America at war! (1941–) – Part 5

8071

Cohen Notes

Potsdam, August 1, 1945, 4 p.m.

TRUMAN: I ask for the reading of the Committee’s report on reparations.

BYRNES: At the meeting of the Foreign section [Secretaries] this morning, many questions were considered which might be taken up here one by one.

First is reparations. The Committee reported no agreement on text for the protocol. The United States and British representatives consider that in return for the capital equipment allocated the Soviets, the Soviets have agreed to refrain from asserting claim to gold, industrial shares and foreign assets. Therefore, they maintain that German external assets should be included as a source of reparations for countries other than Russia and Poland. They took the view that unless this was done the percentages would be unacceptable. The Soviet representatives consider that the Soviets had not relinquished claim to German external assets. The American and British representatives agreed to the balance of the report with the reservation that the Soviets must relinquish their claim to foreign assets.

STALIN: The question which must be made clear is, what is meant by the western zones. The Soviets agree not to claim anything from the western zones.

TRUMAN: The zones occupied by America, Britain and France are the western zones.

STALIN: We don’t claim gold. As to shares in foreign investments everything west of the military demarcation line is relinquished by us. Everything east of the line should go to us.

TRUMAN: That implies [applies] only to German investments east of the line.

STALIN: For example, German investments in Rumania and Bulgaria.

ATTLEE: I agree.

BEVIN: Greece belongs to the British.

STALIN: Austria is divided into parts – how shall we deal with those.

BEVIN: You better give it to us.

STALIN: You want all of Austria? You can have part of Austria and Yugoslavia.

BYRNES: What is the status of the investments in Germany?

STALIN: The shares of enterprises in our zone are at our disposal and those in your zone at yours.

BYRNES: Suppose Berlin companies own assets in our sphere, those assets should go to us.

STALIN: If property is in your zone it would be yours whether it is in United States, Norway, Sweden or Honduras.

BEVIN: This is going back on what we agreed yesterday. Would you, Marshal, renounce all claims outside zones occupied by the Russian Army.

STALIN: We only ask for the property from Finland east as far as Austria.

BEVIN: It is clear that assets owned by Americans and British in these zones would not be affected.

STALIN: We are not at war with Great Britain.

TRUMAN: We are supposed to settle with Yugoslavia and Czechoslovakia in regard to their reparations claim. These countries will, of course, claim German assets within their jurisdiction.

STALIN: Yugoslavia, Czechoslovakia and western Austria are in your zone.

TRUMAN: We agree.

STALIN: Should the agreement go into the protocol? Need it be published in the communiqué?

BYRNES: We think it should go into the protocol and also [be] published in the communiqué. The committee reports should make it clear that other countries are to be satisfied from western zones and from external assets.

STALIN: From the respective external assets.

BYRNES: The committee should be asked to add appropriate language to cover this.

STALIN: Does Secretary Byrnes object to the words “respective assets” in paragraph 3?

BYRNES: Appropriate assets might do better, but I suggest that the committee fix up the language.

STALIN: All right.

BEVIN: The French Government should be invited to become a member of the Reparation Committee.2

STALIN: Why should we not invite Poland?

TRUMAN: I don’t see the reason for bringing in others.

STALIN: If the British insist on France we will not object.

ATTLEE: We have an agreement regarding the feeding and fueling of Berlin for the next 30 days. I suggest that we instruct the Control Commission to provide a program to provide uniform subsistence standards for the next six months. This is a practical matter which requires immediate action.

STALIN: That is a new question. It has not been studied. I do not think it will be possible in the near future to have a high standard of life in Germany. We must first ask the Control Council how they will provide for Berlin needs. We can not come to any decision now.

ATTLEE: I am not asking for figures, I am asking for the Control Commission to draw up a program. We understood that you wanted capital goods from the Ruhr. We want the flow of goods from the other way also.

STALIN: I want the report of the Control Council first.

ATTLEE: But you are asking for advance deliveries.

STALIN: What can I do if I am not ready to take a decision.

BEVIN: We will postpone it.

ATTLEE: There is one other point. The Generalissimo said that Austria should not be called upon for reparation. Is this a firm decision for the protocol?

STALIN: Yes, you can put it in the protocol.

BYRNES: With regard to German external assets, the United States and Britain recommend that steps be taken to control German external assets in nations not part of the United Nations which have taken active part in the war against Germany. This paper was circulated a few days ago.

STALIN: I learned of this only after we agreed on reparations.

BYRNES: The committee failed to agree on paragraph 19 of the economic principles and on the problem of oil supplies to western Europe.

MOLOTOV: We will accept the British draft on paragraph 19.

BYRNES: I believe it was understood that if Article [paragraph] 19 proposed by the British is accepted there should be added a clause at the end indicating that it is not to apply to stipulated deliveries to the Russians from the western zones.

The next subject discussed by the Foreign section [Secretaries] was war criminals. Should the prominent prisoners be referred [to] by names. British and American representatives believe that the naming of defendants should be left to the prosecutors. Soviets accepted the British draft as to language, but wished to add some names.

STALIN: Names are necessary and are very important to give proper orientation. The people should know that we are going to try some industrialists, that is why we mentioned Krupp.

TRUMAN: I don’t like any of it. If you name some, others will think they have escaped.

STALIN: People wonder about Hess living comfortably in England.

ATTLEE: You need not worry about that.

STALIN: I want advance delivery. We should satisfy public opinion.

TRUMAN: We have appointed a judge of our highest court, an able lawyer to work on these problems for us. He is very strongly opposed to giving names in advance. But the Marshal need have no doubt as to our attitude with regard to the prosecution of these men.

STALIN: We will be satisfied with three names.

ATTLEE: Our lawyers take the same view that the Americans do.

STALIN: Our lawyers differ, perhaps you will mention that the first ten principal defendants to be tried will be named within thirty days.

It was so agreed.

BYRNES: On the subject of inland waterways, the Soviet delegation wanted more time.

