101. Telegram From the Legation in Hungary to the Department of State1
439. Apparent phasing out of jamming will further favorable image GOH attempting create of progressive country taking broad set of initiatives improve relations with West. Initiatives involving USG may be in areas of maximum favorable international impact where GOH can move independently or in collaboration with USSR while leaving untouched residue hard core problems affecting operating position Legation (property, personnel etc) and hampering USG effectiveness generally within Hungary. Other moves involving USG that should not surprise us would be thinning out or removal Soviet troops, withdrawal conspicuous surveillance of Legation, and piecemeal approaches toward settling old debts and claims. Latter might include approach to US bankers to settle old $6 million default with view making it easier for Hungarians do business with US private sector and banks.
All of this would be to the good. We should, however, take measures to assure that accurate image of USG posture is widely known during all this and keep pressure on GOH to move in all areas in which USG interested. To counteract, for example, foreign and local press play that Mod recently told Under Secretary Harriman that GOH ready to discuss all outstanding issues, we suggest media (including SPO Vienna) be used to disseminate following ideas: In Washington and Budapest USG has identified outstanding US-Hungarian problems of bilateral character [Page 297] involved in improvement relations; has taken initiatives to point [to?] essential elements of some of these and invited GOH response; and has expressed willingness to discuss others. These same points might also usefully be gotten across to diplomatic corps when suitable opportunities arise.
- Source: Department of State, Central Files, POL HUNG–US. Confidential.↩