VIA: AIR Dispatch No. F411A -19

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OFFICIAL DISPATCH

çRFl CATION

Date: 7 November 1947

Subject: General:.

Specific: Projected Establishment in Madrid of an"Eastern European anti-Communist Center"

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1. Attached hereto is a copy of two enclosures to a despatchforwarded by the Embassy to the Department.

2. The information in the attachment is a resume' of a recentinformal and unofficial conversation between an officer of the 1mb:wayand two former diplomats of Hungary and Poland regarding the establish-

ment in Madrid of an anti-Communist "Center".

3. Enclosure No. 1 concerns the conversation mentioned above.

Enclosure No. 2 reports the information known to the Embassyregarding Mr. SZUMLAKOWSKI and Mr. VAJTA.

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FOR COORDINATION WITH 6"64 1°-

Encloshra No.lto Despatch

UUNFIU4NT1AL

November 3, 1947

To: mr. Paul T. Culbertson, Charge' d'Affaires a.d.

From: Mr. Richard U. Wilford

SUB./WTI informal and Unofficial Conversation with former Easternturopean diplomats concerning the projected establishmentin kadrid of an "Eastern European anti—Communist Center".

On Saturday afternoon, November 1, 1947, I was informed by Mr. MarjanSZUMLAKOWSKI, former Polish Minister of the London Government in Madrid, andMr. Ferenc VAJTA, former Hungarian Consul General in Vienna and a journalistand author in his country, of their plans to form, together with other EasternEuropeans an antiwCommuniat "Center" in Madrid. This organization wouldgather information concerning Soviet agents of Lastern buropean nationalitywho were, they stated, infiltrating into Spain either to remain here or toproceed to countries of the aestern hemisphere, including the United States.

Lr. VAJTA opened the conversation by alluding to his recent trip fromItaly to Spain, in which trip he was aided by American Military AuthoritiesIn Leghorn. He stated that he had been followed by agents of the Sovietintelligence Service in how and felt that Spain woulu afford his projectedgroup more fertile ground for development. In his opinion Italy and France,despite recent electoral gains by moderate and rightist parties, would soonfall into the control of the Communists, and Spain would be the last safeground in heats= Lurope in which the kind of anti-Communist "Center" he hadin mind would be able to be eatablished.

From his experiences in Hungary, Austria and in Italy (some points ofmatch are recorded in a biographical mammary attached), he had been able todiscover that Spain was at present acting as a "corridor" or passageway forthe travel of Soviet agents, disguised by false documentation aad "new"nationalities, to countries of the estern Hemisphere. He stated that Stockholm,Hamburg (British Zone of occupation), Munich (American Zone of occupation),Vienna (Russian Sector) and Milan were despatching centers for such agenttraffic. Russian agents sent from Stockholm usually arrived in Spain by wayof the Swedish Air Line serving Barcelona, while agents from Germany wereclandestine border-crossing cases or, if legal entries, arrived with CombinedTravel Board (Berlin) Travel Documents as stateless persons. Milan was themost important center in Southern Zurope for despatching agents to the IberianPeninsula. Agents coming from the Russian Sector of Vienna usually traveledwith documents as Austrians or "stateless" persons.

Mr. SZURLAKOhSKI interrupted at this point to state that he believed itmost important for American officials in Spain to institute some form of"travel control", or at least an "information service" which would afford ameans of knowing the names and nationalities of all air and sea arrivals atthe port of Barcelona. He added that both he and Mr. VAJTA knew severalLastern European nationals now working for the Soviet Intelligence Servicewho had managed to arrive in Spain as members of the Pax Romans CatholicDelegation, or as busineaamen, and that tnese persons were established inMadrid and other cities of Spain carrying on espionage work,

(The names which he submitted, and all the others anich will be mentionedin this report, are being checked in toe ambassy file:, and in those of theattached agencies, and a separate report on them will be prepared in the nearfuture.)

kr. VAJTA

a.

