864.6363/12–1545: Telegram

The Representative m Hungary (Schoenfeld)96 to the Secretary of State

1102. Ruedemann, representative of American shareholders of Maort and Bolton, Standard Oil of New Jersey official, have written me regarding their findings during inspection of Maort oil producing fields and state with reference to Russian activities in their fields that:

(1)
Company owned equipment is removed without requisition or receipt and practice continues in spite of protest;
(2)
Company’s properties are operated in manner contrary to sound oil field practice. Soviet officers issue detailed orders directly to junior engineers or workmen without consulting field superintendent. One engineer who defended company’s viewpoint was ordered from fields;
(3)
Company’s administrative and supervisory staff has no freedom of movement and must secure passes for each trip to fields or particular plants. Ruedemann and Bolton were prohibited from inspecting a plant because they lacked local commander’s pass;
(4)
Company houses needed for company personnel have been requisitioned without compensation for use of Russian military;
(5)
Company workshops are required to repair military vehicles and to supply parts;
(6)
Soviet officer who was refused data pertaining to company’s creditors demanded and obtained from staff in oil fields complete record of equipment purchased from Germany. This officer indicated that compressors obtained from Holland and US were considered to be of German manufacture and Ruedemann fears this statement to be prelude to claiming under Potsdam Agreement97 equipment worth several million dollars.

Letter voices objection to injurious domination of Maort by Soviet Army of Occupation and requests earliest possible intercession to obtain withdrawal of Russian troops from Maort operations.

Dept’s instructions are requested.

Rptd Bucharest as 46; to Moscow as 132.

Schoenfeld
  1. On December 14, 1945, the Senate confirmed the nomination of Mr. Schoenfeld to be American Envoy Extraordinary and Minister Plenipotentiary to Hungary. It was not until January 26, 1946, that Schoenfeld presented his credentials as Minister and the American Mission was changed to a Legation.
  2. See Communiqué of August 2, 1945, section IV, Reparations from Germany, paragraphs 1, 8, and 9, Conference of Berlin (Potsdam), vol. ii, pp. 1499, 1505, and 1506.