CFM Files

Draft Peace Treaty With Hungary16

Preamble

The Union of Soviet Socialist Republics, the United Kingdom, the United States of America, Australia, the Byelorussian Soviet Socialist Republic, Canada, Czechoslovakia, India, New Zealand, the Ukranian Soviet Socialist Republic, the Union of South Africa, and Yugoslavia, as the States which are at war with Hungary and actively waged war against the European enemy states with substantial military force, hereinafter called the Allied and Associated Powers, of the one part, and Hungary, of the other part;

Whereas Hungary, having become an ally of Hitlerite Germany and participating on her side in the war against the Union of Soviet Socialist Republics, the United Kingdom, the United States of America and other United Nations, bears her share of responsibility for this war;

Whereas, however, Hungary on December 28, 1944, broke off relations with Germany, declared war on Germany and on January 20, 1945, concluded an Armistice with the Governments of the Union of Soviet Socialist Republics, the United Kingdom and the United States of America,17 acting on behalf of all the United Nations which were at war with Hungary; and

Whereas the Allied and Associated Powers and Hungary are respectively desirous of concluding a treaty of peace, which will form the basis of friendly relations between them and settle questions still outstanding as a result of the events hereinbefore recited, 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.

Have therefore agreed to declare the cessation of the state of war and for this purpose to conclude the present Peace Treaty, and have appointed as their Plenipotentiaries . . . . . . . . . . . . . . . 17a who, after presentation of their full powers, found in good and due form, have agreed on the following provisions.

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Part I. Frontiers of Hungary

Article 1

1.
The frontiers of Hungary with Austria and with Yugoslavia shall remain those which existed on January 1, 1938.
2.
The decisions of the Vienna Award of August 30, 1940 are declared null and void. The frontier between Hungary and Roumania existing on January 1, 1938, is hereby restored.
3.
The frontier between Hungary and the Union of Soviet Socialist Republics, from the point common to the frontier of those two States and Roumania to the point common to the frontier of those two States and Czechoslovakia, is fixed along the former frontier between Hungary and Czechoslovakia as it existed on January 1, 1938.
4.*
The decisions of the Vienna Award of November 2, 1938, are declared null and void. The frontier between Hungary and Czechoslovakia, from the point common to the frontier of those two States and Austria to the point common to the frontier of those two States and the Union of Soviet Socialist Republics, is hereby restored as it existed on January 1, 1938.
5.
The frontiers described above are shown on the map annexed to the present Treaty (Annex 1).

Part II. Political Clauses

Section I

Article 2

[Identical, mutatis mutandis, to Article 3 of the Draft Rumanian Treaty and Article 14 of the Draft Italian Treaty.]

Article 3

[Identical, mutatis mutandis, to Article 4 of the Draft Rumanian Treaty.]

Article 4

[Identical, mutatis mutandis, to Article 5 of the Draft Rumanian Treaty.]

Article 5

[Identical, mutatis mutandis, to Article 6 of the Draft Rumanian Treaty and Article 38 of the Draft Italian Treaty.]

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Section II

Article 6

[Identical, mutatis mutandis, to Article 7 of the Draft Rumanian Treaty and Article 15 of the Draft Italian Treaty.]

Article 7

[Identical, mutatis mutandis, to Article 8 of the Draft Rumanian Treaty.]

Article 8

[Identical, mutatis mutandis, to Article 9 of the Draft Rumanian Treaty and Article 32 of the Draft Italian Treaty.]

Article 9

[Identical, mutatis mutandis, to Article 10 of the Draft Rumanian Treaty and Article 37 of the Draft Italian Treaty.]

Part III. Military Clauses

Section I

Article 10

The maintenance of land and air armaments and fortifications will be closely restricted to meeting tasks of an internal character and local defence of frontiers. In accordance with the foregoing, Hungary is authorized to have armed forces consisting of not more than:

a.
A land army, including frontier troops, anti-aircraft and river flotilla personnel, with a total strength of 65.000 personnel;
b.
An air force, of 90 aircraft, including reserves, of which not more than 70 may be combat types of aircraft, with a total personnel strength of 5.000. Hungary shall not possess or acquire aircraft designed primarily as bombers with internal bomb-carrying facilities.

