IV. Reparations from Germany
In accordance with the Crimea decision that Germany be compelled to compensate to the greatest possible extent for the loss and suffering that she has caused to the United Nations and for which the German people cannot escape responsibility, the following agreement on reparations was reached:
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Reparation claims of USSR shall be met by removals from the zone of Germany occupied by the USSR.
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The USSR undertakes to settle the reparation claims of Poland from its own share of reparations.
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The reparations claims of the United States, the United Kingdom and other countries entitled to reparations shall be met from the Western Zones and from appropriate German external assets.
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In addition to the reparations to be taken by the USSR from its own zone of occupation, the USSR shall receive additionally from the Western Zones:
(a) 15 percent of such usable and complete industrial capital equipment, in the first place from the metallurgical, chemical and machine manufacturing industries as is unnecessary for the German peace economy and should be removed from the Western Zones of Germany, in exchange for an equivalent value of food, coal, potash, zinc, timber, clay products, petroleum products, and such other commodities as may be agreed upon.
(b) 10 percent of such industrial capital equipment as is unnecessary for the German peace economy and should be removed from the Western Zones, to be transferred to the Soviet Government on reparations account without payment or exchange of any kind in return.
Removals of equipment as provided in (a) and (b) above shall be made simultaneously.
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The amount of equipment to be removed from the Western Zones on account of reparations must be determined within six months from now at the latest.
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Removals of industrial capital equipment shall begin as soon as possible and shall be completed within two years from the determination specified in paragraph 5. The delivery of products covered by 4 (a) above shall begin as soon as possible and shall be made by the USSR in agreed installments within five years of the date hereof. The determination of the amount and character of the industrial capital equipment unnecessary for the German peace economy and therefore available for reparation shall be made by the Control Council under policies fixed by the Allied Commission on Reparations, with the participation of France, subject to the final approval of the Zone Commander in the Zone from which the equipment is to be removed.
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Prior to the fixing of the total amount of equipment subject to removal, advance deliveries shall be made in respect to such equipment as will be determined to be eligible for delivery in accordance with the procedure set forth in the last sentence of paragraph 6.
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The Soviet Government renounces all claims to shares of German enterprises which are located in the Western Zones of Germany as well as to German foreign assets in all countries except those specified in paragraph 9 below.
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The Governments of the U.K. and USA renounce their claims to shares of German enterprises which are located in the Eastern Zone of occupation in Germany, as well as to German foreign assets in Bulgaria, Finland, Hungary, Rumania and Eastern Austria.
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The Soviet Government makes no claims to gold captured by the Allied troops in Germany.
V. Disposition of the German Navy and merchant ships
The Conference agreed in principle upon arrangements for the use and disposal of the surrendered German Fleet and merchant ships. It was decided that the Three Governments would appoint experts to work out together detailed plans to give effect to the agreed principles. A further joint statement will be published simultaneously by the Three Governments in due course.
VI. City of Koenigsberg and the adjacent area
The Conference examined a proposal by the Soviet Government that pending the final determination of territorial questions at the peace settlement, the section of the western frontier of the Union of Soviet Socialist Republics which is adjacent to the Baltic Sea should pass from a point on the eastern shore of the Bay of Danzig to the east, north of Braunsberg-Goldep, to the meeting point of the frontiers of Lithuania, the Polish Republic and East Prussia.
The Conference has agreed in principle to the proposal of the Soviet Government concerning the ultimate transfer to the Soviet Union of the City of Koenigsberg and the area adjacent to it as described above subject to expert examination of the actual frontier.
The President of the United States and the British Prime Minister have declared that they will support the proposal of the Conference at the forthcoming peace settlement.
VII. War criminals
The Three Governments have taken note of the discussions which have been proceeding in recent weeks in London between British, United States, Soviet and French representatives with a view to reaching agreement on the methods of trial of those major war criminals whose crimes under the Moscow Declaration of October, 1943 have no particular geographical localisation. The Three Governments reaffirm their intention to bring those criminals to swift and sure justice. They hope that the negotiations in London will result in speedy agreement being reached for this purpose, and they regard it as a matter of great importance that the trial of those major criminals should begin at the earliest possible date. The first list of defendants will be published before September 1.
VIII. Austria
The Conference examined a proposal by the Soviet Government on the extension of the authority of the Austrian Provisional Government to all of Austria.
The three Governments agreed that they were prepared to examine this question after the entry of the British and American forces into the city of Vienna.
It was agreed that reparations should not be exacted from Austria.
IX. Poland
The Conference considered questions relating to the Polish Provisional Government and the western boundary of Poland.
