Foreign Relations of the United States: Diplomatic Papers, The Conference of Berlin (The Potsdam Conference), 1945, Volume I

740.00119 Control (Germany)/6–3045

No. 177
The Secretary of State ad interim to the President ¹

top secret

[ Washington ,] June 30, 1945.

Memorandum for the President

Subject: Subjects for Discussion at the Meeting of the Three Heads of Government

Before your departure from Washington you requested that the State Department transmit to you as soon as possible a fully documented agenda for the forthcoming meeting in Germany. Since there is at the present moment no Secretary of State it has been impossible to obtain for the attached memorandum and documents the clearance I should have desired but, in view of your request and the shortness of the time remaining before the meeting, I thought it best to submit the material without delay. It represents of course the carefully considered recommendations of the Department of State. Copies are being sent to Justice Byrnes and Admiral Leahy.

The attached memorandum is divided into the following three parts:

I. The items which we recommend that the United States raise for discussion, together with supporting memoranda recommending the United States position on each of these matters.

II. The items which the British intend to raise for discussion not included under paragraph I above, together with supporting memoranda recommending the United States position on each of these matters.

III. Important additional items which are likely to be raised at the meeting.

[

Joseph C. Grew

]

[Attachment]²

top secret

Memorandum

i. proposed items for the agenda

The following is a list of matters which you may wish to bring up at the meeting, with a short statement of the action which we recommend. There are attached as Annexes memoranda briefly supporting our recommendations.

1. Procedure and Machinery for Peace Negotiations and Territorial Settlements (See Annex 1³)

It is recommended that the United States Government propose that there be no formal Peace Conference but that there be established a Council of the Foreign Ministers of U. S. S. R., Great Britain, China, France and the United States to deal with the problems of the peace in Europe.

2. Policy toward Germany (See Annex 2⁴)

A. Establishment of Control Council

It is recommended that this Government propose that the agreement on control machinery in Germany⁵ be implemented as soon as possible.

B. Agreement on the Treatment of Germany in the Initial Control Period

It is recommended that this Government present, for tripartite approval and later confirmation by the European Advisory Commission, a revised statement of policy on the treatment of Germany during the initial control period. The revised statement, which is included in Annex 2, is based on the U. S. memorandum approved by President Roosevelt on March 23⁶ and subsequent discussion of this memorandum in the European Advisory Commission.

C. Establishment of German Local Administrations

(a) It is recommended that this Government propose the restoration throughout Germany of local self-government through elective councils and proceed forthwith to put this proposal into effect in the United States zone.

(b) It is recommended that this Government propose the authorization for the whole of Germany of non-Nazi political parties with rights of assembly and of public discussion and proceed forthwith to put this proposal into effect in the United States zone.

(c) It is recommended that this Government propose the introduction of the representative and elective principles into regional, provincial, and state (Land) administration as rapidly as results of local self-government seem to warrant this further step.

D. Treatment of Germany as an Economic Unit

It is recommended that the [this] Government propose that uniform economic policies be adopted in all occupation zones in Germany, and to that end agreement should be reached in respect to the following matters:

(a) Uniform ration scales and allocations.

(b) Equitable distribution and unrestricted interzonal movement of essential goods and services.

(c) Uniform policies for industry and agriculture.

(d) Unified control of German exports and imports.

(e) Centralized issuance and control of currency.

(f) Arrangements for financing of an approved minimum of imports required for all of Germany.

(g) Adoption of a centralized transportation system under the Control Council.

(h) Agreement on immediate exports for purposes of relief and rehabilitation of countries devastated by Germany, prior to reparations settlement.

A concrete program embodying these points, for presentation to the British and Soviets at the meeting, is included in Annex 2.

3.⁷ Unconditional Surrender of Japan and Policy toward Liberated Areas in the Far East (See Annex 3⁸)

It is recommended that this Government propose:

(a) That the principal United Nations at war with Japan issue a joint statement outlining the program for the treatment of a defeated Japan in the hope that Japan will be more inclined to accept unconditional surrender if the Japanese people know what their future is to be;

(b) That the Soviet Government be invited to announce at an appropriate time its adherence to the Cairo Declaration⁹ and that there be agreement among the Three Powers that there shall be advance consultation among themselves and with China on all matters relating to the implementation of the territorial dispositions provided under that Declaration;

(c) That in relation to the areas restored to China, as in relation to China as a whole, the Three Powers agree that they will be governed by the principles set forth in the Nine Power Treaty of Washington of 1922¹⁰ in relation to China, committing the signatories to respect the independence and territorial integrity of China, to provide the fullest opportunity to China to develop and maintain a stable government, to safeguard the principle of equal commercial opportunity for all nations in China, and to refrain from seeking special rights and privileges in China.