These strengths will in each case include combat, service and overhead personnel.

Article 11

[Virtually identical, mutatis mutandis, to Article 12 of the Draft Rumanian Treaty with the exception of the omission of the word “Navy”.]

Article 12

[Identical, mutatis mutandis, to Article 13 of the Draft Rumanian Treaty with the exception of the omission of the words “Naval” and “naval training”.]

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Article 13

[Identical, mutatis mutandis, to Article 14 of the Draft Rumanian Treaty.]

Article 14

[Identical, mutatis mutandis, to Article 15 of the Draft Rumanian Treaty.]

Article 15

[Identical, mutatis mutandis, to Article 16 of the Draft Rumanian Treaty.]

Article 16

[Identical, mutatis mutandis, to Article 17 of the Draft Rumanian Treaty.]

Article 17

[Identical, mutatis mutandis, to Article 18 of the Draft Rumanian Treaty.]

Article 18

[Idential, mutatis mutandis, to Article 19 of the Draft Roumanian Treaty with the exception of the omission of the word “naval”.]

Section II

Article 19

[Identical, mutatis mutandis, to Article 20 of the Draft Rumanian Treaty.]

War Graves

[Identical to the unnumbered provision following Article 20 of the Draft Rumanian Treaty.]

Part IV. Withdrawal of Allied Forces

Article 20

[Identical, mutatis mutandis, to Article 21 of the Draft Rumanian Treaty.]

Part V. Reparation and Restitution

Article 21

Losses caused to the Soviet Union, Czechoslovakia and Yugoslavia by military operations and by the occupation by Hungary of the territories [Page 106]of these States will be indemnified by Hungary to the Soviet Union, Czechoslovakia and Yugoslavia but taking into consideration that Hungary has not only withdrawn from the war against the United Nations but has also declared war on Germany, the Parties agree that compensation for the above losses will be made by Hungary not in full but only in part, namely to the amount of 300 million United States dollars payable over 8 years from January 20, 1945 in commodities (machine equipment, river craft, grain, etc.…), the sum to be paid to the Soviet Union to amount to 200 million United States dollars, and the sum to be paid to Czechoslovakia and Yugoslavia to amount to 100 million United States dollars.

The basis for calculating the settlement provided for in this Article will be the American dollar at its gold parity on the day of the signing of the Armistice Agreement, i.e. 35 dollars for one ounce of gold.

Article 22

[Identical, mutatis mutandis, to Article 65 of the Draft Italian Treaty with the exception that paragraph 8 of the latter text is not included.]

Part VI. Economic Clauses

Article 23

[Paragraphs 1 through 8 of this Article are identical, mutatis mutandis, to Article 68 of the Draft Italian Treaty. The date of April 10, 1941 is used here in place of June 10, 1940 appearing in the Italian Treaty Article.]

9. French proposal supported by U.K. and U.S. subject to drafting:

A new agreement shall be negotiated between the Danube-Sava-Adriatica Railway Company, the Governments concerned, and the Committee of Bondholders of the Company, in order to determine the method of applying the provisions of the Rome Agreement of March 29, 1923, laying down the Company’s Articles of Association, and the modifications required to adapt them to the changes which have followed on the redistribution of the lines over the territories of various States. This Agreement shall contain all the provisions necessary to ensure satisfactory servicing of the bonds and payments of amounts in arrears.

The U.S.S.R. Delegation considers that there is no reason for the inclusion in the Peace Treaty of the French Delegation’s proposal, because a Peace Treaty should not contain provisions dealing with particular private Companies.

Article 24

Hungary recognizes that the Soviet Union is entitled to all German assets in Hungary transferred to the Soviet Union by the Control [Page 107]Council for Germany and undertakes to take all necessary measures for facilitating such transfers.

