Paris Peace Conf. 181.9202/125: Telegram
General Bandholtz to the Commission to Negotiate Peace
[Received September 20—1:35 a.m.]
79. General Mardarescu and M. Diamandi attended Mission’s session this morning and admitted that two divisions and two cavalry brigades had left Hungary for concentration in the Banat on account of situation. They denied it was beginning of evacuation and promised to notify us whenever evacuation was decided upon. It was agreed to start at once on organization of Hungarian Army of 12,000 and gendarmerie of 10,000. Mardarescu promised to deliver to us 10,000 rifles and 40 machine guns by 23d instant. Mardarescu asked if true that he had notified Hungarian Government to give him 100 millions kronen of blue money for same sum in white money by 5 o’clock this afternoon or he would revoke decree placing rate at 5 to 1. He stated in reply that some time ago the Hungarians had offered to make the exchange above referred to on condition that they could import 300 million kronen blue money from Vienna.
This was done and then they tried to avoid their part of bargain which he proposed to enforce. Minister of Finance flatly denies any such arrangement ever existed. Question of immediate evacuation west bank of Danube taken up and they promised to look into it alleging a fear that Hungarians might attack them. I told them that on August 25th they had likewise promised to look into this matter, that as matter of fact the Hungarians had nothing to attack them with, and that if there was any danger it would appear to any military man as being safer behind a bridgehead at Budapest and the Danube River than in scattered detachments 50 kilometers to the west. General Gorton and I alone were insistent in this. Some people make Ananias resemble George Washington. Refugees from Transylvania report that Roumanians have so far deported 30,000 from city Koloszvar including all officials who will not swear royalty [fealty], all arrivals since July 1914, and all who have not been residents more than 18 years. Also reported several incipient peasant uprisings. Please furnish copy to British Commission. Mr. Halstead is deluging me with reports of atrocities committed in new Austrian territory by Hungarian White terrorists but all I can do is bring to attention Minister of War.