PRESENT: V. M. Molotov, G. M. Pushkin, B. Va. Grigoriev (USSR Ministry of Foreign Affairs), Prime Minister Nagy Ferents, Deputy Prime Minister Sakasbich Arpad, Minister of Foreign Affairs Diendesbi Janos, Minister of Transportation Gero Emo, and Hungarian Envoy Sekfu Dula
Nagy says that on April 4 they celebrated the first anniversary of Hungary's liberation from Nazi rule. Hungary was liberated thanks to the heroic Red Army and Generalissimus Stalin. The Hungarian government understood that one year after the liberation they had to visit Generalissimus Stalin in order to express their gratitude for the liberation of Hungary, for the freedom of Hungarian political life, and for the independence of the Hungarian motherland. According to Nagy, the Hungarian government must not only express its gratitude, but also report on how the Hungarians use the freedom granted to them thanks to Generalissimus Stalin's good will.
Nagy asks for permission to briefly describe the situation in Hungary. He says that Hungary makes its policies by coalition, because the political parties that won the right to take part in the government both want to be responsible for the future of the Hungarian democracy. All the political parties accepted all the requirements of democracy. The Hungarian coalition rests on a wide political base, and that wide base gave it an opportunity to implement extensive reforms. They have implemented the land reform. The ruling elite was changed twice. The Hungarian Government has punished and continues to punish war criminals. The consolidation of economic life is being carried out according to a left program. The mines are being nationalized, and the big industries are being put under state control. The National Bank and the largest banks of the country are also under state control. An economic plan has been developed and a Department for Distribution of Raw Materials created.
The Hungarian government does everything in its capacity in order to put the liberated Hungarian people on their feet economically. The Hungarian national policy is the most modem one, which has already been implemented in the Soviet Union and in Yugoslavia. The reaction is constantly attacking the Hungarian democracy. The government undertakes everything possible in order not to allow the reaction to organize. The economic bases of the reaction are being liquidated. Hungarian democracy is still going to face struggle in the future, but this struggle will be successful. The invincibility of the Hungarian democracy will be ensured by reeducating the Hungarian people.
From the moment of Hungarian liberation Hungary's official foreign policy has been a pro-Russian policy. By educating people in this direction, the government strengthens democracy. This foreign policy - one of the sincere and profound friendship with the Soviet Union -- is being incorporated into the soul of the Hungarian people. Apart from the feeling of gratitude, Hungary is obliged to pursue a realistic policy determined by its geographical and ethnic situation. The direction of this realistic policy leads toward the Soviet Union.
Nagy says that precisely because of this realization he can inform Generalissimus Stalin with a feeling of deep satisfaction that they signed agreements on April 8 creating Soviet-Hungarian joint ventures in bauxite and petroleum production, and that they had concluded agreements on civil aviation and navigation even earlier in order to further strengthen the economic ties between the Soviet Union and Czechoslovakia.
Then Nagy says that the current leaders of the Hungarian policy were persecuted in the past, and that they seriously believe in their political principles. These leaders learned a lesson from the foreign policy, which was implemented by reactionary Hungary. Nagy emphasizes that Hungary fully trusts the Soviet Union and Generalissimus Stalin, and that he, as Prime Minister of Hungary, made his short report on the occasion of the first anniversary of the country's liberation on the basis of this trust.
Comrade Stalin says that Prime Minister of Hungary does not have to report to him, because the Soviet government considers Hungary an independent country, and, therefore, the Soviet government considers what Mr. Prime Minister just told us as information. Comrade Stalin thanks Nagy for the information.
Comrade Stalin asks, what is the Hungarian government doing to stabilize the Hungarian currency, and asks him whether the Soviet troops offend the Hungarian population. Comrade Stalin suggests that Nagy should speak about it openly and sincerely.
Nagy says that he would like to respond to the last question of Generalissimus first. In his words, the occupation army now does not experience any contradictions with the Hungarian population. Nagy states that he can say with a sincere joy that in the recent past there were only very rare incidents between the population and the occupation army. Often dishonest Hungarians abuse the occupation army themselves. Nagy says that the stay of a considerable number of Red Army troops remains a serious burden for the Hungarian economy. Comrade Stalin says that, according to Mr. Prime Minister's words, the Hungarian population cannot complain about the Red Army in moral terms.
Nagy confirms that the Hungarian population cannot complain about the Red Army in a moral sense--they only experience some economic difficulties.
Then Nagy reports that the Hungarian government undertook a number of steps to rebuild the economy. On April 7, the Hungarian government published its economic program. The Hungarian government, however, does not expect to achieve a complete improvement of the economic situation as a result of that program's implementation, but hopes to prevent further worsening of economic life, and to create conditions for its improvement...