Potsdam Conference (TERMINAL)

[NormanStewart]

Byrnes-Molotov conversation, morning or early afternoon

	Present
United States		Soviet Union
Secretary Byrnes		Foreign Commissar Molotov

According to Byrnes, he told Molotov on July 31 that there were three outstanding issues at the Conference: reparations from Germany, Polish administration of a part of the Soviet zone of occupation in Germany, and admission of Italy and the Balkan states to the United Nations. He states further that he submitted a proposal containing the only concessions which the United States was willing to make; that he asked Molotov to present “the three proposals” to Stalin so that they might be considered at the meeting of the Heads of Government on July 31; that the United States “would agree to all three or none”; and that he and Truman would leave for the United States the next day.

[NormanStewart]

Eleventh plenary meeting, 4 p.m.

	Present
United States	United Kingdom	Soviet Union
President Truman	Prime Minister Attlee	Generalissimo Stalin
Secretary Byrnes	Foreign Secretary Bevin	Foreign Commissar Molotov
Mr. Davies	Sir Alexander Cadogan	Mr. Vyshinsky
Mr. Bohlen	Major Birse	Mr. Golunsky
Mr. Cohen		Mr. Maisky
Fleet Admiral Leahy

U.S. Delegation Memorandum

Potsdam, July 31, 1945, 4:00 p.m.

Points of Especial Interest to the United States

1. The 3-point Program of the Secretary of State:
(a) U.S. proposal in regard to German reparations (copy attached);
(b) U.S. proposal in regard to Poland’s western frontier (copy attached);
(c) U.S. proposal in regard to admission to the United Nations (copy attached).

2. Economic Principles to Govern Treatment of Germany
Decision on this question was put off until the question of German reparations was settled (copy of the draft under discussion is attached).

3. Use of Allied Property for Satellite Reparations or “War Trophies” (copy attached)
No action has yet been taken on the paper on this question circulated by the U.S. on July 25th.

4. Revised Procedure for Allied Control Commissions in Rumania, Bulgaria and Hungary
A new paper on this subject to be presented by the President (copy attached).

5. Transfer of German Populations from Czechoslovakia, Poland and, Hungary
A new paper on this subject to be presented by the President (copy attached).

6. Unrestricted Navigation of International Inland Waterways
The U.S. seeks agreement on the part of the Three Governments to the principles of unrestricted navigation of international inland waterways (a copy of the U.S. proposal on this subject, dated July 23rd, is attached).

[NormanStewart]

Department of State Minutes

Potsdam, July 31, 1945, 4:00 p.m.
Top secret

MR. BEVIN suggested that as the Rapporteur’s report had been circulated it not be read.

This was agreed to.

THE PRESIDENT proposed that they take up the U.S. proposals on Reparations, the Western Frontier of Poland, and Entry into the United Nations Organization.

MR. MOLOTOV said he wished to circulate the Soviet proposals on this question.

MR. BYRNES said the paper [papers?] presented on behalf of the U.S. Delegation set forth as part of one proposition proposals with respect to three controversial questions – reparations, the western frontier of Poland, and entry into the United Nations Organization. The U.S. Delegation had explained in the meeting of the Foreign Ministers that concessions made with respect to Poland and the United Nations Organization question were conditional upon acceptance of all three proposals.

MR. STALIN pointed out that these questions were not connected and dealt with different subjects.

MR. BYRNES agreed that they were different subjects. He pointed out, however, that they had been before the Conference for weeks without agreement having been reached. They were presented in the hope of reaching agreement. The U.S. Delegation was not willing to accept one without the others.

As to reparations the U.S. proposal was that 25 percent of the industrial capital equipment in the Ruhr which was determined to be unnecessary for a peacetime economy be delivered to the Soviet Union in exchange for certain commodities. It was proposed further that an additional 15 percent of such capital goods unnecessary for peacetime economy be delivered to the Soviet Union without any payment or exchange. In a discussion in the Foreign Ministers meeting the British Delegation had said it could not agree if the transfer was to be made only from the Ruhr but could agree if it were to be from the three western zones. They agreed that the only difference would be one of percentages and if made to apply to three western zones the percentages would be one-half those stated with respect to the Ruhr. This would not affect the total to be received by the Soviet Union. The percentages would be 12½ and 7½ respectively.

MR. MOLOTOV said there had been no agreement on this.

MR. BYRNES agreed that it had not been agreed by the Soviet Foreign Minister but it had been suggested by the British Foreign Minister and he had agreed, and he thought it was better from the point of view of the administration of the French, British and American zones. He also considered that it would be advantageous to their Soviet friends.

MR. STALIN agreed that the three zones would be more advantageous.

MR. BYRNES continued that under this plan the Soviets could get a factory from the American zone and would not be confined to plants from the Ruhr. It had been suggested at the Foreign Ministers meeting that it should be decided by whom the determination of the equipment not needed for a peacetime economy should be made. He had added to his proposal that it should be made by the Control Commission under policies fixed by the Reparations Commission, subject to the final approval of the Commander in the zone from which the equipment was removed. He had suggested the Control Council because the four governments were represented on it and it was an administrative body charged with executive functions, whereas the Reparations Commission was a policy making body. He had also added to his proposal that removals of industrial capital equipment should be completed within two years and the products to be delivered by the USSR in exchange should be delivered within five years. He also thought it should be stated that reparations claims of other countries should be met from the western zones of occupation.

The Polish proposal was that advocated by the Foreign Minister of the Soviet Union at the time the Polish Delegation had presented its case and it gave to the Polish Government the internal administration of all the territory it claimed.

The paper on Admission to the United Nations Organization had been withdrawn by the U.S. Delegation last Saturday. As reintroduced it contained language which he hoped would meet with the approval of the Soviet Delegation. Their British friends could not accept the language in the first draft because they could not recognize the countries with which they were at war. Marshal Stalin had asked if the British would agree to extend a complete or partial recognition. He therefore suggested language to the effect that they would consider recognition to the extent possible prior to the conclusion of peace treaties with the countries concerned. The British said they had some difficulties in this connection but that they tentatively would agree to the language.

MR. STALIN said he had no objection in principle to this wording.

MR. BYRNES pointed out that the other change in wording related to freedom of the press.

MR. STALIN suggested in the sentence on this subject that they replace the words “express the desire” by the words “have no doubt that.”

The British and American Delegations agreed to this change.

MR. BYRNES concluded by stating that the three proposals were submitted together and he hoped they could be adopted.

Reparations From Germany

(The Translator read the Soviet proposal on Reparations from Germany).

MR. STALIN said that Mr. Byrnes suggested that the three questions be linked. He understood this and it was for Mr. Byrnes to use any tactics be wanted but he could not undertake to reply with such tactics and the Soviet Delegation would vote separately on these questions. The most debatable question was that of Reparations from Germany. The Soviet proposals had just been read. They had accepted the point of view of the Americans. They had agreed not to mention a definite figure of reparations but had accepted a statement of percentages.

MR. STALIN said he had received some new material on British and American removals from the western zones. They included 11,000 railroad cars. What the fate of this property would be in the future he did not know. Would it be returned to the Russian zone, or would they be compensated?

THE PRESIDENT said that the American view was that there should be a central transport administration.

MR. STALIN continued that the Soviets did not remove railroad equipment from the American zone although the Americans had charged the Russians with taking everything. He mentioned this to show that not only the Russians had sinned but also the British and Americans. With reference to the substance of the question he thought that they had a common basis now. The principle in the American plan that each country exacts reparations from its own zone was accepted; also, it was agreed that reparations from the west should come not only from the Ruhr but from the three western zones. It was agreed that part of the equipment to be removed from the Ruhr could be compensated by goods. It was agreed that the Control Commission would determine the equipment that should be removed. All these had been accepted. What was the difference that remained? The Russians were anxious that a time limit be fixed for determining the equipment to be removed.

THE PRESIDENT said he agreed to fixing a time limit.

MR. STALIN said they suggested three months and inquired if that was enough time.

THE PRESIDENT said he would agree.

MR. BEVIN thought three months was not enough.

MR. STALIN said make it three, four or five, but there should be a time limit.

MR. BEVIN said he would accept six.

MR. STALIN agreed to accept six.

THE PRESIDENT also agreed.

MR. STALIN said that the only remaining question was the figure of the percentage. He hoped the British and Americans would meet the Soviet wishes. Mr. Bevin should have in mind that the Russians have lost much equipment. They should receive a small part of it back.

MR. BEVIN said that the British had had in mind equipment after determination of the amount needed for the maintenance of the economy.

