Potsdam Conference (TERMINAL)

Background of news –
A different Potsdam

By Bertram Benedict

London press protests gag by Big Three

Paper predicts rumor scramble

Simms: U.S. lives may depend on future of Mikado

Bitter debate rages over disposition of Jap Emperor
By William Philip Simms, Scripps-Howard foreign editor

Youngstown Vindicator (July 18, 1945)

Editorial: Our policy toward Hirohito

ON THE RECORD —
The unconditional surrender of Japan

By Dorothy Thompson

Lawrence: Russians seen in peace role

Molotov’s talk with Jap envoy may foreshadow surrender move
By David Lawrence

U.S. State Department (July 18, 1945)

761.94/7-2145: Telegram

The Japanese Ambassador in the Soviet Union to the Japanese Minister of Foreign Affairs

Moscow, July 18, 1945 — 11:28 p.m.
[Translation]
very secret
very urgent

1416

Re your telegram No. 913-2

The so-called unconditional surrender or peace obtained by some-thing close to unconditional surrender referred to in my telegram No. 1392 and others which I sent from time to time, omits the problem of protecting the fundamental character of our nation. It goes without saying that even in conducting negotiations with the Soviets on the subject of your telegram, the absolute desire on the part of 70 million citizens as regards our form of government should be forcefully stressed. Therefore I have already added a statement in the latter portion of my telegram No. 1143, believing that there should be no fear of a misunderstanding arising therefrom on this matter; I mention this only in order to make sure.

If the matter of the preservation of our form of government were already taken care of, whether you call it unconditional surrender or whether you call it something close to this condition, in the final analysis it is a matter of degree. As for us I think it should not be made an absolute condition. Concerning the early portion of the telegram, I would like to express my humble opinion at another time after giving the matter full consideration.

Log of the President’s Trip to the Berlin Conference

Wednesday, July 18:

Sergeant Truman had breakfast with the President this morning.

The President conferred with the Secretary of State and a number of his advisers during the forenoon.

At 1315 the President, accompanied by Mr. Ross, General Vaughan, and Captain Vardaman, left the Little White House by foot for the Prime Minister’s quarters. There the President lunched privately with the Prime Minister while Mr. Ross, General Vaughan, and Captain Vardaman had lunch with Junior Commander Mary Churchill and some, other members of the Prime Minister’s personal staff.

At 1450 the President, together with the Prime Minister and Miss Churchill, left the Prime Minister’s residence and walked down the street to Mr. Eden’s quarters where they met Mr. Eden and Secretary Byrnes. The party then returned to the Prime Minister’s house. The President’s party assembled at the Prime Minister’s and left with him for Generalissimo Stalin’s quarters so that the President could return Marshal Stalin’s earlier call.

At 1500 a pouch with mail for the White House was dispatched to Washington.

1504: The President and his party arrived at the Generalissimo’s quarters. The President was met as he alighted from his car by Mr. Molotov who escorted him and his party inside where Mr. Stalin awaited. Although most of our party had just left the luncheon table, we were ushered to a large dining table where a buffet lunch was served us. After lunch with attending toasts, the President talked briefly with the Generalissimo. Then they posed for still and motion pictures. The President and party left the Generalissimo’s house at 1600 for Cecilienhof. We arrived at the Palace at 1608.

At 1615 the second meeting of the Berlin Conference was convened. The meeting adjourned at 1800, and the President and his party left immediately to return to the Little White House.

1930: Assistant Secretary Clayton, Assistant Secretary Dunn, and Mr. Donald Russell were dinner guests of the President. The U.S. Headquarters, Berlin District, Army Band, under the direction of Warrant Officer Frank J. Rosato, played during the dinner hour…

Salzburger Nachrichten (July 19, 1945)

Truman führt den Vorsitz

BERLIN, 18. Juli (PW) – Am Dienstagnachmittag begann in Potsdam die Dreimächte-Konferenz. Folgendes amtliche Kommuniqué wurde ausgegeben:

Die Potsdamer Konferenz der Regierungschefs von Großbritannien, den Vereinigten Staaten und der Sowjetunion nahm heute um 17 Uhr ihren Anfang. Der Präsident der Vereinigten Staaten wurde von den beiden anderen Regierungschefs aufgefordert, den Vorsitz bei den Zusammenkünften der Konferenz zu übernehmen. Es fand ein vorläufiger Meinungsaustausch darüber statt, welche Fragen von den drei Regierungschefs entschieden werden sollen. Ferner wurde beschlossen, dass die drei Außenminister regelmäßig zusammentreffen sollen, um die vorbereitende Tätigkeit der Konferenz durchzuführen.

