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The U.S. State Department Analyzes the Soviet Note on Berlin (January 7, 1959)

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Thus the outline and organization for Soviet policies in Germany in the military and political spheres was accomplished even before the victorious powers could meet to discuss their plans and to agree on implementing the stated principles of the wartime coalition. Nevertheless, the Berlin (Potsdam) Conference of the Heads of Government of the U.S.S.R., the U.K., and the United States met from July 17 to August 2, 1945, to consider a wide range of international problems, including a set of principles with respect to Germany which should be followed to accomplish the aims of the wartime Allies.

The Potsdam Protocol, dated August 1, 1945, included both negative features of Allied purposes (demilitarization, denazification, and reparations) and positive provisions to show the Allied nations and Germany that there was a future for the German people. The following are quotations from the positive features of the Potsdam Protocol:
[ . . . ] The judicial system will be reorganized in accordance with the principles of democracy, of justice under law, and of equal rights for all citizens without distinction of race, nationality or religion.
[ . . . ] The administration of affairs in Germany should be directed towards the decentralization of the political structure and the development of local responsibility. To this end:
[ . . . ] local self-government shall be restored throughout Germany on democratic principles and in particular through elective councils as rapidly as is consistent with military security and the purposes of military occupation;
[ . . . ] all democratic political parties with rights of assembly and of public discussion shall be allowed and encouraged throughout Germany;
[ . . . ] 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;
[ . . . ] 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.
[ . . . ] 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.
[ . . . ] 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:
(a) mining and industrial production and allocations;
(b) agriculture, forestry and fishing;
(c) wages, prices and rationing;
(d) import and export programs for Germany as a whole;
(e) currency and banking, central taxation and customs;
(f) reparation and removal of industrial war potential;
(g) transportation and communications.

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