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Mr. VAJTA tnen outlined what he considered would be the duties andusefulness of the projected hastern Ruropean Center in Madrid, which he,Mr. SZILIAKOWSKI and other anti-.Communist Poles, Hungarians, Yugoslaysand Rumanians were attempting to establish.

First among these duties would be that of gathering in Madrid, fromBuenos Aires, Paris and Home, known personalities of their respectivecountries who had long experience in aastern huxopean and Russian affairsthrough diplomatic or military careers. tispecially mentioned in thisconnection was Ur. COMA, foraar archivist of the Hungarian counter-espionage service, and Colonel Loa, a former kolish Military Attache' withwide experience in Russian affairs, who is at present in Buenos Aires. Alsomentioned as a possibility was ColonelS1.ANTOIVformer Hungarian Military

A attache' in Madrid, although both men recalled that, at one time, the AlliedMissions in Madrid believed szAlmum to be pro...German. Several Yugoslayswere named as possible collaborators in the "Center".

Second, the importance of securing at least "unofficial blessing" fromtho Spanish Foreign Ministry was emphasized. This step is being delayeduntil the arrival of Monseigneur NYISZTOR, a hungarian prelate attached to theHoly See. The latter is expected in Madrid after the 15th of hovember, andwill "smooth the way" for acceptance of the group in Spanish officialdom.Already, according to Mr. VAJTA, unofficial but encouraging conversations havebeen held with Mr. LOJRNDIO, representing the Information Section of theSpanish Foreign Ministry.

Third, the group will supply the American Embassy with informationconcerning the identity and activities of Central and baetern bluropeannationals who are engaged in work for the Russian Intelligence Service inSpain, or who are in transit to countries in the Western Hemisphere. Mr.SZUMAKOWSKI stated that his long residence in Spain and his numerousacquaintances among Spaniards and Eastern European nationals, would servethe group with useful intelligence in that connection, and would second theefforts of Colonel KARA, who is expected to head the entire anti—Communisteffort.• Fourth, the "Center" would make studies of recent developments in the

countries represented by its members, analysing trends and personalities,economic, social and ethnic changes. These studies would be available toAmerican services. This feature of the work of the projected "Canter" is morein the discussion stage than the other features, apparently due to censorshipand printing difficulties, and would be conditioned upon Spanish acceptanceof the group as a whole.

The conversation than developed along other lines, which I have groupedunder their respective headings for purposes of clarity and historical sequence.

THb INTLRMAR1UM:

The Intermarium is an organization of aastern lairopean politcalfigares who were in exile in London during the war. It was organized in April1944 in London and embraced representatives of moat of the countries "betweenthe seas"; namely, the Baltic and Adriatic seat. In 1945, when the PolishArmy of General Anders became active in Italy, this group moved its head -quarters to Rome. Now, according to Mr. VAJTA and Mr. =MAKOWSKI, itsheadquarters is Paris. This move is due to the interest of the French GeneralStaff and 2eme Bureau and the British General Staff and British Intelligenceauthorities in maintaining contact with, and to an extent, control over, theorganization.

Mr. VAJTA alleged that the Intermarium was anti—American in itsmakeup and policies. He stated that he had gathered this impression from the

period

period imen no wan aungarian Consul General in Vienna and worked with theFrench General Staff and the 2eme Bureau on Hungarian emigree problems, headded that his subse,uent relations with nungarian and other Eastern Europeanpersonalities in the Intermarium in Rome of t-is year confirmed this belief.The British and French General Staffs, Mr. VAJTA remarked, are attempting to"shut the U.S. out" of Eastern European affairs. Likewise it was his beliefthat the entry of Monarchist elements representing Otto of Hapsburg into theranks of the Intermarium, gave it an antiamerican bent.

