661.6431/10–1345: Telegram
The Secretary of State to the Ambassador in the Soviet Union (Harriman)
2159. Please transmit communication along following lines to Soviet Govt:
The “agreement for economic collaboration” recently negotiated by the Soviet and Hungarian Govts is a matter of considerable interest to this Govt, particularly in view of its desire to see re-establishment of of mutually advantageous trade and other economic relations between Hungary and United Nations as soon as political and economic conditions permit. US Govt has hoped that three principal Allied Govts in accordance with obligations undertaken would find it possible in interim period prior to establishment of permanent Govts and conclusion of peace treaties to concert their policies in assisting Hungary and other liberated and ex-satellite states in Europe to solve their pressing economic problems. US Govt holds view that long-term arrangements between Hungary and an Allied Govt of so broad and fundamental a nature as those contained in prospective Soviet-Hungarian agreement for economic collaboration are of common concern to the other parties to the Armistice and should await conclusion of a more permanent arrangement terminating the Armistice. These considerations of course do not apply to agreement for exchange of commodities recently concluded between USSR and Hungary.
As in case of Soviet-Rumanian economic agreement of May 8, 1945, on which US views were expressed in note of July 19 (reDeptel 1621 July 16 and Embtels 2634 July 19, 2896 Aug 1416) US Govt is concerned over possibility that in practice some of clauses of treaty might work out in such way as to prejudice US interests and to deny to states other than USSR equal access to Hungarian markets and raw materials and equality of opportunity to engage in trade with Hungary. US Govt feels sure however that should Soviet Govt agree to consult on this subject full interchange of information among three Allied Govts would make possible agreement which would dispel present misgivings of this Govt and would pave way for such joint steps as it may be possible for the three Govts to take toward economic rehabilitation of Hungary. Assistance to Hungary should of course [Page 889] be considered in proper relationship to programs for rehabilitation of liberated Allied nations in Europe.
It is requested that Soviet Govt consider, desirability in light of factors set forth above of deferring implementation of agreement with Hungary until after armistice regime in Hungary has been terminated and peace treaty has been concluded. Meanwhile US Govt would be glad to discuss with Soviet and Brit Govts formulation of program of economic collaboration which would assist economic recovery of Hungary.17 End Communication.
This tel rpted London for informal discussion with FonOff and to Budapest for info only.18 Dept would like to know Brit views on points raised.