Date: August 1, 1945 Authors: Governments of the United States, , China, and United Kingdom Genre: government document

Summary Overview Shortly after surrendered to the Allies on May soon come to a close now that the Allies were gain- 8, 1945, US president Harry S. Truman, British prime ing momentum. On May 7, with Adolf Hitler dead and minister Winston Churchill, and Soviet premier Joseph his Nazi regime disintegrated, German offi cials signed Stalin met at the to complete an the instrument of surrender at Reims in northwestern agreement on the treatment of postwar Germany. The France, and the terms of the surrender came into effect leaders agreed to completely dismantle the Nazi Party on the following day. The groundwork laid at the Yalta (the National Socialist Party) and Germany’s military Conference now required rapid and comprehensive de- in order to prevent that country’s potential for remili- velopment. tarization. Furthermore, the Potsdam participants es- At this point, however, the complexion of the Big tablished an agreement, in principle, for the division Three had changed as well as the political conditions of Germany and the reestablishment of previously con- in which they met. In March, Soviet troops fi nally ex- quered European, Middle Eastern, and North African pelled German forces from Poland, leaving the Soviet nations, as well as a plan of action for dealing with Ja- Union with a sizable spoil before the war was offi cially pan once it was defeated. over. On April 12, Roosevelt suffered stroke and died, and his vice president, Harry S. Truman, assumed the Defi ning Moment presidency. Meanwhile, Churchill, who was an integral By the spring of 1945, fi ghting in the European the- leader in the wartime coalition, had been replaced in ater (which included portions of North Africa and the the 1945 election by Labour Party leader Clement At- Middle East) came to an end with the unconditional tlee. Finally, Truman was preparing to end the war in surrender of . Approximately thirty-nine the Pacifi c theater by dropping the fi rst atomic bomb million soldiers and civilians died in this theater alone, on Japan. while fi ghting, destruction, and casualties continued in When Truman, Attlee, Churchill (who attended the the Pacifi c theater. The confl ict left the entire region in conference for a week before being replaced by Attlee), a state of near chaos. Toppled governments left lead- and Stalin convened at Potsdam, theirs was a monu- ership vacuums, and long-standing borders had been mental and highly complex task. The principal item erased. National economies had collapsed. Millions of on their agenda was a discussion of how to treat the displaced civilians, escaping the battlefi eld as well as defeated Germans, including the complete dismantle- Nazi persecution, sought new places in which to reside ment of the Nazi regime and military in such a way that when hostilities came to an end. prevented future incarnations of Nazi-style national- Having gained an advantage against the Axis in Eu- ism. Also pressing was the resettlement of millions of rope by early 1945, the “ Big Three”—US president refugees, who had scattered across the globe in search Franklin D. Roosevelt, Stalin, and Churchill—had met of refuge from war and persecution. Furthermore, after in February at the Crimean resort town of Yalta to dis- the Axis forces invaded and annexed sovereign nations, cuss how to rebuild after the war and how to treat the there remained a question of how to redraw the borders vanquished enemy. To be sure, war continued in Japan, of Europe’s nations. but the three leaders anticipated that that war would

3 4 • POSTWAR

HISTORICAL DOCUMENT

Protocol of the Proceedings, August l, 1945 Italy. Other Members will be invited to participate when The Conference of the Three Heads of Gov- matters directly concerning them are under discussion. ernment of the U.S.S.R., U.S.A., and U.K., which took “(iii) Other matters may from time to time be referred place from July 17 to August 2, 1945, came to the follow- to the Council by agreement between the Member Gov- ing conclusions: ernments. “(4) (i) Whenever the Council is considering a ques- I. ESTABLISHMENT OF A COUNCIL OF FOR- tion of direct interest to a State not represented thereon, EIGN MINISTERS. such State should be invited to send representatives to A. The Conference reached the following agreement participate in the discussion and study of that question. for the establishment of a Council of Foreign Ministers “(ii) The Council may adapt its procedure to the par- to do the necessary preparatory work for the peace settle- ticular problems under consideration. In some cases it ments: may hold its own preliminary discussions prior to the “(1) There shall be established a Council composed participation of other interested States. In other cases, of the Foreign Ministers of the United Kingdom, the the Council may convoke a formal conference of the Union of Soviet Socialist Republics, China, France, and State chiefl y interested in seeking a solution of the par- the United States. ticular problem.” “(2) (i) The Council shall normally meet in London B. It was agreed that the three Governments should which shall be the permanent seat of the joint Secre- each address an identical invitation to the Governments tariat which the Council will form. Each of the Foreign of China and France to adopt this text and to join in Ministers will be accompanied by a high-ranking Dep- establishing the Council. The text of the approved invita- uty, duly authorized to carry on the work of the Council tion was as follows: in the absence of his Foreign Ministers, and by a small Council of Foreign Ministers Draft for identical invi- staff of technical advisers. tation to be sent separately by each of the Three Govern- “ (ii) The fi rst meeting of the Council shall be held ments to the Governments of China and France. in London not later than September 1st 1945. Meetings “The Governments of the United Kingdom, the may be held by common agreement in other capitals as United States and the U.S.S.R. consider it necessary to may be agreed from time to time. begin without delay the essential preparatory work upon “ (3) (i) As its immediate important task, the Coun- the peace settlements in Europe. To this end they are cil shall be authorized to draw up, with a view to their agreed that there should be established a Council of the submission to the , treaties of peace with Foreign Ministers of the Five Great Powers to prepare Italy, Rumania, Bulgaria, Hungary and Finland, and to treaties of peace with the European enemy States, for propose settlements of territorial questions outstanding submission to the United Nations. The Council would on the termination of the war in Europe. The Council also be empowered to propose settlements of outstand- shall be utilized for the preparation of a peace settlement ing territorial questions in Europe and to consider such for Germany to be accepted by the Government of Ger- other matters as member Governments might agree to many when a government adequate for the purpose is refer to it. established. “The text adopted by the Three Governments is as “(ii) For the discharge of each of these tasks the follows: Council will be composed of the Members representing “In agreement with the Governments of the United those States which were signatory to the terms of surren- States and U.S.S.R., His Majesty’s Government in the der imposed upon the enemy State concerned. For the United Kingdom and U.S.S.R., the United States Gov- purposes of the peace settlement for Italy, France shall ernment, the United Kingdom and the Soviet Govern- be regarded as a signatory to the terms of surrender for ment extend a cordial invitation to the Government of Potsdam Agreement • 5

