THE SITUATION IN HUNGARY (INFORMATION AS OF 0200 EST)

Created: 10/31/1956

OCR scan of the original document, errors are possible

Reports from reliable eyewitnesses in Budapest indicate that as0 (Budapest time) onctober Soviet forcesithdrawing from the city, but apparently only to the outskirts. At noon Soviet tanks withdrew from the Kilian barracks, which were still occupied by armed nationalist Insurgents. Later in the day,0 hours, the Hungarian defense minister announced that agreement had been reached with the command of the Soviet forces in Budapest that all Soviet troops In the city wouldtheir withdrawal by dawn ofctober. The job oforder, according to the announcement, would be taken over simultaneously by certain units of the Hungarian army, the police, and the national guard.

On the other hand, the American armyin Budapest, referring to Shcpilov's statement ofctober that "no Soviet units have arrived in Hungary in the lastours, in fact lastbservedoviet column was seen arriving in Budapest0 hoursith obvious signsong trip. Numerous reports of reinforcements by large Soviet forces over the Czech-Hungarian border are not borne

Coincidental with these developments came the announcement of the formation of the Revolutionary Military Council of the Hungarian Army. This council stated it approved all the demands that had been made on the government by the workers' councils, that it had decided to disarm Immediately those secret police formations which still remained armed, and that it hadumber of high officers Including General Toth, armed forces chief of staff, and Generals Hazai, Hidvegl

Oct 56

Intelligence Bulletin

6

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Oat-:

and Szabo. Later announcements indicated that the council would be responsible for maintaining order In Budapest and throughout the count ry.

The announcement that the Soviet troop6 would be withdrawn from Budapest contrasts with the earlier Soviet statement that the insurgents in the city must lay down their arms prior to any Soviet evacuation of the city. Although Premier Nagy's attitude has been vacillating in regard to this question, he clearly implied onctober that the insurgent forces In control of the provinces should retain their arms. He added that he expected these forces to become part of the regime's newly organized national guard.

There are still no clear indications from any source whether and how soon Soviet troops may befrom Hungary. peech the afternoon ofctober, however, Nagy repeated an earlier statement that he wasthis question with the USSR. Moscow's announcement onctober that it is "ready to enter inton the question of Soviet troops in Hungary"that agreement may be reached soon concerning this matter.

The announcement by Nagy last night that "the Revolutionary Military Council shall operate until the new government to be formed through general and sefcret elections takes office" meets the other major demand of the insurgents. Along with the announcements concerning the withdrawal of Soviet troops from Budapest, it suggests that the Nagy regime is moving toward complete capitulation to the rebels.

Earlier in the day Nagy revealed that the one-party system In Hungary had been abolished andoalition government consisting of representatives from the Communist Party and from the other parties existing5 (presumably the Smallholders, National Peasant, Citizens' Democratic, Radical and Social Democratic) would be formed.

An appeal was issued simultaneously for the reorganization of these parties.

Later Budapest announcements stated that the Social Democratic, National Peasant, and Smallholders parties had re-formed in Budapest. If the Social Democrats should join the government it wouldlear indication that the Nagy regime has given in completely to rebel demands. So far, Nagy has been unable to gain Social Democraticin his government because of unwillingness to satisfy their demands.

Unity of purpose among the rebelhave no central authority and who remain only inwith one another--appears to be confined largelyquestion of Hungarian independence and the need forSoviet troop withdrawal from the entireactual fighting in the countryside apparently hassince the present moves of the Nagy regime maysome confusion among the rebel groups,is probably already under way betweenfactions, particularly between Communist andelements. The Communist insurgentstheir confidence in Nagy--inslsting, however, thatimplement his promises before they will activelybut non-Communist rebels probably remainboth Nagy and his

Oct 56

Intelligence Bulletin

8

OVIET DECLARATION ON RELATIONS WITH THE SATELLITES

Comment on:

The Soviet government's declaration ofctober on relations with the Satellites is an attempt toosition from which the USSR can begin to exert control over the too-rapid development of Satellite independence without compromising Us sell-initiatedprogram. The declaration attempts to cancel out the serious loss of prestige and leadership which the USSR has suffered, both within and outside the bloc, because of events in Hungary and Poland.

ey paragraph, the declarationthat Soviet units are stationed in Hungary and Rumania under the authority of the Warsaw pact, and carefully establishes that Soviet troops in Poland are there on the basis of thefour-power agreement as well. East Germany and the Soviet forces there are pointedly omitted from theacit reaffirmation of the Soviet position that withdrawal of any of these troops is dependent on withdrawal of Western forces from Germany,orces from Europe,hange in the orientation of West Germany.

While the declaration holds out thethe Satellites of greater internal independence inand withdrawal of Soviet advisers, it also placeson the Warsaw pactnifying systemprotect and maintain Communist control. In stating thatready to examine with other socialist countries" theof Soviet troops on their territory, the declarationthat this should take place only with the agreement ofconcerned as well as agreement between participantspact. In its specific references to the Hungarianstatement also implies that withdrawal of Soviet troopsto negotiations with "other participants of theas well as the local government.

ITO URGES HUNGARIANS TO SUPPORT NAGY

Tito,etter ofctober addressed to the Hungarian Communist Party, calls for the Hungarians to stop furtherHe says that the recent measures taken by the Hungarian leadership show

the policy of the Hungarian party and government and the "genuine socialist aspirations of the Hungarian working people have been merged into one."

Tito regrets the "wrong and harmful policy" pursued by the past Hungarian regime which produced the present crisis, but calls on the Hungarian workers to avoid "undermining the faith of workingmen in socialism and the essential development of socialist democracy."

The letter says the Yugoslav leadership does not wish to interfere in the internal affairs of Hungary, but outeeling of solidarity with the "progressiveaspirations" of the Hungarian people, appeals to the people to make every effort to end the struggle, "which could have unforeseeable consequences not only for Hungary but for the international labor movement."

remarks closely parallel the line

now being pushed by the Nagy regimeas wellolish statement to the Hungarians sent by Gomulka and Cyrankiewicz.

The Yugoslavs are apparently worriedontinuation of the present Hungarian rebellion lead toon-Communist government in Hungary or to Soviet imposi-

tiontalinist-type regime.

Oct 56

Intelligence Bulletin

13

ESTERN EUROPEAN COMMUNIST REACTION TO HUNGARIAN REVOLT

Comment on:

Communist reaction in major Western European countries to lhe Hungarian revolt ranges from rigid support of Moscow by the French to ananti-Soviet position in Italy. The American embassy in Paris reports that onctober the Frenchpress surpassed Itself in defending the Soviet Union and gloating over the "defeat" of the insurgents. The London Dally Worker, on the other hand, has walked alight rope in boththe "necessity" for the intervention of Soviet troops against the counterrevolutionaries and in speaking of the Hungarian workers' "just demands."

The official Italian Communist Party paperas abandoned its earlier support of the Soviet linecounterrevolutionaries for the violence. Onctober party leader Togliatti criticized Hungary for its failure toits Communism on an adequate national base and to make reforms quickly enough. The leadership of the Communist -dominated labor organization and the feUow-traveUngJ^aese^ have condemned Soviet intervention in Hungary.

Original document.

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