RFE/RL DAILY REPORT
		NO. 221, 22 NOVEMBER 1994


MINORITIES IN SLOVAKIA. Representatives of the Council of Europe's
Political Affairs Committee on 21 November ended a two-day visit to
Slovakia. Meeting with Slovak parliament chairman Ivan Gasparovic,
Tarja Halonen said all recommendations made by the CE when Slovakia
joined the group have been fulfilled and in some ways exceeded. A
final report on Slovakia is expected to be completed in the near
future. Members of the Hungarian coalition presented Halonen with a
memorandum stating serious objections to the wording of laws on
names and road signs and claiming that recommendations on a
solution to Slovakia's territorial division have not yet been
considered. Lubomir Fogas, member of the Party of the Democratic
Left and deputy chairman of the CE Parliamentary Assembly,
expressed surprise at the report. Halonen said she considers the
question of the administrative arrangement to be an internal
matter. Also on 21 November, Christian Democratic Movement Chairman
Jan Carnogursky met with a team of experts from the CSCE to discuss
minority issues. Proposals for schools teaching some subjects in
Hungarian and some in Slovak have been strongly criticized by
ethnic Hungarian politicians, but Carnogursky argued that the
Slovak minority in Hungary has only bilingual schools. Sharon
Fisher, RFE/RL, Inc.

HUNGARIAN PARLIAMENT BEGINS DISCUSSING 1995 STATE BUDGET. Hungarian
Finance Minister Laszlo Bekesi on 21 November submitted the 1995
state budget to the parliament, MTI reports. Deputies voted to
limit discussion of the budget to 30 hours, with the ruling and
opposition parties each having 15 hours to express their opinions.
The speaker of the house suspended the discussion in the afternoon,
partly because a third of the cabinet members failed to show up
(according to parliamentary rules, all cabinet members should be
present). The state budget plans to increase government spending by
26.5 percent. The budget deficit (excluding debt repayment) is
expected to reach some 282 billion forint or 5.5 percent of GDP.
Bekesi warned that these figures can be achieved only if
privatization proceeds as expected and the state budget is cut
back. Judith Pataki, RFE/RL, Inc.

ROMANIAN FOREIGN MINISTER DISCUSSES WEU AND HUNGARY. . . Teodor
Melescanu said in an interview with RFE/RL on 21 November that his
country's assistance in enforcing the UN embargo against rump
Yugoslavia has given it "privileged ties" with the Western European
Union. He said cooperation with the WEU is allowing Bucharest to
become part of European defense structures without arousing
Russia's suspicions. Melescanu also reported progress in the
negotiations on a political treaty with Hungary. He said during
discussions the previous week in Bucharest, Hungary for the first
time proposed recognizing the inviolability of existing borders
between the two countries. Melescanu said he agrees with Defense
Minister Gheorghe Tinca, who recently commented that Romania and
Hungary must gain NATO membership at the same time. Michael Shafir,
RFE/RL, Inc.

[As of 1200 CET]

(Compiled by Penny Morvant and Jan Cleave)
Copyright 1994, RFE/RL, Inc. All rights reserved.

*****************************************************************
A tovabbterjesztest a New York-i szekhelyu Magyar Emberi Jogok
Alapitvany tamogatja.

           [*]   [*]  [*]   [*]  [*][*]    [*][*][*]
           [*]   [*]  [*]   [*]  [*]  [*]  [*]
           [*][*][*]  [*][*][*]  [*][*]    [*][*] 
           [*]   [*]  [*]   [*]  [*]  [*]  [*]    
           [*]   [*]  [*]   [*]  [*]   [*] [*]

Reposting is supported by Hungarian Human Rights Foundation News
and Information Service.
*****************************************************************



*********************************************************** 
Sajnos a Kulugyminiszterium a hirkozlemenyeket nem naponta, 
hanem nagyobb idokozonkent, nagyobb mennyisegbe tovabbitja. 
Igy elnezest kerek a rendszertelen es az oriasi terje-
delmu tovabbterjesztesert, ami valojaban nem az en hibam. 

A 26 kozlemenybol allo anyagot, egy-egy hetre feldaraboltam. 
Ket tovabbi reszt a holnapi Mozaikba hagytam.

Buchwald Amy
***********************************************************



N E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs      Telephone:36(1)156-8000
Press Department                Telefax: 36(1) 156-3801
506/1994.                    Budapest, October 07, 1994

Budapest Preparing for CSCE Review Conference and Summit


     Budapest, October 6 (MTI) - BUDAPEST is to host the
review conference and summit meeting of the Conference
on Security and Cooperation in Europe (CSCE) from
October 10 to December 6.

     Foreign Ministry department head Istvan Gyarmati,
in charge of CSCE affairs, gave on interview to the
national daily ""Nepszabadsag", which was carried in its
Thursday issue and follows below:

     "The so-called review stage will be held first,
when the member states are to examine the topics of
respect for, and full realization of, human rights. The
second stage, which will begin near the middle of
November, will deal with the wording of the statements
and draft in order to prepare the planned final
documents for the summit meeting of heads of state and
governments, scheduled for December 5-6.

     "All 52 member states will be represented at the
conference (the CSCE includes not only European
countries, but also the United States and Canada). Eight
major organizations have also been invited, including
the European Union, the Council of Europe, the United
Nations, NATO and the Western European Union.

     "One of the main tasks of the Budapest meeting will
be to make participants conscious of the fact that apart
from an existing common political purpose, the CSCE
offers the most effective forum for conflict
resolution," Gyarmati said.

     He added that the Hungarian side would welcome the
approval of the German-Dutch proposal that aims at
enlarging the authority of the CSCE.. (Under the
proposal's terms, the CSCE could begin work in
mediation, conflict-prevention or alleviation of
tensions prior to involvement of the U.N., or, in cases
of necessity, it could turn to the U.N. Security Council
without prior consent of the member states concerned.)

     Gyarmati also detailed the Hungarian proposal which
would set up the post of stability and security affairs
advisor. This post could be filled by an internationally
recognized politician, he added.

OPIC Delegation Concludes Successful Visit to Hungary


     Budapest, October 6 (MTI) - THE delegation of the
Overseas Private Investment Corporation (OPIC) has
concluded a successful three-day visit to Hungary,
delegation leader Christopher Finn said at a press
conference on Thursday.

     Finn announced that OPIC would provide an
assistance of USD 75 million to two Hungarian
telecommunications programmes.

     The Monor Telephone Company Rt is to receive USD 30
million, and US West will receive USD 45 million, for
the creation of two separate telephone and cable
television systems.

     US West, in cooperation with MATAV, the Hungarian
telecommunications company, is implementing a mobile
telephone system which will cover the entire country.
This new system offers an accessible alternative in
Hungary, where the average waiting time for a telephone
is still several years.

     Three small American telephone companies - the
Denver and Ephrata Telephone and Telegraph Company of
Pennsylvania, the Consolidated Companies of Nebraska and
the Huntel Systems Inc., which belong to United
International Holdings, Inc. of Colorado - are
participating in the privatization of the telephone
network, which is being supervised by the Monor
Telephone Company Rt and the local governments.

     Upon completion of the project, 82,00 households
will be linked to the system in the vicinity of Monor
(south of Budapest).

     The experts of the nearly 30 American companies who
were part of the OPIC delegation also expressed interest
in the Hungarian investment opportunities in natural gas
and oil mining, electricity generation, and the chemical
and pharmaceutical industries.


Local Elections Set for December 11


     Budapest, October 6 (MTI) - HUNGARIAN President
Arpad Goncz has set local elections for Sunday, December
11, The elections will be based on the new local
government law package, which states that they be held
in a single round.

     Voting will be valid irrespective of voter turnout,
since the previous validity threshold has been
eliminated by the recent amendment of the law.
Candidates for mayoral positions and local
representatives will be as good as elected on the basis
of a simple majority of votes.

     All mayors, including the chief mayor of Budapest,
and members of the county general assembly will be
elected directly, with their mandates in effect for four
years.

     Votes that are cast for persons not winning the
elections will be utilized on a compensation list,
whereby the losing parties can fill 40 per cent of seats
in the respective body of representation on the basis of
this list.


Hungary Applies for EU Loan - PM Horn Sends Letter to
Delors


     Budapest, October 6 (MTI) - HUNGARY has applied for
a package of European Union loans to finance an economic
restructuring scheme to prepare for full membership of
the organization, Hungarian Prime Minister Gyula Horn
writes in a letter addressed to Jacques Delors,
President of the EU Commission.

     The letter was handed over to Henning
Christophersen, Deputy President of the Commission, by
Titular State Secretary Endre Juhasz, President of the
Hungarian Office for European Affairs.

     In the letter, the prime minister confirms
Hungary's commitment to joining the European Union as a
full member, and outlines its related objectives,
requests, and expectations.

     On Thursday, the state secretary talked to
Christophersen and Giovanni Ravasio, Director-General of
Economic and Financial Affairs, on the Hungarian
application.

     According to unofficial Brussels sources, the loan
in question would amount to ECU 2 billion, or USD 2.25
billion.

     The state secretary recalled that in 1990-91 the
European Community approved an ECU 1.05 billion loan for
improving Hungary's balance of payments, of which ECU
790 million was actually drawn.

     Although part 101 of the EU-Hungary association
agreement makes it possible for the EU to grant loans
for economic restructuring, Hungary has not yet received
any, Juhasz said.

     It may support a Hungarian request that EU
Commission draft East European strategy to be cleared by
the Essen EU December summit also allow for loans for
macro-economic purposes, he added.
     "I was assured here that Brussels would judge the
application in a constructive spirit, but the final
answer will probably depend on the outcome of the
summit," Juhasz said.


Minister of Finance on IMF Talks


     Budapest, October 7 (MTI) - TALKS between Hungary
and the International Monetary Fund (IMF) are to
continue in October. To a certain extent, views have
neared each other at the Madrid talks this week,
however, there are still major differences, Hungarian
Minister of Finance Laszlo Bekesi said after returning
to Budapest from Madrid.

     He added that an agreement would be extremely
important, as without the confidence of the
international monetary world would wane towards Hungary.

     The Hungarian delegation led by Bekesi and the
President of the National Bank of Hungary (NBH), Peter
Akos Bod, attended the annual general assembly of the
International Monetary Fund and the World Bank in
Madrid.

     Bekesi said that when a delegation of the
International Monetary Fund visited Hungary in
September, it insisted on cutting the 1995 deficit of
the budget to 3 per cent of the GDP, capital repayments
not included.

     (This year, the budget deficit is expected to be
around HUF 330 billion, which is 7 per cent of the GDP.)

     During the talks in Madrid, the IMF experts said
they would consider it sufficient if the deficit does
not exceed 5 per cent of the GDP. As against this, the
Hungarian proposal was 6-7 per cent.

     The Hungarian government submitted calculations
whereby the 1995 deficit of the budget would be HUF 291
billion (approx. USD 2.8 billion), without capital
repayments.

     Capital repayments total HUF 160 billion, which
means the gross deficit would total HUF 451 billion.

     As against this, the IMF insists on cutting the
deficit without capital repayment to HUF 250 billion, in
a way that the deficit of the current balance of
payments not surpass USD 2 billion.

     According to Bekesi, these differences can be
bridged, and its seems probable that the positions will
significantly near each other during the October talks.

     Inasmuch as an agreement is reached with IMF
representatives, it could come into force in the first
quarter of 1995 at the earliest. There is no decision as
yet as to whether the agreement would run for one, or
for three years.

*********************************************************


N  E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs     Telephone:36(1)156-8000
Press Department                Telefax: 36(1) 156-3801
508/1994.                    Budapest, October 11, 1994

Hungarian-Canadian Talks - Visas Abolished for Hungarians


     Budapest, October 10 (MTI) - CANADIAN Federal
Minister of Citizenship and Immigration Sergio Marchi
held talks on Monday with the political State Secretary
of the Hungarian Foreign Ministry, Istvan Szent-Ivanyi.

     He announced that the compulsory visa requirement
for Hungarian citizens traveling to Canada would be
abolished with effect from November 1.

     Marchi also said that, Canadian Prime Minister Jean
Chretien had accepted the Hungarian invitation to attend
the CSCE summit in Budapest in December, the spokesman of
the Foreign Ministry informed MTI on Monday.

Council of Europe Parliamentary Assembly President in
Budapest


     Budapest, October 10 (MTI) - THE President of the
Republic of Hungary has, on the recommendation of the
Prime Minister, awarded the Order of the Republic with
Grand Cross to Miguel Angel Martinez, President of the
Parliamentary Assembly of the Council of Europe, in
recognition of his long-standing work for Hungarian
interests.

     The decoration was presented to Miguel Angel
Martinez by President Arpad Goncz in Parliament on
Monday. Also present were the Speaker of the Hungarian
Parliament Zoltan Gal, and the Spanish Ambassador to
Hungary, Pablo Renavides.

     Miguel Angel Martinez is visiting Hungary at the
invitation of Zoltan Gal. On Monday, he held talks with
his host, and was also received by President Goncz.

     Following the official meetings, Miguel Angel
Martinez told MTI that Hungary, as a full member, could
play an even more important role in the Council of Europe
in the future.
     In the course of his current visit, he will detail
the most pressing problems facing the Council of Europe,
the ways in which Hungary can better participate in
resolving mutual problems, and how the Council of Europe
can help Hungary on its road to membership of the
European Union.

     Miguel Angel Martinez said the talks were sincere
and carried on in an informal atmosphere.

     He said the Council of Europe intends a very active
role for Hungary in the work carried out to protect the
minorities, in order that principles and practice should
be brought into harmony as soon as possible.

     As regards Hungarian government policy, Miguel Angel
Martinez said the foreign policy line had not changed in
any issues of key importance.

CSCE Review Conference


     Budapest, October 10 (MTI) - THE review conference
of the Conference on Security and Cooperation in Europe
(CSCE) continued in Budapest on Monday with addresses by
the delegation leaders.

     Several leaders, including the European Union
delegate, wanted the CSCE to make greater efforts to
practically implement common European values and norms,
instead of merely listing them.

     Others felt new means are needed for this, and to
prevent and manage conflicts. Some others argued that
better use of existing institutional frameworks would be
sufficient.

     Several speakers called attention to the fact that
the CSCE is the only European organization in which the
member states are equal. Discussing links to other
international organizations, almost all delegation
leaders argued in favor of the CSCE keeping a
coordinated, rather than subordinated, role compared to,
for instance, the European Union, NATO, or the Western
European Union.

     Several speakers criticized the CSCE for not having
done enough to prevent or contain the Yugoslav conflict.

Suspected Assailants of Hungarian Diplomat in Teheran
Found


     Budapest, October 10 (MTI) - IRANIAN police are
questioning offenders suspected of September's assault on
the Hungarian commercial counselor and his wife, foreign
affairs spokesman Gabor Szentivanyi said today, quoting
an Iranian foreign affairs spokesman saying that the
assailants were the Afghan-born gardener and a relative
who worked in the flat rented by counselor Jozsef Nagy.

     Iranian Minister of the Interior is expected to make
an official announcement about the arrest on Tuesday.

     Local press reports in Teheran say six Afghans and
an Iranian are suspected of having broken into Nagy's
home two weeks ago, killing his wife and seriously
injuring the Hungarian diplomat.

     General Reza Seifollahi, national police commander,
was quoted saying the Iranian janitor in the building
neighbouring the house rented by the Nagy couple admitted
during police questioning that he had helped the Afghan
assailants enter the diplomat's flat.

     Nagy's wife may have recognized the caretaker during
the burglary, making it more likely she would be killed.
The Iranian news agency IRNA did not name the assailants.
The Afghans have been detained in another, to-date
unnamed town.

Swedish Military Delegation in Hungary


     Budapest, October 10 (MTI) - LIEUTENANT-GENERAL Ake
Sagren, commander of Swedish Land Forces, arrived here at
the head of a military delegation for a four day official
visit, as part of an agreement on bilateral
Hungarian-Swedish military cooperation, the press
department of the Ministry of Defence told MTI today.

     Lieutenant-General Sagren is scheduled to visit the
Headquarters of Land Troops and the Air Defence
Headquarters of the Hungarian Armed Forces as well as
several military units.

     Before he leaves, he will see Lieutenant-Colonel
Janos Deak, commander of the Hungarian Armed Forces, and
chief of staff.

Council of Europe Parliamentary Assembly Chief Meets PM
Horn


      Budapest, October 10 (MTI) - MIGUEL ANGEL MARTINEZ,
chairman of the Parliamentary Assembly of the Council of
Europe, liked the Hungarian government position on
national and ethnic minorities, he told prime Minister
Gyula Horn, meeting him today.

     Horn said Hungary wants to reach agreement with its
neighbours by all means, adding that historical
grievances must not be elevated to the level of current
affairs. Let historians deal with grievances - the
Hungarian government should look ahead, he said.

     Later Martinez told journalists that the Prime
Minister had confirmed: Hungary has all the potential to
be admitted to the European Union as soon as possible.
Martinez said he, as one of the executives of the Council
for Europe, would do his very best to ensure that entry
comes as soon as possible.

     Government spokesperson Evelyn Forro said that in
the one-hour meeting, Martinez invited PM Horn to give a
lecture on Hungarian policy at the next general meeting
of the Council of Europe.


