SWNCC FILE: SWNCC 151 Series, 091 Hungary63

Report by the Chief of the United States Military Representation on the Allied Control Commission for Hungary (Key)64

Subject: Progress Report on Fulfillment of Armistice Agreement with Hungary.65

To: Chief of Staff, for Joint Chiefs of Staff and OPD.

This report is based on information furnished by the Chairman of the Allied Control Commission at a meeting of the Commission held in Budapest on Tuesday, 5 June 1945.66

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Article 1.—Hungary supplied two full infantry divisions (First and Sixth), approximately 10,000 men each, and one incomplete division (Fifth), approximately 7,500 men; only the First Division saw any active service against German troops. In addition, 5,000 special troops for use as border guards have been organized; also approximately 500 men who are employed as guards on trains. It is estimated that the Hungarian Armed Forces do not exceed an aggregate strength of 35,000, approximately one-fourth of which has been organized and armed since the cessation of hostilities. Studies are now being made to determine the peace footing of the Hungarian Armed Forces. The U.S. and British representatives have been asked to submit recommendations on this subject.

Article 2.—The provisions of this article have been fulfilled.

Article 3.—The provisions of this article have been fulfilled.

Article 4.—This article has been practically fulfilled. It is reported that practically all prisoners of war, internees, displaced persons and refugees of Allied nations have been repatriated.

Article 5.—Provisions of this article have been fulfilled.

Article 6.—The Hungarian Government has issued a decree requiring that any property stolen or removed from Allied Territory be surrendered. Very little has been recovered and it is doubtful that any sizeable amount of stolen property will be located in Hungary; any heavy equipment, vehicles or historical treasures removed from adjoining countries was likely taken to Germany or destroyed by the retreating German army.

Article 7.—It is difficult to ascertain how much booty has been delivered to or taken by the Russians. The Chief of the ACC, upon direct questioning, stated at first that no booty had been taken except minor dumps of ammunition, food and military stores. Later, he admitted that the Tungsram Plant, about which considerable correspondence has been exchanged, was taken by the Soviet High Command as war booty. Upon further questioning as to whether any additional industrial plants or commodities had been taken, he stated that a few small war industries might have been taken; he would make further inquiry and furnish the information later.

Article 8.—The Hungarian Government has issued a decree in accordance with the provisions of this article, but little else has been accomplished.

Article 9.—No vessels belonging to the United Nations have been located in Hungary.

Article 10.—No Hungarian merchant vessels, except a few minor craft, have been located in Hungary. It is reported that the Germans sunk all vessels that could not be moved up the Danube out of Hungarian territory.

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Article 11.—The Chairman of the ACC states that the provisions of this article have been fulfilled. Have been unable to obtain information as to the quantity of monies or commodities furnished by Hungary for the functions of the Soviet Command.

Article 12.—The Chairman of the Commission states that discussions with Rumanian authorities concerning the payment of reparations has been under way for several weeks and that the quantities, terms of delivery and prices have practically been agreed upon; there remains some small differences to iron out, but he expects the agreement to be signed very shortly. No action has been taken towards the payment of reparations to Czechoslovakia and Yugoslavia as required under this article.

(Note: a complete list of the indemnities formally demanded by Russia on 14 May 1945 was furnished the Chief of Staff in letter dated 19 May 1945; copies of the minutes of subsequent meetings between the Russian reparation group and the Hungarian Government, together with a copy of the proposed agreement, less annexes, have been obtained from other sources; from the same sources it is hoped to obtain the annexes to the agreement which contain the revised list of indemnities showing quantities, prices and dates of deliveries.)

Article 13.—Little has been accomplished under this article, but it is believed that the Hungarian Government will comply with its provisions where it is physically possible to do so. In reply to a question concerning the probable return of the Tungsram Plant under this article, the Chairman stated that the Hungarian Government would have to pay the American owners for their interest in the property; it had been determined, he stated, that the American interest was much less than had been represented. Asked if the Tungsram Plant was included in the list of reparations, he replied that it was not, that it was taken as war booty because it consisted primarily of war materials which were badly needed by the Soviet High Command. When attention was invited to his previous statement that no booty had been taken under Article 7 he evidenced embarrassment but admitted that this plant had been taken as booty, stating that it was taken by the Soviet High Command over which he, as Chairman of the ACC, had no control, and that information concerning it had been given by Moscow to the U.S. Ambassador.

(Note: The Chairman, ACC, was informed by letter on 6 April that American ownership in this plant was substantial and for that reason its removal was protested. A second letter was written on 17 April and delivered personally by General Key to Marshal Voroshilov; at that time the Marshal stated that he was unaware of American interests but that he would investigate the matter and write General Key in the next day or two. A third letter was written on 20 [Page 826] May categorically requesting whether it was intended to continue removing the plant; whether it was being taken as reparations under Article 12; whether the Hungarian Government had agreed to its transfer as reparations; whether we may receive a copy of the agreement or directive concerning its removal; and whether we may be informed in advance of any subsequent removals under reparations in order that data may be submitted respecting any American interests therein. No reply to this letter has been received; incidentally, the Marshal departed on 21 April for Moscow, returning to Hungary on 29 May.)

