Foreign Relations of the United States, 1946, Paris Peace Conference: Proceedings, Volume III

740.00119 Council/7–1946: Telegram

The Assistant Secretary of State (Dunn) to the Secretary of State

secret

Paris, July 19, 1946—1 p.m.
[Received July 20—1:23 p.m.]

3556. Delsec 728 From Dunn for the Secretary.

1. The Deputies approved last night the five draft treaties.¹² They were sent out late in the evening to the missions in Paris of the member states of the Peace Conference.

2. In the Deputies meeting Gusev strongly objected to the inclusion in the Hungarian treaty of the explanation of our reservation to article 21 on reparation.¹³ He maintained that it constituted an expression of a general political nature which went beyond a statement of the position of a delegation on an un-agreed upon article and that as such it should not be included in the draft peace treaty. He insisted that our position be limited merely to stating that we reserved the right to reopen the question of reparation at the Peace Conference. In an endeavor to reach agreement the British Deputy suggested that the entire US statement be included in the English text of the Hungarian treaty and that the Russian text be limited to a statement that we reserved the right to reopen the question. Gusev replied that if we insisted on including the entire statement the Soviet delegation would insist that a statement of the Soviet point of view on Hungarian reparation be included which would make mention of Hungarian gold and other assets held by the Allies. We replied that we would welcome such a statement. Gusev thereupon accepted the British compromise. The Hungarian treaty in the English and French texts, therefore, contains the full statement of our position on reparation, whereas, the Russian text merely states that we reserve the right to reopen this question at the Peace Conference.¹⁴

3. In our discussion on the issuance of the draft treaties to the ex-enemy states the British representative stated that his Government did not believe it appropriate that such states should be informed at this stage of those sections of the treaties in disagreement and of the position of the various delegations thereon. His Government would not object to the agreed upon articles going out to the ex-enemy states in 2 or 3 days after the entire drafts had been communicated to the member states. We stated that we preferred that the entire drafts be sent out but that if no agreement could be reached we would agree to the issuance of only the agreed upon articles. Gusev stated that he had no instructions to send out only the agreed texts. The British and Soviet Deputies agreed to communicate with their Governments on this question and to seek instructions.

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Dunn

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12. For texts of the five draft peace treaties, see vol. iv, pp. 1–116. Meetings 100–106 of the Deputies of the Council of Foreign Ministers took place during the period July 13–July 29. The Deputies were charged with the final preparations for the Peace Conference including final drafting of the draft peace treaties drawn up by the Council. CFM File, Lot M–88, Box 2066 contains records of decisions and United States delegation minutes of the Deputies’ meetings; other documentation is found in file 740.00119 Council.

13. On June 21, 1946, the United States delegation submitted to the Council of Foreign Ministers a memorandum (C.F.M. (46) 126) which contained a complete draft treaty of peace with Hungary. The reparations article was the same as had been originally proposed by the Soviet Union, but a reservation and an explanation thereof was appended. The reservation and explanation read as follows:

    “The U.S. Delegation reserves the right to reopen this question at the Peace Conference.

    At the time of the signature of the Armistice Agreement with Hungary the United States Government reserved the right to reopen the question of the execution of Article 12 of that Agreement (which deals with reparation) if, in the light of later circumstances, it should be found that American interests were being unwarrantably prejudiced.

    The United States Government has been concerned regarding general economic conditions in Hungary, which have deteriorated steadily and which are approaching the point of the complete collapse of the economy of the country. When it appeared that this deterioration, to which the heavy burden of the armistice requirements has contributed, was such as to jeopardize even minimum living standards for the people and to render them unable to play a useful part in world recovery, the United States Government on March 2, 1946, proposed to the other signatories of the Crimea Declaration on Liberated Europe that the situation in Hungary be studied with a view to devising a program which would not only arrest the economic disintegration but also provide a framework within which the rehabilitation of that country would be possible. The United States Government regards the economic collapse of any country as affecting American interests. It continues to believe that a study such as it has proposed should be undertaken by a commission composed of representatives of the powers concerned.”(CFM Files)

14. At the next meeting of the Deputies (104th) on July 27, 1946, the Soviet representative changed his position on this matter and declared that the Soviet Union could not agree to the inclusion of the American reservation and explanation in any printed draft of the treaty to be submitted to the Peace Conference. After a long but inconclusive discussion, the Deputies agreed to circulate the draft treaties with Italy, Rumania, Bulgaria, and Finland, but to hold up the draft treaty with Hungary until agreement could be reached. (CFM Files)