Churchill lud Präsident Truman zu einem Frühstück in die Villa am See den Wohnsitz des Ministerpräsidenten, ein. In einer der benachbarten Villen empfing der britische Außenminister Anthony Eden den amerikanischen Außenminister James Byrnes als Gast.

L’Aube (July 19, 1945)

Quinze hommes autour d‘une table ronde gardent le secret de leurs entretiens

…et 180 journalistes estiment s’être déplacés pour rien

U.S. State Department (July 19, 1945)

871.6363/7-1945: Telegram

The Chargé in the Soviet Union to the Acting Secretary of State

Moscow, July 19, 1945 — midnight
Secret
2634

Letter went forward to Foreign Office in conformity with Department’s 1621, July 16, warning that exclusive Soviet Rumanian trade pact and monopolistic agreements on oil would cause serious concern in United States Government and might compel United States Government to reconsider present favorable oil policy toward USSR. (To Department, repeated Bucharest 94, London 372). Harriman has been informed.

KENNAN

Meeting of the Joint Chiefs of Staff, 10 a.m.

JCS 198th Meeting

Present
Fleet Admiral Leahy Brigadier General Lincoln
General of the Army Marshall Brigadier General Esposito
Fleet Admiral King Captain McDill
General of the Army Arnold Captain Stroop
General Somervell Captain Oster
Lieutenant General Hull. Colonel Peck
Vice Admiral Cooke Colonel Dean
Rear Admiral Flanigan Colonel Donnelly
Major General Gross Colonel Stone
Major General Deane Colonel Riggs
Major General Norstad Colonel Cary
Brigadier General Cabell Lieutenant Colonel Woodward
Brigadier General Jamison
Secretariat
Brigadier General McFarland Captain Moore

JCS Minutes

Potsdam, July 19, 1945, 10 a.m.
[Extract]
Top secret

. . . . . . . . . . . . . .

Information for the Russians Concerning the Japanese War (CCS 884, 884/1 and 884/2)

GENERAL HULL said that it was the desire of the British that information be given to the Russians on a combined basis. This had not been the policy of the Joint Chiefs of Staff. The Combined Intelligence Committee had prepared an intelligence report on the Japanese situation which had been presented to the Combined Chiefs of Staff and the Joint Intelligence Committee had prepared a report which might be given to the Russians. He said that he did not believe that the British would agree to giving the Russians the Combined Intelligence Committee report, but he thought the Joint Chiefs of Staff would be willing to give the report of the Joint Intelligence Committee to the Russians.

GENERAL MARSHALL said that he thought the British were more concerned in regard to intelligence that might be given the Russians on special projects than in regard to operational intelligence.

GENERAL DEANE said that he believed that the British had two motives in presenting their views: first, to share in the operational running of the war, and second, to exchange information with the Russians on a quid pro quo basis.

He said that he believed that we should give the Russians operational intelligence without reference to the British. He agreed to a certain extent in the exchange of intelligence with the Russians on a quid pro quo basis, but it had been the policy of the Military Mission to Moscow to go further than that and to provide the Russians with information they needed to win the war. He felt that Russian security was entirely adequate and that they would not disclose information furnished them. It was his view that the only relations that the British would have with the Russians in connection with the war in the Far East was in the exchange of intelligence, whereas our interest was operational and much greater than that of the British.

ADMIRAL KING said that he had noted that the British paper on the subject (CCS 884/2) was written before yesterday’s meeting of the Combined Chiefs of Staff and he felt that their motive at that time was to take an equal part with the Joint Chiefs of Staff in the operational strategy of the war against Japan. He thought there should be a delimitation between operational intelligence and general intelligence; that we should give the Russians directly such operational intelligence as we considered necessary and that general intelligence should be furnished the Russians on a common basis which would mean a continuation of the present arrangement.

The Joint Chiefs of Staff: Agreed to discuss this subject with the British Chiefs of Staff.

. . . . . . . . . . . . . .

Second meeting of the Foreign Ministers, 11 a.m.