CSCE Can Regain Prestige Through Action - Contributions


     Budapest, October 10 (MTI) - HEADS of delegations
attending the CSCE review conference argued for a better
operation of the CSCE mechanism today. Several speakers
said the CSCE can regain prestige and credibility by
taking action.

     Some speakers said the CSCE should set up its own
multinational military unit to manage the current
conflict in Mountainous Karabakh, while others thought
the CSCE should allow a peace-keeping unit from a country
not involved take action on behalf of the CSCE in
conflict-hit regions.

     CSCE, even moving ahead of the UN, become the first
organization to help defuse tensions erupting in Europe.

     The Austrian delegate said the closing document at
the Budapest conference should formulate basic principles
for creating military security in southeastern Europe.
The Moldovan delegate wanted to release a statement
against separatism.

     After Monday's session, Foreign Minister Laszlo
Kovacs gave a banquet in honor of the conference
delegates.

     The CSCE continues work at a plenary session on
Tuesday.

*********************************************************


N  E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs     Telephone:36(1)156-8000
Press Department                Telefax: 36(1) 156-3801
509/1994.                    Budapest, October 12, 1994

Hungarian-Ukrainian Talks in Kiev


     Kiev, October 11 (MTI) - WORK-GROUPS are being
formed to prepare the dismantling of certain legal and
economic regulations that halt Hungarian-Ukrainian
cooperation in some fields - this is the most important
result of Hungarian Minister of Industry and Trade
Laszlo Pal's talks held in Kiev on Monday. Pal is the
first member of Hungary's socialist-liberal government
to draw up Eastern European plans to Kiev both in
general and with special regards to Ukraine.

     Pal, in Kiev since Sunday evening, was met by Prime
Minister Vitaliy Masol. Their talks primarily focused on
Kiev's interest in Hungarian experiences, either
positive or negative, gained in the process of
transformation into a market economy. Ukraine would also
like to study Hungary's cooperation with international
monetary organizations, Masol said.

     Ukrainian Minister of Foreign Trade Sergey Osika
called for the renewal of the accounting system, and the
signing of a general bilateral accord of cooperation. In
the course of talks at the Ukrainian energetic centre,
Pal and the Ukrainian politicians agreed that Hungarian
companies may want to cooperate in the renewal of power
plants and the modernization of control equipments. Some
topics remained open for further discussion, including
the possibility of using Russian coal in these plants,
and that some of the power gained this way could go to
Hungary. Ukraine's long-term integration into the
European energy system was also discussed.

     The politicians finally touched on possible
Hungarian bauxite exports to Ukraine.

Hungarian FM on Main Foreign Policy Aims


     Budapest, October 11 (MTI) - FOREIGN Minister
Laszlo Kovacs outlined the principal direction followed
by Hungary's foreign policy in recent months, speaking
at the customary foreign spokesman's briefing on
Tuesday.

     According to Kovacs, one of the most urgent tasks
is to settle relations with neighbouring countries,
particularly with Slovakia, Romania and Yugoslavia,
although relations with Belgrade cannot be isolated from
developments in the South Slav crisis .

     Kovacs stressed that settling relations with
neighbouring countries is linked to Hungary's other
chief foreign policy aim of being included in the system
of Euroatlantic institutions.

     Regarding the CSCE review conference being held in
Budapest, the foreign minister noted that next year
Hungary will take over the rotating presidency of the
Helsinki process, a post which he said involves
increased responsibility without extra rights.

     Hungary does not want to ignore its relations with
Eastern Europe, and so Prime Minister Gyula Horn is
preparing to visit Moscow, although the trip is unlikely
this year because of his crowded schedule. Horn also
plans to travel to Ukraine, Kovacs said.

CSCE Review Conference in Budapest


     Budapest, October 11 (MTI) - AT THE CSCE review
conference, which opened in Budapest on Monday, some
contributors proposed that the CSCE should pay more
attention to exploring the causes of ethnic tensions
which cause most conflicts in the world today.

     Referring to the explosive situation in Kosovo, the
Albanian delegate praised the CSCE for what he described
as its exemplary role in the prevention of conflicts.

     The Norwegian delegate said that with ethnic
conflicts the CSCE should try to get all parties
involved to the negotiating table.

     The Greek delegate said that after the end of the
Cold War aggressive nationalism gained ground in many
countries, entailing increasingly frequent and grave
violations of human rights.

     According to the delegate of the Holy See, the CSCE
should make only diplomatic efforts to manage conflicts.

     The U.S. delegate disagreed, supporting the idea
that the CSCE should commission the army of a country
not involved in the conflict to carry out peacekeeping.
In Nagorno-Karabakh, the delegate said, the CSCE itself
should maintain a multinational peacekeeping force.

     Some delegates hoped that the CSCE would play a
major role in restoring European values after the end of
the war in Yugoslavia. Dutch and Romanian delegates
proposed launching a dialogue with Yugoslavia, whose
CSCE membership was suspended recently.

     Most delegates expect the review conference to help
renew the CSCE. The U.S. delegate said, for the early
December summit of CSCE heads of state and government,
the conference should draft a short, solid political
declaration expressing the CSCE states' common objective
to secure a safe, stable, and democratic future.

     On Tuesday, Javier Ruperez, head of the delegation
of the CSCE Parliamentary Assembly delegation, said the
CSCE's decision-making mechanism should be revised. "The
requirement of complete consensus limits the operating
ability of the CSCE - the Parliamentary Assembly
proposes that CSCE decisions should require only a 90
per cent majority. This way it could criticize the
policy of some member states and operate more
dynamically," he said.

* *

     Budapest, October 11 (MTI) - ADDRESSING the CSCE
review conference in Budapest today, Gebhardt von
Moltke, NATO Deputy Secretary-General, said that NATO
thought the CSCE played a major role in laying the
foundations of security in Europe. NATO leaders expect
the CSCE summit meeting, after the conference, to make
decisions improving cooperation between the CSCE and
other world institutions, preparing for a security
system based on cooperation.

     NATO has played an active role in arms reduction in
Europe, which it thinks the cornerstone of European
security based on the treaty on the reduction of
conventional forces. NATO wants the CSCE to pay great
attention to preventing the spread of weapons of mass
destruction, and promoting regional arms limitation so
as to forestall the outbreak of local conflicts.

     On behalf of NATO, von Moltke hailed the CSCE's
efforts to prevent and manage crises. He stressed that
the North Atlantic alliance was prepared to assist CSCE
peacekeeping, and recalled that NATO established
cooperation with a number of CSCE member states in
Eastern and Central Europe in the framework of the North
Atlantic Cooperation Council and peace partnership. This
cooperation, however, should complement rather than
replace the CSCE's efforts to guarantee stability and
security, he said.


N  E  W  S  L  E  T  T  E  R

Republic of Hungary                 Budapest, 1394 . 423
Ministry of Foreign Affairs        Telephone:36(1)156-80

**********************************************************


N  E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs     Telephone:36(1)156-8000
Press Department                Telefax: 36(1) 156-3801
510/1994.                    Budapest, October 13, 1994

Hungarian Peace Partnership with NATO - Gov't Proposals

     Budapest, October 12 (MTI) - CONCRETE plans on
Hungary's participation in NATO's Partnership for Peace
program are expected to be handed over in Brussels in
early November, Tibor Toth, deputy administrative state
secretary for foreign relations at the Ministry of
Defense, told a press conference at the ministry on
Wednesday.

     Hungary intends among other things to make its
defense administration and budget comprehensible and to
introduce further democratic reforms in the army, Toth
said. It is also interested in NATO's defense-purchase
methods, its experience in crisis management, and
joint peacekeeping exercises.

     On preliminary estimates, participation in the
Partnership for Peace program will cost Hungary HUF
300-350 million next year.


Debt Rescheduling Rumor Unfounded, Hungarian Minister
Says

     Budapest, October 12 (MTI) - GERMANY'S Frankfurter
Allgemeine Zeitung newspaper story that World Bank and
IMF officials will discuss debt rescheduling in Budapest
was described as totally unfounded by Hungarian Finance
Minister Laszlo Bekesi to MTI.

     The minister said the idea of rescheduling was not
even raised at preparatory talks or concrete discussions.
"What we are talking about with the IMF is a new
agreement and economic policy package," Bekesi said,
adding that confused information like that in the
German newspaper frequently occurs.

Prime Minister Horn Sees Premier of Lower Saxony

     Budapest, October 12 (MTI) - PRIME Minister Gyula
Horn received Gerhard Schroeder, prime minister of Lower
Saxony here today.

     Earlier in the day Schroeder had taken part in the
inauguration ceremony of the Audi engine factory in Gyor,
western Hungary.

     After the 45-minute meeting, Schroeder told media
representatives that Prime Minister Horn and he had
discussed the upcoming elections in Germany and ways to
develop economic ties between Hungary and Lower Saxony.
They also considered the opportunities for the Audi
Car Factory in the Hungarian market.

     Herr Schroeder explained that he did not want
special rights to be granted to Audi, only that they
should be allowed to compete equally with other car
manufacturers.

     He said he would discuss this subject with the
Hungarian Minister of Trade and Industry.

     Asked about his opinion on future membership of the
European Union for Hungary, Schroeder said the wish of
the reformist countries of Central Eastern Europe to be
admitted to the EU as soon as possible should be
respected.

     He said he would advise everybody, including his own
party, the German Social Democratic Party, to try to
understand this wish.

Parliament's Foreign Affairs Committee Meets

     Budapest, October 12 (MTI) - FOREIGN Minister Laszlo
Kovacs reported on the results of the foreign policy
pursued by the governing coalition when Parliament's
foreign affairs committee met at the Foreign Ministry
here today.

     Kovacs said Hungary had sent signals to its
neighbours indicating that Budapest was ready to
normalize relations with them.

     The Hungarian government regards the signing of
basic treaties that specify the inviolability of borders,
a renunciation of territorial demands, and mutual
commitments on the protection of minority rights, as a
means of achieving this aim.

     Budapest has also signaled to its regional partners,
including Slovakia and Romania, that until such treaties
have been concluded, it continues to be ready to develop
relations in every way possible. Mutual visits have been
beneficial in this regard.

     According to indications the shift in emphasis by
Hungarian foreign policy has been favorably received in
western Europe and North America.

     Kovacs also claimed that the ministry had managed to
allay the fears of the representatives of ethnic
Hungarians living outside the borders of Hungary, that
the process of rapprochement does not mean that the
government regards supporting them as less important. It
is ready to listen to their views and take them into
consideration.

     Kovacs pointed out that Hungarian foreign policy had
simultaneously stepped up efforts aimed at integrating
into the Euro-atlantic system of relations, which is
indicated by the dialogue conducted with the ambassadors
of the member countries of the EU serving in Budapest.
The recent trip by President Arpad Goncz to the Far East
has also helped diversify Hungary's foreign relations.

     The foreign minister's report was followed by a
heated debate punctuated by criticism leveled by the
opposition, but everybody agreed finally on the
desirability of maintaining the six-party consensus on
Hungarian foreign policy.

**********************************************************


N  E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs     Telephone:36(1)156-8000
Press Department                Telefax: 36(1) 156-3801
511/1994.                    Budapest, October 14, 1994

CSCE: Israeli, British, U.S. Polish, Latvian, Estonian
Speakers


     Budapest, October 13 (MTI) - THE CSCE review
conference continued in Budapest today with a
contribution from the Israeli delegation leader, Deputy
Foreign Minister Yossi Beilin.

     Beilin, the last speaker from non-member
Mediterranean countries, reported on the latest peace
talks by Israel, and announced that his country would
soon make peace with Jordan, and within a few months
with Syria and Lebanon.

     He stressed that problems in the Middle East can
only be solved on a multilateral basis. Peace cannot be
restored unless the sides realize they can draw economic
benefit from peace by trading with their neighbours
instead of warring, he said.

     The Israeli delegate also pointed out that European
security depends on Mediterranean peace and security,
adding his country has learned much from the long
activity of CSCE, which proved especially useful in
building confidence between states.

     Delegates from Britain, the United States and
Poland emphasized that the CSCE countries can only draw
useful lessons from the Israeli experiences, which may
contribute to the elaboration of new
confidence-promoting techniques. All called for
deepening cooperation between Mediterranean states and
CSCE members.

     The Latvian and Estonian speakers agreed that the
withdrawal of Russian troops from the Baltic area was
not without problems. The Latvian delegate expressed
appreciation for CSCE"s help and the work of its
commissioner in charge of minority affairs.

     The Estonian delegate agreed but, responding to the
Wednesday speech by Russia's representative, said he had
no knowledge of the CSCE promise to separately deal with
problems which afflict the Russian minorities living in
Baltic states.

     The Latvian delegate supported the Russian proposal
that the Budapest conference issue a political
declaration on the forthcoming 50th anniversary of the
conclusion of the Second World War.

Government Spokeswoman Faces the Press


     Budapest, October 13 (MTI) - GOVERNMENT spokeswoman
Evelyn Forro told media representatives here today that
the Cabinet had discussed as well as the topics on its
agenda a letter sent to Prime Minister Gyula Horn by the
current chairman representing the employers in the
Interest Coordination Council.

     The sender demanded that the government break off
planning next year's budget until it had first consulted
the Council.

     The spokeswoman pointed out that the letter had
caused a shock among ministers who described the
proposal as unacceptable.

     They declared their intention to carry on planning
next year's budget in line with the original plans, and
considered their work was going well and saw no
possibility of suspending their work.

     Consultations with the Interest Coordination
Council are timed for next week, in accordance with the
original plans, and the ministers are hopeful of
reaching an agreement.

     Forro said a draft for next year's budget would be
submitted by the government to Parliament following
negotiations with the Interest Coordination Council.

     Minister of Justice Pal Vastagh announced that the
government would make representations to Parliament
asking for a speedy debate on amendments to the
Ombudsman Act and the necessary amendments to the
Constitution.

     He recalled that the constitution has since 1990
contained the institution of Ombudsman, a commissioner
in charge of overseeing civic and nationality rights,
but over the last four years Parliament has been unable
to vote with the necessary two thirds majority for the
candidates for the position of Ombudsman. As regards the
specific amendments, the constitution provides for the
institution of a collective Ombudsman.

     Instead of this, the government proposes the
introduction of the institution of a single commissioner
to bring the constitution in line with the act on
nationalities.

Government Spokeswoman Faces the Press


     Budapest, October 13 (MTI) - MINISTER of Justice
Pal Vastagh said that the government would set up a
commission to continue negotiations, already begun, with
organizations representing Jewish interests to provide
various forms of compensation to the Jewish community
(compensation for grievances suffered by Hungarian Jews
during and after World War II).

     The commission will comprise the Minister of
Finance, the Minister of Justice, the political state
secretaries at the Ministry of Culture and Foreign
Affairs, and the chairman of the National Office for
Compensation and Restitution.

     Vastagh said that the Hungarian state was obliged
to pay compensation by the 1947 Paris Peace Treaty, and
by a ruling passed by the Hungarian Constitutional Court
in 1993.

     Government spokeswoman Forro also said that the
government had discussed the legislation which could
harmonize Hungarian Law with the European Human Rights
Convention.

     The government had established the need to amend
the law on criminal procedure, in order to establish the
principles of equality of treatment before the courts
for all citizens and the presumption of innocence.

     The government also urged a new law to regulate the
procedures for reviewing the sentences imposed on
soldiers serving in the armed forces.

     An amendment of the Public Health Act must contain
the provision that the courts will determine whether the
mentally ill need medical treatment.

     The government authorized the Minister of Transport
to sign a new Hungarian-Romanian agreement on air
traffic.

     The agreement will specify the rights relating to
the opening of airline offices in each other's country
and to the sale of tickets.


Foreign Ministry State Secretary in Bonn Talks


     Bonn. October 13 (MTI) - GERMANY's foreign policy
and her relationship with Hungary will not change,
irrespective of the outcome of the nationwide elections
on Sunday, Dieter Kastrup foreign affairs state
secretary and Joachim Bitterlich, head of the foreign
affairs department at the Chancellor's Office told
Ferenc Somogyi, the administrative state secretary at
the Hungarian Foreign Ministry, here today.

     Questions discussed included a survey of bilateral
relations and Hungary's intention to join the European
Union and NATO.

     Somogyi later told Hungarian reporters that both
sides spoke highly of bilateral Hungarian-German
relations, and German officials stressed that Bonn's
attitude regarding Budapest would not change after the
elections.

     The German hosts showed a keen interest in the
specific results that Hungarian proposals aimed at
normalizing relations with the neighbouring countries
had brought in the short tenure of the Hungarian
administration.

     The German politicians also stressed that it would
favorably influence the process of admission to the
European Union and rapprochement with NATO if regional
problems could be solved, or at least a process of
normalization could be launched.

     Regarding an expansion of the European Union, the
hosts explained that difficult tasks
lay ahead, and lengthy processes had to be completed.

     Germany seeks to determine the terms of expansion
primarily from a substantive aspect at the December Esse
summit conference of the European Union.

     EU member countries are expected to set the terms
under which, if fulfilled, individual states could be
admitted.