STALIN: We are ready. We are favorably inclined and we will discuss it tonight.

BYRNES: The economic principles for Germany and the problem of oil for western Europe were being considered by our respective committees, to which they had been referred, with regard to the Soviet proposal that action had been taken by the British and Americans in their zones to stop Fascist activity being carried on in Germany and Austria against the Soviets. The British and Americans agreed to make an investigation and to act if the results of their investigation so warrant it. The Soviet Foreign Minister also brought up the matter of the repatriation of Soviet Citizens. The British promised to investigate this problem as it primarily related to their zone. The Foreign section [Secretaries] also considered four disputes referred to them by the Protocol Committee and settle [settled these?] disputes. They instructed the Protocol Committee that only important decisions should go into the protocol. It was agreed that Rumanian oil investigation procedure should be included in the protocol. The Foreign section [Secretaries] agreed on a paper concerning a revision of the Control Commission’s procedures in Bulgaria, Rumania and Hungary. The Committee’s draft was agreed to with an amendment substituting for one sentence in the Committee’s report. The new agreement for improved procedures for the Control Commission in Hungary. That is, it was agreed that the Hungarian agreement should be basis for the improved machinery in all three countries.

TRUMAN: Is the report of the Foreign section [Secretaries] on this point satisfactory?

ATTLEE: Yes.

STALIN: No objection.

TRUMAN: The President of the National Council of Poland and three delegates called on me this morning and I informed them of our decision of the provisional frontier of western Poland. They asked me to convey the thanks of the Polish Government to all three governments.

BEVIN: I am also happy to announce that the London-Warsaw air communication has been satisfactorily arranged.

BYRNES: The next question considered by the Foreign section [Secretaries] was the question whether we should add in two of our papers where we referred to representatives of Allied President [press], the words “and radio.”

STALIN: I don’t think it would be advisable to mention radio.

ATTLEE: I also think it would not be advisable.

TRUMAN: Our radio is not government owned or controlled. It is set up on the same basis as newspapers. I don’t think there should be any discrimination.

STALIN: I don’t think it is advisable to go into the matter of radio.

TRUMAN: The radio reporters report only to the United States.

STALIN: It is not advisable for us to go into this.

BEVIN: You would have no objection to arrangements between the governments?

STALIN: No.

BYRNES: The next question discussed by the Foreign section [Secretaries] was the distribution of the German merchant marine.

The Committee report was agreed to.

It was also agreed that a joint statement should be published later by the three governments.

BEVIN: I have drafted a clause relating to Poland’s participation in the distribution.

It was accepted.

BYRNES: That disposes of the questions considered by the Foreign section [Secretaries], There are some matters still in the hands of the Committee.

TRUMAN: I suggest a short adjournment of ten minutes.

ATTLEE: Before we should adjourn, I should like to suggest that the conference send a message to Mr. Churchill and Mr. Eden thanking them for their part in its deliberation.

It was so agreed, and Mr. Attlee was asked to draft the messages.

A short adjournment was taken.

BYRNES: May I ask if Mr. Molotov has had a chance to read our paper on Allied property in the satellite states?

MOLOTOV: I can do it only in the evening. If that is not possible, we must dispose of it through diplomatic channel.

BYRNES: I hope that Mr. Molotov may have a chance to read the document before this evening. We will have to have an evening session in any event and I hope very much that we can agree to this paper here.

MOLOTOV: I see no difficulty in substance, but the wording of the paper must be exact.

BYRNES: We will try to make the wording exact by night.

MOLOTOV: I will try.

ATTLEE: I am not satisfied with the paper as it is drafted. It is not equitable.

BYRNES: In what respect is it inequitable?

ATTLEE: When property is removed as booty according to the document the satellite must make compensation.

BYRNES: The paper says the United States looks to the occupying power. Where it is not returned, the United States must demand compensation from the satellite. We also have a question on the point of foreign exchange. There is no more reason for foreign exchange here than there is in the case of reparations or any other support [export?]. The foreign exchange requirement ties up the satellite too tightly.

BYRNES: That is why the paper was circulated on July 26 so that these objections could be raised and considered.

MOLOTOV: I figure that the Americans are nearer the problems than Mr. Attlee. We will discuss it further this evening.

TRUMAN: Shall we consider the communiqué.

ATTLEE: Let us have the Protocol and the Communiqué Committees get to work and we will convene as soon as they have finished – say at 9:00 o’clock.

TRUMAN: I should like a mention in the communiqué of the matter of inland waterways which I brought up.

STALIN: We did not discuss it. It was not mentioned in the lists of subjects to be covered by the conference. We should not be in a hurry[.]

TRUMAN: We discussed it several times.

STALIN: Why should we give preference to the discussion of the waterways over the discussion of the Straits.

TRUMAN: The Straits are in the protocol and in the communiqué.

STALIN: Have we finished. Truman: I don’t think so.

STALIN: I suggest both be mentioned in the protocol but not in the communiqué. Truman: All right.

BEVIN: I should like to ask if [that] the French be associated with our decision on war crimes.

TRUMAN: I don’t see why if things are acted on here they should not be mentioned in the protocol and in the communiqué.

BYRNES: We only wish to say that the matter should be referred to the Council of Foreign Ministers.

STALIN: If we go back to the practice of our previous conferences we find that there are two kinds of decisions, one kind for the protocol and another for the communiqué. The communiqué was much shorter. The other agreements were not secret. There was simply no need for their publication in the communiqué.

TRUMAN: That is all right if I make mention of the decision on inland waterways on [in?] my own report?

STALIN: Of course, you have this right.

Adjournment taken at 2:30 [5:50?] p.m.

8072

Meeting of the Communiqué Subcommittee

Present
United States United Kingdom Soviet Union
Mr. Brown Mr. Golunsky

Brown’s diary entry: “The Foreign Ministers met at 11:00 and sat almost continuously until the Big Three meeting at 3:00 p.m. The Big Three met and a number of points were agreed on.

