FOREIGN RELATIONS, 1946, VOLUME VI



864.00/10-1946: Telegram
  The Minister in Hungary (Schoenfeld) to the Secretary of State

SECRET                         BUDAPEST, October 19, 1946-3 p. m.
US URGENT                                     [Received 3: 51 p. m.]
  1972. Mytel 1970, October 18.82  Prime Minister told me last night
demands served on him yesterday by Leftist bloc embodied many
points already accepted or acceptable for his political program to
be discussed October 20 in his speech marking sixteenth anniversary
establishment Smallholders Party. Leftist demands as submitted, he
said, contrasted with dire expectations in view of vociferous build-up
since prior to Communist Congress last month. lIe said it is fact
Leftists are honestly fearful of possible counter revolutionary action
by certain elements which do exist and must be guarded against. On
other hand overwhelming majority Hungarian people just as deeply
fear Communist domination. He recalled that in 1919 Communist
regime was installed here by 150 armed sailors and that while he
might be able once a year, as he did last month, to summon 300,000
peasants to Budapest Leftists could take control any day with 10,000
armed men.
  Nagy continued that middle of road progress towards real democ-
racy as desired by majority Hun garian people requires avoidance own
[openl] conflict with Leftists pending further consolidation of democ-
racy in Europe generally of which he sees increasing signs. It was.
also necessary to escape fate of Rumania where democratic facade
thinly veils Communist control. These aims would be jeopardized by
yielding to those in Smallholders Party who want to force issue with
Leftists at this time. His hopes were now directed to possibility of
securing agreement among coalition parties on a one year political
program. If he could get such agreement recurring crisis within
coalition might be minimized for that period while stabilization of
wider European democracy makes further progress.
  Prime Minister said obviously success of any such policy depends
on Soviet attitude and therefore he had tried recently to ascertain
Soviet intentions from Pushkin and Sviridov during Hungarian
[apparent garble] party to which he invited them. Russians had
given him to understand they were not disposed to interfere on behalf

82Not printed; in it Schoenfeld reported that the bloc of left-wing Hungarian
political parties were making the following demands on Prime Minister Nagy:
measures to help workers and peasants, including a 25 per cent reduction
in
industrial prices; state control of all banks; democratic reform of the public
administration; state monopoly of school book publication; expulsion from
the
National Assembly of Smallholder deputies who had injured coalition discipline,
agitated against democratic institutions, or injured relations with friendly
powers (864.00/10-1846).



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