MR. STALIN said this was in his proposal. If he thought it over, Mr. Bevin would accept it.

MR. BEVIN replied that he could not. He had used the words “equipment not needed for peacetime economy.” This was not in the Soviet document.

MR. STALIN reread the Soviet proposal on this point.

MR. BEVIN said he did not give the basis on which the determination would be made.

MR. STALIN insisted it was the same thing.

MR. BEVIN asked if he would then accept the British wording and said he did not want a misunderstanding.

MR. STALIN said the Russians had in view 15 percent of the equipment to be removed which was not necessary for peacetime economy but was not clear about it.

MR. BEVIN again cited the British language which he said reflected the views agreed upon by the British and American Delegations.

MR. STALIN said that he would accept this language.

MR. BYRNES observed that the only remaining differences were the percentages in the Soviet proposals in regard to the shares of German companies and gold holdings. He pointed out that it might be proved that the gold belonged to others and must be returned.

MR. STALIN said the Russians meant German gold.

MR. BYRNES said his information was that it was all looted gold and the question was would they return it to the countries from which it was removed. He inquired if the Soviet Delegation was insisting on the increase in percentages and on this 30 percent of German foreign assets and the shares of German companies.

MR. STALIN said yes, he would like to receive this if possible.

MR. BEVIN asked what he had in mind.

MR. STALIN said he had in mind the foreign assets of Germany frozen in other countries, including America.

MR. BYRNES observed that in America this was a matter which required action by Congress; that Congress had already fixed the manner of establishing claims. There were no doubt many people, including refugees, who had valid claims. The U.S. Delegation certainly could not agree to anything disposing of these assets in the U.S. He added that in Latin America many countries have claims against Germany for shipping and other losses and no doubt they would use these assets to satisfy their claims.

MR. BEVIN said that yesterday they had agreed that France be added to the Reparations Commission in order to work out these questions and he would like France to be added to the Reparations Commission.

MR. STALIN replied, I have no objection.

MR. BEVIN said with regard to percentages, we thought we had met you yesterday in the meeting of Foreign Ministers. I agreed to 12½ percent and thought that we had treated your claim liberally.

MR. STALIN said that it was the opposite of liberal.

MR. BEVIN said then it was generous. They had different points of view. He took it that this question of reparations would not interfere with the ordinary exchange of goods within Germany. He referred to the document on economic principles for Germany.

MR. STALIN replied that could be discussed in connection with the consideration of those principles.

MR. BEVIN said that the Soviet proposal in regard to gold was difficult for the British. He asked if Stalin would agree that their proposal in regard to foreign assets be limited to neutral territory.

MR. STALIN said he would agree.

MR. BYRNES said the American position was that we did not agree to the Soviet proposals that had been added.

THE PRESIDENT said that he had just been informed by Stalin that there had been unauthorized removals by the American Army. He wished to state that they were not made under instructions of the American Government and that they would be accounted for. He said he had addressed a communication to General Eisenhower and was having an investigation made. He added that no people had been removed by the American Army.

MR. STALIN suggested that they discuss paragraph 3 of the proposal; everything in the Soviet document was true.

THE PRESIDENT said if the Russians would leave off their paragraph 4 he would agree to the percentage they proposed.

MR. BEVIN pointed out that they had to satisfy France. He said that if the Russians would drop all of the second page of their proposal he would agree to 12½ percent-10 percent.

MR. STALIN pointed out that paragraph 5 should remain.

MR. BEVIN said that he meant that paragraph 4 should be dropped.

MR. STALIN observed that the U.S. was willing to meet the Soviet wishes – why was Britain unwilling?

MR. BEVIN said that because they were responsible for the zone from which the Soviet claims were to be satisfied. They were also responsible for satisfying the claims of France and other countries.

MR. STALIN pointed out that France had signed an armistice with Hitler and had suffered no real occupation. France should be satisfied with a small amount. He said that 150 divisions had been sent to Russia from France or had been supplied from France.

MR. BEVIN repeated that they had to satisfy France, Belgium, Czechoslovakia and Holland. The British wanted nothing except some raw materials.

MR. BYRNES said that the American proposal used the language “other countries entitled to reparations.” He urged that this language be accepted.

MR. STALIN said he agreed to this.

MR. BEVIN said that the percentage the Soviets asked plus reparations from their own zone gave them more than 50 percent.

MR. STALIN insisted that it would be less than 50 percent and pointed out in addition that they were supplying goods to the equivalent of 15 percent. The Soviet proposal was a minimum. The Soviets received only 10 percent – the others got 90 percent. He agreed to 15 percent and 10 percent and thought it fair. The Americans agreed. He hoped Bevin would support them.

MR. BEVIN said “All right then.”

MR. STALIN expressed his thanks.

MR. BEVIN said he understood that the American paper as amended was accepted.

MR. STALIN said he thought they had settled all their differences and should appoint a committee to draw up a text.

The committee consists of Mr. Clayton and Mr. Pauley for the U.S.; Sir D. Waley and Mr. Turner for the British; and Mr. Vyshinski and Mr. Gromyko for the Soviets.

Polish Western Frontier

MR. BEVIN said his instructions were to stand for the eastern Neisse and he would like to ascertain what was involved in this new proposal. Would the zone be handed over to Poles entirely and would Soviet troops be completely withdrawn? He said he had met the Poles and had discussed this question in the light of the declaration referred to in the U.S. document. He had asked them what their intention was in giving effect to this decision. He pointed out that any decision had to be defended in Parliament. He had asked the Poles [what their intention?] was in regard to the actual holding of free and secret elections on the basis of the 1921 Constitution. They had assured him that elections would be held as soon as possible and they hoped not later than early 1946. He pointed out that this was subject to conditions being made possible for the holding of elections. The Poles also agreed to freedom of the press and to foreign correspondents sending reports abroad without interference. They had also assured him in regard to freedom of religion. An important matter was the return of the troops under Allied command as well as return of civilians. He had asked the Poles to make a declaration to insure that these people would be treated equally with those in the country. A point that concerned more particularly the Soviet Government and the British and which the Polish Government could not now settle was the question of a British military air service between Berlin and Warsaw and London to enable His Majesty’s Government to maintain regular communications with its Embassy at Warsaw. On that point he should like to get agreement immediately. In the U.S. document it was stated that this territory would be under the Polish state and not part of the Soviet zone of occupation and that it would pass out of Soviet responsibility. He took it that notwithstanding the placing of this zone under Polish administration it would technically remain under Allied military control. Otherwise, they would be transferring territory before the peace conference. If it were a question of transfer, he would have to get approval of the French.

MR. STALIN replied that this concerned the Russian zone and that the French had nothing to do with it.

MR. BEVIN inquired if the British could give away pieces of their zone without approval from the other governments.

MR. STALIN replied that in the case of Poland this could be done for they were dealing with a state which had no western border. This was the only such situation in the world.

MR. BEVIN pointed out that the authority of the Control Commission was to extend over the whole [of] 1937 Germany.

MR. BYRNES said they all understood that the cession of territory was left to the peace conference. They had found a situation where Poland was administering with Soviet consent a good part of this territory. By this action the three powers agreed to the administration in the interim by Poland in order that there would be no further dispute between them in regard to the administration of the area by the Polish Provisional Government, He added that it was not necessary that the Poles have a representative on the Control Commission.

MR. BEVIN said he did not press the matter. He asked what would happen in this zone now. Would the Poles take over and the Soviet troops withdraw?

MR. STALIN said the Soviet troops would withdraw if this territory did not constitute a line of communications with their army in Germany. There were two roads there, one to Berlin to the north and the other to the south. These two roads were the ways by which the troops of Marshal Zhukov were supplied in the same way that Holland and Belgium were used by the British.

MR. BEVIN inquired if these troops would be limited to the lines of communication.

MR. STALIN replied that they would. The Soviets had already removed four-fifths of their troops from Poland and they were contemplating a further reduction. As to the transfer of the territory to the Poles he pointed out that the territory was now actually already administered by Poles. There was no Russian administration.

MR. BEVIN asked if Stalin could help them with this question of air communication. The Poles had not been able to manage this. They wanted one or two planes a week and this involved the Soviet military command because they had to fly over the Russian zone.

MR. STALIN said that British planes now flew up to Berlin.

MR. BEVIN asked if he could agree to their going to Warsaw.

