nationalists were in full
retreat, and Chiang Kai-shek’s army was evacuated to the island of Taiwan. Although the communists
were in control of China, the United States refused to recognize the government and for more than 20
years maintained that the legitimate government was the Nationalist government on Taiwan. This
unrealistic view was undermined when President Richard Nixon made a trip to China in 1972; and in
1979, President Jimmy Carter established formal diplomatic relations with the People’s Republic,
thereby recognizing it as the legitimate government of China.
81. The correct answer is (D). Although the phrase “cold war” was not coined until 1948, the cold war
began shortly after the end of World War II. In a speech at Westminster College in Fulton, Missouri,
in March of 1946, the former prime minister of Great Britain, Winston Churchill announced that “an
iron curtain” had descended across the European continent. Churchill proposed that the United States
and England form an anticommunist Anglo-American association. Both Greece and Turkey at that
time relied heavily on British financial aid, and both were in trouble. The Greek monarchy was fight-
ing with communist-supplied rebels, and Turkey was under heavy Soviet pressure. In February 1947,
the British admitted that they could no longer supply aid to these two countries. President Truman
asked Congress for $400 million in aid for Greece and Turkey, and Congress agreed. This was the
first time that the United States had even proposed to commit huge sums of financial aid during
peacetime. In order to generate popular support for the foreign aid plan, Truman made an address to
a joint session of Congress in which he warned that communism was spreading across Europe and

---

Lesson 7
186
w w w . p e t e r s o n s . c o m / a r c o
ARCO
■ SAT II Subject Tests
immediately threatened Greece and Turkey. It was necessary, he said, for the “United States to sup-
port free peoples who are resisting attempted subjugation by armed minorities or by outside pres-
sures.” This policy was soon labelled the Truman Doctrine.
In June of 1947, Secretary of State George Marshall called for financial assistance to western
Europe in general. At his suggestion, sixteen European countries worked out a plan of economic
recovery, a plan that required billions of U.S. dollars. The United States agreed to provide $17 billion
over a four-year period. This European Recovery Program—or Marshall Plan—encountered little
opposition because people were convinced that it was necessary to stop the spread of communism.