Many members of the Intermarium established relations withcertain British asonic Orders while the Intermarium was in its infancy inLondon, and Mr. VAJTA added that the French Masonic Order of the Grand Orientwas linked with Intermarium activity in some manner.

After British financial support was withdrawn from the Interamarium in June of 1947, many of its members, according to Mr. VAJTA, began toorganise the "Continental Union". This organization, with different clubs inLondon, Faris, Rome and New York, is, according to Mr. , VAJTA and Mr.SZUULAKOWSKI, more pro—American in its policy inasmuch as the members fearthat British and French penetration of the Intermariaue has compromised thatorganisation and will make it serve only thoee national interests. The"Continental Union" is now desirous of founding a branch in Madrid. Mir. VAJTAindicatcd that the difference between the Intermarium and the "ContinentalUnion" , politically speaking, was that of Monarchist tendencies in the formerand Republican tendencies in the latter. Among those participating in theRome discussions mentioned above were Mensigneur SIDDR, leader of novae groups,Mgr. Augustin JURETIC, vice-president of the Croatian group, His Excellencylonsigneur PAPE', Polish Akbassador to the Vatican, B. JANIKOWSKI, M. PONIATOWSKY,Poles, and other personalities from the Baltic Area. Mr. VAJTA stated thatwhen the British Intelligence Service in Italy became aware that Mr. EdwardPage, Jr. of the American Embassy in Rome, end Mr. Gowen, in the Office of thePolitical Adviser to the Supreme Commander of the Mediterranean Forces, werediscussing Eastern Enropean problems with the group, British financial supportwas resumed, which brought about a number of defections from the "ContinentalUnion". Baron APOR, in Rome, has adhered to the Intermariumy and efforts arebeing made to win over U. JURET1C. On the other hand, M. Mini. KREK, formerlya supporter of the Intermarium, has now joined the "Continental Union" and ispresently in 74ashington representing their interests.

Other Eastern European leaders who particLpated in the discussionsin Rome and who have remained with the Intermarium are: General PRCHALA,Croatian, JANIKOWSKI, Polish,PONTIATOWSKI, Polish, LOZORAITIS, Lithuanian,I/WPM, Estonian, PRIBICEVIC, Serbian, KRNIEVIC, Croatian, FOTITCH, Serbian,JANKOWSKI, Polish and MIS MISSUM, Hungarian.

Mr. VAJTA stated that Mr. Page, who is presently in Washingtonconsulting with the Department regarding this problem, had informed him priorto the lattere s departure, that it had been discovered that certain Sovietagents had penetrated the Intenearium. Mr. SZUMLAKOWSKI intervened at thispoint to state that, in his opinion, that factor, plus the Masonic hue of theIntermariumf e members, would prevent its recognition by the Spaniards.

However, Mr. VAJTA continued, the section of the Intermariumwhich is apparently unaware of Masonic or Soviet penetration, and which isMonarchistic in outlook, is sending two Priests to Madrid for the purposeof gaining Spanish recognition before the VAJTA group is able to secure thesame for the "Continental Union". These two Priests are Father SZALAX andFather Dkat, who have arrived today in Madrid from Berne. The Intennariumin Madrid is to be largely under French influence and will later be directedby a politician rather than a Priest. SZUMLAKOWSKI stated that a certain X.CULMANN, representing the French General Staff, visited Madrid in February,and that a M. KOLCZONAI is here at present and a guest in the home of SpanishForeign Minister MARTIN ARTAJO.

Mr. VAJTA

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Mr. VAJTA remarked that utto of hapsburg ordered two of hisfriends to enter the lntermarium representing the Hungarian Legitimists.They are M. STOUFAY STITZ and Uount TELEK1. Otto himself arrived in Lisbonyesterday to seek Portuguese hospitality in the event the Communists succeedin coming to power in France. Otto, according to VAJTA, is seeking Vaticanpardon for his liaison agent with Washington, Mr. VARGA, who had votedagainst the Catholic Church during his term in the Hungarian parliament.VARGA, who is at present in Washington, has the mission of winning overFerenc NAGY to the cause of Otto of Hapsburg. Between October 15 and October18, VARGA is reported to have had conferences with Otto and members of theFrench General Staff. These conferences were held at the home of the ReverendFather Imre GACSER, a friend of Otto and highly esteemed by the French GeneralStaff.