Article 25

U.S.S.R. proposal:

The rights of the Hungarian Government and of Hungarian physical and juridical persons with regard to Hungarian property and other Hungarian assets on the territory of Allied and Associated Powers, insofar as such rights were limited in consequence of the participation of Hungary in the war on the side of Germany, shall be restored after the coming into force of the present Treaty.

U.S., U.K., and French proposal:

[The proposal included here in italics is identical, mutatis mutandis, to Article 26 of the Draft Rumanian Treaty.]

Article 26

U.S.S.R. proposal:

1.
Any restrictions imposed in respect of any Hungarian property in Germany, and in other countries which participated in the war on Germany’s side, shall be removed after the coming into force of the present Treaty. The rights of any Hungarian owners with regard to the disposal of any such property shall also be restored.
2.
Hungary shall be entitled to the restitution of any identifiable property removed by force or under duress from Hungary after January 20, 1945, and now located in Germany.
The restitution of any Hungarian property now located in Germany shall be carried out under the direction of the military authorities of the Powers in occupation of Germany.

U.K., U.S. and French proposal:

[Identical, mutatis mutandis, to the U.K., U.S. and French proposal to Article 27 of the Draft Rumanian Treaty.]

Article 27

[Identical, mutatis mutandis, to Article 28 of the Draft Rumanian Treaty and Article 70 of the Draft Italian Treaty.]

Article 28

[Identical, mutatis mutandis, to Article 29 of the Draft Rumanian Treaty.]

Article 29

[Identical, mutatis mutandis, to Article 30 of the Draft Rumanian Treaty.]

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Articles 30, 31, and 32

[Identical, mutatis mutandis, to Articles 31, 32, and 33, respectively, of the Draft Rumanian Treaty and Articles 72, 73, and 74, respectively, of the Draft Italian Treaty.]

Part VII. Clauses Relating to the Danube

Article 33

[Identical, mutatis mutandis, to Article 34 of the Draft Rumanian Treaty.]

Part VIII. Final Clauses

Articles 34, 35, 36, and 37

[Identical, mutatis mutandis, to Articles 35, 36, 37, and 38, respectively, of the Draft Rumanian Treaty and Articles 75, 76, 77, and 78, respectively, of the Draft Italian Treaty.]

Annex 1

(See Article 1)

Map of the Hungarian Frontiers18

Annex 2

(See Article 12)

Definition of Military and Air Training

[Identical to the first two paragraphs of Annex 2 of the Draft Rumanian Treaty and Annex 5 B of the Draft Italian Treaty.]

Annex 3

(See Article 14)

Definition and List of War Material

[Identical to Annex 3 of the Draft Rumanian Treaty and Annex 5 C of the Draft Italian Treaty.]

Annex 4

Special Provisions Relating to Certain Kinds of Property

[Identical, mutatis mutandis, to Annex 6 of the Draft Italian Treaty and Annexes 4 A and 4 B of the Draft Rumanian Treaty.]

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Annex 5

Contracts, Prescriptions and Negotiable Instruments

[Identical, mutatis mutandis, to Annex 5 of the Draft Rumanian Treaty.]

Annex 6

Judgments

[The proposals set forth in this Annex are identical, mutatis mutandis, to the proposals set forth in Annex 6 B of the Draft Rumanian Treaty and Annex 8 B of the Draft Italian Treaty.]

  1. The table of contents and the list of annexes in the source text are not printed here.
  2. Department of State Executive Agreement Series 456.
  3. Marks of ellipsis throughout this document occur in the source text.
  4. Note.—This text should be considered as tentative until the Governments of Czechoslovakia and Hungary have had an opportunity to present to the Peace Conference or to the Council of Foreign Ministers their respective views on this subject. [Note in source text.]
  5. The U.S. Delegation reserves the right to reopen this question at the Peace Conference. [Footnote in source text.]
  6. No map accompanied the English and French language versions of the Draft Treaty.