     German officials do not think the time is ripe yet
to name an obligatory, later accountable date, by taking
into consideration the wishes of all countries seeking
admission, regarding the start and closure of the
various stages of admission.

     Although no rankings of admission were discussed,
it became clear that Hungary could be admitted to the
European Union in the first wave, Somogyi said.


Keleti Invites Perry to Visit Hungary


     Budapest, October 12 (MTI) - DEFENSE Minister
Gyorgy Keleti has invited US Defense Secretary William
Perry to visit Hungary.

     Keleti extended the invitation at a meeting with
Admiral William A. Owens at the Hungarian Defense
Ministry here today.
     Owens, deputy chairman of the US joint chiefs of
staff arrived today for a 24 hour visit to Budapest.

     After the meeting Admiral Owens told reporters that
the United States greatly appreciated Hungary's
participation in the NATO Partnership for Peace program.

     He also said that the Hungarian Armed Forces must
be made compatible with the forces of NATO member
states.

     Cooperation can take place in the air once the
technology for friend or foe recognition is used by the
Hungarian Air Force.

     Keleti expressed his thanks to Admiral Owens for
the American assistance through which this technology
can be incorporated into the system used by Hungarian
military air traffic controllers.

     Owens also said that cooperation among land forces
can be promoted through joint training and military
exercises.


Israeli Deputy Foreign Minister Holds Press Briefing


     Budapest, October 13 (MTI) - ISRAELI Deputy Foreign
Minister Yossi Beilin, the head of the Israeli
delegation to the CSCE review conference, paid tribute
to the significance of the meeting, at a press
conference here tonight.

     He said that Israel would welcome a similar
framework for cooperation in the Middle East which would
make it possible to discuss such "baskets" in the system
of contacts, apart from political problems, as the
so-called human dimensions, economic issues and
questions on security.

     The point of departure for Tel Aviv is that a
political settlement alone is not sufficient for
preserving lasting peace.

     Beilin also said that this is his third visit to
Budapest, and he used the opportunity to hold talks at
the Foreign Ministry.

     He explained to his negotiating partners that in
Israel's assessment considerable changes had occurred in
bilateral Hungarian-Israeli relations over the past six
to seven years, leading to very close and friendly
relations.

     In this connection he recalled that in 1989 Hungary
was the first East European country to restore relations
with Israel.

     Beilin gave a short outline of the main directions
of the Middle East peace process. The good news is that
negotiations with Jordan look promising, and Israel and
Jordan could sign a peace treaty next week or possibly
next month, which could provide a further impetus to the
peace process.

     The bad news is that - as is known - the Palestine
Hamas organization kidnapped an Israeli soldier. This
has produced an extremely complex situation as the
moment of truth has arrived for the PLO led by Yasser
Arafat.

     Beilin recalled that in the long years of the
Palestine uprising, the Intifada, heated debates were
conducted in Israel about what to do. One camp demanded
to strike at the Palestinians, since Israel has a major
military power.

     Others said that only a political solution was
conceivable.

* * *

     Budapest, October 13 (MTI) - OTHERS said that the
territories must be returned since Israel must not rule
over people who do not want this.

     The electors backed this policy with their votes,
and it is now being put into practice. Now
responsibility rests with the PLO to put an end to
violence in the territories under their control.

     However, this will not be easy since they must take
action against their own Palestinian brethren.

     Thus the moment of truth has arrived for the PLO.

     Yasser Arafat has to date maneuvered between
Palestinian extremists and Israel.

     This is no longer acceptable; he will have to
decide where he stands..

     If he cannot stop the violence, it will be very,
very difficult to continue the peace process, all the
more so, because Israeli public opinion responds very
sensitively to developments in this area.

     Nevertheless Beilin holds the view that Hamas can
in no way torpedo the peace process, and after the
agreements concluded with the PLO, Hamas is in fact
doomed.

     In order to normalize the situation, of course, it
would be necessary to improve living conditions in the
Gaza strip.

     Beilin also said that for the time being Syria is
not disposed to negotiate directly with Israel, but
contacts are being made through American mediation.

     Slow progress has been observed in the dialogue,
but there are still considerable differences between the
two sides.

     Security measures are at the center of controversy,
and if agreement could be reached in this area, the road
could be clear for settling other matters as well, he
said.

* * * *

N  E  W  S  L  E  T T  E  R

Republic of Hungary                 Budapest, 1394 . 423
Ministry of Foreign Affairs        Telephone:36(1)156-80

*****************************************************************
A tovabbterjesztest a New York-i szekhelyu Magyar Emberi Jogok
Alapitvany tamogatja.

           [*]   [*]  [*]   [*]  [*][*]    [*][*][*]
           [*]   [*]  [*]   [*]  [*]  [*]  [*]
           [*][*][*]  [*][*][*]  [*][*]    [*][*] 
           [*]   [*]  [*]   [*]  [*]  [*]  [*]    
           [*]   [*]  [*]   [*]  [*]   [*] [*]

Reposting is supported by Hungarian Human Rights Foundation News
and Information Service.
*****************************************************************



N  E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs     Telephone:36(1)156-8000
Press Department                Telefax: 36(1) 156-3801
513/1994.                    Budapest, October 18, 1994

Wallonian Prime Minister Holds Talks in Budapest


     Budapest, October 17 (MTI) - WALLONIAN Prime
Minister Robert Collignon today held talks with Labour
Minister, Magda Kosa Kovacs, parliamentary State
Secretary for Industry and Trade, Attila Karoly Soos and
State Property Agency managing-director, Janos Szabo
Hatvani.

     The Labour Minister proposed to Collignon that they
draw up schemes to help Hungarian experts to become
familiar with the crisis-management methods used
successfully in Wallonia.

     Soos told reporters that Wallonia accounts for
20-25 per cent of the trade between Hungary and Belgium,
which amounts to USD 400 million a year. Having one of
Europe's most efficient iron and steel industries ,
which has recovered from a serious crisis, the province
may help Hungary in solving the problems facing its
metal industries.

     Hungary would like to sell more wine and meat
products to Wallonia, and import its high technology.
Prospects are also good for boosting links in the arms
industry and in tourism.

     Later in the day the Wallonian Prime Minister met
the Hungarian Prime Minister, Gyula Horn.

U.S. to Help in Modernization of Hungarian Fighter
Planes


     Budapest, October 17 (MTI) - AN ADVANCED system of
identification, friend or foe, deployed with NATO, is to
be built into 109 fighter planes of the Hungarian armed
forces by late December, Defense Minister Gyorgy Keleti
announced today at a meeting of officers at the tactical
flight unit in Papa.

     The system also enhances safety for civil and
military flights and meets specifications of
international civil flights.

     In December 1991 Parliament voted to supply HUF 1.1
billion for the modernization of electronic equipment
for fighter planes.

     The friend or foe system is to be deployed on the
basis of an agreement concluded by the Defense Ministry
and the U.S. government.


Spain Supports Hungary's Admission to EU


     Budapest, October 17 (MTI) - HUNGARIAN Foreign
Minister Laszlo Kovacs and his Spanish counterpart
Javier Solana established good personal and informal
contacts, of significance next year when Hungary fills
the post of chairmanship of the CSCE, and Spain will
take over chair of the EU and the West European Union
from the second half of the year.

     They discussed this before journalists at a joint
press briefing here today.

     Solana said Hungary can always count on the
understanding and support of Spain in its endeavours at
integration into Europe.

     He added that the process of admission must be
based on national consensus, a key point regarding the
Spanish integration experience.

     He said the idea arose during the talks to set up a
bilateral commission for the transfer of relevant
Spanish experiences. Madrid has no fear that the new
applicants would draw EU support from it. Spain, he
said, would like to reach a level of advancement when it
no longer needs structural EU support.

     Both ministers described bilateral ties as good,
free from problems and pointing toward long term
development.

     They also announced that high level visits would
continue, and a visit by the Spanish royal couple to
Hungary is on the agenda.

     Solana presented an invitation from Prime Minister
Felipe Gonzalez to Prime Minister Gyula Horn. Gonzalez
will visit Budapest on December 5 and 6 to attend the
CSCE summit.

     Commenting on the German elections and the Finnish
referendum, Solana said he hoped the policy of expanding
the European Union would continue. Chancellor Kohl is a
dedicated advocate of such a concept, and at present
Germany holds the current chairmanship
of the EU.

     Kovacs said many years of good cooperation would
continue between Hungary and Germany in the wake of the
German elections, pointing beyond party policy interest
and the line-ups of governments.

     Kovacs also expressed pleasure at the passing of
the referendum by the Finns to join the EU. "We have not
only friends but relatives in the EU now," he added.

Budapest Welcomes American Bill on NATO Participation


     Budapest, October 17 (MTI) - Hungary's diplomacy
welcomes the bill on NATO participation, which was
submitted days ago by the U.S. Senate to President
Clinton for endorsement.

     Foreign ministry spokesman Gabor Szentivanyi told a
press briefing here today that the bill proposes to the
president the drafting of a program for Hungary, Poland,
the Czech Republic and Slovakia that facilitates
integration into NATO by countries having achieved
democratic transformation success.

     The bill ensures licenses for the four Central
European countries similar to those accorded NATO
members for joint training, war games, the
standardization of military systems, the procurement of
certain weaponry and participation in other military
programs.

     If the bill is signed into law in the United
States, it is yet another signal that the US supports
Hungary's endeavours, and is ready to promote the
smoothest possible transition of the Visegrad countries
to attainment of full NATO membership.

Visegrad Countries to Hold Prime Ministers' Meeting


     Budapest, October 17 (MTI) - CZECH diplomacy is
ready to take part in working out a strategy to join the
EU, expanding relations with NATO, and moving the CSCE
process along under Hungarian chairmanship, foreign
ministry political secretary Istvan Szent-Ivanyi was
told by his negotiating partners in Prague.

     Szent-Ivanyi recently visited the Czech capital,
and briefed reporters on his talks today.

     He said an imminent visit by President Havel to
Budapest and a scheduled meeting of the prime ministers
of the Visegrad countries, due in November, would mark
important stages in Hungarian-Czech high level dialogue.

N  E  W  S  L  E  T T  E  R

Republic of Hungary                 Budapest, 1394 . 423
Ministry of Foreign Affairs        Telephone:36(1)156-80

********************************************************

N  E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs     Telephone:36(1)156-8000
Press Department                Telefax: 36(1) 156-3801
514/1994.                    Budapest, October 19, 1994

President Meets Walloon Prime Minister


     Budapest, October 18 (MTI) - HUNGARIAN President
Arpad Goncz on Tuesday met the Prime Minister of the
Walloon region of Belgium, Robert Collignon, the
president's spokesman announced.

     President Goncz said it was important for the
countries of the region to be prepared for talks related
to the European Union and for these talks to begin as
soon as possible.

     He called for inviting the countries that are
submitting requests for full membership to the various
committees of the European, with conference rights.

     The President said it is vital to begin linking
infrastructures of the more advanced part of Europe with
Eastern Europe.

     Robert Collignan said the gradual integration of all
countries matters from the point of view of European
stability and security. He feels talks about full
membership can begin with certain Central European states
in 1997. He said these states are those who have taken
decisive steps to transform their economies.

Kovacs Explains Raised Hungarian Farm Tariffs to EU's
Britain


     Brussels, October 18 (MTI) - HUNGARIAN Foreign
Minister Laszlo Kovacs began a two-day official visit to
Brussels with a meeting with European Commissioner Sir
Leon Britain in charge of foreign economic matters and
Eastern Europe.

     Kovacs later told reporters he had outlined to
Britain the Hungarian government's integration policy and
Hungary's position on the EU's new Eastern European
strategy, which will be finalized at the EU summit in
Essen in December.

     Britain noted that EU members would probably
disapprove of Hungarian plans to raise agricultural
tariffs from November 1. Kovacs replied that the move had
to be made to help Hungarian farmers and to protect the
domestic agricultural market.

WJC President Discusses Jewish Property Compensation with
Horn


     Budapest, October 18 (MTI) - HUNGARIAN Prime
Minister Gyula Horn today received in his office World
Jewish Congress (WJC) President Edgar M. Bronfman, who is
holding talks in Eastern Europe on compensation for
stolen Jewish property.

     Horn told journalists after the discussion that
talks on compensation were continuing, but the process
itself might drag on far into the future because of
Hungary's difficult economic situation.

     Bronfman said the WJC was aware that Eastern Europe
does not belong to the richer half of the world and that
it will take a long time to repair the political,
economic and psychological damage caused by the
communists.

     The WJC would not like anyone to think it was being
unjust. It believes that the first step should involve
compensating local Jewish communities. Further
compensation should take account of the sense of justice
and possibilities of both sides.

IMF Talks in Budapest


     Budapest, October 18 (MTI) - MICHEL Camdessus,
director general of the International Monetary Fund, is
to open talks here on Thursday, October 20. A delegation
of experts from the IMF has been staying in Hungary since
Monday.

     Talks are to be held primarily at the Finance
Ministry and the National Bank of Hungary but the IMF
team is also likely to visit the Ministry of Industry.

     Camdessus will stay in Hungary on Thursday and
Friday, and is likely to meet Prime Minister Gyula Horn,
Finance Minster Laszlo Bekesi and executives of the
employers and employees' organizations.

     The IMF delegation is scheduled to hold talks in
Hungary until October 24, but it is conceivable that the
talks will be extended.

     Laszlo Akar, state secretary at the Finance
Ministry, told the Hungarian news agency today, that next
year's budget and the government's three year program
would form the subject of talks.

     The IMF experts arrived here precisely at this time
of the year to familiarize themselves with the
government's work relating to the drafting of next year's
budget.

     The draft budget is expected to be submitted to the
government on October 27.

     At stake in the Budapest talks is whether a three
year program can be worked out or a stand-by credit
agreement can be concluded with the International
Monetary Fund.

Press Conference on CSCE Conference


     Budapest, October 18 (MTI) - AMBASSADOR Istvan
Gyarmati summed up the main events and principal
statements made at the CSCE review Budapest conference at
a press briefing here today.

     Gyarmati, the head of the Hungarian delegation to
the conference, said a study of the contributions made to
the conference leads to the conclusion that the
participating states have the political will to
strengthen the CSCE process.

     This could represent a new chapter in the history of
European cooperation when the CSCE could be renewed using
a realistic approach, free from the illusions that may
have arisen following the epoch-making changes of 1990.

     With regard to the main tasks ahead Gyarmati said
the all-European framework, according to Hungarian
expectations, could at least partly bridge the security
policy gap on the continent.

     This framework is all the more suitable for playing
such a role since it is the only comprehensive one in
security policy.

     Therefore it would be advisable to develop a kind of
division of labour between the CSCE and other
international organizations. A long term role lies ahead
for the CSCE for instance in preventing and managing
conflicts.

     It is thought that the CSCE would take the first
steps to solve various regional conflicts, with the UN
only becoming involved after this.

     The delegates agree that it is necessary to further
institutionalize the CSCE, but without causing a growth
in red tape.

     All these questions are expected to be dealt with in
the political declaration made at the December summit.
     Budapest, October 18 (MTI) - SEVERAL delegates,
particularly those from the territory of the former
Yugoslavia raised the need for taking further arms
control measures.

     The Croatian delegate, invited observers from the
CSCE to study the state of ethnic Serbs living in
Croatia.

     Gyarmati also said there is still some debate about
how the December CSCE summit should be organized.

     The delegates have already made it clear that they
do not think it desirable that the leaders of all the 52
states should deliver speeches.

     However, the ambassador added, the Hungarian
leaders, as hosts to the summit, are entitled to use this
format, and have not excluded its use.

     In conclusion, the head of the Hungarian delegation
stressed that the real test would come after the CSCE
summit, when we can see how principles are put into
practice.

Delors Invites Horn to Visit Brussels


     Brussels, October 18 (MTI) - JACQUES DELORS,
chairman of the EC Commission, has invited Prime Minister
Gyula Horn to visit Brussels early next year, Foreign
Minister Laszlo Kovacs told reporters after he conferred
with Delors this evening.

     According to Kovacs, Delors has displayed keen
interest in the position of the Hungarian economy, the
endeavors of the Hungarian government for stabilization
and Hungarian foreign policy moves.

     In connection with the latter, Kovacs said Delors
spoke at length about changes in the relations between
Hungary and the neighbouring countries, stressing that
"he highly appreciated the fact that Hungarian-Romanian
and Hungarian-Slovak relations had moved
away from their deadlock".

     At the meeting Delors said that partly on the basis
of the personal experiences he had gained in the region,
he professed with conviction that only a case by case
decision could be made on admitting the associate
countries, after taking into consideration and weighing
the performance and merits of each country.

     He also pointed out that he expected the upcoming
Esse summit to bring "specific decisions" about the
future relationship of the European Union and the
associate East European countries.

     He said that personally he would make efforts to
this end when he meets German Chancellor Helmut Kohl in
the near future.



Foreign Minister Kovacs Holds Talks in Brussels


     Brussels, October 18 (MTI) - FOREIGN Minister Laszlo
Kovacs today met Wim van Eeekelen, the General Secretary
of the Western European Union, at its headquarters here.
He is the first foreign minister, from among the East
European "associate partner countries", to visit in his
capacity as Foreign Minister.