4. Implementation of the Yalta Declaration on Liberated Europe ¹¹ in the Treatment of Rumania, Bulgaria, Hungary and Greece (See Annexes 4 and 5¹²)

It is recommended:

(a) in regard to Rumania, Bulgaria and Hungary

(1) That the three Allied Governments agree in principle to the reorganization of the present governments in Rumania and Bulgaria, and, should it become necessary, in Hungary, and to the postponement of diplomatic recognition and the conclusion of peace treaties with those countries until such reorganization has taken place.

(2) That provision be made for tripartite consultation (later to include French representatives) to work out any procedures which may be necessary for the reorganization of the governments to include representatives of all significant democratic elements, with a view to the early holding of free and unfettered elections.

(3) That the three Allied Governments consider how best to assist the local governments in the holding of such elections, bearing in mind that while it may be preferable to have the actual conduct of elections in the hands of the local governments themselves rather than in those of Allied representatives, there must be adequate assurances that all democratic elements will have the opportunity to present candidates and that the voting will be in fact free.

(b) in regard to Greece

That, pursuant to a joint Anglo–U.S. approach in regard to Allied supervision of Greek elections which is being made to the Greek Government before the Big Three meeting, the U. S. Government propose to Great Britain and the Soviet Union at the meeting that the three Governments, possibly with the participation of France, send observers to Greece to supervise the elections to be held later this year.

5. Policy towards Italy (See Annex 6¹³)

It is recommended that this Government propose:

(a) A review of tripartite policy, the United States objectives being the early political independence and economic recovery of Italy.

(b) Immediate revision of the surrender terms and the abolition of the Advisory Council.

(c) Negotiation in the near future of a definitive peace treaty. Negotiations would be conducted by machinery proposed in paragraph I above.

6. Soviet Cooperation in Solving European Economic Problems (See Annex 7¹⁴)

It is recommended that this Government urge the Soviet Government to cooperate to the full in solving the emergency economic problems which are the aftermath of the war in Europe. Concrete proposals in this sense are set forth in Annex 7.

7. Freedom of Communication and Information in Europe (See Annex 8¹⁵)

It is recommended that an effort be made to obtain agreement of the Russians to a more liberal policy in this matter in Germany and Eastern Europe.

ii. items which the british intend to raise for discussion not included under paragraph i above

8. Poland

No recommendations are being submitted under this heading at this time as events are moving too rapidly.

9.¹⁶ Conditions and Timing for Bringing into Force of Occupation Zones in Germany

No recommendations are being submitted under this heading at this time. It is understood that this matter has been settled.

10.¹⁷ Disposal of German Fleet and Merchant Ships

No recommendation is being submitted in regard to the disposition of the German Fleet as this is a military problem and one which we understand is being considered by the Joint Chiefs of Staff.¹⁸

In regard to the disposition of the Merchant Ships, it is recommended that, subject to the approval of the military authorities, we agree with the Soviet claim to one-third of these ships.

11.¹⁹ Settlement of the Status and Membership of the Reparations Commission

It is recommended that this Government propose that the Control Council should have responsibility, pursuant to directives from the four occupying powers, for determining the supplies available for reparations deliveries from Germany and that the reparations body should determine the allocation of such supplies among the claimant countries; and that the membership of the Commission should be enlarged. (A detailed paper on this subject will be available before the meeting.)²⁰

12.²¹ Austria

It is expected that the question of the establishment of zones in Vienna²² and of the Control Commission²³ will be settled before the meeting. Recommendations are made in Annex 9 attached²⁴ regarding the recognition of the Austrian Government.

13.²⁵ Yugoslavia

Recommendations are made in Annex 10 attached²⁶ respecting the maintenance of the status quo with regard to Yugoslav-Italian and Yugoslav-Austrian frontiers pending peace settlement.

14.²⁷ Iran

Recommendations regarding the question of mutual withdrawal of troops are made in Annex 11 attached.²⁸

15.²⁹ Turkey

Recommendations in regard to our attitude toward a revision of the Montreux Convention³⁰ governing the control of the Straits are made in Annex 12 attached.³¹

iii. additional important matters which are likely to be raised

16. European Territorial Settlements

Annex 13 attached³² contains recommendations and brief discussions on the most important and troublesome European territorial issues. Papers on the lesser territorial issues will be available for use at the meeting if necessary.³³

17. Twenty-five-year Treaty ³⁴ for the Demilitarization of Germany (See Annex 14³⁵)

It is recommended that this matter not be raised formally but that the opportunity be taken to sound out the Prime Minister and Stalin on the matter.