Article 14.—Fulfillment of the provisions of this article has been slow; a great many of the war criminals escaped to Germany with the Szalasi67 Government and its army. It is believed that the requirements of this article will ultimately be met.

Article 15.—The provisions of this article are being met.

Article 16.—The requirements of this article are being fulfilled. The Chairman, ACC, states that “normal relations” would likely be restored with outside nations in the near future. When asked if it was meant that a peace treaty would be completed with Hungary, the reply was evasive but it indicated that diplomatic relations would shortly be reestablished.

Article 17.—Civil administration has been restored throughout Hungary except in a few districts west of the Danube; these will shortly be turned back to the civil authorities.

Article 18.—This article was the subject of much discussion at the meeting on 5 June. The Chairman read a letter68 from General Key suggesting that the Chairman express his views on necessary changes in the Statutes governing the organization and operation of the Commission during the second period of the Armistice Agreement. He asked that General Key present his views, which were stated as follows:

“It is felt that during the second period the Commission should function upon a tripartite basis, with active participation by the U.S. and British representatives. To accomplish that, three specific proposals are submitted, as follows:

(1)
That the three governments should be represented on the divisions and sections of the ACC.
(2)
That the U. S. and British representatives would have equal status with the Soviet representative, except that the latter would continue as Chairman but that the U. S. and British representatives would be Vice Chairmen, and that the Commission should operate under standing instructions of the three Allied Governments.
(3)
That all decisions and actions of the Commission should have the concurrence of the three principal representatives.”

When the British representative was asked to express his views he stated briefly that he concurred fully in the proposals of the U. S. representative and felt that his Government would support him.

The Chairman stated that he did not participate in the formulation of the Statutes governing the first period but that Ambassador-Designate Pushkin, who was present, did participate and that he would ask Mr. Pushkin to comment on the proposals. Mr. Pushkin discussed the matter some length;69 the conclusions were that some changes in the Statutes were contemplated but that the U. S. proposals were more far-reaching than the suggestions made by the IT. S. Ambassador during the discussions preceding the signing of the Armistice. The Chairman stated that he was without authority to agree to the proposals as they should be considered by higher diplomatic authority. Asked if he would present them to his Government, he stated that they had already done so following the receipt of General Key’s letter.

Article 19.—The provisions of this article have been fulfilled.

William S. Key

Major General, U. S. Army Chief
  1. State-War-Navy Coordinating Committee.
  2. The Report was referred to the State-War-Navy Coordinating Committee for study and recommendation as Appendix B to document SWNCC 151/D, dated June 18, 1945. The Report accompanied General Key’s Draft of Statutes of the Allied Control Commission in Hungary and his Comments on the Proposed Statutes, both dated June 5, which were included as Appendix A, and Annex A to Appendix A, respectively, to document SWNCC 151/D. For text of the Draft Statutes and the Comments, see Conference of Berlin (Potsdam), vol. i, pp. 375380. For a summary of the Draft Statutes, see telegram 1391, June 23, 3 p.m. to Moscow, p. 832.
  3. For text of the agreement concerning an armistice between the Soviet Union, the United States, and the United Kingdom on the one hand and Hungary on the other, signed in Moscow on January 20, 1945, see Department of State Executive Agreement Series No. 456, or 59 Stat. (pt. 2) 1321.
  4. This was the second meeting of the Allied Control Commission for Hungary.
  5. Ferenc Szalasi, Prime Minister (later “National Leader”) of the German puppet government of Hungary from October 15, 1944. Captured by the American Army in Austria in May 1945.
  6. Letter of June 4 from Key to Voroshilov, not printed.
  7. According to the American minutes of the Second Meeting of the Allied Control Commission for Hungary, Pushkin commented as follows:

    “I took part in the preliminary conference regarding the Agreement. The final Agreement was made between Mr. Molotov and the other representatives in Moscow. Paragraph 18 was taken from the Agreement between Bulgaria and the Allies. In partial explanation, I might say that the statutes were accepted for Hungary but that there were no statutes for Bulgaria, Rumania, and Finland governing the A.C.C. The statutes for Hungary were, therefore, a novel proposition as to the A.C.C.’s. Paragraph 18 was discussed in Moscow but the representatives found so many difficulties it was agreed that the statutes would only be decided upon for the first period and that the agreement as to the statutes of the 2d period would be discussed later.” (Budapest Legation Files: 711.9 Allied Control Commission)