     After conferring with Wim van Eekelen, Kovacs met
members of the Permanent Council, which is made up of
ambassadors.

     Kovacs later told Hungarian reporters that he had
outlined the foreign policy priorities of the new
Hungarian government, with special emphasis on the
Hungarian attempts to integrate into Europe. He also
spoke about the future of the Conference on Security and
Cooperation in Europe, outlining Hungarian ideas and
views about December's summit meeting in Budapest.

     Kovacs stressed that Hungary simultaneously strives
to be present in the European Union, the West European
Union and NATO, which together form the Euro-Atlantic
integrational structures, and tries to develop its
foreign relations there. "When the Hungarian government
speaks about furthering the policy of integration, we
mean these three organizations jointly," he pointed out.

     Kovacs said that the West European Union is
operating more and more effectively as the European
pillar of NATO and seeks to become the independent
defense organization of the European Union formally by
the terms of the Treaty of Maastricht. Hungary had taken
a great step forward last May when it was awarded
"associate partner" status in the West European
Union. This is especially true since there is now formal
regular participation of the countries of the West
European Union, including Hungary, at ambassadors
conferences. For instance, the heads of the relevant
Hungarian ministries will be able to take part in the
defense and foreign ministry meetings due in November.

     Hungarian foreign policy will seek to simultaneously
improve its cooperation with all three organizations
which make up the Euro-Atlantic integration structures,
and we shall do our best to ensure that our participation
in the everyday work of the West European Union
becomes as complete as possible.

Parliament Passes 1994 Supplementary Budget


     Budapest, October 18 (MTI) - Parliament passed the
act on the 1994 supplementary budget of the Republic of
Hungary with a great majority tonight. 203 MPs voted for
the act, 23 against and one MP abstained.

     Earlier in the day MPs voted for nearly 120
proposals submitted to the draft, accepting a number of
them.

     On the basis of the accepted amendments the total
assets in the expenditures of the central budget amounted
to HUF 1,648.3 billion, revenues HUF 1,308.3 billion
forints, and the deficit HUF 339.9 billion.

     Finance Minister Laszlo Bekesi said in a speech
preceding the vote, that without the corrections effected
in the budget, the deficit of the state budget would have
exceeded HUF 380 billion, and the country's current
deficit in the balance of payments USD 4 billion.

     However, he said Hungary will still need to draw USD
500 million in external loans to finance the deficit
specified in the supplementary budget.

     He also said that the value of foreign working
capital would presumably total only USD 1.5 billion as
against a deficit of USD 3.5 billion in the current
balance of payments, and the country's net debt would
rise by USD 2 billion this year.

     In this year the act on the supplementary budget
could not set itself a turn in economic policy, but it
can create the terms for the economic policy moves
targeting a goal of stability and restructuring,
something inevitable in 1995.


N  E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs       Telephone:36(1)156-80

********************************************************

N  E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs     Telephone:36(1)156-8000
Press Department                Telefax: 36(1) 156-3801
515/1994.                    Budapest, October 20, 1994

Hungarian Press Review


     Budapest, October 19 (MTI) - THE President of the
World Federation of Hungarians, Sandor Csoori, gave an
interview to the daily "Magyar H!rlap", prior to the
organization's delegate assembly scheduled to open on
Friday.

     "When the World Federation considered as equal the
three regions - the Hungarian communities in the West,
the neighbouring countries and the mother country - it
immediately placed the idea of autonomy to the
foreground... We would like for local organizations to
gain in importance in all regions, as that is how local,
regional autonomies and, eventually, a mosaic nation can
come about," he said.

     Parliament is currently debating whether to hold the
1996 Budapest Expo or not. The Speaker of Parliament
received nearly 120,000 signatures from citizens
demanding the organization of the Expo, collected by
several civil organizations.

     In the wake of this, the leader of the Hungarian
Socialist Party's parliamentary group, Imre Szekeres, in
an interview in the national daily "Magyar Nemzet", said
that Hungarian economy cannot let a referendum in early
1995 upset its delicately balanced budget, put
together with such great difficulty. The conditions for
organizing the Expo do not exist, Szekeres
said, which is why Parliament should decide in the matter
as early as possible.

     State subsidies for research and development have
nominally been cut to one-third over the last four years,
according the Minister of Industry and Trade Laszlo Pal,
who gave an interview to the national daily
"Nepszabadsag".

     As compared to the annual 2.3-2.4 per cent of the
GDP earmarked for research and development prior to 1990,
the current proportion does not reach 0.6 per cent. The
Minister noted that only social sciences and, to a
certain extent, natural sciences basic research was
able to uphold its level, while technical research and
development has become extremely fragmented. Pal promised
major changes in this area.

* * *
     Budapest, October 19 (MTI) - DIFFERENCES in views
have surfaced in the leadership of the Federation of
Young Democrats (FYD), the small liberal parliamentary
opposition party, at the conference of the national board
over the weekend. In a confidential letter forwarded to
nearly 100 members of the board, FYD Deputy Chairman
Tamas Wachsler voiced disapproval over the fact that
ventures set up with FYD money by the party became
independent, and the presidium no longer has control over
those, with the business managers essentially dictating
the party.

     The daily "Nepszava" acquired a copy of several
supplements of the letter and also acquired the documents
which served as basis for the critical remarks. The FYD
board did not take Wachsler's anxieties into
consideration.


Czech President Havel to Visit Budapest


     Budapest, October 19 (MTI) - CZECH President Vaclav
Havel is to pay an official visit to Hungary on November
1-2, the press office of the Hungarian President
announced on Wednesday.

     Havel is meeting an invitation from Hungarian
President Arpad Goncz.

Parliament Approves Supplementary Budget


     Budapest, October 19 (MTI-ECONEWS) - PARLIAMENT
approved this year's supplementary budget late Tuesday
evening.

     At HUF 1,308bn, expenditure exceeds the sum budgeted
in the original law by HUF 188bn, with revenue totaling
HUF 1,648bn - an increase of HUF 178.5bn. The deficit
totals HUF 339.960bn - HUF 10bn more than originally
planned.

     Minister of Finance Laszlo Bekesi told MPs that
without the measures included in the supplementary
budget, the budget deficit would have exceeded HUF 400bn
and the deficit in the current account would have
exceeded USD 4bn.

     Of the HUF 340bn approved deficit, HUF 290bn may be
covered from the net increase in domestic savings,
meaning at least USD 500m will have to be taken out in
external loans, Bekesi said.

     Under the approved bill, the preferential VAT rate
will change to 12pc next January, from the current 10pc,
but telecommunication services will now come under the
25pc VAT rate.
     Consumption tax will grow by an average 15pc, but by
20pc on fuels. The consumption tax of petrol-run vehicles
with 1.6 litter engines and above changes to 22pc (the
average rate is 12pc). Support for the Agricultural
Intervention Fund will grow from HUF 10bn to HUF 11bn.

     Total support for separated state funds will drop by
HUF 10bn.

     The HUF 340bn deficit exceeds the original budget
figure by HUF 10bn and by HUF 8bn the figure appearing in
the supplementary budget bill submitted by the
government.

     HUF 8bn originally planned to be withdrawn from the
EXPO fund will only become central budget revenue once
Parliament formally approves the government proposal to
cancel EXPO.


Finance Minister Meets IMF Delegation


     Budapest, October 19 (MTI) - HUNGARIAN Finance
Minister Laszlo Bekesi today met a delegation of the
International Monetary Fund (IMF), which is holding talks
in Budapest under the leadership of Desmond Lachman,
counselor of the IMF's European department.

     The talks focused on the Finance Ministry's
proposals for the government's economic policy objectives
and for next year's budget.

     The delegation was informed about progress in the
elaboration of the Hungarian government's three-year
economic program.

Minorities to Elect Self-Governing Bodies in 605
Localities


     Budapest, October 19 (MTI) - NATIONAL minorities in
Hungary will elect 787 self-governing bodies in 605
localities on December 11, simultaneously with the
municipal elections, Interior Ministry officials told a
news conference in Budapest today.

     Hungary's law on the rights of national and ethnic
minorities recognizes 13 nationalities. Of them, only the
Ukrainians have failed to show a desire to take part in
such an election anywhere, Zoltan Toth, head of the
National Electoral Office, said.

     Gypsies will elect self-governing bodies in 518
localities, Germans in 129, Croats in 53, Slovaks in 36,
Serbs in 17, Romanians in 11, Armenians in 10, Slovenes
in six, Greeks in four, and Bulgarians, Poles and
Ruthless in one each.
     The local electoral committees will examine the
legality of nominations by October 25, and then make a
decision about whether the elections can be held.

     In 1990, Hungary had about 10.3 million inhabitants.
Of them, over half a million were Gypsies, 220,000
Germans, 100-110,000 Slovaks, 70-80,000 Croats, 25-30,000
Romanians, 5,000 Serbs and 5,000 Slovenes.

     Csaba Tabajdi, Parliamentary State Secretary at the
Prime Minister's Office, said thatthe minorities have
played a much more active role than expected in the
initial phase of preparations for the elections.

     "Those who made so many belittling statements on the
first minority elections were mistaken. I am sure that
the elections will be successful," Janos Wolfart,
President of the National Office for National and Ethnic
Minorities, said.

Hungarian FM Meets NATO Secretary-General


     Brussels, October 19 (MTI) - HUNGARY and NATO will
probably sign an agreement on bilateral cooperation on
November 15, giving the all-clear to more concrete
day-to-daycooperation, Hungarian Foreign Minister, Laszlo
Kovacs told Hungarian journalists at NATOHeadquarters in
Brussels today.

     Previously, the minister held talks with Willy
Claes, the new NATO Secretary-General. The meeting was
the first Claes had had with a foreign politician since
taking office on Monday.

     Kovacs then met senior officials of the North
Atlantic Council.

     During his talks, the minister said that Hungary
attributed equal importance to all the three major
institutions of the Euro-Atlantic system, namely NATO,
the European Union and the Western European Union.
Accordingly, Hungary seeks to become full members of all
three of these institutions for integration, he said.

     Kovacs and Claes agreed that NATO should expand
cautiously, in order to prevent the emergence of another
dividing line between Eastern and Western Europe.
"Hungary sees the peace partnership scheme as an ideal
framework for building confidence between the East
Central European states and for helping Hungary to
integrate its defense system into NATO," Kovacs said.

     The minister emphasized Hungary's intention to
establish sound relations with its neighbours, and quoted
the secretary-general as saying that such ties can help
to stabilize the whole region and thus correspond with
the interests of the North Atlantic alliance.

     A NATO official who did not wish to be named, said
the minister's first official visit had made a very good
impression, and it was particularly reassuring that the
Hungarian government wanted to continue to pursue its
policy of integration.

     Since Hungary will host the CSCE summit in December,
Kovacs was asked for his opinion on the future of NATO
and the CSCE process. the above-mentioned NATO official
was encouraged by the fact that Hungary and NATO share
the view that NATO should not be put under the control of
other international organizations.

     "NATO is also very appreciative of the fact that
Hungary is the first organizer of a CSCE summit to invite
it as a full participant," the official added.

Hungarian FM Concludes Visit to Brussels


     Brussels, October 19 (MTI) - MEETING Hungarian
journalists tonight, Foreign Minister Laszlo Kovacs drew
a particularly positive balance of his two-day visit to
Brussels.

     Earlier today, the minister held talks with Klaus
Hansch, President of the European Parliament, and Henning
Christophersen, European Commission Vice-President in
charge of economic and financial affairs.

     Kovacs described it as significant that the leaders
of all Brussels-based international defense and
integration organizations had found time for talks with
him, giving the lie to fears that Hungary's new
socialist-liberal coalition would not be accepted as a
negotiating partner in the Western organizations.

     "I managed to clarify the Hungarian government"s
foreign policy priorities, including its long-term
commitment to simultaneous and full integration into all
Euro-Atlantic organizations," Kovacs said.

     As for his talks with Christophersen, the minister
said, "we considered what resources the Hungarian economy
would require in its preparations for full EU membership,
and how the Group of 12 could contribute. Christophersen
said the EU would duly examine Hungary's request for an
ECU 2 billion loan to finance restructuring, but its
final decision would certainly be influenced by the
outcome of the Essen summit."

     After concluding his program in Brussels, Kovacs
will leave for Paris on Thursday morning.

N  E  W  S  L  E  T  T  E  R

Republic of Hungary                 Budapest, 1394 . 423
Ministry of Foreign Affairs        Telephone:36(1)156-80

********************************************************

N  E  W  S  L  E  T  T  E  R

Republic of Hungary                 Budapest, 1394 . 423
Ministry of Foreign Affairs      Telephone:36(1)156-8000
Press Department                 Telefax: 36(1) 156-3801
516/1994.                     Budapest, October 21, 1994
Hungarian Press Review

     Budapest, October 20 (MTI) - THE comprehensive
legal regulation of secret service work would be
necessary as soon as possible, due to both
constitutional and practical considerations, according
to Chief Councillor Pal Matyas, cabinet chief of the
minister without portfolio in charge of civil secret
services, in an interview carried in today's national
daily "Nepszabadsag". He also said that he hopes
Parliament will approve the national security law
this year. Matyas detailed the importance of ensuring
higher than average civil servant salaries to secret
service officers.

     A whiff of scandal accompanied a change in
programming on Hungarian Television (MTV), which did not
air a film on the Treasury Assets Organization. The
leader of MTV's film department on Tuesday publicly and
firmly stated that the film would be aired on Tuesday
evening. However, leaders of the Organization allegedly
gave serious threats to MTV officials. (The Treasury
Assets Organization handles moveable and real estate
properties to be kept in long-term state ownership.)

     MTV vice-president Ferenc Szekely, in an interview
with "Nepszabadsag", said the film was not banned.
Certain leaders of the Treasury Assets Organization did
not see it or their interviews in the film in advance,
although they are entitled to do so, and MTV has no
money for potential court cases involving personality
rights violations.

     Petrol prices are to rise again from November,
according to an article in "Magyar H!rlap". The article
notes that the Hungarian Oil Company (MOL) is not in the
position to cover the extra expenditures which have
arisen from the increased consumption tax.

     Minorities in 605 out of Hungary's 3,200 towns and
villages have initiated the holding of direct minority
local government elections. According to information
from the Interior Ministry's election office leader,
carried by the daily "Magyar Nemzet"", a total of 788
minority local governments could be elected nationwide.

International Arms Reduction Observers in Hungary

     Budapest, October 20 (MTI) - UNDER the European
conventional arms reduction treaty, a Canadian-led group
of American, British, French, Dutch and Italian
controllers is visiting Hungary, the Defense Ministry
told MTI on Thursday.

     They are here to check the 48 T-55 tanks
decommissioned last month in Hadhazteglas (E Hungary),
while on October 25 they will examine the 42 M-120
mortars destroyed in Tapioszecso near Budapest.

Speaker of Hungarian Parliament Visits Slovenia

     Ljubljana, October 20 (MTI) - THE Speaker of the
Hungarian Parliament, Zoltan Gal, currently in Slovenia
leading a parliamentary delegation made up of
representatives of the six main Hungarian political
parties , spoke highly of the development of bilateral
relations at a press conference he held jointly with his
Slovenian counterpart, Jozef Skolc, in Ljubljana on
Thursday.

     Gal met President Milan Kucan and Prime Minister
Janez Drnovsek in the Slovenian capital on Wednesday.

     At Thursday's news conference, Skolc said that they
had discussed local self-administration, national
minorities, economic cooperation, questions relating to
developing the infrastructure in both countries , the
conflicts in former Yugoslavia, cooperation in
international organizations and European integration.

     Hungarian diplomats point out that no parliamentary
delegation of such a composition has traveled abroad
since the new Hungarian legislature was formed, which
indicates that both sides are satisfied with the state
of Hungarian-Slovenian relations. There are no major
disputes between the two countries, and the position of
ethnic minorities does not give cause for special
concern on either side. Hungarian-French Foreign
Ministerial Talks in Paris

     Paris, October 20 (MTI) - HUNGARIAN Prime Minister
Gyula Horn will visit Paris on December 13-14, and
French Foreign Minister Alain Juppe will attend the CSCE
summit in Budapest on December 5-6, probably in the
company of President Francois Mitterrand and
Prime Minister Edouard Balladur, Hungarian Foreign
Minister Laszlo Kovacs told Hungarian journalists in
Paris today.

     Earlier, Kovacs held talks with his French
counterpart. The talks, which touched upon all issues of
mutual concern, were described by Juppe as very cordial
and friendly.

     Kovacs quoted the French minister as saying, "the
fears that France does not support Hungary's efforts at
integration are completely unfounded. Paris provides no
less support for Hungary's attempts at integrating into
the European Union, than Bonn does."

     Kovacs added that the French minister considered
natural Hungary's wish that the East European countries
should not be admitted to the EU as a bloc and that
their applications should rather be judged in the light
of their achievements in economic and institutional
transformation.

     Kovacs informed Juppe on the recent efforts of the
Budapest government to settle disputes with neighbouring
countries. According to Kovacs, Juppe spoke positively
about the approach and achievements of Hungarian foreign
policy.

     Kovacs said that the Hungarian government was
prepared once again to recognize the inviolability of
borders in its basic treaties with Romania and Slovakia,
which are being elaborated.

