740.00119 E.W./10–1344: Telegram

The Secretary of State to the Ambassador in the Soviet Union (Harriman)

2437. ReEmbs 3930 October 13; reDeptels 2398 and 2403 October 9 and 10.30 You are authorized to join the British and Soviet representatives in discussions of the Hungarian armistice terms on the basis of the Soviet draft, having in mind, of course, the desiderata embodied in the American draft proposals and our comment on the British draft.

Although additional instructions will be sent to you as soon as possible after the receipt of the full text of the Soviet draft, the Department desires now to draw your special attention to the following points:

1.
The Department regrets that the Soviet Government has decided to press for a unilateral settlement of reparations with Hungary by stipulating a specific sum in this case as in that of Rumania. During the discussions on the Rumanian terms this Government made clear its view that the stipulation of a specific sum to be paid as reparations [Page 907] should not be included in the armistice document and that it did not regard its action in agreeing to the Russian reparation demands on Rumania as setting a precedent in any way for the reparation settlements with Germany or with other satellite countries (reDepts 2176, September 931). Before the receipt of your telegram the Department had prepared an instruction directing you to present an aide-mémoire placing on record for this Government the substance of the Department’s views as outlined briefly above. You should accordingly reiterate this position in strong terms and make full reservation on this article pending the receipt of more specific instructions which will follow in a separate telegram. We shall be able to amplify our position with respect to this point when we have had an opportunity to examine the precise text; we are particularly interested in the types of commodities which may be specified since there is, as you may know, a substantial American interest, for example, in the oil industry in Hungary which is still in the development stage and which represents a continuing interest to us because it is almost entirely American-owned.
2.
With respect to the nature and functions of the Allied Control Commission, the Department prefers, as explained in its comment on article 13 of the British draft, that the Control Commission for Hungary act under the instructions of the Soviet High Command only during the military period which will come to an end with the termination of hostilities against Germany. Between that time and the conclusion of peace with Hungary we believe that the three Allied Governments should have equal participation in the work of the Commission and that the several representations [representatives] should report directly to their respective Governments. See in this connection a separate telegram concerning Article 18 of the Bulgarian armistice.32
3.
Your 3930 does not state whether the Soviet draft includes any reference to Transylvania or other territorial matters. You will undoubtedly have in mind the Department’s firm view in this regard as made clear in the course of the Rumanian negotiations, namely, that territorial settlements should not be embodied in the armistice document and that no final decisions on territorial disputes should be taken during the course of the war.

Sent to Moscow; repeated to London.33

Hull
  1. No. 2403, October 10, not printed.
  2. Vol. iv , section under Rumania entitled “Negotiations leading to signing of armistice with Rumania …”
  3. See telegram 8526, October 14, midnight, to London, p. 455.
  4. As telegram 8519.