740.00119 E.W./10–2044: Telegram
The Chargé in the Soviet Union (Kennan) to the Secretary of State
[Received 9:30 p.m.]
4011. ReEmbs 3965, October 17, 2 p.m.42 The British Ambassador has informed me that when Mr. Eden lunched with Molotov on October 17 he objected to Article XIII of the Hungarian terms and added that the American Government also felt strongly about it. In general he based his objection on the considerations set forth in the Department’s 2438 of October 14, midnight. Molotov came forward [Page 916] with an offer of 20% of the $400,000,000 to be set aside for Czechoslovakia and Yugoslavia. Eden held out for a greater sum.
When Eden saw Stalin that evening the latter raised the subject and offered to reduce the sum to $300,000,000, of which $100,000,000 would be set aside for the “little countries”. This was agreed to by Eden subject to consent of the American Government.
I understand that no written communications have been exchanged on this specific subject. The British Ambassador, however, sent a; communication to Molotov on October 18 stating that once the Hungarian armistice terms had been agreed upon by the Soviets, British and Americans the question would arise as to the best manner of securing Czech and Yugoslav concurrence. Clark Kerr’s letter continued that it seemed to the British Government that there were two possible procedures: (a) A joint communication might be made to the Czech and Yugoslav Governments in London by the Soviet, British and American Ambassadors accredited to those Governments; (b) a joint communication might be made to the Czech and Yugoslav Ambassadors in Moscow by the American and British Ambassadors. The letter concluded by stating that the British Government would be ready to agree with the views of the Soviet Government with respect to the method of consultation. No reply has yet been received to this communication. The British Ambassador has informed me that he assumes that no reparations clause along those lines would be submitted to the Hungarians until concurrence of the Yugoslav and Czech Governments had been obtained.
The British Embassy also informs me that it has suggested to its Foreign Office that attempts be made to bring the Soviet draft more in line with the latest Bulgarian draft,43 especially with respect to Articles I, XI, and XVIII and to include in the Hungarian draft the second paragraph of Article XVIII of the Bulgarian draft.
I understand that the British are reporting in full on these matters today.
The Russians have not yet suggested the resumption of tripartite conversations of the Hungarian terms. Vyshinski intimated to me yesterday in conversation that they were waiting for further clarification of the situation in Hungary.
I would be grateful if the Department would communicate this information to Ambassador Harriman.44
Repeated to London as No. 230 and to AmPolAd Caserta.