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The Impossible PeaceBritain, the Division of Germany, and the Origins of the Cold War$

Anne Deighton

Print publication date: 1993

Print ISBN-13: 9780198278986

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198278986.001.0001

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(p.236) (p.237) Appendix A Extracts from Protocol of the Proceedings of the Berlin Conference, 2 August 1945*

(p.236) (p.237) Appendix A Extracts from Protocol of the Proceedings of the Berlin Conference, 2 August 1945*

The Impossible Peace
Oxford University Press

Top secret

BERLIN, 2 August 1945

The Berlin Conference of the Three Heads of Government of the U.S.S.R., United States and United Kingdom which took place from the 17th July to the 2nd August, 1945, came to the following conclusions:–

I. —Establishment of a Council of Foreign Ministers

  1. A. The Conference reached the following agreement for the establishment of a Council of Foreign Ministers to do the necessary preparatory work for the peace settlements:–

    1. ’(1) There shall be established a Council composed of the Foreign Ministers of the United Kingdom, the Union of Soviet Socialist Republics, China, France and the United States.

    2. (2)

      1. (i) The Council shall normally meet in London, which shall be the permanent seat of the joint Secretariat which the Council will form. Each of the Foreign Ministers will be accompanied by a high-ranking Deputy, duly authorised to carry on the work of the Council in the absence of his Foreign Minister, and by a small staff of technical advisers.

      2. (ii) The first meeting of the Council shall be held in London not later than the 1st September, 1945. Meetings may be held by common agreement in other capitals as may be agreed from time to time.

    3. (3)

      1. (i) As its immediate important task, the Council shall be authorised to draw up, with a view to their submission to the United Nations, treaties of peace with Italy, Roumania, Bulgaria, Hungary and Finland, and to propose settlements of territorial questions outstanding on the termination of the war in Europe. The Council shall be utilised for the preparation of a peace settlement for Germany to be accepted by the Government of Germany when a Government adequate for the purpose is established.

      2. (p.238) (ii) For the discharge of each of these tasks the Council will be composed of the Members representing those States which were signatory to the terms of surrender imposed upon the enemy State concerned. For the purposes of the peace settlement for Italy, France shall be regarded as a signatory to the terms of surrender for Italy. Other Members will be invited to participate when matters directly concerning them are under discussion.

      3. (iii) Other matters may from time to time be referred to the Council by agreement between the Member Governments.

    4. (4)

      1. (i) Whenever the Council is considering a question of direct interest to a State not represented thereon, such State should be invited to send representatives to participate in the discussion and study of that question.

      2. (ii) The Council may adapt its procedure to the particular problem under consideration. In some cases it may hold its own preliminary discussions prior to the participation of other interested States. In other cases, the Council may convoke a formal conference of the State chiefly interested in seeking a solution of the particular problem.’

  2. B. It was agreed that the three Governments should each address an identical invitation to the Governments of China and France to adopt this text and to join in establishing the Council.

II. —The Principles to Govern the Treatment of Germany in the Initial Control Period

A. Political Principles

  1. 1. In accordance with the Agreement on Control Machinery in Germany, supreme authority in Germany is exercised, on instructions from their respective Governments by the Commanders-in-Chief of the armed forces of the United States of America, the United Kingdom, the Union of Soviet Socialist Republics and the French Republic, each in his own zone of occupation, and also jointly, in masters affecting Germany as a whole, in their capacity as members of the Control Council.

  2. 9. The administration in Germany should be directed towards the decentralisation of the political structure and the development of local responsibility. To this end:–

    1. (i) Local self-government shall be restored throughout Germany on democratic principles and in particular through elective (p.239) councils as rapidly as is consistent with military security and the purposes of military occupation;

    2. (ii) all democratic political parties with rights of assembly and of public discussion shall be allowed and encouraged throughout Germany;

    3. (iii) representative and elective principles shall be introduced into regional, provincial and state (Land) administration as rapidly as may be justified by the successful application of these principles in local self-government;

    4. (iv) for the time being, no central German Government shall be established. Notwithstanding this, however, certain essential central German administrative departments, headed by State Secretaries, shall be established, particularly in the fields of finance, transport, communications, foreign trade and industry. Such departments will act under the direction of the Control Council.

  3. 10. Subject to the necessity for maintaining military security, freedom of speech, press and religion shall be permitted, and religious institutions shall be respected. Subject likewise to the maintenance of military security, the formation of free trade unions shall be permitted.

B. Economic Principles

  1. 11. In order to eliminate Germany's war potential, the production of arms, ammunition and implements of war as well as all types of aircraft and sea-going ships shall be prohibited and prevented. Production of metals, chemicals [,] machinery and other items that are directly necessary to a war economy, shall be rigidly controlled and restricted to Germany's approved post-war peacetime needs to meet the objectives stated in paragraph 15. Productive capacity not needed for permitted production shall be removed in accordance with the reparations plan recommended by the Allied Commission on reparations and approved by the Governments concerned or, if not removed, shall be destroyed.

  2. 12. At the earliest practicable date, the German economy shall be decentralised for the purpose of eliminating the present excessive concentration of economic power as exemplified in particular by cartels, syndicates, trusts and other monopolistic arrangements.

