America at war! (1941–) – Part 4

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Marshal Stalin then said that he would like to discuss the question of German reparations.

The President said that in regard to reparations there was first of all the question of the desires and needs of principal allies and then subsequently that of the smaller countries, such as Belgium, Holland, Norway, etc. He said he would like to bring up the question of the Russian desires in regard to the utilization of German manpower.

Marshal Stalin replied that they had a plan for reparations in kind but were not ready yet to present any plan in regard to German manpower. He then said that Mr. Maisky would present the Soviet plan.

Mr. Maisky then outlined the Soviet plan for reparations for Germany. He said that the Soviet plan for reparations in kind envisaged two categories: (1) the removal from the national wealth of Germany of plants, machine tools, rolling stock, etc. to be completed within a period of two years after the end of hostilities, (2) yearly payments in kind to last for ten years. He said that in order to restore Soviet economy which had suffered so much from German aggression, and to safeguard the future security of Europe, it would be necessary to reduce German heavy industry by 80%. By heavy industry he meant iron and steel, electrical power and chemical industries. Specialized industry useful only for military purposes should be 100% removed. In this category would fall all aviation factories, synthetic oil refineries, etc. He said that the Soviet Government felt that with 20% of her heavy industry Germany would be in position to cover the economic needs of the country. He said the list of goods to be delivered during the 10-year period could be definitely fixed later on. He further proposed that in the interests of the orderly execution of the reparations plan and for the security of Europe there should be an Anglo-Soviet-American control over German economy which would last beyond the period of the reparations payment. All German enterprises which could be utilized for war purposes should be placed under international control with representatives of the Three Powers sitting on the boards of such enterprises. Mr. Maisky went on to say that in the calculation of losses as a result of German aggression the figures had been so astronomical that a selection and the establishment of a system of priorities for compensation had been necessary. He said that even direct material losses, such as public and private property, factories, plants, railroads, houses, institutions, confiscation of materials, etc. had been so large that no reparations could cover their loss. For this reason, priorities had been established according to indices, (1) the proportional contribution of any one nation to the winning of the war, (2) the material losses suffered by each nation. He said that those countries which had made the highest contribution to the war and had suffered the highest material losses would come into the first category and all others would fall into the second. Mr. Maisky proposed that there should be set up a special reparations committee of the three governments to sit in Moscow. He concluded that the total reparations shown in withdrawals and yearly payments in kind which the Soviets required would reach a total of ten billion dollars.

The Prime Minister stated that he recalled very well the end of the last war and that although he did not participate in the peace settlement he had been very fully informed of the discussions. He remembered well that there had been only two billion pounds extracted from Germany in the form of reparations by the Allies after the last war and that even this would not have been possible had not the United States given Germany credits. He said, for example, that they had taken some old Atlantic liners from the Germans, who had immediately proceeded on credit to build new and better ships. He recognized that the suffering which the Soviet Union had undergone in this war had been greater than any other power, but he felt that the Soviet Union would get nowhere near the sum which Mr. Maisky had mentioned from Germany. He said that at the end of the last war the Allies had also indulged themselves with fantastic figures of reparations but that these had turned out to be a myth. He said that the British Isles had also suffered in this war and that the British Government had disposed of the bulk of its assets abroad despite the generous help of Lend-Lease. He said that the British Isles had to export goods in order to import food, since they were dependent on imports for one-half of their food supply. He said that there would be no victorious country so burdened in an economic sense as Great Britain and that, therefore, if he could see any benefit to Great Britain in large reparations from Germany he would favor such a course but he very much doubted whether this was feasible. He added that other countries, such as Belgium, Holland and Norway also had claims against Germany. He said he was haunted by the specter of a starving Germany which would present a serious problem for the Allies since we could either say “It serves them right” or endeavor to help them. In the latter case, who would pay for the help. The Prime Minister concluded that if you wished a horse to pull a wagon that you would at least have to give it fodder.

Marshal Stalin observed that that was right, but care should be taken to see that the horse did not turn around and kick you.

The President remarked that he had also been through the last war and that he remembered very vividly that the United States had lost a great deal of money. He said that we had lent over ten billion dollars to Germany and that this time we would not repeat our past mistakes. He said that in the United States after the last war the German property that had been sequestered during the war had been turned back to the German owners, but that this time he would seek the necessary legislation to retain for the United States all German property in America. He said that the Germans had no capital, factories, or other equipment that the United States needed but that he did not wish to have to contemplate the necessity of helping the Germans to keep from starving. He said, however, that he would willingly support any claims for Soviet reparations since he felt that the German standard of living should not be higher than that of the Soviet Union. He added that just as we expected to help Great Britain expand her export trade, we would also help the Soviet Union retain the reparations in kind which she required, as well as German manpower to reconstruct the devastated regions, but he felt that the Germans should be allowed to live in order that they might not become a burden on the world. The President concluded, however, that despite his desire to see the devastated areas in all countries, in the Soviet Union, in Great Britain, in France, and elsewhere, restored, he felt that reparations could not possibly cover the needs. He concluded that he was in favor of extracting the maximum in reparations from Germany but not to the extent that the people would starve.

Mr. Maisky then stated that while he appreciated the Prime Minister’s points concerning the experiences after the last war in the matter of reparations, he felt that the failure in this respect had been due not to the fact that the reparations had been too heavy but to the transfer problem which was the rock on which the reparations policy was founded. He said that he must add that the financial policies of the United States and Great Britain contributed to the German refusal to pay. He said that the Germans had never paid more than one-quarter of the total reparations figure and had received a great deal more in credits and loans. Mr. Maisky stated that the purpose of reparations in kind was to avoid the problem of transfer. He pointed out that the amount desired by the Soviet Union was equal only to 10% of the present United States budget and equal to about six months’ of the British expenditures in the war. The Soviet demands for German reparations equaled about 1 times the United States budget in peace and about 2½ times the British budget. He said, of course, there was no intention to force Germany into starvation but he pointed out that he did not feel that the Germans had a right to a higher standard of living than that of Central Europe. He said Germany can develop her light industry and agriculture and that since the Germans would have no military expenditures there was no reason why Germany could not give a modest but decent standard of living to her people.

