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Show Dictator Resigns Post and Flees to Vienna; Socialist Regime Replaces Re-places Red Control. Will Undertake to Make Peace at Once With the Allies ; Downfall Cause for Rejoicing. COPENHAGEN, Aug. 2. The strictest martial law is being enforced en-forced iu Budapest by the war minister in the new government, Joseph Haubrich, advices from the Hungarian capital today state. The city is reported quiet. A purely Socialistic government has been formed under the leadership of Herr Peidll. The new government has issued a manifesto, the advices add, declaring that its chief task will he to preserve internal order and enter into negotiations with the entente. VIENNA, Aug. 2. (By tho Associated Asso-ciated Press.) Overtures for peace with the allies have been made by the new Socialist government of Hungary, which has been set up in succession to the Bcla Knn regime. Bela Kun. has resigned his virtual dictatorship, and has been furnished a safe conduct by the allies, and is expected ex-pected to seek refuge here, as it is felt that his life would be endangered if he remained in Budapest. The peace overtures were made by Jacob Weltncr, president of the soldiers sol-diers and workers' soviet of Hungary. Arriving in Yicnna from Budapest, Herr Weltner asked Colonel Cunningham, Cunning-ham, the leading representative of the allies nt Vienna, and the ol her allied officials hero to recognize flic new government gov-ernment and to tre.iL for peace. The new Hungarian cabinet is presided pre-sided over by Herr Peidll, who was formerly minister of the people's welfare wel-fare in the Count Karolyi cabinet. The cabinet contains provisionally many members of the former Bcla Kun ministry. min-istry. COMPOSITION OF NEW GOVERNMENT. Tho new cabinet is made up a? fol-laws: fol-laws: Premier Jules Peidll. Minister of foreign affairs Peter Agoston . Minister of war Joseph llauhrich. (Continued on Page 4. Column 5.) m Wl IS DUSTED FBOiVg GOVERNMENT (Continued From Page One.) Minister of justiee Paul Garami. Minister of welfare Alexander Gar-bai. Gar-bai. Minister of commerce M. Dovohak. Minister of education Stephan B2abo. Minister of home affaiiB Karl Payer. Minister of agriculture Joseph Ta-kaos. Ta-kaos. t Minister of finance Joseph Miskics. Minister of food M. Knittelhof er. Premier Peidll is said to be a courageous coura-geous man of simple habits. He has been a tj-pographer, an editor and a model worker. Minister of War Haubrich formerly was chief of police at Budapest, and is reputed to be an anti-communist. Minister of Justice Garami and Minister Min-ister of Education bzabo were in the Karolyi cabinet. Persons in touch with the situation at Budapest said it was their understanding understand-ing that the members of the Kun ministry min-istry holding over under the reconstruction reconstruc-tion were doing so in order to save themselves and their supporters, and they probably would not remain in office of-fice long. DICTATOR RESIGNS GRIP ON AFFAIRS. On receipt of news from the front that created consternation in Budapest, Kun, at a. meeting of the soviet Socialists, Social-ists, became pale of face, and with his back to the wall, declared: "Very well. If you demand it, I must resign. I made the best fight I could. ' ' Captain Thomas C. Gregory, the United States food administrator ill this region, is credited with a large share in the hastening of Bela Kun 's retirement. retire-ment. Captain Gregory arranged tonight to-night for food relief for Budapest. He is bringing up supplies from the Banat region and also sending them down the Danube from Austria. ' The crisis at Budapest was due to the combined effect of the allied note issued is-sued at Paris last Sunday, warning the Hungarians they must set up a truly representative government and the successful suc-cessful advance of the Rumanian army. The soviet military forces were said to have been reduced to 40,000 unwilling unwill-ing soldiers, who lacked ammunition, and who were harassed by the guerilla warfare of peasants. This force was thoroughly defeated today. The Hungarians Hun-garians were said to have surrendered or fled when a Rumanian division crossed the Theiss river. The Rumanians crossed the river Theiss at Tisza-Fured. They also tooR Szolnok, cutting the Budapest railway. ENEMY CLOSE TO HUNGARIAN CAPITAL. Stragglers from the soviet armv brought the news of the Rumanian advance. ad-vance. They said the enemv forces were only twenty-five miles from the capital. Hungarian refugees here held a celebration cele-bration tonight over the downfall of communism. Officials here said the reconstruction re-construction of the Hungarian government govern-ment was expected to improve the situation sit-uation in Austria, lessening the danger of disorders. Budapest was orderly during the night. Picked troops patrolled the town. The troops now at the front were informed that they may retire as it is stated in Budapest that Rumanian forces along the Theiss river had received re-ceived order from the peace conference at Paris not to advance further toward Budapest. When the new government was proclaimed pro-claimed last night and the coming of peace was announced there was a celebration, cele-bration, but the people responded to the appeal for order. Early today thousands of Hungarians who fled from their homes during the reign of the soviet government began returning to Budapest, seeking to regain re-gain posssession of any remnants of their property that may remain. All that now is left of the soviet is the soldiers and laborers' council. Former San Franciscan. SAX FRAXCISCO, Aug. 2. Captain Thomas C. Gregory. U. S. A., of San Francisco, United States food administrator adminis-trator in the Vienna region, who os said to have taken a prominent parr i". the overthrowing of Beia K;in, dicto'or. was formerly an attorney here. He ioined the ' GrizThes," a distinctiveiv California regiment. hut remained abroad as a member of the staff of Herbert C. Hoover. In a letter revived frnm CnpT.Tju Gregory hv a S;)n IVanr-isco friend recently, re-cently, he C.':M : "Am sitting on the lid in Vienn.-i ris heavily as possi'hi-'. in order to kep tin1 Bolshevists frnm l.lnwin ii oif, but unless un-less the entente k''i;s busy within Ihf next couple of "eks and administer1; to Bela Kun thn short but sift kit-1: which we have h' n urging for the H y three months, it is entirelv possible ti,n( ti,; ,.,.',... .;it .-i. . |