740.00119 E.W./6–645: Telegram

The Representative in Hungary (Schoenfeld) to the Secretary of State

126. Key informs me second meeting ACC was held last night. He brought up question of changes in procedure necessitated by post hostilities phase and on request of Voroshilov for suggestions spoke in sense of three general points made in Deptel 57 of May 28. Chairman asked Edgcumbe whether he had suggestions to submit and Brit Rep endorsed Key’s general statement. Voroshilov had previously recd Key’s letter of June 460 calling in general terms for consideration of question of changes in procedure for post hostilities phase and said [Page 823] matter had been submitted to Moscow. Russians gave no indication of being informed as to our Embassy’s representation at Moscow.

Key, who leaves for Washington tomorrow, is bringing with him draft of proposed new statutes for ACC61 with full report of yesterday’s meeting,62 also including discussion of reparations. On this point chairman stated at meeting that Russian Hungarian reparations agreement was practically completed and would be communicated to other Reps upon signature which remains outstanding.

Chairman intimated Czechs and Yugoslavs would be expected to conclude their reparations agreement with Hungary under auspices ACC.

Answering Key’s inquiry under what provisions of armistice agreement Tungsram and other American owned plants had been dismantled and removed Russians denied they were taken as reparations but were evasive as to whether they were considered war booty or military supplies, suggesting finally they might become American claims under article 13 of Armistice.

Sent Dept repeated to Moscow as 12.

Schoenfeld
  1. Not printed.
  2. For the text of General Key’s Draft of Statutes of the Allied Control Commission in Hungary, see Conference of Berlin (Potsdam), vol. i, p. 375. For a summary of the Draft Statutes, see telegram 1391, June 23, 3 p.m. to Moscow, p. 832.
  3. Report by the Chief of the United States Military Representation on the Allied Control Commission for Hungary, 6 June 1945, infra.