China (France) to adopt the text quoted above and to 2. So far as is practicable, there shall be uniformity join in setting up the Council. His Majesty’s Govern- of treatment of the German population throughout Ger- ment, The United States Government, The Soviet Gov- many. ernment attach much importance to the participation of 3. The purposes of the occupation of Germany by the Chinese Government (French Government) in the which the Control Council shall be guided are: proposed arrangements and they hope to receive an early (i) The complete disarmament and demilitarization of and favorable reply to this invitation.” Germany and the elimination or control of all German C. It was understood that the establishment of the industry that could be used for military production. To Council of Foreign Ministers for the specifi c purposes these ends:— named in the text would be without prejudice to the (a) All German land, naval and air forces, the SS., agreement of the Crimea Conference that there should SA., SD., and Gestapo, with all their organizations, staffs be periodical consultation between the Foreign Secretar- and institutions, including the General Staff, the Offi - ies of the United States, the Union of Soviet Socialist cers’ Corps, Reserve Corps, military schools, war veter- Republics and the United Kingdom. ans’ organizations and all other military and semi-military D. The Conference also considered the position of organizations, together with all clubs and associations the European Advisory Commission in the light of the which serve to keep alive the military tradition in Ger- Agreement to establish the Council of Foreign Minis- many, shall be completely and fi nally abolished in such ters. It was noted with satisfaction that the Commission manner as permanently to prevent the revival or reorga- had ably discharged its principal tasks by the recommen- nization of German militarism and Nazism; dations that it had furnished for the terms of surrender (b) All arms, ammunition and implements of war and for Germany, for the zones of occupation in Germany all specialized facilities for their production shall be held and and for the inter-Allied control machinery in at the disposal of the Allies or destroyed. The mainte- those countries. It was felt that further work of a detailed nance and production of all aircraft and all arms. ammu- character for the coordination of Allied policy for the nition and implements of war shall be prevented. control of Germany and Austria would in future fall (ii) To convince the German people that they have within the competence of the Control Council at Berlin suffered a total military defeat and that they cannot and the Allied Commission at . Accordingly it was escape responsibility for what they have brought upon agreed to recommend that the European Advisory Com- themselves, since their own ruthless warfare and the mission be dissolved. fanatical Nazi resistance have destroyed German econ- omy and made chaos and suffering inevitable. II. THE PRINCIPLES TO GOVERN THE TREAT- (iii) To destroy the National Socialist Party and its MENT OF GERMANY IN THE INITIAL CONTROL affi liated and supervised organizations, to dissolve all PERIOD Nazi institutions, to ensure that they are not revived in A. POLITICAL PRINCIPLES. any form, and to prevent all Nazi and militarist activity 1. In accordance with the Agreement on Control or propaganda. Machinery in Germany, supreme authority in Germany (iv) To prepare for the eventual reconstruction of Ger- is exercised, on instructions from their respective Gov- man political life on a democratic basis and for eventual ernments, by the Commanders-in-Chief of the armed peaceful cooperation in international life by Germany. forces of the United States of America, the United King- 4. All Nazi laws which provided the basis of the Hitler dom, the Union of Soviet Socialist Republics, and the regime or established discriminations on grounds of race, French Republic, each in his own zone of occupation, creed, or political opinion shall be abolished. No such and also jointly, in matters affecting Germany as a whole, discriminations, whether legal, administrative or other- in their capacity as members of the Control Council. wise, shall be tolerated. 5. War criminals and those who have participated in planning or carrying out Nazi enterprises involving or 6 • POSTWAR COLD WAR