Present
United States United Kingdom Soviet Union
Secretary Byrnes Foreign Secretary Eden Foreign Commissar Molotov
Mr. Dunn Sir Alexander Cadogan Mr. Vyshinsky
Mr. Harriman Sir William Strang Mr. Gromyko
Mr. Cohen Sir Archibald Clark Kerr Mr. Gusev
Mr. Page Mr. Novikov
Mr. Thompson

Thompson Minutes

Potsdam, July 19, 1945, 11 a.m.
Top secret

MR. EDEN in the Chair stated his understanding that the Agenda for today included:

  1. German political questions, on which there was a revised draft;
  2. Poland; and
  3. German Economic Problems.

MR. EDEN stated that before consideration of the agenda, he understood that Mr. Byrnes had a point to make on the paper concerning the Council of Foreign Ministers.

MR. MOLOTOV at this point asked whether he could add to the agenda.

Reconsideration of Paper on Council of Foreign Ministers

MR. BYRNES stated that he wished to move reconsideration of the language of the paper on the Council of Foreign Ministers. He referred to the members charged with duties under section 3 and specifically to the language restricting membership to governments signatory to the terms of surrender. He pointed out that some governments were at war but were not signatory to the armistice terms and asked that the drafting committee on this subject be instructed to reconcile points of view on this phase of the matter.

MR. MOLOTOV inquired whether paragraph 3 was referred to and stated that it was not quite clear to him what question was involved.

MR. BYRNES pointed out that France, for example, was at war with Italy but was not signatory to the armistice terms and asked whether she would be permitted to participate in discussions regarding Italy.

MR. MOLOTOV replied that he believed that she would.

MR. BYRNES stated that under the present language of this paper he did not believe that a state in such a situation could participate.

MR. MOLOTOV asked whether the change would provide only for Italy.

MR. BYRNES replied that if Russia, for example, were at war with a country but was not a signatory to the armistice terms, Russia should not be excluded.

MR. MOLOTOV then asked specifically whether France should take part in the formulation of the peace treaty with Rumania.

MR. BYRNES stated his belief that if France were not at war with any country she would be present during any discussions but would not necessarily participate in the decisions.

MR. MOLOTOV then moved that Mr. Byrnes’ motion be accepted.

MR. EDEN stated general agreement and asked Mr. Molotov what subjects he wished to add to the agenda.

German Fleet and Merchant Marine

MR. MOLOTOV stated that he had a draft on the German fleet and merchant marine which he wished his colleagues to study. He stated that the draft would be ready in 10-15 minutes.

Consideration of the Agenda

MR. EDEN then brought the meeting back to the agenda and stated that the drafting committee on German political questions had a revised draft ready for presentation. He asked Mr. [Sir William] Strang to present it.

MR. STRANG explained in some detail various changes made by the drafting committee in the text of this paper. (See Attachment 1)

In paragraph 1 [2] (i) the word “demilitarization” was added after the word “disarmament” in order to bring this section in line with the declaration issued in Berlin on June 5. Subparagraph (a) immediately after subparagraph (i) was altered to accord with EAC recommendations. Subparagraph (b) was altered by the deletion of the word “seize” and the substitution of the phrase “held at the disposal of the Allies”, since most seizures had already been made.

MR. MOLOTOV then thanked the drafting committee for its work, and was followed by MR. EDEN and MR. BYRNES.

MR. BYRNES moved that the text be approved and this was agreed to.

Poland

MR. EDEN stated that the next item on the agenda was Poland. He added that the Prime Minister during the meeting on July 18 had promised to produce the text of a possible proposal.

MR. EDEN stated gratitude to the Generalissimo for his understanding of British difficulties even though their purposes were the same.

The British Delegation had produced the text of a draft proposal and had attempted a Russian translation, which was only in manuscript form. This proposal was delivered to the delegates and there was an interim period for consideration of it during which MR. MOLOTOV distributed copies of the Russian proposal.

After a brief period MR. EDEN again called the meeting to order.

MR. MOLOTOV stated that the Russian Delegation had no objection to the first paragraph of the proposal. There was, however, some question about paragraph 2. The title [paragraph?] began “The British and U.S. Governments express their willingness.” This was not considered urgent enough and some expression of the need for immediacy was needed.

