Foreign Relations of the United States, 1946, Paris Peace Conference: Documents, Volume IV

CFM Files

Record of Recommendations by the Conference on the Draft Peace Treaty With Hungary

undated

I. By a majority of two-thirds or more.

a. Articles of the draft treaty drawn up by the Council of Foreign Ministers adopted without modification.

• Article 2.^*
• Article 3.
• Article 5.
• Article 6.
• Article 7.
• Article 8.
• Article 9.
• Article 10.
• Article 11.
• Article 12.
• Article 14.
• Article 15.
• Article 16.
• Article 17.
• Article 18.
• Article 19.
• Article 20.
• Article 22, §§ 3, 4, 5, 6, 7.
• Article 23, §§ 5, 6, 7, 8a, 8c.
• Article 24.
• Article 27.
• Article 28, §§ 1, 2, 4, 5.
• Article 29, §§ 1a, 1b.
• Article 32.
• Article 34.
• Article 36.
• Article 37.
• Annexes 1, 2, 3.
• Annex 4, part A, §§ 1, 2, 3, 5, 6, 8.

b. Articles of the draft peace treaty drawn up by the Council of Foreign Ministers, adopted with modification, proposals of Articles and new recommendations.

• Preamble.
• Article 1.
• Article 2 (new paragraph).
• Article 4.
• Article 4 bis (new article).
• Article 9 bis (new article).
• Article 13.
• Article 21 bis (new article).
• Article 22, §§ 1 and 2.
• Article 23, §§ 1, 2, 3, 4c, 4d, 4 bis, 8b.
• Article 23 bis (new article).
• Article 25.
• Article 26.
• Article 28, § 3.
• Article 29, § 1c (civil aviation).
• Article 29, § 2.
• Article 29 bis (new article).
• Article 30.
• Article 31.
• Article 33.
• Article 35.
• Annex 4, Part A, §§ 4 and 7.
• Annex 5, Part V.
• Annex 6.

II. Adopted by a simple majority.

a. Articles of the Draft Treaty drawn up by the Council of Foreign Ministers, adopted without modification.

• Article 21.

b. Articles of the Draft Treaty drawn up by the Council of Foreign Ministers, adopted with modification, proposals of Articles and new recommendations.

• Article 23, §§ 4a, 4b, 4e, 9.
• Article 29, § 1c (State monopolies).
• Annex 4, Part B.
• Annex 5, Part III.

TEXTS

I.—New Articles and Modification to Articles of the Draft Peace Treaty With Hungary Adopted by a Majority of Two-Third[s] or More

Preamble

Sub-paragraph 1, 2 and 3: without modification.

Sub-paragraph 4:

Whereas the Allied and Associated Powers and Hungary are respectively desirous of concluding a treaty of Peace, which conforming to the principle of justice, will settle questions still outstanding as a result of the events hereinbefore recited and form the basis of friendly relations between them, thereby enabling the Allied and Associated Powers to support Hungary’s application to become a member of the United Nations and also to adhere to any Convention concluded under the auspices of the United Nations.

Sub-paragraph 5: without modification.

Article 1

Paragraphs 1, 2 and 3: without modification.

Paragraph 4:

a. The decisions of the Vienna Award of November 2, 1938, are declared null and void;

b. The frontier between Hungary and Czechoslovakia from the point common to the frontier of those two States and Austria to the point common to those two States and the Union of Soviet Socialist Republics, is hereby restored as it existed on January 1, 1938, with the exception of the change resulting from the stipulations of the following paragraph:

c. Hungary shall cede to Czechoslovakia the villages of Horvathjarfalu, Orosvar and Dunacsum, together with their cadastral territory as indicated on Map No. 1a annexed to the present Treaty. Accordingly, the Czechoslovakia frontier on the sector shall be fixed as follows: from the point common to the three frontiers of Austria, Hungary and Czechoslovakia, as they existed on 1st January 1938, the present Hungaro-Austrian frontier shall become the frontier between Austria and Czechoslovakia as far as point roughly 500 meters north of hill 134 (3 km. 5 north-west of the church of Rajka), this point now becoming common to the frontiers of the three named countries; thence the new frontier between Czechoslovakia and Hungary shall go eastwards along the northern cadastral boundary of the village of Rajka to the right bank of the Danube at a point approximately 2 kilometers north of hill 128 (3.5 km. east of the church of Rajka), where the new frontier will, in the principal channel of navigation on the Danube, join the Czechoslovak-Hungarian frontier as it existed on 1st January 1938; the dam and spillway within the village limits of Rajka will remain on Hungarian territory;

d. The exact line of the new frontier between Hungary and Czechoslovakia laid down in the preceding paragraph shall be determined on the spot by a boundary Commission composed of the representatives of the two governments concerned. The Commission shall complete its duties within two months from the coming into force of the present Treaty;

e. In the event of a bilateral agreement not being concluded between Hungary and Czechoslavakia concerning the population of the ceded area, Czechoslovakia guarantees them full human and civic rights. All the guarantees and prerogatives stipulated in the Czechoslovak-Hungarian Treaty of February 27, 1946 on the exchange of populations, will be applicable to those who leave Czechoslovakia voluntarily.

Article 2

After the text of the Article of the Draft Treaty, insert a new paragraph:

Hungary further undertakes that the laws in force in Hungary shall not, either in their content or in the application discriminate or entail any discrimination between persons of Hungarian nationality on the ground of their race, sex, language, or religion, whether in reference to their persons, property, business, professional or financial interests, status, political or civic rights or any other matters.

Article 4

Hungary which in accordance with the Armistice Agreement has taken measures for dissolving all organisations of a Fascist type on Hungarian territory, whether political, military or para-military as well as other organisations conducting propaganda, including revisionist propaganda, hostile to any of the United Nations, undertakes not to permit in future the existence and activities of organisations of that nature which have as their aim denial to the people of their democratic rights.

Article 4 bis (new article)

Hungary shall enter into bilateral negotiations with Czechoslovakia in order to solve the problem of those inhabitants of Magyar ethnic origin, residing in Czechoslovakia, who will not be settled in Hungary within the scope of the Treaty of February 27, 1946 on exchange of populations.

In the event of no agreement being reached within a period of six months of the coming into force of the present Treaty, Czechoslovakia shall have the right to bring this question before the Council of Foreign Ministers and to request the assistance of the Council in effecting a final solution.

Article 9 bis (new article)

1. Hungary shall hand over to the Federal Peoples’ Republic of Yugoslavia and to the Republic of Czechoslovakia, within a period of no more than 18 months from the coming into force of this Treaty, objects of the following categories constituting the cultural patrimony of Yugoslavia and Czechoslovakia which has originated from these territories and which had, after 1848 come into the possession of the Hungarian State or of Hungarian public institutions as a consequence of Hungarian domination over those territories prior to 1919;

a. Historical archives which came into being as integral wholes in Yugoslav or Czechoslovak territories;

b. Libraries, historical documents, antiquities and other cultural objects which belonged to institutions on Yugoslav or Czechoslovak territories or to historical personalities of the Yugoslav and Czechoslovak peoples;

c. Original artistic, literary and scientific objects which are the work of Yugoslav or Czechoslovak Artists, writers and scientists.

2. Objects acquired by purchase, gifts or legacies and orginal works of Hung aria/as are excluded from the provisions of paragraph 1.

3. Hungary shall also hand over to Yugoslavia the archives relating to the 1st century of the Illyrian Deputation, the Illyrian Commission and Illyrian Chancellery.

4. The Hungarian Government shall, on the coming into force of the present Treaty, give the authorised representatives of Yugoslavia and Czechoslovakia all necessary assistance in finding these objects and making them available for examination.

Thereafter, but no later than one year after the coming into force of this Treaty, the Yugoslav and Czechoslovak Governments shall hand the Hungarian Government a list of the objects claimed under this Article. Should the Hungarian Government within three months of the receipt of the list, present observations against the inclusion therein of certain objects, and in the event of no agreement being reached between the Governments concerned within a further month, the dispute shall be settled in accordance with the provisions of Article 35 of this Treaty.

