864.51/2–2746: Telegram
The Secretary of State to the Minister in Hungary ( Schoenfeld )
us urgent
228. Urtels 405 and 414, Feb. 27.31 Regarding $10 million line of credit for purchase of surplus property Dept wishes to point out that this is not a “loan” and that it does not represent a commitment by the U. S. that surplus property in that amount can be made available to Hungary. FLC statement simply means that if surplus property wanted by Hungary is available, and detailed agreement on conditions can be reached, FLC will make every effort to place it at Hungary’s disposal. Dept has made this clear to Hungarian Minister and in your discretion you may do likewise in such conversations as you may have in this connection.
Dept wishes to avoid situation where initial enthusiasm over surplus arrangement reported urtel 405 will give way to disappointment later because of initial misunderstanding and thus result in damage to American prestige in Hungary. Dept also considers that statement in Prime Minister’s personal note to you (urtel 414) that “disclosure of our economic situation will be conducive to an eventual further increase of this loan by US Government” indicates a serious misapprehension as to nature of transaction and prospects for availability of suitable property.
- Latter not printed, but see footnote 30, supra. ↩