America at war! (1941–) – Part 5

740.00119 Potsdam/7-1745: Telegram

The Representative on the Allied Commission on Reparations to the Acting Secretary of State

Babelsberg, July 17, 1945
Secret
Victory-51

To Kindleberger and Wolf, White House, Washington for [Acting] Secretary of State from Pauley.

Understand that Reinstein has been preparing materials on possible Italian reparations and restitutions. Urgently require outstanding features of this report. Cable summary to me at Tripartite Conference Headquarters Masterwork Berlin with particular emphasis upon what might be available for reparations and possible value of same. Send also estimates made by State and FEA as to value of imports required by Italy in order to maintain her economy over the coming year. (Repeat message for Sproul, c/o American Delegation, Allied Commission on Reparations, American Embassy, Moscow, for his information numbering the repeat message as follows Confrep 3.)

864.918/7-1745: Telegram

The Representative in Hungary to the Acting Secretary of State

Budapest, July 17, 1945 — 4 p.m.
Secret
297

Gregoriev Pushkin’s Assistant has asked Balogh for list Hungarian newspapermen previously correspondents wholly or in part for foreign newspapers and who will presumably engage in reporting subsequent to reestablishment international communications. This is first evidence Russians will raise blackout on foreign correspondents but there are no indications they will permit uncontrolled reporting.

SCHOENFELD

First plenary meeting, 5 p.m.

Present
United States United Kingdom Soviet Union
President Truman Prime Minister Churchill Generalissimo Stalin
Secretary Byrnes Foreign Secretary Eden Foreign Commissar Molotov
Fleet Admiral Leahy Mr. Attlee Mr. Vyshinsky
Mr. Harriman Sir Alexander Cadogan Mr. Gromyko
Mr. Pauley Sir Archibald Clark Kerr Mr. Gusev
Mr. Davies Sir William Strang Mr. Novikov
Mr. Dunn Major Birse Mr. Sobolev
Mr. Clayton Mr. Pavlov
Mr. Cohen
Mr. Matthews
Mr. Bohlen
Mr. Thompson

Thompson Minutes

Potsdam, July 17, 1945, 5 p.m.
Top secret

Premier Stalin proposed that President Truman preside over the meetings.

Churchill seconded the proposal.

The President accepted it and inquired if it were proper for him to propose some items for the agenda.

Stalin agreed.

Eden asked if all members would have the power to add to the agenda.

The President replied that they would. The President then took up the proposal for the establishment of the Council of Foreign Ministers and read the document on this subject (Attachment 1).

The President stated his second memorandum related to Germany. (The President did not read the proposed draft agreement in regard to Germany but handed it in for study. Attachment 2.)

Churchill inquired if this meant they were not to give any consideration to these matters now.

The President replied that he was merely proposing items for the agenda.

Churchill proposed that the first item proposed by the President be referred to the meeting of the Foreign Ministers.

Stalin said he agreed but he was not clear about the inclusion of China in the Council. He said he supposed that it was contemplated that the Council would discuss European problems.

The President said that this could be discussed by the Foreign Ministers and then referred back to the meeting of heads of state.

Churchill said it would be returned with the comments of the Foreign Ministers.

Reverting to the question of the policy with regard to Germany, the President said he proposed that the Control Council should commence to function immediately in accordance with the agreement which had already been entered into. He said he was submitting a document containing the United States proposals on this matter.

Churchill said that he had only just seen this document and that he could not express any opinion.

The President said he did not expect any expressions of opinion now.

Stalin remarked that he also had not studied the document.

Churchill said that this was such a wide subject that it was not appropriate for the Foreign Ministers but that the heads of state should study it and then discuss it.

Stalin said they could take it up the next day but that it might be well to let the Foreign Ministers study it.

Churchill said the Foreign Ministers would be busy enough with the other item that had been referred to them.

Stalin agreed.

The President then read the document on the implementation of the Yalta Declaration on Liberated Europe (Attachment 3). Before reading the United States proposal in regard to policy towards Italy, the President said that in view of the recent Italian declaration of war on Japan he hoped that it would be possible for this meeting to agree to support Italian entry into the United Nations Organization in recognition thereof. If this was acceptable he thought that the Foreign Ministers might be instructed to prepare a suitable declaration.