The following statement on the Polish Provisional Government was approved:
We have taken note with pleasure of the agreement reached among representative Poles from Poland and abroad which has made possible the formation, in accordance with the decisions reached at the Crimea Conference, of a Polish Provisional Government of National Unity recognized by the Three Powers. The establishment by the British and United States Governments of diplomatic relations with the Polish Provisional Government has resulted in the withdrawal of their recognition from the former Polish Government in London, which no longer exists.
The British and United States Governments have taken measures to protect the interest of the Polish Provisional Government as the recognized government of the Polish State in the property belonging to the Polish State located in their territory and under their control, whatever the form of this property may be. They have further taken measures to prevent alienation to third parties of such property. All proper facilities will be given to the Polish Provisional Government for the exercise of the ordinary legal remedies for the recovery of any property belonging to the Polish State which may have been wrongfully alienated.
The three Powers are anxious to assist the Polish Provisional Government in facilitating the return to Poland as soon as practicable of all Poles abroad who wish to go, including members of the Polish Armed Forces and the Merchant Marine. They expect that those Poles who return home shall be accorded personal and property rights on the same basis as all Polish citizens.
The three Powers note that the Polish Provisional Government in accordance with the Crimea Conference has agreed to the holding of free and unfettered elections as soon as possible on the basis of universal suffrage and secret ballot in which all democratic and anti-Nazi parties shall have the right to take part and to put forward candidates, and that representatives of the Allied press shall enjoy full freedom to report to the world upon developments in Poland before and during the elections.
The following agreement was reached on the western boundary of Poland:
In conformity with the agreement on Poland reached at the Crimea Conference the three Heads of Government have sought the opinion of the Polish Provisional Government of National Unity in regard to the accession of territory in the north and west which Poland should receive. The President of the National Council of Poland and members of the Polish Provisional Government of National Unity have been received at the Conference and have fully presented their views. The three Heads of Government reaffirm their opinion that the final delimitation of the western frontier of Poland should await the peace settlement.
The three Heads of Government agree that, pending the final determination of Poland’s western frontier, the former German territories east of a line running from the Baltic Sea through Swinemunde, and thence along the Oder River to the confluence of the western Neisse River and along the western Neisse to the Czechoslovak frontier, including that portion of East Prussia not placed under the administration of the Union of Soviet Socialist Republics in accordance with the understanding reached at this conference and including the area of the former free city of Danzig, shall be under the administration of the Polish State and for such purposes should not be considered as part of the Soviet zone of occupation in Germany.
X. Conclusion of peace treaties and admission to the United Nations
In view of the victorious end of the war in Europe and the necessity of establishing as soon as possible the conditions of lasting peace, the Conference agreed upon the following statement of common policy:
The Three Governments consider it desirable that the present anomalous position of Italy, Bulgaria, Finland, Hungary and Rumania should be terminated by the conclusion of Peace Treaties, so that as soon as possible thereafter relations between them and the ex-enemy States can, where necessary, be reestablished on a normal footing. They trust that the other interested Allied Governments will share these views.
For their part the Three Governments have included the preparation of a Peace Treaty with Italy as the first among the immediate important tasks to be undertaken by the new Council of Foreign Ministers. Italy was the first of the Axis Powers to break with Germany, to whose defeat she has made a material contribution, and has now joined with the Allies in the struggle against Japan. Italy has freed herself from the Fascist regime and is making good progress towards the reestablishment of a democratic government and institutions. The conclusion of such a Peace Treaty with a recognized and democratic Italian Government will make it possible for the Three Governments to fulfil their desire to support an application from Italy for membership of the United Nations.
The Three Governments have also charged the Council of Foriegn Ministers with the task of preparing Peace Treaties for Bulgaria, Finland, Hungary and Rumania. The conclusion of Peace Treaties with recognized democratic Governments in these States will also enable the three Governments to support applications from them for membership of the United Nations. The three Governments agree to examine each separately in the near future, in the light of the conditions then prevailing, the establishment of diplomatic relations with Finland, Rumania, Bulgaria, and Hungary to the extent possible prior to the conclusion of peace treaties with those countries.
The three Governments have no doubt that in view of the changed conditions resulting from the termination of the war in Europe, representatives of the Allied press will enjoy full freedom to report to the world upon developments in Rumania, Bulgaria, Hungary and Finland.
As regards the admission of other states into the United Nations Organization, Article 4 of the Charter of the United Nations declared that:
Membership in the United Nations is open to all other peace-loving States who accept the obligations contained in the present Charter and, in the judgment of the organization, are able and willing to carry out these obligations;
the admission of any such State to membership in the United Nations will be effected by a decision of the General Assembly upon the recommendation of the Security Council.
The Three Governments, so far as they are concerned, will support applications for membership from these states which have remained neutral during the war and which fulfil the qualifications set out above.
