740.00119 Control (Hungary)/7–1345: Telegram

No. 798
The Acting Secretary of State to the Representative in Hungary (Schoenfeld)
us urgent

197. Your 2811 and 2862 July 13 have been repeated to Potsdam together with Depts views to the effect that the Russian “order of procedure” appears to cover several of the points we had suggested, notably provision for tripartite agreement on policy directives, but that the language was not entirely satisfactory. While unilateral revision of statutes is of course not in conformity with our position as one of the parties to their original negotiation, we believe Soviet proposals form good basis for tripartite discussion and agreement on revised statutes for second period.

Any further clarification which Key may obtain should be telegraphed Potsdam through military as well as Dept. It is assumed that he will take no action implying acceptance of the Russian revision pending appropriate instructions. (Re your 291 July 163). Meanwhile Dept hopes that political aspect can be worked out at Potsdam along lines of our and Genl Key’s proposals (Deptels 57 May 284 and 124 June 235) with details to be worked out later in Moscow or Budapest.

S[amuel] R[eber]