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29. NO WAY OUT

(Hungary’s history from the Depression to the end of World War II)

This chapter records some of the events that have shaped the present world. As the documentation of the events and developments described is still incomplete, and the historical perspective is insufficient, we shall only present a chronological record of the main events and introduce the makers of Hungary’s recent history, leaving it to the reader to analyse their motives and assess the results of their actions.

* * *

The crisis years

In consequence of the world financial crisis of the 30s, no foreign loans could be raised for the Hungarian economy and some of the existing loans were foreclosed. Banks, businesses and industries collapsed and many farms were ruined because of the 75% fall in the export price of wheat. Unemployment rose causing unrest and demonstrations in the cities.

This was the situation which Bethlen’s successor, count Gyula Karolyi, faced as Prime Minister (1931-1932). He instituted harsh austerity measures, including a 50% cut in public expenditure (he traveled by bus to his office every day. . .), increased taxation and ordered reductions in salaries and wages. When these restrictions failed to remedy the situation, he resigned.

Horthy appointed the leader of the young radicals in the government party, general Gyula (Julius) Gombos, as Prime Minister (1932-1936). Gombos was an ardent nationalist with progressive social ideas. The conservatives in the government advised against radical social reforms and so Gombos and his brilliant Finance Minister, Bela Imredy, concentrated on the economic problems. Some foreign loans, expertly negotiated by Imredy, further cuts in government expenditure and an improve taxation policy set the nation on the road to recovery.

The basis of Gombos’ foreign policy was revisionism (cf. Chapter 26), which he sought by peaceful means. He turned first to Italy, the country which seemed to show some understanding of Hungary’s problems. When he saw that Hitler was endeavouring to effect a revision of the Versailles Treaty, he suggested closer Italian-German co-operation by forming a "Berlin-Rome Axis" (a term invented by Gombos). Later, or seeing the increasing German aggressiveness toward Austria he initiated the Italian-Austrian-Hungarian alliance (R.ome Protocols, 1934) in order to resist German pressure. After the assassination of the Austrian Chancellor, Dolfuss, Gombos realised that nothing could stop the German annexation of Austria and adopted a more Germanophile attitude.

The 1935 election brought victory to his young follower and Gombos was ready to proceed to his ambitious social programmes. He was then struck by a disease and died at the age of 50.

Horthy, who had not been very happy with Gombos’ pro-German policies, appointed Kalman Daranyi in his place (1936 1938). Daranyi began by steering a middle-of-the-road policy in both internal and external politics and kept a firm control on all extremists of the left and right. It was at this time that the first National Socialists appeared on the Hungarian political scene. They formed various small parties but could not form a united front. The philosopher of "Hungarism", (the Hungarian National Socialist ideology), Ferenc Szalasi, made his debut in politics and was imprisoned several times – a fact, which increased his political charisma and the number of his followers.

Daranyi introduced a much-needed electoral reform bill (with secret and compulsory vote for men and women). After Austria's annexation by Germany, Daranyi launched a massive rearmament programme. In his foreign policy he favoured, by necessity, Germany, Hungary’s new, powerful neighbour. Trying to cede to German pressure, Daranyi introduced the First Jewish Law.

Alarmed at his policies, Horthy asked Daranyi to resign.

In the shadow of Germany

Bela Imredy, a devout Catholic, and known to be an Anglophile at that time, seemed the right choice for the post of Prime Minister (1938-1939) in the year of the Eucharistic Congress held in Hungary in connection with the 900th anniversary of Saint Stephen’s death.

In August of that year, Hitler invited Horthy and Imredy to Germany. The German leader suggested that Hungary should attack Czechoslovakia, seeing this as an excuse for Germany to step in and crush the country. Horthy and Imredy rejected his proposals. Then Horthy and his Foreign Minister, Kanya, gave Hitler and Ribbentrop some unsolicited advice on their war-mongering policies and the talks broke up in a hostile atmosphere.

