The End of the War 959

Karl Liebknecht addresses his supporters in January 1919, shortly before his assas­

sination. (Right) Leaders of the Hungarian Communist movement, including Bela

Kun, on the right, after they were overthrown.

power, and tried to impose a Soviet regime by means of a “Red terror.” He
announced a more extensive land-reform policy, established collective farms
and labor camps, and nationalized banks, insurance companies, and large
industries. Inflation and food rationing soared and the Hungarian currency
lost 90 percent of its value. In July 1919, Kun attacked Romania, with the
goal of retaking territory with a large Hungarian population. His forces also
invaded Slovakia and proclaimed a brief Soviet republic there.
The Romanian army drove Kun’s forces back, invading Hungary and march­
ing to Budapest to help overthrow him. Admiral Miklos Horthy (1868-1957),
a former Habsburg naval officer (with not much to do, as Hungary would lose
its access to the sea), seized power in 1920, with the title of regent and head of
state. He encouraged attacks against Jews—Kun was Jewish as was the head
of his secret police—claiming that they were Bolsheviks, and he ordered the
execution of thousands of workers and Communists. Backed by the Hungar­
ian upper classes, he declared his determination to see Hungary maintain its
previous borders.

The Treaty of Versailles

In this volatile atmosphere, delegates from twenty-seven nations and the

four British Dominions (Canada, South Africa, Australia, and New Zealand)