I am more asking about whether or not Western Europe paid back the over $12 billion given under the Marshall Plan following WWII. I don't have the amount given over time to rebuild the Pacific. Not only was money provided, but so was aid with defense and trade.
Was the money paid back through the US renting land for their foreign deployed bases? How did these countries get out of their debt and turn it around so drastically? Why can't they forgive the debt, knowing that without our financing, the individual countries may still be recovering from the damage caused during WWII?
Well, the aid provided by the Marshall Plan was not in the form of a loan but rather in the form of European nations getting shipments of various staples, fuel, and machinery from the United States and then later on by investment in European industrial capacity. The American company that produced the goods was paid in dollars, which were credited against the appropriate Marshall Plan funds by the US government. The European recipients of the goods, however, was not given them as a gift, but had to pay in their local currency. These payments were both made to and kept by the European government involved. This money, could then be used by that government for further investment in projects of their choice. However 5% of this money was paid to the U.S. Government to cover the administrative costs of the Marshall Plan. So there was no debt to be paid back to the government.