resulting in atrocities or war crimes shall be arrested and 10. Subject to the necessity for maintaining military brought to judgment. Nazi leaders, infl uential Nazi sup- security, freedom of speech, press and religion shall be porters and high offi cials of Nazi organizations and insti- permitted, and religious institutions shall be respected. tutions and any other persons dangerous to the occupa- Subject likewise to the maintenance of military security, tion or its objectives shall be arrested and interned. the formation of free trade unions shall be permitted. 6. All members of the Nazi Party who have been B. ECONOMIC PRINCIPLES. more than nominal participants in its activities and all 11. In order to eliminate Germany’s war potential, other persons hostile to Allied purposes shall be removed the production of arms, ammunition and implements of from public and semi-public offi ce, and from positions war as well as all types of aircraft and sea-going ships of responsibility in important private undertakings. Such shall be prohibited and prevented. Production of metals, persons shall be replaced by persons who, by their politi- chemicals, machinery and other items that are directly cal and moral qualities, are deemed capable of assisting necessary to a war economy shall be rigidly controlled in developing genuine democratic institutions in Ger- and restricted to Germany’s approved post-war peace- many. time needs to meet the objectives stated in Paragraph 15. 7. German education shall be so controlled as com- Productive capacity not needed for permitted production pletely to eliminate Nazi and militarist doctrines and to shall be removed in accordance with the reparations plan make possible the successful development of democratic recommended by the Allied Commission on Reparations ideas. and approved by the Governments concerned or if not 8. The judicial system will be reorganized in accor- removed shall be destroyed. dance with the principles of democracy, of justice under 12. At the earliest practicable date, the German econ- law, and of equal rights for all citizens without distinction omy shall be decentralized for the purpose of eliminating of race, nationality or religion. the present excessive concentration of economic power 9. The administration in Germany should be directed as exemplifi ed in particular by cartels, syndicates, trusts towards the decentralization of the political structure and other monopolistic arrangements. and the development of local responsibility. To this end: 13. In organizing the German Economy, primary (i) local self-government shall be restored through- emphasis shall be given to the development of agricul- out Germany on democratic principles and in particular ture and peaceful domestic industries. through elective councils as rapidly as is consistent with 14. During the period of occupation Germany shall military security and the purposes of military occupation; be treated as a single economic unit. To this end com- (ii) all democratic political parties with rights of mon policies shall be established in regard to: assembly and of public discussion shall be allowed and (a) mining and industrial production and its alloca- encouraged throughout Germany; tion; (iii) representative and elective principles shall be (b) agriculture, forestry and fi shing; introduced into regional, provincial and state (Land) (c) wages, prices and rationing; administration as rapidly as may be justifi ed by the suc- (d) import and export programs for Germany as a cessful application of these principles in local self-gov- whole; ernment; (e) currency and banking, central taxation and cus- (iv) for the time being, no central German Govern- toms; ment shall be established. Notwithstanding this, how- (f) reparation and removal of industrial war potential; ever, certain essential central German administrative (g) transportation and communications. departments, headed by State Secretaries, shall be In applying these policies account shall be taken, established, particularly in the fi elds of fi nance, trans- where appropriate, of varying local conditions. port, communications, foreign trade and industry. Such 15. Allied controls shall be imposed upon the Ger- departments will act under the direction of the Control man economy but only to the extent necessary: Council. (a) to carry out programs of industrial disarmament, Potsdam Agreement • 7

demilitarization, of reparations, and of approved exports 19. Payment of Reparations should leave enough and imports. resources to enable the German people to subsist with- (b) to assure the production and maintenance of out external assistance. In working out the economic bal- goods and services required to meet the needs of the ance of Germany the necessary means must be provided occupying forces and displaced persons in Germany and to pay for imports approved by the Control Council in essential to maintain in Germany average living stan- Germany. The proceeds of exports from current produc- dards not exceeding the average of the standards of living tion and stocks shall be available in the fi rst place for of European countries. (European countries means all payment for such imports. European countries excluding the United Kingdom and The above clause will not apply to the equipment and the U.S.S.R.). products referred to in paragraphs 4 (a) and 4 (b) of the (c) to ensure in the manner determined by the Con- Reparations Agreement. trol Council the equitable distribution of essential com- modities between the several zones so as to produce a III. REPARATIONS FROM GERMANY. balanced economy throughout Germany and reduce the 1. Reparation claims of the U.S.S.R. shall be met need for imports. by removals from the zone of Germany occupied by the (d) to control German industry and all economic and U.S.S.R., and from appropriate German external assets. fi nancial international transactions including exports 2. The U.S.S.R. undertakes to settle the reparation and imports, with the aim of preventing Germany from claims of Poland from its own share of reparations. developing a war potential and of achieving the other 3. The reparation claims of the United States, the objectives named herein. United Kingdom and other countries entitled to repa- (e) to control all German public or private scientifi c rations shall be met from the Western Zones and from bodies research and experimental institutions, laborato- appropriate German external assets. ries, et cetera connected with economic activities. 4. In addition to the reparations to be taken by the 16. In the imposition and maintenance of economic U.S.S.R. from its own zone of occupation, the U.S.S.R. controls established by the Control Council, German shall receive additionally from the Western Zones: administrative machinery shall be created and the Ger- (a) 15 per cent of such usable and complete industrial man authorities shall be required to the fullest extent capital equipment, in the fi rst place from the metallur- practicable to proclaim and assume administration of gical, chemical and machine manufacturing industries such controls. Thus it should be brought home to the as is unnecessary for the German peace economy and German people that the responsibility for the admin- should be removed from the Western Zones of Germany, istration of such controls and any break-down in these in exchange for an equivalent value of food, coal, pot- controls will rest with themselves. Any German controls ash, zinc, timber, clay products, petroleum products, and which may run counter to the objectives of occupation such other commodities as may be agreed upon. will be prohibited. (b) 10 per cent of such industrial capital equipment 17. Measures shall be promptly taken: as is unnecessary for the German peace economy and (a) to effect essential repair of transport; should be removed from the Western Zones, to be trans- (b) to enlarge coal production; ferred to the Soviet Government on reparations account (c) to maximize agricultural output; and without payment or exchange of any kind in return. (d) to erect emergency repair of housing and essential Removals of equipment as provided in (a) and (b) utilities. above shall be made simultaneously. 18. Appropriate steps shall be taken by the Control 5. The amount of equipment to be removed from the Council to exercise control and the power of disposition Western Zones on account of reparations must be deter- over German-owned external assets not already under mined within six months from now at the latest. the control of United Nations which have taken part in 6. Removals of industrial capital equipment shall the war against Germany. begin as soon as possible and shall be completed within 8 • POSTWAR COLD WAR

