Diplomatic Hostility and the Suspension of Jewish Emigration

The summer of 1957 marked a hardening of the Kádár regime's stance toward Israel, shifting from managed migration to open diplomatic friction. This escalation culminated in June 1957, when the Hungarian government declared Israeli commercial attaché Paul Korem persona non grata, ordering his expulsion within 72 hours. The leadership of the Hungarian Socialist Workers' Party (MSZMP) orchestrated this crisis by alleging the Israeli Legation had severely damaged the national economy by illegally accepting currency and jewellery from emigrants. Consequently, the regime demanded $3.5 million in compensation and halted all emigration until this "debt" was settled.