The Secretary of State to the Commissioner at Budapest ( Grant-Smith )
306. Your 305, July 18th, 1 p.m.
You may state to Minister of Foreign Affairs that this Government would welcome declaration by National Assembly, without reservations, that the stipulations recited in Peace Resolution July 2nd with respect to rights, privileges and interests of the United States are accepted. This could be stipulated by agreement between the two governments to same effect. This agreement can be succinctly framed and proper authority be telegraphed to you for execution on behalf of this Government.
Think it advisable that National Assembly should act at once if such action is either necessary or will give assurance of execution of agreement by Hungarian Government. Do not wish to rely solely on Resolutions but should have appropriate agreement promptly. Such agreement will probably be in form of treaty subject to Senate’s approval. Prefer that there should be nothing in this agreement except that United States shall have all rights, interests and advantages stipulated in Peace Resolution July 2nd. Purpose is to secure beyond question benefits of Treaty of Trianon, although not ratified by the United States, and should prefer explicit reference to that Treaty in interest of definiteness unless Hungarian Government desires simply to mention Peace Resolution which refers to it.
To avoid delay, my desire is that this agreement should be limited to this subject. Upon its ratification diplomatic relations will be established. Subsequently the two governments may undertake [Page 252] negotiations for any additional agreements that may be found to be desirable. You may in your discretion use this information in discussion with Foreign Minister.