two years from the determination specifi ed in para- nical commission appointed by the Three Powers and graph 5. The delivery of products covered by 4 (a) above referred to below, subject to the principle that their com- shall begin as soon as possible and shall be made by pletion or repair must be achieved within the time limits the U.S.S.R. in agreed installments within fi ve years of above provided, without any increase of skilled employ- the date hereof. The determination of the amount and ment in the German shipyards and without permitting character of the industrial capital equipment unneces- the reopening of any German ship building or connected sary for the German peace economy and therefore avail- industries. Completion date means the date when a ship able for reparation shall be made by the Control Council is able to go out on its fi rst trip, or, under peacetime stan- under policies fi xed by the Allied Commission on Repa- dards, would refer to the customary date of delivery by rations, with the participation of France, subject to the shipyard to the Government. fi nal approval of the Zone Commander in the Zone from (3) The larger part of the German submarine fl eet which the equipment is to be removed. shall be sunk. Not more than thirty submarines shall 7. Prior to the fi xing of the total amount of equipment be preserved and divided equally between the U.S.S.R., subject to removal, advance deliveries shall be made in U.K., and U.S.A. for experimental and technical pur- respect to such equipment as will be determined to be poses. eligible for delivery in accordance with the procedure set (4) All stocks of armament, ammunition and supplies forth in the last sentence of paragraph 6. of the German Navy appertaining to the vessels trans- 8. The Soviet Government renounces all claims in ferred pursuant to paragraphs (1) and (3) hereof shall respect of reparations to shares of German enterprises be handed over to the respective powers receiving such which are located in the Western Zones of Germany as ships. well as to German foreign assets in all countries except (5) The Three Governments agree to constitute a those specifi ed in paragraph 9 below. tripartite naval commission comprising two representa- 9. The Governments of the U.K. and U.S.A. renounce tives for each government, accompanied by the requisite all claims in respect of reparations to shares of German staff, to submit agreed recommendations to the Three enterprises which are located in the Eastern Zone of Governments for the allocation of specifi c German war- occupation in Germany, as well as to German foreign ships and to handle other detailed matters arising out of assets in Bulgaria, Finland, Hungary, Rumania and East- the agreement between the Three Governments regard- ern Austria. ing the German fl eet. The Commission will hold its fi rst 10. The Soviet Government makes no claims to gold meeting not later than 15th August, 1945, in Berlin, captured by the Allied troops in Germany. which shall be its headquarters. Each Delegation on the Commission will have the right on the basis of reciproc- IV. DISPOSAL OF THE GERMAN NAVY AND MER- ity to inspect German warships wherever they may be CHANT MARINE located. A. The following principles for the distribution of the (6) The Three Governments agreed that transfers, German Navy were agreed: including those of ships under construction and repair, (1) The total strength of the German surface navy, shall be completed as soon as possible, but not later than excluding ships sunk and those taken over from Allied 15th February, 1946. The Commission will submit fort- Nations, but including ships under construction or nightly reports, including proposals for the progressive repair, shall be divided equally among the U.S.S.R., allocation of the vessels when agreed by the Commis- U.K., and U.S.A. sion. (2) Ships under construction or repair mean those B. The following principles for the distribution of the ships whose construction or repair may be completed German Merchant Marine were agreed:— within three to six months, according to the type of ship. (1) The German Merchant Marine, surrendered to Whether such ships under construction or repair shall be the Three Powers and wherever located, shall be divided completed or repaired shall be determined by the tech- equally among the U.S.S.R., the U.K., and the U.S.A. Potsdam Agreement • 9

The actual transfers of the ships to the respective coun- of Danzig to the east, north of Braunsberg-Goldap, to the tries shall take place as soon as practicable after the end meeting point of the frontiers of Lithuania, the Polish of the war against Japan. The United Kingdom and the Republic and East Prussia. United States will provide out of their shares of the sur- The Conference has agreed in principle to the pro- rendered German merchant ships appropriate amounts posal of the Soviet Government concerning the ultimate for other Allied States whose merchant marines have transfer to the Soviet Union of the City of Koenigsberg suffered heavy losses in the common cause against Ger- and the area adjacent to it as described above subject to many, except that the Soviet Union shall provide out of expert examination of the actual frontier. its share for Poland. The President of the United States and the British (2) The allocation, manning, and operation of these Prime Minister have declared that they will support the ships during the Japanese War period shall fall under proposal of the Conference at the forthcoming peace the cognizance and authority of the Combined Shipping settlement. Adjustment Board and the United Maritime Authority. (3) While actual transfer of the ships shall be delayed VI. WAR CRIMINALS. until after the end of the war with Japan, a Tripartite The Three Governments have taken note of the dis- Shipping Commission shall inventory and value all avail- cussions which have been proceeding in recent weeks able ships and recommend a specifi c distribution in in London between British, United States, Soviet and accordance with paragraph (1). French representatives with a view to reaching agree- (4) German inland and coastal ships determined to be ment on the methods of trial of those major war crimi- necessary to the maintenance of the basic German peace nals whose crimes under the Moscow Declaration of economy by the of Germany shall October, 1943 have no particular geographical localiza- not be included in the shipping pool thus divided among tion. The Three Governments reaffi rm their intention to the Three Powers. bring these criminals to swift and sure justice. They hope (5) The Three Governments agree to constitute a that the negotiations in London will result in speedy tripartite merchant marine commission comprising two agreement being reached for this purpose, and they representatives for each Government, accompanied by regard it as a matter of great importance that the trial of the requisite staff, to submit agreed recommendations these major criminals should begin at the earliest pos- to the Three Governments for the allocation of specifi c sible date. The fi rst list of defendants will be published German merchant ships and to handle other detailed before 1st September. matters arising out of the agreement between the Three Governments regarding the German merchant ships. VII. AUSTRIA. The Commission will hold its fi rst meeting not later than The Conference examined a proposal by the Soviet September 1st, 1945, in Berlin, which shall be its head- Government on the extension of the authority of the quarters. Each delegation on the Commission will have Austrian Provisional Government to all of Austria. the right on the basis of reciprocity to inspect the Ger- The three governments agreed that they were pre- man merchant ships wherever they may be located. pared to examine this question after the entry of the Brit- ish and American forces into the city of Vienna. V. CITY 0F KOENIGSBERG AND THE ADJACENT It was agreed that reparations should not be exacted AREA. from Austria. The Conference examined a proposal by the Soviet Government to the effect that pending the fi nal deter- VIII. POLAND. mination of territorial questions at the peace settlement, A. DECLARATION. the section of the western frontier of the Union of Soviet We have taken note with pleasure of the agreement Socialist Republics which is adjacent to the Baltic Sea reached among representative Poles from Poland and should pass from a point on the eastern shore of the Bay abroad which has made possible the formation, in accor- 10 • POSTWAR COLD WAR

