Foreign Relations of the United States: Diplomatic Papers, The Conference of Berlin (The Potsdam Conference), 1945, Volume I

740.00119 Control (Hungary)/6–2545: Telegram

No. 296
The Representative in Hungary (Schoenfeld) to the Acting Secretary of State

secret
us urgent

Budapest, June 25, 1945—10 p.m.

211. Your 113, June 21.¹ See also Dept’s 84, June 8 and my 176, June 19.²

1. It seems very doubtful that alternatives set forth under heading 1 of British thesis regarding conclusion of peace with Hungary are only choice. So far as I know our Govt has not exhausted possibility of winning Soviet consent to broaden basis of our participation in ACC. Until negotiations with Soviet Union on this subject prove futile we are not justified in assuming that equality in participation in ACC cannot be secured for our representatives. British may be more sensitive to impairment of their prestige here than we need be.

2. It may be expected that peace treaty if concluded will incorporate recently signed reparations agreement between USSR and Hungary³ and will provide for sanctions apart from other political pressure in case of default on part of Hungary thereby affording pretext for unilateral action by USSR against Hungary when default occurs as it easily may. Hence in any case Soviet predominance here will continue after conclusion of peace.

3. Since as reported we have reason to think Hungarian election will not await conclusion of peace treaty if present plans are carried out it is plain that unless we soon secure full equality of status on ACC no election in spirit of Yalta declaration can take place here. Only full participation and cooperation of representatives of all three powers in ACC enabling their respective agents to supervise election effectively throughout this country can insure free expression of national will in any election. We are obligated under Yalta declaration to see free election held here. It is true that declaration does not specify timing of such election with reference to conclusion of peace but we can safely assume that no fair election will take place here unless the three allied powers take active part in preparing for and supervising it either before or after conclusion of peace. For these reasons I have recommended that Dept make persistent effort at Moscow to secure more than nominal American participation in ACC before any electoral law is promulgated here and an election is held thereunder.

In general it seems to me there is real risk of forfeiting such respect on part of USSR as we painfully gained during European hostilities if we accept prematurely British assumption cleavage between great powers in this area cannot be bridged thereby giving up fundamental principles previously agreed on at Yalta and in Hungarian armistice negotiations at Moscow.

I respectfully renew recommendation that every possibility be explored of securing agreement with Allies regarding any action of ACC in Hungary before giving consideration to alternatives. Townsend concurs.

Sent to Dept rptd to Moscow as 16 and to London as No. 2.

Schoenfeld

1. See document No. 290, footnote 1.
2. Neither printed.
3. Signed June 15, 1945. Not printed.