MR. STALIN replied that this would have to be discussed with the Poles and that they could then agree if the Soviet planes could go to London and France. He said that as to communication to Moscow along this line, Russian pilots would fly the part of the route where they were and as to Russian needs for communication with France and London, French and British pilots would fly. Then they would have a line from Moscow to London. That was the way the Russians looked at the matter.

MR. BEVIN said he was willing to discuss this but it was too big to decide at this meeting. He asked, however, that Stalin help them with the question of communications with Warsaw as a matter of convenience to the British.

MR. STALIN agreed to do all he could.

THE PRESIDENT said then they were all agreed on the Polish question.

MR. BEVIN asked if they should inform the French of the changes in the Polish arrangement.

MR. STALIN said he thought that they should. This was agreed to.

Admission Into the United Nations

MR. BYRNES said that the American paper had been circulated.

MR. MOLOTOV suggested substituting “have no doubt” in place of “express the desire” in the fourth paragraph. He also suggested the word “will” instead of “shall” in the paragraph referring to freedom of the press.

This was agreed to.

Economic Principles for Germany

THE PRESIDENT said that this had been laid aside pending the reparation settlement. He supposed there would be no difficulty in agreeing to it now.

MR. MOLOTOV said the Soviets had proposed a new paragraph 19, which he read.

MR. BYRNES said he thought that now that they had agreed to the reparations plan that provided for delivery of a certain percentage to the Soviet Union there was no need for this paragraph in regard to imports and exports.

MR. STALIN agreed.

It was agreed to drop paragraph 19.

MR. BYRNES proposed two changes, one relating to paragraph 13 which had reference to a common policy in regard to currency, banking, central taxation and customs. He also proposed a new [sub-]paragraph (g) in regard to transport and communications. Mr. Byrnes proposed that the last sentence in subparagraph (d) of paragraph 14 be altered to read, “Except where determined by the occupying power concerned to be required for necessary imports, no grant or credit to Germany or Germans by any foreign persons or governments can be permitted.”

MR. MOLOTOV asked if this would be applicable in all the zones.

MR. BYRNES replied of course.

MR. BEVIN proposed that the whole sentence be deleted.

MR. BYRNES agreed.

MR. BYRNES proposed that paragraph 18 be agreed to as a result of the reparations agreement. This was agreed to.

MR. BEVIN pointed out that he had raised the question of first charges at the Foreign Ministers meeting yesterday.

MR. STALIN pointed out that they had agreed to delete the whole paragraph.

THE PRESIDENT said that this was what he had understood.

MR. BEVIN said he did not agree.

MR. BYRNES asked why they did not handle this in their own way since they were in control in their zone.

MR. BEVIN replied because it cut across the agreement to treat Germany as a whole economy. It would divide Germany into three zones.

MR. STALIN said that for this purpose they would need a centralized German administrative machinery. This would be discussed and was the next point on the agenda.

MR. BEVIN proposed that they then pass over this question until they had decided the question of political principles.

MR. MOLOTOV pointed out that the Soviets had circulated a paper on the Ruhr.

MR. BEVIN said he could not discuss this without the French being present. It was a very big point of principle.

MR. MOLOTOV asked if there were any doubts that the Ruhr should be considered a part of Germany.

THE PRESIDENT said there were no doubts in his mind.

MR. STALIN suggested that they might postpone all points in the paper except the thought in the first paragraph.

THE PRESIDENT said the Ruhr was under the Control Council.

MR. BEVIN asked why the matter was raised.

MR. STALIN replied that because at Tehran the point had been raised that this whole region should be separated from Germany under the control of the great powers. Several months afterwards he had discussed this question with the British on the occasion of Churchill’s visit to Moscow and it had been said that perhaps it was a good thing to establish the Ruhr under an international control. This discussion was a consequence of the consideration of the general dismemberment of Germany. Since then the views of the great powers had changed and dismemberment was considered inadvisable. The Russian Delegation would like to know if it were agreed that the Ruhr should not be detached.

THE PRESIDENT said his opinion was that the Ruhr was part of Germany and would be so administered under the Control Council.

MR. STALIN said the Soviets agreed but thought it should be mentioned somewhere. He asked if the British Delegation agreed.

MR. BEVIN said he could not agree because he did not now have all of the previous discussions with him. He was aware that the idea of internationalizing the Ruhr to reduce the war potential of Germany had been discussed. He agreed that it remained under the administration of the Control Commission until it should be decided that it should be disposed of otherwise. He would want to discuss the question with his government and was willing that it should go to the Council of Foreign Ministers.

This was agreed.

Political Principles for Germany

MR. BEVIN said the Soviet Delegation had circulated a draft on proposals for administrative machinery. He proposed a short draft in place of the long one submitted by Molotov. This draft was accepted.

MR. BEVIN asked if paragraph 19 could go back to the committee to be reconsidered in the light of this decision.

MR. BYRNES said he was agreeable.

MR. MOLOTOV inquired if they had sufficient time.

MR. BEVIN suggested it could be done immediately.

MR. STALIN agreed.

Transfer of German Minorities

MR. BYRNES stated that he understood that the document on this question was acceptable, except for the last sentence. He urged that the last paragraph be agreed to because it was necessary in order to make the document effective.

MR. MOLOTOV pointed out that the document was intended to make this business orderly. It was apt to be misunderstood by the Polish, Czech and Hungarian Governments. He considered that it was hardly possible to adopt a decision here in Berlin without the Polish, Czechoslovak and Hungarian Governments. This would create difficulties. The matter could have been arranged if these Governments had been represented here.

MR. STALIN stated that he was afraid that if the Conference adopted this document it could not be carried out. The fact of the matter was that officials of the Polish, Czechoslovak and Hungarian Governments had taken the position which made the Germans want to leave. Such conditions have been created that it is impossible for the Germans to remain. Of course, the Polish, Czechoslovak and Hungarian Governments could give their formal consent to this document, but such a decision would be a shot in the void.

MR. BYRNES pointed out that the last paragraph contains a statement to the effect that the Governments named would be requested to suspend action pending consideration of these problems. If these Governments were not expelling Germans and were not forcing them to leave, the document would not, of course, have any effect. Otherwise, these Governments should be required to cooperate and to regulate these matters in an orderly manner. Of course, there was a difference in the statements of fact on this matter. It is our information that in some cases Germans have been forced to leave. Their departure for other countries increased burdens intolerably. It is only proposed to ask for the cooperation of these governments to the extent possible.

MR. STALIN replied that the Poles and Czechs would tell the Conference that their Governments had given no orders. The Germans have fled. However, if the others insisted, Mr. Stalin would agree.

THE PRESIDENT stated that he would appreciate very much the Marshal being able to agree. Perhaps the document would not change the situation very much, but it would help.

MR. ATTLEE agreed that the Conference ought to bring to the attention of these Governments the activities of their people.

MR. STALIN stated that he had no objection.

MR. BEVIN inquired whether there was any objection to communicating the decision to the French.

THE PRESIDENT stated that there was no objection and remarked that the French were in the Control Council.

German Fleet and Merchant Marine

MR. STALIN stated that he wished to arrive at a final decision regarding the question of the German fleet. If the matter was not ready for discussion today, it could be decided tomorrow.

THE PRESIDENT replied that the Admiral states that he is not ready.

MR. STALIN then suggested that it go on the agenda for tomorrow.

THE PRESIDENT agreed, although he stated that he had had it in mind to get away tomorrow.

MR. STALIN then argued that agreement in principle had already been reached, that one-third of the fleet be given to Russia. However, details had not been worked out and he wished the problem to be determined.

THE PRESIDENT agreed that the committee would report tomorrow.

MR. STALIN then suggested that the Foreign Ministers might consider the matter.

MR. BYRNES noted that the committee acting on this question has hopes of agreement and will meet tonight. In order to save time, we should await their action.

MR. STALIN again stated that it had been decided that Russia would get one-third of the fleet, except submarines which would be submerged, and except for the fact that Russia had agreed that the merchant marine would be used in the war against Japan. He wanted no further delays on this matter and asked that it be disposed of tomorrow.

THE PRESIDENT and MR. ATTLEE agreed.

Revision of Allied Control Commission Procedure in Rumania, Bulgaria and Hungary

THE PRESIDENT stated that the United States had presented a paper regarding the revision of the procedure in the Allied Control Commission in Rumania, Bulgaria and Hungary.

MR. BYRNES stated that a paper concerning the implementation of the Yalta agreement on liberated Europe had been circulated and considered. Some parts had not been agreed to by the three delegations, but substantial agreement was reached on two paragraphs. He asked that these paragraphs be considered and read the American draft entitled “Revised Allied Control Commission Procedure in Rumania, Bulgaria and Hungary” dated July 31, 1945.