dance with the decisions reached at the Crimea Con- and members of the Polish Provisional Government of ference, of a Polish Provisional Government of National National Unity have been received at the Conference Unity recognized by the Three Powers. The establish- and have fully presented their views. The three Heads of ment by the British and United States Governments of Government reaffi rm their opinion that the fi nal delimi- diplomatic relations with the Polish Provisional Govern- tation of the western frontier of Poland should await the ment of National Unity has resulted in the withdrawal of peace settlement. their recognition from the former Polish Government in The three Heads of Government agree that, pend- London, which no longer exists. ing the fi nal determination of Poland’s western frontier, The British and United States Governments have the former German territories cast of a line running taken measures to protect the interest of the Polish Pro- from the Baltic Sea immediately west of Swinamunde, visional Government of National Unity as the recognized and thence along the Oder River to the confl uence of government of the Polish State in the property belonging the western Neisse River and along the Western Neisse to the Polish State located in their territories and under to the Czechoslovak frontier, including that portion their control, whatever the form of this property may be. of East Prussia not placed under the administration of They have further taken measures to prevent alienation the Union of Soviet Socialist Republics in accordance to third parties of such property. All proper facilities with the understanding reached at this conference and will be given to the Polish Provisional Government of including the area of the former free city of Danzig, shall National Unity for the exercise of the ordinary legal rem- be under the administration of the Polish State and for edies for the recovery of any property belonging to the such purposes should not be considered as part of the Polish State which may have been wrongfully alienated. Soviet zone of occupation in Germany. The Three Powers are anxious to assist the Polish Provisional Government of National Unity in facilitating IX. CONCLUSION on PEACE TREATIES AND the return to Poland as soon as practicable of all Poles ADMISSION TO THE UNITED NATIONS ORGA- abroad who wish to go, including members of the Polish NIZATION. Armed Forces and the Merchant Marine. They expect The three Governments consider it desirable that the that those Poles who return home shall be accorded per- present anomalous position of Italy, Bulgaria, Finland, sonal and property rights on the same basis as all Polish Hungary and Rumania should be terminated by the con- citizens clusion of Peace Treaties. They trust that the other inter- The Three Powers note that the Polish Provisional ested Allied Governments will share these views. Government of National Unity, in accordance with the For their part the three Governments have included decisions of the Crimea Conference, has agreed to the the preparation of a Peace Treaty for Italy as the fi rst holding of free and unfettered elections as soon as pos- among the immediate important tasks to be undertaken sible on the basis of universal suffrage and secret bal- by the new Council of Foreign Ministers. Italy was the lot in which all democratic and anti- Nazi parties shall fi rst of the to break with Germany, to whose have the right to take part and to put forward candidates, defeat she has made a material contribution, and has and that representatives of the Allied press shall enjoy now joined with the Allies in the struggle against Japan. full freedom to report to the world upon developments in Italy has freed herself from the Fascist regime and is Poland before and during the elections. making good progress towards reestablishment of a dem- B. WESTERN FRONTIER OF POLAND. ocratic government and institutions. The conclusion of In conformity with the agreement on Poland reached such a Peace Treaty with a recognized and democratic at the Crimea Conference the three Heads of Govern- Italian Government will make it possible for the three ment have sought the opinion of the Polish Provisional Governments to fulfi ll their desire to support an applica- Government of National Unity in regard to the accession tion from Italy for membership of the United Nations. of territory in the north and west which Poland should The three Governments have also charged the Coun- receive. The President of the National Council of Poland cil of Foreign Ministers with the task of preparing Peace Potsdam Agreement • 11

Treaties for Bulgaria, Finland, Hungary and Rumania. the Charter of the United Nations Organization. The conclusion of Peace Treaties with recognized demo- After an exchange of views on this question it was cratic governments in these States will also enable the decided that the disposition of any former Italian colonial three Governments to support applications from them territories was one to be decided in connection with the for membership of the United Nations. The three Gov- preparation of a peace treaty for Italy and that the ques- ernments agree to examine each separately in the near tion of Italian colonial territory would be considered by future in the light of the conditions then prevailing, the September Council of Ministers of Foreign Affairs. the establishment of diplomatic relations with Finland, Rumania, Bulgaria, and Hungary to the extent possible XI. REVISED ALLIED CONTROL COMMISSION prior to the conclusion of peace treaties with those coun- PROCEDURE IN RUMANIA, BULGARIA, AND tries. HUNGARY. The three Governments have no doubt that in view of The three Governments took note that the Soviet the changed conditions resulting from the termination of Representatives on the Allied Control Commissions in the war in Europe, representatives of the Allied press will Rumania, Bulgaria, and Hungary, have communicated enjoy full freedom to report to the world upon develop- to their United Kingdom and United States colleagues ments in Rumania, Bulgaria, Hungary and Finland. proposals for improving the work of the Control Com- As regards the admission of other States into the missions, now that hostilities in Europe have ceased. United Nations Organization, Article 4 of the Charter of The three Governments agreed that the revision of the United Nations declares that: the procedures of the Allied Control Commissions in 1. Membership in the United Nations is open to all these countries would now be undertaken, taking into other peace-loving States who accept the obligations account the interests and responsibilities of the three contained in the present Charter and, in the judgment Governments which together presented the terms of of the organization, are able and willing to carry out these armistice to the respective countries, and accepting obligations; as a basis, in respect of all three countries, the Soviet 2. The admission of any such State to membership Government’s proposals for Hungary as annexed hereto. in the United Nations will be effected by a decision of (Annex I) the General Assembly upon the recommendation of the Security Council. XII. ORDERLY TRANSFER OF GERMAN POPULA- The three Governments, so far as they are concerned, TIONS. will support applications for membership from those The Three Governments, having considered the States which have remained neutral during the war and question in all its aspects, recognize that the transfer to which fulfi ll the qualifi cations set out above. Germany of German populations, or elements thereof, The three Governments feel bound however to make remaining in Poland, Czechoslovakia and Hungary, will it clear that they for their part would not favour any appli- have to be undertaken. They agree that any transfers that cation for membership put forward by the present Span- take place should be effected in an orderly and humane ish Government, which, having been founded with the manner. support of the Axis Powers, does not, in view of its ori- Since the infl ux of a large number of Germans into gins, its nature, its record and its close association with Germany would increase the burden already resting on the aggressor States, possess the qualifi cations necessary the occupying authorities, they consider that the Control to justify such membership. Council in Germany should in the fi rst instance examine the problem, with special regard to the question of the X. TERRITORIAL TRUSTEESHIP. equitable distribution of these Germans among the sev- The Conference examined a proposal by the Soviet eral zones of occupation. They are accordingly instruct- Government on the question of trusteeship territories as ing their respective representatives on the Control Coun- defi ned in the decision of the Crimea Conference and in cil to report to their Governments as soon as possible 12 • POSTWAR COLD WAR