Churchill said that this was an important matter on which their positions were not the same. The British were attacked by Italy in 1940 at the time France was going down which was described by President Roosevelt as “a stab in the back.” The British fought the Italians for some time before the United States came in. At a most critical time we were obliged to send sorely needed troops to Africa and we fought two years on those shores until the arrival of the American forces. We also suffered very heavy Naval losses in the war with Italy in the Mediterranean. We provided 14 out of the 15 vessels which was the equivalent of the Russian share of the Italian fleet.

The President proposed to read the American document on this question.

Stalin intervened to suggest that the discussion be confined to the setting up of the agenda.

The President agreed.

Churchill said he was grateful to the President for opening up this discussion and for the positive contribution he had made in submitting his proposals which would have great advantage. He said, however, that the question must be given very careful consideration. He suggested that the President proceed to give his presentation now.

Stalin agreed.

The President then read the document on Italy (Attachment 4).

The President said he wished to state that he appreciated the honor of having been made Chairman of the meeting. He said he had come gladly to the Conference but that he had come with some trepidation because in the United States he had had to succeed a man who could not be replaced and one who was on the friendliest terms with both the Prime Minister and Premier Stalin. He said that he hoped he would merit the same friendship. The questions he had presented were of the highest importance but he wished it understood that he could add under [sic] other questions and that both of the other representatives could do the same.

Stalin said he agreed.

Churchill said he should like to express on behalf of the British delegation his gratitude to the President for undertaking the Presidency of this momentous Conference and to thank him for presenting so clearly the views of the mighty republic which he heads. The warm and ineffaceable sentiments which they had had for President Roosevelt they would renew with the man who had come forward at this historic moment and he wished to express to him his most cordial respect. He trusted that the bonds not only between their countries but also between them personally would increase. The more they came to grips with the world’s momentous problems the closer their association would become.

Stalin said that on behalf of the Russian delegation he wished to state that they fully shared the sentiments expressed by Mr. Churchill.

Churchill then proposed that they go to the simple question of the agenda and either deal with items or refer them to the Foreign Ministers. The agenda was not complete but they had a program. The British, of course, wished to add the Polish problem to the agenda.

The President said that he wanted the Prime Minister and Premier Stalin to add any questions to the agenda that they wished.

Stalin said it would be well for the three delegations to set forth the questions they wanted discussed. The Soviet delegation wished to add the question of the division of the German merchant fleet and Navy. Some correspondence had been exchanged on this subject and it was agreed that it should be discussed at this meeting. They also wished to add the question of reparations not only from Germany but also from Italy.

Churchill asked what about Bulgaria and Rumania.

Molotov said that was already taken care of.

Stalin then proposed the question of territories to be placed under trusteeship.

Churchill inquired whether Stalin was referring to areas in Europe or in general throughout the world.

Stalin replied that this could be discussed. The Soviets had already mentioned that they would like some territories of the defeated states.

The Soviet delegation also wished to raise the question of relations with satellite states.

Another question which the Soviet delegation wished to discuss was that of Franco Spain. The Spanish regime did not originate in Spain but was imported and forced on the Spanish people by Germany and Italy. It was a danger to the United Nations and he thought it would be well to create conditions which would enable the Spanish people to establish the regime they want.

Churchill said they were only discussing the agenda. He agreed that this item should go on the agenda.

Mr. Attlee said he would be very happy to see this item go on the agenda.

Stalin said that perhaps the question of Tangier should be brought up, as well as that of Syria and Lebanon.

Churchill said that Eden had pointed out to him that in the absence of the French this question could only be discussed provisionally.

Stalin said it would be interesting to clarify the views held by the three powers.

Stalin then added that he wished to propose a discussion of the Polish question. What they had in mind was the question of the present émigré Polish Government.

Churchill said it was most necessary that the Polish question should be discussed. As a result of the discussions since Yalta sensible progress had been made. He agreed that the question should be discussed and that the winding up of the former London Polish provisional government was part of that question. He was sure that Premier Stalin and the President would realize that Britain had been the home of the Polish Government and the base from which the Polish Armies were maintained and paid. He thought their objectives were the same but the British would have a harder task than the other two powers because they would have the details to handle. They did not wish to release large numbers of soldiers in their midst without making proper provision for them. He thought they could handle this problem in a satisfactory manner. It was important to continue to carry out the Yalta agreement and he, of course, attached great importance to the Polish elections in order that the will of the Polish people would be reflected.

