740.00119 Potsdam/7–2845

No. 824
The First Secretary of Embassy in Portugal (Cannon) to the Assistant Secretary of State (Dunn)

Memorandum

Subject: Proposed Statutes for ACC for Hungary.

The document covered by Colonel Gerhardt’s memo of July 231 is a draft of statutes for the Allied Control Commission in Hungary, to replace, for the “second period” of the armistice, the statutes adopted at the time the armistice was negotiated.

This matter is in active discussion at the present Conference, on the basis of letters of modifications in the armistice control procedure in Rumania, Bulgaria, Hungary and Finland. We understand that [Page 726]Mr. Molotov will present a paper on the subject at the next meeting of the Foreign Secretaries.2

It is suggested that the SWNCC draft be regarded as superseded by events, or, if that is not administratively practicable, that it be held pending, for revision in the light of the discussions now in course.

The State Department could entirely approve this draft. The discussions now taking place indicate, however, that the Soviet Government will probably be unwilling to accept some of these provisions.

The Delegation is holding the paper for use in the current negotiations.

C. W. Cannon