Office of the Historian

864.52/7—2147: Telegram

The Secretary of State to the Legation in Hungary

confidential
Washington, September 12, 1947—4 p. m.

976. Following for Leg’s info and comments are Dept’s views re Hun land reform (urdes 3275 July 21 and 2477 Jan 221) as it affects property US nationals:

1.
In principle, Dept has taken position that Hun Govt obligated under Art 13 Armistice restore properties US owners expropriated under land reform, and this obligation continues to bind Hun Govt under Art 26 (1) of Peace Treaty.
2.
As practical matter, however, continued insistence by US on return of properties is, as experience thus far has shown, likely be fruitless, and even if properties now returned, could legally be retaken under land reform law.
3.
In light foregoing, Dept would be disposed refrain from further challenge right of Hun Govt to expropriate US properties under land reform provided Hun Govt would enter into negotiations at early date with view providing prompt, adequate and effective compensation to US nationals whose property has been taken under land reform. While efforts at settlement along this line have proved ineffective to date, believed advisable renew representations this character upon the coming into force of the Treaty. What is Leg’s view?
4.
In connection above line of approach, question arises whether negotiations, if arranged, should be confined land reform cases or made sufficiently broad to include reference all claims US nationals.
5.
Ultimate possibility should be kept in mind this connection that, should other means not be agreed upon, US might obtain at least partial compensation for land, together with other unsatisfied claims under Art 29, from Hun assets available to US under that Article of Treaty.

Marshall
  1. Neither printed.↩