The Prime Minister said that the question of reparations should be examined by a sub-commission and that this commission should consider the claims of other countries who bore the facts of Nazi aggression as well.

The President said that in his opinion the commission should be confined to the representatives of the Three Powers, to which Stalin agreed.

The Prime Minister said that he was in agreement, that in the first instance the representatives of the three major powers should consider the question.

Marshal Stalin said he felt that the commission could accomplish nothing unless it was given general directives from this Conference. He said he felt that the commission composed of the representatives of the three principal Allies must work on the basis that these Powers had contributed most to the common victory and should be given priority in the matter of reparations. He said that although the United States did not need machine tools, she might well need raw materials which she could receive from Germany. He mentioned that the United States would take over German property in the United States as a part of her share.

The President expressed agreement with this view.

Marshal Stalin continued that in calculating German capabilities, Germany’s post-war resources should be also taken into consideration. Then all factories and farms would work not for war but for peace. He repeated that the Three Powers who had made the most sacrifices and had been the organizers of victory should have first claim on reparations. He stated that he did not include France among these powers since she had suffered less than Belgium, Yugoslavia, or Poland.

The Prime Minister pointed out that the Allies had done a great deal of the damage in France.

Marshal Stalin replied that France could not expect to get reparations from the Allies. He said that he respected France but that he could not ignore the truth and that at the present moment France only had eight divisions in the war, Yugoslavia twelve and the Lublin Government of the Poles thirteen.

It was then agreed that the question of the main directives to a commission on reparations which would sit in Moscow would be referred to the Foreign Ministers who would report back to the Conference. It was agreed that the next meeting would be 4:00 p.m. tomorrow, February 6, and that the questions of Dumbarton Oaks and Poland would be considered.

8111

Matthews Minutes

Leningrad, February 5, 1945, 4 p.m.
Top secret

The President opened the meeting and said that he thought they should talk about the general aims of peace rather than about Dakar and China. There were many things to discuss. He said that one of the first questions to discuss of immediate importance was that of zones of occupation of Germany now that the situation seemed to be coming to a head. He meant not the permanent solution of Germany but just that of occupation. It was a question of the French who want a zone. Occupation also involves control machinery. He showed a map to those at the table and said that is what he and Prime Minister Churchill discussed about at Quebec. He amended this statement when it was explained to him privately that the map had its origin in the protocol on the zones of occupation and the European Advisory Commission.

STALIN: I should also like to discuss the following questions: (1) the dismemberment of Germany. There was an exchange of views at Tehran and when Churchill came to Moscow it was further discussed that [but?] there were no decisions. I understand that we are all in favor of dismemberment but I would like to know definitely do we agree, and if so, what form of dismemberment. (2) Do we admit the setting up of any government in Germany or not? Or should we confine ourselves merely to establishing their administration? If we divide Germany will each part have its own government or will each part have its own administration? (3) Unconditional surrender. We are agreed on that, but if Hitler surrenders unconditionally are we to preserve his government? One thing excludes the other. Do we still adhere to unconditional surrender? We have already had experience with that in Italy. Do we not need to work out the definite terms of unconditional surrender? (4) Reparations and the amount. All these questions are in addition to those raised by the President. (It appeared that Stalin was not familiar with the EAC approved protocol on unconditional surrender.)

PRESIDENT: All these other questions are permanent and grow out of the zones of occupation.

EDEN: (nodding) That’s right.

STALIN: That we shall find out. If Germany is to be partitioned, then in what parts? It is well known that we twice exchanged views. First at Tehran when the President then suggested partition into five parts. The Prime Minister hesitated but said he also favored partition. I associated myself with the President but that was only an exchange of views. The second time I exchanged views with the Prime Minister in Moscow. He talked of partition in two parts; one of Prussia and one of Bavaria. He suggested that the Ruhr and Westphalia be put under international control. I replied that might be appropriate but would make no decision because the President was not there. Hasn’t the time come for decision? If you think so, let us make one.

PRIME MINISTER: In principle I think we are all agreed on dismemberment, but the actual method, the tracing of lines, is much too complicated a matter to settle here in five or six days. It requires very searching examination of geography, history and economic facts and is deserving of prolonged consideration by sub-committees or committees to be set up to go into the question. The two conversations mentioned by Marshal Stalin have approached the topic in a very general way only. If asked today, “How would you divide Germany?” I would not be prepared to answer. I might make some personal suggestion but would feel free to change my views. One has in mind, first, the might of Prussia, then the [omission] of Austria. One can see that Prussia separated from other German states [would have] her power greatly reduced, and I personally myself thought establishment of another German state to the south – possibly with its capital at Vienna – would be a line of ground division between Prussia and the rest. The population would be half and half. There are other questions, in principle decided, which here present themselves for consideration: (1) We are agreed Germany should lose certain territories largely conquered by Russian arms or needed in connection with Polish settlement. (2) Also there is the question of the Rhine Valley – the Ruhr and the Saar – potent munitions areas. Should they be handed to a country like France? or made independent under Germany? or placed under some world organization for a long period of time? This obviously requires very searching study and consideration. I have no fixed ideas. (3) Finally, there is the question whether Prussia herself, having been isolated, should be subjected to internal division. I have no fixed opinion. I would like the matter explored and possibly settled in agreement with our two great allies. The French must of course be consulted. At Tehran there was some talk of an examination being made of these complex matters. We should do this quickly, mainly set up machinery for examination.

We are not ill-prepared for the immediate effect of German surrender. All details have been worked out and are well known to the three governments. There remains only formal agreement on zones of occupation and control machinery. If Germany surrenders in a few weeks or a month unconditionally we have only to march in and occupy by processes already agreed upon.

STALIN: This is not clear. How can it be carried out in practice? Suppose a group declares it has thrown out Hitler? Shall we be prepared to deal with them?

EDEN: We would set the terms agreed upon before this regime.

(I left the room at this point to get a copy of the surrender terms and missed the next few minutes.)

PRIME MINISTER: In that case we must make up our mind whether the group is worth dealing with. If so, we must make them sign the agreed terms. If they are not worth dealing with we should continue the war and occupy the whole country.

