HUNGARIAN-RUMANIA PROPERTY AGREEMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R002300600004-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 14, 2016
• Document Release Date: March 5, 2001
• Sequence Number: 4
• Publication Date: February 10, 1949
• Content Type: REPORT

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Hungarian-Rumanian Property
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In early 1948, a preliminary agreement. was signed by Dr. Iatvan Antos,.
State Secretary of the Hungarian. Ministry of Finance, and Secretary
General Joia of the Rumanian Ministry of Finance establishing four plenary
mixed committees to negotiate agreements on economic problems involving the
two countries.
Committee No. 1 established legal and administrative channels and provided for
mutuaAl legaiisistaace and reciprocal exchange of. archives on all matters
within the jurisdiction of the other three committees. The work of this
committee was completed in the summer of 1948.
Committee No. 2 established ways and means for commercial and financial trans-
actions ben the two countries. An agreement was reached in principle on
facilities to be used in commercial and financial transactions, but the
Rumanian and Hungarian National Hanks and the members of the commmittee have
not yet been able to agree on a stable rate of exabange between the forint
and the lei.
Committee No. 3 is concerned with pbatal and railroad communications.
on renoes are still in progress.
Committee No. 4 has jurisdiction in all other economic problems confronting
Eire ug eo entries. Antos, representing the Hungarian Government, and
i1lexander Jacob, Rumanian Deputy Minister of Finance, are co-chairmen of the
committee. One of the most important problems immediately confronting the
commiittee was settlement of the status of Hungarian-owned properties in
2 ~ X6 and Rumanien?owrned properties in Hungary.
Ruman
Co Comtaentt All Hungarian-owned property in Rumania was sequestered
-Allived Rumanian Government which was established toward the and
of the last wars This action has been applied also to Hungarian property
in territories later annexed by Rumania, including land belonging to more
than 10,000 Hungarian farmers who have left northern Transylvania since
the and of 1944.)
2. In the course of deliberations. by Committee No. 4, Antos,. in the opinion of
his Hungarian colleagues, let the farm land problem remain unsolved. He
stated that farm land belongs to the person cultivating it, and that the
title to farm properties nationalized by the pro-Allied Rumanian Government
vihen the Hungarian owners i led to rem sin was not a matter of first importance.
The United St
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The Hungarian delegation did not consi der this a formal renunciation of
Hungarian rights to the farm properties in question, however.
3. Another problem to be considered was the status of HHungarian-owned industrial
Antos stated that the Hungarian Government appreciated Rumanian efforts to
liquidate the capitalist system and that the Hungarian Government recognized
the nationalization by Rumania. of the numerous industrial enterprises vt+hich
formerly belonged to Hungarian nationals in Rumania. For this reason the
Hungarian Government was not attempting to bring about the return of these
industrial properties to Hungarian otmorship, nor did it intend to create
a precedent whereby the 'Jestern powers might introduce claims for
nationalized property in Hungary formerly owned by rJestern nationals. Anton
requested, therefore. that the Rumanian Government compensate Hungary for
nationalized industrial establishments formerly owned by Hungarian citizens,
but that the transaction be disguised so as not to reveal the real reason for
payment. The Rs nian oorrdttee members refused to commit themselves on this
point, but agreed to forward Antos' request to the Rumanian Cabinet for
consideration.
enterprises which had been nationalized by Rumania.
Comments .1hereas there are considerable Hungarian industrial
of ngs the present borders of Rumania, there are almost no Rumanian
industrial holdings in Hungary).
not give any indication when a decision was expected
on this point. Apparently, the matter was still pending on 21 September 1948,
Since property in this category is excluded from the terms of the formal
agreement and its confidential annex signed on that date, which are discussed
below.)
On 21 September 1948, an agreement was signed by Committee No. 4, stating
that all privately-owned houses, furniture, and other personal belongings in
Rumania to which Hungarian nationals once held title, were to be released
to their Hungarian owners by Casbi, Rumanian Property Control Office.
remarks which follow, it seems that this action'
u e unqualified release of all the proper involved to its
former owners, but merely recognition of their ownership.)
it was further agreed that a small amount of the movable property involved,
as defined in a "type inventory," was to be. released for restitution; movable
property in excess of the "type inventory" was to be sold and the proceeds used
to cover transport and administration expenses incurred in the private property
restitution Drocess. In cases concerning privately-owned real estate, it would
be permissible to nxohange houses and buildings ovmod by Hungarians in Rumania
for similar privately-amed property in Hungary after payment to the
Rumanian Government of one half of the usual taxes assessed on property
transfer transactions; the Hungarian Government agreed to grant the same
rights to Rumanian nationals having real estate in Hungary.
5. In a confidential appendix to the 21 September agreement, Hungary renounced its
right to properties in Rumania formerly owned by juridical persons (corporations
and other legal entities) of Hungary, except for industrial enterprises
and real estate which have been nationalized by the Rumanian Government.
Hungary also renounced its rights to movable properties, not a part of an
industrial establishment, which are now in the-possession of a Rumanian state
institution, Rumanian Communist Party, or any recognized "democratic mass-
organizations"; rights to properties in this latter category were renounced
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regardless of whether the properties were formerly privately-owned
by Hungarian nationals, by juridical persons, or by the Hungarian
Government. In reciprocation for Hungarian concessions made in the
confidential appendix, the Rumanian Government renounced its rights to all
deported goods of Rumanian origin within the state boundaries of Hungary
as of 21 September 1948, including Jewish gold from Transylvania which was
rvstituted to Hungary by French authorities.
6. Antos refused to claim $1,000,000 worth of pipe belonging to M. RT,
Hungarian-American Oil Company, which is now in Rumanian possession,
although the M&CR2' representative in Rumania requested Antos to claim the
pipe.
SECIET
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