HUNGARY’S CASE

Gisborne Herald, Volume LXXIV, Issue 22363, 23 June 1947, Page 3

HUNGARY’S CASE

INTERNAL PLOT CHARGES OF AID BRITAIN AND AMERICA SPYING ON RUSSIA (10 a.m.) LONDON, June 22. A Hungarian White Paper on the alleged conspiracy against the Hungarian Republic, issued last night, alleged that Britain and the United States had promised direct financial suport to the ex-Premier, M. Nagy’s group and used them for espionage against Russia, says the British United Press correspondent in Budapest. The White Paper gives “the confession of an arrested conspirator,” saying that the commercial attache of the | United States Legation had promised M. Nagy funds. Another “conspirator,” Miklos Jarmay, a former police officer and bodyguard for M. Bela Kovacs, former Sec-retary-General of the Smallholders’ Party, said, according to a White Paper, that he had suDplied two British officers in Budapest, a Captain Clark and a Colonel Hanley, with documents and information about the police organisation in Hungary. U.S. Official Implicated Reuter’s correspondent says the allegation against the commercial attache to the American Legation came from statements claimed to have been made by M. Kapocs, a former private secretary of the ex-Premier, M. Nagy. M. Kapocs was arrested in Budapest on the night of the announcement of M. Nagy's resignation. M. Kapocs allegedly said that M. Nagy had ordered him to. give the American attache every facility and courtesy as “this gentleman has promised financial support for the Smallholders’ Party at the next election.” An official statement denies that the President, Dr. Tildy, has resigned, but there is still much speculation about his possible resignation . following Lasslo Jekely’s statement in Geneva on Friday that Dr. Tildy had offered to resign that morning. Reuter’s correspondent in Budapest says that M. Gyula Salata, a brother of M. Kalman Salata, one of the principal accused, who fled from Hungary, said he had heard from his brother that M. Nagy wanted to build up relations with Britain and the United States. Points of Ex-Premier’s Policy The White Paper quotes M. Ferenc Kapocs as saying that M. Nagy’s policy was, first to win an absolute election victory for the Smallholders’ Party; secondly, to make a complete success of the treaty negotiations; thirdly, to secure ratification of the peace treaty and also, fourthly, to obtain the withdrawal of the Russian occupation forces. M. Kapocs added that the Smallholders’ Party intended to form a middle - class bloc with the leader of the Freedom Party, M. Deszo Sulyok, who was expelled from the Party, with M. Zoltan Pfeiffer, also expelled, with M Imre Kovacs, leading a group of 14 Peasant Party deputies and with certain Social Democrats and the Clerical Party. The White Paper quoted M. Kapocs as saying that M. Pfeiffer was to form a new party which should invite attack from the Left and thus gain support from the main body of Smallholders. M. Kapocs further claimed, according to the White Paper, that M. Nagy tried to make Hungary a political and economic base for the United States in southeastern Europe. The American representative in Hungary until June, Mr. Arthur Schoenfeld, had approved of M. Nagy’s policy and tactics and declared that the United States would aid Hungary by loans and relief. Alleged Use For Espionage

M. Kapocs is also alleged to have said that when M. Bela Kovocs was arrested M. Nagy was informed at a dinner given by the director of UNRRA. M. Nagy was extremely glad when he learned that the United States had sent a note to Moscow in connection with the arrest of M. Kovacs. The Sunday Times correspondent in Budapest says the White Paper alleges that Britain had used a group of socalled conspirators for espionage. M. Miklos Jarmay, a police officer and a former bodyguard of Bela Kovacs, allegedly said: “I worked for two British officers, supplied them with documents and details concerning the police organisation in Budapest, and told them of the political allegiance of various police officers.” The Associated Press correspondent says the White Paper charges M. Ferenc Nagy with trying to obtain information from the Russian Legation in Budapest through a woman named Livivperlaky, who was given the task of finding out things from M. Grigoriev, a Russian Legation counsellor. She was not successful.