Foreign Relations of the United States, 1952–1954, Eastern Europe; Soviet Union; Eastern Mediterranean, Volume VIII

764.00/10–2054: Telegram

No. 58
The Minister in Hungary (Ravndal) to the Department of State

secret

Budapest, October 20, 1954—1 p.m.

187. Pass VOA, MRC. Legation’s analysis current situation (Legtel 182¹) is that Hungarian regime after long period indecision reaching as far back as May or earlier) and effort stemming from economic desperation has now taken new tack on old NEP course. Trend both political and economic appears to continue in direction conciliation with greater concessions probably in offing for both peasants and workers. (More complete analysis follows in Legation despatch 108 October 22.²) Question arises as to most appropriate US activity in period concessionary trend or uncertainty. Although not over emphasizing this point, belief here is that effect, if any, of US conciliatory moves would be at maximum during such periods. As new tack, if confirmed, represents one more popular victory over regime, next efforts US policy in Legation’s view, including media output, should be directed at continuing to nudge regime further in present direction. Though US should not contemplate any major concessions, total benefit friendly or conciliatory moves towards regime and people might be somewhat greater now than when regime moving in direction greater terror and oppression.

Several possibilities for US action along these lines occur to us in addition flood aid grant:

(1) Minister might offer personal good offices obtain cessation RFE balloon drop.

(2) US could take steps indicate willingness see trade extended beyond present meager level such as possibility offering reactivate 1925 treaty minus Article VII.³

(3) Request waiver customs duties Christmas packages Legtel 159.⁴

(4) Propose discussions re permitting Americans visit Hungary. Success such negotiations would of course rest on Hungarian assurances re non-molestation and automatic exit permission particularly to dual nationals or ex-Hungarians and on satisfactory solution pending exit to SA cases (three cases under category one Legation despatch 93 October 7⁵ departed Hungary October 15).

While not desiring over-emphasize possibilities success or benefits these proposals, believe we have nothing to lose by offering them and that near future may be propitious time.

Re media output, offer following views:

1. Current trend, if continued, should be hailed as recognition by regime to extent and strength public opposition to Sovietization Hungary.

2. Anti-regime output should not in this phase be aimed so directly at “moderate” elements who have apparently won decision in this round but at advocates harsher policy, who though defeated retain great strength. Output should also single out worst remaining features Communist control (of which plenty) but any moves towards moderateness should be recognized.

3. Specific suggestions re moves brings state closer to people might be proposed, possibly along lines RFE 12 points but not so inclusive. Suggestions should be within limits attainability.

Ravndal

1. Telegram 182 reported that a meeting of the Central Committee of the HWP had taken place Oct. 1–3 and that the decisions emanating from it seemed to portend a change in the state’s economic policy. (964.61/10–1654)
2. Not printed. (764.00/10–2254)
3. Reference is to the Treaty of Friendship, Commerce and Consular Rights between the United States and Hungary, June 24, 1925, printed in Foreign Relations, 1925, vol. II, p. 341. Article VII granted Hungary most-favored-nation status.
4. Telegram 159, Oct. 5, recommended repeating the 1953 offer to undertake a Christmas gift food parcel program. (864.49/10–554)
5. Despatch 93 transmitted a copy of a list of persons in Hungary who wished to acquire an exit visa from the Hungarian Government and noted that the list had been delivered to the Hungarian Foreign Ministry. Category one encompassed those applicants who were American citizens. (764.08/10–754)