Churchill and Stalin discuss the progress of the war in Europe and its brutality. They propose three alternative plans of German dismemberment and how German assets should be divided among the Allies. They discuss further punishments and reparations.

M. Mikolajczyk discusses the Polish memorandum regarding the reconstruction and internal affairs of post-war Poland, Stalin reprimands Mikolajczyk for the extralegal approval of this memorandum. Churchill defends the memorandum, Stalin criticizes it, and Mikolajczyk emphasizes Poland's sovereignty as well as the legitimacy of the underground government in occupied Poland. Contentious discussion on the issue of the Curzon Line between Stalin and Mikolajczyk--Churchill acts as a mediator.

Churchill, Eden, Stalin, and Molotov discuss the leadership in Poland, Britains interests in Greece and Hong Kong, the actions of Romania and Bulgaria during the war, Turkey, the need for the Great Powers to exert influence on the Balkans to prevent small wars, the leadership of Italy, interests in Bulgaria and Romania, the dividing of Germany and Germany's future, and the American plans in the war against Japan.

George Kennan describes Stalin's character, underlining the importance of his nationality, ignorance of the west, and his seclusion. Kennan further warns that Stalin's advisors are not interested in collaborating with western democracies, and that Russia's internal police regime is developed beyond its foreign policy.