Stalin said he had no other questions to add.

Churchill said they had already sent in their agenda. He wished, however, to suggest that the three Foreign Secretaries meet today or tomorrow to pick out the questions which were to be discussed at the next meeting. They knew the questions and knew which were prepared for discussion but it would be well to have a definite program. The Foreign Ministers could prepare the dinner better than they could themselves. The President and Stalin had no objection.

Churchill said that the broad presentation had been made and at the next meeting they would address themselves to the questions that were the most agreeable or perhaps he should say, the least disagreeable.

Stalin observed that in any event they could not escape the disagreeable ones.

He wished to know if they would proceed with their meeting this evening. Were there any matters they could take up before the Foreign Ministers had made their selection?

The President asked if there were any suggestions.

Stalin proposed that they discuss the question of the Council of Foreign Ministers and The President and Prime Minister agreed.

The President said he had submitted his views and a draft proposal.

Stalin said that the principles advanced by the American Delegation met with no objection on the part of the Soviet Delegation but they wished to question the inclusion of China if the Council is to deal with European problems.

The President pointed out that China was one of the permanent members of the Security Council which [it] had been agreed at San Francisco to set up.

Stalin said that at Yalta a decision had been taken for regular meetings of the three Foreign Ministers. He wished to know if that was to be dropped now.

The President said he did not understand that the arrangements relating to the three Foreign Ministers was a permanent one.

Stalin replied that the arrangement was not permanent. It had been arranged that they were to meet several months later. He assumed that this was now dropped and also that the European Advisory Commission would now lapse.

The President pointed out that the Council of Foreign Ministers was being set up for a definite purpose.

Stalin said that they could deal with any other question. The Crimea decision should be regarded as having lapsed and in this case the European Advisory Commission would also lapse. These would be replaced by the Council of Foreign Ministers.

The President said that it was satisfactory to him to interpret it in this way.

Churchill said he had supposed that the three Foreign Ministers were to meet about every three months and that they would advise the three Heads of Governments on matters that are going on from day to day. He thought it was a complication, even though it might look like simplification, to bring in China. He was agreeable to China being represented and to the Foreign Ministers’ drawing up conditions of peace but day to day questions were very urgent. He questioned the advisability of bringing in from the other part of the world a country which had contributed little to the defeat of the enemy in Europe. It was easy to set up bodies that look well on paper but which do little in practice. Could not the future of Germany be decided without China?

The President suggested that the question of the meeting of the three Foreign Ministers be passed over for the time being as this was another matter and they were now discussing his specific proposal.

The President then read Annex I to Attachment I.

Stalin said they had the duty to prepare for the peace conference. The war was over in Europe and it would be for this Council to deal with the effect of this fact. The Council could also give them a hint as to the date.

The President said that he agreed that the date might be fixed when we felt that it could be successfully concluded.

Churchill said that there did not seem to him to be any difficulty in reconciling the objects they were pursuing. We ought to set up a peace conference. We ought not to replace the two useful bodies which have been set up, namely, the Three Foreign Ministers and the European Advisory Commission, which brings in France. It was a matter of the selection of the body to be used. He would be sorry to see these existing organisms destroyed. They can co-exist. Until the Japanese were defeated, he saw difficulties in China’s having an important voice in settling the tangled problems of Europe – the volcano from which war springs. He saw no useful purpose in including the Chinese in the European settlement. China was far away and did not see questions the way they did. Perhaps while the Council is sitting, we would receive better news from the Far East. He suggested that the world peace treaty be settled by the Five Powers but that European problems be dealt with by the Four Powers directly concerned and that the meeting of the three Foreign Ministers and the European Advisory Commission be continued. He did not see that China could give us good advice on handling the Rhineland question. It would have only an intellectual interest in the matter.

The President said we might have to settle that problem here too.

Stalin said that perhaps the question of the Council could be referred to the Foreign Ministers.