18. Germany: Partition (See Annex 15³⁶)

The supporting paper, Annex 15, sets forth in detail the reasons which lead the State Department to believe that the disadvantages of partitioning Germany outweigh the advantages.

19. Germany: Disposition of the Ruhr (See Annex 16³⁷)

It is recommended that this Government oppose the separation of the Ruhr from Germany either through internationalization or through the creation of a separate state or through annexation by one or more neighboring states.

20. International Military Bases

While there were no definite conclusions or commitments, at previous meetings of the heads of government there was some discussion of the question of establishing international military bases in Europe and Africa.³⁸ In view of these previous discussions, the question may be raised by one of the other participants. It is understood that the Army and Navy are at present giving consideration to the matter, and the State Department will consult with them with a view to reaching certain agreed recommendations.³⁹

[Washington,] June 30, 1945.

1. Grew sent copies of this memorandum and of its attachment to Leahy and Byrnes on June 30 (file No. 740.00119 Control (Germany)/6–3045).
2. Not attached to the file copy of the above memorandum. The text of the attachment is printed from Byrnes’ copy of the Briefing Book (file No. 740.00119 (Potsdam) /5–2446).
3. Document No. 228.
4. Document No. 327.
5. Signed at London, November 14, 1944, as amended by a further agreement signed at London, May 1, 1945. For texts, see Treaties and Other International Acts Series No. 3070; United States Treaties and Other International Agreements, vol. 5, pt. 2, p. 2062. Text of the agreement of November 14, 1944, also in Foreign Relations, The Conferences at Malta and Yalta, 1945, p. 124.
6. See document No. 327, footnote 7.
7. This entire item is deleted in pencil in Dunn’s copy of the Briefing Book.
8. See documents Nos. 574, 589, and 607.
9. Of December 1, 1943. Text in Department of State Bulletin, vol. ix, p. 393.
10. Treaty Series No. 723; 44 Stat. (3) 2113.
11. See vol. ii, document No. 1417, section v .
12. Documents Nos. 285 and 443, respectively.
13. Document No. 464.
14. Document No. 524.
15. Document No. 257.

16. In another version of this memorandum in Department of State files (file No. 740.00119 Council/6–3045), also dated June 30 but apparently amended by the substitution of two pages prepared early in July, this item 9 is omitted entirely and replaced by the following:

    “9. War Crimes.

    “Discussions on this subject are now being conducted in London. Justice Jackson doubts the advisability of raising so technical a matter in the Berlin Meeting. (A paper on this subject is available in the background book).”

    The paper referred to is presumably document No. 395; see also document No. 394.

17. In the version referred to in the preceding footnote, this item appears as No. 14 under heading iii.
18. See documents Nos. 391 and 392, post, and vol. ii, document No. 1005.
19. In the version referred to in footnote 16, ante, this, item appears as No. 15 under heading iii.
20. Such a paper was not included in the Briefing Book.

21. In the version referred to in footnote 16, ante, this item is omitted and the following substitute appears as the first item under heading iii:

    “13. Austria.

    “The questions of the establishment of zones in Vienna and of the Control Commission have been settled in [the] EAC and have been referred to the Governments concerned.”

22. See Treaties and Other International Acts Series No. 1600; 61 Stat. (3) 2679.
23. See document No. 282.
24. Document No. 268.
25. In the version referred to in footnote 16, ante, this item appears as No. 10 under heading ii.
26. Document No. 558.
27. In the version referred to in footnote 16, ante, this item appears as No. 11 under heading ii.
28. Document No. 628.
29. In the version referred to in footnote 16, ante, this item appears as No. 12 under heading ii.
30. League of Nations Treaty Series, vol. clxxiii, p. 213.
31. Document No. 680. Cf. document No. 681.
32. See documents Nos. 259, 398, and 509.
33. See documents Nos. 246, 247, 248, 400, 401, 511, 512, and 513.
34. In the version referred to in footnote 16, ante, this heading reads “Long-Term Treaty”.
35. Document No. 328.
36. Document No. 331.
37. Document No. 399.
38. The records of the Tehran Conference, where the discussion referred to took place, are scheduled for publication in a subsequent volume in this series.
39. The agreed recommendations referred to were not submitted before or during the Berlin Conference.