MR. STALIN insisted that this question was not on the agenda and stated that he would perhaps not object when he had had time to read it.

THE PRESIDENT suggested that Mr. Stalin read the document and that it be discussed tomorrow.

It was agreed.

Yugoslavia

MR. STALIN stated that the Soviet delegation had just circulated a paper on this question which was principally directed toward Greece.

MR. BEVIN pointed out his feeling that the British had put in one reasonable proposal regarding Yugoslavia and that the Soviet delegation had thereupon promptly put in two. Mr. Bevin suggested that all three be dropped.

MR. STALIN replied: “Yes, welcome.”

THE PRESIDENT indicated that he was satisfied.

[NormanStewart]

War Crimes

THE PRESIDENT then raised the matter of war crimes.

MR. MOLOTOV stated that the Soviet delegation had agreed to accept as a basis for discussion the British document on this subject. They had one small amendment to propose. After the word “criminals” in the last sentence the Soviet delegation proposed the insertion of “such as Goering, etc.”

MR. ATTLEE pointed out that it was difficult to select defendants to be included. Perhaps they would want to put more in. He thought it was best to leave the selection of names of war criminals to people working with this problem.

MR. STALIN replied that the Soviet amendment did not imply that those named would necessarily be judged. The Soviet proposal states “such as.” He contended that we cannot further avoid mention of some persons. The people want war criminals to be named. If we keep silent regarding the names of these criminals, it will cast a shadow over our work. It would be a political gain to name these persons and European public opinion would be satisfied. If they are named as an example only, there can be no difficulty. If none of the names proposed were wrongfully accused, he could see no ground for objection.

MR. BYRNES pointed out that when the matter had been discussed yesterday he had agreed that it would be unwise to attempt to determine the guilt of certain individuals and name them. Every country has its favorite Nazi war criminal and if the Conference failed to include such favorites it would be difficult to explain why they were not on the list.

Mr. Stalin replied that that was why the Soviet amendment stated “such as … and others.”

MR. ATTLEE stated that he could not see how a list of names would strengthen the document. He stated that he understood there is some doubt about whether Hitler was alive and he was not on the list.

MR. STALIN replied that Hitler was not at our disposal.

MR. ATTLEE stated that the amendment gave instances.

MR. STALIN thereupon replied that he was willing to make a concession. Hitler should be added.

MR. ATTLEE remarked that he thought the world well knew who were the major war criminals.

MR. STALIN agreed but stated that some people might think that we intended to save the major criminals if they were not mentioned.

MR. BYRNES thereupon stated that this morning he had talked to Justice Jackson, a Justice of the American Supreme Court who represented the United States on the War Crimes Commission now in London. Justice Jackson had expressed the hope that the Commission meeting this afternoon or tomorrow morning would agree on an international tribunal. If the Marshal could instruct his representatives to try to reach agreement it would be well. Justice Jackson was telephoning Mr. Byrnes tomorrow morning concerning this tribunal. An announcement on this subject would be good news to the people who favored a speedy trial for these war criminals.

MR. STALIN stated that this was another question.

MR. BYRNES pointed out that such an announcement could be included in the statement and make it very effective.

MR. STALIN insisted that if some of the most hated war criminals were not named the Conference’s decision would not have its full effect. He had consulted some Russian lawyers on this subject who agreed with him.

THE PRESIDENT remarked that since he expected to hear from the Conference in London tomorrow this could be discussed tomorrow together with the question of the German fleet.

MR. STALIN agreed.

International Waterways

THE PRESIDENT stated that he was greatly interested in the matter now under discussion. He wished a discussion regarding the freedom of waterways and if possible a declaration on this subject. He had discussed this question at some length on July 23 and it had then been referred to a committee which he understood had never met.

THE PRESIDENT stated that it was his honest opinion that some definite proposal should be worked out. European waterways had been a hot bed for breeding wars during European history. He believed that proper control would bring about very good results. He realized that it might not be possible to reach agreement at this Conference because of the necessity for detailed consideration, but he considered the matter to be of vital importance to the peace of Europe.

MR. ATTLEE stated that he was in general agreement with the President on this point.

MR. STALIN stated that this question had arisen in connection with the Black Sea Straits. He pointed out that the Black Sea Straits question has been postponed. Other parts of the question needed study in order to be decided.

MR. MOLOTOV interjected to state that it was a new question even for those of us who know this subject.

THE PRESIDENT then suggested that the matter be referred to the Council of Foreign Ministers. There would be plenty of time then to get the facts from experts.

MR. STALIN and MR. ATTLEE agreed.

Notification to Polish Government Regarding Polish Boundaries

THE PRESIDENT inquired whether it would be proper officially to notify the Polish Government of the decision reached regarding Polish boundaries.

MR. STALIN remarked that this would be a good thing.

THE PRESIDENT suggested the appointment of representatives of each country to notify the Polish Government.

MR. STALIN stated that Polish representatives should be invited to the meeting to be informed of the Conference’s decision.

THE PRESIDENT stated “As you wish.”

Communiqué

MR. BEVIN stated that the issuance of the communiqué should be arranged.

THE PRESIDENT pointed out that a committee had been appointed and he understood that it was up to date. The President asked about meeting times tomorrow.

MR. STALIN stated that it should be as the President liked.

THE PRESIDENT suggested 4:00 p.m.

MR. BYRNES interjected to state that the Foreign Ministers were meeting at 11:00 a.m.

THE PRESIDENT then asked whether the Big Three could meet at 3:00 p.m.

MR. STALIN agreed and stated that they should first meet at 3:00 p.m. and again in the evening.

All agreed and the meeting adjourned.

[NormanStewart]

Proposal by the U.S. Delegation

[Babelsberg,] July 31, 1945

Restatement of United States Proposal on German Reparations

1. Reparations claims of Russia and Poland to be satisfied from the Russian zone plus

   (a) 25% of such industrial capital equipment as is determined is not necessary for a peace economy and should be removed from the Ruhr on condition that there would be exchanged an equivalent value in food, coal, potash, zinc, timber, clay products and oil products, to be made available to us by the Soviets.

   (b) An additional 15% of such industrial capital equipment as is determined unnecessary for a peace economy should be transferred from the Ruhr to the Soviet government without payment or exchange of any kind in return.

2. Removals of capital equipment in accordance with Paragraph 1. above shall be completed by May 10, 1947. Commodities shipped in exchange under (a) above shall be completed not later than May 10, 1951.

3. For purposes of the above agreement the Ruhr is defined in accordance with the attached map.

   

4. The determination of the amount and character of the industrial capital equipment unnecessary for a peace economy and therefore available for reparation would be made by the Allied Commission on Reparations with France added working in consultation with the Control Council subject to the final approval of the zone commander in the zone from which the equipment is to be removed. Further details shall be determined by the Allied Commission on Reparations with France added.

[NormanStewart]

740.00119 Potsdam/7-3145

Proposal by the Soviet Delegation

[Translation]
[Undated]

Reparations from Germany

1. Reparations shall be taken by each Government in its own zone of occupation. They shall assume two forms: simultaneous removals from the national property of Germany (equipment, matériel), which shall be completed within two years after surrender, and yearly delivery of products out of current production, which shall be completed within ten years after surrender.

2. Reparations shall have the purpose of aiding the quickest possible restoration of the economies of countries which suffered from German occupation, taking into account the necessity of eliminating the war potential of Germany in all ways.

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

   (a) 15% of such usable and complete industrial capital equipment, in the first place from the metallurgical, chemical and machine manufacturing industries, which on determination of the Control Council in Germany on the basis of the report of the Commission on Reparations shall be subject to removal on reparations account from the Western Zones: this equipment shall be transferred to the Soviet Union in exchange for an equivalent value of food, coal, potash, timber, clay products, and petroleum products over a period of 5 years.

   (b) 10% of the basic industrial capital equipment shall be taken out of the Western Zones on reparations account without payment or exchange of any kind in return.

   Establishment of the amount of equipment and matériel to be removed from the Western Zones on reparations account must be determined within three months at the latest.

4. In addition to this, the USSR shall receive on reparations account:
   (a) 500 million dollars worth of the shares of industrial and transport enterprises in the Western Zones;
   (b) 30% of the external investments of Germany;
   (c) 30% of the German gold which has come into the hands of the Allies.

5. The USSR itself shall assume the settlement of the reparations claims of Poland from its own share of reparations. The USA and Great Britain shall do the same in regard to France, Yugoslavia, Czechoslovakia, Belgium, Holland, and Norway.