“I was busy working on communiqué. We had an agreement except on introduction, Tangier, Rumanian oil equipment removal and military talks. Discussion on this latter item interesting. In first draft, I had confined military talks to affairs in Europe. Golunski wanted limitation stricken to appear military talks included Japanese war. Today he wanted to go back to original draft, eliminating [reinstating?] limitations. We decided to pass to Big Three.”

8073

The Special Assistant to the Secretary of State to the President and the Secretary of State

Memorandum

[Potsdam, August 1, 1945]

Subject: COMMUNIQUÉ

Attached is revised draft of communiqué: The Committee is in agreement on this draft with the following exceptions:

  1. Introduction: (I) We and the British prefer the introduction in the attached draft. The Russians have submitted a substitute which is attached.

    The differences are these:
    (a) The Russian draft breaks the introduction by listing all the names of the delegations, about 30 in all. Many of these ore military names and there is only one line in the communiqué about military talk. Our draft lists the Big Three and Foreign Ministers in the lead and the other names at the end of the communiqué.

    (b) Our communiqué gives more details as to the numbers and times of meetings held by the Big Three.
    Neither we or the British feel strongly about the matter but thought we would let the Big Three decide.

  2. On page 1 of Germany, III, last line of first paragraph the Russians wish to delete words “loudly applauded.” This is a British phrase which we accepted.

  3. On orderly transfers of German populations, XIII, Russians wish to delete word “orderly” in title. Dunn and British feel this word should be retained since one of the two principal provisions of the agreement is that the transfers shall be orderly.

  4. The British do not want to include Tangier (XVI) and Russians do not want to include Rumanian oil equipment (XIV). We prefer to include both.

  5. Military Talks (XV). This chapter caused much discussion. Neither Russians nor British like Leahy text. We agreed to a single sentence stating Chiefs of Staffs of the three Governments conferred “on military matters of common interest.”

All agreed on that yesterday.

The British agreed to go along with separate joint statement on Japanese War if we desired.

Today the Russians wanted to go back to sentence saying meetings were held by joint Chiefs of Staff “on military matters of common interest affecting Europe.”

We decided to pass this one up to the Big Three.

The following items are in the protocol but no mention is made of them in the communiqué:

  1. Ruhr
  2. Black Sea Straits
  3. International inland waterways
  4. European Inland Transport Conference
  5. Directive to military commanders in Allied Control Council
  6. Allied property in Southeastern Europe.

In connection with the discussion this afternoon on the inland waterways proposal, I would also like to call your attention to the fact that in Trusteeships (XI) and in the second part of Iran (XV) direct mention is made of the fact that the matters are being referred to the [Council of] Foreign Ministers.

W[ALTER] B[ROWN]

[Attachment]

[Soviet Draft of the Communiqué]

I. [Introduction – alternative a]

Draft proposed by the Soviet Union of Section I of the Report on the Tripartite Conference at Berlin

A Conference of the leaders of the three Allied Powers, the President of the United States of America, H. S. Truman, the President of the Council of Peoples Commissars, J. V. Stalin, the Prime Minister of the United Kingdom, Winston S. Churchill, and, from July 28 onwards, the Prime Minister of the United Kingdom, Clement R. Attlee, took place in Berlin from July 17 until August 1, 1945, with the participation of the Foreign Secretaries, military and other advisers.

The President of the United States of America was invited by his two colleagues to be the Chairman of the Conference.

Besides the heads of the three Governments, the following took part in the Conference:

  • For the Soviet Union: [blank]
  • For the United Kingdom: [blank]
  • For the United States: [blank]

During the course of the Conference there were daily meetings of the Foreign Ministers. Committees appointed by the Foreign Ministers for preliminary consideration of the questions before the Conference also met daily.

The meetings of the Conference were held at the Cecilien Hof near Potsdam. The Conference ended on August 1, 1945.

Important decisions and agreements were reached and they are announced in this report. Views were exchanged on a number of other questions that deeply concern the three Governments and consideration of these matters will be continued by the Council of Foreign Ministers established by the Conference.

This Conference strengthened the ties among the three Governments and extended the scope of their collaboration and understanding.

President Truman, Generalissimo Stalin and Prime Minister Attlee leave this Conference with renewed confidence that their governments and peoples, together with the other United Nations, will ensure the creation of a just and enduring peace.

I. [Introduction – alternative b]

[Draft proposed by the U.S. and British Delegations]

On July 17, 1945, the President of the United States of America, Harry S. Truman, the Chairman of the Council of People’s Commissars of the Union of Soviet Socialist Republics, Generalissimo J. V. Stalin, and the Prime Minister of Great Britain, Winston S. Churchill, together with Mr. Clement R. Attlee, met in the Tripartite Conference of Berlin. They were accompanied by the foreign secretaries of the three Governments, Mr. James F. Byrnes, Mr. V. M. Molotov, and Mr. Anthony Eden, the Chiefs of Staff, and other advisers.

There were nine meetings between July 17 and July 25. The Conference was then interrupted for two days while the results of the British general election were being declared.

On July 28 Mr. Attlee returned to the Conference as Prime Minister, accompanied by the new Secretary of State for Foreign Affairs, Mr. Ernest Bevin. There were four additional meetings. During the course of the Conference there were daily meetings of the Foreign Ministers. Committees appointed by the Foreign Ministers for preliminary consideration of the questions before the Conference also met daily.
The meetings of the Conference were held at the Cecilien Hof near Potsdam. The Conference ended on August 1, 1945.

Important decisions and agreements were reached and they are announced in this report. Views were exchanged on a number of other questions that deeply concern the three Governments and consideration of these matters will be continued by the Council of Foreign Ministers established by the Conference.

This Conference strengthened the ties among the three governments and extended the scope of their collaboration and understanding.