MR. EDEN stated that he wished to say that a telegram had come giving information on this subject. The British have done more than the Prime Minister was able to indicate during the July 18 session of the Heads of Governments. The British Government had taken under control the whole machinery of the former Polish Government, which was being liquidated rapidly. A Treasury committee has assumed full control of all Polish finances. All Polish ministries have been closed and diplomatic privileges have been withdrawn. All properties except the Polish Embassy have been taken by the British Government and all work not connected with the liquidation of the former Polish Government has been stopped. All recruiting for Polish armed forces has been stopped and the War Office is now supervising the activities of the Polish General Staff. Polish ships are under charter to the United Kingdom, which desires to discuss this question with the Warsaw government. Much has been done and is being done.

MR. MOLOTOV then pointed out that since there is no representative of Poland here, it is impossible for the Soviet Delegation to speak for them. The principal question is to prevent the London Government from transferring assets and properties to private persons.

MR. EDEN stated that he was able to give absolute assurances on this point.

MR. MOLOTOV then pointed out that the law governing these matters was recent and that many transfers might have taken place in the past.

MR. EDEN replied that British action had been taken from the moment that recognition was accorded to the Warsaw government. The British Government is now awaiting the arrival of a representative of the Polish Provisional Government in London in order that immediate discussions can begin.

MR. MOLOTOV again raised the question of immediacy.

MR. EDEN replied that discussions could not be begun with persons who are absent.

MR. MOLOTOV then stated that he only wanted a statement stressing immediacy.

MR. EDEN expressed the belief that such statement could be made and MR. BYRNES agreed.

MR. BYRNES then mentioned the fact that an attempt had been made to transfer the Polish Embassy property in Washington but that this had been stopped and the Embassy had been vacated and was now at the disposal of the Warsaw Government.

MR. MOLOTOV then raised the matter of stocks, assets, and property and asked whether the sentence from the Russian proposal forbidding such transfers could be used.

MR. EDEN replied that he would consider a phrase noting that steps had been taken.

MR. MOLOTOV then questioned practice in other countries, specifically mentioning Norway.

MR. EDEN then agreed that a drafting committee might be appointed in order to try to find words which would meet Mr. Molotov’s wishes and asked whether there were any other points in the draft to which the Soviet Delegation took exception.

MR. MOLOTOV inquired concerning the debts of the London Polish Government and asked for an indication of the totals.

MR. BYRNES replied that he was unable to give a definite answer on this point and pointed out that the statement in paragraph 2 concerning discussions which would take place on these matters apparently met Mr. Molotov’s point.

MR. EDEN noted that the draft paper only suggests that discussions embrace this question and does not ask the Polish Provisional Government to accept a liability in advance.

MR. BYRNES suggested that the matter be referred to a committee to reconcile differences in language, and MR. MOLOTOV agreed.

MR. EDEN felt that the meeting should hear more about remaining points first.

MR. MOLOTOV then stated that the last words in paragraph 3 regarding the assurance of a livelihood carried an implication which no country could guarantee.

MR. EDEN suggested the words “personal freedom and security.”

MR. MOLOTOV suggested the inclusion of the words “without discrimination.”

MR. MOLOTOV then asked whether the Crimea text could not be used in the last paragraph and suggested that this point and other differences be left to the drafting committee.

MR. BYRNES and MR. EDEN agreed.

MR. BYRNES appointed Mr. Harriman and Mr. Bohlen to serve on the drafting committee.

MR. EDEN appointed Ambassador Clark Kerr and Mr. Allen.

MR. MOLOTOV appointed Mr. Vyshinski and Mr. Golunski.

MR. EDEN asked whether it was possible that a draft would be ready for the meeting this afternoon.

MR. MOLOTOV stated that he would prefer to have the question discussed on July 20 since the matter should not be hurried.

MR. BYRNES then suggested that an effort be made to get a draft today, but if this was not possible it be held over until tomorrow.

MR. MOLOTOV agreed.

German Economic Problems

MR. EDEN stated that the next item on the agenda was the consideration of German economic problems but that he understood that the drafting committee had no report ready since it had not been possible to meet yesterday. Therefore, neither this meeting nor the meeting of the Heads of States could consider this question today.

MR. EDEN then suggested consideration of an agenda for the meeting of the Heads of States.

MR. MOLOTOV asked that other matters be discussed first. These included the disposition of the German fleet and merchant marine, and Spain. A Russian proposal on Spain was distributed at this point. (See attachment 2).

MR. EDEN inquired concerning the disposition of these two matters.

MR. BYRNES stated that he saw no reason why these two subjects should not be put on the agenda for discussion today by the Heads of States.

