740.00119 EW/11–945: Telegram
The Representative in Hungary (Schoenfeld) to the Secretary of State
[Received November 11—noon.]
893. In recent conversations with representative Hungarians in eluding Director of National Bank,58 new Minister to Washington and spokesman for Tildy among others, they have expressed hope o: American assistance in rehabilitating Hungary and pointed out that without such assistance, rehabilitation is deemed impossible. Some times their hope is related expressly to possible American loan (mytel [Page 905] 584, September 14 and Deptel 471, October 159). Sometimes it involves suggestion of comprehensive American participation in Hungarian industry. Occasionally, it is coupled with reference to the installation here of American fiscal control. Such discussion does not relate merely to pressing relief needs. Invariably, reference is made to crippling effect of reparations and requisitions for Soviet benefit which it is claimed preclude even preliminary approach towards rehabilitation. Such thoughts have lately received impetus from rapidly accelerating currency depreciation and general economic deterioration.
In these conversations I have lately taken the line that due Govt’s desire to cooperate with our principal allies and with country concerned in rehabilitation has been well known and emphasized both in public and diplomatic statements. (Deptel 536, October 1360) I have added that American interest and responsibility are necessarily world-wide and that initiative in proposing any scheme for rehabilitation in Hungary rests directly upon Hungarians who should study and devise comprehensive plan for eventual submission to principal allies. I have suggested that even if such proposal were unacceptable either in whole or in part, such Hungarian initiative might provide point of departure for inter-Allied discussion of the problem. When it has been suggested that Hungarian plan might be submitted to us in first instance for guidance in preparing plan for formal submission, I have intimated that we could not accept moral responsibility involved in any such procedure which should be undertaken exclusively on Hungarian initiative and responsibility and proposal presented simultaneously to three principal powers.61
- Apparent reference to Arthur Kárász, President of the Hungarian National Bank.↩
- For latter, see footnote 70, p. 868.↩
- Same as telegram 2159, October 13, 2 p.m. to Moscow, p. 888.↩
- An unsigned note on the original reads: “An answer to this was in preparation when the Moscow conference began. The memos sent to Moscow for the conference covered the ground that would have been covered in a reply to this.” For the memoranda to the Secretary of State apparently referred to in this note, see telegram 2573, Secdel 21, December 18, 8 p.m. to Moscow, p. 922.↩