President Truman, Generalissimo Stalin and Prime Minister Attlee leave this Conference with renewed confidence that their governments and peoples, together with the other United Nations, will ensure the creation of a just and enduring peace.

I. [Introduction – alternative c]

[Redraft by the British Delegation]
On July 17, 1945, the President of the United States of America, Harry S. Truman, the Chairman of the Council of People’s Commissars of the Union of Soviet Socialist Republics, Generalissimo J. V. Stalin, and the Prime Minister of Great Britain, Winston S. Churchill, together with Mr. Clement R. Attlee, met in the Tripartite Conference of Berlin. They were accompanied by the foreign secretaries of the three Governments, Mr. James F. Byrnes, Mr. V. M. Molotov, and Mr. Anthony Eden, the Chiefs of Staff, and other advisers.

There were nine meetings between July 17 and July 25. The Conference was then interrupted for two days while the results of the British general election were being declared.

On July 28 Mr. Attlee returned to the Conference as Prime Minister, accompanied by the new Secretary of State for Foreign Affairs, Mr. Ernest Bevin. Four days of further discussion then took place. During the course of the Conference there were regular meetings of the Heads of the Three Governments accompanied by the foreign secretaries, and separate8 meetings of the Foreign Secretaries alone. Committees appointed by the Foreign Secretaries for preliminary consideration of questions before the Conference also met daily.
The meetings of the Conference were held at the Cecilienhof near Potsdam. The Conference ended on August 1, 1945.

Important decisions and agreements were reached. Views were exchanged on a number of other questions [that deeply concern the three Governments] and consideration of these matters will be continued by the Council of Foreign Ministers established by the Conference.

President Truman, Generalissimo Stalin and Prime Minister Attlee leave this Conference, which has strengthened the ties between the three governments and extended the scope of their collaboration and understanding, with renewed confidence that their governments and peoples, together with the other United Nations, will ensure the creation of a just and enduring peace.

II. Establishment of a Council of Foreign Ministers

The Conference reached an agreement for the establishment of a Council of Foreign Ministers representing the five principal Powers to continue the necessary preparatory work for the peace settlements and to take up other matters which from time to time may be referred to the Council by agreement of the governments participating in the Council.

The text of the agreement for the establishment of the Council of Foreign Ministers is as follows:

  1. There shall be established a Council composed of the Foreign Ministers of the United Kingdom, the Union of Soviet Socialist Republics, China, France and the United States.

  2. (i) The Council shall normally meet in London, which shall be the permanent seat of the joint Secretariat which the Council will form. Each of the Foreign Ministers will be accompanied by a high-ranking Deputy, duly authorized to carry on the work of the Council in the absence of his Foreign Minister, and by a small staff of technical advisers.

    (ii) The first meeting of the Council shall be held in London not later than September 1st 1945. Meetings may be held by common agreement in other capitals as may be agreed from time to time.

  3. (i) As its immediate important task, the Council shall be authorised to draw up, with a view to their submission to the United Nations, treaties of peace with Italy, Roumania, Bulgaria, Hungary and Finland, and to propose settlements of territorial questions outstanding on the termination of the war in Europe. The Council shall be utilised for the preparation of a peace settlement for Germany to be accepted by the Government of Germany when a government adequate for the purpose is established.

    (ii) For the discharge of each of these tasks the Council will be composed of the Members representing those States which were signatory to the terms of surrender imposed upon the enemy State concerned. For the purposes of the peace settlement for Italy, France shall be regarded as a signatory to the terms of surrender for Italy. Other Members will be invited to participate when matters directly concerning them are under discussion.

    (iii) Other matters may from time to time be referred to the Council by agreement between the Member Governments.

  4. (i) Whenever the Council is considering a question of direct interest to a State not represented thereon, such State should be invited to send representatives to participate in the discussion and study of that question.

    (ii) The Council may adapt its procedure to the particular problem under consideration. In some cases it may hold its own preliminary discussions prior to the participation of other interested States. In other cases, the Council may convoke a formal conference of the State[s] chiefly interested in seeking a solution of the particular problem.

In accordance with the decision of the Conference the three Governments have each addressed an identical invitation to the Governments of China and France to adopt this text and to join in establishing the Council.
The establishment of the Council of Foreign Ministers for the specific purposes named in the text will be without prejudice to the agreement of the Crimea Conference that there should be periodic consultation among the Foreign Secretaries of the United States, the Union of Soviet Socialist Republics and the United Kingdom.

The Conference also considered the position of the European Advisory Commission in the light of the agreement to establish the Council of Foreign Ministers. It was noted with satisfaction that the Commission had ably discharged its principal tasks by the recommendations that it had furnished for the terms of Germany’s unconditional surrender[,] for the zones of occupation in Germany and Austria, and for the inter-Allied control machinery in those countries. It was felt that further work of a detailed character for the coordination of Allied policy for the control of Germany and Austria would in future fall within the competence of the Allied Control Council at Berlin and the Allied Commission at Vienna. Accordingly, it was agreed to recommend that the European Advisory Commission be dissolved.

III. Germany

The Allied armies are in occupation of the whole of Germany and the German people have begun to atone for the terrible crimes committed under the leadership of those whom, in the hour of their success, they (loudly applauded and) blindly obeyed.

Agreement has been reached at this Conference on the political and economic principles of a coordinated Allied policy toward defeated Germany during the period of Allied control.

The purpose of this agreement is to carry out the Crimea declaration on Germany. German militarism and Nazism will be extirpated and the Allies will take in agreement together, now and in the future, the other measures necessary to assure that Germany never again will threaten her neighbors or the peace of the world.

It is not the intention of the Allies to destroy or enslave the German people. It is the intention of the Allies that the German people be given the opportunity to prepare for the eventual reconstruction of their life on a democratic and peaceful basis. If their own efforts are steadily directed to this end, it will be possible for them in due course to take their place among the free and peaceful peoples of the world.