MR. EDEN stated that it was impossible for him to discuss the German fleet without consultation with naval authorities, who were not now present.

MR. BYRNES reiterated his belief that both questions should be discussed by the Heads of States. He also suggested that the President’s paper on the implementation of the Yalta agreement come up for consideration this afternoon.

MR. EDEN remarked that the President’s paper dealt only with the Balkans and asked for permission to add two items on the British agenda. These are: one paper on Yugoslavia and one on Rumania.

MR. BYRNES agreed that these questions should be added and if not reached on the agenda today should go over until tomorrow.

MR. MOLOTOV stated that he had no objection.

Agenda for Meeting of Heads of States

MR. EDEN then recapitulated the items agreed upon for discussion by the Heads of States on the afternoon of July 19. These were:

  1. Agreed text on political control of Germany;
  2. Poland;
  3. The German fleet and merchant marine;
  4. Spain;
  5. Implementation of the Yalta Declaration;
  6. Yugoslavia;
  7. Rumania.

MR. MOLOTOV asked whether there were any drafts available on items 6 and 7.

MR. EDEN promised them by this afternoon.

MR. EDEN, after asking whether there was anything else to come before the meeting, then declared the meeting adjourned.

740.00119 (Potsdam)/7-1945

The First Secretary of Embassy in Portugal to the Assistant Secretary of State

Berlin Conference, July 19, 1945

Memorandum

Subject: WORK SHEET ON QUESTION OF IMPLEMENTATION OF THE YALTA DECLARATION ON LIBERATED EUROPE

  1. It is important to keep in mind the distinction between the Yalta formula and the armistice control in the satellite states. In our view Yalta should not be invoked to change the armistice administration, which was set up by specific negotiation and which, much as it needs improvement, should be negotiated ad hoc. This distinction is important at the moment, because the Soviet Government may well try to sidestep the issue of implementing Yalta by referring to their new move to give better treatment to the United States and United Kingdom delegations in the armistice commissions.

    The British proposal for discussing the Rumanian petroleum question at this afternoon’s session suggests that they may expect the Yalta formula to help out in ameliorating United Kingdom and United States positions under the armistice regimes. We consider that the petroleum problem may indeed require negotiation above the level of the ACC, but that it is not germane to the Yalta Declaration.

  2. The British paper on Yalta (their No. 8) favors concluding peace treaties as the first step toward the creation of conditions for the emergence of democratic government. We think that only after some change in the composition of the government in Rumania and Bulgaria should we proceed to normalizing relations. We need not make our demands so rigid as to shut off the means of dealing with an imperfect regime, if we can work out a substantial broadening of the base as a beginning.

  3. The “consultation” proposed in point 2 of our paper might be by our Ambassadors at Moscow, or our political representatives at Bucharest and Sofia, but preferably not by the Control Commissions, for the reasons mentioned above.

  4. The British are proposing adding Yugoslavia to this topic. The Soviet Government would probably object to making a joint “statement” at the conclusion of the conference. Much of the desired effect could be achieved by a joint “message” (not made public) on the basis of which we could exert pressure at Belgrade at appropriate times.

C. W. CANNON

740.00119 Potsdam/7-1945

Proposal by the Soviet Delegation

July 19, 1945
[Translation]

The German Navy and Merchant Marine

  1. One third of the total German navy including the ships which at the beginning of unconditional surrender of Germany were under construction or in repair shall be handed over to the Soviet Union.

  2. One third of reserve armaments, ammunition and supplies of the German navy in accordance with the classes of ships shall be handed over to the Soviet Union.

  3. One third of the German merchant marine shall be handed over to the Soviet Union.

  4. The transfer and receipt of the ships of the German navy and merchant marine shall begin August 1 and shall be completed by November 1, 1945.

  5. There shall be established an expert commission the strength of which shall be determined by the Naval Commands of the three Allied countries to transfer and take the ships of the German navy and merchant marine located in the ports and bases of the Allied Commands as well as in the ports and bases in Germany and other countries.


Proposal by the Soviet Delegation

July 19, 1945
[Translation]

Spain

The Soviet Government present for consideration by the Conference the following suggestion.

