The Representative in
Hungary (Schoenfeld) to the Acting Secretary of
339. Arpad Szakasits[,] President of Social Democratic Party[,] accompanied by Szalai[,] Chairman of Foreign Affairs Committee of party[,] called today to explain that prerequisite to smooth transition to democratic processes in Hungary was assurance of work and essential supplies and individual freedom in default of any of which it would be difficult to stem resort to authoritarian rule in this country. They desired assurance that it2 would use its moral and material power to bring about improved transport conditions and revival of trade in Europe generally and particularly in this area and to exert American influence in behalf of democratic political organization.
Szakasits said he deemed it essential on economic side to facilitate transport equipment for Hungary and to remove trade barriers. He noted that notwithstanding sincere effort of Hungarian people as a whole to win confidence of democratic states Hungarians are still being treated as Nazi satellite nation with attendant discrimination by western powers which discouraged our friends. Social Democrats [Page 722] felt it was indispensable that US should take active part in democratic reconstruction in Eastern Europe naturally in harmony with its Allies. He referred to Acting Secretary Grew’s recent letter to Senator Vandenberg on Polish election3 and to recent editorial in London Times and inquired as to prospects of cooperation among Allies in this area in economic and in political matters.
I intimated there was possibility of early attention being given to transport question with view to meeting this essential need. (Urtel 206, July 194) I assured him US was hopeful of securing cooperation among Allies on general issue of removal of trade barriers. I added US was interested in practical implementation of Crimea Declaration in political matters though I could not predict form it would take but I expressed confidence agreement on such implementation among Allies would result from Potsdam Conference.
… He5 inquired directly whether US proposed to intervene in Hungarian national election when it takes place and whether Soviet garrison would be withdrawn. I answered I had no information as to any such plan but that if Allied supervision of election here were deemed necessary we would expect to have equality in any action taken by Allies.
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Sent Dept repeated to Frankfurt as No. 11 for Matthews.