The Potsdam Declaration, or the Proclamation Defining Terms for Japanese Surrender, was a statement that called for the surrender of all Japanese armed forces during World War II. On July 26, 1945, United States President Harry S. Truman, United Kingdom Prime Minister Winston Churchill, and President of China Chiang Kai-shek issued the document, which outlined the terms of surrender for the Empire of Japan, as agreed upon at the Potsdam Conference. The ultimatum stated that, if Japan did not surrender, it would face "prompt and utter destruction."
At the start of the conference, the United States delegation considered a proclamation demanding Japan's unconditional surrender by the heads of governments of the United States, the United Kingdom, the Soviet Union and China. The Potsdam Declaration went through many drafts until a version acceptable to all was found. Soviet leader Joseph Stalin ultimately declined to endorse the ultimatum at Potsdam, since the Soviet Union was not yet at war with Japan, and instead committed to subscribing to the declaration upon Soviet entry in the war which was scheduled for early August.
Knowing on 24 July that the "Joint Chiefs of Staff had reached an agreement on ... military strategy", Truman gave Churchill a copy of the draft proclamation, which didn't mention the Soviet Union. The United States Delegation adopted all the suggested British amendments.
Since Chiang Kai-shek had not been invited to the conference in a Berlin suburb, China did not participate in the drafting of the Potsdam Declaration. Chinese agreement on the issuance of the proposed proclamation was sought by telegram on 24 July. Ambassador Hurley delivered the message the next day in Chongqing. Chiang Kai-shek concurred with one amendment to the text, the listing of “President of the National Government of the Republic of China” before the Prime Minister of Great Britain, and the telegraphic reply sent from Chongqing at 11:05 a.m. on 26 July.
Churchill had left the Berlin conference for the last time on 25 July, and that afternoon had flown to Northolt with his daughter and aide-de-camp Mary.
Churchill was able to authorize the text as British Prime Minister, before submitting his resignation later on the evening of 26 July. In reality, the “signatures” of the Generalissimo and Prime Minister were in Truman’s handwriting.
On July 26, the United States, Britain, and China released the declaration announcing the terms for Japan's surrender, with the warning as an ultimatum: "We will not deviate from them. There are no alternatives. We shall brook no delay." For Japan, the terms of the declaration specified:
The elimination "for all time of the authority and influence of those who have deceived and misled the people of Japan into embarking on world conquest"
The occupation of "points in Japanese territory to be designated by the Allies"
That "The terms of the Cairo Declaration shall be carried out and Japanese sovereignty shall be limited to the islands of Honshu, Hokkaido, Kyushu, Shikoku and such minor islands as we determine."
That "the Japanese military forces, after being completely disarmed, shall be permitted to return to their homes with the opportunity to lead peaceful and productive lives"
That "we do not intend that the Japanese shall be enslaved as a race or destroyed as a nation, but stern justice shall be meted out to all war criminals, including those who have visited cruelties upon our prisoners"
On the other hand, the declaration offered:
"The Japanese Government shall remove all obstacles to the revival and strengthening of democratic tendencies among the Japanese people. Freedom of speech, of religion, and of thought, as well as respect for the fundamental human rights shall be established."
"Japan shall be permitted to maintain such industries as will sustain her economy and permit the exaction of just reparations in kind, but not those which would enable her to rearm for war. To this end, access to, as distinguished from control of, raw materials shall be permitted. Eventual Japanese participation in world trade relations shall be permitted."
"The occupying forces of the Allies shall be withdrawn from Japan as soon as these objectives have been accomplished and there has been established, in accordance with the freely expressed will of the Japanese people, a peacefully inclined and responsible government."
The mention of "unconditional surrender" came at the end of the declaration:
"We call upon the government of Japan to proclaim now the unconditional surrender of all Japanese armed forces, and to provide proper and adequate assurances of their good faith in such action. The alternative for Japan is prompt and utter destruction."