the extent to which such persons have already entered XVI. THE BLACK SEA STRAITS. Germany from Poland, Czechoslovakia and Hungary, to The Three Governments recognized that the Con- submit an estimate of the time and rate at which further vention concluded at Montreux should be revised as fail- transfers could be carried out having regard to the pres- ing to meet present-day conditions. ent situation in Germany. It was agreed that as the next step the matter should The Czechoslovak Government, the Polish Provi- be the subject of direct conversations between each of sional Government and the Control Council in Hun- the three Governments and the Turkish Government. gary are at the same time being informed of the above and are being requested meanwhile to suspend further XVII. INTERNATIONAL INLAND WATERWAYS. expulsions pending an examination by the Governments The Conference considered a proposal of the U.S. concerned of the report from their representatives on the Delegation on this subject and agreed to refer it for con- Control Council. sideration to the forthcoming meeting of the Council of Foreign Ministers in London. XIII. OIL EQUIPMENT IN RUMANIA. The Conference agreed to set up two bilateral com- XVIII. EUROPEAN INLAND TRANSPORT CON- missions of experts, one to be composed of United King- FERENCE. dom and Soviet Members and one to be composed of The British and U.S. Delegations to the Conference United States and Soviet Members, to investigate the informed the Soviet Delegation of the desire of the Brit- facts and examine the documents, as a basis for the ish and U.S. Governments to reconvene the European settlement of questions arising from the removal of oil Inland Transport Conference and stated that they would equipment in Rumania. It was further agreed that these welcome assurance that the Soviet Government would experts shall begin their work within ten days, on the participate in the work of the reconvened conference. spot. The Soviet Government agreed that it would participate in this conference. XIV. IRAN. It was agreed that Allied troops should be withdrawn XIX. DIRECTIVES TO MILITARY COMMANDERS immediately from Tehran, and that further stages of the ON ALLIED CONTROL COUNCIL FOR GER- withdrawal of troops from Iran should be considered at MANY. the meeting of the Council of Foreign Ministers to be The Three Governments agreed that each would send held in London in September, 1945. a directive to its representative on the Control Council for Germany informing him of all decisions of the Con- XV. THE INTERNATIONAL ZONE OF TANGIER. ference affecting matters within the scope of his duties. A proposal by the Soviet Government was examined and the following decisions were reached: XX. USE OF ALLIED PROPERTY FOR SATELLITE Having examined the question of the Zone of Tang- REPARATIONS OR WAR TROPHIES. ier, the three Governments have agreed that this Zone, The proposal (Annex II) presented by the United which includes the City of Tangier and the area adjacent States Delegation was accepted in principle by the Con- to it, in view of its special strategic importance, shall ference, but the drafting of an agreement on the matter remain international. was left to be worked out through diplomatic channels. The question of Tangier will be discussed in the near future at a meeting in Paris of representatives of the Gov- XXI. MILITARY TALKS. ernments of the Union of Soviet Socialist Republics, During the Conference there were meetings between the United States of America, the United Kingdom and the Chiefs of Staff of the Three Governments on military France. matters of common interest. Potsdam Agreement • 13