RECENT DEVE1OPM1IT8 IN THE INURMARIUM MEMBEWHIP

According to Messrs. SZUMLAKOWSKI and VAJTA, a defection from thepro-American group of VAJTMSZUMLAKOWSKI, MACET (in Washington) and KRIK (inWashington), has been that of Mr. MIS MISUR, a former Captain in the intelli-gence Service (Hungarian), who is now an active supporter of the Intermarimsin Rome.

To aid the Intermarium Club organized in Rome, M. STOMFAI STITZ,Marshall FARKAS and the Chief of the Pontifical Mission in Paris, will shortlymake a trip from Paris to Rome.

A Rumanian in British pay, it. JENESCO has arrived in Madrid tohelp M. Francois RAMS; (a Hungarian also in British pay), secure Spanishrecognition and thwart the VAJTA..SZUMLAKOWSKI group.

Mr. Roberto de SATORRIsS, of the Spanish Foreign Ministry, isreported by VAJTA as a long-time friend of the Intermarium due to his member-ship in an English Masonic Order.

COMMUNIST INFlaHaTION IN 3eAall DiscLosio BY VAJTA

Mr. SZUKLAKOWSKI, during the course of the conversation, alludedto Bayonne, France, as an important "field post" of the French section of theRussian Intelligence Service, and stated that agents are passed across theborder from that post. He mentioned San Sebastian and Barcelona as importantcenters for work of the Communist International and supplied the names of twobusinessmen (of German and of Belgian nationality) who were facilitating thework of Soviet services.

Mr. VAJTA supplied the names of ten Soviet agents at present inSpain, and one in Tangiers, and stated that the newest Soviet trick in develop-ing a commercial "cover" for espionage activities is to despatch agents fromthe Russian Zone of Austria with stolen patents with which they are enabled to •establish buudrunums, usually in the chemical line, and to support themselves.(These names are being assembled into a separate report to be transmitted in

the near future)

Both men again stressed the strategic importance of Spain withregard to Russian penetration of the Western Hemisphere. They added that itwas their belief that Madrid would soon become one of the last capitals ofWestern SUX01:4 not dominated by the Communists, and might one day find itselfhost to all the Eastern European exiles now in Paris and Rome. VAJTA statedthat Monseigneur NYISZTOR had written him from Rome several days previouslythat the Russian Secret Service had succeeded in kidnapping eight anti-CommunistHungarians from the center of Home, and that the situation was fast becomingnerikous for the others who remained.

GENERAL OBSERVATIONS BY MESSRS SEUMLAXCNSKI and FAJTA.

Before concluding the discussion, Ur. FAJTA alluded to theinterest of the French and British General Staffs in combatting pm—Americansentiment among the exiles of hastern European countries, and stated thatRichard CROSSVAN and General BETHOUARD (French General Staff) held &meetingat Innsbruck between August 22nd and 29th concerning that particular aspect.Mr. FAJTA stated that it was decided to "utilise the extraordinary situationof the United States" for the aims of French-British policy, to attack theMarshall Plan (by propaganda among the exiles) as "the road to huropeansuicide," and to regroup control over the Balkan exiles under the FrenchGeneral Staff in Paris. During one of these interviews in Innsbruck, M.BLANDINI6RE, one of the chiefs of the 2eme Bureau, stai,ed that the returnof LS GAULLE to power was a "matter of days" and that he would take over thecontrol of Balkan affairs himself. The French General Staff promised to putthe hastern Euroyean communists under strict surveillance and to close uptheir clubs, allowing the latter to pass into the hands of the non—communistemigrant—exile groups.

