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====How should Germany be administered?====
The major issue at Potsdam was the question of how to handle Germany. At Yalta, the Soviets had pressed for heavy postwar reparations from Germany, half of which would go to the Soviet Union. While Roosevelt had acceded to such demands, Truman and his Secretary of State, James Byrnes, were determined to mitigate the treatment of Germany by allowing the occupying nations to exact reparations only from their zone of occupation. Truman and Byrnes encouraged this position because they wanted to avoid a repetition of the situation created by the Treaty of Versailles, which had exacted high reparations payments from Germany following World War One. Many experts agreed that the harsh reparations imposed by the Versailles Treaty had handicapped the German economy and fueled the rise of the NazisHitler.
Despite numerous disagreements, the Allied leaders did manage to conclude some agreements at Potsdam. For example, the negotiators confirmed the status of a demilitarized and disarmed Germany under four zones of Allied occupation. According to the Protocol of the Conference, there was to be "a complete disarmament and demilitarization of Germany." All aspects of the German industry that could be utilized for military purposes were to be dismantled. All German military and paramilitary forces were to be eliminated. Finally, the production of all military hardware in Germany was forbidden.
