Evening star., 1946-07-27
u. S.-Russian Dispute
Over Soviet
Demands on HUNGARY
Stote Department Protest
Points Up Problems
Facing Byrnes at Poris
BY the Associa'ed Press

A sharp conflict already is
shaping up for the Paris Peace
Conference between Secretary OF
State Byrnes and Russian For
eign Minister Molotov over Soviet
reparation demands on Hungary
The United Statesis insisting that
new economic deal in Hungary Is
essential to establishment of firm
peace in Europe. 1t has protested
strongly Red Army seizures of Hun
garlan toodstuffs and Soviet remov-
ais OF Hungarian factories as we'll a.
current industrial production, con-
tending the result is economic chaos
in the Balkan nation.
The protest, made public by the
State Department last night, high
lights the difficulties confronting
Mr.. Byrnes as he sets out today
for Paris and the 21-nation confer
ence, opening Monday, which will
write peace treaties for the former
enemy states of Hungary, Italy
Bulgaria. Romania and Finland.
Reviews Paris Projects.
Mr.. Byrnes briefly reviewed some
of his Paris projects at news con-
ference. He said that he planned
on Monday to confer with the
three American members of a joint
Anglo-American Committee on Pal
estine. The aim is to Ak American
policy on the committees proposal
for partitioning Palestine between
Jews and Arabs in connection with
the plan for immigration of 100 ,0OO
Jews.
1t was learned from Informed
persons that the British are ready
to accept the principle of the i'm
mediate immigration of 100000 Jews
as urged by Mr.. Truman, but fee
the project cannot be carried ou,
until after further conferences with
Jewish and Arab leaders.
On another aspect of his Paris
mission, Mr.. Byrnes said that he
expected American troops to be
withdrawn from Italy within 81
days after the Italian peace treaty
is signed.
Secretary Byrnes also said that
at the Paris Conference both mi
nority and majority views can be
fully presented. He explained this
is because procedures are proposed
which would prevent any majority
in a committee from overriding mi.
nority opinion and preventing it.
presentation to the full conference
May Clash Over Danube.
On most major issues, he made
clear, the United States is alread,
committed to act with the Other
great powers-Russia, Britain anc
Francois a result of compromise
agreements made in the recent For.
elgn Minister Conferences. How.
ever, on issues on which no fina
commitment has been made tn,
United States will have the right tt
fight for its own solution. This ma,
mean conflict with Russia on severa
points of Balkans policy. particu
larly such matters as free navigation
of the Danube.
In the case of Hungary, the treat,
worked out by the foreign minister
provides for reparations payment!
of $500, 900, 900 to Czechoslovakia, bu
the United States has specifically
reserved the right to demand a re.
vision of this section. Last night
disclosures of the protest to Russia
made it appear certain that such s
demand would be made.
The State Department released
the text of a letter delivered b,
Ambassador Walter Bedell Smith Il
Mr.. Molotov last Tuesday. This re.
vealed that over many months tn,
United States had been trying t,
fget Russia to join with this Gov,
ernment and Britain in helping tn,
Hungarian government achieve eco
(See HUNGARY, Page A-10.)