The President observed that he had no objection to China being excluded from the Council.

Churchill said he saw difficulties in a Power having full representation when its interests were not directly concerned.

The President said the question was referred to the Foreign Ministers.

Stalin observed that they would have nothing to do as all questions would be discussed by the Foreign Ministers.

Churchill suggested that the Foreign Ministers look into the question of there being four or five members of the Council. Stalin interrupted to say “Or three members?”

Churchill also suggested that the Council be confined to questions of peace and that meetings of the three Foreign Ministers and the EAC be continued. The Foreign Ministers would also pick out what questions were to be discussed at the meeting of the Heads of States.

Stalin inquired whether it was a question of a peace treaty or a peace conference.

Churchill said the Council would prepare a plan for the peace which would be submitted to the Three Heads of States.

Stalin inquired as to the time.

Churchill replied that this would depend on the progress which the Council made and upon the course of events.

Stalin suggested that the Foreign Ministers discuss the extent to which it was necessary to preserve the EAC and the meetings of the three Foreign Ministers.

The President said there should be something which they could discuss tomorrow and upon which they could arrive at a decision. He proposed that they meet at four instead of at five o’clock and that they now adjourn.

Stalin agreed that they adjourn but there was one question he could raise now: Why does Churchill refuse to give Russia her share of the German fleet?

Churchill exclaimed “Why?” and went on to say that he thought that the fleet should be destroyed or shared. He observed that weapons of war are horrible things.

Stalin said, let’s divide it. If Mr. Churchill wishes, he can sink his share.

The meeting adjourned.

Cohen notes

Potsdam, July 17, 1945, 5 p.m.

GENERALISSIMO STALIN opened the meeting by suggesting that PRESIDENT TRUMAN be asked to serve as the presiding officer. The GENERALISSIMO’S suggestion was seconded by MR. CHURCHILL. PRESIDENT TRUMAN said there was nothing he could do but yield to their wishes and to preside. He thanked them for their courtesy.

PRESIDENT TRUMAN then stated that he had some concrete proposals to lay before the Conference.

He first pointed out the urgency of preparing for the European settlements. He submitted to the meeting a draft proposal for the establishment of a Council of Foreign Ministers.

MR. CHURCHILL suggested that the paper be referred to the foreign secretaries.

GENERALISSIMO STALIN said he agreed with that procedure but only wished to mention that he had some doubt as to the inclusion of China in a Council of Foreign Ministers to deal with the European peace.

PRESIDENT TRUMAN then stated he desired to make a statement with regard to our policy toward Germany.

(1) He thought that the Control Council should commence to function immediately in accordance with the agreement already entered into. For this purpose he was submitting for their consideration a draft containing the principles which should be followed by the Control Council in the administration of Germany.

MR. CHURCHILL indicated that he had not had a chance to read the draft agreement and he would like to do so before the matter was referred to the foreign secretaries.

(2) THE PRESIDENT then read his prepared statement on the need for the implementation of the Yalta Declaration.

MR. CHURCHILL also indicated that he wanted time to read the document which he probably generally concurred in.

(3) THE PRESIDENT then stated that the time had come for revision of our Italian policy. Italy had entered the war against Japan and he thought the time had come to admit Italy into the United Nations. He submitted a prepared proposal looking toward the establishment of peace with Italy.

MR. CHURCHILL stated he thought we were preparing to deal with very important policies somewhat too hastily. He thought that these important matters required very deliberate consideration. Britain had fought for four years against Italy. Italy had entered the war against Britain at a most critical time. President Roosevelt himself had used the phrase regarding the dagger that stabbed the neighbor in the back with reference to Italy’s entrance into the war. Possibly he would not differ from the concrete proposals of THE PRESIDENT but he wished more time to consider.

PRESIDENT TRUMAN pointed out that he had to step into the place of a man who really was irreplaceable. He knew that Mr. Roosevelt had gained their good will and their friendship both for himself and for his country and he hoped that he might be able to succeed in part to that friendship and good will.

MR. CHURCHILL stated that he felt certain that both he and THE MARSHAL wished to renew the great regard and affection that they had for Mr. Roosevelt with MR. TRUMAN. Their common friendship had served to hold their countries together in the most trying period of history. Mr. Truman has come to join them at a most critical time. He extended his cordial regard and respect to MR. TRUMAN. He had every hope and confidence that the ties that bound their nations together would be continued.

