N E W S L E T T E R

from the Daily Bulletin of the Hungarian News Agency MTI
distributed by the Department for Press and International Information
Ministry of Foreign Affairs, Republic of Hungary

H-1394, Budapest P.O.B. 423.
Telephone: 36 (1) 156-8000
Telefax: 36 (1) 156-3801
No. 94/1995                                                             15 May
1995

Appeal by OSCE Chairman-in-Office

        Budapest, May 12 (MTI) - Laszlo Kovacs, Chairman-in-Office of the
Organization for Security and Cooperation in Europe (OSCE), has published
an appeal to the parties involved in the conflict in and around Nagorno-
Karabakh on the first anniversary of the cease-fire. The document recalls that
the cease-fire was reached through the mediation of the Russian Federation
and in cooperation with the OSCE Minsk Group. "This important anniversary
gives us hope that the cease-fire will continue and provide the necessary
background for the peaceful settlement of the conflict," it says.
        "The OSCE will do its utmost - first of all within the framework of the

Minsk process - to contribute to this end.
        "In this connection, I welcome the resumption of the negotiations which

will start in the near future in Moscow with the mediation of the Co-Chairmen
of
the OSCE Minsk Conference and aiming at the preparation of the agreement
on cessation of the armed conflict, which is of crucial importance at this
stage
of the settlement.
        "Now, on the first anniversary of the cease-fire in the region of Nagor
no-
Karabakh, I appeal to you to end all hostilities between your nations. This
anniversary also provides an opportunity for generous gestures by all parties,
namely to release prisoners of war and civilian detainees in accordance with
your obligations under the provisions of the 1949 Geneva Conventions. All
necessary measures should be taken to prevent further suffering of the civilian
population affected by the long armed conflict. These measures would
definitely represent a significant advance in confidence-building. They would
enhance confidence between the parties, so desperately needed if they are to
begin fruitful negotiations aimed at a peaceful settlement.
        "I also appeal to all participating States of the OSCE to offer all the

necessary political support to this process, including the means indispensable
to mounting a credible peace-keeping operation in the region.
        "...I consider it a promising development that Armenia has recently
taken an important step by announcing the release of all Azeri POWs and
civilians, a step which, I hope, will soon be reciprocated by others."

Hungarian President to Visit Austria

        Budapest, May 12 (MTI) - Hungarian President Arpad Goncz is to
officially visit Austria from May 16-18, invited by counterpart Thomas Klestil.
        Goncz's programme includes talks with Klestil, Chancellor Franz
Vranitzky, and Parliament President Heinz Fischer, plus a visit to Burgenland,
presidential spokesman Andras Farago said on Friday.

Keleti in Talks with NATO

        Brussels, May 12 (MTI) - Hungarian Defence Minister Gyorgy Keleti
held official talks at NATO headquarters on Friday, with NATO Deputy
Secretary-General Sergio Balanzino, and members of the Atlantic Council
made up of member countries" ambassadors. Keleti also separately met U.S.
Ambassador to NATO Robert Hunter.
        "The most important aim was to make clear Hungary's continued
commitment to NATO membership, and outline the results we have attained
under the Partnership for Peace plan and in bilateral cooperation with
individual member states," Keleti said.
        He noted that both Balanzino and Hunter had confirmed they "consider
NATO expansion useful and necessary."

Hungarian Minister of Defence at NATO Centre

        Brussels, May 12 (MTI) - Hungarian Minister of Defence Gyorgy Keleti
at the Brussels NATO centre on Friday said NATO members believed the
ultimate membership decision has to be based on the collective resolution of
all 16 NATO member countries.
        In the second half of the day, Keleti met Field Marshall Sir Richard
Vincent, the president of NATO's Military Committee. They mainly discussed
adapting Hungary's military technology to NATO.
        "We said we feel it urgent to make our telecommunications systems
compatible with NATO," Keleti said.
        The minister said Sir Vincent agreed that Russian weaponry worth
nearly USD 300 million which Hungary will shortly get as repayment of Soviet
debt, mainly consisting of BMP 80-type armoured transport vehicles, will not
require adaptation.
        Keleti said NATO officials are aware of Russian doubts about NATO
expansion but will not be diverted from schedule.

Minister of Justice to Visit to Israel

        Budapest, May 12 (MTI) - Working out a new constitution, and legal
harmonization for Hungary to join the European Union will be among topics to
be discussed by Hungarian Minister of Justice Pal Vastagh on an official visit
to Israel from Sunday.
        At a press conference in Budapest on Friday, Vastagh said
compensation for Jews and their relatives killed or robbed during the Second
World War will naturally also be discussed. However, this topic will not be the
main focus of his visit.
        Vastagh also said the English-language version of the draft new
Hungarian constitution has recently been prepared, and several international
organizations, including Israeli ones, will be asked for their opinion on it.
        During the four-day visit Vastagh will meet Israeli Minister of Justice

David Libai, the Israeli chief public prosecutor, the President of the Supreme
Court, and members of Israeli Parliament's foreign affairs committee.
Nuclear Proliferation Treaty - Hungarian Diplomat

        Washington, May 12 (MTI) - The Deputy State Secretary of the
Hungarian Foreign Ministry, Andre Erdos, said the extension of the nuclear
proliferation treaty, which covers 178 countries, for an indefinite period, was
of
outstanding importance.
        Erdos was president of one of the main committees at the month-long
revision conference of the treaty in New York.
        According to Erdos, the unconditional prolongation of the treaty
preventing nuclear proliferation for an unlimited period was made possible
because everyone agreed to make the supervision mechanism more effective,
and because they approved the resolution which defines, concretely, main
methods for destroying nuclear warheads.
        The Hungarian diplomat stressed that the five nuclear powers had to
recognize they must show greater political commitment to nuclear
disarmament than earlier to improve supervision. Erdos said the conference
firmed up the guarantee system, and increased International Atomic Energy
Agency (IAEA) verification powers.



