864.6363/7–1147
The Minister in Hungary (Chapin) to the Secretary of State
No. 3260
Sir: With reference to previous correspondence concerning American interests in the crude petroleum industry in Hungary, I have the honor to enclose herewith a summary of developments since submission of this Legation’s Note No. 439 of March 3, 1947, to the Hungarian Ministry for Foreign Affairs transmitted to the Department by despatch No. 2722 of March 10, 1947.1
It will be noted that while some progress has been made, no final solution to the numerous problems facing the crude petroleum industry has been found, despite the lapse of more than four months since the first formal representation made by this Legation to the Hungarian Government. The Magyar Amerikai Olajipari R. T. (MAORT) has also endeavored throughout this period to obtain satisfaction of its rights under its Concession Contract and the Armistice of January 20, 1945.
The Legation intends to continue to press with all means at its disposal for a definitive solution. However, prospects are not viewed with [Page 336] optimism in view of previous Hungarian tactics which involve delays, passing of responsibility, threats against MAORT and pleas of financial embarrassment.
In summary outstanding issues at present are:
- 1.
- Continued presence of government controllers within MAORT.
- 2.
- Over production of the oil fields.
- 3.
- Refusal of the government to settle pre-May 1, 1947 accounts.
- 4.
- Inadequate crude oil prices.
- 5.
- Restrictions over MAORT’s right to dispose of its crude oil production.
Respectfully yours,