ANNEX I the President of the ACC. TEXT OF A LETTER TRANSMITTED ON JULY 12 I consider it necessary to add to the above that in all TO THE REPRESENTATIVES OF THE U.S. AND other points the existing Statutes regarding the ACC in U.K. GOVERNMENTS ON THE ALLIED CON- Hungary, which was confi rmed on January 20, 1945, TROL COMMISSION IN HUNGARY. shall remain in force in the future. In view of the changed situation in connection with the termination of the war against Germany, the Soviet ANNEX II Government fi nds it necessary to establish the following USE OF ALLIED PROPERTY FOR SATELITE REPA- order of work for the Allied Control Commission [ACC] RATIONS OR WAR TROPHIES in Hungary. 1. The burden of reparation and “war trophies” should 1. During the period up to the conclusion of peace not fall on Allied nationals. with Hungary the President (or Vice-President) of the 2. Capital Equipment—We object to the removal ACC will regularly call conferences with the British and of such Allied property as reparations, “war trophies,” American representatives for the purpose of discussing or under any other guise. Loss would accrue to Allied the most important questions relating to the work of the nationals as a result of destruction of plants and the ACC. The conferences will be called once in 10 days, or consequent loss of markets and trading connections. more frequently in case of need. Seizure of Allied property makes impossible the fulfi ll- Directives of the ACC on questions or principle will ment by the satellite of its obligation under the armistice be issued to the Hungarian authorities by the President to restore intact the rights and interests of the Allied of the Allied Control Commission after agreement on Nations and their nationals. these directives with the English and American repre- The United States looks to the other occupying pow- sentatives. ers for the return of any equipment already removed and 2. The British and American representatives in the the cessation of removals. Where such equipment will ACC will take part in general conferences of heads of not or cannot be returned, the U.S. will demand of the divisions and delegates of the ACC, convoked by the satellite adequate, effective and prompt compensation to President of the ACC, which meetings will be regular American nationals, and that such compensation have in nature. The British and American representatives will priority equal to that of the reparations payment. also participate personally or through their representa- These principles apply to all property wholly or sub- tives in appropriate instances in mixed commissions stantially owned by Allied nationals. In the event of created by the President of the ACC for questions con- removals of property in which the American as well as nected with the execution by the ACC of its functions the entire Allied interest is less than substantial, the U.S. 3. Free movement by the American and British repre- expects adequate, effective, and prompt compensation. sentatives in the country will be permitted provided that 3. Current Production—While the U.S. does not the ACC is previously informed of the time and route of oppose reparation out of current production of Allied the journeys. investments, the satellite must provide immediate and 4. All questions connected with permission for the adequate compensation to the Allied nationals including entrance and exit of members of the staff of the Brit- suffi cient foreign exchange or products so that they can ish and American representatives in Hungary will be recover reasonable foreign currency expenditures and decided on the spot by the President of the ACC within transfer a reasonable return on their investment. Such a time limit of not more than one week. compensation must also have equal priority with repara- 5. The bringing in and sending out by plane of mail, tions. cargoes and diplomatic couriers will be carried out by the We deem it essential that the satellites not conclude British and American representatives on the ACC under treaties, agreements or arrangements which deny to arrangements and within time limits established by the Allied nationals access, on equal terms, to their trade, ACC, or in special cases by previous coordination with raw materials and industry; and appropriately- modify 14 • POSTWAR COLD WAR

any existing arrangements which may have that effect. driven from the world. (b) Proclamation Defi ning Terms for Japanese Sur- (7) Until such a new order is established and until render, July 26, 1945 there is convincing proof that Japan’s war-making power (1) We—The President of the United States, the is destroyed, points in Japanese territory to be designated President of the National Government of the Republic by the Allies shall be occupied to secure the achievement of China, and the Prime Minister of Great Britain, rep- of the basic objectives we are here setting forth. resenting the hundreds of millions of our countrymen, (8) The terms of the Cairo Declaration shall be car- have conferred and agree that Japan shall be given an ried out and Japanese shall be limited to the opportunity to end this war. islands of Honshu, Hokkaido, Kyushu, Shikoku and (2) The prodigious land, sea and air forces of the such minor islands as we determine. United States, the British Empire and of China, many (9) The Japanese military forces, after being com- times reinforced by their armies and air fl eets from the pletely disarmed, shall be permitted to return to their west, are poised to strike the fi nal blows upon Japan. homes with the opportunity to lead peaceful and produc- This military power is sustained and inspired by the tive lives. determination of all the Allied Nations to prosecute the (10) We do not intend that the Japanese shall be war against Japan until she ceases to resist. enslaved as a race or destroyed as a nation, but stern (3) The result of the futile and senseless German justice shall be meted out to all war criminals, includ- resistance to the might of the aroused free peoples of the ing those who have visited cruelties upon our prisoners. world stands forth in awful clarity as an example to the The Japanese Government shall remove all obstacles to people of Japan. The might that now converges on Japan the revival and strengthening of democratic tendencies is immeasurably greater than that which, when applied among the Japanese people. Freedom of speech, of reli- to the resisting Nazis, necessarily laid waste to the lands, gion, and of thought, as well as respect for the funda- the industry and the method of life of the whole Ger- mental human rights shall be established. man people. The full application of our military power, (11) Japan shall be permitted to maintain such indus- backed by our resolve, All mean the inevitable and com- tries as will sustain her economy and permit the exac- plete destruction of the Japanese armed forces and just tion of just reparations in kind, but not those [industries] as inevitably the utter devastation of the Japanese home- which would enable her to re-arm for war. To this end, land. access to, as distinguished from control of, raw materi- (4) The time has come for Japan to decide whether als shall be permitted. Eventual Japanese participation in she will continue to be controlled by those self-willed world trade relations shall be permitted. militaristic advisers whose unintelligent calculations (12) The occupying forces of the Allies shall be with- have brought the to the threshold of drawn from Japan as soon as these objectives have been annihilation, or whether she will follow the path of rea- accomplished and there has been established in accor- son. dance with the freely expressed will of the Japanese peo- (5) Following are our terms. We will not deviate from ple a peacefully inclined and responsible government. them. There are no alternatives. We shall brook no delay. (13) We call upon the government of Japan to pro- (6) There must be eliminated for all time the author- claim now the unconditional surrender of all Japanese ity and infl uence of those who have deceived and misled armed forces, and to provide proper and adequate assur- the people of Japan into embarking on world conquest, ances of their good faith in such action. The alternative for we insist that a new order of peace security and jus- for Japan is prompt and utter destruction. tice will be impossible until irresponsible militarism is

GLOSSARY

potash: potassium carbonate tripartite: divided into or consisting of three parts Potsdam Agreement • 15

