A conference which met during the final stages of World War 2 (17 Jul2 Aug 1945). Churchill (and later Attlee), Stalin, and Truman met to discuss the post-war settlement in Europe. Soviet power in E Europe was recognized, and it was agreed that Poland's W frontier should run along the OderNeisse line. The decision was made to divide Germany into four occupation zones and to transfer the German population of certain E European territories (over 10 million people) to Germany. It established a Council of Foreign Ministers to handle peace treaties, made plans to introduce representative and elective principles of government in Germany, discussed reparations (on which the Soviet Union was subsequently to default), outlawed the Nazi Party, and decentralized the German economy. Political differences between the USA and USSR, and the breaching of the agreement by Stalin, marked the start of the Cold War. The Potsdam Declaration (26 July 1945) demanded from Japan the choice between unconditional surrender or total destruction.
The Potsdam Conference was held at Cecilienhof in Potsdam, Germany, from July 17 to August 2, 1945.
Stalin, Churchill, and Truman—as well as Attlee, who replaced Churchill after the Labour Party's defeat of the Conservatives in the 1945 general election—had gathered to decide how to administer the defeated Nazi Germany, which had agreed to unconditional surrender nine weeks earlier, on May 8 (V-E Day). The goals of the conference also included the establishment of post-war order, peace treaties issues, and countering the effects of war. He arrived at the conference a day late, citing "official business" that required his attention, but in fact may have suffered a minor heart attack. The results of the British election became known during the conference. Joseph Stalin suggested that Truman preside over the conference as the only head of state attending, a recommendation accepted by Churchill.
Primary results of the conference
Potsdam Agreement
At the end of the conference, the Three Heads of Government agreed on the following actions:
Germany: Issuance of a statement of aims of the occupation of Germany by the Allies: demilitarization, denazification, democratization and decartelization. Reversion of all German annexations in Europe after 1937, these included Sudetenland, Alsace-Lorraine, Austria and the westmost parts of Poland Germany's eastern border was to be shifted westwards to the Oder-Neisse line, effectively reducing Germany in size by approximately 25% compared to her 1937 borders. Agreement on war reparations to the Soviet Union from their zone of occupation in Germany. It was also agreed that 10% of the industrial capacity of the western zones unnecessary for the German peace economy should be transferred to the Soviet Union within 2 years. Stalin proposed and it was accepted that Poland was to be excluded from division of German compensation to be later granted 15% of compensation given to Soviet Union (this has never happened). (see The industrial plans for Germany) Destruction of German industrial war-potential through the destruction or control of all industry with military potential. German exports were to be coal, beer, toys, textiles, etc — to take the place of the heavy industrial products which formed most of Germany's pre-war exports. The provisional western border should be the Oder-Neisse line, parts of East Prussia and former free City of Danzig should be under Polish administration, but that the final delimitation of the western frontier of Poland should await the peace settlement, which had to await the Treaty on the Final Settlement With Respect to Germany in 1990. All other issues were to be answered by the final peace conference to be called as soon as possible.Potsdam Declaration
In addition to the Potsdam Agreement, on July 26 the United States, the British Empire and the Republic of China (the Soviet Union was not at war with Japan during the Conference) issued the Potsdam Declaration which outlined the terms of surrender for Japan.
Other issues
The western allies, and especially Churchill, were suspicious of the motives of Stalin, who had already installed communist governments in the central European countries under his influence; the Potsdam conference turned out to be the last conference among the allied leaders.
During the conference, Truman mentioned to Stalin about an unspecified "powerful new weapon"; Towards the end of the conference, Japan was given an ultimatum (threatening "prompt and utter destruction", without mentioning the new bomb), and hastily after Japan had rejected it, atomic bombs were dropped on Hiroshima and Nagasaki on August 6 and August 9, 1945 respectively. Truman made the decision to use atomic weapons to end the war while at the conference.
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