Article 13

Hungary shall not possess, construct or experiment with any atomic weapon, any self propelled or guided missiles or apparatus connected with their discharge (other than torpedoes and torpedo launching gear inherent to naval vessels permitted by this Treaty) sea mines or torpedoes of non-contact types actuated by influence mechanisms, torpedoes capable of being manned, submarines or other submersible craft, motor torpedo boats or specialised types of assault craft.

Article 21 bis (new article)

The annulment of the Vienna Award of November, 1938, as provided in Article 1, paragraph 4, implies in itself the annulment of the accords, as well as their legal consequences, ensuing therefrom in respect of matters of finance and public and private assurance concluded between or on behalf of the two States concerned or between Czechoslovak and Hungarian moral persons on the basis of the Vienna Award and in respect of the material handed over by the Protocol of May 22, 1940. This annulment shall not apply in any way to relations between physical persons. The details of the above-mentioned settlement will be arranged by bilateral agreements between the two governments concerned, within a period of six months from the time of entry into force of this Treaty.

Article 22

Paragraph 1:

1. Hungary accepts the principles of the United Nations Declaration of January 5, 1943, and will return in the shortest possible time, property removed from United Nations territories.

Paragraph 2 add:

If in particular cases, it is impossible for Hungary to make restitution of objects of artistic, historic or archeological value belonging to the cultural heritage of the United Nation from which such objects were removed, by force or duress by Hungarian forces and authorities or by Hungarian nationals, Hungary undertakes to transfer to the United Nation concerned objects of the same kind and of substantially equivalent value to the objects removed, in so far as such objects are obtainable in Hungary.

Article 23

Paragraphs 1 and 2:

Instead of “on April 10, 1941”, read: “on September 1, 1939”.

Paragraph 3 add:

In the case of Czechoslovak nationals this paragraph shall also include transfers after November 2, 1938 which resulted from force or duress or from measures taken under discriminatory internal legislation by the Hungarian Government or its agencies in Czechoslovak territory annexed by Hungary.

Paragraph 4, sub-paragraph c:

Compensation shall be paid free of any levies, taxes or charges. It shall be freely usable in Hungary but shall be subject to the foreign exchange control regulations which may be in force in Hungary from time to time.

Sub-paragraph d:

The Hungarian Government agrees to accord to United Nations nationals fair and equitable treatment in the allocation of materials for the repair or rehabilitation of their property and in the allocation of foreign exchange for the importation of such materials and will in no event discriminate in these respects against such nationals as compared with Hungarian nationals.

Paragraph 4 bis (new paragraph):

It shall be understood that the provisions of paragraph 4 of this Article shall apply to Hungary in so far as the action which may give rise to a claim for damage to property in Northern Transylvania of the United Nations or their nationals took place during the period when this territory was subject to Hungarian authority.

Paragraph 8, sub-paragraph b:

“Owner” means a United Nation or the United Nations national, as defined in sub-paragraph a above, who is entitled to the property in question, and includes a successor of the owner, provided that the successor is also a United Nation or a United Nation national as defined in sub-paragraph a. If the successor has purchased the property in its damaged state, the transferor shall retain his rights to compensation under this Article, without prejudice to obligations between the transferor and the purchasor under domestic law.

Article 23 bis (new article)

1. Hungary undertakes that in all cases where the property, legal rights or interests of persons under Hungarian jurisdiction has, since September 1, 1939, been the subject of measures of sequestration, confiscation or control on account of the racial origin or religion of such persons, the said property, legal rights and interests shall be restored together with their accessories or, if restoration is impossible, that full compensation shall be made therefor.