STALIN: When shall we bring up the question of dismemberment to these new people if there is no provision for dismemberment (in the surrender terms)? Shall we not add a provision to the terms of surrender for dismemberment?

PRIME MINISTER: If they sign we do not discuss with them any question about the future. There is no need to raise the question. We reserve all rights over their land, their liberty and their lives.

STALIN: This is not an additional question but it is most important.

PRIME MINISTER: I agree. But it is not necessary to discuss it with the Germans.

STALIN: No, simply to demand from them.

PRIME MINISTER: I do not think it possible to discuss the exact form of dismemberment. That would come at the peace conference.

PRESIDENT: We have not decided what the Marshal proposed. Are we going to dismember or not? He wants the matter settled in principle but not as to details. The Prime Minister says he is not yet ready to lay down the limit; that requires study. In effect, these are our terms and in addition we shall dismember. That is the only difference. Shall we all agree that Germany should be dismembered? As at Tehran, I am very much personally in favor of decentralization. Forty years ago when I was in Germany there was no word for the Reich and in Bavaria affairs were managed entirely locally. I do not know whether there should be more or less states than suggested before but shall we tell the Germans that we are going to dismember and do it our way?

PRIME MINISTER: I see no need to inform the Germans at the time of surrender whether we will dismember them or not. It is enough to tell them, “Await our decision as to your future.” We might be able to tell while our troops are marching in what is needed.

PRESIDENT: If this question is discussed all over the world there will be a hundred plans for dismemberment. Therefore, I ask that we confine it to ourselves and that the three foreign secretaries bring in tomorrow a plan for dismemberment.

PRIME MINISTER: You mean a plan for the study of the question of dismemberment, not a plan for dismemberment itself?

PRESIDENT: Yes, for the study of dismemberment.

PRIME MINISTER: His Majesty’s Government would be prepared now to assent [to the] principle of dismemberment and to set on foot the best body to study the method.

STALIN: I put the question so that we may be quite agreed on what we want. Events in Germany are developing rapidly toward a catastrophe for them. Their defeats shall increase because of the allied airforce attacks in the near future.

(I left the room to get a glass of water for the President and missed the following few minutes.)

STALIN: In view of such rapid events we should not be without preparation. Therefore, I put the questions and think they should be settled here. No details need be worked out now. I think the President’s compromise proposal should be accepted. Is it agreed (1) to dismember Germany and empower a commission to elaborate concrete plans? (2) To add to the surrender terms that Germany is going to be dismembered though not to say into how many states? I think it important that we should say this so that the group in power should know Germany is to be dismembered. I think the Prime Minister’s plan not to tell the Germans is a risky one; we should say this to them in advance. I think there are advantages to have this provision in the surrender terms so that any German group should know when they sign and bear the responsibilities.

PRIME MINISTER: The terms of unconditional surrender are terms on which the fighting stops. (He reads article 12 of surrender terms.) That is what they have got to sign.

PRESIDENT: The first paragraph on disarmament does not mention dismemberment and does not make it clear enough. The Marshal’s idea, which is somewhat my own, is that it will make it easier if it be in the terms and tell them.

PRIME MINISTER: But you don’t want to tell them. Eisenhower doesn’t want that. That would make the Germans fight all the harder. We should not make this public.

PRESIDENT: My own feeling is that the people have suffered so much that they are now beyond questions of psychological warfare.

STALIN: No, these conditions for the moment are only for us. They should not be public until the time of surrender. We can do as we have done with Italy where the surrender terms are not yet public. I want it agreed (1) to dismember and (2) to put dismemberment into the surrender terms.

PRIME MINISTER: I find it difficult to go beyond assent to the principle of dismemberment and the setting on foot of machinery as to the best method of doing it. I agree to a most rapid examination of the question of the best means of studying a method of dismemberment.

PRESIDENT: Would you put in Article 12 in addition the word “dismemberment”?

PRIME MINISTER: Yes, I would agree.

EDEN: or some other formula to make dismemberment possible.

STALIN: I have no objection to the proposal. It is agreed.

PRESIDENT: Now to take up the next question – a zone of occupation for France. (A portion missed here.)

STALIN: The French told me in Moscow that they would want a frontier on the Rhine.

PRIME MINISTER: I can’t agree. There is a question of a condominium on the Rhine. The present question is different. It applies only to zones of occupation. We are all now agreed, are we not, on the three zones? The French want a zone and I am in favor of granting it to them. I would gladly give them part of the British zone. All we want is this: It does not affect the Soviet zone. Will our Russian allies agree that the British and Americans get together on a zone to allot to the French? The line of the Moselle seems a convenient place to let them in. They are not in a position to occupy a large zone.

STALIN: Would it not be a precedent for other states? Would it not mean that the French become a fourth power in the control machinery for Germany which, so far, is only for the three of us?

PRIME MINISTER: Our answer is that France should come in and as its army grows take a larger part in the occupation.

STALIN: I think there might be complications in our work if we have a fourth member. I suggest another method – for the British to get the help of France or Holland or Belgium in occupation but not give them rights in the control machinery. We might ask on our side to invite other states to help occupy our zone but not to sit in on control machinery.

PRIME MINISTER: The discussion is on the immediate question of France. They have had long experience in occupying Germany. They do it very well and they would not be lenient. We want to see their might grow to help keep Germany down. I do not know how long the United States will remain with us in occupation. (THE PRESIDENT: “Two years.”) Therefore the French army should grow in strength and help us share the burden. If Russia wants some other power in her zone we should not object.

STALIN: I should like to know the President’s opinion.

PRESIDENT: I can get the people and Congress to cooperate fully for peace but not to keep an army in Europe a long time. Two years would be the limit.

PRIME MINISTER: I hope that would be according to circumstances. At all events we shall need the French to help us.

STALIN: France is our ally. We signed a pact with her. We want her to have a large army.

PRESIDENT: I should much rather have a small number on the control machinery. I should be just as satisfied if the French are not in on the control machinery.