Mr. FAJTA added that he was extremely grateful to AmericanMilitary Authorities in Italy for their help in effecting his escape fromRussian agents in Leghorn and Rome. He stated that, if the United Statesbecame active in the question of Eastern European exiles, a great many of thelatter would desert the ranks of the Intermarius because they felt that boththe French and British governments were pursuing the gold game of "divide andrule", whereas the interest of the United States was closer to that of the"Continental Union" with its hope of a regional confederation of EasternEuropean countries.

Mr. FAJTA is contemplating a trip to the United States inDecember, at which time he will contact Hungarian exiles in an effort to turnthem from the Inter/Barium. After a stay of threskannthe, helntends to returnto Spain, as he stated that Europe would be the battlefield for some time toCOW.

Enclosure no. 2 to despatch

Memorandum Reporting the Information on file inthe cebasey concerning Mr. UarjAn SZUMLAKOWSKIand Mr. Ferenc TIAJTA.

,E•IL

Ferenc VAJTA:

Born in 1914, VAJTA is known as one of the younger Hungarianintellectuals. he studied at the Sorbonne and the University of Geneva,and is the author of two books dealing with the Hungarian ethnic question:'Origins of the Hungarian Race", written in French, and "Our Heredity" inHungarian. He represented Hungary in the League of Nations Assemblies.

The subject lived for two years in Italy, occupying, it isbelieved, a Consular position. He was expelled by the Mussolini governmentfor his anti-fascist sentiments, and in 1941 was sent to Berlin as head ofthe Hungarian Legation's Press and Information section. In 1941.42 heorganised a group of Balkan and Eastern European inte14.sctuals into anorganisation to combat German influence in tome areas. He headed a news-paper of siodlar tendency and was often the subject of strong attacks on thepart of the German press, especially the "Volkischer Beobachter" and the"Frankfurter Zeitung". In 1943, together with KALLAY, President of theHungarian Council, VAJTA founded another newspiFFredicated to championingthe rights of Eastern and Southeastern European countries to manage their ownaffairs. This was suppressed when the Germans formally occupied Hungary inMarch of 1944.

In August of 1944, the Hungarian Conservative Party nominatedVAJTA in the electoral contest against two Nazi Ministers. This election wasnever held, however, and VAJTA was sent to Vienna as a Consul General tosupervise the question of Hungarian migration. The Russians attacked himas a "Masi tool" and asked for his extradition eleven times, attem;ting toarrest him four times in various European cities, In August of 1945 heworked on Magyar problems with the French General Staff in Austria. Laterhe traveled to Italy. In September of 1947 VAJTA fled from Italy with the aidof U. U. S. Military authorities and arrived in Spain.

MarJan SZUMLAKONSKI:

Born in 1893, he attended the Universities of Left and Rome,specializing in the former, on nietorical studies. Between 1915 and 1918,Mr. SZUMLAKOWSKI was • journalist in Kiev, and in 1918 attended the preparatorysessions of the Peace Conference in Paris and London. In 1919 he was head ofthe Eastern Department in the Polish Foreign Office. Between 1926 and 1932the subject was a delegate to the League of Nations Council and Assembly,representing the Polish Foreign Minister, whose Chief of Cabinet he had becomein 1928,

Mr. SZUKLAKDIVSKI acted as Rapporteur at the Disarmament Conferencein 1932-1933. Other conferences in which he took part were: peace Conferencewith the Soviets at Riga in 1920 and with Lithuania in Copenhagen in 1925.He lerrirptorinted Minister Plenipotentiary to Spain and Portugal in 1933. Atthe teOmination:efethe war in 1945 he was considered for nomination by theAllied Governments in aadrid en the newly re-formed German Chamber of Commerce,and hol6s that position at present after formal acceptance by tha representativesof the three governments concerned.