At the famous Munich meeting of the four Prime Ministers (29 September, 1938) only Germany’s claims against Czechoslovakia were settled. The Hungarian government began negotiations with the Czech government without success. Hungary then appealed to France and Britain, but the two powers suggested that Germany and Italy should mediate. Thus Hungary asked for and accepted the decision of Germany and Italy, given in the so-called First Vienna Award (30 October, 1938), which returned to Hungary the Magyar-inhabited southern strip of Slovakia and Ruthenia.The British and French governments acknowledged the territorial changes.

The western powers’ reluctance to participate in Central European politics convinced Imredy that the region had been left to the mercy of Hitler’s Third Reich. Thus he changed his anti-German attitude. Hungary joined the Anti-Comintern Pact of Germany, Italy and Japan, left the League of Nations and introduced the Second Jewish Law.

Then someone found proof that one of Imredy’s ancestors was (probably) Jewish. Faced with this evidence, Imredy resigned.

Horthy turned to his old friend, the former Prime Minister, count Pal Teleki, who reluctantly agreed to head the government (1939-1941). In March, 1939, Hungary, simultaneously with the German action against Czechoslovakia, occupied Ruthenia (the eastern-most province of the dismembered Czechoslovakia, formerly a Hungarian district). The Hungarophile Ruthenes were pleased, and so were the Poles, who now had a common border with their friends, the Hungarians.

Before their attack on Poland, the Germans asked for permission to move troops across Hungary. Horthy categorically refused.

The coming of World War II

When the war broke out, Hungary remained non-belligerent but helped the Poles unofficially with volunteers and by admitting about 200,000 refugees (including many Jews).

In the summer of 1940, Hungary suggested negotiations with Rumania with a view to a revision of the frontiers in Transylvania. When Rumania refused to negotiate, Hungary mobilised. Rumania then asked Germany to mediate. Thus Germany and Italy handed down the Second Vienna Award (30 August, 1940), which returned to Hungary about 40% of the territory given to Rumania at the Trianon Peace Treaty

In September 1940 Hungary joined the Tri-Partite Pact (Germany-Italy-Japan). Teleki then negotiated a Friendship Treaty with Yugoslavia with a hardly disguised anti-German edge. Yugoslavia was then persuaded to join the Tri-Partite Pact. On the day of the signature there was a coup d’etat in Belgrade and the new Yugoslav government repudiated the pact with Germany and accepted a British guarantee instead. Hitler decided at once to punish Yugoslavia and again he suggested that Hungary should attack first. Horthy and Teleki refused the suggestion.

The Hungarian government decided not to interfere in the German-Yugoslav conflict unless Yugoslavia disintegrated or the Magyar minorities were in danger. Teleki sent this information to London, asking for Britain’s understanding of Hungary’s position. Britain answered by threatening a break of diplomatic relations if Hungary allowed the Germans to cross her territory and said she would declare war if Hungary attacked. In the meantime, German troops began to move against Yugoslavia across Hungary. Teleki, on receiving the British note and the news of the German troop movements, shot himself in protest against Hungary’s involvement (3 April, 1941). The circumstances of the German troop movements and of Teleki’s death are still unclear.

Involvement

After Teleki’s death the Foreign Minister, Laszlo Bardossy, was appointed Prime Minister (1941-1942). Germany attacked and overran the Yugoslav defences, and on the 10th of April Croatia declared her independence. Yugoslavia now ceased exist and the Hungarian government sent some troops to the Magyar-populated Bacska district.

When Germany attacked the Soviet Union (22 June, 1941), Hungary declared her intention to remain non-belligerent. A few days later the Hungarian town Kassa was bombed, allegedly by Soviet planes. After some talks with Horthy and the government, Bardossy declared to the Parliament that a state of war existed between Hungary and the Soviet Union. The circumstances of this declaration are similarly unclear.

A small force – the Mobile Corps – was sent to the Russian front. Britain declared war on Hungary in December 1941. Hungary declared war on the U.S. simultaneously with the other Tri-Partite states. In the spring of 1942 the Germans demanded more substantial help in Russia, hinting that as tbe Rumanians had sent two armies, Germany might return Northern Transylvania to them. So the Hungarian 2nd Army was sent with 10 divisions for front line service, and a few added divisions for occupation duty.

