Potsdam Conference (TERMINAL)

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.

    image

  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.

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.

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

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.

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.

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.

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.

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

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.…

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. …”

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.

Editorial: New warning to the Japs

Background of news –
Tangier

By Frank Aston

Youngstown Vindicator (July 31, 1945)

Editorial: Mr. Truman’s new position

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

By Leland Stowe

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.

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

The Syonan Shimbun (August 1, 1945)

Stalin resumes talks after short indisposition

LISBON (Domei, July 31) – Soviet Premier Josef Stalin who had been slightly indisposed and absent from the discussions since Sunday, resumed the talks this afternoon with American President Harry Truman and British Prime Minister Clement Attlee, according to a Berlin dispatch.

It is understood that during Stalin’s illness, Soviet Foreign Commissar Molotov represented Stalin in the discussions with Truman and Attlee.

Berlin press reports state that Attlee will be returning to Britain after today’s meeting to attend the swearing-in ceremony, of the newly appointed British Cabinet Ministers, scheduled for tomorrow, leaving British Foreign Minister Ernest Bevin to carry on at Potsdam.

Salzburger Nachrichten (August 1, 1945)

Potsdamer Konferenz verzögert

L’Aube (August 1, 1945)

À Potsdam –
La conférence se poursuivra-t-elle sans Attlee ?

U.S. State Department (August 1, 1945)

740.00119 Potsdam/8-145

Report by the Technical Subcommittee on Disposition of the German Navy and Merchant Marine

[Babelsberg, August 1, 1945]
Enclosure[s]: (A) Decisions of the Tripartite Conference on Distribution of the German Navy
(B) Decisions of the Tripartite Conference on Distribution of the German Merchant Marine
  1. The Committee met at 1030, 31 July, 1945, in consideration of above subject. The Committee’s recommendations, Enclosures (A) and Enclosure (B), are based upon tentative decisions reached during plenary sessions of the Tripartite Conference beginning 17 July, 1945. These enclosures are drafted in the form of decisions in order to facilitate final action in the plenary session of the Tripartite Conference. [For?] Those parts of the enclosures in which agreed recommendations could not be made the divergent views are set forth in each of the specific paragraphs involved.

  2. The Committee feel bound to draw the attention of the Conference [to] the possibility that any public announcement that German warships are to be divided amongst the Allies may result in the German crews scuttling ships which might be ordered to sail to Allied ports. It is therefore desirable that no announcement of the division of the German Navy be made, at any rate until the expert commission has completed its investigations, which should include the detailed arrangements for carrying out the transfer of ships. A similar delay is necessary before making any definite announcement about the division of the surrendered German merchant ships. The Committee accordingly recommend that the Conference might confine publicity to the following announcement:

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

КУЗЊЕЦОВ
Admiral of the Fleet

C M COOKE JR.
Vice Admiral, U.S. Navy

E D B MCCARTHY
Rear Admiral, Royal Navy

[Enclosure A]

Decisions of the Tripartite Conference on Distribution of the German Navy

  1. The Tripartite Conference agree upon the following principles for the distribution of the German Navy:

    (a) The total strength of the German surface navy, excluding ships sunk and those taken over from Allied Nations, but including ships under construction or repair, shall be divided equally among the USSR, U.K., and U.S.

    (1) (The British representatives expressed the view that a portion of the German Navy should be allotted to France and that, therefore, full agreement with the above principles must be subject to final decision of the Plenary Conference.)

    (b) Ships under construction or repair mean those ships whose construction or repair may be completed within three to six months, according to the type of ship. Whether such ships under construction or repair shall be completed or repaired shall be determined by the technical commission appointed by the Three Powers and referred to below, subject to the principle that their completion or repair must be achieved within the time limits above provided without any increase of skilled employment in the German shipyards and without permitting the reopening of any German shipbuilding or connected industries. Completion date means the date when a ship is able to go out on its first trip, or, under peace-time standards, would refer to the customary date of delivery by shipyard to the Government.