[NormanStewart]

740.00119 EW/7-3045

The Commander in Chief of the Soviet Forces of Occupation in Germany to Generalissimo Stalin

[Translation?]
[Undated]

I report that while withdrawing their troops from our zone temporarily occupied by them Americans and British have removed without our agreement the following rolling stock:

Americans

1. Erfurt Railroad Board
Loaded goods cars—	9722
Passenger cars—	278
Locomotives of all types	87
2. Magdeburg Railroad Section
Loaded goods cars—	655
Empty goods cars—	939
Passenger cars—	322

British

1. Schwerin Railroad Board
Loaded goods cars—	36
Empty goods cars—	1200
Locomotives of all types	15

Total removed

	By Americans	By British	Total
Loaded goods cars	10377	36	10413
Empty goods cars	939	1200	2139
Passenger cars	600	—	600
Locomotives of all types		15	102

Please bring up before the Allies the question of returning to our zone of occupation the abovementioned rolling stock as we in our zone experience acute shortage of rolling stock.

ZHUKOV

[NormanStewart]

740.00119 (Potsdam)/7-3145

Proposal by the U.S. Delegation

[Babelsberg,] July 31, 1945

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 Commissions, now that hostilities in Europe have ceased. These proposals include provisions for regular and frequent meetings of the three representatives, improved facilities for British and American representatives, and prior joint consideration of directives.

The Three Governments agree that the revision of the procedures of the Allied Control Commissions in these countries will now be undertaken, using as a basis of discussion the above-mentioned proposals, and taking into account the interests and responsibilities of the three Governments which together presented the terms of armistice to the respective countries.

[NormanStewart]

Cohen Notes

Potsdam, July 31, 1945, 4:00 p.m.

MR. BEVIN reports for the Foreign Secretaries.

TRUMAN: The first point on the agenda is the United States proposal regarding reparations, Polish frontier, and admission into the United Nations of various categories of states.

MR. BYRNES presents reparations paper.

MOLOTOV: We should like to circulate our own draft.

BYRNES: The United States proposal on reparations is one part of a proposal dealing with three controversial subjects. The other subjects are the western frontier of Poland and admission of states to the United Nations. The United States delegation has made it plain that concessions in proposals were conditioned on the acceptance of all three points.

STALIN: The questions are not connected.

BYRNES: The subjects are different but they have been before the Conference for two weeks. The United States is making concessions which it would not make except to obtain an all around settlement.

As to the first question, reparations, United States proposes a [that] 25 percent of the industrial capital equipment determined to be unnecessary for the peace economy should be exchanged for an equivalent of food, coal, potash, timber and other articles from Soviet zone and additional 15 percent of such equipment not necessary for peace economy should be removed and transferred to Soviet [Union] on reparation account without further consideration. In our original proposal this equipment was to come from the Ruhr zone.

In the foreign secretaries’ meeting the British said they could not agree if exactions were from the Ruhr only but could agree if they came from the three western zones. It was agreed that the only difference would be one of percentages and that the percentage would be just one-half of what was in the American proposal regarding the Ruhr; that is if all the unneeded equipment in the western zones is included, the percentages would drop to 12½ and 7½ percent.

MOLOTOV: Those figures were not agreed upon.

BYRNES: They were suggested by the British and I agree that they are better from an administrative point of view and more advantageous to our Soviet friends.

STALIN: We agreed, not only the Ruhr but all the zones should be considered.

BYRNES: As to the reparations proposal, there were two or three suggestions made at the foreign secretaries’ meeting which ought to be adopted. There was the machinery for the determination of equipment not needed for peace, therefore available for reparations. The Soviet delegation stated that they wished to be specific as to how this should be done. This should be done by the Allied Control Commission in accordance with policies laid down by the reparations commission subject to the approval of the zone commander. I suggest determination be made by the Control Commission because four governments are on that Council and it is an administrative body while the reparations commission is a policy body. The removal of the industrial equipment should be completed in two years in exchange for instalments to be delivered over five years. It should also be stated that the reparations claims of other countries except Poland should be met from the western zones.

My other proposals relating to Poland’s western frontier and the admission of states into the United Nations. The Polish paper gives to the Polish government the interim administration of all the territory they have asked for. The admission of states to the United Nations paper contains language which I hope meets the approval of the Soviet. It originally provides that the three governments in the near future should examine the question of the resumption of diplomatic relations with the satellites. The British stated that that presented constitutional difficulties for them. Mr. Churchill said they could recognize them 90% but not completely until peace was concluded. Finally, Marshal Stalin asked if the British would agree to recognize them completely or partially. I, therefore, suggest that we examine the question of diplomatic relations in the near future in the light of conditions prevailing to the full extent possible prior to the conclusion of peace. Our British friends have not been pleased but have agreed to accept this proposal in principle.

STALIN: We have no objection in principle.

BYRNES: The other changes are the insertion of a provision that the three governments expressed the desire that the representatives of the Allied press be given freedom to report developments in the satellite states. The language is substantially the same as used in the Polish paper.

STALIN: I have an amendment. I should say three governments have no doubt that the Allied representatives will have freedom to report.

BYRNES: That is satisfactory, is it not, Mr. President?

TRUMAN: Yes.

ATTLEE: It is satisfactory to us.

BYRNES: Those are my proposals.

STALIN: Our suggestions are circulated, (paper read)

MR. BYRNES suggests tying three questions together. Mr. Byrnes can use such tactics as those if he wishes, but the Russian delegation will vote on each question separately. I have just read our suggestions on reparations. The Soviet delegation has accepted the view of the American delegation not to mention a definite amount. I must also read paper circulated on removals made from the Russian zone by the Americans and British. Today we have a report that American and British have taken 11,000 railroad cars. Should they be returned or compensated? You will see that the Russians are not the only ones to remove equipment.

TRUMAN: I think there should be a central transport authority for this purpose.

STALIN: I want to make it clear that not only the Russians have sinned but the Americans and British have also. We should now be able to agree on reparations. Exactions should come from the three western zones. Part of the equipment will be exchanged for products for five years. Council determines the equipment to be removed from the western zone [zones?]. We want time limit when the amount of equipment to be removed is mentioned.

TRUMAN: We agree.

BYRNES: We provide two years for the removal of equipment and five years for the exchange of products.

STALIN: I have in mind a time limit for determination what equipment is to be removed, say three months.

BEVIN: That is not sufficient.

STALIN: Let it be three or five months.

BEVIN: I will agree to six.

STALIN: All right. I hope my friends will agree.

BEVIN: Your basis is 15 percent of the total. Our proposal was 15 percent of what was left after the retention of enough equipment to keep the economy going. I am sorry I can not support it. The Soviet refers to total industrial equipment. Our proposal refers to what is left after retention of what is needed for peace economy.

STALIN: The Allied Control Commission determines what should be removed.

BEVIN: I must insist that the Control Commission first determine what is necessary for peace economy.

STALIN: It is the same.

BEVIN: Will you accept our word [wording]?

STALIN: What is the difference?

BEVIN: I don’t want any misunderstanding.

STALIN: We have in mind 15 percent of what is to be removed and is not needed for peacetime industry. The Control Council decides.

BYRNES: But we have it in our proposal. (Byrnes rereads his proposal regarding authority of control council)

STALIN: I agree.

BYRNES: If that is so, the only point in dispute is the percentage. You want 15 and 10 instead of 12½ and 7½. In addition you add on the second page of your proposal, you want shares in industrial and transport companies to the amount of 500 million dollars and 30 percent of foreign assets and 30 percent of gold. As to gold, our staff contends the ownership of this is identifiable. It is looted gold. It should be returned to its owners. Is the Soviet insisting on the five [500?] million in shares in addition to increases in percentages of 30 percent of gold and foreign assets?

STALIN: That is what we would like to have.

BYRNES: What have you in mind in reference to foreign assets?

STALIN: Assets that have been frozen.

BYRNES: That is a matter to be determined by our Congress. The President has called my attention to the fact that the Congress has already determined this. There are claims of refugees. We could not make such an agreement. There will be claims for reimbursement of losses.

BEVIN: Yesterday we agreed on determination that France be added to the reparations committee.

STALIN: I don’t object.

BEVIN: In regard to percentage we thought we had met you yesterday by agreeing to 12½ and 7½. We thought that was very liberal.

STALIN: That was not liberal – just the opposite.

BEVIN: It was generous.

STALIN: We have a different point of view.