     "It should be as natural for our neighbours to
accept that the basic treaties should include strict
rules for the enforcement of the rights of minorities,
as it is for us to accept that such treaties should
recognize the inviolability of borders," Kovacs said,
adding that, in principle, Hungary's neighbours would
also accept these rules.
     The minister quoted Juppe as saying that it was
essential to normalize Hungarian- Slovak and
Hungarian-Romanian relations to safeguard stability in
Central Europe. This is anyway in the interests of the
three countries concerned.

     After the talks, Kovacs laid a wreath on the
monument of Imre Nagy, prime minister during the 1956
revolution who was later executed, in Pere Lachaise
cemetery. The minister gave a lecture on Hungarian
foreign policy in the French Institute for International
Relations. His program in Paris will end with a
reception at the Hungarian Embassy, marking the
anniversary of the outbreak of the Hungarian revolution
on October 23, 1956.

Cabinet Meeting - Foreign Investments, Environment

     Budapest, October 20 (MTI) - IN its meeting on
Thursday , the Hungarian Cabinet resolved to conclude an
agreement with the Russian Federation on cooperation in
the agriculture and food industry sectors, Government
Spokeswoman Evelyn Forro told a news conference today.

     Minister of Industry and Trade, Laszlo Pal, said
the government would put before Parliament, for urgent
discussion, a draft amendment to the law on foreign
investments . The amendment affects contributions in
cash and kind by companies in full or partial foreign
ownership. In future, the laws pertaining to foreign
trade will also apply to contributions of a
non-financial nature and to supplementary services in
such companies, he said.

     The amendment also seeks to regulate the investment
of compensation coupons by foreigners. According to the
terms of the amendment, foreign nationals will only be
allowed to invest these coupons if they are the original
beneficiaries.

     The amendment provides further concessions for
foreign investors. For instance, it expands the scope of
contributions that can be made in Hungarian currency.

     Minister for Environmental Protection, Ferenc Baja,
said the government would present to Parliament, for
urgent discussion, a bill on environmental protection .
The bill satisfies the guidelines of the European Union,
and gives preference to preventive measures over passive
environmental protection. The bill declares that no
major investment project can be launched without a
preliminary study of the possible impact on the
environment. It regulates how the costs of environmental
protection should be shared between the government and
polluters of the environment. The bill also proposes
setting up a National Council for Environmental
Protection, which would widen social control over the
environment.

* * *
N  E  W  S  L  E  T  T  E  R

Republic of Hungary                 Budapest, 1394 . 423
Ministry of Foreign Affairs        Telephone:36(1)156-80

*****************************************************************
A tovabbterjesztest a New York-i szekhelyu Magyar Emberi Jogok
Alapitvany tamogatja.

           [*]   [*]  [*]   [*]  [*][*]    [*][*][*]
           [*]   [*]  [*]   [*]  [*]  [*]  [*]
           [*][*][*]  [*][*][*]  [*][*]    [*][*] 
           [*]   [*]  [*]   [*]  [*]  [*]  [*]    
           [*]   [*]  [*]   [*]  [*]   [*] [*]

Reposting is supported by Hungarian Human Rights Foundation News
and Information Service.
*****************************************************************



N  E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs     Telephone:36(1)156-8000
Press Department                Telefax: 36(1) 156-3801
517/1994.                    Budapest, October 24, 1994

Hungarian Press Review


     Budapest, October 21 (MTI) - THE smaller government
coalition partner, the Alliance of Free Democrats (AFD)
is to hold a general assembly to re-elect its officials
over the weekend. Party Chairman Ivan Peto, the only
candidate for the post from the leadership to be
re-elected, gave an interview to the daily "Magyar
Nemzet" and said that irrespective of the new executive
body's composition, the character of the party will not
change. There are 15 candidates for the
10 posts in the executive body.

     Peto also discussed the difficulties of coalition
government, and said: "The HSP is a pyramid-like
structure, in which the personal decisions of Chairman
Gyula Horn are determining in many respects. Until he
forms an opinion in certain matters, or until he gives
the final word,there can be partial agreements within
the coalition, but the matter cannot be considered as
closed."

     In an interview with the daily "Nepszabadsag", Peto
acknowledges the coalition parties are also responsible
for the political debate that has come about in
Parliament about the incompatibility law under
preparation, and the package of local government laws.

     Minister of Finance Laszlo Bekesi termed charges
that he is financially interested in the dealings of an
American Hungarian in Hungary as suspicious, and
therefore a trumped-up attack by groups excluded from
privatization. In an interview with "Nepszabadsag",
Bekesi calls it a blatant lie and denies the suspicions
voiced by the editor-in-chief of the scandal weekly
"Super Pszt'", whereby an American citizen with a
previous prison conviction for economic crimes, Gyorgy
Bodnar, was granted a permit to open a casino in view of
his friendship with the Minister of Finance.

     Alliance of Free Democrats MP Peter Hack, Chairman
of Parliament's ConstitutionalCommittee, said in an
interview with "Magyar Nemzet" that Parliament should
not decide aboutstaging the World Expo until the results
of the referendum are in.

     All modern minority policies should be based on the
fact that those living here cannot in any respect have
more rights than those living in minority today, but who
wish to live here. "One Hungarian cannot be reduced
against another to have only one-third the living
standard," according to economist Sandor Kopatsy, in an
interview carried in the daily "Magyar H!rlap".

Foreign Minister Discusses Foreign Policy Goals in Paris


     Paris, October 21 (MTI) - "CENTRAL European
stability basically depends on three main factors-
whether we are able to ease the tensions between the
various ethnic groups and create confidence between the
states of the region, whether political and economic
integration will be extended from the West to include
the East, and whether we are able to adjust the CSCE
process to the new European situation," Hungarian
Foreign Minister, Laszlo Kovacs, said at the press
conference he gave in Paris on Friday.

     Kovacs said that in the light of the above
analysis, the Hungarian government has set three foreign
policy goals: to adapt Hungary to the Euroatlantic
integration processes, that is to become a member of the
European Union, NATO and the Western European Union; to
strive for settled relations with its neighbours; and to
support the Hungarian minorities in the neighbouring
countries.

     These three goals form a unified whole, and none of
them can be considered more important than the others.
This implies a change in the government's way of
thinking and approach as compared to the previous
government, Kovacs said.

EIB Grants ECU 500m to Hungary - Press Conference


     Budapest, October 21 (MTI) - HUNGARY will receive
ECU 500 million from the European Investment Bank (EIB),
the financial institute of the European Union, over the
next three years. An agreement to this effect was signed
by EIB Vice-President, Wolfgang Roth and Hungarian
Finance Minister, Laszlo Bekesi at the Ministry of
Finance in Budapest, on Friday morning.

     Following the signing of the agreement its terms
were outlined to journalists jointly by Laszlo Akar,
parliamentary State Secretary at the Finance Ministry,
and Roth.

     The ECU 500 million will fund two major development
projects. ECU 150 million will be
spent on telecommunications and ECU 80 million will be
spent by local authorities on
developing the infrastructure.

     The Budapest City Council may receive money for the
future development of the Budapest underground system,
and the rest of the EIB loan would probably finance
improvements in rail links between Hungary and
neighbouring countries.

     Roth stressed the main purpose of the EIB loan was
to help Hungary's entry into the European Union.

No Immediate Agreement Expected with IMF


     Budapest, October 21, 1994 (MTI-ECONEWS) - THE IMF
is ready to play its role in Hungary's transition to a
market economy through advice and consultation, as well
as with credit facilities, provided that an agreement is
reached with the government, Michel Camdessus, managing
director of the IMF, told the press on Friday.

     In coming months further IMF missions are expected
to assist the Hungarian government in fine-tuning the
1995 budget bill and in drawing up a three-year economic
program, Camdessus said, suggesting that no imminent
agreement should be expected on the
subject.

     A one-year stand-by credit facility seems likely to
be agreed on in the near future, though a three-year
extended fund facility under consideration requires
further detailed talks on medium-term structural
reconstruction, he added.

     Notwithstanding the fact that Hungary faces no
difficulties in debt-servicing, a stand-by credit
agreement may still be useful for contingency needs, and
to raise the confidence of the international financial
community, Camdessus said.

     During his one-day visit, the IMF managing director
agreed with Hungarian government officials, Prime
Minister Gyula Horn and Minister of Finance Laszlo
Bekesi on the diagnosis of Hungary's current economic
situation. Camdessus was encouraged by the Hungarian
tripartite approach involving employee and employer
representatives in the means of tackling the most urgent
problems.

     Camdessus issued a warning concerning Hungary's
high current account deficit, and the increasing
international debts and budget deficit. Cuts in public
spending will have to be an overriding objective for
next year and consolidation in the social security
system needs immediate measures. Social security
spending has to match available resources and the two
funds" resources must be spent more efficiently, he
cautioned.

     The IMF managing director also called for
rationalization of public administration with special
emphasis on civil servants" pay, which must not increase
faster than the productivity of the general economy.
     Camdessus put special stress on the competitivity
of Hungarian products on international markets, which
has been declining in recent years. An improvement is
essential to produce a positive effect on unemployment
figures, he said.

     In addition, he stressed that the country's
economic adjustment has to be approached from the
viewpoint of a continuous process, and not as a static
snapshot.


Foreign Ministry Releases Communique


     Budapest, October 21 (MTI) - THE FOREIGN Ministry
released a communique to MTI today giving a description
of a recent attack on the consul's flat in the Hungarian
embassy in Teheran. The communique said: unidentified
perpetrator(s) broke into the flat of the consul of
the Hungarian embassy in Teheran in the evening hours on
October 19. The consul's flat was turned upside down,
and some personal effects were misappropriated.

     The Hungarian embassy in Teheran subsequently
contacted the relevant Iranian police station, and told
the foreign ministry of the receiving country in a note,
asking for an investigation into the circumstances of
the matter.

     As an assault was committed against trade
counselor-general Jozsef Nagy on September 27 in which
his wife died, and a robbery was committed against the
office manager of the Hungarian embassy on September 29
- both cases still being investigated by Iranian and
Hungarian authorities - and on the last occasion the
break-in into the consul's flat seriously disrupted the
normal functioning of the Hungarian embassy in Teheran,
the deputy state secretary, competent in territorial
matters, at the Hungarian Foreign Ministry, Friday
summoned the Iranian ambassador stationed in Budapest.

     The deputy state secretary presented a note to the
ambassador in which the Hungarian party expressed its
profound concern over the latest incidents affecting the
staff members at the embassy in Teheran, and asked the
Iranian party to guarantee the personal security and the
protection of the flats of all Hungarian employees
working in Teheran in line with the provisions of the
1961 Vienna Treaty on Diplomatic Relations.

     The Foreign Ministry of the Republic of Hungary
informed the UN competent body about the acts committed
against the staff members of the Hungarian mission in
Teheran under the 1973 New York Convention on the
greater protection of diplomats.


Hungary Commemorates 1956 Revolt - Goncz


     Budapest, October 23 (MTI) - A FESTIVE concert was
given in the Hungarian State Opera in commemoration of
the outbreak of the Hungarian revolution and freedom
fight on October 23, 1956 and the proclamation of the
Republic of Hungary in 1989.

     Seated in the auditorium were noted personalities
of Hungarian public and political life and high-ranking
diplomats.

     After the sounds of the national anthem, the State
Concert Orchestra played the Egmont Overture, which was
frequently heard on Hungarian radio in 1956.

     Following, President Arpad Goncz gave a festive
speech. Goncz himself spent several years in prison
after the revolution for his part in it as a writer.

     "The first law which I signed as president of the
republic recorded the memory of 1956. I was happy to
have lived up to that day and that I was able to
sanction the law by my signature. I was happy but not
completely. The name of Imre Nagy (the martyred prime
minister of the revolution who was executed in 1958),
was left out from its text in the lastminute. A name,
which his death and his uncompromising loyalty to the
nation have indelibly carved into the history of the
revolution and our country.

     "Let us be honest: we have succeeded in cooling the
revolution and falsifying what some people or others
wanted to turn to their advantage. Is there anything
left from 1956, which was and, we should admit, is still
so dear to us. Or is it just a legend? Or only a
skeleton of it, which is better to completely forget? I
think, my friends, we have no right to do so. What is
more, we would not even be able to do that," the
president said.


N  E  W  S L  E  T  T  E  R

Republic of Hungary                 Budapest, 1394 . 423
Ministry of Foreign Affairs        Telephone:36(1)156-80

********************************************************

N  E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs     Telephone:36(1)156-8000
Press Department                Telefax: 36(1) 156-3801
518/1994.                    Budapest, October 25, 1994
Hungarian Press Review


     Budapest, October 24 (MTI) - THE new Brazilian
President, Fernando Henrique Cardoso, who gave an
interview to the national daily "Nepszabadsag" in
Budapest, sees many points of similarity between the
economic transformation that has taken place in Brazil
and that taking place in Central European countries.

     At the same time, the President sees a major
difference in the fact that the democratic transition
began in Brazil in 1985, and the country has now emerged
from recession.

* *

     The Chairman of the Alliance of Free Democrats
(AFD), Ivan Peto, who heads the party's parliamentary
group, believes the coalition would lose its importance
for the AFD if the demands set down in 12 points by the
AFD delegate assembly this weekend are not realized.
(These include that the government should work out its
economic program for the entire parliamentary cycle and
should begin to reform the state budget and the major
income redistribution systems.)

     In an interview with Monday's "ij Magyarorszag",
the re-elected AFD Chairman stated that the party would
break with the Hungarian Socialist Party (HSP) only if
they believed that the government program couldn't be
implemented because the coalition wasn't working.

* *

     A parliamentary select committee should be set up
to control privatization, according to the Deputy
Chairman of Parliament's Economic Committee, Tamas
Suchman (HSP), in an interview carried in the daily
"Magyar Nemzet".

     If his proposal is accepted, every parliamentary
committee would delegate three members to the select
committee, thus the privatization process could be
brought under full legislative control. Suchman believes
the new law on privatization can be submitted to
Parliament early next year.

* *

     Budapest, October 24 (MTI) - THOSE who retired
recently have gotten a worse deal than those who retired
several years ago, according to the President of the
Pension Administration, Tamas Meszaros, whose interview
is carried in the daily "Nepszabadsag".

     The average monthly pension for those who retired
in 1993 was HUF 11,500 (USD 100-110), while the average
pension today is a monthly HUF 12,600. The pension
authority now plans changes in the way pensions are
calculated, but this would, according to their
calculations, mean an additional burden of HUF 5 billion
over two years for the Pension Administration.

     "Wages should be increased at least parallel with
the rate of inflation. This is our basic demand," the
executive vice-president of the Engine Drivers Trade
Union, Janos Borsik, says in an interview in Monday's
"Nepszabadsag". Neither a pay freeze nor a rise slightly
above 10 per cent was acceptable, he said. He added that
if the talks failed to yield results, the trade union
would be forced as a last resort to use the strike
weapon.

     Also in the same interview, Mrs. I. Szollosi,
General Secretary of the Teachers' Trade Union, sharply
criticizes the government and Minister of Culture and
Education Gabor Fodor for not fulfilling their promises.
The trade union will meet on October 29, and decide on
how to react to the government measures.


Conference on Protection of Ethnic Groups


     Budapest, October 24 (MTI) - "WHETHER liked or not
by some states and international organizations, autonomy
is unavoidable in the practice of minority rights,"
Csaba Tabajdi said opening an international conference
on the protection of ethnic groups, in Budapest on
Monday. Tabajdi, parliamentary state secretary in charge
of minority affairs at the Prime Minister's Office,
spoke at a forum held by the Federal Union of European
Ethnic Groups (FUEV). FUEV, which represents 30
countries and 65 ethnic groups of Europe, launched this
conference in line with the Budapest Review Conference
of the Conference on Security and Cooperation in Europe.
The FUEV's goal is to generate peaceful solutions to
ethnic problems.

     Tabajdi stressed that the protection of ethnic
groups has become an element of international security.
The issue cannot be evaded or dissolved in the general
category of human rights.

     Tabajdi pointed to the international community's
passive attitude, with sad results like Yugoslavia.
Instead of disregarding the problems of minorities,
international organizations should take preventative
steps, Tabajdi said. One-sided solutions guaranteeing
current borders but not detailing rights of minorities
had not helped. The misconception that minorities are an
"ab ovo" hotbed of conflicts is another danger - on the
contrary, conflicts stem from negligence in guaranteeing
their rights.

     Attenders at the conference - with representatives
of minorities living in Hungary and of Hungarians living
beyond the borders - will discuss a draft plan by FUEV
on protecting minority rights, which Tabajdi described
as the best existing document of its kind in Europe.
There will also be lectures on minority rights in
practice, based on Catalan, Southern Tyrolese, and
Belgian examples.


Former Hungarian Ambassador to UN on Future of United
Nations



     Budapest, October 24 (MTI) - THE United Nations,
like other major international organizations, NATO or
CSCE, has been seeking its identity since the changes at
the end of the eighties, Andre Erdos, former Hungarian
ambassador to the UN and current deputy state secretary
at the Foreign Affairs Ministry, said at a session of
the Hungarian Society of the UN, held in Budapest on
Monday.