The text of the agreement is as follows:

The Political and Economic Principles to Govern the Treatment of Germany in the Initial Control Period

A. Political Principles

  1. In accordance with the Agreement on Control Machinery in Germany, supreme authority in Germany is exercised on instructions from the respective Governments, by the Commanders-in-Chief of the armed forces of the United States of America, the United Kingdom, the Union of Soviet Socialist Republics, and the French Republic, each in his own zone of occupation, and also jointly, in matters affecting Germany as a whole, in their capacity as members of the Control Council.

  2. So far as is practicable, there shall be uniformity of treatment of the German population throughout Germany.

  3. The purposes of the occupation of Germany by which the Control Council shall be guided are:

    (i) The complete disarmament and demilitarization of Germany and the elimination or control of all German industry that could be used for military production. To these ends:

    • (a) All German land, naval and air forces, the SS, SA, SD and Gestapo, with all their organizations, staffs and institutions, including the General Staff, the Officers’ Corps, Reserve Corps, military schools, war veterans’ organizations and all other military and quasi-military organizations, together with all clubs and associations which serve to keep alive the military tradition in Germany, shall be completely and finally abolished in such manner as permanently to prevent the revival or reorganization of German militarism and Nazism;

    • (b) All arms, ammunition and implements of war and all specialized facilities for their production shall be held at the disposal of the Allies or destroyed. The maintenance and production of all aircraft and all arms, ammunition and implements of war shall be prevented.

    (ii) To convince the German people that they have suffered a total military defeat and that they cannot escape responsibility for what they have brought upon themselves, since their own ruthless warfare and the fanatical Nazi resistance have destroyed German economy and made chaos and suffering inevitable.

    (iii) To destroy the National Socialist Party and its affiliated and supervised organizations, to dissolve all Nazi institutions, to ensure that they are not revived in any form, and to prevent all Nazi and militarist activity or propaganda.

    (iv) To prepare for the eventual reconstruction of German political life on a democratic basis and for eventual peaceful cooperation in international life by Germany.

  4. All Nazi laws which provided the basis of the Hitler regime or established discrimination on grounds of race, creed, or political opinion shall be abolished. No such discriminations, whether legal, administrative or otherwise, shall be tolerated.

  5. War criminals and those who have participated in planning or carrying out Nazi enterprises involving or resulting in atrocities or war crimes shall be arrested and brought to judgment. Nazi leaders, influential Nazi supporters and high officials of Nazi organizations and institutions and any other persons dangerous to the occupation or its objectives shall be arrested and interned.

  6. All members of the Nazi Party who have been more than nominal participants in its activities and all other persons hostile to Allied purposes shall be removed from public and semi-public office, and from positions of responsibility in important private undertakings. Such persons shall be replaced by persons who, by their political and moral qualities, are deemed capable of assisting in developing genuine democratic institutions in Germany.

  7. German education shall be so controlled as completely to eliminate Nazi and militarist doctrines and to make possible the successful development of democratic ideas.

  8. The judicial system will be reorganized in accordance with the principles of democracy, of justice under law, and of equal rights for all citizens without distinction of race, nationality or religion.

  9. The administration of affairs in Germany should be directed towards the decentralization of the political structure and the development of local responsibility. To this end:

    (i) local self-government shall be restored throughout Germany on democratic principles and in particular through elective councils as rapidly as is consistent with military security and the purposes of military occupation;

    (ii) all democratic political parties with rights of assembly and of public discussion shall be allowed and encouraged throughout Germany;

    (iii) representative and elective principles shall be introduced into regional, provincial and state (Land) administration as rapidly as may be justified by the successful application of these principles in local self-government;

    (iv) for the time being no central German government shall be established. Notwithstanding this, however, certain essential central German administrative departments, headed by State Secretaries, shall be established, particularly in the fields of finance, transport, communications, foreign trade and industry. Such departments will act under the direction of the Control Council.

  10. Subject to the necessity for maintaining military security, freedom of speech, press and religion shall be permitted, and religious institutions shall be respected. Subject likewise to the maintenance of military security, the formation of free trade unions shall be permitted.

B. Economic Principles

  1. In order to eliminate Germany’s war potential, the production of arms, ammunition and implements of war as well as all types of aircraft and sea-going ships shall be prohibited and prevented. Production of metals, chemicals, machinery and other items that are directly necessary to a war economy shall be rigidly controlled and restricted to Germany’s approved post-war peacetime needs to meet the objectives stated in Paragraph 14. Productive capacity not needed for permitted production shall be removed in accordance with the reparations plan recommended by the Allied Commission on Reparations and approved by the Governments concerned or if not removed shall be destroyed.

  2. At the earliest practicable date, the German economy shall be decentralized for the purpose of eliminating the present excessive concentration of economic power as exemplified in particular by cartels, syndicates, trusts and other monopolistic arrangements. Notwithstanding this, however, and for the purpose of achieving the objectives set forth herein, certain forms of central administrative machinery, particularly in the fields of Finance, Transportation and Communications, shall be maintained or restored.

  3. In organizing the German economy, primary emphasis shall be given to the development of agriculture and peaceful domestic industries.

  4. During the period of occupation Germany shall be treated as a single economic unit. To this end common policies shall be established in regard to:
    (a) mining and industrial production and allocation;
    (b) agriculture, forestry and fishing;
    (c) wages, prices and rationing;
    (d) import and export programs for Germany as a whole;
    (e) currency and banking, central taxation and customs;
    (f) reparation and removal of industrial war potential;
    (g) transportation and communications.

    In applying these policies account shall be taken, where appropriate, of varying local conditions.

  5. Allied controls shall be imposed upon the German economy but only to the extent necessary:

    (a) to carry out programs of industrial disarmament and demilitarization, of reparations, and of approved exports and imports.

    (b) to assure the production and maintenance of goods and services required to meet the needs of the occupying forces and displaced persons in Germany and essential to maintain in Germany average living standards not exceeding the average of the standards of living of European countries. (European countries means all European countries excluding U.K. and USSR)

    (c) to ensure in the manner determined by the Control Council the equitable distribution of essential commodities between the several zones so as to produce a balanced economy throughout Germany and reduce the need for imports.

