On June 2, 1949, the Hungarian Charge d'Affaires in London enquired if the Canadian government would agree to the setting up of a Hungarian Consulate in Toronto. In February 1948, we had stated that if the Hungarian Government wished to open a consulate general in Ottawa we would extend the usual facilities, but we would not be prepared to reciprocate.

2. The Polish Legation here in a note of March 30, expressed the wish to establish a consulate in Toronto (to be responsible for the Provinces of Ontario and Newfoundland (sic) to take the place of the Consular Division of the Polish Legation in Ottawa.

3. In considering what replies should be given to these two requests, we consulted the State Department and the Foreign Office and also asked the R,C.M.P. for a report on the activities of Communist missions in Canada. We learned from the United Kingdom Foreign Office that it would normally accede to such requests. The State Department, on the other hand, told us that their policy normally was not to permit the establishment of new consular posts in the United States by the Soviet Union or any satellite government. The Commissioner of the R.C.M.P. informed us in a letter of June 29, a copy of which I attachfi, that Communist missions in Canada are actively engaged in spreading propaganda, particularly among foreign language groups, and that Toronto is the best location for this type of work.

4. I decided that we should refuse the requests of Hungary and Poland to open consulates in Toronto. In view of our earlier agreement, however, I felt we should allow Hungary to open a consulate in Ottawa.¹⁰ I attach for your information despatches No. 1636† and No. 1637† to London and Note No. 341 to the Polish Minister in Ottawa, dated July 28, relating to these decisions.

5. We have been examining, concurrently with the Hungarian request for consular representation in Canada, a proposal submitted by the Hungarian Legation in London to the Canadian High Commissioner to extend the jurisdiction of their commercial attache to commercial matters in Canada. Canada House is being asked to inform the Hungarian authorities that they might if they wish, assign commercial representation to their consulate in Canada.

A.D.P. H[EENEY]

¹⁰Note muginale:/Marginal note:
Minister[:] stall on Hungary Aug 1 A H[eeney]