    (c) The larger part of the German submarine fleet shall be sunk. The Committee are not able to make a recommendation as regards the number of submarines to be preserved for experimental and technical purposes.

    • (1) It is the opinion of the British and American members that not more than 30 submarines shall be preserved and divided equally between the USSR, U.K. and U.S. for experimental and technical purposes. Paragraph 1 (a) (1) also applies to submarines.

    • (2) It is the view of the Russian members that this number is too small for their requirements and that USSR should receive about 30 submarines for its own experimental and technical purposes.

    (d) All stocks of armaments, ammunition and supplies of the German Navy appertaining to the vessels transferred pursuant to subparagraphs (a) and (c) hereof shall be handed over to the respective powers receiving such ships.

    (e) The Three Governments agree to constitute a tripartite naval commission comprising two representatives for each Government, accompanied by the requisite staff, to submit agreed recommendations to the Three Governments for the allocation of specific German warships and to handle other detailed matters arising out of the agreement between the Three Governments regarding the German fleet. The Commission will hold its first meeting not later than August 15th, 1945, in Berlin, which shall be its headquarters. Each delegation on the Commission will have the right on the basis of reciprocity to inspect German warships wherever they may be located.

    (f) The Three Governments agree that transfers, including those of ships under construction and repair, shall be completed as soon as possible, but not later than February 15th, 1946. The Commission will submit fortnightly reports, including proposals for the progressive allocation of the vessels when agreed by the Commission.

[Enclosure B]

Decisions of the Tripartite Conference on Distribution of the German Merchant Marine

  1. The Tripartite Conference agree upon the following principles for the distribution of the German Merchant Marine:

    (a) (1) It is proposed by the Soviet and American representatives: The German Merchant Marine, surrendered to the Three Powers and wherever located, shall be divided equally among the USSR, the U.K., and the U.S. The actual transfers of the ships to the respective countries shall take place as soon as practicable after the end of the war against Japan. This distribution shall not preclude any of the Parties from making such further allocation of part of its share to other Allied Nations.

    (2) The British representatives considered it essential to allot a share of not less than one quarter to the lesser maritime Allied States whose merchant marines have lost so heavily in support of the common cause against Germany. Accordingly, the British Delegation proposed the following alternative draft of subparagraph (a) (1):

    One quarter of the German merchant marine surrendered to the Three Powers and wherever located shall be allotted to the Soviet Union and the remainder shall be divided between the U.K. and the U.S. who will provide an appropriate share to the Allied States whose merchant marines have suffered substantial losses in support of the common cause against Germany. The actual transfers of the ships to the respective countries shall take place as soon as practicable after the end of the war against Japan.

    (b) The allocation, manning, and operation of these ships during the Japanese War period shall fall under the cognizance and authority of the Combined Shipping Adjustment Board and the United Maritime Authority.

    (c) While actual transfer of the ships will be delayed until after the end of the war with Japan, a Tripartite Shipping Commission shall inventory and value all available ships and recommend a specific distribution in accordance with subparagraph (a) (as approved).

    (d) The British and American representatives propose the following sub-paragraph: “German inland and coastal ships determined to be necessary to the maintenance of the basic German peace economy by the Allied Control Council of Germany shall not be included in the shipping pool thus divided among the Three Powers.”

    The Soviet representatives do not agree to this inclusion.

    (e) The Three Governments agree to constitute a tripartite merchant marine commission comprising two representatives for each Government, accompanied by the requisite staff, to submit agreed recommendations to the Three Governments for the allocation of specific German merchant ships and to handle other detailed matters arising out of the agreement between the Three Governments regarding the German merchant ships. The Commission will hold its first meeting not later than September 1st, 1945, in Berlin, which shall be its headquarters. Each delegation on the Commission will have the right on the basis of reciprocity to inspect the German merchant ships wherever they may be located.

    (f) The British representatives suggested the need to add the following provision: “The shares of the various Allied States will be counted as reparation receipts.”

    The Soviet Delegation considered that this was unnecessary in view of the new policy agreed by the Conference on reparations.

    The American representatives took no position in this matter.