    (d) to control German industry and all economic and financial international transactions, including exports and imports, with the aim of preventing Germany from developing a war potential and of achieving the other objectives named herein.

    (e) to control all German public or private scientific bodies, research and experimental institutions, laboratories, cetera, connected with economic activities.

  6. In the imposition and maintenance of economic controls established by the Control Council, German administrative machinery shall be created and the German authorities shall be required to the fullest extent practicable to proclaim and assume administration of such controls. Thus it should be brought home to the German people that the responsibility for the administration of such controls and any breakdown in these controls will rest with themselves. Any German controls which may run counter to the objectives of occupation will be prohibited.

  7. Measures shall be promptly taken:
    (a) to effect essential repair of transport;
    (b) to enlarge coal production;
    (c) to maximize agriculture output; and
    (d) to effect emergency repair of housing and essential utilities.

  8. Appropriate steps shall be taken by the Control Council to exercise control and the power of disposition over German owned external assets not already under the control of United Nations which have taken part in the war against Germany.

  9. Payment of Reparations should leave enough resources to enable the German people to subsist without external assistance. In working out the economic balance of Germany the necessary means must be provided to pay for imports approved by the Control Council in Germany. The proceeds of exports from current production and stocks shall be available in the first place for payment for such imports.

    The above clause will not apply to the equipment and products referred to in paragraphs 4 (a) and 4 (b) of the Reparations Agreement.

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IV. Reparations from Germany

In accordance with the Crimea decision that Germany be compelled to compensate to the greatest possible extent for the loss and suffering that she has caused to the United Nations and for which the German people cannot escape responsibility, the following agreement on reparations was reached:

  1. Reparation claims of USSR shall be met by removals from the zone of Germany occupied by the USSR.

  2. The USSR undertakes to settle the reparation claims of Poland from its own share of reparations.

  3. The reparations claims of the United States, the United Kingdom and other countries entitled to reparations shall be met from the Western Zones and from appropriate German external assets.

  4. In addition to the reparations to be taken by the USSR from its own zone of occupation, the USSR shall receive additionally from the Western Zones:

    (a) 15 percent of such usable and complete industrial capital equipment, in the first place from the metallurgical, chemical and machine manufacturing industries as is unnecessary for the German peace economy and should be removed from the Western Zones of Germany, in exchange for an equivalent value of food, coal, potash, zinc, timber, clay products, petroleum products, and such other commodities as may be agreed upon.

    (b) 10 percent of such industrial capital equipment as is unnecessary for the German peace economy and should be removed from the Western Zones, to be transferred to the Soviet Government on reparations account without payment or exchange of any kind in return.

    Removals of equipment as provided in (a) and (b) above shall be made simultaneously.

  5. The amount of equipment to be removed from the Western Zones on account of reparations must be determined within six months from now at the latest.

  6. Removals of industrial capital equipment shall begin as soon as possible and shall be completed within two years from the determination specified in paragraph 5. The delivery of products covered by 4 (a) above shall begin as soon as possible and shall be made by the USSR in agreed installments within five years of the date hereof. The determination of the amount and character of the industrial capital equipment unnecessary for the German peace economy and therefore available for reparation shall be made by the Control Council under policies fixed by the Allied Commission on Reparations, with the participation of France, subject to the final approval of the Zone Commander in the Zone from which the equipment is to be removed.

  7. Prior to the fixing of the total amount of equipment subject to removal, advance deliveries shall be made in respect to such equipment as will be determined to be eligible for delivery in accordance with the procedure set forth in the last sentence of paragraph 6.

  8. The Soviet Government renounces all claims to shares of German enterprises which are located in the Western Zones of Germany as well as to German foreign assets in all countries except those specified in paragraph 9 below.

  9. The Governments of the U.K. and USA renounce their claims to shares of German enterprises which are located in the Eastern Zone of occupation in Germany, as well as to German foreign assets in Bulgaria, Finland, Hungary, Rumania and Eastern Austria.

  10. The Soviet Government makes no claims to gold captured by the Allied troops in Germany.

V. Disposition of the German Navy and merchant ships

The Conference agreed in principle upon arrangements for the use and disposal of the surrendered German Fleet and merchant ships. It was decided that the Three Governments would appoint experts to work out together detailed plans to give effect to the agreed principles. A further joint statement will be published simultaneously by the Three Governments in due course.

VI. City of Koenigsberg and the adjacent area

The Conference examined a proposal by the Soviet Government that pending the final determination of territorial questions at the peace settlement, the section of the western frontier of the Union of Soviet Socialist Republics which is adjacent to the Baltic Sea should pass from a point on the eastern shore of the Bay of Danzig to the east, north of Braunsberg-Goldep, to the meeting point of the frontiers of Lithuania, the Polish Republic and East Prussia.

The Conference has agreed in principle to the proposal of the Soviet Government concerning the ultimate transfer to the Soviet Union of the City of Koenigsberg and the area adjacent to it as described above subject to expert examination of the actual frontier.

The President of the United States and the British Prime Minister have declared that they will support the proposal of the Conference at the forthcoming peace settlement.

VII. War criminals

The Three Governments have taken note of the discussions which have been proceeding in recent weeks in London between British, United States, Soviet and French representatives with a view to reaching agreement on the methods of trial of those major war criminals whose crimes under the Moscow Declaration of October, 1943 have no particular geographical localisation. The Three Governments reaffirm their intention to bring those criminals to swift and sure justice. They hope that the negotiations in London will result in speedy agreement being reached for this purpose, and they regard it as a matter of great importance that the trial of those major criminals should begin at the earliest possible date. The first list of defendants will be published before September 1.

VIII. Austria

The Conference examined a proposal by the Soviet Government on the extension of the authority of the Austrian Provisional Government to all of Austria.

