The Waterbury Democrat., 1944-03-21
Plan May Be Stymied By PresenceOf Troops
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 but the clandestlne radio Atlantic reported that German troops firmly held all important railways, radio stations, telephone exchanges and government buildings.
 Hungarian quarters in Stockholm said Franz Basct, German minority leader in Hungary, formed a pro- Nazi government after former Premier Bella Imredy, leader of the radical rejuvenation party, had re- fused a German request to appoint a cabinet.
 The last official communication received at the Hungarian legation at Stockholm, Hungarian sources in the Swedish capital said, reported that Horthy, Kallay and GhycZy had been forced to go to Germany. All previously had been reported arrest ed by the Germans.
 Seized At LwOw
 Horthy was believed to have been seized while at Adolf Hitler'S head quarters, presumably at Lwow. An exchange telegraph dispatch from Zurich said 8 Hungarian diplomat in Berlin informed 8 colleague that Horthy arrived at the headquarters Saturday with Gen. Helyi Szum- bathy. chief of the Hungarian gen. eral staff;
 The two leaders conferred, the dispatch said, with Hitler, German Foreign Minister Joachim Won Rib- bentrop and Marshal Wilhelm Keitel, supreme commander of the German armed forces, who de- inanded:
 1. General mobilization of the Hungarian army under German su- pervision.
 2. Reorganization of the Hun garian army on the RumAnian pat tern with German liaison officers with each regiment.
 3. Hungarian railway and Danube river traffic be placed under q mixed general staff of Hungarian and German officers.
 4. Placing of Hungarian food re. serves in general pool for equal distribution Of all food supplies tc Axis. countries.
 6. Establishment of censorship and press control on the German pattern with Q ban on printing ol broadcasting news originating witt non-Axis agencies.
 Though Szumbathy was believed to head Q pro.G German clique ir Hungary, both he and Horthy re. fused the German demands, tho Zurich dispatch said.
 Hitler then gave the order fol occupation of Hungary, other sources said, and ordered Horthy and Szuin' bathy detained, possibly as hostages
 Indirect reports reaching thu United Press at Stockholm said Hit. Ter was stirred into action on tho Hungarian question by information indicating that Hungary was about to deliver a request for Q separate peace to the Allies, as well as bJ the need to bulwark Germany eastern defenses.
 Heavy Fighting
 Pro- Hungarian sources in Sweder reported heavy fighting occurred when tne Germans crossed into Hungary, while the London Daily Mail said Hungarian military auth critics early today broadcast a dra. matic message asserting that thC light must and will continue"
 Both these reports appeared in' spired by Hungarian sources, how. ever, iIi effort to win sympathy from the Allies, and all other signs indt- cate that such resistance aS wal offered was spasmodic and disorgan. ized.
 The London Daily Mall reported from Stockholm that Kallay was Ar. rested In 6 big roundup of political and military personalities ct Buda. pest.
 The dispatch said Kallay had re. jected German demands for tota mobilization of Hungary's manpow. CT, dispatch or occupation forces tC Jugoslavia, transfer of workers t Germany and increased exports oi food and raw materials to Ger. many.
 Other sources suggested that Hit. Ter summoned Horthy to his head quarters to insist on acceptance ot oermany's terms and then ordered occupation of Hungary when thu regent refused to accede. Germans Silent
 German sources remained silent oS the occupation move, but Q foreisr office spokesman told the Naziscon' trolled Scandinavian Telegraph Bu' reau that the world soon would learn fin which form intensified CO., operation betweenu Hungary ant Germany will appear"
 The spokesman said development along the eastern front had ileces' sltated mobilization of "all resouycel jointly constituting the Axis pow crs' war potential" German foreigr policy now Is more active than evel