Horthy Declares Armistice
Working through his trustworthy General Béla Miklós, who was in contact with Soviet forces in eastern Hungary, Horthy attempted to negotiate the end of the war, seeking to surrender to the Soviets while preserving the government's autonomy. Although Horthy was an intractable anti-Communist, his dealings with the Nazis led him to conclude the Soviets were the lesser evil. The Soviets willingly promised that Hungary would remain autonomous and sovereign.
Horthy governed from Castle Hill in central Budapest, an ancient and now well-guarded fortress. He blamed the German government for "forcing" Hungary into war, and during a meeting of the Crown Council declared that:
Today it is obvious to any sober-minded person that the German Reich has lost the war. All governments responsible for the destiny of their countries must draw the appropriate conclusions from this fact, for as a great German statesman, Bismarck, once said, "No nation ought to sacrifice itself on the altar of an alliance." … I decided to safeguard Hungary’s honour even against her former ally, although this ally, instead of supplying the promised military help, meant finally to rob the Hungarian nation of its greatest treasure, its freedom and independence. I informed a representative of the German Reich that we were about to conclude a military armistice with our former enemies and to cease all hostilities against them.
At 2:00 p.m. on 15 October 1944, Horthy announced in a national radio broadcast that Hungary had signed an armistice with the Soviets. However, the Germans had been aware of Horthy's behind-the-scenes maneuvering and had already set in motion plans to replace his government with forces loyal to the German cause, effectively occupying Hungary. With Nazi help, the Arrow Cross Party seized the radio station shortly after Horthy signed off. A party member wrote a counter-proclamation and used the name of the Hungarian Army's Chief of the General Staff, General Vörös. The commanding officer and his assistant of the two remaining Hungarian army units in Budapest were arrested or disappeared, and their soldiers fell in line with the Arrow-Cross party.
Read more about this topic: Operation Panzerfaust
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