The three Governments agreed that they were prepared to examine this question after the entry of the British and American forces into the city of Vienna.

It was agreed that reparations should not be exacted from Austria.

IX. Poland

The Conference considered questions relating to the Polish Provisional Government and the western boundary of Poland.

The following statement on the Polish Provisional Government was approved:

We have taken note with pleasure of the agreement reached among representative Poles from Poland and abroad which has made possible the formation, in accordance with the decisions reached at the Crimea Conference, of a Polish Provisional Government of National Unity recognized by the Three Powers. The establishment by the British and United States Governments of diplomatic relations with the Polish Provisional Government has resulted in the withdrawal of their recognition from the former Polish Government in London, which no longer exists.

The British and United States Governments have taken measures to protect the interest of the Polish Provisional Government as the recognized government of the Polish State in the property belonging to the Polish State located in their territory and under their control, whatever the form of this property may be. They have further taken measures to prevent alienation to third parties of such property. All proper facilities will be given to the Polish Provisional Government for the exercise of the ordinary legal remedies for the recovery of any property belonging to the Polish State which may have been wrongfully alienated.

The three Powers are anxious to assist the Polish Provisional Government in facilitating the return to Poland as soon as practicable of all Poles abroad who wish to go, including members of the Polish Armed Forces and the Merchant Marine. They expect that those Poles who return home shall be accorded personal and property rights on the same basis as all Polish citizens.

The three Powers note that the Polish Provisional Government in accordance with the Crimea Conference has agreed to the holding of free and unfettered elections as soon as possible on the basis of universal suffrage and secret ballot in which all democratic and anti-Nazi parties shall have the right to take part and to put forward candidates, and that representatives of the Allied press shall enjoy full freedom to report to the world upon developments in Poland before and during the elections.

The following agreement was reached on the western boundary of Poland:

In conformity with the agreement on Poland reached at the Crimea Conference the three Heads of Government have sought the opinion of the Polish Provisional Government of National Unity in regard to the accession of territory in the north and west which Poland should receive. The President of the National Council of Poland and members of the Polish Provisional Government of National Unity have been received at the Conference and have fully presented their views. The three Heads of Government reaffirm their opinion that the final delimitation of the western frontier of Poland should await the peace settlement.

The three Heads of Government agree that, pending the final determination of Poland’s western frontier, the former German territories east of a line running from the Baltic Sea through Swinemunde, and thence along the Oder River to the confluence of the western Neisse River and along the western Neisse to the Czechoslovak frontier, including that portion of East Prussia not placed under the administration of the Union of Soviet Socialist Republics in accordance with the understanding reached at this conference and including the area of the former free city of Danzig, shall be under the administration of the Polish State and for such purposes should not be considered as part of the Soviet zone of occupation in Germany.

X. Conclusion of peace treaties and admission to the United Nations

In view of the victorious end of the war in Europe and the necessity of establishing as soon as possible the conditions of lasting peace, the Conference agreed upon the following statement of common policy:

The Three Governments consider it desirable that the present anomalous position of Italy, Bulgaria, Finland, Hungary and Rumania should be terminated by the conclusion of Peace Treaties, so that as soon as possible thereafter relations between them and the ex-enemy States can, where necessary, be reestablished on a normal footing. They trust that the other interested Allied Governments will share these views.

For their part the Three Governments have included the preparation of a Peace Treaty with Italy as the first among the immediate important tasks to be undertaken by the new Council of Foreign Ministers. Italy was the first of the Axis Powers to break with Germany, to whose defeat she has made a material contribution, and has now joined with the Allies in the struggle against Japan. Italy has freed herself from the Fascist regime and is making good progress towards the reestablishment of a democratic government and institutions. The conclusion of such a Peace Treaty with a recognized and democratic Italian Government will make it possible for the Three Governments to fulfil their desire to support an application from Italy for membership of the United Nations.

The Three Governments have also charged the Council of Foriegn Ministers with the task of preparing Peace Treaties for Bulgaria, Finland, Hungary and Rumania. The conclusion of Peace Treaties with recognized democratic Governments in these States will also enable the three Governments to support applications from them for membership of the United Nations. The three Governments agree to examine each separately in the near future, in the light of the conditions then prevailing, the establishment of diplomatic relations with Finland, Rumania, Bulgaria, and Hungary to the extent possible prior to the conclusion of peace treaties with those countries.

The three Governments have no doubt that in view of the changed conditions resulting from the termination of the war in Europe, representatives of the Allied press will enjoy full freedom to report to the world upon developments in Rumania, Bulgaria, Hungary and Finland.

As regards the admission of other states into the United Nations Organization, Article 4 of the Charter of the United Nations declared that:

  1. Membership in the United Nations is open to all other peace-loving States who accept the obligations contained in the present Charter and, in the judgment of the organization, are able and willing to carry out these obligations;

  2. the admission of any such State to membership in the United Nations will be effected by a decision of the General Assembly upon the recommendation of the Security Council.

The Three Governments, so far as they are concerned, will support applications for membership from these states which have remained neutral during the war and which fulfil the qualifications set out above.
The Three Governments feel bound however to make it clear that they for their part would not favor any application for membership put forward by the present Spanish Government, which, having been founded with the support of the Axis Powers, does not, in view of its origins, its nature, its record and its close association with the aggressor States, possess the qualifications necessary to justify such membership.

XI. Trusteeship territories

The Conference examined a proposal by the Soviet Government concerning trusteeship territories as defined in the decision of the Crimea Conference and in the Charter of the United Nations Organization.
After an exchange of views on this question it was decided that the disposition of any former Italian territories was one to be decided in connection with the preparation of a peace treaty with Italy and that the question of Italian territory would be considered by the September Council of Ministers of Foreign Affairs.

