(4)
German inland and coastal ships determined to be necessary to the maintenance of the basic German peace economy by the Allied Control Council of Germany shall not be included in the shipping pool thus divided among the three powers.
(5)
The three Governments agree to constitute a tripartite merchant marine commission comprising two representatives for each Government, accompanied by the requisite staff, to submit agreed recommendations to the three Governments for the allocation of specific German merchant ships and to handle other detailed matters arising out of the agreement between the three Governments regarding the German merchant ships. The commission will hold its first meeting not later than September 1st, 1945, in Berlin, which shall be its headquarters. Each delegation on the commission will have the right on the basis of reciprocity to inspect the German merchant ships wherever they may be located.
V. City Of Koenigsberg And The Adjacent Area.
The conference examined a proposal by the Soviet Government to the effect that pending the final determination of territorial questions at the peace settlement, the section of the western frontier of the Union of Soviet Socialist Republics which is adjacent to the Baltic Sea should pass from a point on the eastern shore of the Bay of Danzig to the east, north of Braunsberg-Goldap, to the meeting point of the frontiers of Lithuania, the Polish Republic and East Prussia.
The conference has agreed in principle to the proposal of the Soviet Government concerning the ultimate transfer to the Soviet Union of the City of Koenigsberg and the area adjacent to it as described above subject to expert examination of the actual frontier.
The President of the United States and the British Prime Minister have declared that they will support the proposal of the conference at the forthcoming peace settlement.