STALIN: I should like to repeat that if we let the French in on control machinery it would be difficult to refuse other states. I agree that the French should be great and strong but we cannot forget that in this war France opened the gates to the enemy. This is a fact. We would not have had so many losses and destruction in this war if the French had not opened the gates to the enemy. The control and administration of Germany must be only for those powers standing firmly against her from the beginning and so far France does not belong to this group.

PRIME MINISTER: We were all in difficulties early in this war and France went down before the new tanks and I admit they were not much help in this war. But the fact remains they are the neighbor of the Germans and the most important neighbor. British public opinion would not understand if decisions vital to France are being made with regard to Germany over France’s head. I hope, therefore, that we shall not decide for an indefinite exclusion of France for all time. I was very much against General de Gaulle’s coming here and the President’s view was very much the same. Apparently Marshal Stalin feels the same. But the fact remains that France must take her place. We will need her defence against Germany. We have suffered badly from German robot guns and should Germany again get near to the channel coast we would suffer again. After the Americans have gone home I must think seriously of the future. I propose to offer the French a zone out of present British and American zones and that technical studies be made of the French position in the control machinery.

STALIN: I am still against France taking part in the control machinery.

PRIME MINISTER: I agree. (Several sentences not understood) That France cannot be a member of this group but cannot we let her into control machinery.

PRESIDENT: (On the basis of a note from Mr. Hopkins) I think we have lost sight of the French position on the European Advisory Commission. I suggest that the French have a zone of occupation but that we postpone discussion on control machinery. Others might want to come in, such as Holland or Austria.

STALIN: I agree.

PRESIDENT: The Netherlands are in a very serious situation. Several millions of their farmers are thrown off their land by flooding and we must set aside some land in Germany to take care of this. Their own land will not be suitable for cultivation for five years. The Netherlands might ask for a seat on the Control Commission.

EDEN: If the French are to have a zone, how can they be excluded from the control machinery? If they are, how can their operation of their zone be controlled?

STALIN: They could be controlled by the power from which they obtained the zone.

PRIME MINISTER & EDEN: We cannot undertake to do that and the French would never submit to it.

EDEN: The French pressed us hard on this question in Paris when we visited there. Didn’t they question it at Moscow?

STALIN: We talked about it but we said it could only be discussed by all the three powers.

PRIME MINISTER: Is it agreed that the Americans and British set aside a zone for France? I propose to leave the next step as to the future status of France when it may be approved as a whole. I propose that the three foreign secretaries sketch out the kind of commission for control to be set up. (After Eden has whispered to him) He (Eden) says it has all been worked out and I withdraw my question.

MAISKY: I think it is superfluous to discuss the question with the three foreign ministers.

MOLOTOV: The European Advisory Commission has already taken decisions and has set up for only the three powers. It is agreed that France is to have a zone and that the question of their relation to the control machinery shall be left for report by the three foreign ministers.

Reparations

PRESIDENT: The three of us are involved in this question and there is also the question of what the small powers want. First, there is the question of manpower. What does Russia want? The United States and British I believe do not want reparations in manpower.

STALIN: We have a plan for reparations in kind but we are not ready to talk about manpower.

PRIME MINISTER: Could we hear about your plan for reparations in kind?

(Stalin instructs Maisky to explain the Russian plan.)

MAISKY: Reparations in kind we think should be in two forms: (1) Withdrawals from the national wealth of Germany at the end of the war. By this is meant transfer of factories, plants, machinery, machine tools, rolling stock and investments abroad. (2) Yearly payments in kind for a period of ten years.

To restore Russian economy and for the security of Europe it is necessary to cut down German heavy industry by 80%. By heavy industry is meant iron and steel, metal working, engineering, chemicals, electrical engineering, etc. All military production and aviation as well as synthetic petroleum should be prohibited 100%. About 20% of German heavy industry would be left and this would be enough for the real need of German economy. Reparations in kind should be for a period of ten years and the list could be settled later on. The reparations in kind should be terminated in ten years and withdrawals of plants, factories, etc., in two years. In order to make Germany pay there must be very strict tri-partite control over Germany. The details can be settled later on but it must be established that the most important industries should be internationalized and members of the three great allies should be on the boards of directors, such representation to continue for the ten-year period. In estimating reparations we have considered the kind of losses to be covered. The figures are so astronomical that we believe that only those losses under the category of direct material losses, that is, destruction of state and private property of all sorts should be included. Even this is so large that the whole amount of reparations cannot be covered. Therefore, priorities among countries should be fixed by indices. We make two suggestions: (1) The proportion of contribution by a country to the winning of the war to its losses of material in the war. The highest should be in the first category and the others in the second category. (2) For discussion of the principles and details on reparations we suggest that a commission with its seat in Moscow should be set up. The question now comes how much would Russia want for reparations. We would want not less than ten billion dollars.

PRIME MINISTER: I remember well the last war and the sad experience in reparations that followed. It was with great difficulty that one billion pounds was finally extracted from Germany and that was due to the fact that Germany received much larger amounts in loans from the United States. I remember we took over some old Atlantic liners which permitted Germany to build better new ones. I do not want to repeat that experience. I admit that Russian losses are much greater than those of any other country. I feel that the removal of certain plants and materials from Germany is the proper step for restitution. I am sure that we will never get out of Germany anything like 250 million pounds a year. We too have suffered. Our houses have been destroyed. We are faced with an export problem. We must export in order to buy food, one half of which we must import. We have incurred very heavy debts outside lend-lease. No victorious country will come out so burdened financially as Great Britain. If I could see any benefit in reparations I would be glad to have them but I am very doubtful. Other countries also have suffered great devastation – France, Belgium, Norway. We must also consider the phantom of a starving Germany and who is going to pay for that. If eighty millions are starving are we to say, “It serves you right.” and if not, who is going to pay for feeding them?

STALIN: There will be food for them anyway.

PRIME MINISTER: I am in favor of setting up a commission to study the question.

PRESIDENT: We lent Germany far more than we got after the last war. That cannot happen again. We want no manpower. We do not want their machine tools or their factories. Therefore, what can we get? German stock and property in the United States? This has at present been taken over by the Alien Property Custodian. After the last war it was used as an offset against our claims in Germany. I hope to get legislation this time to take it over as a trust fund.