     According to Erdos, the UN can only achieve what
the governments of its member states are willing to
support. The most spectacular trauma hit the world
organization when its inability to settle the conflict
in Yugoslavia came to light. Disillusionment was further
aggravated by failures in Somalia, Rwanda, and Haiti.
The organization needs to be totally reformed. Erdos
said UN Secretary-General Boutros Ghali had prepared a
report considering the future of the UN. Erdos liked
Boutros-Ghali's proposal on modifying Article 50 of the
UN Charter. According to the proposal, states suffering
special economic problems carrying out any UN
preventative or enforcement measures, should have not
only the right to consult the Security Council, but also
real chances to get compensation for their related
losses.



Horn Has Talks with Tokes about Hungarians in Romania


     Budapest, October 24 (MTI) - HUNGARIAN Prime
Minister Gyula Horn met Calvinist Bishop of Oradea
Laszlo Tokes at Parliament on Monday. They cleared up
earlier misunderstandings, they said.

     Horn said he had clarified that the government
intends to continue supporting Hungarians beyond the
borders.

     Tokes felt everything depends on deeds, and deeds
will prove what minority policy this government has; on
the 100th day of Horn's premiership, it is unfair to say
that Hungary's minority policy has worsened, Tokes said.
Funding to cross-border Hungarian associations has been
temporarily cut, but the prime minister promised at the
meeting to restore earlier conditions, he explained.

     Horn said he had held out the prospect that the
Hungarian cabinet would continue negotiations with the
Hungarian Democratic Union of Romania, to design a
Hungarian-Romanian basic treaty that would meet the
interests of Transylvania's Hungarian community.

     Judging by former experience, Romania's attitude is
not likely to change by signing the treaty, Tokes said.
He emphasized: he had been assured by the meeting that
in the prime minister's view, the signing of the basic
treaty is the means for achieving certain goals, not the
goal itself. A pre-election statement of Horn had
ungrounded conciliatory spirit towards Romania's
prevailing party, which led to misunderstandings, Tokes
said. But today's talks clarified that Hungary does not
intend to be overly soft.


N  E  W  S  L  E T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs       Telephone:36(1)156-80

*******************************************************

N  E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs     Telephone:36(1)156-8000
Press Department                Telefax: 36(1) 156-3801
519/1994.                    Budapest, October 26, 1994

Hungarian Press Review

     Budapest, October 25 (MTI) - HUNGARIAN President
Arpad Goncz has forwarded a bill to the government on
amending the Penal Code, writes an article in Tuesday's
national daily "Nepszabadsag".

     The president initiates that atrocities and
organization against national, ethnic, racial or
religious groups be termed as crimes. According to
Goncz, Hungarian law does not handle the phenomena
manifest in open attacks against certain national,
ethnic, racial or religious groups by certain extreme
political groups in a suitable manner, as compared to
international laws.

     Minister of Justice Pal Vastagh, in an interview
with the daily, said discussion of the proposal is
expected to be included only in the 1995 law-making
program of the government.

     At present, the Hungarian Socialist Party (HSP) has
37,000, the Alliance of Free Democrats (AFD) 30,000
members, officials of the two parties told the daily
"Kur!r", in answer to a question on whether they pay
attention to changes in the level of their support, or
not. HSP press chief Andras Bard and AFD executive in
charge of media affairs Balint Magyar alike said that
their parties would immediately begin investigations
were their support to significantly decline from one day
to the next.

     "We must represent a policy based on the richest
system of ideas in the poorest party," the Chairman of
the Social Democratic Party of Hungary (SDPH), Laszlo
Kapolyi, said in an interview with the daily "Nepszava".
However, he denied that the party wishes to overcome
this difficult period through integration into the
Hungarian Socialist Party.

* * *

     Budapest, October 25 (MTI) - "A PARTY has a useful
past and a promising future if it pays attention to the
interests of the country, rather than primarily to
itself," MP Gyorgy Szabad of the opposition Hungarian
Democratic Forum (HDF), who was Speaker of Parliament in
the last four-year parliamentary cycle, notes in an
interview with the daily "ij Magyarorszag".

     Analyzing his party's political guideline, Szabad
notes that the HDF should, accordingly, mainly ask
itself how well it was able to manage the country in the
last four years while it was in office.

     "Everything is used in the war against us, with the
exception of the navy and nuclear weapons," General
Ratko Mladic, commander-in-chief of the Bosnian Serb
Army, notes in an interview carried in the daily "Magyar
H!rlap".

     Discussing the Bosnian war, General Mladic said
that those responsible for the war are those who started
it, but war did not break out because of the Serbs,
rather the Slovenes, the Croats and the Muslims.

End of IMF Talks


     Budapest, October 25 (MTI) - TALKS between Hungary
and the International Monetary Fund (IMF) have ended in
Budapest.

     According to information from the Hungarian
Ministry of Finance, Minister of Finance, Laszlo Bekesi
again held talks with the IMF delegation, led by
consultant to the European department, Desmond Lachman,
on Monday.

     Both sides evaluated the Budapest talks, in
particular the October 20 meeting between Hungarian
Prime Minister, Gyula Horn and IMF director-general,
Michel Camdessus.

     They agreed that their talks about the Hungarian
government"s economic policy for 1995, and issues
related to the country's 1995 budget, had been
constructive. The talks will continue in the future, in
the hope that a common position can be reached with
regard to the most important issues, thereby creating
the conditions necessary for signing a new IMF
agreement.

     Both sides also agreed to open consultations about
the Hungarian government's three-year economic program.

Hungarian Foreign Minister to Attend EU's Luxembourg
Meeting, Foreign Affairs Spokesman Says


     Budapest, October 25 (MTI) - AT the Luxembourg
meeting of the Foreign Ministers of the member states of
the European Union and of the Central European associate
member states , to be held at the end of October,
Hungary will be represented by Foreign Minister Laszlo
Kovacs. The meeting has been initiated by Germany, the
next holder of the EU's rotating presidency, foreign
affairs spokesman Gabor Szentivanyi announced at his
regular Tuesday press conference.
     At the Luxembourg conference, the foreign ministers
will discuss strategic plans for preparing the Central
European states, currently associate members of the EU,
for full admission. Decisions on this matter, however,
are only expected to be made at the conference to be
held for heads of states and governments in Essen, in
December. The foreign ministers will also address
various questions of foreign and security policy."
Hungary regards the Luxembourg conference as a major
event, and it is an opportunity for us to give a
detailed explanation of the Hungarian position on
integration," the spokesman said.

     Other senior officials at the Hungarian Ministry of
Foreign Affairs also have tight schedules. Parliamentary
State Secretary Istvan Szent-Ivanyi is to visit the
capital of Moldova to inaugurate the new Hungarian
Embassy building. He will also attend a reception
organized to commemorate the 1956 Hungarian revolution.
Szent-Ivanyi will also confer with Moldovan politicians
on the development of bilateral links and on the basic
treaty.

     Administrative State Secretary at the ministry
Ferenc Somogyi is to visit Canada and the United States
from October 26 to November 7. He will attend a session
of the United Nations General Assembly, and later hold
talks in Washington.

Riccardo Jagmetti's Talks in Parliament

     Budapest, October 25 (MTI) - THE  Swiss delegation
headed by RICCARDO Jagmetti, president of the Council of
States in the Swiss Federal Assembly, had talks in the
Hungarian Parliament on Tuesday. They discussed
Hungarian-Swiss political links with Prime Minister
Gyula Horn, and the two countries' national and
international agricultural policies with Minister of
Agriculture, Laszlo Lakos.

     During talks with the prime minister, Jagmetti said
the development of relations with the European Union
were of prime importance for both countries.

     Jagmetti said his talks with Lakos were mainly
about the problems arising from implementing the GATT
agreements, and the accords between Hungary and EFTA.
The rise in customs tariffs that Hungary plans for the
near future was not covered in the talks. But the
parties exchanged views on the replacement of the export
quota system with customs regulations in conformity with
GATT. This is a task faced by both Switzerland and
Hungary. Jagmetti said he had received interesting
information about privatization in the agricultural
sector in Hungary and about concrete problems in
agriculture, especially from the point of view of
environmental protection.

N  E  W  S  L  E  T  T  E  R

Republic of Hungary                 Budapest, 1394 . 423
Ministry of Foreign Affairs        Telephone:36(1)156-80

*********************************************************

N  E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs     Telephone:36(1)156-8000
Press Department                Telefax: 36(1) 156-3801
520/1994.                    Budapest, October 27, 1994

Hungarian Press Review


     Budapest, October 26 (MTI) - ROMANIAN Defense
Minister Gheorghe Tinca discussed Hungarian-Romanian
military relations, considered to be exemplary both in
Budapest and in Bucharest, in an interview with the daily
"Nepszabadsag".

     Tinca said the explanation for the good relation is
that armies of both countries refrain from politics, and
both countries participate in the NATO Peace Partnership
system.

     "We cannot be members of the Atlantic Treaty if
unresolved problems exist between us," he said.

     As regards the "Open Skies" agreement between
Hungary and Romania, Tinca stressed this
confidence-building agreement serves as a model in Europe
today.

     The daily "Magyar Nemzet" asked senior party
officials about the first government's first 100 days in
office. While the opposition parties - the Hungarian
Democratic Forum, the Christian Democratic People's
Party, the Independent Smallholders Party and the
Federation of Young Democrats - complain about the
government's poor performance, its idleness, hastiness,
and lack of concept, the parliamentary group leader of
the Hungarian Socialist Party, Imre Szekeres, termed the
result achieved so far to be good, and the Alliance of
Free Democrats" Minister of the Interior, Gabor Kuncze,
said there is no constitutional dictatorship in Hungary.

     The welfare concepts of the opposition Christian
Democratic People's Party (CDPP) are closest to those of
the senior government party, the Hungarian Socialist
Party, MP Zoltan K. Kovacs of the CDPP says in an
interview with the daily "Magyar Nemzet". Kovacs adds
that, in his view, the CDPP is not a conservative party.

* * *

     Budapest, October 26 (MTI) - MINISTER of Justice Pal
Vastagh said the government would submit the drafts of
several major laws to Parliament by the end of the year.
They include bills on national security, environmental
protection, consumer protection and ministerial
responsibility.

     In an interview with "Nepszabadsag", Vastagh notes:
"There is continuity in law- making, the government
coalition is working on bills that accord to a
constitutional state and the criteria of a market
economy.

     "Our political relations are of a model value,
Slovenia is a good neighbour and a promising partner," MP
Andras Kelemen of the Hungarian Democratic Forum said in
an interview with the daily "ij Magyarorszag". Kelemen
recently visited Slovenia as a member of a parliamentary
delegation.

     "The agreement on ensuring special rights to the
national minorities stands out from among our cooperation
agreements. A basic agreement is in force between our
countries, however, our bilateral economic relations lag
far behind the possibilities," Kelemen adds.

Expo Referendum Will Divide the Country, President Says


     Budapest, October 26 (MTI) - "I AM not happy about
the possible referendum on the 1996 Budapest World Expo,
but it must be staged if the law says so," Hungarian
President Arpad Goncz said on Wednesday in Ajka (W
Hungary), on the 35th anniversary of Ajka getting
city ranking.

     Goncz met city leaders and public figures in City
Hall, and answered their questions. As regards his views
about the referendum on the Expo, he said this will again
divide the country, and can only decide on whether to
hold it or not, but not about winning over more foreign
investors, or the more-advanced stage of preparations.

     Goncz felt a world exhibition could propel a
successful economy like a missile, but could burden one
struggling with problems.

     The president said that the next two years could be
vital: further falls in living standards of wage earners
should be halted, as well as the country splitting into
two parts - an ever more impoverished Trans-Tisza region,
and a prospering Trans-Danubia. Opening up to Eastern
markets is vital to restore the economy of the eastern
part of the country.

Stability a Top Priority Next Year, Finance Minister Says


     Budapest, October 26 (MTI) - HUNGARY'S GDP is
expected to grow by 2-3 per cent this year, but negative
economic trends from the beginning of the year will
continue, with the current account deficit likely to be
USD 3.5 billion at the end of the year. However,
two-thirds of factors behind growth, such as increasing
consumption and public overspending, are unsuitable as a
basis for further growth next year, Finance Minister
Laszlo Bekesi told a conference, "Economic Realities", in
Budapest on Wednesday.

     There is no doubt, Bekesi said, that positive
changes have also begun in recent years. However, the
budget deficit is a heavy burden, of which only HUF
250-260 billion can be financed from personal savings.

     Bekesi mentioned stability as priority for next
year. Net national debts must not grow and public
finances should be arranged so that rising expenditure is
met by rising current revenue.

     The Hungarian government will discuss the budget
draft for next year at its Thursday meeting.

     The government press office told MTI that according
to the proposal, the GFS budget deficit is planned to
reach HUF 282.7 billion in 1995. In addition, HUF 160
billion domestic state debts will have to be repaid. The
deficit of the general government is planned to stand at
around 5 per cent of the GDP in 1995. Gross wages are
planned to grow by 10-12 per cent, while personal
consumption will drop by 2-4 per cent.

     The government will discuss privatization strategy
on Thursday, but the draft of the planned new
privatization law will only be discussed at next week's
government meeting.

     The government will also discuss the amendment of
tax laws. The personal income tax bracket table is not
planned to change in 1995. The minimum tax for businesses
will cease to exist from next year and it will be
replaced by a general tax, which those businesses may pay
whose turnover did not reach HUF 3 million in the
previous year. The tax base of these taxpayers will be 20
per cent of the turnover in the majority of professions.
Home builders may expect VAT refunds or significant
social subsidies in 1995. (ECONEWS)

Peace Partnership - Hungary's Draft Program


     Budapest, October 26 (MTI) - THE Hungarian
government is to officially present Hungary's 1995 plans
for cooperation in the Partnership for Peace program, in
Brussels at the beginning of next month, Defense
Minister, Gyorgy Keleti announced to the ambassadors of
European Union member states accredited to Hungary, when
he received them in his office today.

     At the meeting - which had been initiated by the
British to exchange information and views - Keleti said
that a joint Hungarian-British-German military exercise
is planned for next year in Hungary, and Hungarian
soldiers are to participate in joint maneuvers in Italy.

     The Defense Minister briefed the diplomats on
planned reforms in the Hungarian Army.

     He confirmed Hungary's strong desire to join the
Euro-Atlantic organizations working for integration, such
as NATO and the European Union.

     He gave an account of the steps taken by Hungary to
this end. For instance, Hungary had permitted NATO Awacs
surveillance aircraft to patrol in Hungary's air-space,
and a modern electronic system used by NATO member states
has been installed in the aircraft of the Hungarian Air
Force.

     After the meeting, German ambassador to Budapest
Otto-Raban Heineken told the minister that he and his
colleagues were aware of the difficulties arising from
the transformation of the Hungarian Armed Forces. Not
only Hungary, but also NATO, has to adjust to the new
situation, he added.

     Asked about the possible date of Hungary's admission
to NATO, the German ambassador gave a diplomatic answer
saying, he could see some chance of Hungary being
admitted before the year 2000.

Speaker of Parliament Meets Ambassadors from Arab
Countries


     Budapest, October 26 (MTI) - THE Speaker of the
Hungarian Parliament, Zoltan Gal, met ambassadors from
the Arab countries, in Parliament on Wednesday.

     Gal described the present situation in Hungary with
regard to its transformation into a social market economy
and outlined the priorities of the country's foreign
policy.

     He told the diplomats that Hungary, although wishing
to integrate into Europe, is open to all regions of the
world.

     Hungary considers it important to further develop
its traditionally strong economic ties with the Arab
world.

     Cooperation between Hungary and these countries
could be promoted by intensifying inter parliamentary
relations, by closer cooperation between
inter-parliamentary committees, and more frequent
top-level and committee-level visits.

     Hungary's interests also call for the establishment
of a durable and just peace in the Arab region.

     The Moroccan Ambassador to Budapest, Abderrahman El
Kouhen, speaking on behalf of the diplomats present,
stressed that they attach great importance to
strengthening ties with Hungary's Parliament, and welcome
Hungary's readiness to cooperate with the Arab world.

     The diplomats hope cooperation will be fruitful not
only in the economic field, but also in the fields of
trade, culture and the sciences, the ambassador said.

Hungary Must Stabilize its Economy, Horn Says


     Budapest, October 26 (MTI) - ALL sides in the
Interest Coordination Council, i.e. the representatives
of employees, employers and the government, agree that
Hungary's economy is in a bad state and needs to be
stabilized, Prime Minister Gyula Horn noted at
Wednesday's session of the council. But opinions differ
on how to achieve this goal, he added.

     "We must be clear that our task is not to choose
between stabilization or economic growth, but rather we
must create the conditions necessary for long-term
economic growth. Next year could be a turning-point in
this respect," Horn said.

     " If Hungary becomes increasingly indebted, "he
continued," the sources of finance needed to repay its
debts will dry up , and foreign financial aid needed to
transform its economic structure will be stopped."

     Hungary had asked the European Union to provide a
major loan to help it to transform its economic structure
, the prime minister said.

     The European Union recognizes Hungary's
achievements, but stipulates as do other international
monetary institutions, that a basic condition for further
support is that there should be financial and economic
stability in Hungary .