  3. 13. In organising the German economy, primary emphasis shall be given to the development of agriculture and peaceful domestic industries.

  4. (p.240) 14. During the period of occupation Germany shall be treated as a single economic unit. To this end common policies shall be established in regard to:–

    1. (a) mining and industrial production and its allocation;

    2. (b) agriculture, forestry and fishing;

    3. (c) wages, prices and rationing;

    4. (d) import and export programmes for Germany as a whole;

    5. (e) currency and banking, central taxation and customs;

    6. (f) reparation and removal of industrial war potential;

    7. (g) transportation and communications.

    In applying these policies account shall be taken, where appropriate, of varying local conditions.

  5. 15. Allied controls shall be imposed upon the German economy but only to the extent necessary:–

    1. (a) to carry out programmes of industrial disarmament and demilitarisation, of reparations, and of approved exports and imports;

    2. (b) to assure the production and maintenance of goods and services required to meet the needs of the occupying forces and displaced persons in Germany and essential to maintain in Germany average living standards not exceeding the average of the standards of living of European countries. (European countries means all European countries excluding the United Kingdom and the Union of Soviet Socialist Republics);

    3. (c) to ensure in the manner determined by the Control Council the equitable distribution of essential commodities between the several zones so as to produce a balanced economy throughout Germany and reduce the need for imports;

    4. (d) to control German industry and all… economic international transactions, including exports and imports, with the aim of preventing Germany from developing a war potential and of achieving the other objectives named herein;

    5. (e) to control all German public or private scientific bodies, research and experimental institutions, laboratories, &c., connected with economic activities.

  6. 16. In the imposition and maintenance of economic controls established by the Control Council, German administrative machinery shall be created and the German authorities shall be required to the fullest extent practicable to proclaim and assume administration of such controls. Thus it should be brought home to the German people that the responsibility for the administration of such controls and any breakdown in these controls will rest (p.241) with themselves. Any German controls which may run counter to the objectives of occupation will be prohibited.

  7. 17. Measures shall be promptly taken:–

    1. (a) to effect essential repair of transport;

    2. (b) to enlarge coal production;

    3. (c) to maximise agricultural output;

    4. (d) to effect emergency repair of housing and essential utilities.

  8. 18. Appropriate steps shall be taken by the Control Council to exercise control and the power of disposition over German-owned external assets not already under the control of United Nations which have taken part in the war against Germany.

  9. 19. Payment of reparations should leave enough resources to enable the German people to subsist without external assistance. In working out the economic balance of Germany the necessary means must be provided to pay for imports approved by the Control Council in Germany. The proceeds of exports from current production stocks shall be available in the first place for payment for such imports.

    The above clause will not apply to the equipment and products referred to in paragraph 4 (a) and 4 (b) of the Reparations Agreement.

III. —Reparations from Germany

  1. 1. Reparation claims of the U.S.S.R. shall be met by removals from the zone of Germany occupied by the U.S.S.R., and from appropriate German external assets.

  2. 2. The U.S.S.R. undertakes to settle the reparation claims of Poland from its own share of reparations.

  3. 3. 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.

  4. 4. In addition to the reparations to be taken by the U.S.S.R. from its own zone of occupation, the U.S.S.R. shall receive additionally from the Western Zones:

    1. (a) 15 per cent. 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 commodities as may be agreed upon.

    2. (p.242) (b) 10 per cent. 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.

  5. 5. 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.

  6. 6. 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 U.S.S.R. in agreed instalments 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 reparations 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.

  7. 7. Prior to the fixing of the total amount of equipment subject to removal, advance deliveries shall be made in respect of 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.

  8. 8. The Soviet Government renounces all claims in respect of reparations to shares of German enterprises which are located in the Western Zones of occupation in Germany as well as to German foreign assets in all countries except those specified in paragraph 9 below.

  9. 9. The Governments of the United Kingdom and United States renounce all claims in respect of reparations 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, Roumania and Eastern. Austria.

  10. 10. The Soviet Government makes no claims to gold captured by the Allied troops in Germany.…

[Author's note. There are a number of conflicting versions of 19, second paragraph, of point Section II. B. In the CAB 66/67 copy, this paragraph states that ‘The above clause will not only apply to (p.243) the equipment and products referred to in paragraph 4(a) and 4(b) of the Reparations Agreement’. The copy of the Protocol which was given to the Cabinet after the Paris Council [CP(46)292, 23 July 1946, Cab 129/11], quotes as the second paragraph of Section II.B.19: ‘The above clause will apply to the equipment and products referred to in paragraph 4 (a) and 4 (b) of the Reparations Agreement’, which unintentionaly would have made the British case against the priority of reparations payments over German economic self-sufficiency a very much stronger one. (Italics added)]


(*) FO 93/1/238, 2 August 1945, Butler, Rohan, and Pelly, M. E. (eds.), Documents on British Policy Overseas Series I, Volume i, 1945. (HMSO, 1984), 1262 ff. Reproduced by permission of the Controller of Her Majesty's Stationery Office.