Wartime American Plans for a New Hungary

Document 2

Secret PWC - 150b

July 26, 1944

SUMMARY OF RECOMMENDATIONS. TREATMENT OF ENEMY STATES: HUNGARY

I. LONG-RANGE INTERESTS AND OBJECTIVES OF THE

UNITED STATES

1. The United States favors the independence of Hungary following its surrender, subject to such temporary controls as may be necessary.

2. The United States should favor the participation of Hungary in the general international organization with Hungary has demonstrated its intention and capacity to live at peace with its neighbors.

3. In accordance with its general policy of not recognizing territorial changes made by force, the United States should in principle, favor the restoration of the 1937- Slovak-Hungarian frontier. In the interest of the peace and stability of the Danubian region, however, consideration should be given to the ethnic claims of Hungary in the area of the Grosse Schuett and the Little Hungarian Plain. The United States should be prepared to look with favor upon any settlement of these claims reached through free and direct negotiations between Czechoslo- vakia and Hungary or through other peaceful procedures.

4. The United States should, in principle, favor the restoration of to Czechoslovakia with the frontier established in 1920. The United States should be prepared to look with favor upon any minor rectifications in the frontier reached through free and direct negotiations between Czechoslovakia and Hungary or through other peaceful procedures.

6. The United States favors preservation of the existing frontier between Austria and Hungary.

7 . The United States favors an adjustment of the Hungarian-Rumanian frontier in Transylvania along from north of Arad to Szatmár to Hungary. Provided the two countries are not occupied by forces of the United Nations, the territory in dispute between Hungary and Rumania may be placed under United Nations control pending subsequent adjustment.

8. Full encouragement should be given to the democratic forces within Hungary. In order to achieve this, the United States should lend encouragement to electoral and land reform which would open the way for peaceful development of social and political democracy and would eliminate the control of the reactionary minority which has monopolized political power at home and threatened the peace of the Danubian region.

9. In order to reorient the Hungarian economy and to overcome Hungary's excessive dependence upon German markets, Hungary should be encouraged to expand its world trade on a non-discriminatory basis and within the framework of such international economic organizations as may be established.

10. The United States should be prepared to conclude a trade agreement with Hungary after the war, with a view to reducing trade barriers between the two countries and to expanding mutual trade relationships.

11. The United States should favor the participation of Hungary in such regional groupings as, might seem to promote its economic welfare and political security, so long as they are not in conflict with the purposes and practices of a general international organization, and are consistent with the policies of this government and with the best interests of the United Nations.

II. AMERICAN POLICY IN THE TRANSITION PERIOD

12. The Hungarian people should be encouraged to resist the German invaders by assurances of future political independence and of future participation in international economic and political arrangements.

13. Hungarian surrender should be accepted from any group which will be in a position to effect surrender, although the political desirabili- ty of accepting surrender from the groups responsible for participation in the war against the United Nations should be kept in mind.

14. The principle of unconditional surrender still applies to Hungary. If the Hungarian people resist the Germans and establish a more Final Summaries and Recommendations 283

democratic goverrrnent friendly toward the United Nations, the United States and its Allies will have to determine whether occupation and military government are necessary. If military government is not set up, they must nevertheless be established a commission or other agency should be established to control such matters as disarmament, repara- tion and the punishment of war criminals.

15. If it becomes necessary to occupy Hungary, the supreme authority in Hungary should rest with the commander-in-chief of the armed forces which will operate in that area on behalf of the United Nations. Yugoslav and Czechoslovak participation, if admitted, should be limited to token forces.

16. Full opportunity should be afforded during the occupation period for the establishment of a provisional government representative of all democratic groups in Hungary as the best means of insuring a perma- nent government of representative character. The United States should disapprove the restoration of the Habsburgs to the throne of Hungary or the continuance in power of those Hungarian political forces which brought Hungary into war against the United Nations.

17. In accordance with its general policy of not recognize the acquisition of territory by force, the United States should favor the return to Czechoslovakia, and Yugoslavia, immediately upon their liberation, of the territories taken by Hungary in 1938-1939 and 1941. The return of these territories to Czechoslovakia and Yugoslavia during the transitional period should not prejudice subsequent adjustments as indicated in paragraphs 3, 4 and 5 above.

18. Hungary should be required to provide reparation in accordance with a general agreement among the United Nations. Any stores requisitioned during the period of control in Hungary should be credited to Hungary's reparations account.

Originally prepared and reviewed by the Inter-Divisional Committee on the Balkan-Danubian Region.

Reviewed and revised by the Committee on Post-War Programs, May

26, 1944. Revised to conform with papers on Rumania and Bulgaria, July 26, 1944.

Box 142

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Wartime American Plans for a New Hungary