Moscow Embassy Files for 1946, Lot F–96.
The Chief of the United States Representation on the Allied Control Commission for Hungary (Weems) to the War Department
priority
Z–3543. Subject is special meeting of ACC on afternoon of 24 July. Meeting was called by the Acting Chairman of ACC, Gen Sviridov. Present were British,59 American and Soviet representations.
The meeting was called by the Acting Chairman in response to letters from the British and American representations of 15 July protesting demands made on Hungarian Govt thru Acting Chairman ACC (see my Z–3439 of 17 July60). The Acting Chairman asked [Page 327] Gen Edgcumbe what he had in mind for discussion about the demands of the Soviets on the Hungarian Govt. Gen Edgcumbe explained that article 15 had been discussed on the 23 April meeting and that he could not understand why these new demands were made without being consulted as a member of the ACC in accordance with the Potsdam Agreement.61 Gen Sviridov then asked me if I had some special matter to discuss on the same subject and I explained that my letter was written by direction of my govt and did not question the existence of Fascist organizations in Hungary but called attention to the manner in which these demands were unilaterally presented to the Hungarian Govt by the chairman without consultation of the commission. Gen Sviridov thereupon boiled the agenda down to 3 points; first, the understanding as reached on the 23 April meeting of the ACC; second, info as to existence of Fascist organizations; and third, why he did not place the matter on the agenda for consultatation with other members.
Gen Sviridov went to great length to explain that at the 23 April meeting it was agreed that the Hungarian Govt was fulfilling or attempting to fulfill its obligations in respect to article 15 but in spite of their efforts certain Fascist and pro-Fascist organizations have been discovered. He further stated that the Hungarian Govts reply to his letter of June 28th indicated that they are making a sincere effort to dissolve these organizations.
As to existence of Fascist organizations, he summarized the contents of his letter of June 28th to Hungarian Govt and went at considerable length in describing other organizations not mentioned in his letter of June 28th (see State Dept files for copy of Soviet demands and Hungarian Govts reply). He stated that the Hungarian Govt could not challenge any facts as presented by the Soviet High Command and they decided to fulfil the demands. He remarked that he thought any military command would have done the same in order to protect self.
As to why he did not place the matter on the agenda for consultation with other members he stated that the ACC had never had any case where demands of the British or American Govts were put on the agenda and discussed. He further stated that as a rule he sends demands of Soviets to the Hungarian Govt without any discussion or conference of the ACC and thought that he was correct in this case and stated that he could not see why the ACC should have the right to discuss demands of the Soviet High Command. He mentioned [Page 328] that the American Govt had made demands on the Hungarian Govt as in the Maort Oil Co case63 and that these letters were sent to the Hungarian Govt and not acted upon by the ACC. He stated that his letter contained demands sent by the Soviet High Command and it was not a directive as mentioned in the statutes of the ACC and he did not consider that a discussion by the ACC of demands by any of the Allied Govts would be proper. (Comments: It should be noted that the demands in reference to the Maort Co by our Govt were made on the Soviets and not the Hungarian Govt. Furthermore, a study of the articles and statutes as proposed by Marshal Voroshilov clearly indicated that this is purely a matter for the ACC on a tripartite basis.) I stated that since the concept of Fascist and pro-Fascist organizations was clearly set forth in article 15 and that discussions had already been made in a meeting of the ACC it appears that the matter clearly falls within the province of the ACC. The matter then resolved itself into whether or not it is an important question and item stated that item considered it important.
Gen Sviridov was asked if he would make reply to our letters of July 15th, and replied in affirmative.64 He was also asked if he could give us a copy of the Soviets directive to the Hungarian Govt and the reply thereto. He stated that he could not do this without permission from Marshal Voroshilov which he would attempt to get.
The Acting Chairman mentioned that the Hungarian Govt had asked the ACC if there were any objections to establishing diplomatic relations with Italy, Bulgaria and Rumania and the Spanish Govt in exile (Giral),65 and asked if the other members had objections. I stated there appeared to be no objections except in the case of the Spanish Govt in exile and that in view of my Govt’s attitude toward this Govt in exile item [I?] would reserve my view until a later meeting. Gen Edgcumbe agreed.
Comments: Gen Sviridov appeared somewhat ill at ease in this meeting and item was led to the conclusion that he did not concur with [Page 329] the contents of the letter nor the procedure. From a reliable source it is reported that Mr. Gregorieff (next under Pushkin) was the formulator of the demands and was working in collusion with the Communist party in Hungary. It is further reported that Moscow authorities now think this was a blunder. Gregorieff was recently sent to Moscow and the Soviet ACC authorities here have stated to us that he will not return to Hungary.
Complete notes on this meeting have been sent to War Dept.
[An official train under United States command bearing the restored Hungarian monetary gold from Frankfurt, Germany, arrived in Budapest on August 6, 1946, and was received ceremoniously by Hungarian authorities including Prime Minister Nagy and Finance Minister Gordon as well as by American representatives including Minister Schoenfeld and Brigadier General Weems. On the following day, Minister Schoenfeld issued a statement to the press regarding the gold returned to the Hungarian National Bank. For text of the Minister’s statement, see Department of State Bulletin, August 18, 1946, page 335.]
- Maj. Gen. O. P. Edgcumbe.↩
- Not printed. Instructions to make the protest referred to here were contained in telegram 678, July 11, to Budapest, p. 323.↩
- At their meeting on April 23, 1946, the Allied Control Commission agreed that article 15 of the Hungarian armistice relating to Fascist and pro-Fascist organizations should be considered as having been fulfilled by the Hungarian Government.↩
- Reference is to the case of the American-owned Hungarian subsidiary of the Standard Oil Company of New Jersey, Magyar Amerikai Olajipari Reszvenytarsasag (Maort). Maort’s three producing oil fields in southwestern Hungary, which provided the bulk of Hungarian oil production, had been occupied by Soviet forces during the liberation of Hungary. Soviet authorities had taken measures to assure that production in the fields was maintained above a certain level, considered by the Maort management to be permanently damaging to the fields. Representations were made by American officials to the Allied Control Commission and to the Soviet Government in Moscow during 1946 to bring about the withdrawal of Soviet occupation and control of the fields. No solution in the question was reached during the year.↩
- According to telegram 1421, August 1, 1946, from Budapest, Sviridov’s formal letter of reply to Weems’ protest merely stated that full information on all questions had been given at the Allied Control Commission meeting of July 24 (740.00119 Control (Hungary)/8–146).↩
- The United States did not recognize the so-called “Spanish Republican Government in Exile” headed by José Giral.↩