POTSDAM AGREEMENTS

DECLARATION OF LIBERATED EUROPE They jointly declare their mutual agreement to concert during the temporary period of instability in liberated Europe the policies of their three governments in assisting the peoples liberated from the domination of Nazi Germany [Austria, Poland, Czechoslovakia, Yugoslavia and Greece] and the peoples of the former axis [the alliance of Germany, Italy, and Japan] satellite states of Europe [that is, eastern European countries allied to Germany; namely Finland, Hungary, Rumania, and Bulgaria] to solve by democratic means their pressing political and economic problems.

THE DISMEMBERMENT OF GERMANY "The United Kingdom, the United States of America and the Union of Soviet Socialist Republics shall possess supreme authority with respect to Germany. In the exercise of such authority they will take such steps, including the complete dismemberment of Germany as they deem requisite for future peace and security."

REPARATIONS Germany must pay in kind for the losses caused by her to the allied nations in the course of the war. (A) removals within two years from the surrender of Germany or the cessation of organized resistance from the national wealth of Germany located on the territory of Germany herself as well as outside her territory (equipment, machine tools, ships, rolling stock, German investments abroad, shares of industrial, transport and other enterprises in Germany, etc.), These removals to be carried out chiefly for the purpose of destroying the war potential of Germany. (B) annual deliveries of goods from current production for a period to be fixed. (C) use of German labor.

POLAND "A new situation has been created in Poland as a result of her complete liberation by the red army. This calls for the establishment of a polish provisional government which can be more broadly based than was possible before the recent liberation of the western part of Poland. The provisional government which is now functioning in Poland [that is, the Communist government recognized by the Soviet Union on January 5] should therefore be reorganized on a broader democratic basis with the inclusion of democratic leaders from Poland itself and from Poles abroad [namely London]. This new government should then be called the Polish provisional government of national unity.

POTSDAM MOUNTING TENSIONS

SOURCES OF TENSION The Soviets were disappointed with the failure of great Britain and the United States to recognise the Bulgarian and Rumanian governments. They saw it as a manifestation of the USA’s general unfriendliness toward the soviet union. The Soviets argued that Bulgaria had a free election and therefore their government should be recognised. The USA questioned the ‘free election’, they believed the Soviets had, in some way, ensured the outcome.

SOURCES OF TENSION The Americans were insistent that Germany needed to remain one economic unit as agreed upon at Potsdam. Germany also needed to be able to subsist without economic assistance. At Potsdam the agreement had been for a prompt disarmament of armed forces and demilitarisation of war plants. The Soviets claimed the British were not disarming and the British claimed the Soviets were continuing the operation of German war plants. When it was suggested that both these claims be investigated the British agreed but the Soviets refused.

ATOMIC WEAPONS When Truman mentioned he had a new weapon of ‘unusually destructive force’ Stalin knew he had to take decisive action to reinforce the Soviet position. He ordered work to accelerate on the Soviet bomb project He accelerated the program to establish pro-Soviet governments in Bulgaria and Romania He put pressure on turkey to permit the passage of soviet warships through the Dardanelles. He commenced the reinforcement of Soviet troops in Iran

COMMUNIST PUPPET GOVT. POLAND Stalin installed a puppet regime of local Communists together with local pro-Soviet socialists ignoring the claims of the Polish government in exile. The Poles were already hostile toward their ‘liberators’ especially after the Soviets halted their advance into Warsaw to allow a German massacre of anti-communist Polish nationals

EASTERN EUROPE To avoid claims of having engineered a Communist takeover in eastern Europe, Stalin made sure that coalition governments were installed. In Hungary, Bulgaria, Romania and Czechoslovakia communists occupied key ministries, including the Minister of the Interior (Police). This allowed Communists to takeover by sidelining other interests and political parties.

SOVIET OCCUPATION OF PERSIA The British and Soviets had both occupied Persia (Iran) at the end of the war. They both agreed to withdraw and the British did so. The Soviets only withdrew after coming under significant US diplomatic pressure.

THE DIVISION OF GERMANY Even thought the Big 3 had agreed on a course of action at Potsdam the fact was, they had divergent ideas. The West believed Germany had to be de-Nazified, free enterprise encouraged and stable democratic institutions restored. Stalin wanted a defensive zone throughout eastern Europe. The Soviet zone of Germany refused cooperation with the other zones. When the Western zones moved to reunite Germany, as per the Potsdam agreement, the Soviets refused and refused to cooperate with the other occupying powers