Foreign Relations of the United States: Diplomatic Papers, 1945, Europe, Volume IV

740.00119 Council/9–1045: Telegram

The Representative in Hungary (Schoenfeld) to the Secretary of State

Budapest, September 10, 1945—4 p.m.
[Received 4:45 p.m.]

559. ReDeptel 389, of September 8.⁶³ Current status ACC summarized as follows:

1. Legal position of US representation on ACC has not been fully clarified since defeat of Germany and resulting uncertainty as to status of first period statutes. Russians assume substitute statutes submitted to Key by Voroshilov in July and used as basis for discussion at Potsdam are in effect. Voroshilov so notified Key on August 14. Key takes position these statutes represent unilateral Soviet proposal and accordingly are not legal basis for position of US representation.

US political representative does not participate in activities of ACC and has maintained fully independent position. This mission approaches Soviet authorities through Key and has direct dealing with Russian representation on ACC.

2. Soviets do not admit directives are given Hungarian Government. Accordingly, they hold there has been no denial Foreign Office directives. Since economic and political life of Hungary is controlled by Chairman ACC, it is obvious that directives exist in oral if not written form. US representation on ACC has no part in formation of such directives except as minor points may be discussed at routine ACC sessions.

Key does not regularly receive copies of communications between Soviets and Hungarian Government. Existence of important documents is frequently denied by Russians even after copies have been secured by Key through special channels.

3. Right of US officials to move freely in Hungary has been admitted by Soviet authorities. Sole exceptions exist, such as long delay in permitting Key to visit oil field area, but in general US officials, Allied newspapermen are now free to enter and report on Hungary.⁶⁴ Blanket clearance for correspondents attached to Allied forces was rescinded by Voroshilov at last ACC meeting with result that specific clearance is now required by each newspaperman.⁶⁵ Such clearance has been granted promptly in most cases.

US businessmen are still unable to enter Hungary, but some progress was made at last ACC meeting. While Voroshilov’s statement at that time was not a commitment, it at least carried implication that clearances for businessmen may soon be available.⁶⁶

4. Officials of this mission approach local information sources without difficulty. Key is technically limited in contact with Hungarian Government to approach through Soviet ACC. Russians transmit his communications to Hungarians promptly but provide less satisfactory service in reverse. From practical viewpoint Key has found it necessary to approach Hungarians directly if necessary information is to be secured.

5. While individual American citizens can be protected with only such difficulties as are inherent in the general situation, added complications are present in the case of American business interests. Most important obstacle is present refusal of Soviets to permit entry of representatives of controlling US firms and lack of direct communication between Hungary and US. Resulting isolation makes it difficult for American firms to exist independent of Soviet influence and complicates efforts of this and Key’s mission to provide adequate assistance. Appointment of Russian-backed directors to American-controlled oil companies is best example of problem which is becoming increasingly conspicuous.

Squires, of my staff, will arrive London evening September 13 and will be available for amplifications of this statement if desired.

Townsend,⁶⁷ acting head US representation ACC in absence of Key, concurs in above.

Sent AmEmbassy London; repeated to Department as 559.

Schoenfeld

63. Not printed; it requested detailed answers to the following points concerning the status and operations of the Allied Control Commissions: (1) current position of American representatives on the Control Commissions and of the American political representatives; (2) the degree of American participation in the formation of directives to the local governments; (3) the difficulties in the circulation of American officials and the admission and reporting by reporters; (4) the limitations on access to local information and officials; (5) the obstacles to the protection of American nationals and interests (740.00119 Council/9–845).
64. On August 27 the Department of State released to the press a statement regarding the granting of clearance for the entry into Hungary of American newspaper correspondents; see Department of State Bulletin, September 2, 1945, p. 309.
65. On September 19, the Department of State issued a statement to the press regarding the rescinding of blanket authority for the entry of correspondents into Hungary and the new procedure for applying for such entry; see ibid., September 23, 1945, p. 451.
66. Telegram 624, September 20, from Budapest, reported that the necessary clearances for 13 American businessmen to enter Hungary had been obtained from the Allied Control Commission (138 Hungary/3). Thereafter, clearances for entry into Hungary were handled by the Allied Control Commission.
67. Col. Dallas S. Townsend.