From Budapest: Portrait of a City Between East and West, by Victor Sebestyen (Knopf Doubleday, 2023), Kindle pp. 272-273:
Horthy introduced anti-Jewish laws in Hungary while Hitler was still speaking to tiny groups of disaffected Germans in Munich beer halls. The first legislation specifically to target Hungarian Jews for discrimination was passed on 22 September 1920, barely six months after the admiral was elected regent. It was the Numerus Clausus Act, which restricted the number of Jews admitted to universities to 7 per cent of the total population, effectively ending the legal equality for Hungarian Jews that had been established under the Ausgleich in 1867. This had a profound effect in Budapest, where more than a quarter of the inhabitants at the end of the First World War were Jews – and on the universities. Many young people who could afford to leave went to study abroad, never to return. So did some of the ablest professors – a drain of talent that was never replaced. Horthy was not interested when a few academics, even among his own supporters, objected. ‘Concerning the Jewish question, for all my life, I have been an anti-Semite,’ he wrote to a friend, the future Prime Minister Pál Teleki. ‘I have never made any contact with Jews. I have found it intolerable that here, in Hungary, every single factory, bank, asset, shop, theatre, newspaper, trade, etc., is in Jewish hands.’
The passage of the law was accompanied by a wave of pogroms throughout Hungary. In Budapest a dozen Jews were killed and more than 150 injured during a vicious riot by the far-Right Turul organization, led by the highly ambitious ultra-nationalist politician Gyula Gömbös, who a decade later would become Prime Minister.
In 1925 the League of Nations threatened to impose sanctions and other retaliatory measures against Hungary unless it removed anti-Semitic legislation. Budapest’s Jews begged them not to. The National Jewish Congress of Hungary asked the League not to interfere, for fear of a further backlash against Jews.
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