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(RUMAN -2- Es S ARCHIVES "NATIONAL RECORDS SERVICE AND COVERAGE soon as this proposal came up for preliminary discussion by the Deputy Foreign Ministers, the United States repre- sentative objected. He recalled the reservation made by the United States Government at the signing of the Hun- garian Armistice and reasserted his Government's right to reopen the question of reparations. He also stated the general principle that "the United States Government has repeatedly made known its disagreement with the process of fixing reparation obligations in the abstract without regard to the possible effects of the obligations upon economic conditions in the enemy states concerned. " The American representative pointed out that the economic situation in Hungary was certainly serious enough to question the wisdom of arbitrarily imposing an excessive reparations burden. He insisted that the matter was of sufficient im- portance to warrant full consideration by the Foreign Ministers themselves. to RECORDE AND the When the Foreign Ministers turned their attention to the matter in May 1946, the American Secretary of State took a strong position regarding the excessive reparations burden imposed by the Armistice. As a result of American insistence, the Soviet Union made a minor concession by agreeing to extend the time limit for reparations payments from six to eight years. The Soviet Union was unwilling, however, to reduce the total amount of reparations to be paid by Hungary In the discussion which followed, the American Secretary of State pointed out that the Hungarian Government had complained to the Council of Foreign Minis- ters of the precerious economic situation in Hungary. No detailed information accompanied the Hungarian Government's statement, however The American Secretary of State re- quested that the Soviet Union supply information on the exact state of Hungary's economy so that the Foreign Ministers could judge more accurately as to whether the $300,000,000 reparations obligation was excessive. The Soviet Foreign Minister refused to supply such information. Instead, he charged the United States with being chiefly responsible for whatever economic distress existed in Hungary The Soviet Foreign Minister accused the American occupation authorities of holding three billion dollars worth of Hungarian goods and assets in the American Zones of Germany and Austria. The American Secretary of State denied that Hungarian assets in the American occupation zones were worth even a fraction of three billion dollars. In any oase, he promised prompt return of whatever Hungarian equipment could be identified

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    "ocrText": "(RUMAN\n-2-\nEs S ARCHIVES \"NATIONAL RECORDS SERVICE AND\nCOVERAGE\nsoon as this proposal came up for preliminary discussion\nby the Deputy Foreign Ministers, the United States repre-\nsentative objected. He recalled the reservation made by\nthe United States Government at the signing of the Hun-\ngarian Armistice and reasserted his Government's right to\nreopen the question of reparations. He also stated the\ngeneral principle that \"the United States Government has\nrepeatedly made known its disagreement with the process\nof fixing reparation obligations in the abstract without\nregard to the possible effects of the obligations\nupon\neconomic conditions in the enemy states concerned. \" The\nAmerican representative pointed out that the economic\nsituation in Hungary was certainly serious enough to question\nthe wisdom of arbitrarily imposing an excessive reparations\nburden. He insisted that the matter was of sufficient im-\nportance to warrant full consideration by the Foreign\nMinisters themselves.\nto RECORDE AND\nthe\nWhen the Foreign Ministers turned their attention to\nthe matter in May 1946, the American Secretary of State\ntook a strong position regarding the excessive reparations\nburden imposed by the Armistice. As a result of American\ninsistence, the Soviet Union made a minor concession by\nagreeing to extend the time limit for reparations payments\nfrom six to eight years. The Soviet Union was unwilling,\nhowever, to reduce the total amount of reparations to be\npaid by Hungary In the discussion which followed, the\nAmerican Secretary of State pointed out that the Hungarian\nGovernment had complained to the Council of Foreign Minis-\nters of the precerious economic situation in Hungary. No\ndetailed information accompanied the Hungarian Government's\nstatement, however The American Secretary of State re-\nquested that the Soviet Union supply information on the\nexact state of Hungary's economy so that the Foreign\nMinisters could judge more accurately as to whether the\n$300,000,000 reparations obligation was excessive.\nThe Soviet Foreign Minister refused to supply such\ninformation. Instead, he charged the United States with\nbeing chiefly responsible for whatever economic distress\nexisted in Hungary The Soviet Foreign Minister accused\nthe American occupation authorities of holding three\nbillion dollars worth of Hungarian goods and assets in\nthe American Zones of Germany and Austria. The American\nSecretary of State denied that Hungarian assets in the\nAmerican occupation zones were worth even a fraction of\nthree billion dollars. In any oase, he promised prompt\nreturn of whatever Hungarian equipment could be identified"
}