Foreign Relations of the United States, 1948, Eastern Europe; The Soviet Union, Volume IV

864.6363/9–2148: Telegram

The Acting Secretary of State to the Legation in Hungary

secret   urgent
niact

Washington, September 22, 1948—2 p. m.

933. Detention Ruedemann and Bannantine (urtel 1509 Sept 21¹ and previous) serious not only in itself but also as precedent. We have discussed with company which agrees sole objective US action matter should be release individuals. In our view accomplishment release dependent our convincing Hungs continuance proceedings against them will entail material consequences.

Your action to date approved. Unless you perceive major objection, endeavor arrange see Vice Premier Rakosi and in reiterating views you have already expressed to FonMin,² state orally that you are authorized inform him that we consider the accusations fantastic and unless Ruedemann and Bannantine released and permitted depart Hung’ without delay US Govt, which seriously concerned action Hungs in arresting Amer citizens on specious charges, and denying US officials access to them, will consider appropriate measures to impress Hung authorities that such conduct will not be tolerated. You should further say that any mistreatment recd by Ruedemann and Bannantine at hands Hungs will have serious repercussions. You should add that of course conversations in which Leg has been engaged with Min FonAff in regard various questions between two Govts with a view to resumption restitution deliveries from Germany are suspended pending satisfactory solution present matter.

We think desirable endeavor bring foregoing direct attention Rakosi as indicated but appreciate possibility he may be inaccessible (urtel 1471, Sept 16)³ in which case you are authorized to make same further démarche to FonMin. Particularly in light apparent Hung indecision which could be deduced from urtels 1509 and 1499⁴ believe these representations should be made at once.⁵

Hickerson⁶ will endeavor telephone you twenty-third and, for possible effect on Hungs through anticipated interception, will emphasize (1) seriousness with which developments viewed both officially and publicly here; (2) our primary concern for release Ruedemann and Bannantine regardless possible consequences company interests and (3) determination take effective counteraction should Hungs go through with persecution. He will state latter connection, Dept considering among other possibilities (1) whether circumstances do not warrant closing Hung Consulates New York and Cleveland on basis US officials prevented extending appropriate Consular protection US nationals Hungary and (2) whether situation does not require refusing issue further passports US nationals to travel Hungary in absence recognition by Hungs customary diplomatic and consular right their protection.⁷

Dept also calling in Hung Min.⁸

Pending further developments and results foregoing we are confining remarks to press to statement that we take serious view matter and are following closely. We feel you should take same line Budapest if necessary pointing out to correspondents that we prompted this attitude by desire avoid at all cost any possibility there may be of further prejudicing position individuals. SONJ issuing short statement merely denying foundation charge company issued orders sabotage.

Lovett

1. Not printed. American citizens Paul Ruedemann and George Bannantine, President and technical adviser respectively of MAORT (Hungarian-American Oil Company), an American-owned affiliate in Hungary of the Standard Oil Company of New Jersey, were taken into custody by the Hungarian police on the night of September 18 on charges of alleged “economic sabotage” and held incommunicado. After vigorous American representations in Budapest and Washington, Ruedemann and Bannantine were released to the custody of a Legation official on September 25 and were taken to Vienna.
2. Laszlo Rajk became the Hungarian Foreign Minister at the beginning of August 1948.
3. Not printed.
4. Neither printed.
5. Minister Chapin called on Foreign Minister Rajk on September 23 (Deputy Prime Minister Rakosi not being available) and again protested vigorously the detention of Ruedemann and Bannantine.
6. John D. Hickerson, Director of the Office of European Affairs.
7. The memorandum of the telephone conversation of September 23, 11 a. m. between Hickerson and Minister Chapin, covering the points enumerated in this paragraph, is filed separately under 804.00/9–2348.
8. Acting Secretary Lovett called in Hungarian Chargé John Florian on September 24 to protest the detention of Ruedemann and Bannantine in the same terms set forth in this telegram. The conversation is recorded in the memorandum by Lovett of September 24, not printed (864.6363/9–2448) and in telegram 947, September 24, to Budapest, not printed (864.6363/9–2448). Hungarian Ambassador Andrew Sik was out of town at this time. Sik became Ambassador in August 1948 following the resignation of Ambassador Rustem Vambery in May 1948.