We must think of the future of Germany. We have always been generous through our Red Cross but we can’t guarantee the future of Germany. We don’t want to kill the people. We want Germany to live but not to have a higher standard of living than that of the USSR. I envision a Germany that is self-sustaining but not starving. There will be no lending of money. Our objective is seeing that Germany will not starve in helping the Soviet get all it can in manpower and factories and helping the British get all they can in exports to former German markets. Therefore, the time has come to set up a reparations commission. In rebuilding we must get all we can but we can’t get it all. Leave Germany enough industry and work to keep her from starving.

MAISKY: The experience of reparations has been bad but the reason was not because reparations were too heavy but because they were asked in monetary form and therefore the transfer question arose. There was also the question of Germany’s refusal to pay. What is ten billion dollars? It is 10% of the United States budget this year. It is six months war expenditure of Great Britain. It is one and one quarter times the United States peacetime budget and two and one quarter times the British each year. Yes, we should prevent Germany from having a higher standard than the middle European standard. Germany will be able to live on this and she is free to develop her light industries and agriculture. The doubts of the Prime Minister are unfounded. Germany will be able to live a decent life and we must not forget that she will have no burden of military expenditures.

PRIME MINISTER: I agree on the setting up of a reparations commission but we must keep it secret.

STALIN: Yes, it should be kept secret.

PRIME MINISTER: The commission must also consider the claims of all the victims, the assets available, and the priorities to be assigned. Differences arising in the commission must be referred to and settled by the three governments.

STALIN: We must take here common decisions as the guiding lines for the commission. The work must be done by the three parties to the commission. We three should have the first place on reparations claims as we bear the burden of the war. The United States should get German property in America. She doesn’t want machine tools. We must take into consideration not only present German resources but her future resources when her manpower returns and goes to work. I do not include France in the first category and certainly France shall not have reparations from us. I must say, in all truth, France cannot be compared to us. She takes part in the war with eight divisions and some navy. The Yugoslavs, and I am not mentioning them, have twelve divisions; Lublin Poland has ten divisions, which is more than de Gaulle has. I propose that the three foreign ministers meet and report.

PRIME MINISTER: They should settle the heads of the directivesm – the guiding principles – and I hope that within one month the governments can receive their version. You must remember I have a cabinet and parliament. Also the point of the first index on damage sustained I think is enough. I do not think that the exertion in the war should be taken into consideration. Remember the saying of each according to his needs. The President agrees to the setting up of the reparations commission in Moscow; the Prime Minister agrees also.

The meeting adjourned at 8 p.m. after determining that the next meeting should be held at 4 tomorrow afternoon, and that the world organization should be taken up first and Poland second.

8112

The President’s Special Assistant to the President

Yalta, February 5, 1945

Mr. President: I would suggest that you say this is a very important and urgent matter and that the three foreign ministers present a proposal tomorrow as to the proceedure by which a determination as to to dismemberment can be arrived at an early date

HARRY

The President’s Special Assistant to the President

Yalta, February 5, 1945
  1. France is on the European Advisory committee now. That is only body considering German affairs now.
  2. Promise a zone.
  3. Postpone decision about Control Commission.

The President’s Special Assistant to the President

Yalta, February 5, 1945

Why not agree to a French zone and consider later the question of putting them on control commission for Germany? or not–

Could you not add that French participation on Control Commission might be considered later?

The President’s Special Assistant to the President

Yalta, February 5, 1945

Could you ask him

  1. Why not take all Gestapo-Storm Troopers and other Nazi criminals.
8113

The Pittsburgh Press (February 5, 1945)

Half of starving Manila freed by avenging Yanks

Japs in southern part of city burn buildings for last-man stand

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The end of a long, hard road for Gen. Douglas MacArthur was the entry of U.S. troops into Manila from the north and east. Other U.S. forces were gaining against the Japs on both sides of Manila Bay.

MANILA, Philippines (UP) – Avenging U.S. troops seized control of virtually all the northern half of burning, starving Manila today.

The Americans freed 3,700 imprisoned American and Allied civilians and captured the Presidential Palace.

The 1st Cavalry and 37th Infantry Divisions stabbed into the heart of the Philippines capital from the east and north and rapidly were mopping up the last enemy pockets north of the Pasig River, which bisects the city.

South of the 200 to 300-yard-wide river, several thousand crack Jap Marines were blasting and burning docks, warehouses, bridges and other vital installations preparatory to what may develop into a last-man stand in the southern half of the capital.

Gen. Douglas MacArthur at last reports was waiting impatiently in the northern suburbs for the bridging of one last river for a triumphal entry into the city he was forced to abandon to its fate three years, one month and three days ago.

A CBS broadcast from Luzon said President Sergio Osmena and Resident Commissioner Brig. Gen. Carlos P. Romulo landed at a Luzon airport from Washington Sunday and headed south to join Gen. MacArthur in his return to Manila.

MBS correspondent Royal Arch Gunnison jubilantly reported that Manila had been “liberated,” but all other sources emphasized that the southern part of the city was still in Jap hands.

100-mile advance in 36 hours

The 3,700 American and Allied civilian internees were rescued by a mechanized flying column of the 1st Cavalry Division at the Santo Tomas University concentration camp in the heart of Manila Saturday night after a spectacular 100-mile advance in 36 hours.

Virtually all of the buildings in the camp area, including the infamous, ancient Bilibid Prison, had been cleared of Japs by last night. The Americans fought literally room to room for some of the buildings.

Brig. Gen. Williams C. Chase of Baltimore, who commanded the rescuing “flying wedge,” said the condition of the internees was “most pitiful.”

“They are practically skin and bones,” he said. “It would break your heart to look at them.”

Other elements of the 1st Cavalry Division pressed on to the north bank of the Pasig River and seized the Malacanang Palace, former residence of the U.S. governor general and later the seat of the Quezon government.

The 37th Infantry Division entered Manila from the north at 6:30 a.m. yesterday and by early afternoon was within a few hundred yards of a junction with the 1st Cavalry Division units at Santo Tomas.

