DIPLOMACY IN A WHIRLPOOL |
DOCUMENT 18
UNITED STATES MEMORANDUM ADDRESSED TO THE HUNGARIAN GOVERNMENT, OCTOBER 31.
1945, CONCERNING THE SOVIET-HUNGARIAN ECONOMIC COOPERATION AGREEMENT.
In the view of the Government of the United States, the economic collaboration
agreement recently negotiated between the Union of the Soviet Socialist
Republics and Hungary is contrary to the United States policy of
nondiscrimination in economic and commercial matters as that policy has been
evidenced in the treaty signed with Hungary on June 24, 1925.
Attention is invited to the following points in this connection:
1. Article X of the United States Hungarian treaty assuring most favored
nation treatment to nationals of the United States would make it necessary that
joint Soviet-Hungarian enterprises for reconstruction and development in
Hungarian industry, agriculture, transport and banking should be established
and operated in such a manner as not to impair most favored nation treatment to
nationals of the United States. Particular importance is attached by the United
States to receiving most favored nation treatment for United States nationals
in the field of discovery of petroleum, as well as its exploitation, refining,
processing and marketing.
2. Special concern is felt by the Government of the United States at the
clause in the Soviet-Hungarian economic collaboration agreement which permits
Soviet-Hungarian participation in "existing" plants since nationals of the
United States have substantial interests both in petroleum and in other
properties in Hungary. Hence, action adversely affecting these interests is
considered undesirable by the Government of the United States which must point
out that the proper recognition and protection of such interests is
necessary.
3. With reference to the organization and development of river and ocean
shipping, the Government of the United States believes that the Soviet-Hun
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garian economic collaboration agreement should not be so implemented as to
prevent complete freedom of transit being granted as provided in Article XIII
of the treaty between the United States and Hungary.
4. The Government of the United States believes, with regard to the operation
of the undertaking on the part of the Hungarian Government to facilitate the
processing of raw materials supplied by the Soviet Union for processing in
Hungarian factories, that this undertaking by the Hungarian Government should
not be so implemented as to deny for United States nationals unconditional
most favored nation treatment as agreed to in Article VII of the treaty
between the United States and Hungary.
In general, the Government of the United States considers the purposes of the
United States Hungarian treaty of continued importance without reference to
the present status of that treaty as a result of hostilities, since the treaty
could be restored to full force and effect upon the conclusion of peace and
perhaps replaced at a later date by a new treaty mutually granting even broader
rights.
Budapest, October 31, 1945.
DOCUMENT 19
BRITISH NOTE VERBALE ADDRESSED TO
THE HUNGARIAN GOVERNMENT,
NOVEMBER 19, 1945,
CONCERNING THE SOVIET-HUNGARIAN
ECONOMIC COOPERATION AGREEMENT.
No. 92
British Political Mission in Hungary. 133/116/45 Budapest, November
19, 1945.
NOTE VERBALE
His Majesty's Government desire to make reference to the proposed Russo-Magyar
Agreement for Economic Co-operation and to remind the Hungarian Government that
under Article 2 of the Anglo-Hungarian Commercial Treaty of 1926, Great
Britain secured most favoured nation rights. Even if this Treaty is technically
abrogated by the war, the conditions of the Armistice guarantee to Great
Britain the restoration of pre-war rights. It would indeed be intolerable if,
having won the war, Great Britain were asked to accept less extensive rights
than those previously enjoyed.
For the information of the Hungarian Government it is pointed out that
discussions on this subject between His Majesty's Government and the Central
Government of the Union of Soviet Socialistic Republics in Moscow have not, in
fact, been closed, and they will be resumed.
DOCUMENT 20
NOTE VERBALE ADDRESSED BY
THE HUNGARIAN MINISTRY FOR FOREIGN AFFAIRS
TO THE POLITICAL MISSION OF
THE UNITED STATES OF AMERICA
ON DECEMBER 20, 1945,
CONCERNING THE SOVIET-HUNGARIAN
ECONOMIC COOPERATION AGREEMENT.
145/res.Be. 1945. NOTE VERBALE 1
The Hungarian Ministry for Foreign Affairs presents its compliments to the
Political Mission of the United States of America and, referring to the
Memorandum handed over by His Excellency H. F. Arthur Schoenfeld on October
31st, 1945, to M. J. Gyongyosi, Minister for Foreign Affairs, has the honor to
communicate that the National High Council ratified in its session held today
the Agreement concerning economic cooperation between Hungary and the Union
of the Soviet Socialist Republics signed at Moscow, on the 27th of August,
1945.
The ratification will be exchanged in the near future at Budapest.
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When deciding on the ratification, the National High Council took into
consideration the resolution of the Political Committee of the National
Assembly, according to which:
"The Political Committee of the National Assembly presents for ratification
the Hungaro-Soviet Agreement on Economic Cooperation to the National High
Council and takes cognizance of the Government's declaration stating that this
Agreement by no means impedes the Hungarian State to conclude economic or
commercial Agreements of any kind with other States."
The Hungarian Ministry for Foreign Affairs wishes to add to the aforesaid
that, according to the Hungarian Government, the Agreement of Economic
Cooperation concluded with the Soviet Hnion does not effect the validity of the
"Most favored nation Clause" inserted in the Treaty of Friendship, Commerce and
Consular Rights concluded between the Kingdom of Hungary and the United States
of America at Washington, on the 24th of June, 1925. 2
Budapest, December 20th, 1945.
--------- l The same day the British political representative in Budapest
received a note couched in identical terms which referred in its last
paragraph to the Treaty of Commerce and Navigation concluded between the
Kingdom of Hungary and the United Kingdom of Great Britain and Ireland in
1926.
2 For the termination of this treaty one year notice was required. This notice
was given to Hungary on July 5, 1951, and one year later President Truman
ordered the Treasury Department to end all trade agreement benefits to
Hungary.