Operation Panzerfaust
Working through his trustworthy General Béla Miklós who was in contact with Soviet forces in eastern Hungary, Regent Horthy attempted to negotiate the end of the war, seeking to surrender to the Soviets while preserving the government's autonomy. The Soviets willingly promised this. But the Germans were aware of Horthy's behind-the-scenes maneuvering and set in place Operation Panzerfaust which would remove him from power and replace his government with forces loyal to the German cause, effectively occupying Hungary. Horthy governed from Castle Hill in central Budapest, an ancient and now well-guarded fortress. At 2:00 p.m. on October 15, 1944, Horthy announced over the radio that Hungary had signed an armistice with the Soviet Union. "It is clear today that Germany has lost the war... Hungary has accordingly concluded a preliminary armistice with Russia, and will cease all hostilities against her."