Airfield in suburbs overrun

The infantrymen overrun the Grace Park airfield in the northern suburbs of Manila. Though pitted by U.S. bombs, it was expected to be repaired quickly. At least one artillery observation plane has already landed there.

Both the 1st Cavalry and 37th Infantry Divisions met only sniper and machine-gun fire in their advances into the capital, but fierce fighting was expected when they attempt to force the Pasig to clean out the remainder of the city.

“It may be a hell of a job,” one high officer said. “It may be several days before we have the city cleared out, but the Japs have no chance now.”

The Jap garrison was doomed to death or surrender. Its escape to the south had already been cut off by the 511th Paratroop Regiment of the 11th Airborne Division, which seized Tagaytay Ridge and city 30 miles below the capital Saturday morning.

By Saturday night, the paratroops were only 18 miles south of Manila and advancing against light opposition.

The 11th Corps, moving toward Manila Bay fropm the west coast of Luzon, was believed on the point of sealing off the Bataan Peninsula.

The 1st Cavalry and 37th Infantry Divisions found northern Manila little damaged, thought several fires were burning in the area. Great clouds of smoke from the area south of the Pasig River, however, cast a huge pall over the capital.

First observation indicated the Japs for the present were confining their demolition below the Pasig to bridges, warehouses, supply dumps, docks and other similar installations and not indulging in blind destruction.

The demolitions shook the ground for a radius of 20 miles about Manila and for a time there was an explosion every 10 minutes. An observer who flew over the city said the National City Bank Building appeared to be smoking, but the Bayview and Manila Hotels were intact.

Even should the Japs not scorch southern Manila, heavy resistance on their part might force the U.S. command to use artillery and bombers against the fortified area, resulting in major destruction.

The 1st Cavalry Division jumped off from the Guimba area of central Luzon Friday for its 100-mile dash into Manila. Several hundred Japs were slain as the flying columns smashed through enemy pockets in a wide, enveloping sweep that carried through the hills to the east of the capital.

Captured intact were the Novaliches watershed and great dam and reservoir some 20 miles northeast of Manila. It was possible, however, that the Japs destroyed the pumping station inside Manila since city water was cut off in at least some sections of the capital.

Manila Bay, one of the world’s largest landlocked harbors, was reported a graveyard of sunken ships, most of them destroyed by U.S. aerial bombs but some scuttled by the Japs.

A Jap Domei broadcast said U.S. troops landed Jan. 18 on Kolo Island, largest of the Sulu group in the Southwest Philippines midway between Mindanao and Borneo, with a force of 3,000 troops and more than 10 tanks.

U.S. Liberators attacked enemy installations on Corregidor Island in Manila Bay Friday and next day hit the Cavite Naval Base, just south of Manila, causing many fires and explosions.

Attack bombers struck enemy defenses at Balor Bay on the east coast of Luzon, while fighters badly damaged two enemy destroyers off the north coast.

Light naval units strafed coastal installations and damaged seven beached barges in Salomague Harbor north of Vigan on the northwest coast of Luzon.

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Emaciated internees hoist U.S. troops on shoulders

By Robert Crabb, United Press staff writer

Robert Crabb, a former member of the United Press staff in Manila, was interned at Santo Tomas University with his wife and two children when the Japs captured the city in 1942.

SANTO TOMAS INTERNMENT CAMP, MANILA, Philippines (Feb. 3, delayed) – The grounds and buildings of ancient Santo Tomas University were a joyous sight tonight as 3,700 internees – mostly Americans – sought the strength to carry on their shoulders the husky young Yank cavalrymen who freed them from the Japs.

Almost hysterical joy swept all of the internees as we heard the first shots, then realized American soldiers at last had arrived to free us. We hung from windows and rushed from buildings to shout encouragement without heeding Jap defense fire.

Even hostages happy

As I write, a small enemy detachment is holding out in the education building where about 300 internees are still held, but even there the prisoners are in high spirits, they are shouting constant advice to the carefully-attacking Americans.

Cpl. John Hencke of New York City was in command of the jeep which first crashed through the gates of Santo Tomas spearheading the cavalry force which made a dramatic dash through the city’s back door.

As the camp began celebrating its liberation, the first question asked of all troops was, “Did you bring any food?”

The soldiers broke out their field rations, although they themselves were hungry after their spectacular dash. They gave out all their rations in a few minutes. For the first time in many months the internees ate without worrying where the next meal was coming from. Camp administration officials promptly announced that tomorrow morning’s mush rations would be 125 grams instead of the usual 70.

Salmon and marmalade

For years to come, Cpl. Hencke will be a household word for the Crabb family. He gave my wife, our two children now in internment and me a meal consisting of salmon, marmalade, coffee and condensed milk. My wife, who is an Australian, cried when she saw the “Made in Australia” label on the marmalade container.

Even more than 36 hours after their liberation, American internees are finding it difficult to realize they actually are under the American flag again. Hundreds wept openly this morning as the Stars and Stripes were run up on the university’s flag staff for the first time in more than three years.

8115

Reporter finds wife among 3,700 rescued in Jap camp at Manila

Allied civilians cry hysterical welcome to liberating U.S. soldiers
By Frank Hewlett, United Press staff writer

MANILA, Philippines (Feb. 3, delayed) – Some 3,700 thin, hungry Allied civilians, 2,500 of them Americans, cried a hysterical welcome to liberating American troops at the Santo Tomas University internment camp tonight.

Among them was my wife, Virginia, from whom I parted on New Year’s Eve of 1942 to go to Bataan with Gen. Douglas MacArthur. She had insisted on staying behind in Manila as a nurse in Santa Catalina Hospital.

I found her there today, recovering from a nervous breakdown. Doctors said she would be fully recovered now if she had had sufficient good food. Though never a big girl, her weight has dropped to 80 pounds. But I found her in excellent spirits.

Routed quickly

The Japs were routed quickly from most of the buildings in the camp area, but were still holding out in the former education building of Santo Tomas University late tonight with nearly 300 American, Dutch and British internees as semi-hostages.

Troops of Brig. Gen. William C. Chase’s mechanized flying column surrounded the building, but hesitated to use machine guns or other automatic weapons for fear of hitting the civilians.