BEVIN: I take it reparations will not interfere with the exchange of goods. We take it it involves no departure from our economic principles arrived at in our report of July 20.

STALIN: These should be discussed.

BEVIN: The gold presents very great difficulties. As to German foreign assets, we could consider limiting this to neutral territory.

STALIN: We could agree.

BEVIN: I do not know if my American friends can agree.

BYRNES: We stand on our proposals and we cannot accept the additional point added by the Soviets.

STALIN: Then we should increase the percentage. You have taken equipment from our zone.

TRUMAN: We have been informed by the Russians of these alleged removals. We have asked General Eisenhower to investigate. The removals were not authorized by the American government and you need not worry about them.

STALIN: I quite accept it.

TRUMAN: Neither were any people removed by the authorities. We have too many people to take care of now.

STALIN: Let us agree to the percentages 15 and 10.

TRUMAN: I agree if our British friends do.

STALIN: I agree.

BEVIN: Take out paragraph 4 and I will give you 12½ and 10 percent.

STALIN: Paragraph 5 remains. If America agrees will not the British agree? You need not worry about France. She signed an armistice with Hitler. Neither Great Britain, Holland, nor Belgium broke the common front. France did.

BEVIN: But we must also take care of Yugoslavia, Greece, Belgium and Holland as well as France. I want nothing but raw materials. Neither Holland nor Belgium broke the common front as France did.

BYRNES: In the proposal of the American delegation, it is stated that claims other than Poland should be met from the western zone. I ask you to consider the language of that proposal.

STALIN: You wish not to mention the names of the countries? We have no objection.

BEVIN: My impression is that this will give you more than 50 percent of the reparations.

STALIN: No, less than 50 percent. The 15 percent is in exchange. Our proposals are the minimum. We received [receive?] from you only 10 percent.

BEVIN: I will give you 17½ percent on exchange and 7½ on the free.

STALIN: That is your suggestion.

BEVIN: I think that it is better.

STALIN: We receive only 7½ percent then? I think 15 and 10 is fair.

BEVIN: Well, I will agree.

TRUMAN: The next question is Poland.

BYRNES: I need not read the proposal. I hope our British and Soviet friends will agree.

BEVIN: I think the document should be read.

BYRNES reads the proposal, indicating that the Poles are to have provisional administration of the area bounded by the Oder and the Western Neisse.

BEVIN: I have been instructed to hold for the eastern Neisse. Does it mean that the zone will be handed over to the Poles entirely and that the Soviet troops will be withdrawn? I have met the Poles on this question and in the light of the declaration in the United States document, I have asked them what their intention really is because any change of a territory must be defended in Parliament. That defense will be effected but what will happen in the new Poland? I asked the Poles their intention in regard to free election[s] on universal suffrage. They assured me that they will hold elections as soon as possible, not later than January, 1946, subject to conditions beyond their control. They also agreed to the freedom of the press. They gave assurance on the freedom of religion. But one very important matter is repatriation of troops. I asked them if they would make a declaration so we would be sure that they would receive equal treatment. Another point which concerns the Soviets and ourselves that the Poles can not settle with us is the establishment of an air service between Poland and London so as to enable His Majesty’s Government to maintain regular communications with the embassy at Warsaw. I should like an agreement on that immediately. In the United States document it says area under the administration of Polish state and not part of Soviet occupation. That means it is under Poles for all matters.

TRUMAN: That is subject to the peace treaty. It is only for administration.

BEVIN: Although it is under the Polish administration, technically it is under Allied control. I only wish to get this point clear. If it is a transfer, would I not have to get French approval?

STALIN: The French have nothing to do with it. It is the Russian zone.

BEVIN: Can we do this, Marshal, without the consent of those on the Control Council?

STALIN: In this case, yes. The Polish state must have a border but it is subject to the final decision of the Peace Conference.

BEVIN: I want to settle this but does not the Control Council agreement give it jurisdiction over Germany with its 1937 boundaries? I don’t press the point. What happens in this zone? The Poles take over and the Soviet forces withdraw.

STALIN: The Soviet troops would withdraw if territory did not constitute a line of communication with our troops in Germany. There are two communication lines running through POLAND. These are the routes through which our armies are fed just as your[s] are fed through the roads of Belgium and Holland.

BEVIN: Troops are limited to your communication needs?

STALIN: Yes. We have already removed four divisions of our troops and we contemplate further reduction by agreement with Polish government. This zone is now actually administered by the Poles.

BEVIN: Could you help in this interim period with this air communication? We only want one or two planes a week taking in and out officials and mail. The Soviet military command is involved. We must fly over Russian zone.

STALIN: They fly now over the Russian zone to Berlin.

BEVIN: Can you agree to Warsaw?

STALIN: This must be discussed with the Poles. We can agree if our planes can go to London from France. As to communication to Warsaw, you could use Russian pilots from France. We would use French and British pilots.

BEVIN: That is too complicated to settle here. It would assist if we could settle Warsaw-London communication here.

STALIN: I will do all I can.

TRUMAN: This settles the Polish question.

STALIN: Stettin is in the Polish territory.

BEVIN: Yes. We should inform the French.

STALIN: Yes.

TRUMAN: Next question. Mr. Byrnes will speak.

BYRNES: This is the proposal regarding the admission of states to the United Nations.

BEVIN: We agree.

STALIN: Mr. Molotov will speak.

MOLOTOV: Amendment to paragraph 4. We want to say the governments have no doubt instead of the governments express their wish that the Allied press will have full freedom to report.

TRUMAN: A few other things. Economic principles for Germany were postponed. There should be no trouble now.

MOLOTOV: Paragraph 19. Our draft deals with priority of reparations.

BYRNES: Since we have agreed to reparations plans giving the Soviet claim to equipment only, there is no need for this paragraph.

STALIN and MOLOTOV: That is right. There is no need for it at all.

BYRNES: In this paper there are two amendments I should like to submit. On page 2 there is enumerated a common policy embracing various items. The section regarding the currency should read currency, banking, central taxation and customs. A new subheading should also be added to include transportation and communication.

TRUMAN: That takes care of your freight cars.

STALIN: There will be need for central machinery.

BYRNES: My suggestion on page 3, paragraph 14, amendment on extension of credit. No credit except where determined by occupying power necessary to pay for imports. In view of reparations agreement it would not affect our Soviet friends.

STALIN: This would be applicable in all zones.

BYRNES: Yes.

BEVIN: I propose we delete sentence altogether.

STALIN: I agree.

BYRNES: For the same reason we propose deletion of paragraph 18.

BEVIN: We propose approved imports should be first charge on proceeds on exports from current production.

STALIN: There is no necessity for this.

BYRNES: You have control in your zones.

BEVIN: But this is cutting the zones up. The [That] presents great difficulty.

MOLOTOV: We have circulated a paper on the Ruhr. In this draft the Ruhr should be part of Germany but there should be a control by four powers and a four power council.

BEVIN: I can’t discuss this without the French. It is an important point of principle. They are vitally affected.

STALIN: Is there any doubt that the Ruhr should be considered part of Germany?

TRUMAN: Not for purposes of the occupation and control.

STALIN: Let us confine ourselves to the paragraph that the Ruhr is a part of Germany and under the control council.

STALIN: Perhaps we should mention it. This question is being raised because at Tehran the point was raised that the Ruhr should be made a region separate from Germany under the great powers. When Churchill visited Moscow he was favorable to the separation of the Ruhr. This idea was the consequence of the principle of dismemberment. Since then the views of the leaders have changed and they think dismemberment inadvisable. The Russian delegation wants to know if the Ruhr is to remain with Germany.

TRUMAN: The Ruhr is part of Germany and is under the jurisdiction of the Control Council.

BEVIN: I can [not] agree on this question now. I know that the internationalization of the Ruhr has been discussed, but it must remain under the Control Commission pending further discussion. I should be quite willing for this to go to the Council of Foreign Ministers.

TRUMAN: That is agreeable to me. I think the American delegation has circulated a paper regarding the Allied property in the satellite countries.

BEVIN: Before going into that, I should like to discuss the Soviet amendment to the economic [political] principles for Germany which would authorize the establishment of Central Germany and [central German] administrative agencies to assist the Control Council. I have a redraft of the Soviet amendment. It is really a short version of the Soviet proposal.

STALIN: It is acceptable to us.

TRUMAN: We accept it.

BEVIN: I should also like to suggest paragraph (9) [19] of the economic principle[s] should go back to the Economic Committee [Subcommittee] for further consideration.