There had been some partisan activity in the Hungarian occupied Bacska (the Magyar inhabited district of former Yugoslavia). The impetuous Hungarian commander – a pro-German general – took unwarranted, brutal steps to suppress the partisan activity and had many partisans and suspects executed, with the knowledge of the Budapest government. An investigation followed but the general eventually fled to Germany with some of the other officers involved in this so-called "Ujvidek massacre"

As the Regent was in his 75th year, the question of succession had to be considered. The Parliament elected the Regent’s son, Istvan Horthy, as Deputy-Regent. Upon his election, the Deputy Regent, a reserve officer in the Hungarian air force, joined his unit fighting in Russia. In August 1942, during one of his mission his plane crashed and Istvan Horthy died.

Hungary’s unwilling participation in the war created among many of the nation’s leaders, churchmen, moderate politicians and intellectuals strong anti-German and anti-war feelings, which developed into a powerful silent resistance. They sought peaceful and legal ways to extricate Hungary from her ever-increasing commitments on the side of Germany. Tibor Eckhardt, the leader of the largest opposition party (the Smallholders), went to the U.S. in 1941 to prepare a possible government-in-exile should the German pressure become unbearable. Horthy knew about the aims of the group and discreetly supported them.

In the spring of 1942 Horthy appointed Miklos Kallay (1942-1944) Prime Minister and entrusted him with the task of extricating Hungary from the war and restoring the country’s independence. Kallay began an astute course of diplomatic balancing acts, pretending to be a pro-German and in the meantime preparing the way to regain Hungary’s freedom of action. Hungarian humour has dubbed this policy the "Kallay Double Dance" from the famous folk dance of the Premier's native district. To begin with, he brought in the Fourth Jewish Law (after having discussed it with the Jewish leaders). At that time more than 100,000 Jewish refugees from other countries lived in Hungary in addition to the 700,000 Hungarian Jews. Thanks to Horthy and Kallay, they remained in security (though under some restrictions) until the German occupation in March 1944.

Kallay also instituted secret peace initatives abroad but the western responses were evasive The Casablanca Conference had already stated (1943) the demand for "unconditional surrender", while the Teheran Conference assigned Hungary to the Soviet sphere. These two decisions strengthened the arguments of the pro–German elements and frustrated the efforts of the peace-seekers. The vague verbal promises and agreements reached with Britain and the U.S. were later conveniently forgotten.

In January 1943 the Hungarian 2nd Army was holding 200 kilometres of the Don line in Russia with 9 "light divisions" (brigades). The army’s armoured division and air-brigade had been placed under German command and used elsewhere. The army had few heavy weapons, hardly any winter equipment (it was -45 degrees) and insufficient ammunition, though the Germans had promised to supply everything.

On January 13, a Russian army group and a tank army attacked the Hungarians. The Hungarian army of about 200,000 suffered 150,000 casualties, among them 100,000 dead. The bitter fighting lasted for three weeks. One Hungarian corps was surrounded and its commander captured fighting; the other divisions were annihilated or thrown back. The men fled in 40-50 degree cold, without transport, as the Germans monopolised the few roads and shelters.

The German occupation of Hungary

Hitler at last learned about Kallay’s tentative attempts to "jump out" (in the Budapest cafes everybody knew the exact details). He invited Horthy to Germany in March, 1944, faced the Regent with an ultimatum: unless Horthy replaced Kallay with a pro-German premier and placed Hungary’s potential at Germany’s disposal, Hitler would order Rumanian, Slovak and Croat troops to occupy Hungary. During the "talks" German troops occupied the key positions in Hungary

Horthy had no choice – Hungary had no fighting troops left to resist. So he appointed Dome Sztojay as Prime Minister and accepted pro-German ministers in the Government. German police and SS arrested many moderate and left-wing politicians and anti-German intellectuals. Leading personalities in the administration and army were replaced with pro-German appointees. The SS ordered the concentration of Hungarian Jews in ghettoes, then, without Horthy’s or the government’s knowledge, and with the connivance of some pro-German officials of the Interior, began to move the Jews to German concentration camps ostensibly for "work".