GENERALISSIMO STALIN on behalf of the whole Russian delegation, expressed the desire to join in the sentiments expressed by MR. CHURCHILL.

MR. CHURCHILL suggested we go over various points proposed for discussion and try to agree on the agenda.

PRESIDENT TRUMAN: We have offered what we think is most important.

CHURCHILL: I would like to add the Polish question.

STALIN: It would be well for the three delegations to set forth the questions they would like to discuss. Russia would like to discuss (1) the question of the division of the German merchant fleet and navy; (2) the question of reparations; (3) trusteeships for Russia under the San Francisco Charter; (4) relations with the Axis satellite states; (5) Franco regime imposed on Spain by the Axis. This regime should be changed. It harbors great danger to the United Nations.

CHURCHILL: We are only discussing things to go on the agenda. I agree that the matter of Spain should be discussed.

STALIN: (6) the question of Tangier.

CHURCHILL: Mr. Eden has advised me we can reach only provisional agreement on Tangier in the absence of the French.

STALIN: (7) The question of Syria and Lebanon; (8) the Polish question involving the determination of Poland’s western frontiers and the liquidation of the London Government.

CHURCHILL: We agree the Polish question should be discussed including the willing up of the London government. We hope the Marshal and the President will recognize that England was made the home of the Polish government which fought against the Axis. England has the burden of winding up these obligations. Our objectives are similar but probably more difficult for Britain. She cannot force the liquidation of the Polish army before the arrangements have been made for taking care of the soldiers. With regard to Poland, Britain attaches great importance to the election that should give the people an opportunity to realize their wishes.

STALIN: The Russians have no additional points to add to the agenda.

CHURCHILL: The British have submitted in writing their proposed agenda. I suggest the foreign secretaries meet tonight to agree on the agenda for tomorrow. They can prepare a menu for us better than we can at this table.

STALIN and TRUMAN agree.

CHURCHILL: So tomorrow we will have prepared the points most agreeable.

STALIN: All the same, we will not escape the disagreeable.

CHURCHILL: We will feel our way up to them.

STALIN: Shall we proceed with the meeting further today?

TRUMAN: Have you any suggestions?

STALIN: We might take up the Council of Foreign Ministers.

TRUMAN: I have submitted my views.

STALIN: The principles suggested by the American delegation present no difficulty, but I would like an explanation of the reason for China’s participation in European affairs.

TRUMAN: China is one of the five members of the Security Council.

STALIN: The decision taken at Crimea provided for quarterly conferences of the foreign secretaries. Does PRESIDENT TRUMAN’S suggestion supersede the Crimea proposal?

TRUMAN: The Crimea proposal was temporary.

STALIN: Then the quarterly meeting of the secretaries will be dropped. Should not the European Advisory Committee [Commission] also be dropped? I have no objection to the establishment of the Council of Foreign Ministers, but I think it should be clear that the quarterly meeting of the foreign secretaries and the European Advisory Committee elapse [will lapse?].

TRUMAN: That interpretation would be satisfactory to me. The foreign secretaries could meet but there probably would be nothing for them to discuss.

CHURCHILL: The quarterly meetings of the foreign secretaries are very helpful in advising us. I think it a needless complication to bring China in. When it comes to drawing up the peace, all countries must come in. The preliminary work cannot be done by telegram. I am content that China should be admitted to drawing up the general provisions for peace but not for the day-to-day work. China is far from Europe and has not contributed to the European war. Do you really wish to discuss the administration of Germany with the Chinese delegation?

TRUMAN: The problems to be considered by the Council are quite different from the ordinary meetings of the foreign secretaries. It is intended for a specific purpose. Let me read the draft proposal.

(The draft proposal is read by MR. TRUMAN)

STALIN: This will be a Conference to prepare for the future Peace Conference.

CHURCHILL: The Peace Conference.

STALIN: The war is over in Europe and this Council will deal with reparations and will give an indication of the day when the Peace Conference should meet.

TRUMAN: The Peace Conference should not be convened until we are adequately prepared.

