At this conference they decided that they were not going to ask Germany for a lump some like they did at the end of World War I. We have seen the problems that were caused at the end of World War I, when we asked for a lump some. So this conference decided "Germany must pay in kind for the losses by her to the Allied Nations in the course of the war (Dept of State pg 44). There was three ways in which the money could be collected. This would be the selling of "equipment, machine tools, ships, rolling stock, German investments abroad, and of any other enterprises" (Dept of State pg 44). Countries could also get their money by having the use of German labor and the ability to have German deliveries of goods to be fixed for a certain period of time (Dept of State pg 44). This conference also split Germany into territorial zones. The zones were given to the United States, Union of Soviet Socialist Republics, France, and the United Kingdom. This was just the first conference to look at the question of how to deal with Germany.
Potsdam was the next conference that was held. It was held from July 17 to August 2, 1945. This conference was responsible for the guidelines, which the territorial zones of occupation could be ruled in. First off, any program, club, or organization that has military ties or tries to keep alive the military tradition in Germany must disband. The once great German army and navy had to be disbanded. Also all "arms, ammunition, and implements of war and all specialized facilities for their production shall be held at the disposal of the Allies or destroyed" (Dept of State pg 48). It also prevented the production of aircraft and the maintenances of all implements of war. They were to convince the German people they have been defeated and that they now must be held responsible for the actions of their government (Dept of State pg 49). In other words, they are talking about victors" justice and trying to demoralize the people.