Paris Peace Conf. 184.011102/376
Mr. Albert Halstead to the Secretary of State 98
Subject: The situation in Hungary.
Sir: I have the honor to inform the Department that from information received from Hungary and from talks with various Hungarians the following appears to be the political situation:
The peasants are inclined to believe that a monarchical form of government is best for their country. Having experienced a so-called republican form of government under Michael Karolyi which so soon gave way to bolshevism, they are disposed to regard a democratic form of government as inseparable from the most radical socialism. Naturally conservative and opposed to socialization because they believe it would ultimately be applied to their own land they feel that their own safety and the welfare of the country would best be preserved by the return to a monarchy. As the socialists cooperated either to a greater or less degree with the Bolsheviks they are inclined to regard the average socialist as at least a first cousin to a bolshevik.
The Clerical Party is strongly monarchical and regards a republican form of government as likely to separate church and state and to lessen their moral hold on the people. The large land owners and aristocrats are naturally supporters of a monarchy because a republican form of government will destroy their privileges. A number of industrialists fear that socialism to a greater or less degree will be one of the policies of a democracy.
For these reasons the prospect is favorable for the election of a national assembly which will be ready to restore a monarchy, but one under which the people would have a real voice in the government. Whether a Habsburg would be placed on the throne or some new royal house be selected is not as yet evident.
Minister President Friedrich who is at heart a monarchist is holding on to power in the hope of influencing the election. In the past there has never been a non-controlled election in Hungary and the outlook is not altogether favorable for a really free expression of the popular will.
I have [etc.]
- Copy transmitted to the Commission by Mr. Halstead under covering letter No. 415, August 29; received September 1.↩