English Translation

- 8 - 21 Pengö is devalued to 8 rubles. Practically, however, also in the parts of the country not occupied by the Russians a large inflation is in progress. For example, the circulation of notes today amounts to 9 billion pengö compared to 330 million pengoe in 1938 and every 10 days a further about 4 500 million pendö are given out by the National Bank. According to news from the occupied territories, the former head of the first army, General Miklos, who has defected to the Russians, has formed a democratic government. If today Szalasi and his government are already accused of failure by the German side, then it must be noted that Szalesi has taken over the management under the most difficult internal and external conditions. It is clear that Szalasi and his people are Hungarian chauvinists, which was well known enough, and in the end, the failed line of German politics has left no other way out since mid-March than to call Szalazi to power to fikxem. In some places, Szalasi is referred to as a phantast, but it is more likely to be described as a stubborn dogmatist and as a theoretician due to its recent development and long-standing oposition. In the economic field, it should be noted that the Szalasi cabinet was forced on it by us as a coalition cabinet. Often one hears the objection that Szalazi has appointed "small people" as commissioners in the administration next to the ministers of the department, in the central administrative organizations and in the enterprises. This objection, however, can rightly be countered by the fact that the "great men" of the past failed not only completely, but also, in large part, as the neighbours of the Gentry Anglopkil and German hostile, and have undoubtedly proved themselves to be saboteurs of Hungary's war achievements in the past. The "smart objection" often belonged in particular to leading economists, to whom German authorities often agree,