Paris Peace Conf. 184.01102/328a: Telegram

The Commission to Negotiate Peace to the Acting Secretary of State

1543. For your information Brown reports following from Budapest

“New Government has decreed that all foreigners shall retain the privileges and rights accorded under former governments with immunity of diplomatic consular and other official representatives. Transfer by inheritance to foreigners forbidden. Kunfi states that government will not apply to foreigners all provisions of social legislation. Consular corps endeavoring to obtain written assurances this matter. Government is facilitating departure of foreigners if provided with passports and visas.

French troops captured by Hungarians within new zone of occupation were released March 31st on urgent demand of British representative Major Freeman. Attempt made by new government to win them over to Bolshevism but without success.

Revolutionary government apparently gaining in strength. Excellent order being outwardly maintained but abuses frequent in execution new laws. There is much discontent among servants of hotels and shops who have saved money but are now on same footing with others who have made no effort. Ordinary workmen however are apparently supporting new regime with more enthusiasm. Reports regarding attitude of peasants and farmers most conflicting. Government will probably make distinction between large and small estates in socialization of land, but will only take up this matter after socialization of industry and commerce. New government is not a government of majority of people but literally a dictatorship of minority and the elections may produce interesting results. Most well-informed people apparently think Hungary would welcome intervention of almost any sort except by French, who have made themselves unpopular.

Revolutionary government is in intimate relations with Russian Bolshevists and Lenine is said to be exerting guiding control in Hungary, and apparently desires that Hungary avoid mistakes and excesses of Russian revolution. There are constant rumors that Russian Bolshevist army is approaching but no confirmation of such reports. [Page 430] Strong conviction exists in Budapest that Bolshevism will soon triumph in Roumania, Bulgaria and Bohemia.

Intervention would require great skill in order to effect most good and least harm. No one connected with Hungarian problem since armistice should be prominently identified therewith because of Hungarian resentment over manner in which they have been treated. It is essential that friendly attitude of Entente towards Hungarians be shown. Food and coal should be sent and possibly blockade lifted in order to help restore economic life. To refuse food would only make Hungarians the more bitter and resentful. A clear declaration by Entente that Hungary will not be dismembered without respecting wishes of all peoples concerned or without conceding right of local autonomy is still more necessary. Such a declaration would prepare way for an easy intervention or strengthen those disapproving of present regime. If Hungarians convinced they will have right of self-determination problem would be vastly simplified.

Recruiting for Red Guard has not met with success and this force does not yet exceed 20,000 men. New government does not possess any serious military strength.

Bela Kuhn is treating American Mission very well. He and most other Hungarians convinced Americans honestly desire fair play and therefore differentiate greatly in treatment of them.”

With reference to last paragraph Brown states that he is not allowing the Hungarians to receive impression that America is disassociating itself from the policy of the Allies as regards Hungary.

Am[erican] Mission