The Three Governments feel bound however to make it clear that they for their part would not favor any application for membership put forward by the present Spanish Government, which, having been founded with the support of the Axis Powers, does not, in view of its origins, its nature, its record and its close association with the aggressor States, possess the qualifications necessary to justify such membership.
XI. Trusteeship territories
The Conference examined a proposal by the Soviet Government concerning trusteeship territories as defined in the decision of the Crimea Conference and in the Charter of the United Nations Organization.
After an exchange of views on this question it was decided that the disposition of any former Italian territories was one to be decided in connection with the preparation of a peace treaty with Italy and that the question of Italian territory would be considered by the September Council of Ministers of Foreign Affairs.
XII. Revised Allied Control Commission procedure in Rumania, Bulgaria, and Hungary
The Three Governments have taken note that the Soviet Representatives on the Allied Control Commissions in Rumania, Bulgaria and Hungary, have communicated to their United Kingdom and United States colleagues proposals for improving the work of the Control Commission, now that hostilities in Europe have ceased.
The Three Governments agree that the revision of the procedures of the Allied Control Commissions in these countries will now be undertaken, taking into account the interests and responsibilities of the Three Governments which together presented the terms of armistice to the respective countries, and accepting as a basis, in respect of all three countries, the Soviet Government’s proposals for Hungary.
XIII. (Orderly) Transfers of German populations
The Conference reached the following agreement on the removal of Germans from Poland, Czechoslovakia and Hungary:
The Three Governments, having considered the question in all its aspects, recognize that the transfer of German populations, or elements thereof, remaining in Poland, Czechoslovakia and Hungary, will have to be undertaken. They agree that any transfers that take place should be effected in an orderly and humane manner.
Since the influx of a large number of Germans into Germany would increase the burden already resting on the occupying authorities, they consider that the Allied Control Council in Germany should in the first instance examine the problem with special regard to the question of the equitable distribution of these Germans among the several zones of occupation. They are accordingly instructing their respective representatives on the Control Council to report to their Governments as soon as possible the extent to which such persons have already entered Germany from Poland, Czechoslovakia and Hungary, and to submit an estimate of the time and rate at which further transfers could be carried out, having regard to the present situation in Germany.
The Czechoslovak Government, the Polish Provisional Government and the Control Council in Hungary are at the same time being informed of the above, and are being requested meanwhile to suspend further expulsions pending the examination by the Governments concerned of the report from their representatives on the Control Council.
XIV. Bilateral commissions to investigate the removal of oil equipment from Rumania
The Conference agreed to set up two bilateral commissions of experts, one to be composed of United Kingdom and Soviet Members, and one to be composed of United States and Soviet members, to investigate the facts and examine the documents, as a basis for the settlement of questions arising from the removal of oil equipment from Rumania. It was further agreed that these experts shall begin their work within ten days, on the spot.
XV. Iran
The Conference has decided that Allied troops should be withdrawn immediately from Tehran, and that further stages of the withdrawal of troops from Iran should be considered at the meeting of the Council of Foreign Ministers to be held in London in September 1945.
XVI. The International Zone of Tangier
A proposal by the Soviet Government was examined and the following decisions were reached.
Having examined the question of the Zone of Tangier, the three Governments have agreed that this Zone, which includes the city of Tangier and the area adjacent to it, in view of its special strategic importance shall remain international.
The question of Tangier will be discussed in the near future at a meeting in Paris of representatives of the Governments of the Union of Soviet Socialist Republics, the United States of America, the United Kingdom, and France.
XVII. Military talks
During the Conference there were meetings between the chiefs of Staff of the three Governments on military matters of common interest (affecting Europe).
XVIII. List of delegations
For the United States
• The President
• The Secretary of State, James F. Byrnes
• Fleet Admiral William D. Leahy, USN, Chief of Statt to the President
• Joseph E. Davies, Special Ambassador
• Edwin Pauley, Special Ambassador
• W. Averell Harriman[,] Ambassador to the USSR
• General of the Army, George C. Marshall, Chief of Staff, United States Army
• Fleet Admiral, Ernest J. King, USN, Chief of Naval Operations and Commander in Chief, U.S. Fleet
• General of the Army, H. H. Arnold, U.S. Army Air Forces
• Lieutenant General Brehon B. Somervell, Commanding General, Army Service Forces
• Vice Admiral Emory S. Land, War Shipping Administrator
• William L. Clayton[,] Assistant Secretary of State
• James C. Dunn[,] Assistant Secretary of State
• Ben Cohen, Special Assistant to the Secretary of State
• H. Freeman Matthews, Director of European Affairs, State Department
• Charles E. Bohlen[,] Assistant to the Secretary,
• (together with political, military and technical advisers).