Which Allied statement issued on July 26, 1945, set the terms Japan later accepted in its surrender?

The Potsdam Declaration set the terms Japan later accepted in its surrender.

Issued on July 26, 1945, the declaration was released by the United States, the United Kingdom, and China during the Potsdam Conference. It demanded the unconditional surrender of Japan's armed forces and warned of “prompt and utter destruction” if Japan refused.

The declaration also described the intended postwar settlement. Japan's sovereignty would be limited to the main home islands and other islands designated by the Allies, its armed forces would be disarmed, and war criminals would face justice. It promised that the Japanese people would not be enslaved or destroyed as a nation.

The Soviet Union did not sign the original declaration because it was still officially neutral toward Japan at that moment. After declaring war on Japan on August 8, the Soviet Union agreed to adhere to it. Japan accepted its provisions in August.