Paris Peace Conf. 181.9202/119: Telegram
General Bandholtz to the Commission to Negotiate Peace
[Received September 18—2:55 p.m.]
75. Despite assurances to the contrary from Roumanian sources latest reports indicate that Roumanians are leaving certain portions of Hungary. Another scheme is on foot for the impoverishment of the Hungarians. During Bolshevist regime 3½ billion kronen of money was printed by them. This is called white money to distinguish it from the former currency which is called blue money and the relative value of the two today by decree is 5 kronens white money for 1 kronen blue money. The French insisted that the Hungarian Government redeem with blue money at par about 300,000 kronens worth of white money in the possession of French subjects and agreed to give a quit claim which understand has been done. The Roumanians then demanded that the Hungarians give them 20 million kronens of blue money for 20 million kronens of white money. In the hope that this would result in getting white money out of the hands of the Roumanians and leave them only blue money with which to make payments this was verbally agreed to. The Roumanians now demand that 50 million kronen of white money be redeemed immediately with 50 millions of blue money and that a total of 150 million white money be redeemed in like manner within 3 weeks. If this is done Hungary will have no funds with which to make any payment for food and other supplies. I laid the matter before the Mission this morning and it was decided to protest to the Roumanian military commander against any such procedure. Radio reports are that Bratiano has resigned as Prime Minister of Roumania. French representative and British representative have each received message from his Commission [Page 682] in reply to the Interallied Military Mission’s telegram44 relative to Roumanian [Hungarian] request concerning present Ministry. No instructions have yet reached me but it is understood that Clemenceau’s to General Graziani was intended for the entire Mission which is acting accordingly.
- No. 292, September 8, vol. vii, p. 216.↩