Budapest Legation Files: 711.9 Allied Control Commission: Telegram
The Chief of the United States Military Representation on the Allied Control Commission for Hungary (Key) to the War Department
[Received May 7—2:24 a.m.]
Z–920. Armistice agreement with Hungary and statutes of Control Commission entitle American and British representatives to certain information during first period, namely prior to end of hostilities with Germany.
Refer to article 18 of agreement and paragraphs 4 and 5 of statutes. Notwithstanding cordial personal relations with Soviet personnel,, many difficulties have been experienced during first period in obtaining information respecting actions contemplated or completed even [Page 813] when operating under prescribed statutes—the Tungsram case33 for example.
In view of approaching end of hostilities with Germany and consequent beginning of second period for Control Commission, I am apprehensive that there may be no change in Russian policy of unilateral action unless definite procedure is agreed upon to provide that Commission will function upon equal, tripartite basis during second period with equal right to participate in regulation and control as provided in article 18 of agreement and paragraph 1 of statutes. Would recommend a supplemental agreement at highest level fixing procedure, organization and functioning of Commission during second period.
See paragraph 2 of letter from British Minister Balfour to Molotov dated January 20.34 Would welcome opportunity to amplify my views personally if so desired.
-
During April and May 1945, the Soviet military authorities dismantled and removed from Hungary the plant of the United Incandescent Lamps and Electrical Company (Tungsram) in which there was alleged to be a substantial American interest. Major General Key protested to Marshal Voroshilov against the dismantling and removal of the plant to the Soviet Union. Telegram 917, April 19, 7 p.m., to Moscow, instructed the Embassy as follows:
“Please inform the Soviet Government of the American interest in this property and call attention to the protests against its removal which have been made by General Key. You may state our position in vigorous terms and say that we do not understand the failure of the Soviet authorities in Hungary to halt the dismantling and removal of the property after the receipt of General Key’s communications, and request that instructions be sent at once to the ACC to stop further removals and to return what has been taken”. (740.00119 EW/4–1645)
Telegram 1960, June 7, 10 p.m., from Moscow, reported receipt of a letter from the Soviet Foreign Commissariat dated June 7, 1945, which stated that the Tungsram factory was predominantly Hungarian and German and that American pre-war investment was insignificant, that the factory passed completely under German control during the war, and that the Hungarian Government, which voluntarily transferred the factory to the Germans, should reimburse American share holders for their losses (740.00119 EW/6–745).
↩ - Same as letter of January 20 from Mr. Balfour to Mr. Harriman, p. 800.↩