     Finance Minister, Laszlo Bekesi pointed out: the
government wants to reduce private consumption by 2-4 per
cent and public consumption by 10 per cent in 1995, in
order to create a suitable base for a 5-pct increase in
investment and a 6-8 pct increase in exports.

     Budapest, October 26 (MTI) - IN the Finance
Minister's view, along with bringing the economy into
balance, a realistic goal is to preserve the present
level of GDP.

     Another prime goal is to cut the budget deficit to
5.5 per cent of GDP, and to reduce the current balance of
payments deficit to USD 2 billion from the present level
of USD 3.5 billion.

     The reform of the social services system cannot be
avoided any more, Bekesi said. The number of public
employees needs to be adjusted to the services they
provide, and costs should be cut, the Finance Minister
said.

     Neither the employers nor the employees questioned
the government"s economic goals in general but they did
not agree on the means that should be used to achieve
them.

     The employees' representatives said these goals can
be reached by other means than by decreasing real wages,
real incomes, consumption, and employment.

Ministry of Foreign Affairs        Telephone:36(1)156-80

********************************************************

N  E  W  S  L  E  T  T  E  R

Republic of Hungary                Budapest, 1394 . 423
Ministry of Foreign Affairs     Telephone:36(1)156-8000
Press Department                 Telefax: 36(1) 156-3801
521/1994.                     Budapest, October 28, 1994

Hungarian Press Review


     Budapest, October 27 (MTI) - ALL Hungarian national
dailies gave prominent coverage to the Israeli-Jordanian
peace treaty signed on Wednesday, and expressed
appreciation for the beneficial effect it could have on
the Middle East situation.

     In its editorial, "Magyar Hirlap" notes that
justification of the Israeli blueprint seems to be
proving true; that is an end to hostilities can be
reached through bilateral peace treaties, rather than
through a multilateral, or pan-Arab-Jewish dialogue.

     The number of registered refugees in Hungary from
the former Yugoslav republics is presently at 7,000, and
the number of unregistered refugees is not estimated to
be higher, according to state secretary of the Ministry
of the Interior Gabor Vilagosi in an interview with
"Magyar H!rlap".

     Some of the refugee camps are not in use today, for
instance, the Hajd#szoboszlo (E Hungary) camp, which is
scheduled to be shut down.

     "We are aware that Ukrainian crime organizations
have set up companies in Hungary," Ukrainian police
Lieutenant-General Vladimir Sirik notes in an interview
with the daily "Nepszava".

     The diplomat, who has worked as the interior
coordinator at the Ukrainian embassy in Budapest since
May, termed the issue of these companies as extremely
sensitive, while, at the same time, the majority of
Ukrainian interests are entirely legal.

     Sirik said the cooperation agreement signed between
the interior ministries of Ukraine and Hungary in 1992
is being successfully implemented. As an example,
policemen from Ny!regyhaza and Uzhgorod carried out
joint investigations this year in the case of a gang
that had sold stolen goods from Ukrainian break-ins in
Hungary. Also this year, a Ukrainian-Hungarian group was
discovered that had printed counterfeit forint banknotes
on the Ukrainian side of the border, and used these in
Hungary.


Bekesi Laszlo on Financial Trends in 1994 and 1995


     Budapest, October 27 (MTI-ECONEWS) - THE Hungarian
GDP is expected to grow by 2-3 per cent this year, with
the current account deficit estimated at USD 3.5 billion
by the end of 1994, Minister for Finance, Laszlo Bekesi,
said at a Wednesday conference entitled "Economic
Realities", arranged by Trainex Kft in Budapest.

     Without the supplementary budget just passed and
the August forint devaluation, the current account
deficit would have exceeded the above level, he added.

     Exports are expected to increase by 12-13 per cent.
Personal savings will finance only HUF 250-260 billion
of the 1994 budget deficit. Personal savings are
expected to reach HUF 290 billion at the end of this
year, thus excess government expenditure will result in
USD 800-900 million deterioration of the external
balances.

     Gross salaries will grow by 25-26 per cent, net
salaries by 27-28 per cent, against consumer price
inflation of 19-20 per cent by the end of this year.

     Bekesi emphasized that Hungary's net debts must not
grow next year, the increase of current revenues must
cover the increase of current expenditure.

     Total consumption is expected to decrease by 3-4
per cent in 1995, with a 2-pct decrease in personal
consumption, allowing investment to grow by 6 per cent
and exports by 6-8 per cent.

     Central budget expenditure in 1995 will grow by
only 10 per cent in nominal terms, which will result in
a 10 per cent real decrease, taking into account the
predicted 20 per cent inflation figure.

     Changes in the current system of sickness and
unemployment benefit and pension system, as well as the
distribution of family allowance, drug and education
subsidies, must begin next year, Bekesi said.

* * *

     Budapest, October 27 (MTI-ECONEWS) - SALARIES of
civil servants may only increase by 5-6 per cent next
year, with an exceptional 10 per cent increase in the
armed forces. The state must also enforce this maximum
5-6 per cent salary increase in majority state-
owned companies and banks.

     The current 36 per cent corporation tax rate may be
cut to 18pc or 20 per cent if the profit is reinvested,
with a 22 per cent rate if a dividend is paid. The
second version would support companies that invest in
crisis-stricken areas. Under a third version the
corporate tax would be cut only to 30 per cent, with as
many as 30 instances eligible for allowances.

     Personal tax burdens are to decrease for annual
incomes of less than HUF 320,000, but increase for those
who earn above this sum next year.

Peacekeeping Exercise - Colonel-General Deak


     The Hague (Netherlands), October 27 (MTI) - HUNGARY
plans to organize an international military exercise
next year jointly with the British and German supreme
commands, and with other countries also expected to
participate - this is one of the reasons why the
experience Hungary gained during the peace partnership
exercise for land forces that ended near Harskamp
(Netherlands) on Thursday is very useful,
Colonel-General and Chief of Staff Janos Deak told MTI.

     On the final day of the one-week peacekeeping
maneuver Deak visited several units and attended the
closing ceremony.

     "I wanted to learn about the process and atmosphere
of such exercises and I was very impressed by what I
saw," the Colonel-General said.

     Language problems that recurred during this recent
exercise in the Netherlands mean a serious challenge to
the Hungarian Army, primarily in its units of lower
rank, Deak said, adding "we are working intensively to
solve this problem". He mentioned as an example
Hungary's initiative for the establishment of a NATO
language school in Hungary, where Hungarian soldiers
could learn Western languages, and NATO officials could
attend courses on Eastern ones - for instance on
Russian.

Cabinet Meeting - Budget, OECD Committee, State Railways


     Budapest, October 27 (MTI) - IN its Thursday
meeting, the Hungarian government decided to present its
draft 1995 budget to Parliament on Monday, and discuss
it with employer and employee organizations, too,
Government Spokeswoman Evelyn Forro told reporters
today.

     The detailed figures contained in the draft budget
have not yet been made public. The spokeswoman only
disclosed that it envisaged a deficit, excluding debt
repayments, of HUF 282.7 billion, equal to 5.5 per cent
of gross domestic product.

     The government has set up Hungary's National OECD
Committee to coordinate talks with the OECD. The
committee is composed of delegates from the relevant
ministries and government bodies , the State Property
Agency and the State Holding Company. Its president
will be appointed by the Minister of Industry and Trade.

     In the government"s view, Hungary's admission to
the OECD would improve the country's foreign trade
relations, facilitate its access to foreign loans, and
help reduce the interest on some of its debts.

     The government approved draft proposals for
consolidating the finances and streamlining the
operations of the Hungarian State Railways (MAV) Rt.

     Kalman Kovacs, Parliamentary State Secretary of
Transport, Telecommunications and Water Management, said
that MAV's losses amounted to HUF 28 billion last year,
and were expected to reach HUF 40 billion this year. The
company has so far accumulated a debt of HUF 140
billion. The government proposes to take over half of
this debt , and the other half would be repaid using the
proceeds from the sale of MAV facilities.


"Hungary, Neighbours, Minorities" - Forum


     Budapest, October 27 (MTI) - "HUNGARY should
unambiguously declare that it has no desire to modify
borders, dispelling the suspicion that its commitment to
minority protection masks a secret intention to revise
borders," Csaba Tabajdi, Parliamentary State Secretary
at the Prime Minister's Office, said today.

     Giving a lecture entitled "Hungary, neighbours,
minorities" at a forum of the Friedrich Ebert Foundation
in Budapest, Tabajdi said, "four years ago there was not
yet any need for Hungary to conclude basic treaties
including a border clause with its neighbours. However,
due to the re-emergence of ideas suggesting the revision
of borders and nationalist radicalism associated with
the name of Istvan Csurka, even the West has started to
urge both sides to make concessions," he said.

     Tabajdi, however, blamed the West for not having a
deep enough awareness of minority issues in East Central
Europe. "In fact, it is the West which should exert
pressure on some of Hungary's neighbours so that
minority rights may be enforced," he said.

     It should be made clear that observance of minority
rights is a prerequisite for the much desired European
integration, he said.

     At present, Hungary earmarks 0.067 per cent of its
budget for supporting ethnic Hungarians abroad. In the
interwar period, that figure was as high as 2 per cent,
Tabajdi said.

N  E  W  S  L E  T  T  E  R

Republic of Hungary                 Budapest, 1394 . 423
Ministry of Foreign Affairs        Telephone:36(1)156-80

*****************************************************************
A tovabbterjesztest a New York-i szekhelyu Magyar Emberi Jogok
Alapitvany tamogatja.

           [*]   [*]  [*]   [*]  [*][*]    [*][*][*]
           [*]   [*]  [*]   [*]  [*]  [*]  [*]
           [*][*][*]  [*][*][*]  [*][*]    [*][*] 
           [*]   [*]  [*]   [*]  [*]  [*]  [*]    
           [*]   [*]  [*]   [*]  [*]   [*] [*]

Reposting is supported by Hungarian Human Rights Foundation News
and Information Service.
*****************************************************************



Serb Planes Launch New Strike U.N. Allows NATO To Bomb in Croatia

  JOHN POMFRET (WASHINGTON POST FOREIGN SERVICE)
  
  (C) 1994 THE WASHINGTON POST (LEGI-SLATE ARTICLE NO. 217078)


    ZAGREB, Croatia, Nov. 19 - Serb warplanes bombed an apartment block
filled with Muslim refugees in northwestern Bosnia today, in the second
straight day of air attacks launched from Croatian Serb territory despite
U.N. warnings that NATO airpower would be called to suppress the assaults.

            At least three Serb bombs blasted an area packed with Muslim
civilians in the Bihac pocket. One Serb fighter jet smashed into an apartment
building housing refugees, sparking a tremendous blaze that seriously burned
at least nine people. The Serb pilot was killed.
           The attack came as the U.N. Security Council met in New York and
voted unanimously to authorize NATO to attack Serb targets in Croatia,
including the airfield where the Serbs' aircraft are based. It was the first
time the council has sanctioned airstrikes on Serb forces or installations
inside Croatian territory - a move backed by the Croatian government.
    U.N. officials here vowed that NATO fighter-bombers would punish the
Serbs for violating Bosnia's "no-fly zone" and said specific targets were
being considered.
            The 10-minute attack today was the third Serb air raid on the
Muslim-held Bihac pocket since Nov. 9. It followed Friday's bombardment of
the U.N.-declared "safe area" around the town of Bihac in which two Serb Orao
fighter planes dropped napalm and cluster bombs near the headquarters of the
predominantly Muslim Bosnian army's 5th Corps.
   The latest airstrike, which also involved two Orao fighters, marks yet
another escalation in Europe's bloodiest conflict since World War II and
poses a further challenge to NATO's ability to enforce U.N. Security Council
resolutions on Bosnia.
            Although the airstrike was launched from Croatia, U.N. officials
blamed the attack on Bosnian Serb military commander Ratko Mladic. The
assault, they said, had all the earmarks of the high-risk strategy that
Mladic has employed to grab 70 percent of Bosnia in the former Yugoslav
republic's 31-month-old war.
    The officials also noted that Croatian Serb rebel forces, which occupy 27
percent of Croatia, are not known to possess a large number of fighter jets
and that Mladic stores some of his aircraft at the Udbina airfield, the base
used in today's assault.
    In late February, NATO fighters shot down three Bosnian Serb Galeb
fighter-bombers flying over Bosnia. They too had taken off from Udbina.
            On a tactical level, today's attack was apparently aimed at an
ammunition factory in Cazin, a settlement 10 miles north of the "safe area"
around the town of Bihac. But like Friday's attempt to hit a Bosnian army
headquarters within the "safe area" and the Nov. 9 raid on an ammunition
dump, the pilots missed their mark.
            U.N. officers speculated that Mladic took to the air because he
is impatient about the course of fighting around Bihac. Muslim forces broke
out of the pocket last month   and seized 95 square miles in their most
successful offensive since the war began in April 1992. Since then, Mladic's
army, wielding formidable firepower, has recaptured most of it. But in recent
days, Serb assaults have flagged.
            An attack by Muslim renegades backed by Croatian Serb forces has
so far not succeeded in capturing a main town in the pocket, Velika Kladusa,
and Bosnian Serb forces, their claims notwithstanding, are not believed to
have regained complete control of the strategic Grabez Plateau east of the
zone. U.N. officers said they believe Mladic is eager to send troops from
Bihac south to Kupres or east to Gradacac, where Croat and Muslim forces have
recently made gains.
            On a broader level, U.N. officials say Mladic is pursuing his
version of the "madman theory" of war that he has employed in the past around
Gorazde and other Muslim-held areas in Bosnia. By attacking the Bihac pocket
from Serb turf in Croatia, the Serb general is effectively daring NATO to
attack Serb forces there, which could widen the war to include Croatian Serb
and Croatian government forces.
    Indeed, Milan Martic, leader of the Croatian Serbs, warned today that if
NATO attacks his territory, his forces would respond by attacking government
held areas of Croatia.
            Martic was responding to a letter that Croatian President Franjo
Tudjman sent Friday to NATO, authorizing it to use Croatian airspace to
attack targets in Serb-occupied parts of Croatia for one week.
     During today's U.N. vote authorizing NATO to engage in such attacks,
U.S. Ambassador Madeleine Albright told the Security Council that the pattern
of activity from Udbina justified a NATO military response, the Reuter news
agency reported.
    "We would expect that any requests for NATO airstrikes made today or in
the future would yield a positive response from all concerned," she said.
     A U.S. envoy to the Bihac area said the U.N. commander in Bosnia, French
Gen. Bertrand de Lapresle, may ask U.N. and NATO officials for strikes soon,
Reuter reported. But other NATO diplomats said no decision is expected until
after NATO's North Atlantic Council meets to review the situation.
   As with Friday's raid, NATO AWACS surveillance aircraft patrolling above
Hungary and the Adriatic Sea failed to pick up the Serb attack. U.N. military
observers at Udbina airfield reported that the two jets took off at 3:48 p.m.
and that 10 minutes later only one returned.
            Near Cazin, other U.N. officers watched the jets coming in at
about 200 feet, hugging the valleys of the mountainous pocket.
    At one point, the jets disappeared from sight "but within seconds the
sound of many large explosions could be heard from the area of Cazin," a U.N.
report said. A huge plume of smoke rose above the location.
            While the Bosnian army claimed to have shot down one of the
fighters, U.N. military observers said the pilot appeared to have lost
control of his plane after it bumped a chimney on its approach. The plane
then bounced off the ground and plowed into a five-story apartment building,
sparking a huge explosion and fire and killing the pilot, the U.N. report
said.

******************************************************************************

Serb Jets From Croatia Bomb Bosnian U.N. 'Safe Area' Napalm Used in Bihac Raid
Rocket Hits Sarajevo Hall

  JOHN POMFRET (WASHINGTON POST FOREIGN SERVICE)
  
  (C) 1994 THE WASHINGTON POST (LEGI-SLATE ARTICLE NO. 217002)


    ZAGREB, Croatia, Nov. 18 - Serb fighter jets, swooping into Bosnia from
neighboring Croatian Serb territory, attacked the "safe area" of Bihac with
napalm and cluster bombs today in blunt defiance of a U.N. threat to use NATO
airpower to protect the zone.

