Paris Peace Conf. 184.011102/98: Telegram
Mr. Albert Halstead to the Commission to Negotiate Peace
[Received July 5—2 p.m.]
544. Exchange greetings between Foreign Secretary Müller and Bauer in which latter spoke reunion Germanic people is significant confirmation my telegram as to steady drift to Germany. It cannot be stated too strongly that unless steps are taken for economic federation of this country with new state[s] formerly part of old Empire, such Germanic union inevitable. Many prominent persons oppose but will be driven support it unless German-Austria is left financially and industrially so as to self support and to have free commerce along trade routes created during Empire. It may be too late even now to prevent strengthening Germany through German-Austria which will mean certainly future destruction Bohemia, especially with Hungary reconstituted.
Increased hope manifest that financial and industrial peace terms may give basis for rebuilding industry and commerce and prevent bankruptcy, but alarming extravagance of government, which shows no knowledge of economical administration, is grave danger.
Political outlook temporarily at least brighter but government continues weak and Bauer’s sympathetic leaning towards Soviet Government cause of anxiety. Exposure of Hungarian plot in today’s Neue Tag, which I reported in [telegraphic] news,9 created sensation. The facts as discovered by police (apparent omission) Bauer’s possession for some days, yet Hungarian Ambassador remains here. His presence continual threat national security. All reports from Hungary indicate conviction on part of all peace loving Hungarians that only by outside intervention can communists be overthrown, the situation being repetition of Russian experience on smaller scale. It is certain that even if communism be checked for considerable period, Hungary [Page 538] cannot agree upon stable government. Foreign assistance will be necessary while construction government policy and orderly rule are formulated.
Desire early announcement peace terms so German Austria can begin reconstruction work more earnestly. Her future depends [on?] early and sane rebuilding.
- Telegram No. 543, July 4, 3:40 p.m., not printed.↩