864.00/11–3046: Telegram

The Minister in Hungary (Schoenfeld) to the Secretary of State

secret

2244. In conversation with Rakosi last night he expressed earnest hope CFM would promptly find agreement on Hungarian peace treaty so that it could be signed and Hungary could be relieved of burden occupation forces and excessive cost their maintenance as well as support of ACC amounting to 3 million dollars monthly.

He avoided discussion present political situation except to emphasize necessity of elimination power reactionary elements in Hungary among which he specified remnants industrial-financial oligarchy, church and bureaucracy as being still too influential. In his view 25 years of Fascist control had left Hungarian people incapable understand democracy and they would have to be educated to principles democracy by force if necessary. Rakosi intimated American policy was helpful to reaction in Hungary to which I entered general denial pointing out it was often difficult to determine meaning attributed by [Page 347] Communists to term reaction and that US was interested in assuring Hungarian people enjoyment free expression collective will. Rakosi asserted freedom expression greater here than in most countries to point of excess.

Rakosi claimed Communist Party now affords only dynamic constructive leadership this country in all phases administration, citing as proof increased efficiency administrative organization for which Communists responsible, in effectiveness police, resolute handling of labor unrest and management fiscal policy. He asserted Communists as most efficient force in Hungary receive constant calls from non-Communist elements all sectors national life for guidance and action to produce results.

I am bound to say there is truth in Rakosi’s analysis present internal situation but he is evidently more anxious to secure what he considers efficiency through Communist control than to foster civil freedom at cost of some confusion.

Schoenfeld