Foreign Relations of the United States: Diplomatic Papers, 1945, Europe, Volume IV

661.6431/7–1745: Telegram

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

Washington, July 23, 1945—6 p.m.

211. The question of general economic relations with regard countries of Eastern Europe including Hungary (urtel 298 July 17² which has been repeated to Potsdam) has been submitted to the President for discussion at the meeting Big Three.³

As you know, this Government is opposed to exclusive and preferential economic arrangements between countries. The Dept. is interested in reestablishing trade relations on nondiscriminatory, most-favored-nation basis with countries of Eastern Europe as soon as internal economic and political conditions permit.

Initially as an interim measure prior to the removal of wartime trade controls it might be possible for some transactions to be arranged between Hungary and the U.S. on basis of exchange of goods. Please inform Dept. of commodities which Hungary might have available for export to countries other than Soviet Union.

Department is interested in receiving copy of proposed trade agreement and information concerning plans for trade meetings among countries of Eastern Europe.⁴

Repeated to Moscow as 1669.

Grew

[President Truman, British Prime Minister Churchill (and later British Prime Minister Attlee) and Generalissimo Stalin, with their advisers, met in conference at Berlin, July 17–August 2, 1945. Among the decisions taken at the conference, several had reference to Allied policies with regard to Hungary. The United States, British, and Soviet Governments charged the Council of Foreign Ministers with the task of preparing peace treaties for Bulgaria, Finland, Hungary, and Rumania. The three Governments agreed to examine the establishment of diplomatic relations with Finland, Rumania, Hungary, and Bulgaria and expressed the conviction that the Allied press would enjoy freedom to report developments in those countries. The three Governments also agreed that revision of procedures of the Allied Control Commissions for Rumania, Bulgaria, and Hungary would be undertaken. Regarding these decisions, see the Report on the Tripartite Conference of Berlin, issued as a communiqué on August 2, 1945, and the Protocol of the Proceedings of the Conference, signed at Berlin on August 1, 1945, Conference of Berlin (Potsdam) volume II, pages 1499 and 1478, respectively. For references to the minutes and records of the meetings of the conference and other documentation contributing to these decisions, see ibid., page 1621, entries in index under Hungary.]

2. Not printed; it reported that the Hungarian Minister of Industry had prepared a draft Soviet-Hungarian trade agreement for submission to the Soviet Government patterned after the recent Soviet-Rumania a trade agreement (661.6431/7–1745).
3. Department of State recommendations regarding United States and Soviet economic relationships in the countries of Eastern Europe, prepared for President Truman for his use at the Tripartite Conference of Berlin, were set forth in an undated Briefing Book Paper, Conference of Berlin (Potsdam), vol. i, p. 420. Apparently there was no discussion of these problems during the Conference of Berlin.
4. Telegram 1135, December 21, 1945, 4 p.m. from Budapest, summarized the status of Hungarian economic agreements with foreign countries; trade agreements had been concluded with the Soviet Union on August 27, Czechoslovakia on August 16, and Rumania on July 20; a tentative trade agreement was negotiated with Poland on October 4, and an unofficial trade agreement was concluded with Carpatho-Ukraine on July 25 (661.6431/12–2145).