In February, 1945, Joseph Stalin, Winston Churchill and Franklin D. Roosevelt met again. This time the conference was held in Yalta in the Crimea. With Soviet troops in most of Eastern Europe, Stalin was in a strong negotiating position. Roosevelt and Churchill tried hard to restrict post-war influence in this area but the only concession they could obtain was a promise that free elections would be held in these countries.
Once again, Poland was the main debating point. Stalin explained that throughout history Poland had either attacked Russia or had been used as a corridor through which other hostile countries invaded her. Only a strong, pro-Communist government in Poland would be able to guarantee the security of the Soviet Union.
William Leahy, Roosevelt's chief of staff, later pointed out: "Stalin then brought up the question of reparations in kind and in manpower, but said he was not ready to discuss the manpower question. The latter, of course, referred to forced labour. Since the Russians were using many thousands of prisoners in what was reported to be virtual slave camps, they had little to gain by discussing the matter.... The proposal in brief was: Reparations in kind should include factories, plants, communication equipment, investments abroad, etc., and should be made over a period of ten years, at the end of which time all reparations would have been paid. The total value of the reparations in kind asked by the Soviet was 10 billion dollars, to be spread over the ten-year period... Churchill objected to the 10 billion-dollar figure, and he and Roosevelt agreed that a reparations committee should be appointed to study the issue."
Winston Churchill stated: "The peace of the world depends upon the lasting friendship of the three great powers, but His Majesty's Government feel we should be putting ourselves in a false position if we put ourselves in the position of trying to rule the world when our desire is to serve the world and preserve it from a renewal of the frightful horrors which have fallen upon the mass of its inhabitants." Joseph Stalin and Franklin D. Roosevelt agreed and at Yalta, the decision at Teheran to form a United Nations organization was confirmed. It was only on this issue that all three leaders were enthusiastically in agreement.
Anthony Eden, the British foreign minister, pointed out: "Roosevelt was, above all else, a consummate politician. Few men could see more clearly their immediate objective, or show greater artistry in obtaining it. As a price of these gifts, his long-range vision was not quite so sure. The President shared a widespread American suspicion of the British Empire as it had once been and, despite his knowledge of world affairs, he was always anxious to make it plain to Stalin that the United States was not 'ganging up' with Britain against Russia. The outcome of this was some confusion in Anglo-American relations which profited the Soviets. Roosevelt did not confine his dislike of colonialism to the British Empire alone, for it was a principle with him, not the less cherished for its possible advantages. He hoped that former colonial territories, once free of their masters, would become politically and economically dependent upon the United States, and had no fear that other powers might fill that role."
At the time of Yalta, Germany was close to defeat. British and USA troops were advancing from the west and the Red Army from the east. At the conference it was agreed to divide Germany up amongst the Allies. However, all parties to that agreement were aware that the country that actually took control of Germany would be in the strongest position over the future of this territory.
The main objective of Winston Churchill and Stalin was the capture of Berlin, the capital of Germany. Franklin D. Roosevelt did not agree and the decision of the USA Military commander, General Dwight Eisenhower, to head south-east to Dresden, ensured that Soviet forces would be the first to reach Berlin.