864.00/10–2245: Telegram

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

804. Mytel 801, Oct 22.45 I have received further message this afternoon from Tildy to effect that agreement has now been reached among leaders of Smallholders, Social Democrats, Communists and National Peasant Parties accepting proposal for formation of coalition Govt in which they will all be represented following election November 4. Election is to proceed as scheduled. This agreement is being ratified this evening by political committee of Smallholders Party for submission to convention of party at meeting here tomorrow46 (mytel [apparent omission]). Agreement also contemplates prompt issuance of joint appeal47 to voters on behalf of four parties of independence front setting forth general program for economic rehabilitation on which all parties are agreed including suppression of inflation, black market and speculation, the increase of taxation, the nationalization of sub soil resources and elimination of reactionaries [Page 898] throughout public administration. This appeal is designed to minimize party agitation prior to election day and to elicit maximum unity of public in supporting coalition program. Citizens Democrat Party has not taken part in any of recent political negotiations and may apparently be ignored.

In strictest confidence I am told Tildy believes expected Smallholders majority will have effective Social Democratic support in Assembly this being likely through change in Social Democratic leadership from Szakasits to Peyer. Formal working agreement between Smallholders and Peasant Party is already assured and will give Smallholders overwhelming control of elected National Assembly so that actual composition of the Cabinet then to be established will be less important. In Tildy’s opinion this might even involve increased representation of minority parties in the new cabinet since it will be subject in any case to authority Assembly majority under Smallholders control.

Tildy is now very hopeful that this program will go through. Rakosi is reported most depressed and has accepted above program in a spirit almost of apathy induced by disappointment felt by Soviet representatives in Rakosi’s alleged misleading predictions regarding strength of Communists in municipal election 2 weeks ago. According to this account Voroshilov and Pushkin have not repudiated Rakosi but his attitude is almost the same as if he had been repudiated. Last paragraph mytel 779, Oct. 17.

Schoenfeld
  1. Not printed; it reported that Tildy had sent word to Schoenfeld that the plan for a common electoral list for the Hungarian national elections was abandoned by party leaders on October 20, but party leaders would probably agree to maintain the coalition government after the elections, regardless of the results (864.00/10–2245).
  2. Telegram 814, October 23, 6 p.m., from Budapest, reported that a Smallholders Party meeting of October 23 voted unanimously in favor of the agreement outlined herein (864.00/10–2245).
  3. Telegram 819, October 24, from Budapest, reported that a manifesto signed by the leaders of the Smallholders, Social Democratic, Communist and National Peasant Parties was issued October 24. The manifesto declared that it had been impossible to reach an agreement for a common list of candidates for the forthcoming election. It was agreed that a coalition government would be formed after the election and an election program as herein described was enunciated (864.00/10–1145).