864.50/2–1147: Telegram

The Secretary of State to the Legation in Hungary

secret   urgent

126. Dept has now determined possibilities direct economic assistance to Hungary at present as follows: [Page 269]

$15 million dollar increase in Hungarian surplus property credit can be granted immediately. Property to be purchased with such credit is about to become available in Germany;
cotton credit of $10 million dollars probably can be arranged within few weeks;
post UNRRA relief grant is to be considered by Congress as matter of urgency and question inclusion Hungary in such grant can probably be determined shortly. (Deptel 74 Jan 251).

We have discussed with Hungarian Minister procedures by which announcement US economic assistance can best be made effective in present political situation Hungary (urtel 115 Jan 27 and related messages). It is our view that most advisable course is immediate announcement 15 million dollar surplus property increase to be followed by subsequent announcements cotton credit, post UNRRA relief and any other items which may become possible in meantime. In this manner we will demonstrate continuing interest Hungary. At same time in line urtel 178 Feb 5 suggesting desirability political support democratic forces Hungary we believe announcement surplus property increase provides opportunity reiterate US attitude re political developments.

Dept’s immediately following telegram contains text draft announcement sense foregoing.2 Please seek immediate opportunity bring Dept’s views and draft text attention PriMin informally and invite his comments.3 Unless you advise to contrary in meantime, Dept will release that announcement to press here Feb 15 and you may simultaneously release at Budapest.

  1. Not printed.
  2. Telegram 127, February 11, to Budapest, under reference here, is not printed. The text transmitted therein was released to the press on February 15; see the Department of State Bulletin, February 23, 1947, p. 341.
  3. Minister Schoenfeld met with Prime Minister Nagy on February 13. As reported in telegram 234, February 13, from Budapest, not printed, Nagy expressed deep thanks and appreciation for the American action (864.50/2–1347).