On learning of the deportations, Horthy defied the Germans and dismissed Sztojay and the officials who had collaborated with the SS in the deportations. He then appointed general Geza Lakatos to head the government of generals and non- political experts and ordered him to end Hungary’s participation in the war.

After Rumania’s volte-face in August 1944, the Soviet troops began to move into Transylvania. There were no Hungarian troops strong enough to stop them and the Germans refused to use against the Russians the panzer divisions occupying Hungary. By October the Russians stood near Debrecen.

The armistice. Hungary’s second German occupation

Horthy sent a delegation to Moscow to ask for an armistice.

A preliminary agreement was signed there on the 11th October. After the final Crown Council on the 15th of October 1944, Horthy announced to the nation that he was asking for an armistice and ordered the troops to stop fighting.

What followed is not clear. There are so many different accounts of the events that one can only state the results: Horthy was arrested by the Germans and the capital was taken over by the SS and the Hungarian National Socialists. Horthy learned that his (only) son had been kidnapped by the SS. In addition, all the strategic points of Budapest were in German hands (there were hardly any Hungarian troops in the capital). The Regent was forced to rescind his proclamation and to appoint Ferenc Szalasi as Prime Minister, replacing Lakatos arrested by the Germans. Horthy then abdicated and was taken to Germany as a prisoner, where he and his family were kept in custody until the end of the war.

Ferenc Szalasi formed a right-wing coalition government and, in November 1944, was elected "Leader of the Nation" by what was left of the Parliament. The Hungarian army was reorganised and many civilian and military leaders were arrested, taken to German concentration camps or executed (such as the members of the anti-German "Committee of Liberation", led by Endre Bajcsy-Zsllinszky). In Budapest, certain criminal elements, claiming adherence to the "Arrow-Cross" (the Hungarian National Socialists), took the opportunity to commit atrocities against the Jews and opponents of the regime. The retreating Germans took to Germany all the livestock, equipment and machinery they could dismantle.

The entire Hungarian army continued fighting the Russians, their resistance strengthened by the horrifying news of the lootings, rapings and other atrocities in the Soviet-occupied Hungarian territories. For the same reason, hundreds of thousands of refugees moved west with the retreating troops.

In December, the Russians encircled Budapest, which was defended by Hungarian and German troops under the command of General Ivan Hindy. After the fall of Pest, the Germans blew up all the Danube bridges and the defenders continued the fight in Buda. During the seven weeks’ siege most of Pest and Buda, including the royal castle, was destroyed. Buda fell on the 13th of February, 1945 (it had been held longer than Stalingrad).

In the west the exhausted Hungarian-German troops fought on bravely, (one town, Szekesfehervar, changed hands seven times), defending Hungarian territory against superior Russian forces until the 4th of April, 1945.

Under Russian occupation

On receiving Horthy’s armistice orders, general Bela Miklos, commander of the First Hungarian Army, surrendered to the Russians. He and the members of Horthy’s Moscow armistice delegation were taken to Debrecen, occupied by the Russians. Here a "National Assembly" was hastily collected and it appointed Bela Miklos Prime Minister. His first government consisted of the members of the armistice delegation, politicians of the moderate or left-wing parties and three Communists (who held the key positions). This ‘Provisional Government" signed an armistice with the Soviet Union and duly declared war Germany, though no Hungarian unit ever fought against the Germans. The government was later moved to Budapest and received its orders from Marshal Voroshilov, Soviet Commander-in-Chief.

It is impossible to give an accurate account of Hungary's military and civilian losses. Of the more than 1 million Hungarians in the services, conservative estimates put the number of dead and missing at 200,000. At least a similar number of civilians perished as a result of bombings, atrocities and deportations, in addition to the 120,000 to 200,000 Jews, who died in German concentration camps (it is impossible to determine the exact numbers, as many of them were refugees from other countries) Altogether some 550,000 to 650,000 Hungarians perished during the war (total losses of the U.S.: 290,000).

The material losses were incalculable: some cities, most industries, transport installations and rolling stock were totally destroyed; the loss of agricultural produce and private property was immense. About one million soldiers and civilian refugees left the country at the end of the war, though many have returned since ("here you must live and die…")


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