2. The Hungarian Government undertakes within twelve months after the date of coming into force of the present Treaty to transfer to the International Refugee Organisation (or any other organisation designated by the Economic and Social Council of the United Nations) for purposes of relief and rehabilitation within Hungary all property, rights and interests in Hungary owned by persons, organisations and communities which, individually or as members of groups, were the object of racial, religious or other Fascist measures of persecution or discrimination, including property, rights and interests required to be restored under this Article, and which for a period of six months after the date of coming into force of the present Treaty have remained ownerless, heirless or unclaimed.

Article 25

1. Each of the Allied and Associated Powers shall have the right to seize, retain, liquidate or take any other action with respect to all property, rights and interests within its territory which on the date of the coming into force of the present Treaty belong to Hungary or to Hungarian nationals, and to apply such property or the proceeds thereof to such purposes as it may desire within the limits of its claims and those of its nationals against Hungary or its nationals, including debts, other than claims fully satisfied under other Articles of the present Treaty. All Hungarian property or the proceeds thereof, in excess of the amount of such claims, shall be returned.

2. The liquidation and disposition of Hungarian property shall be carried out in accordance with the law of the Allied or Associated Power concerned. The Hungarian owner shall have no rights with respect to such property except those which may be given him by that law.

3. The Hungarian Government undertakes to compensate Hungarian nationals whose property is taken under this Article and not returned to them.

4. No obligation is created by this Article on any Allied or Associated Power to return industrial property to the Hungarian Government or Hungarian nationals, or to include such property in determining the amounts which may be retained under paragraph 1 of this Article. The Government of each of the Allied and Associated Powers shall have the right to impose such limitations, conditions and restrictions on rights or interest with respect to industrial property acquired prior to the coming into force of the present Treaty in the territory of that Allied or Associated Power by the Government or nationals of Hungary, as may be deemed by the Government of the Allied or Associated Power to be necessary in the national interest.

5. The property covered by paragraph 1 of this Article shall be deemed to include Hungarian property which has been subject to control by reason of a state of war existing between Hungary and the Allied or Associated Power having jurisdiction over the property, but shall not include:

a. Property of the Hungarian Government used for consular or diplomatic purposes;

b. Property belonging to religious bodies or private charitable institutions and used for religious or charitable purposes;

c. Property of natural persons who are Hungarian nationals permitted to reside within the territory of the country in which the property is located or to reside elsewhere in United Nations territory, other than Hungarian property which at any time during the war was subjected to measures not generally applicable to the property of Hungarian nationals resident in the same territory;

d. Property rights arising since the resumption of trade and financial relations between Hungary and the Allied and Associated Powers, or arising out of transations between Hungary and the Governments of any Allied or Associated Power since January 20, 1945;

e. Literary and artistic property rights.

Article 26

Hungary hereby renounces on its own behalf and on behalf of Hungarian nationals all claims, including debts, against Germany and German nationals outstanding on May 8, 1945, except those arising out of contracts and other obligations entered into, and rights acquired, before September 1, 1939. This renunciation shall be deemed to include not only all inter-governmental claims in respect of arrangements entered into in the course of the war, but also all claims for loss or damage arising during the tear. This renunciation shall be without prejudice to any dispositions in favour of Hungary or Hungarian nationals made by the Powers in occupation of Germany.

Article 28

Paragraph 3:

Hungary likewise waives all claims of the nature covered by paragraph 1 of this Article on behalf of the Hungarian Government or Hungarian nationals against any of the United Nations whose diplomatic relations with Hungary have been broken off during the war and which took action in co-operation with the Allied and Associated Powers.

Article 29

Paragraph 1, sub-paragraph c (civil aviation):

It is further understood that the foregoing provisions of paragraph c shall not apply to civil aviation, but that Hungary will grant no exclusive or discriminatory right to any country with regard to the operation of civil aircraft in international traffic, will afford all the United Nations equality of opportunity in obtaining international commercial aviation rights in Hungarian territory, and will grant to any United Nation on a basis of reciprocity and without discrimination with regard to the operation of civil aircraft in international traffic the right to fly over Hungarian territory without landing and to make landings in Hungarian territory for non-commercial purposes.