STALIN: When will the committee discuss it.

TRUMAN: Immediately. The next question relates to the transfer of populations from Poland, Czechoslovakia and Hungary.

BYRNES: My understanding is that the proposal was agreed to by the committee except for the last paragraph requesting the deferment of further expulsions pending report of the Control Council. I urge acceptance of the last paragraph.

MOLOTOV: The document intended to make all this business orderly. That is the way it can be understood by the Poles and the Czechs, but it is not possible to adopt the decision without hearing the Poles and the Czechs.

STALIN: If we adopt the decision it could not be carried out. The Germans themselves prefer to get away because of conditions. If we adopt the decision proposed it would be a shot in the void.

BYRNES: There is a difference in the information that we have received. According to our information these expulsions are forcible.

STALIN: I will agree if you insist.

ATTLEE: These governments should realize that they are creating a burden for other countries.

STALIN: I have no objection.

BEVIN: I wish the French to be notified of this decision.

TRUMAN: Next item is the German Fleet.

STALIN: We should like a final decision today, if not today, tomorrow.

TRUMAN: I agree, although I had hoped to get away.

LEAHY: The committee will be ready in the morning

STALIN: As the principle has been decided on, perhaps we could leave this for the Foreign Ministers.

BYRNES: We may be able to settle it here.

STALIN: It has been decided that we get one-third of the Navy, except the submarines, the greater part of which are to be sunk and that the merchant fleet will be at the disposal of the Allied Command for use in the war [against Japan] and decide it at the end of the war. Let us settle it here.

TRUMAN: I agree that it should be settled before we leave. We now consider our paper on the implementation of the Yalta Agreement.

BYRNES: Most of our proposal was not agreed to. The committee has simply agreed on two paragraphs for revised and improved procedures for the Allied Control Commission in Rumania, Bulgaria and Hungary.

STALIN: The question was not on the agenda. We may not object until [after?] we have read it.

TRUMAN: We will defer it until tomorrow.

MOLOTOV: We have circulated the draft on Greece yesterday. We circulated the paper [on] Trieste.

BEVIN: We presented a reasonable request regarding Yugoslavia. In view of the lateness of the hour, I do not think we can consider Greece or Yugoslavia, or Trieste.

STALIN: We will drop it then.

TRUMAN: The next item relates to the war criminals.

MOLOTOV: The Soviet delegation agrees to accept the British draft with one amendment. The amendment is in the last sentence after the words “War criminals”. We wish to add specific names “Such as Goering, Hess, Rosenberg, Ribbentrop, etc.”

ATTLEE: It is not wise to put in names.

STALIN: We merely suggest that such people as Goering and Ribbentrop be tried. If we remain silent it will cast a shadow on our prestige. If we name persons as an example we do not leave out the others. It is no offense to the prosecution. It will be helpful politically.

BYRNES: Yesterday I urged it was unwise to name names. Every country has its favorite criminal. It will be difficult to explain to each country why its pet criminal was not named.

STALIN: We suggest only “such as”.

BEVIN: There is some doubt whether Hitler is alive. He is not on the list.

STALIN: But he is not in our hands. I quite agree that Hitler should be hanged.

ATTLEE: The world knows quite well who are the major criminals.

STALIN: But if we remain silent the world thinks we want to save them and to go after only the minor ones.

BYRNES: This morning I spoke to Justice Jackson. He expressed the hope that this afternoon or tomorrow morning his committee might reach an agreement. If Stalin could urge his representatives to agree an announcement as to the agreement on a tribunal and place a [of] trial could be made. This would be good news.

STALIN: That is another question.

BYRNES: We could include it in our statement.

STALIN: If we do not mention criminals known to the whole world by names our work will not have the same worth. Russian lawyers advise us that naming the defendants help them and give them the needed orientation.

TRUMAN: I have been interested in the freedom of waterways. I should like to have some discussion of my paper on this subject. The committee appointed for this purpose never met. Some policy regarding the Rhine and Danube should be worked out. It would be a great preventative of future wars. I do not expect an agreement on details here, but it should be discussed.

ATTLEE: I am in general agreement with the President.

MOLOTOV: This question has arisen in connection with the Straits and that question has been proposed [postponed]. The question of internal waterways requires study. We need people who know something about it.

TRUMAN: I suggest the matter be referred to the Council of Foreign Ministers.

STALIN: All right.

ATTLEE: We agree.

TRUMAN: Would it be proper to notify the Polish officials of our decision on the Polish Boundary.

STALIN: The President, as our chairman, can act or designate others to act for or with him to advise the Poles on our decision.

TRUMAN: The Foreign section [Secretaries] will meet at 11:00 o’clock tomorrow and we will meet at 3:00. Adjourned.

[NormanStewart]

740.00119 Potsdam/7-3145

U.S. Delegation Memorandum

Potsdam, July 31, 1945, 4:00 p.m.

Summary of Meeting of Heads of Government, July 31, 1945

1. German Reparations. The U.S. draft on this subject was accepted with the following changes:

   a. The figure of 12½% for compensated deliveries to the Soviets was changed to 15% and the figure of 7½% for uncompensated deliveries was changed to 10%.

   b. France was added to the Reparations Commission for the purpose of determining equipment available for reparations.

   c. Six months was fixed as the final term for determination of the amount of equipment available for reparation.

   A subcommittee was named to prepare the final draft on this subject.

2. Polish Western Frontier. The U.S. draft on this subject was accepted. It was further agreed (a) that Stettin should be considered as included within the area of Polish administration; (6) that the French should be informed of the decision on the Polish frontier; and (c) that the President should notify the Poles of this decision.

3. Admission to the United Nations. The U.S. paper on this subject was approved with three minor verbal changes.

4. German Economic Principles. Several U.S. suggestions were approved including the deletion of the last sentence of paragraph 14d. Paragraph 18 was dropped. Paragraph 19 was referred to the Economic Subcommittee for final consideration.

5. The Ruhr. On the motion of Mr. Bevin the Soviet proposal on this subject was referred to the Council of Foreign Ministers. The U.S. and Soviets were in agreement that the Ruhr is a part of Germany and all three governments were in agreement that the Ruhr is under the authority of the Control Commission.

6. German Political Principles. The British redraft of the Soviet proposal for an additional point on a central German administration was accepted.

7. Transfer of German Populations from Czechoslovakia, Poland and Hungary. The U.S. paper on this subject was accepted. It was agreed that this decision should be communicated to the French.

8. Disposition of the German Fleet and Merchant Marine. It was agreed that the subcommittee dealing with this subject should present its report tomorrow.

9. Revised Allied Control Commission Procedure in Rumania, Bulgaria and Hungary. It was agreed that the U.S. proposal on this subject should be discussed tomorrow.

10. Yugoslavia. It was agreed to drop both the British and Soviet proposals on this subject.

11. War Crimes. This question was put over until tomorrow. The Russians agreed to the British text on this subject except that they wish to insert some of the names of the principal war criminals.

12. Unrestricted Navigation of International Inland Waterways. It was agreed that this question should be referred to the Council of Foreign Ministers.

---

740.00119 Potsdam/7-3145

U.S. Delegation Memorandum

Potsdam, July 31, 1945, 4:00 p.m.

Pending Questions Before the Conference, Close of Business, July 31, 1945

1. German Reparations
A subcommittee is to present a draft embodying the agreement reached today.

2. German Economic Principles
The economic subcommittee is to present a final draft on this subject, particularly in regard to paragraph 19.

3. Italian Reparations
As no decision has been reached on this question, the Soviets may raise it again.

4. Disposition of the German Fleet and Merchant Marine
The subcommittee on this question will report tomorrow.

5. Revised Allied Control Commission Procedure in Rumania, Bulgaria and Hungary
The U.S. paper on this subject will come up for discussion tomorrow.

6. War Crimes
The Soviets have approved the British draft but the question of whether or not certain prominent war criminals should be named remains open.

7. Use of Allied Property for Satellite Reparations or “War Trophies”
The U.S. paper on this subject has not yet been acted upon.

8. German External Assets
The U.S. proposal on this subject is still before the economic subcommittee.

9. Oil for Western Europe
The economic subcommittee has not yet reported on the U.S. proposal on this subject.

10. Allied Oil Equipment in Rumania
The latest British proposal7 on this subject has not yet been acted upon.

11. Directive to the Military Commanders in Germany
The subcommittee is awaiting completion of the work of the Conference in relation to Germany.