            Bosnian Serb forces surrounding Sarajevo, meanwhile, fired a
missile into an assembly building used by the Bosnian federation of Croats
and Muslims, seriously injuring  one woman. The attack mirrored a similar
attack on the Bosnian presidency building Thursday. "Many warm greetings,
this is just the beginning," read a message scrawled on the side of the wire
guided rocket.
            The air assault on Bihac, coupled with reports that Croatian Serb
forces were streaming across the Bosnian border along with troops loyal to a
renegade Muslim businessman, marked a serious escalation of the fighting over
the peanut-shaped Muslim pocket in northwestern Bosnia. It also increased the
risk of widening Bosnia's conflict to include Croatia and constituted another
sign that the prospects for a negotiated settlement are receding fast.
            U.N. officials said they believe that in launching the air attack
and plowing troops and armor from Croatia into Bosnia, Serb forces are trying
to exploit a rift between the United States and France, Britain and Russia. A
U.S. government decision last week to stop enforcing the international arms
embargo on Bosnia's Muslims has infuriated the three European powers and
shaken NATO's resolve in the region.
            In Paris, France and Britain agreed to warn the United States
that they would have to withdraw their U.N. troops from Bosnia if Washington
took further steps to undermine the three-year-old U.N. arms embargo, a
rench spokesman said.
            "NATO had better settle its differences now and stop whistling in
the wind," a senior U.N. official said about the situation in Bihac.
"Otherwise there's going to be nothing left to protect."
   The goal of the Serb attacks appears to be the neutralization of the
Bosnian army's 5th Corps in the Bihac pocket and the creation of a compact
Serb entity disregarding the internationally recognized border between
Croatia and Bosnia. Bosnian Serbs control 70 percent of Bosnia and their Serb
brothers hold 27 percent of Croatia, but a large chunk of their two
territories is divided by the Bihac pocket, home to more than 170,000
Muslims.
            The onslaught also embodies a challenge to the authority of
President Slobodan Milosevic of neighboring Serbia, who has told the Bosnian
Serbs to stop fighting and accept an international peace plan that would
force them to surrender one-third of their territory to Bosnia's Croats and
Muslims. In August, Milosevic shut Serbia's borders to the Bosnian Serbs, but
their recent attacks show it has not affected their ability to fight.
            Tonight Bosnian Serb television broadcast pictures from Velika
Kladusa in an indication that at least parts of that important town along
Bosnia's border with Croatia had already fallen. Until his forces were routed
in August, the town was the stronghold of Muslim businessman Fikret Abdic,
who led a year-long rebellion against the Sarajevo government.
            A further sign that the Serbs have embraced the military option
came this afternoon when the "foreign minister" of the Croatian Serbs' self
styled Krajina republic, Milan Babic, said his government had rejected an
agreement with Croatia on reestablishing limited economic ties. A draft of
that agreement took more than six months to negotiate and Western officials
involved in the talks, which ended Thursday, said the rebuff was a grave
setback for peace.
            "This is the final document, the best we could possibly make,"
said Kai Eide, a member of the international group that helped broker the
deal. "There will be no new or further negotiations on this."
            To add to the bellicosity, Bosnian Serb forces threatened today
to bomb targets in Zagreb, the Croatian capital, after they accused Croatian
planes of delivering military supplies and ammunition to the surrounded
Muslim troops in Bihac.
            U.N. officials said the air raid on Bihac was carried out by two
Serb jet fighters that took off from Udbina airfield in Croatian Serb
controlled territory shortly before 11 a.m. and crossed into Bosnian
airspace, ignoring a NATO-enforced "no-fly zone." A Western military official
said NATO had no patrols in the area, and AWACS air surveillance aircraft
over Hungary and the Adriatic Sea did not pick up the attack because the jets
dove in at about 600 feet. "We have a little trouble with mountains," the
official said.
            Officials said U.N. military observers found debris from one
napalm bomb and one cluster bomb from the raid. It was the first confirmed
use of napalm in Bosnia's 31-month-old war.
            The attack took place well within a 3-by-5-mile zone around the
town of Bihac that was designated a U.N. "safe area" by the Security Council
in May 1993. It was the second such Serb bombing run on the safe zone since
Nov. 9. While no injuries were reported, U.N. spokesman Paul Risley said
Thursday that "any attack on the safe area would inevitably result in the use
of NATO air power."
            NATO's ability to respond today was limited because it has yet to
conclude an agreement with Croatia allowing its fighters to use Croatian
airspace to launch attacks on the Serbs.
            The Western military official said he believes Croatia has been
reluctant to let NATO attack from its airspace because that would give the
Serbs an excuse to attack Croatian targets. "It's tough on Croatia," he said.
"It widens the war."
           (At the United Nations, Britain introduced a Security Council
resolution to extend NATO's airstrike authority to Croatia to protect Bosnian
"safe areas" such as Bihac, the Reuter news agency reported.)
    NATO differences were also slowing action, U.N. officials said. Britain
and France have been reluctant to defend the Bihac "safe area" because last
month Bosnian Muslim forces used it as a base from which to punch out of the
much larger Bihac pocket and take 95 square miles of Serb-held turf. With the
increasingly strong Serb assaults from all directions, those gains have all
but evaporated.

*****************************************************************************

Cinderella Ukraine How the New Regime Turned Into Radical Reformers

  (BY ELIZABETH POND)
  
  (C) 1994 THE WASHINGTON POST (LEGI-SLATE ARTICLE NO. 217035)



 UKRAINE IS the new Cinderella. It could just metamorphose from bankruptcy
and potential civil war to surpass elder sister Russia in reform and perhaps
even consensus.
    The grand ball takes place tomorrow through Wednesday with President
Leonid Kuchma's Washington debut. The princely G-7 benefactors will be
adjusting and readjusting, for many mornings after, the $4 billion glass
slipper they have pledged. At the moment the unpleasant stepmother is nowhere
to be seen; the Kiev parliament, despite its earlier imprecations on
privatization, is acquiescing in Kuchma's bold economic reform and even, as
of a few days ago, in adhering to the nuclear nonproliferation treaty.
    To be sure, the old image is hard to erase. Last year inflation reached
8,940 percent, dwarfing the ruble's hyperinflation. This year industrial
production plunged another 36 percent after its previous steep decline. More
than a third of Ukrainian workers have not been paid their pittance for
months and depend instead on barter and their village cousins for food. Some
90 percent live below the poverty line.
    Third-worldly cholera broke out last summer. The clash between Ukraine's
nationalist west and Russian-speaking east had the CIA writing worst-case
civil war scenarios last winter. Corruption has rivaled Russia's and
Colombia's, with various ministers in the pre-Kuchma government boasting
about how much they had appropriated.
    The Supreme Rada (legislature) is controlled by a plurality of Communists
and ex-Communists who, like the Russian duma before the shootout with Boris
Yeltsin a year ago, are suspicious of reform and zealous in asserting a
parliamentary prerogative to run the executive, the   courts, the central
bank, and everything else in the present constitutional limbo.
    Yet the very catastrophe of the past three years of drift and no reform
has convinced much of the public that painful economic reform couldn't
possibly be worse than what they have already experienced. "My relatives
voted for Kuchma after four years of only worsening of the situation," says
Dmitry Schlapachenko, a young Ukrainian journalist currently studying at Duke
University. After this month's price hikes, "they now pay maybe $3 a month
for a ticket on public transportation, with the average salary $10. But many
people have come to the conclusion that what Kuchma is doing is very
important for Ukraine." His reform and the new Western aid it is eliciting
produce a "mental fact that somebody is helping us. Somebody cares about us
.. . We can hope for something. And we are not alone in the world."
    Moreover, Kuchma's activism has helped convince two of the three elite
antireform lobbies that they can extract no more monopoly-capitalist
windfalls from inflation and crony credits, maintains Anders Aslund, the
Swedish reform adviser to Kuchma. The weapons manufacturers, whose plants
used to account for almost two-thirds of Ukraine's total production, finally
realize that future success can come only from modernization, Aslund
contends. And even the coal barons are beginning to grasp that serious money
to transform their mines can come only from the West, in conjunction with
reform.
    That leaves as firm enemies of reform the "agricrats" who run the
collective farms and want no land privatization. It leaves too the peasant
families who survived Stalin's murderous collectivization and famine in the
1930s, conformed to the required passivity for three generations since then
and now feel threatened by change and the prospect of having to assume
responsibility. After Kuchma announced his reform, the newspaper Village News
expressed the common fear in asserting, "The Ukrainian people will starve and
freeze."
    The rural opposition has many allied legislators. As recently as last
summer parliament suspended all land privatization, then forbade
privatization of transportation, energy and other major sectors. In September
it passed yet another round of inflationary agricultural credits. Typically,
Speaker Oleksander Moroz has branded land privatization a "crime."
    Nonetheless, when Kuchma gave his inaugural policy address on Oct. 11 -
the Black Tuesday on which the ruble plummeted, as it happened - the Rada
meekly approved his comprehensive program of stabilization, liberalization
and privatization.
 The cause of this switch was in part disillusionment with the calamitous
drift under previous President Leonid Kravchuk, a communist ideologist turned
nationalist as the Soviet Union collapsed in 1991. A further incentive was
the attraction of the $4 billion the United States (along with Canada and
Germany) got the G-7 industrial nations to promise Ukraine last summer should
any real economic reform appear. And the final contributor was the
unanticipated political skill of Kuchma in courting legislators, including
the 70 percent of novices who entered parliament this year.
    Kuchma, in fact, has been a surprise all around. "I thought he was
energetic and decisive" after an initial meeting with him last April, says R.
Nicholas Burns, senior director for Russia, Ukraine and Eurasia affairs at
the National Security Council. "But I didn't think his instincts would be to
push economic reform or advance NPT (the nuclear nonproliferation treaty) as
he has done ... . It's a remarkable transformation - and in the nick of time.
There was a feeling in our government that the Ukrainian nation was at risk
because of its lack of economic reform."
    Kuchma, the peasants' son turned technocrat, then manager of the world's
biggest missile factory, then post-independence politician, first upset
expectations by winning the runoff presidential election against the
incumbent last July. After campaigning on the single theme of improving the
country's bad relations with Russia, he gained fewer than 10 percent of the
votes in the nationalist west - but he gained more than 80 percent in the
more populous east and tipped the balance in the center.
    Kuchma next astounded friend and foe alike by turning out to be both a
real Ukrainian and a real reformer. He made the effort to speak his childhood
Ukrainian in public rather than his more fluent adult Russian. He noted
archly that the Russian majority on the Crimean peninsula that keeps
agitating for union with Moscow accepted Ukrainian sovereignty by voting for
him as Ukrainian president. He conspicuously invited to Kiev as his first
official visitor, International Monetary Fund Managing Director Michel
Camdessus (rather than Russian President Yeltsin). He gradually weeded out
the old advisers he had inherited in favor of young, reform-minded ones like
Economics Minister Roman Shpek. He welcomed as foreign advisers a group of
Western economists working with Aslund and funded by George Soros. He
accepted the argument that reform was the only thing that could rescue
Ukraine from its catastrophe.
    So far it's little more than words, of course. But these radical words
have already persuaded the United States, Canada and the IMF - the European
Union is balking - to pledge $725 million in stabilization support for
Ukraine for the last quarter of 1994. The U.S. Congress is bending its usual
rules to provide balance-of-payments support from technical assistance funds
and at $350 million this year has elevated Ukraine to its fourth-largest
recipient of aid, after Israel, Egypt and Russia. Washington further
persuaded Russia and Turkmenistan to join this particular G-7 club in
rescheduling $3 billion in Ukrainian oil-and-gas debts. President Clinton is
also bestowing on Kuchma this week the status of a full state visit, an honor
from this administration he shares only with Yeltsin, the Japanese emperor
and South Africa's Nelson Mandela.
 Can Kuchma's gamble work? Or more precisely, can it work fast enough to
offset the pain of price rises? Senior Congressional Research Service
economist John Hardt thinks so. He points out that "they have such an
untapped reservoir of inefficiencies" in the energy and agricultural chains
that dramatic improvement could come swiftly. "It takes a lot of doing to
waste energy as they do. It takes a lot of doing to destroy crops as they do,
so half that come up in the field don't get to the market ... because there
are no trucks ... . You could turn it around in six months to a substantial
degree."
    Politically too, Kuchma would seem to have some leeway. The Ukrainians
have shown incredible patience in not mounting major street protests against
ever-worsening conditions in recent years. And Kuchma's combination of reform
at home and easing of relations with Russia abroad has already relieved
regional tensions within Ukraine. Some of the Western nationalists, convinced
finally that he is not selling out Ukraine, are joining his reform team. The
fledgling president has reintroduced hope in a common Ukrainian future for
the first time since resident Russians, like Ukrainians, voted for Ukrainian
independence back in 1991 in the expectation that their standard of living
would get better, not worse, than Russia's.
    Moreover, there is no ethnic hostility between Ukrainians and the 11
million Russians in Ukraine, who constitute almost half of the instant
Russian diaspora thrown up by Soviet disintegration. Indeed, with the
exception of Russian-Tatar animosity on Crimea, treatment of minorities is
exemplary. Antisemitism is minor, according to Bension Kotlik of the Jewish
community in Lviv. Far right parties do exist, especially in the west, and
even field a few paramilitary units - but they fared poorly in this year's
elections. Besides, both right and left extremes are being increasingly
pushed to the margins as the interminable runoff elections like today's bring
ever more centrists to fill the remaining empty seats in the Rada.
    "It's a rocky road ahead," says Burns. But Washington is doing its utmost
to make Ukraine's traversing of the road of reform and independence a
success. "Ukraine is awfully important for the future. It's as big as France
or Italy. If you look in a crystal ball, 50 or 75 years from now Ukraine can
either be a major power in Europe or the sick man of Europe ... . Ukraine's
greatest challenge is to get on its feet economically. Economics drives just
about everything. If they are successful in stabilizing and reforming, that
will give them a sense of self-confidence as a nation and improve their
chances to be a truly independent state. That's our goal: to have a strong,
stable state in Europe."
    That is only the easy part, of course. The next step involves giving the
"incredulous" Russians time to digest the fact that after three centuries of
union, Ukraine really is a separate country. And the step after that involves
creating at home, after three centuries as a Russian province, a sense of
distinct identity broad enough to win the loyalty of patriotic western
Ukrainians, eastern Russian-speaking Ukrainians, Russians and the 2 million
Hungarians, Ruthenians and other non-Slavs.
    And all that has to happen fast enough to prevent Kuchma's coach from
turning into a pumpkin.

    Elizabeth Pond, a fellow at the Woodrow Wilson Center, writes for Nowa
Europe in Warsaw and is studying the Polish and Ukrainian Western cooperative
system.

*****************************************************************
A tovabbterjesztest a New York-i szekhelyu Magyar Emberi Jogok
Alapitvany tamogatja.

           [*]   [*]  [*]   [*]  [*][*]    [*][*][*]
           [*]   [*]  [*]   [*]  [*]  [*]  [*]
           [*][*][*]  [*][*][*]  [*][*]    [*][*] 
           [*]   [*]  [*]   [*]  [*]  [*]  [*]    
           [*]   [*]  [*]   [*]  [*]   [*] [*]

Reposting is supported by Hungarian Human Rights Foundation News
and Information Service.
*****************************************************************



A forduloval kapcsolatban tegnap este tortent a masodik tevedesem(az 
elso az ETO FC- Nagykanizsa volt).

UTE - Vac  2-1(1-1)     
G.:Egressy ill.Fule 2

Ugy indult a merkozes,ahogy minden ujpesti megalmodta.A nagyon erosen 
kezdo UTE mar a 10.percben megszerezte a vezetest.Ezutan kiengedtek a 
hazaiak ennek eredmenye lett az egyenlites.A szunet utan meg tobbet 
tamadtak a lilak,de egy ujabb pontrugas utan mar a vendegek vezettek.
Ezutan szinte at sem ment a felezovonalon a Vac,annyira tamadott az 
UTE,am egyenlitenie nem sikerult,igy elszenvedte elso hazai vereseget.
Ennek ellenere az utolso fordulo eredmenyetol fuggetlenul oszi bajnok 
az UTE.

A bajnoksag allasa

       1. UTE         14  10  2  2  42 - 17  32
       2. FTC         14   9  2  3  33 - 20  29
       3. Kispest     14   8  2  4  29 - 17  26
       4. Bekescsaba  14   7  5  2  25 - 18  26
       5. BVSC        14   8  1  5  32 - 20  25
       6. Debrecen    14   7  2  5  18 - 20  23
       7. ZTE         14   6  2  6  21 - 32  20
       8. Vac         14   5  3  6  21 - 23  18
       9. Pecs        14   5  3  6  16 - 23  18
      10. Nagykanizsa 14   5  2  7  15 - 30  17
      11. Csepel      14   4  3  7  13 - 15  15
      12. Stadler     14   4  3  7  13 - 17  15
      13. ETO FC      14   5  2  7  17 - 19  14
      14. Sopron      14   3  4  7  26 - 30  13
      15. Vasas       14   3  3  8  19 - 25  12
      16. Parmalat    14   1  5  8  12 - 26   8
      

Az NB II eredmenyei:

Keleti csoport                       Nyugati csoport
                                    
Salgotarjan - Szarvas 2-0            Tatabanya-Keszthely 2-2
Tiszakecske-Godollo 0-0              Veszprem-ESMTK      0-0
Nyiregyhaza-Diosgyor 0-0             BKV Elore-Beremend  4-1
Hodmezovasarhely-MTK 1-1             PVSK-Haladas        0-2
Kaba-Hajdunanas1-1                   Paks-Dunaferr       0-0
Tiszavasvari-Kaqzincbarcika 2-2      Mohacs-Budafok      1-0 
III.Ker.-Hatvan 3-1                  Matav-Sopron-Siofok 1-1
Miskolc-Balmazujvaros 1-3            Baja-Szazhalombatta 2-1

1. MTK         35 p.                 1.BKV Elore  30 p.
2.Salgotarjan  32 p.                 2.Siofok     28 "
3.Kaba         27 p.                 3.Szazhalomb.25 "


szoltan o.z.