864.50/10–3146: Telegram
The Chargé in the Soviet Union (Durbrow) to the Secretary of State
[Received 11:18 a.m.]
4018. Embtel 3537, September 21, repeated London 375.87 Translation Dekanosov’s reply dated October 26 to Embassy note on Hungarian economy follows:
“In connection with your note of September 21, Soviet Govt feels it necessary to state that in note of Minister Foreign Affairs of USSR of July 27,88 economic situation of Hungary in 1946 was explained in detail and exhaustive facts were given on that question. That note also contained an evaluation of the facts cited in note of Embassy of USA of July 22,89 which moreover referred not to year 1946 but to 1945. In consequence of above-mentioned circumstances and also having in view that cited note of September 21 does not contain any evidence refuting the facts set forth in Soviet note of July 27, Soviet Govt does not see the necessity to cite new proof of the incorrectness of position taken by govt of USA in this matter.
Soviet Govt is not able at the same time to pass over the assertions contained in your letter that it allegedly refuses to carry out the decisions of the Crimea Conference relative to the policy of the three govts in matter of aiding peoples of former Axis satellite states. This assertion has no foundation and must be rejected. It is appropriate to recall that in connection with question raised by American Govt about [Page 342] the economic position of Hungary, Soviet Govt in its note of April 2190 informed Govt of US of the readiness of Chairman of ACC to examine considerations which may be communicated by the representatives of the USA and Great Britain concerning the economic situation in Hungary. However, up to this time such consideration has come neither from American nor from English representatives. As regards proposal of govt of US for creation of a special commission of the representatives of USA, USSR and Great Britain for drawing up plans for economic rehabilitation of Hungary, which Hungarian Govt itself allegedly requests, as is stated in American notes of July 22 and September 21, Soviet Govt has no knowledge of such a request of the Hungarian Govt.
Soviet Govt, as before, takes a negative view of such a proposal, more so as during course of last 2 or 3 months economic position of Hungary has considerably improved. Starting with first of August this year Hungarian Govt began successfully to carry out a financial reform with result that not only inflation has ceased but a stable currency has been established. On this basis Hungarian Govt has succeeded in achieving a further rise in industrial production, successes in agriculture and a general improvement in the economic life of the country.
In view of what has been said, Soviet Govt considers that proposal of Govt of USA that the plan of economic rehabilitation of Hungary be reexamined by the representatives of the three powers is totally unnecessary.”
Dept please repeat to Budapest as Moscow’s 62, London as 405.
- Not printed; it reported the delivery on September 21 of the American note on the Hungarian economy (740.00119 Council/9–2146). Text of the note of September 21 is printed in Department of State Bulletin, October 6, 1946, p. 638.↩
- Ibid., August 11, 1946, p. 263.↩
- Ibid., August 4, 1946, p. 229. The American note was delivered on July 23.↩
- The text of the Soviet note of April 21 is contained in telegram 1302, April 23, from Moscow, p. 285.↩