THETHE U.S. State Department has reports that the United Stales and Hungary were on the point of re-establishing full diplomatic relations,
A spokesman said that a report from Vienna stating that this would take place within a short time was entirely without foundation.
The United States withdrew its Minister from Hungary after Russia suppressed the Hungarian revolt in 1956. Since then the Legation has been headed by a lower-ranking official.
U.S. officials say discussions are continuing in Budapest on the Hungarian Government's desire for normalising relations, but that a number of problems remain to he resolved. including the case of Cardinal Mindszenty.
The Hungarian Government is understood to be willing to let the Cardinal leave the country but he is believed to be insisting that he he free to resume his religious role within Hungary.