661.6431/11–1945: Telegram
The Secretary of State to the Representative in Hungary (Schoenfeld)82
752. Reurtel 934 Nov 19. Unless you perceive objection, you may convey substance of following to Hungarian Foreign Minister, and reaffirm at your discretion previous communications to the Hungarian Govt based on Deptels 534 and 536 Oct 13,82a 590 Oct 26 and 685 Nov 16.
This Govt is attempting to secure general agreement on principles of world trade which will enable commercial relations to be conducted on a multilateral nondiscriminatory basis. Essential to this objective is reconstruction of economic life in war-ravaged countries. This Govt is willing to collaborate with other principal Allied Govts in working out concerted plan for reconstruction and rehabilitation looking toward the economic recovery of Hungary, and has expressed its willingness to discuss such a program with the other Allied Govts. In the meantime, efforts are being made to facilitate resumption of trade between Hungary and private traders in the US.
Hungarian Govt, in determining its position on proposed Soviet-Hungarian economic collaboration agreement, should be aware: 1) This Govt would be concerned if in practice some of the provisions of the agreement should prejudice US economic interests in Hungary or deny to states other than USSR access to Hungarian markets or raw materials and opportunity for trade and investment in Hungary equal to that accorded the USSR; 2) This Govt intends to seek, at the time of conclusion of peace treaty with Hungary, assurance of most-favored-nation rights and guarantee of nondiscriminatory treatment of US nationals, associations and corporations in Hungary, without limitation to the treaty of 1925.
For your information, it is understood that the British propose taking the position that their prewar rights and interests including [Page 916] most-favored-nation treatment are categorically restored by armistice agreement with Hungary. For your further information, Dept is considering possibility of an agreement with the Hungarian Govt prior to the peace treaty recognizing renewed validity of US-Hungarian treaty signed June 24, 1925, as demonstration of US interest in resuming mutually advantageous commercial relations with Hungary and protecting American interests. Dept not disposed at this time to make statement on whether all or parts of treaty may have survived state of war. In the meantime, Dept takes position that Hungary is not in position to take action inconsistent with US rights under the treaty of 1925.
- Repeated to Moscow as telegram 2425. Telegram 1008, December 3, 5 p.m. from Budapest, reported that Schoenfeld had spoken to Prime Minister Tildy in accordance with the instructions set forth in this telegram and had left a memorandum confirming his oral statement. Tildy expressed the view that the American statement would strengthen the position of the Hungarian Government in dealing with the matter of the Soviet-Hungarian economic collaboration agreement. (661.6431/12–345)↩
- Telegram 536, same as telegram 2159, October 13, to Moscow, p. 888.↩