[NormanStewart]

740.00119 (Potsdam)/7-3145

The Ambassador in France to the French Minister of Foreign Affairs

Paris, July 31, 1945
No. 533

Excellency: Acting under instructions from my Government, I have the honor to transmit an invitation on behalf of my Government to the Government of France to participate in the Council of Foreign Ministers of the Five Great Powers.

Your Excellency will note that my Government attaches much importance to the participation of the French Government in the proposed arrangements and hopes to receive an early and favorable reply to this invitation.

I avail myself [etc.]

JEFFERSON CAFFERY

[Enclosure]

The Governments of the United Kingdom, the United States and the USSR consider it necessary to begin without delay the essential preparatory work upon the peace settlements in Europe. To this end they are agreed that there should be established a Council of the Foreign Ministers of the Five Great Powers to prepare treaties of peace with the European enemy States, for submission to the United Nations. The Council would also be empowered to propose settlements of outstanding territorial questions in Europe and to consider such other matters as member Governments might agree to refer to it.

The text adopted by the Three Governments is as follows:

It was agreed that the three Governments should each address an identical invitation to the Governments of China and France to adopt this text and to join in establishing the Council.

It was understood that the establishment of the Council of Foreign Ministers for the specific purposes named in the text would be without prejudice to the agreement of the Crimea Conference that there should be periodical consultation between 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 surrender for Germany, for the zones of occupation in Germany and Austria, and for the inter-Allied control machinery in these countries. It was felt that further work of a detailed character for the co-ordination of Allied policy for the control of Germany and Austria would in future fall within the competence of the Allied Control Commission at Berlin and the Allied Commission at Vienna. Accordingly the Conference agreed to recommend to the Member Governments of the European Advisory Commission that the Commission might now be dissolved.

In agreement with the Governments of the United Kingdom and USSR, the United States Government extends a cordial invitation to the Government of France to adopt the text quoted above and to join in setting up the Council. The United States Government attaches much importance to the participation of the French Government in the proposed arrangements and it hopes to receive an early and favorable reply to this invitation.

The three governments 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 task by the recommendations that it had furnished for the terms of surrender for Germany, 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 Commission at Berlin and the Allied Commission at Vienna. Accordingly, the three governments have agreed to recommend to the French government that the Commission might now be dissolved.

[NormanStewart]

740.00119 (Potsdam)/7-3145

The Ambassador in France to the French Minister of Foreign Affairs

Paris, July 31, 1945
Secret
No. 669

Excellency: Acting under instructions from my Government, I have the honor to transmit a communication on behalf of my Government to the Government of France relating to political principles which the Government of the United States considers should govern the treatment of Germany in the initial control period. It is the earnest wish of my Government that the Government of France will be able to associate itself with these principles.

Your Excellency will note that my Government will be grateful if the Government of France would treat the present communication as strictly secret until such time as an official statement is issued by the Conference.

I avail myself [etc.]

JEFFERSON CAFFERY

[Enclosure]

The Governments of the United Kingdom, the United States and Union of Soviet Socialist Republics have agreed upon the following political principles which they consider should govern the treatment of Germany in the initial control period. It is their intention to communicate the text of these principles to the Commanders-in-Chief of their respective forces of occupation in Germany after the conclusion of the present Conference and to instruct them to be guided by these principles in their action in their respective zones of occupation, and to concert with their colleagues on the Control Council in working out the application of these principles in such a way as to ensure the appropriate uniformity of action in zones of occupation.

It is the earnest wish of the three Governments that the Provisional Government of the French Republic will be able to associate itself with these principles and to send similar instructions after the conclusion of the Conference to the Commander-in-Chief of the French Forces of Occupation.

The three Governments would be grateful if the French Provisional Government would treat the present communication as strictly secret until such a time as an official statement is issued by the Conference.

Agreement on Political Principles to Govern the Treatment of Germany in the Initial Control Period

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. 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.

Paris, July 31, 1945

[NormanStewart]

Harriman conversation with members of the Polish Delegation, afternoon or early evening

	Present
United States		Poland
Mr. Harriman

Diary Entry by the Polish Deputy Prime Minister

[Babelsberg, July 31, 1945]
[Translation]

Mr. Harriman called in the afternoon. On behalf of President Truman, as chairman of the meeting of the Big Three which began at 4 o’clock, he invited the Polish Delegation to see President Truman the next day, when the latter would communicate the results of the meeting today.…

[NormanStewart]

Meeting of the Communiqué Subcommittee, evening

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

Brown’s diary entry: “… Communiqué Committee met after Big Three meeting. We were well up with our work. …”

[NormanStewart]

The Pittsburgh Press (July 31, 1945)

Big Three meets again after 2-day delay

Sessions near end; Stalin slightly ill

POTSDAM, Germany (UP) – President Truman, Prime Minister Attlee and Premier Stalin met for three and a half hours today after a two-day delay caused by the slight illness of the Soviet generalissimo.

The Potsdam conference was believed to be drawing to a close, but a spokesman said the Big Three plenary consultation was not yet finished.

ABC reported that armed officers had taken up guard over he broadcasting studio at Potsdam “to prevent premature disclosure of the end of the Big Three Conference.”

A London dispatch said Prime Minister Attlee was expected to return to London in time for the opening of the new Parliament tomorrow.

Stalin remained in his Berlin quarters Sunday and yesterday. His physician described his illness as a “slight indisposition” – presumably a cold or indigestion.

Others in conference

There was no explanation why official spokesmen told newsmen that the three leaders were continuing to meet during the period while Stalin was unable to attend the sessions.

Soviet Foreign Commissar V. M. Molotov met with President Truman and Mr. Attlee on behalf of Stalin Sunday.

Molotov also conferred with U.S. Secretary of State James F. Byrnes and British Foreign Secretary Ernest Bevin both Sunday and yesterday.

Censorship blamed

The conference was originally scheduled to have ended yesterday with an important communiqué, but Stalin’s illness prolonged it through today and possibly tomorrow.

Although the delay was first disclosed last night, heavy censorship at the top made a major mystery out of it by banning all mention of the reason for the interruption.

It was believed that the three chiefs of state still have major decisions to make on explosive problems relating to the Pacific War and occupation of Europe.

Truman slated to visit Britain

LONDON, England (UP) – Well-informed sources said today that President Truman will land in British soil late this week and be greeted by King George.

Informants reported that the King will go to some British port, probably Plymouth, to welcome Mr. Truman to Britain in a meeting unprecedented in royal history.

Indications were that the meeting would occur Thursday or Friday. That presumably meant that the Big Three meeting will be ended by then.

The King was originally scheduled to leave London tonight, it was reported, but the plans were changed because Premier Stalin’s indisposition delayed the Potsdam proceedings for two days.

Court circles said the King’s reported journey to welcome a foreign dignitary to Britain for a few hours will be the first time the sovereign ever paid such an exceptional honor. Normally he stays in the Palace and receives visitors to his court.

The King’s reported decision to break precedent was said to be based on a desire to honor the United States and repay the courtesies tendered him during his visit to America.

Big Three meeting bogs down?

LONDON, England – The impression is gaining ground that the Big Three meeting at Potsdam, acclaimed in advance as one of the great meetings of modern history, will fall somewhat short of expectations.

There appears no other explanation for the widespread confusion, which has marked the course of the conference, and the hasty manner in which it appears to be ending.

One thing is certain. Many matters which were pressing for consideration at the meeting cannot possibly have been settled up to now and must remain in abeyance if, as reported, the leaders are leaving Potsdam tonight. This may not have been the result of disagreement, but it must have resulted from a feeling that agreement at this time was not possible on certain problems.

[NormanStewart]

Editorial: New warning to the Japs

…

[NormanStewart]

Background of news –
Tangier

By Frank Aston

…

[NormanStewart]

Youngstown Vindicator (July 31, 1945)

Editorial: Mr. Truman’s new position

…

[NormanStewart]

Stowe: Russia ahead of her allies in building program in Reich

By Leland Stowe

…

[NormanStewart]

U.S. State Department (July 31, 1945)

Log of the President’s Trip to the Berlin Conference

Tuesday, July 31:

At 0900 Brigadier General Stuart Cutler, Commanding General, Berlin Headquarters District, came to the Little White House and called on the President and General Vaughan.

1000: Mr. Rowan, Prime Minister Attlee’s secretary, called on the President.

Mail was dispatched to Washington this afternoon.

1545: The President left the Little White House for Cecilienhof.

1600: The eleventh meeting of the Big Three was convened. This turned out to be a long session as the meeting did not adjourn until 1915. The President left immediately for the Little White House.

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