In view of the fact:

  1. that the regime of Franco originated not as a result of the development of the internal forces in Spain but as a result of the intervention by the principal axis-countries – Hitler Germany and fascist Italy which imposed upon the Spanish people the fascist regime of Franco;

  2. that the regime of Franco constitutes a grave danger to the freedom-loving nations in Europe and South America;

  3. that in the face of brutal terror instituted by Franco the Spanish people have repeatedly expressed themselves against the regime of Franco and in favour of the restoration of democratic government in Spain,

The Conference deems it necessary to recommend to the United Nations:

  1. to break off all relations with the Government of Franco;

  2. to render support to the democratic forces in Spain and to enable the Spanish people to establish such a regime as will respond to their will.


740.00119 Potsdam/7-2045

Proposal by the Soviet Delegation

[Translation]
[Undated]

Amendments of the Soviet Delegation to the British Draft Declaration on the Polish Question

It Is Suggested:

  1. that the text of paragraph 2 of the above-mentioned document be replaced by a new text (see enclosure 1).

  2. that the text of the last sentence of paragraph 3 be replaced by a new text (see enclosure 2).

  3. that the last two sentences of paragraph 4 be omitted.

[Enclosure 1 — Translation]

Declaration on the Polish Question

In place of the text of paragraph 2 of the British draft the following text is proposed:

The British and United States Governments have already taken measures to prevent the alienation to third parties of property of all kinds belonging to the Polish State located on their territory and under their control, whatever the form of this property may be, wherever and at whosoever’s disposal it may be, and without regard to whether it was transferred to someone earlier and exactly when. They are ready to take immediate measures for the transfer of this property, as well as vessels of the Polish Merchant Marine, to the disposal of the Polish Provisional Government as soon as possible. To this end they are prepared to discuss with properly accredited representatives of the Polish Provisional Government the manner and time of such transfer.

[Enclosure 2 — Translation]

Declaration on the Polish Question

In place of the text of the last sentence of paragraph 3 the following text is proposed:

They expect that those Poles who return home shall be accorded personal and property rights on the same basis as all Polish citizens and in accordance with the existing laws of Poland.

At the same time the British Government shall take measures that in the territory of Great Britain, and in territories under British control, Poles wishing to return to Poland shall not be arrested.


740.00119 Potsdam/7-2045

Proposal by the Soviet Delegation

[Translation]
[Undated]

The British and United States Governments have already taken measures to prevent the alienation to third parties of property of all kinds belonging to the Polish State located on their territory and under their control, whatever the form of this property may be. They are ready to take immediate measures for the transfer of this property, as well as vessels of the Polish Merchant Marine, to the disposal of the Polish Provisional Government as soon as possible. To this end they are prepared to discuss with properly accredited representatives of the Polish Provisional Government the manner and time of such transfer.

All facilities will be given to the Polish Government of National Unity for the return to it, in accordance with the laws of the USA and Great Britain, of any property which may have been wrongfully alienated.

Report by the Subcommittee on German Political Questions

[Babelsberg, July 19, 1945]

Proposed Agreement on the Political and Economic Principles To Govern the Treatment of Germany in the Initial Control Period

Political Principles

  1. In accordance with the Agreement on Control Machinery in Germany, supreme authority in Germany is exercised, on instructions from their 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. 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 militaristic 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.

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

  4. 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.

  5. 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.

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

  7. 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.

  8. 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.

  9. 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.

023.1/9-1454

Proposal by the British Delegation

[Babelsberg, July 19, 1945]

[Draft of a Statement on Poland]

  1. 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 recognised 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.

  2. The British and United States Governments express their willingness to discuss with properly accredited representatives of the Polish Provisional Government the orderly transfer to it of Polish State property, including the Polish Embassies in London and Washington, in regard to which measures of conservation have been taken by the two Governments. They assume that such discussions would embrace also the questions of the acknowledgement by the Polish Provisional Government of liability for the credits advanced to the late Polish Government and other outstanding debts, and the relation of such advances to any assets of the Polish State available abroad.

  3. 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 Merchant Marine. It is their desire that as many of these Poles as possible should return home, and they consider that the Polish Provisional Government could itself greatly assist in this regard by giving specific undertakings that those Poles who return will do so with full assurance of their personal security, freedom and livelihood.

  4. The Three Powers note that the Polish Provisional Government is pledged 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. It is the confident hope of the Three Powers that the elections will be so organised as to enable all sections of Polish opinion to express their views freely, and thus play their full part in the restoration of the country’s political life. The Three Powers will further expect that representatives of the Allied Press shall enjoy full freedom to report to the world upon developments in Poland before and during the elections.