Shout engagement

The civilians, nonetheless, shouted encouragement and advice from the windows of the besieged building. They included many women and children.

Hewlett, in a later dispatch, said a truce was arranged under which the 221 internees were released unharmed and the Jap force of 65 men under Col. Hayashi was permitted to leave the university area unmolested.

The internees were so overjoyed at the arrival of the American troops that they insisted on lifting them to their thin, emaciated shoulders and carrying the soldiers through the buildings.

Conditions ‘pitiful’

Robert Crabb, another member of the former United Press staff in Manila, his wife and two children were among those set free.

Gen. Chase, after a personal inspection of the concentration camp, described conditions as “most pitiful.” Most of the internees, he said, were suffering from malnutrition and were “practically skin and bones.”

“It would break your heart to look at them,” he said.

Relief convoy waiting

He urged that first priority should be given food and medical supplies for the internees.

A broadcast from Luzon said great motor convoys with doctors, Red Cross staff men and enough equipment to build a large hospital were waiting north of Manila to enter the city as soon as bridges were restored. They were also bringing 12,000 letters and other messages to the internees, the broadcast said.

Gen. Chase’s flying column, consisting of a small force of tanks, jeeps and troop-laden trucks, shoved off at 1:00 this morning on a reckless dash over a seldom-used, rough road into Manila from the northeast. The toughest fight of the day came at Novaliches, 10 miles from the capital, but brushes with the enemy were frequent all along the route.

Bypass Japs

Lt. Col. Haskett Conner Jr. of Wakeman, Indiana, led this special force which undertook the mercy errand on special orders from Gen. MacArthur, who ordered them to take any risks to get through to Santo Tomas, liberate the civilians and then protect them until stronger forces could be brought up.

Col. Conner bypassed several pockets of Jap resistance without slowing down. Our force exchanged fire with the Japs, then roared on by.

Four former Manila residents – Phil Dunn of CBS; Carl Mydans of Life; Dean Schedler of Associated Press and I – made the trip together in one vehicle. Snipers and machine guns firing on both sides of the road had us ducking most of the afternoon.

Opposition weakens

Strangely, the nearer we came to Manila, the lighter the opposition was. As we passed each kilometer, someone would remark: “Hell’s going to bust loose any minute now.”

But as we reached Grace Park airdrome, which is littered with wrecked Jap aircraft, the sniper fire was lessening. We sped past Del Norte, Manila’s greatest cemetery, then into Avenue Rizal.

We moved down Avenue Rizal several blocks, then the columns split with half of it taking up perimeter positions and the remainder moving on to Santo Tomas.

Vehicles mobbed

Civilians moved our vehicle, cheering and offering us portions of their meager food supplies. They passed out iced water, beer and liquor. The women were weeping while the men saluted and children squealed in delight.

But the Santo Tomas reception was even more delirious.

A grenade hurled from the Jap guardhouse at the entrance to the prison camp delayed us until tanks were brought up under the orders of Maj. James Gearhart of Sante Fe, New Mexico, a range officer who says he knew personally almost every New Mexico National Guardsman taken prisoner on Bataan.

Told to hold fire

Maj. Gearhart led his men into the 55-scre university grounds, warning them to hold their fire and not endanger the lives of the internees. Creeping along the buildings for what seemed an eternity Mr. Mydans and myself reached the main building where the windows were filed with excited faces. The internees were yelling so loudly we couldn’t distinguish anything they were saying.

We entered the building and were mobbed. The women kissed us and then these thin, starved people lifted us on their shoulders – an honor that should have been reserved for Col. Conner and his men. But Col. Conner’s forces were still busy outside killing Japs.

Wife at hospital

I found a little girl who could answer the question which was foremost in my mind. She told me where I could find my wife and kindly offered to accompany me to the hospital where Mrs. Hewlett was held.

It was a reunion after years about which I do not want to think.

The Americans here have suffered terribly since last June when the Japs forbade them to purchase food from the outside. Conditions have been especially bad in the last two months. The ration has not been more than 700 calories a day.

The rescue was the second mass release of Allied prisoners in five nights. Last Tuesday night, American Rangers and Filipino guerillas released more than 500 American and other Allied war prisoners at the Cabanatuan concentration camp north of Manila.

8116

Hodges’ First Army closes on Siegfried Line anchors

Patton’s troops force arc on Prum, key transport hub and gateway to Rhineland

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8117

B-29s set fires in big Jap port

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8118

Oil tankers burn – 12 die, 20 missing

80 others reported hurt

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8119

Army to speed internees’ names

WASHINGTON (UP) – Names of American internees rescued in Manila will be transmitted to Washington by the Army and released here by the War Department as rapidly as they can be compiled.

No names had been received up to noon today, and the War Department doubt that any would be received until tomorrow or later, due to the time required for making up the list in Manila.

It was expected that the process of transmitting the names from Manila to Washington would necessarily extend over several days.

The War Department plans to release the names in groups, as they become available, immediately after it has dispatched notification telegrams to the next of kin.

8120

I DARE SAY —
The soft spot

By Florence Fisher Parry

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8121

Big increase requested in veterans’ fund

Nearly $3 billion requested for year

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8122

AFL will seek full rights in Western Union

Bids for New York, only CIO stronghold

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8123

Senators seek to curb power of Roosevelt

Bill would prohibit creating corporations

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8124

Poland claims eastern Reich

Warsaw wants area up to Oder

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8125

Perkins: CIO, Russian group battle to dominate labor meeting

As World Congress shapes up, British will be in position to swing decisions
By Fred W. Perkins, Pittsburgh Press staff writer

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8126

Yanks reach Manila in 26-day drive

City first occupied by U.S. in 1898
By the United Press

The Japanese and American campaigns for Manila were of almost exactly the same duration.

On December 9, 1941, two days after Pearl Harbor, the Japs made their initial landing on the city’s home island of Luzon. On December 27, they bombed undefended Manila and on January 2, 1942, their land forces occupied the “open city” and the Cavite Naval Base.

The American Philippines campaign began October 20, 1944, with the landing on Leyte. It moved onto Luzon January 9, 1945, with the landing at Lingayen Gulf and into Manila itself yesterday, February 4.