XII. Revised Allied Control Commission procedure in Rumania, Bulgaria, and Hungary

The Three Governments have taken note that the Soviet Representatives on the Allied Control Commissions in Rumania, Bulgaria and Hungary, have communicated to their United Kingdom and United States colleagues proposals for improving the work of the Control Commission, now that hostilities in Europe have ceased.

The Three Governments agree that the revision of the procedures of the Allied Control Commissions in these countries will now be undertaken, taking into account the interests and responsibilities of the Three Governments which together presented the terms of armistice to the respective countries, and accepting as a basis, in respect of all three countries, the Soviet Government’s proposals for Hungary.

XIII. (Orderly) Transfers of German populations

The Conference reached the following agreement on the removal of Germans from Poland, Czechoslovakia and Hungary:

The Three Governments, having considered the question in all its aspects, recognize that the transfer of German populations, or elements thereof, remaining in Poland, Czechoslovakia and Hungary, will have to be undertaken. They agree that any transfers that take place should be effected in an orderly and humane manner.

Since the influx of a large number of Germans into Germany would increase the burden already resting on the occupying authorities, they consider that the Allied Control Council in Germany should in the first instance examine the problem with special regard to the question of the equitable distribution of these Germans among the several zones of occupation. They are accordingly instructing their respective representatives on the Control Council to report to their Governments as soon as possible the extent to which such persons have already entered Germany from Poland, Czechoslovakia and Hungary, and to submit an estimate of the time and rate at which further transfers could be carried out, having regard to the present situation in Germany.

The Czechoslovak Government, the Polish Provisional Government and the Control Council in Hungary are at the same time being informed of the above, and are being requested meanwhile to suspend further expulsions pending the examination by the Governments concerned of the report from their representatives on the Control Council.

XIV. Bilateral commissions to investigate the removal of oil equipment from Rumania

The Conference agreed to set up two bilateral commissions of experts, one to be composed of United Kingdom and Soviet Members, and one to be composed of United States and Soviet members, to investigate the facts and examine the documents, as a basis for the settlement of questions arising from the removal of oil equipment from Rumania. It was further agreed that these experts shall begin their work within ten days, on the spot.

XV. Iran

The Conference has decided that Allied troops should be withdrawn immediately from Tehran, and that further stages of the withdrawal of troops from Iran should be considered at the meeting of the Council of Foreign Ministers to be held in London in September 1945.

XVI. The International Zone of Tangier

A proposal by the Soviet Government was examined and the following decisions were reached.
Having examined the question of the Zone of Tangier, the three Governments have agreed that this Zone, which includes the city of Tangier and the area adjacent to it, in view of its special strategic importance shall remain international.

The question of Tangier will be discussed in the near future at a meeting in Paris of representatives of the Governments of the Union of Soviet Socialist Republics, the United States of America, the United Kingdom, and France.

XVII. Military talks

During the Conference there were meetings between the chiefs of Staff of the three Governments on military matters of common interest (affecting Europe).

XVIII. List of delegations

For the United States
• The President
• The Secretary of State, James F. Byrnes
• Fleet Admiral William D. Leahy, USN, Chief of Statt to the President
• Joseph E. Davies, Special Ambassador
• Edwin Pauley, Special Ambassador
• W. Averell Harriman[,] Ambassador to the USSR
• General of the Army, George C. Marshall, Chief of Staff, United States Army
• Fleet Admiral, Ernest J. King, USN, Chief of Naval Operations and Commander in Chief, U.S. Fleet
• General of the Army, H. H. Arnold, U.S. Army Air Forces
• Lieutenant General Brehon B. Somervell, Commanding General, Army Service Forces
• Vice Admiral Emory S. Land, War Shipping Administrator
• William L. Clayton[,] Assistant Secretary of State
• James C. Dunn[,] Assistant Secretary of State
• Ben Cohen, Special Assistant to the Secretary of State
• H. Freeman Matthews, Director of European Affairs, State Department
• Charles E. Bohlen[,] Assistant to the Secretary,
• (together with political, military and technical advisers).

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The Pittsburgh Press (August 1, 1945)

800 B-29s RIP JAPAN
6,000 tons rained on five cities

Biggest Superfort attack yet spreads ruin through Honshu

…

8076

Truman wins concessions at Potsdam

Final conference of Big Three underway
By Merriman Smith, United Press staff writer

…

8077

Petain tried to save people but harmed France, Leahy quoted

Admiral’s letter to marshal read at trial; says Vichy leader voiced hope for Nazi defeat

…

8078

Laval in Paris to face trial

Vichy chief handed over by U.S. Army

…

8079

Quit ‘lying’ about father, Elliott asks

Young Roosevelt takes full blame

…

8080

Legless soldier’s wife ‘stolen’

War veteran faces ‘most painful hurt’

…

8081

They’ll hang –
Germans stunned as Yanks doom 7

Sentenced to die for murder of 6 Americans

…

8082

Japs put American captives in strategic target areas

U.S. protests; enemy action won’t save them from methodical air attacks

…

8083

Progress made in travel crisis

Army to release railroad men

…

8084

Senator urges free overseas trips for G.I.’s

…

8085

I DARE SAY —
Control or subsidy?

By Florence Fisher Parry

…

8086

Reporter killed in bomber crash

…

8087

Stricken senator conscious at times

HURON, South Dakota (UP) – Sen. Harlan J. Bushfield (R-South Dakota), gravely ill from a cerebral hemorrhage suffered aboard a train here yesterday, has regained consciousness at intervals, his physicians reported today.

The senator, en route from Washington to his home in Miller when stricken, rested “fairly comfortably” last night, but otherwise little change was noted in his critical condition, physicians said.

8088

1st wife to let captain ‘sweat’

Mrs. Schultz believes he planned it long ago

…

8089

In Washington –
Post-war plan of 15 points given Senate

Barkley outlines proposed program

…

8090

Letters back plan to ban worldwide peacetime drill

‘Wonderfully idealistic contemplation’ apparently endorsed by U.S. citizens
By Daniel M. Kidney, Scripps-Howard staff writer

…