FOREIGN RELATIONS, 19 4 6, VOLUME VI



  Meanwhile of course we also have desires and claims which Hun-
garian Govt can show disposition to meet. It would be wise, in my
opinion, for Dept to emphasize our disappointment for instance in
Hungarian denial of landing rights for American civil aircraft while
we have refrained from pressing claims affecting American prop-
erty and Hungarian obligations with reference thereto.
                                                      SCHOENFELD
864.00/6-1146
The Minister in Hungary (Schoenfeld) to the Secretary of State

No. 1574                                  BUDAPEST, June 11, 1946.
SECRET                                          [Received July 2.]
  SIR: In reference to my telegrams nos. 975 of May 24 13 and 1062 of
June 5 14 and interim reports on the political crisis created by the
demands of the Smallholders Party for fuller participation in pro-
vincial administration and police affairs in addition to the holding
of elections in provincial districts, I have the honor to submit as of
possible interest to the Department a report by Mr. Imre Deri of
the Legation, in which are described the steps by means of which the
opposing parties of the coalition were brought to a compromise
solution.
June 5,1946
  "After a day full of excitement and dramatic turns, the political
crisis ended in a compromise. The demands of the Smallholders
Party have not been met fully by the leftist parties and the tangible
results achieved by the majority party are in no proportion to the
hue and cry raised by the Smallholders only yesterday. Yet the party
justly claims a victory. This is the first time the party has dared to
revolt against the leftist dictatorship and wring concessions from
them. If Mr. Pushkin had allowed the crisis to take its natural
course, and if Tildy and Nagy had had more nerve and backbone
to hold out longer for more concessions, they would have gotten them.
Out of the maze of conferences and negotiations which took place
between yesterday evening and this afternoon only those stand out
which show direct or indirect interference of the Russians. Yester-
day afternoon, just before the meeting of the Smallholder deputies
began, Mr. Gregoriev 15 called up Secretary Balogh; the Prime Min-
ister had already left his office and could not be reached by Gregoriev.
Mr. Gregoriev told Father Balogh that Mr. Pushkin would like to see
Nagy Ferenc. Balogh gave this message to Nagy at the Small-
holders' meeting, and the Prime Minister, on his way to Tildy, asked
'3Not printed, but see footnote 7, p. 300.
14Not printed; in it Minister Schoenfeld reported having been informed by
Foreign Minister Gybngyosi that the Government crisis had been ended as a
result of indirect Soviet pressure (864.00/6-546).
1 Counselor of the Soviet Legation in Hungary.



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