740.00119 (Potsdam)/7–2145

United States Delegation Memorandum1
top secret

Status of Problems Before the Conference

i. problems on which substantial agreement has been reached

Council of Foreign Ministers. This proposal2 has been substantially approved, although the Drafting Committee has been asked to make minor textual improvements. London has been fixed as the place of meeting, and the date is set at September 1 at the latest. A telegram of invitation is being drafted to the French and Chinese Governments.
Authority of the Control Council for Germany in Political Questions. A revised document3 on this subject has received final approval.
Disposition of the German Fleet and Merchant Marine. It has been agreed in principle that the fleet and merchant marine shall be divided in three parts. It is also agreed, however, that (1) a substantial proportion of the submarines shall be destroyed and (2) all of the merchant marine, including the Russian share, shall be available for the prosecution of the war against Japan.
Austria and Vienna. The EAC agreements on zones of occupation4 and control machinery5 for Austria and Vienna having been finally approved, the Soviets have agreed that U. S. and British forces may immediately occupy their zones.
The Polish Question—Liquidation of the London Government and Implementation of the Yalta Agreement. A document6 on this matter has received final approval.

ii. problems pending for consideration before the heads of government or foreign ministers

German Economic Questions. The Subcommittee has reported on this question, and the report7 is ready for consideration.
Italian and Austrian Reparations. This matter has been referred to the Subcommittee which has been dealing with German economic questions.
Oil for Western Europe. The U. S. has circulated a paper8 urging that oil from Rumania, Hungary, and Austria be made available to Western Europe.
Italy and Spain in the United Nations.9 Two papers have been prepared on this question, one supporting Italy’s claim to become a member of the United Nations as soon as the peace treaty has been concluded, the other supporting, in general, the entry of other neutrals into the United Nations but opposing the entry of Spain as long as the present regime remains in power.
Implementation of the Yalta Declaration on Liberated Europe and Satellite States. A revised U. S. paper10 on this subject has been circulated and is ready for consideration.
Italy and the Other Satellite States. The U. S. has presented two papers, one on policy toward Italy11 and the other on policy toward Rumania, Hungary, Bulgaria, and Finland.12 It had originally been intended to refer these papers to a subcommittee, but Marshal Stalin has now taken the position that, unless the U. S. and Britain are prepared to recognize the present Governments of Rumania, Hungary, Bulgaria, and Finland, this question should not be discussed further.
Rumanian Oil. The British have presented a paper,13 which was referred by the Big Three to the Foreign Ministers, protesting the seizure by the Soviets of British-owned oil equipment in Rumania.
The Western Boundary of Poland. This question has been discussed inconclusively by the Big Three.
Trusteeship. The Russians have presented a paper14 on this subject but it has not yet been discussed.
Turkey. This has been placed on the agenda of the Big Three by the British but has not yet been discussed.
Withdrawal of Troops from Iran. The British have circulated a paper15 on this subject, which is now ready for consideration.

iii. problems which have been discussed and dropped without agreement

1. Yugoslavia. The British raised the question of the implementation of the Yalta Declaration on Yugoslavia16 but, in the absence of support for their position, have apparently decided not to press the matter.

iv. questions on the original agenda of the three powers which have not yet been raised before the conference

U. S. Proposals.
Soviet Cooperation in Solving Immediate European Economic Problems.
This matter has not yet been discussed at all.
Admission of American Press Correspondents into Eastern Europe.
This question has not been raised as a separate issue but is being dealt with in connection with the implementation of the Yalta Declaration on Liberated Europe and will presumably not be raised as a separate problem.
British Proposals.
a. War Crimes.
This question has not been discussed at all.
Soviet Proposals.
The Levant.
  1. Authorship not indicated. This memorandum bears the manuscript notation: “July 21 (?)”. This date is confirmed by a comparison of this status report with the minutes of the meetings on July 21 and July 22.
  2. Document No. 713, post.
  3. Document No. 856, post.
  4. Treaties and Other International Acts Series No. 1600; 61 Stat. (3) 2679.
  5. Document No. 282, printed in vol. i.
  6. Document No. 1131, post.
  7. Documents Nos. 863 and 902, post.
  8. Document No. 1320, post.
  9. The two papers referred to in this paragraph have not been identified. Cf. document No. 727, post.
  10. See document No. 748, post.
  11. Document No. 1092, post.
  12. Document No. 805, post.
  13. Document No. 837, post.
  14. Document No. 733, post.
  15. Document No. 1330, post.
  16. See document No. 1202, post.