Jap 24, U.S. 26 days

Thus on Luzon Island, the Jap campaign took 24 days and the American 26.

The first campaign ended with the imprisonment of about 4,000 Americans, Britons and other Allied nationals, many of whom have since been rescued. All U.S. ships and Navy personnel were removed prior to occupation. Jap casualties, while not officially known, were believed comparatively small.

In the American campaign, U.S. casualties from October 20 through January 29 have been 16,806. This is approximately one-tenth of the Jap toll of 164,000 casualties.

Known once as the trade center of the Pacific, Manila is an important prize and one for which America has fought twice – both times with the MacArthur name at the fore.

First occupied in 1898

Manila was first occupied by U.S. forces August 13, 1898, after the Spanish-American War. Spain had ruled the Philippines for 370 years. Although the islands were not officially ceded to the United States until December 10 that year by the Treaty of Paris, the Manila port was reopened to commerce within a week after American occupancy.

Following an insurrection February 4, 1899, President McKinley, on July 4, 1901, appointed William H. Taft as civil governor of the Philippines to succeed the military governorship of Maj. Gen. Arthur MacArthur, father of the present general.

Thereafter began a long-range program of co-benefit aimed at the building up of American trade in the East and the eventual political independence of the Philippines. Until 1936, 65 percent of Manila’s commerce was with America. Manila developed into a modern healthful city with free education and improved living standards.

Landlocked harbor

Manila is the capital and most important city of the Philippines Archipelago with one of the largest landlocked harbors in the world. It is built over an area of 14 square miles around the mouth of the Pasig River on the east and inner shore of Manila Bay, a crescent-shaped bay about 100 miles in diameter.

At the head of the bay stands Corregidor. It was to this fortified island, known to some as the “Gibraltar of the Pacific,” that U.S. forces retreated after their epic 98-day stand on Bataan Peninsula against overwhelming odds. On Corregidor, Lt. Gen. Jonathan Wainwright surrendered May 6, 1942.

The modern half of Manila on the north side of the Pasig is known as the Escolta or “Broadway of Manila.” It contains the wholesale and retail districts as well as the homes of native workmen and leads out into the northeastern suburb of Santa Mesa, the exclusive residential section of Americans and Europeans.

Walled city in south

On the shore line south of the Pasig, now known as the port area, is Pier Seven, one of the largest and most modern in the world. The southern half of the city is known as Intramuros because it contains the ancient walled city built by the Spanish.

The Philippines were discovered by Magellan, the famous Portuguese navigator and soldier.

In the early 16th century, Portuguese trade routes were established to the east around the Cape of Good Hope and Spain, seeking a new one, sent an expedition under Magellan to the Philippines Archipelago, then known as San Lazaro Islands. A later expedition found the trading center of Manila, a crudely fortified town on the south bank of the Pasig. In 1571, a Spanish officer took over the town and laid it out as a city.

The earliest history of the Philippines goes back to the period when it was a dependency of a succession of Hindu-Malayan empires in Indochina, Sumatra and Borneo. From 1325 to 1405, it was under the Javanese empire of Majapahit and later was a dependency of China during the Ming Dynasty.

For over 100 years preceding 1565, the island of Luzon was often held by Jap seafaring adventurers while the island was dominated by Mohammedan Borneo.

8127

65 Jap soldiers traded for 221 American internees

Yanks escort enemy to safety in return for leaving prisoners in building unharmed
By Frank Hewlett, United Press staff writer

GEN. MACARTHUR’S ADVANCE HQ, LUZON, Philippines – At dawn today, 65 Jap soldiers were traded for 221 American internees held as hostages in the education building of the Santo Tomas campus.

First Cavalry Division troopers surrounded the building and for six hours exchanged fire with the Japs but none of the prisoners was injured.

Armistice negotiations opened yesterday between Brig. Gen. William B. Chase and Jap Lt. Col. Hayashi, resulting in suspension of firing. Hayashi insisted that his men be permitted to leave the building with packs and weapons and escorted to safety in return for leaving the Americans in the building unharmed.

Japs neatly dressed

The exchanged Japs, more neatly dressed than our soldiers because they had not been in the field, lined up in front of the education building with American soldiers on either side.

Hayashi led his men and officers, carrying their own packs, sabers or pistols. Two Japs limped from battle wounds, while a third casualty was hauled on a two-wheeled cart.

Lt. Col. Charles E. Brady of West Orange, New Jersey, led the American unit. Before departing, this seasoned veteran who led the 5th Infantry Regiment on Leyte, told his men:

The Japs have given us the alternative of freeing them or having all the Americans in there killed. We march down the road with them between us and at a given point we halt and they go on. I don’t want any of you fellows to be trigger happy, but if they fire, give them hell.

Japs nervous

Several blocks from Santo Tomas, our forces halted and the Japs marched off alone. They were nervous, however.

Filipinos jeered and one Jap yelled: “Down with Gen. MacArthur. Down with America.”

The fate of the Japs remained unknown. The city is full of Americans and guerrillas who would love to tangle with Hayashi.

Much credit for saving the hostages goes to British missionary Ernest Stanley, who handled the negotiations and agreed to walk unarmed in front of Hayashi where the colonel could shoot him if things went wrong.

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Yanks recaptured town in Italy

Active patrolling continues in area

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Japs to fight harder than ever, Grew warns

WASHINGTON (UP) – Acting Secretary of State Joseph C. Grew today hailed the recapture of Manila as the harbinger of speedy liberation of all the Philippine Islands, but warned that it will inspire the Japs to fight harder than ever.

Mr. Grew, who served as U.S. ambassador to Japan for 10 years prior to Pearl Harbor, voiced the warning and widespread acclamation for Gen. Douglas MacArthur’s triumphal return to the Philippines capital.

In Congress, the American return to Manila was viewed as a pointed “lesson in freedom” for the United Nations because of this country’s plans to give the Philippines full independence. The House adopted a resolution by Rep. John E. Rankin (D-Mississippi) instructing Speaker Sam Rayburn to send a congratulatory message to Gen. MacArthur.