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Hungary - Relations with U.S. (Notes)

U.S.-HUNGARIAN RELATIONS Relations between the United States and Hungary following World War II were affected by the Soviet armed forces occupation of Hungary. Full diplomatic relations were established at the legation level on October 12, 1945, before the signing of the Hungarian peace treaty on February 10, 1947. After the communist takeover in 1947-48, relations with Hungary became increasingly strained by the nationalization of U.S.-owned property, unacceptable treatment of U.S. citizens and personnel, and restrictions on the operations of the American legation. Though relations deteriorated further after the suppression of the Hungarian national uprising in 1956, an exchange of ambassadors in 1966 inaugurated an era of improving relations. In 1972, a consular convention was concluded to provide consular protection to U.S. citizens in Hungary. In 1973, a bilateral agreement was reached under which Hungary settled the nationalization claims of American citizens. In January 1978, the United States returned to the people of Hungary the historic Crown of Saint Stephen, which had been safeguarded by the United States since the end of World War II. Symbolically and actually, this event marked the beginning of excellent relations between the two countries. A 1978 bilateral trade agreement included extension of most-favored-nation status to Hungary. Cultural and scientific exchanges were expanded. As Hungary began to pull away from the Soviet orbit, the United States offered assistance and expertise to help establish a constitution, a democratic political system, and a plan for a free market economy. Between 1989 and 1993, the Support for East European Democracy (SEED) Act provided more than $136 million for economic restructuring and private sector development. The Hungarian-American Enterprise Fund has offered loans, equity capital, and technical assistance to promote private-sector development. The U.S. Government has provided expert and financial assistance for the development of modern and Western institutions in many policy areas, including national security, law enforcement, free media, environmental regulations, education, and health care. Direct investment in Hungary by American companies is rising rapidly. When Hungary acceded to NATO in April 1999, it became a formal ally of the United States. This move has been consistently supported by the 1.5 million-strong Hungarian-American community. Principal U.S. Embassy Officials Ambassador--April H. Foley  Deputy Chief of Mission--Jeffrey D. Levine Political/Economic Counselor--Eric V. Gaudiosi Commercial Officer--Patricia Gonzalez Public Affairs Officer--Michael J. Hurley Environment/Science/Technology Attaché--Samuel Kotis Management Counselor--Thomas M. Young Consul--Thomas M. Ramsey Defense Attaché--Col. Kevin McGrath USAID Director--Ray Kirkland The U.S. Embassy in Hungary is located at Szabadsag Ter 12, Budapest 1054 (tel. (36) 1-475-4400).