The Soviet Union occupied most of eastern Germany, while the other Allied nations occupied western Germany. The German capital of Berlin was similarly divided into four zones of occupation. Almost immediately, differences between the United States and the Soviet Union surfaced. The Soviets sought huge reparations from Germany in the form of money, industrial equipment, and resources. The Russians also made it clear that they desired a neutral and disarmed Germany. The United States saw things in quite a different way. American officials believed that the economic recovery of Western Europe was dependent on a strong, reunified Germany. They also felt that only a rearmed Germany could stand as a bulwark against Soviet expansion into Western Europe. In May 1946, the Americans stopped reparations shipments from their zone to the Soviets. In December, the British and Americans combined their zones; the French joined some months later. The Soviets viewed these actions as a threat and issued more demands for a say in the economic future of Germany. On June 22, 1948, negotiations between the Soviets, Americans, and British broke down. On June 24, Soviet forces blocked the roads and railroad lines into West Berlin.
In 1946, Winston Churchill gave a speech in which he declared that Russia had built an "Iron Curtain" separating eastern Europe from western Europe. ... Churchill's term became the standard for describing Soviet-controlled Eastern Bloc nations during the Cold War.
