661.6431/11–245: Telegram
The Ambassador in the Soviet Union (Harriman) to the Secretary of State
[Received 12:15 p.m.]
3735. Reply has now been received from Vyshinski dated October 31 referring to our representations on Soviet Hungarian agreement on economic collaboration.53 Paraphrased translation of Vyshinski’s answer follows:
Since the development of Soviet Hungarian economic and trade relations naturally springs from the mutual economic interests of the two neighboring states, the Soviet Government sees no foundation for the uneasiness shown by the Government of US with regard to development of these relations. Moreover it must be kept in view that this economic collaboration contains no element of discrimination against third countries and creates no difficulties in economic relations between Hungary and these countries.
Soviet Government is also unable to agree with opinion of US Government that conclusion of economic agreements with Hungary must be postponed until such time as peace treaty is concluded. Such a position might reflect quite unfavorably on economic situation of Hungary whose economy is considerably upset and needs assistance. [Page 902] Attention must also be paid to following circumstances. Chiefs of three Governments at Berlin Conference recognized it as expedient to act independently in matter of extending recognition to Hungarian Government, not postponing this question until after conclusion of peace treaty. It, therefore, appears all the more natural that conclusion of economic agreements with Hungary, in the restoration of whose normal economic life all the Allies are undoubtedly interested, should not be postponed until after signing of peace treaty. I consider it also appropriate to point out circumstance that although no peace treaty with Italy has yet been concluded, nevertheless at the present time this does not serve to impede the development of economic relations between Italy and US.
Sent Department 3735; repeated London 553; Budapest 55.
- On October 15, Ambassador Harriman had transmitted a communication to the Soviet Foreign Commissariat along the lines of the instruction contained in telegram 2159, October 13, to Moscow, p. 888. Telegram 3866, November 15, 2 p.m. from Moscow, reported a similar reply dated October 30 to British note of October 17 which paralleled the American note of October 15 (661.6431/11–1545).↩