Paragraph 2:

The foregoing undertakings by Hungary shall be understood to be subject to the exceptions customarily included in commercial treaties concluded by Hungary before the war, and provisions with respect to reciprocity granted by each of the United Nations shall be understood to be subject to the exceptions customarily included in the commercial treaties concluded by that Power.

Article 29 bis (new article)

Hungary shall facilitate as far as possible railway traffic in transit through its territory at reasonable rates and shall negotiate with neighboring States all reciprocal agreements necessary for this purpose.

Article 30

Any disputes which may arise in connexion with Articles 21 bis, 22 and 23 (and Annexes 4, 5 and 6) of the present Treaty shall be referred to a Conciliation Commission composed of an equal number of representatives of the United Nations Government concerned and of the Hungarian Government. If agreement has not been reached within 3 months of the dispute having been referred to the Conciliation Commission, either Government may require the addition of a third member to the Commission, and failing agreement between the two Governments on the selection of this member, the President of the International Court of Justice shall be requested to make the appointment. The decisions of the Commission, as so constituted, shall be taken by the same procedure as is provided for decisions of the International Court itself in Articles 48 and 55–57 of the Statute of the Court and shall be final and binding on all parties.

Article 31

Articles 22 and 23 and Annex 6 of this Treaty shall apply to the Allied and Associated Powers and France and to those of the United Nations whose diplomatic relations with Hungary have been broken off during the war.

Article 33

1. Navigation on the Danube River shall be free and open on terms of entire equality to the nationals, vessels of commerce and goods of all states.

2. With a view to ensuring the practical application of this principle, Hungary undertakes to take part, together with France, the U. S. S. R., the United Kingdom, the United States of America, and the Danubian States in a Conference which shall be convened within six months of the entry into force of this Peace Treaty, with the object of establishing a new International Regime for the Danube.

Article 35

Except where any other procedure is specifically provided under any Article of the present Treaty, disputes concerning the interpretation or execution of the Treaty shall be referred to the three Heads of Mission acting as provided under Article 34 and, if not resolved by them within a period of two months, shall, at the request of any party to any dispute, be referred to the International Court of Justice. Any dispute still pending at, or arising after, the date when the Heads of Mission terminate their functions under Article 34, and which is not settled by direct diplomatic negotiations, shall equally, at the request of any party to the dispute, be referred to the International Court of Justice.

Annex 4

Section A

Paragraph 4:

The foregoing provisions concerning the rights of the Allied and Associated Powers or their nationals shall apply equally to Hungary and its nationals but nothing in these provisions shall entitle Hungary or its nationals to more favourable treatment in the territory of any of the Allied or Associated Powers than is accorded by such Power in like cases to other United Nations or their nationals, nor shall Hungary be required thereby to accord to any of the Allied or Associated Powers or its nationals more favourable treatment than Hungary or its nationals receive in the Territory of such Power in regard to the matters dealt with in the foregoing provisions.

Paragraph 7:

Hungary shall extend the benefits of Section A of this Annex to France and to other United Nations, other than Allied and Associated [Powers], whose diplomatic relations with Hungary have been broken off during the tear and which undertake to extend to Hungary the benefits accorded to Hungary under Section A of this Annex.

Annex 5

Part V. (New Part)

Having regard to the legal system of the United States of America, the provisions of this Annex shall not apply as between the United States of America and Hungary.

Annex 6

The Hungarian Government shall take the necessary measures to enable nationals of any of the United Nations at any time within one year after the coming into force of the present Treaty to submit to the appropriate Hungarian authorities for review any judgement given by a Hungarian Court between April 10, 1941 and the coming into force of the present Treaty in any proceeding in which the United Nations national was unable to make adequate presentation of his case as plaintiff or defendant. The Hungarian Government shall provide that, where the United Nations national has suffered injury by reason of any such judgment, he shall be restored in the position in which he was before the judgment was given or shall be afforded such relief as may be just and equitable in the circumstances. The term “United Nations nationals” includes corporations or associations organised or constituted under the laws of any of the United Nations.