740.00119 Potsdam/7-1945

Proposal by the British Delegation

July 19, 1945

Yugoslavia

At the Crimea Conference on February 10th the Heads of the three Governments discussed the Yugoslav question and agreed to recommend to Marshal Tito and Dr. Šubašić that the agreement between them be put into effect and a new government formed on the basis of the agreement.

  1. The three Governments have thus endorsed the Tito-Šubašić Agreement, with its guarantees of the basic principles of democratic liberties, in particular personal freedom, freedom from fear, freedom of religion and conscience, freedom of speech, press meetings and associations, and the right of property and private initiative, and with the promise of a democratic election within three months of the Yugoslav liberation.

  2. Doubtless owing to war conditions, the principles set out in the Tito-Šubašić Agreement have not been fully carried out. In view of the declaration issued at Yalta, it is desirable that, at the close of the present meeting, the three Heads of Governments should issue a statement recalling the fact that they had given recognition to the Yugoslav Government on the basis of the Yalta Agreement and the Tito-Šubašić Agreement, which they expect to be fully carried out in the near future.


740.00119 Potsdam/7-1945

Proposal by the British Delegation

TERMINAL, 19th July, 1945
Secret
P (TERMINAL) 10

The Removal as Booty of Allied Industrial Equipment Especially in Roumania

  1. Large sums of British capital are invested in companies producing oil in Roumania. In October, 1944, the Soviet authorities in Roumania removed large quantities of equipment from these British companies and from other Allied-owned companies, on the grounds that it was war booty.

  2. The resulting damage to British interests was very considerable. Furthermore, the action taken has reduced the total output of Roumanian oil wells by one million tons a year, at a time of grave oil shortage. As a result, Roumania’s capacity to pay reparations and the revenue earning capacity of British and other Allied capital was diminished.

  3. In January, 1945, the Soviet Government agreed to discontinue removals of equipment. But the equipment already removed was not returned, nor did the Soviet Government agree to regard it as deliveries on account of reparations.

  4. Further oil equipment was removed from a British-controlled company in April.

  5. His Majesty’s Government ask that the equipment which has been removed from these British companies shall be returned as soon as possible. Furthermore, they ask that no further action damaging to these British companies shall be taken by the Soviet authorities, and that the consent of the British representative on the Allied Control Commission in Roumania shall be sought before any action in their regard is undertaken.

U.S. Delegation Memorandum

Potsdam, July 19, 1945, 11 a.m.

I. Agenda of Meeting of Heads of Governments
It was agreed that the following subjects should be recommended to the Heads of Governments for discussion this afternoon:

  1. Authority of the Control Council for Germany in Political Questions.
    The redraft of the U.S. proposal on this subject drawn up by the subcommittee named yesterday was approved by the Foreign Ministers and is ready for discussion by the Heads of Governments.

  2. Polish Question.
    A British paper on this subject was referred to a subcommittee for drafting changes. If the subcommittee is able to report by four o’clock, this question will be ready for discussion by the Heads of Governments this afternoon; otherwise, it will be held over until tomorrow.

  3. Disposition of German Fleet and Merchant Ships.
    A Russian paper on this subject has been presented for discussion.

  4. Spain.
    A Russian paper proposing a policy to be adopted by the three Governments toward the Franco regime has been presented for discussion.

  5. Implementation of the Yalta Declaration on Liberated Europe and Satellite States.
    The paper on this subject presented by the President at the opening meeting of the Conference is recommended for discussion.

  6. Yugoslavia.
    The British will raise the question of the implementation of the Yalta declaration on Yugoslavia and hope to have a paper ready on this subject.

  7. British and U.S. Oil Interests in Rumania.
    The British will raise this question and hope to have a paper ready for presentation.

II. Council of Foreign Ministers
The Foreign Ministers agreed that the document establishing a Council of Foreign Ministers, which was approved by the Heads of Governments yesterday, should be reconsidered and paragraph 3 thereof should be revised in such a way as to permit any member of the Council at war with a given state to participate in the peace settlement concerning that state, even if it was not a signatory of the armistice terms concluded with that state. It was understood that if a member of the Council was not at war with a given state, it might participate in the discussions of the peace settlement concerning that state but would not participate in the decisions connected with that peace settlement.