Document Analysis be captured and placed on trial for their actions. On the After Germany formally surrendered in May 1945, economic side, the Potsdam Agreement outlines plans President Truman, Premier Stalin, and Prime Ministers for Germany’s main industries to be strictly regulated, Churchill and Attlee were able to build on the ground- with an emphasis placed on traditional, nonviolent ar- work that had been laid at Yalta when they convened at eas such as agriculture, fi shing, and forestry. Finally, the the Potsdam Conference in July. The main areas of fo- agreement establishes a system by which German repa- cus of the Potsdam Agreement are the establishment of rations should be paid to the Allies. a council that would resolve latent territorial and secu- In addition to the aforementioned issues surrounding rity issues from the war, addressing postwar Germany Germany and territories gained by the Allies, the Pots- and redrawing national borders (including establishing dam Agreement addresses the establishment of a Pol- areas of infl uence) that had been erased during the war. ish provisional government as well as the extension of The fi rst focal point the Potsdam Agreement ad- Poland’s borders to the Oder and Neisse Rivers, known dresses is the establishment of a Council of Foreign as the Oder-Neisse line. The Potsdam Agreement at- Ministers. This council is to be comprised of represen- tempts to compensate for Polish territorial losses in the tatives from the United States, the Soviet Union, and east to the Soviet Union, which had been agreed upon the United Kingdom, as well as China and France (nei- at the Yalta Conference, by extending the Polish bor- ther of which were represented at Potsdam and, there- ders westward into Germany. Poland had been invaded fore, required an invitation to join). This organization in September 1939 by Germany from the west and the is to meet periodically to address unresolved territo- Soviet Union from the east and remained a major post- rial disputes and formalize treaties with Italy, Bulgaria, war issue in terms of rebuilding that nation’s govern- Hungary, Romania, and Finland. The council will also ment. Questions also remained about Soviet-occupied serve as the successor to the European Advisory Com- territory and resettling the millions of Poles who had mission, which had already divided Germany into zones either fl ed or were deported from their homeland after occupied by the Allies; the Potsdam Agreement con- these invasions. The Potsdam Agreement asserts that cludes that the European Advisory Commission is to Poles returning to their home country “shall be accord- be summarily dissolved. The agreement also addresses ed personal and property rights on the same basis as all territories gained or liberated by the Allies during the Polish citizens.” war, including Soviet-acquired territories extending The agreement also establishes rules for the conduct westward to (and including) the easternmost German of the occupying powers. Those forces that destroyed city of Königsberg in the Baltic region. property or natural resources, as well as those who took One of the most pressing issues facing the Potsdam “war trophies,” while serving in occupied territories Conference was the question of Germany. The Pots- would be expected to account for and compensate the dam Agreement supports the Agreement on Control governments of those territories. Similarly, any war tro- of Machinery in Germany, which had been signed at phies regained by the Allies from defeated Axis forces the European Advisory Commission in July 1945, and should be returned. divides Germany into four separate zones of occupa- Finally, the Allies used Potsdam as a platform to offer tion, overseen by United States, the United Kingdom, Japan terms for its unconditional surrender. The Euro- the Soviet Union, and France. The agreement states pean victory, the leaders said, should send a message to that Germany’s military, economic, and political infra- the Japanese emperor that his own country’s defeat was structures be either fully dismantled or redirected in imminent. The Potsdam Agreement calls upon Japan to such a way that they prevented any future resurgence immediately disarm and return any illegally conquered of Nazi groups or other nationalistic, militaristic trends lands. Such a step would be toward international peace, in that country. The document lays plans for Germany’s the leaders advised; refusal to agree to the Allied terms military (including the navy and merchant marine, in of surrender, on the other hand, would result in Japan’s particular) to be completely dissolved, with weaponry “prompt and utter destruction.” destroyed, and for the Nazi Party to be fully abolished, with its members purged from government and re- Essential Themes placed with democratically-elected leaders. Further- The Potsdam Conference convened in the wake of the more, the agreement calls for German war criminals to surrender of Germany in the spring of 1945. The con- 16 • POSTWAR COLD WAR

ference’s main three participants—US president Tru- divide Germany into separate zones of occupation and man, Soviet premier Stalin, and British prime ministers for granting British and American recognition of Soviet Churchill and then Attlee—used the opportunity to control in Eastern Europe. For example, although the build on the foundation laid at the Yalta Conference Potsdam Agreement asserted that the Polish Provision- earlier in the year. With what the participants saw as an al Government of National Unity would hold “free and inevitable victory over Japan, the conferees set out to unfettered elections as soon as possible,” these elec- create a framework to dissolve German military forces tions were postponed and manipulated by Soviet and and Nazi organizations, to address latent security and Polish Communists. territorial issues, and to establish a plan to repatriate —Michael P. Auerbach, MA millions of wartime refugees. Central to addressing a wide range of wartime and Bibliography and Additional Reading postwar security and territorial issues was the Coun- Dobbs, Michael. Six Months in 1945: FDR, Stalin, cil of Foreign Ministers, which this agreement estab- Churchill, and Truman—From World War to Cold lished would be comprised of the United States, Soviet War. New York: Vintage, 2013. Print. Union, and United Kingdom, as well as France and Piotrowski, Tadeusz, ed. The Polish Deportees of World China. Other issues—such as the Baltic territories ac- War II: Recollections of Removal to the Soviet Union quired by the Soviet Union during the war and the Pol- and Dispersal throughout the World. Jefferson: Mc- ish question—were given signifi cant exposure at this Farland, 2004. Print. conference, although the Soviet Union’s established Plokhy, S. M. Yalta: The Price of Peace. New York: Vi- presence and clout in these regions largely rendered king, 2010. Print. such issues moot. Many historians point to the Yalta “The Potsdam Conference, 1945.” Offi ce of the Histo- and Potsdam Conferences as the groundwork for the rian. United States Dept. of State, n.d. Web. 7 Jan. subsequent Cold War, particularly for the decision to 2014.