II.—New Articles and Modifications to the Articles of the Draft Peace Treaty With Hungary Adopted by a Simple Majority

Article 23

Paragraph 4—sub-paragraph a.

The Hungarian Government will be responsible for the restoration to complete good order of the property returned to United Nations nationals under paragraph 1 of this Article. In cases where property cannot be returned or where as a result of the war a United Nations national has suffered a loss by reason of injury or damage to property, he shall receive from the Hungarian Government compensation in Hungarian local currency to the extent of 75% of the sum necessary, at the date of payment, to purchase similar property or to make good the loss suffered. In no event shall United Nations nationals receive less favourable treatment with respect to compensation than that accorded Hungarian nationals.

Sub-paragraph b.

United Nations nationals who have ownership interests, held directly or indirectly in corporations or associations which are not United Nations nationals within the meaning of paragraph 8a of this Article, but which have suffered a loss by reason of injury or damage to property, shall receive compensation in accordance with sub-paragraph a above. This compensation shall be based on the total loss or damage suffered by the corporation or association and shall bear the same proportion to such loss or damage as the beneficial interest of such nationals bears to the total capital of the corporation or association.

Sub-paragraph c.

The Hungarian Government shall grant nationals of the United Nations an indemnity in Hungarian local currency sufficient to compensate, at the date of payment the losses and damage due to the special measures applied to their property during the war, and which were not applicable to Hungarian property.

Paragraph 9.

The Hungarian Government undertakes to enter into negotiations with the other Governments concerned, the Danube-Sava-Adriatica Railway Company and the Committee of Bondholders of the Company, with a view to determining the method of applying the provision of the Rome Agreement of March 29, 1923, laying down the statute of the Company, and the modifications required in this Agreement, and making an equitable settlement of the amounts owing to the Company’s Bondholders.

Article 29

Paragraph 1c (states monopolies).

Natural and legal persons who are nationals of any of the United Nations shall be granted national and most-favoured-nation treatment in all matters pertaining to commerce, industry, shipping and other forms of business activity within Hungary.

This paragraph shall not be deemed to confer on the United Nations, on their nationals rights to engage in any branch of commerce, industry, shipping or other form of business activity which under Hungarian law is a monopoly of the Hungarian State. Nevertheless, the most-favoured-nation principle shall be observed in any such case in which foreign participation is allowed.

Annex 4

Part B

1. The Hungarian Government shall grant every facility to insurers who are national[s] of the United Nations to resume possession of their former portfolios in Hungary.

2. Should an insurer being a national of any of the United Nations wish to resume his professional activities in Hungary, and should the value of guarantee deposits or reserves required for the operation of insurance concerns in Hungary be found to have decreased as a result of the loss or depreciation of the securities which constituted such deposits or reserves, the Hungarian Government undertakes to accept such securities as still remain (for a period of three years) as fulfilling the legal requirements in respect of deposits and reserves.

Annex 5

Part III

1. As between enemies no negotiable instrument made before the war shall be deemed to have become invalid by reason only of failure within the required time to present this instrument for acceptance or payment or to give notice of non-acceptance or non-payment to drawers or endorsers or to protest the instrument, nor by reason of failure to complete any formality during the war.

2. Where the period within which a negotiable instrument should have been presented for acceptance or for payment, or within which notice of non-acceptance or non-payment should have been given to the drawer or endorser, or within which the instrument should have been protested, has elapsed during the war, and the party who should have presented or protested the instrument or have given notice of non-acceptance or non-payment has failed to do so during the war, a period of not less than three months from the coming into force of the present Treaty shall be allowed within which presentation, notice of non-acceptance or non-payment or protest may be made.

3. If a person has either before or during the war become liable upon a negotiable instrument in accordance with an undertaking given to him by a person who has subsequently become an enemy, the latter shall remain liable to indemnify the former in respect of his liability notwithstanding the outbreak of war.

1. The new paragraph added to Article 2 is listed under Ib. [Footnote in the source text.]