661.6431/10–1145: Telegram
The Representative in Hungary (Schoenfeld) to the Secretary of State
[Received 6:10 p.m.]
746. Following is translation of note dated October 11 received today from Prime Minister Miklos:
“I have the honor herewith to send you a copy of the Russian-Hungarian economic agreement which was signed in Moscow by Minister of Commerce Erno Gero and the Russian Minister of Foreign Trade. This economic agreement is being energetically urged on the part of the Russians who confront the Hungarian Government with the question whether it is willing to accept the pact and request a yes or no answer.
Since the question is coming up before the Cabinet Council it is not impossible that it will be approved by the Leftist Ministers.6 In that [Page 885] event, I will seek to postpone final acceptance of the agreement until such time as on the basis of the international agreements namely Yalta and San Francisco it will be possible for the British and American Governments to give adequate expression to their position.
I have the honor to inform you that I am requesting the Allied Control Commission’s decision in this matter and at the same time I request the support of the American Government.
For your information I call your Excellency’s attention to the fact that the agreement extends not only to those German assets which in accordance with the Potsdam Agreement have passed into the possession of the USSR but embraces every branch of Hungarian economic life as well. With respect to the conclusion of such economic agreements I have declared that I maintain a free hand for Hungary and will not acquiesce in the exclusion of the United Nations and other foreign countries. Moreover, the Moscow Agreement would have to undergo much modification before it is acceptable from the Hungarian point of view.”
Please see my telegram number 747, October 11. Repeated to London as No. 37.
- Telegram 757, October 13, from Budapest, reported that the Hungarian Ministerial Council had ratified the Soviet-Hungarian economic collaboration agreement on October 12 subject to two amendments to the effect that the agreement did not preclude economic cooperation with other countries and that in implementing the agreement, German assets in Hungary would receive prior attention (661.6431/10–1345).↩