111. Telegram From the Embassy in Hungary to the Department of State1

438. 1. US-Hungarian relations were reviewed in two hour meeting between Assistant Secretary Leddy and Deputy Foreign Minister Bela Szilagyi Sep 27.3 At Szilagyi’s request Leddy outlined US views, including administration’s aim of continuing to seek East-West trade legislation and belief that meanwhile improvement in bilateral relations possible in several fields such as cultural and scientific exchanges and consular affairs. He reminded the Deputy Foreign Minister that President’s ability to offer Hungary most-favored-nation treatment is blocked [Page 314] at present by absence Congressional authorization, which in turn is influenced by political opposition against trading with countries that assist North Vietnam.

2. Szilagyi thanked Leddy for views and in turn outlined GOH standpoint. He said Hungarian-US relations are disturbed at two levels: (1) On world level, by US aggression against Hungary’s North Vietnamese friends, US policies in Middle East, Cuba, etc., and US role in European security question; (2) at bilateral level, by US trade discrimination against Hungary, inability to finish claims negotiations (which he attributed to US barriers to normal trade), US travel restrictions, and such incidents as recent defections Hungarian diplomats, which, he said, remains “serious hindrance to performance normal work of Hungarian Mission in Washington.” Szilagyi elaborated standard GOH line re Vietnam at great length, including necessity of unconditional cessation bombing, though he was unable offer opinion what would happen if US stopped latter. Similarly, re European situation, in response to Leddy statement that US hopes Eastern Europe governments will give receptive consideration to constructive E–W initiatives of Kiesinger-Brandt coalition, Szilagyi rehearsed familiar East bloc skepticism toward Bonn policies and stressed Hungarian support of GDR.

3. On bilateral relations, Szilagyi referred in passing to attacks by Hungarian émigré organizations and “US supported Radio Free Europe” as additional obstacles to normalization, but reverted to US trade discrimination as principal impediment from GOH viewpoint. In this connection he brought up and emphasized the point that even if MFN were extended, GOH would regard trade with US as problematic, even risky basis on which to found long range plans. He cited current Congressional proposals to withdraw MFN status from Poland as proof of unreliability of US East-West trade policy

Tims
  1. Source: Department of State, Central Files, POL HUNG–US. Confidential. Repeated to Bonn for Hillenbrand and to Belgrade for Leddy. Martin J. Hillenbrand was appointed Ambassador to Hungary on September 12 and presented his credentials on October 30.
  2. Beginning in spring of 1965, the dates and transmission times of all incoming Department of State telegrams were in six-figure date-time-groups. The “Z” refers to Greenwich mean time.
  3. A memorandum of their conversation was transmitted to the Department of State as an enclosure to airgram A–127 from Budapest, October 8. (Department of State, Central Files, POL 1 HUNG–US)