Paris Peace Conf. 184.011102/258

Mr. Albert Halstead to the Secretary of State88

No. 16

Subject: The change of government in Hungary.

Sir: I have the honor to make the following comment upon the change of government in Hungary:

Evidence had been accumulating for several weeks that the regime of Bela Kun was growing weaker. The army was very dissatisfied with the withdrawal from Slovakia. This discouraged the Hungarians [Page 623] who had served with it for national reasons, and who opposed Kun’s regime but suffered it in the hope of retaining more territory for Hungary than they thought would otherwise be possible. The blockade on the Hungarian border was another influence. The stoppage of coal shipments for threshing and industrial purposes, of raw materials, of paper for publications and commercial uses paralyzed the country.

The efficiency of the blockade was wholly due to the work of the American detachment at Brück-an-der-Leithe, at Ebenfurt, and at Wiener Neustadt. There were many indications of the discouragement caused by American efficiency and the refusal of the soldiers to be bribed. Whether Dr. Bauer acted on his own initiative or on the suggestion of someone else, perhaps persons now forming the Hungarian Government, or when he proposed to Colonel Cunningham, the British Representative, that William Boehm, former commander of the Red Army who came as Minister in succession to Czbol, is not clear. At any rate those conferences (which were reported to all Allied Missions), undoubtedly had great influence in the overthrow of Bela Kun.

Unquestionably the defeat of the Red Army at the hands of the Rumanians and the latter’s rapid approach to Bucharest had a very great contributing effect.

The Hungarian difficulty now is to secure cooperation between all classes of that country so that orderly elections may be held in due course, and a government may be constructed which has the support of all the people. The proclamation of the new government gives no indication of any present intentions to cooperate with the peasants or with the citizens. However, unless within a reasonable period there be cooperation between all the classes the new government cannot expect to have popular support, because the workmen are in a large minority in Hungary and their strength lies almost wholly in the cities. Though the morale of the Red Army is broken that body is still a force.

The present government, though not wholly representative, is a decided improvement upon the rule of Bela Kun. It intends to preserve order, will evidently respect private property and will not engage in terrorism. While not ideal in its form it would seem to deserve favorable consideration as a temporary solution of the Hungarian difficulty.

It is respectfully suggested that if order is to be preserved in Hungary the blockade should not be continued, but should be lifted immediately and coal, raw materials, and food products should be permitted to come in. An allied committee to cooperate with and advise the cabinet would seem desirable. It could make it apparent that the new [Page 624] government in due time, that time depending upon developments—will be replaced by a representative cabinet.

It is further suggested that in the meantime efforts should be made to secure cooperation between the peasants and the people represented by the so-called government at Szeged with a view to making arrangements for a general election.

While preparations for elections are being made it would seem as if it should be possible to receive in Paris representatives of the Labor Government of the peasants and of the Szeged Government. Each party could present its views as to the peace terms so that the Peace Commission may prepare a treaty for the signature of the representative government when that is organized. This would enable Hungary to be at peace with its present legal enemies at an earlier date than if negotiations were delayed until a representative government has been formed.

The present government should of course be required to comply strictly with the armistice conditions. The present government seems to offer such a government as that contemplated in the notice of the Allied and Associated Governments dated July 27th, which was forwarded to me in Telegram No. 142 of that date.89

I trust I may be understood as not recommending recognition of the new government but of advising that it be utilized as the Mannerheim dictatorship in Finland was used to help restore order and to permit elections to be held.

The Hungarian Government is not ideal but it is the best that is at present possible. The new Minister President, Julius Peidl, was a prominent official in labor union affairs during the Hapsburg rule. He is not a Bolshevik and is very well respected. Garami, the Minister of Foreign Affairs is the one person prominent in Hungary of whom no one who has talked with me on the Hungarian situation has any criticism to make and of whom everything favorable has been said. Garbai was in the Kun regime as a cabinet member but left, and is respected. He is a metal worker. Payer is also a metal worker of correct habits, clear headed and is very strong with labor. Haubrich is energetic, capable, and though a member of the Bolshevik cabinet was no communist. Agoston, a strong man, is the only university graduate in the present cabinet. Miakits is also a metal worker and not a bolshevik.

The cabinet as a whole is reasonably good and the overthrow of Bela Kun cannot be regarded as a subterfuge for the maintenance of a bolshevik regime.

I have [etc.]

Albert Halstead
  1. Copy transmitted to the Commission by Mr. Halstead under covering letter No. 368, August 3; received August 5.
  2. Not printed; for text of statement, see HD–15, minute 2, vol. vii, p. 317.