CHURCHILL: This does not seem to me to present any difficulty in reconciling our different objectives. We ought to have a council to prepare for the peace, but it should not supersede the two practical bodies, to wit: the quarterly meetings of the foreign secretaries, and the European Advisory Committee, which deal with current events. I would regret to see these two bodies to cease to exist. Until the Japanese war is over I see great difficulty in China’s having a voice in the trying problems of Europe. I see no advantage in introducing China with the European settlement. They have not fought in Europe. It is possible that while the Council is sitting, the war with Japan will end. Then China can and should come into the World Peace Conference. I do not see that China could help us in settling the question of the Reich.

STALIN: Perhaps the matter can be referred to the foreign ministers.

TRUMAN: I have no objection to the foreign secretaries eliminating China if they think that that is best.

CHURCHILL: China might be present and come in when Asiatic matters are considered.

STALIN: As all the questions are to be discussed by the foreign ministers, we shall have nothing to do (Laughter).

CHURCHILL: Our first task is making a peace in Europe – ultimately in the world. The quarterly meeting of the foreign secretaries should continue and the European Advisory Committee fitted in. The Council should make plans for the peace for submission to their governments when their governments are ready to come together for that purpose.

STALIN: The time of the Conference.

CHURCHILL: That depends on events and the progress made by the Council.

STALIN: The Foreign secretaries should discuss the necessity of preserving the European Advisory Committee as well as the quarterly meeting of the foreign secretaries.

TRUMAN: There should be some issue to discuss on which we can come to a conclusion tomorrow.

CHURCHILL: The secretaries should give us three or four points – enough to keep us busy.

TRUMAN: I don’t want just to discuss, I want to decide.

CHURCHILL: You want something in the bag each day.

TRUMAN: I should like to meet at 4:00 instead of 5:00.

CHURCHILL: I will obey your orders.

STALIN: If you are in such an obedient mood today, MR. PRIME MINISTER, I should like to know whether you will share with us the German fleet.

CHURCHILL: We will share it with you or sink it.

Tripartite Communiqué

The Berlin conference of the heads of government of the United Kingdom, the United States and the Soviet Union met this afternoon at 5 o’clock. By invitation of his two colleagues, the President of the United States of America will preside at the meetings of the conference.

A preliminary exchange of views took place on matters requiring decision by the heads of government.

It was decided that the three foreign secretaries should hold regular meetings with a view to preparing the work of the conference.

740.00119 Control (Italy)/7-1745: Telegram

The Ambassador in Italy to the Acting Secretary of State

Rome, July 17, 1945
Plain
2010

Most Rome papers this morning carry United Press item stating that Colonel James Henderson Douglas will arrive in Italy probably on July 24 to assume post of Chief Commissioner of Allied Commission replacing Admiral Stone (see my 1877, July 7th).

KIRK

The Pittsburgh Press (July 17, 1945)

BIG THREE OPENS POTSDAM CONFERENCE
Truman talks with Stalin at luncheon

Foreign chiefs also attend

Tokyo area shelled!

Fleet’s biggest fire coastline war factories 25 miles from capital

U.S. drafts terms for Japs when they decide to give up

Chinese storm big air base; Japs trapped

Allies also gain west of Hong Kong

Aliens take $800 million, pay no taxes

Treasury loophole may be plugged
By Henry J. Taylor, Scripps-Howard special writer

New York drivers end 17-day strike

Men going back under old setup

Passengers leap from burning ship

All on lake boat reported saved

Billion-dollar U.S. loan for Russia held likely

Foreign economic administrator Crowley reports to Senate Banking Committee

ODT to allocate all rail coaches

Civilian travel to be cut again

Haw Haw’s trial begins tomorrow

I DARE SAY —
‘Respectability’

By Florence Fisher Parry

Reds planning to resume class war

Earl Browder may be ousted
By Lyle C. Wilson, United Press staff writer

Allies to permit politics in Germany

Perkins: Printers’ drive to oust WLB head snagged

Truman has already refused resignation
By Fred W. Perkins, Pittsburgh Press staff writer

Nationalists quick to move in as farmers’ protest opens door

By Eugene Segal, Scripps-Howard staff writer