740.00119 Potsdam/7-1945

Rapporteur’s Report

Potsdam, July 19, 1945, 11 a.m.

Plenary Meeting, 19th July 1945

  1. The United States Secretary of State informed the meeting that the United States Government desired to propose an amendment to the redraft, adopted by the Foreign Secretaries meeting on July 18th, of paragraph 3 of the United States draft proposal for the establishment of a Council of Foreign Ministers. The meeting agreed to refer this point to a drafting committee.

  2. Germany. Political questions.
    The Foreign Secretaries have given further consideration to the political section of the proposed agreement on the Political and Economic Principles to govern the treatment of Germany in the initial control period circulated by the United States Delegation. Preliminary consideration was given to this draft by the Heads of Governments at their meeting yesterday and the Foreign Secretaries were asked to submit a report on this draft at the present meeting.

    The Foreign Secretaries now submit a revised draft (Flag A) of the political section of the proposed agreement, which is already in the hands of Delegations.

    In addition to clarifying the draftmanship of the text, the Foreign Secretaries have supplemented it in a few places with new material. They now recommend it for acceptance by the Heads of Governments.

    When the economic section has been discussed and agreed upon, it will be for consideration whether the whole agreement should be made public.

  3. Poland.
    The United Kingdom Delegation put forward a redraft of the draft “Statement of the Heads of the Three Governments on the Polish Question” put forward by Marshal Stalin at the Plenary Meeting on July 18th.

    The meeting agreed to refer this redraft to a drafting committee.

Agenda for the Plenary Meeting
The meeting agreed to submit the following points for discussion at the Plenary Meeting this afternoon:

(a) Germany: political questions.

(b) Poland.
This item to be on the agenda if the report of the drafting committee is ready in time.

(c) The German Navy and Merchant Marine.
A memorandum by the Russian Delegation has been circulated.

(d) Spain.
A memorandum by the Russian Delegation has been circulated.

(e) The Yalta Declaration on Liberated Europe.
A memorandum of July 17th on this subject by the United States delegation has been circulated.

(f) Yugoslavia.
The British Delegation proposed discussion of the situation in Yugoslavia and the fulfilment of the Tito-Šubašić Agreement and undertook to submit a paper on the subject.

(g) Rumania.
The British Delegation proposed discussion of the question of the removal as booty of Allied industrial equipment, especially in Rumania, and undertook to submit a paper on the subject.

First meeting of the Economic Subcommittee, 11 a.m.

Present
United States United Kingdom Soviet Union
Mr. Clayton Mr. Turner Mr. Maisky
Mr. Murphy

Memorandum by the Political Adviser in Germany

Potsdam, July 19, 1945

Subject: SUBCOMMITTEE OF EXPERTS ON ECONOMICS

This committee agreed to proceed informally. The scope of its discussion was limited to a statement of principles and it is expected to report back items on which the members do not agree.

MR. MAISKY led off by inquiring what was meant by decentralization. MR. CLAYTON explained that this related to the breaking up of trust cartels and monopolies, while MR. TURNER stated that it meant the elimination of a tight central control of industry and commerce. The following definition of decentralization was agreed upon: “The German economy shall be decentralized for the purpose of eliminating the present excessive concentration of economic power as exemplified by cartels, syndicates, trusts, and other monopolistic arrangements.”

  • Item No. 10. MR. MAISKY said he had no quarrel with this principle.

  • Item No. 11(a). MR. MAISKY inquired what is meant by relief of liberated areas.

  • Item No. 11(b). MR. TURNER inquired whether we were talking about the Germany included in the 1937 frontiers. At this point MR. MAISKY made no comment.

    With respect to the minimum subsistence standard in Germany, a formula was suggested under which it would be essential to maintain in Germany the average standards of living which would not exceed the average living standards in the European countries (European countries excluding the U.K. and USSR).

  • Item No. 11(c). MR. TURNER pointed out that the desire to produce a balanced economy throughout Germany and reduce the need for imports. MR. MAISKY said we will consider this point.

  • Item No. 11(d). No grant of credit shall be permitted except with the approval of the Control Council.

  • Item No. 12. The principles (and proposals) – this was added language by Pauley, here agreed.

  • New Item No. 12(a). This was submitted for consideration.

  • Item No. 13. To the effect that Germany was to be treated as an economic unit. Agreed.

  • Item No. 13(1). MR. TURNER submitted a re-draft.