Foreign Relations of the United States, 1946, Eastern Europe, The Soviet Union, Volume VI

711.64/6–1346

Memorandum of Conversation, by the Assistant Chief of the Division of Southern European Affairs (Barbour)

[Washington,] June 13, 1946.

Participants:	The Hungarian Prime Minister;
	Deputy Prime Minister;
	Minister for Foreign Affairs;
	Minister of Justice;
	the Hungarian Minister to the United States;
	Mr. Marik, Counselor of the Hungarian Legation;
	Mr. Barbour, SE;
	Mr. Tihany, EAI;
	Mr. Acheson, Acting Secretary.

The Hungarian party called on the Acting Secretary at 4 PM on June 13 at their request.²⁴ The Prime Minister, after the usual amenities, reviewed the political and economic situation of Hungary. He emphasized the disappointment of Hungary with the decision of the CFM in connection with Transylvania and expressed apprehension at an arrangement which leaves large numbers of Hungarians under foreign rule, a total of such persons so situated in Rumania and in Czechoslovakia being given as 3 million. He stated that it is the Hungarian Government’s desire to stabilize the economy of Hungary on August 1 of this year and that prerequisites to such stabilization would be the return to Hungary, by the US, of the Hungarian gold reserve now in Germany as well as the restitution to Hungary of displaced Hungarian property in Germany and Austria. The Prime Minister asked officially for the agreement of this Government to assist Hungary in its minority problem; to restitute displaced property in US zones in Germany and Austria and to return the gold reserve.

Mr. Acheson stated that in regard to the Hungarian minority problem the matter was one for consideration by the Three Powers in connection with the Paris meeting and any subsequent peace conference. He added that the Secretary is fully cognizant of the situation and that this Government has consistently advocated leaving the way open for Hungary to undertake direct negotiations with its two neighbors in this connection.

Concerning the gold, Mr. Acheson stated it was his understanding that in a conversation with the Secretary yesterday the Prime Minister and the Secretary were in accord that the US should retain a portion of that gold to satisfy claims of US nationals against Hungary. He asked whether the Prime Minister’s present request for the restitution of the whole gold reserve was an extension of his position yesterday. The Prime Minister said that it was, that Hungary has no other gold and needs the whole gold reserve to back a stabilized currency and that Hungary undertakes to compensate American losses caused by the war fully through other means.

Mr. Acheson then indicated that he would get together the interested divisions of the Department and would endeavor to inform the Prime Minister of the answers of this Government to these two questions before the Delegation’s departure from Washington. Meanwhile, he indicated that it would be easier for this Government to consider such matters with sympathy if a similarly helpful approach were forthcoming on certain matters of interest to the US in Hungary. He noted that we have on several occasions endeavored to obtain full information from the Hungarian Government concerning its economic situation but that such information had not been furnished. Similarly, we have endeavored to obtain landing rights for American aircraft in Hungary which request has been denied by the Hungarian Government.

The Prime Minister replied that economic information concerning Hungary is common knowledge but that the Government was precluded from meeting our request by regulations issued by the Allied Control Commission. As for landing rights, the restrictions under which Hungary is now operating leaves landing rights and such matters to the exclusive jurisdiction of the high command of the occupying power. As soon as the occupation shall cease, Hungary would be happy to welcome American planes.

Mr. Acheson concluded by renewing offer to endeavor to give the Hungarians final answers on the questions they had raised at a later meeting before their departure from Washington.

24. This meeting was apparently preceeded by the meeting between the President and the Hungarian delegation at the White House, described in Nagy, The Struggle Behind the Iron Curtain, p. 228. No record has been found in Department files of the meeting between the President and the Hungarians, which was scheduled for 11:15 a.m.