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Welles refused to accede to Soviet demands that the United States recognize the changed borders of the Soviet Union after the Soviet seizure of territory in Finland, Poland, and Romania and the reincorporation of the Baltic Republics in August 1940, but the U.S. Government did lift the embargo in January 1941.
What pushed postwar international politics beyond simple imperial rivalry and into the militarized Cold War was the growing insecurity of the United States, particularly Truman and his advisers, about the aggressiveness of the Soviet Union under its leader, Stalin.