Furthermore the Marshall Plan, America’s principal plan for rebuilding and creating a stronger foundation for the allied countries of Europe was one of the pivotal acts that through misinterpretation destroyed Soviet American relations. The Marshall Plan became a four year program that would cost the American people approximately $13 billion dollars before it ended in 1952. Although its impact on the Western countries was a promising one, it severally destroyed the relationship between the two former allies the Unities States and the Soviet Union marking an important stage in the development of the Cold War. What began on June 1947 as a helping hand to Eastern Europe because William Clayton reported to Washington that "millions of people are slowly starving,” soon destroyed U.S, U.S.S.R relations. The Soviets perceived the Marshall plan entirely differently from that of America. They read these plans as a prelude to the “remilitarization of western Germany and its transformation into the armed instrument of America’s Anti-soviet coalition,” and Subsequent Soviet propaganda portrayed the plan as an American plot to subjugate Western Europe. The Soviet rejection of the Marshall Plan in summer of 1947 has long been viewed as the turning point towards the development of the Cold War. After 1947, it was no longer simply differences on individual issues that divided the members of the wartime anti-Hitler coalition. But the Soviet rejection of the plan was not merely the implementation of a policy of confrontation with the West, rather it was a backlash against what was perceived and misinterpreted as an American attempt to dominate the post-war world with economic aid and undermine the security of the USSR. The Soviet ambassador to the United States, Nikolai V. Novikov, emphasized the underlying political aspects of the Marshall Plan in a telegram to Soviet Foreign Ministry Molotov on June 24th: "...it is directed toward the establishment of a West European bloc as an instrument of American policy..." officials at the Kremlin felt that the United States was exploiting Europe's difficulties, that American imperialists wanted to gain control over the economies of those countries that participated in the Marshall Plan and they publicly warned that those who participated in the program would lose control of not only their economies, but also over their political sovereignty. This error of Soviet foreign policy; that the Marshall plan was an attack on the Soviets influence in Europe and not just financial aid was the final straw in the destruction of cooperation in the peace that followed the end the World War II so far as Soviet leaders were concerned. The tension was building for Russia who knew they would have to try something to drastically gain back their influence in Germany. More importantly the most pivotal point in the detereation of Soviet U.s relations was the miscalculation by the soviets attempting to stop the currency reforming happening in West Berlin. On 1 June, America and Britain announced that they wanted to create the new country of West Germany; and on 23 June they introduced a new currency into ‘Bizonia’ and western Berlin. The Soviets refused to accept this proposal, hoping to continue the German recession in keeping with their policy of a weak Germany. The Soviets refused to honour the currency, even in Berlin, but Allies had already smuggled two hundred and fifty million Deutschmarks into the city, and it quickly became the standard currency in the western zones. The new currency, along with the Marshall Plan that backed it, appeared to be able to revitalize Germany against the wishes of the Soviets. Worse, by introducing the currency into western Berlin, it threatened to create a bastion of economic resurgence deep within the Soviet zone. Although the currency reform in theory was the trigger of the Berlin crisis, in retrospect it was the soviets actions of suspending all rail, road and air traffic into Berlin from the west as an attempt to put pressure on the U.S to call off or at least modify their plans for unification and economic revitalising. Stalin thought this action would at least make America reconsider but in reality all it did was push the American Foreign policy into a hard-line anti-Soviet position. Stalin himself no longer trusted his former allies.
The Soviet-American relationship became characterized by substantial tensions, mitigated only by continuing negotiation and no clear action. The deterioration of relations within the Grand Alliance led to the great conflict known as the Cold War. From the Soviet misconception, the United States alienated the USSR through a series of challenges, culminating with the Marshall Plan, while in opposition the Americans viewed the U.S.S.R as an ideological identity only concerned with the takeover through military of Europe. This miscalculation on both sides was essentially what created the Cold War.