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The German currency is abolished in the Western zone and the deutsche mark is established in its place.
Romania's cultural and political institutions are reorganised to conform with Soviet models. Anyone suspected of being anti-Communist is removed from the political arena.
Yugoslavia declares its independence from the Soviet block of East European nations.
The Communist take complete control of the Czechoslovakian government, making Czechoslovakia the last country in Eastern Europe to come under Communist rule.
The Soviet Union tries to force the Western powers out of Berlin by imposing blockades on all highways, river and rail traffic into Western-controlled Berlin.
Egypt, together with other Arab states, goes to war with Israel. Israel's ties with the United States cause Egyptians to harbour anti-American sentiments.
Iraq and the Transjordan invade the new state of Israel.
In the first direct military confrontation between the Soviet Union and the Western powers, the West responds to the Berlin Blockade by airlifting supplies to West Berlin. They also counter-blockading East Germany. The Soviet blockade ends after 321 days, in May 1949.
The United States supports the founding of the Republic of Korea in the south. It is lead by Syngman Rhee, a nationalist.
The Soviet Union supports the establishment of the Democratic People's Republic of Korea in the north of Korea. It is lead by Kim II Sung, a Communist who led anti-Japanese guerrillas in Manchuria.
The Polish Communist Party conducts an internal purging of its members, getting rid of anyone suspected of defying any of the Soviet Union's actions.
The Socialist and Communist parties come together to form the Polish United Workers Party. In this party, the pro-Stalin Communists are a dominant force. Leaders try to implement economic and agricultural policies that are in line with the economic and social system of the Soviet Union.
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