Finance Minister on Budapest Bank Affair

        Budapest, May 12 (MTI) - Because of negotiations abroad, it was only
today that Finance Minister Lajos Bokros could appear in public to explain his
role in the "Budapest Bank affair". Bokros was head of the Budapest Bank
when it was given extra capital of HUF 12 billion by a secret government
decree. The affair has stirred a great political storm.
        At a news conference on Friday morning, Bokros said he would not
resign as the government had accepted the report on events at the Budapest
Bank and unambiguously supported its privatization.
        "Prime Minister Gyula Horn continues to have confidence in me," the
minister said.

        Bokros pointed out that the Budapest Bank needed a capital injection
because although in 1993 it recorded profits of HUF 7.9 billion, it had to
create
HUF 21 billion special reserves against doubtful debts. This absorbed all the
bank's profits and caused a HUF 13 billion deficit in its general reserves.
        Thus, the only way to privatize the bank was through increasing its
capital. The decision to begin the privatization process was made by the
previous government.
        The state provided the capital increase, but only temporarily. The idea
 is
for the Budapest Bank to issue new shares, which it is hoped foreign investors
will buy at a price above the nominal value, and then the state would not only
get back the HUF 12 billion invested, but would also make a considerable gain
from the rise in share price.
        If the bank cannot be privatized as planned, it will have to repay the
HUF 12 billion with interest to the State Holding Company.
        Secrecy was necessary because publicity could have led to speculation
in the bank's shares.


Norwegian Energy Minister

        Budapest, May 12 (MTI) - Norwegian firms are interested in the
privatization of Hungarian oil, gas, and electricity industries, Norwegian
Minister of Industry and Energy Jens Stoltenberg said in a meeting with
Hungarian Minister of Industry and Trade Laszlo Pal, in Budapest on Friday.
        The Norwegian Minister is leading a visit to Hungary.
        Possible cooperation in electric power generation, artificial fertilize
r
production, and aluminum smelting were discussed.
        Representatives of several Norwegian companies, for instance Horsk
Hydro, Statkraft, Anthon B. Nilsen, were at the meeting.
        Hungary does 0.04 per cent of exports, and 0.1 per cent of imports in
Norway's foreign trade. Norway's share of Hungarian exports is 0.2 per cent,
and 0.14 per cent of imports. About 25 joint ventures in Hungary have
Norwegian participation.

Minorities - International Conference in Dorog

        Budapest, May 13 (MTI) - Civic organizations can do a lot in every
country to improve the relations of the majority of the nation and the
minorities,
and to spread tolerant ideas, said Alfredo Micio, minority expert of the
Council
of Europe, at a conference held in Dorog, W Hungary, on Saturday. Minority
issues cannot be regarded as the internal affairs of a state as it has been
proved several times throughout history - and unfortunately even by examples
today - that the negligence of minority problems can eventually lead to
international conflicts. Confidence-building requires not only consent but also
great patience, and concrete results can be expected only in the long run,
Micio said, at a forum entitled "Dialogue About Tolerance".
        The conference was attended by Hungarian and Slovak politicians and
diplomats, and members of civic organizations who discussed how the
relations of the Hungarian and Slovak peoples could be improved.
        They all agreed that the two people's relationship could be improved no
t
only on a governmental level, but also through smaller and larger
communities. Such a community will be formed, for instance, by the towns of
Dorog, Esztergom and Komarom in Hungary and Sturovo and Nove Zamky in
Slovakia. This group would like to operate similarly to the Alps-Adria region.
The symbol of the alliance will be the Danube bridge between Esztergom and
Sturovo, which was ruined towards the end of World War Two. The
reconstruction of the bridge began recently on both sides of the river. Both
Esztergom and Sturovo have set up a committee to coordinate related ideas
and plans. It is expected to give an impetus to the work that the European
Union has decided to cover 50 per cent of the costs with a PHARE aid.
        The Hungarian-Slovak framework agreement on the reconstruction of
the bridge was singed in the final phase of the conference by the mayors of
Esztergom, Dorog, Sturovo and Nove Zamky.

Foreign Minister in Lisbon

        Lisbon, May 14 (MTI) - Hungarian Foreign Minister Laszlo Kovacs and
Parliamentary State Secretary of Defence Istvan Fodor arrived in Lisbon
tonight to attend the semiannual ministerial meeting of the Western European
Union (WEU) on Monday.
        The Hungarian delegation also includes ambassador Istvan Gyarmati,
Deputy State Secretary of Defence Tibor Toth and Andras Simonyi, head of
the Atlantic Contact Bureau in Brussels.
        Matyas Eorsi, chairman of Hungarian Parliament's Foreign Affairs
Committee, arrived in the Portugal capital also on Sunday, to attend the
parliamentary assembly of the WEU which will be held simultaneously with the
ministerial meeting.
        On Tuesday Kovacs will hold bilateral talks with his Portugal counterpa
rt
Jose Manuel Durao Barroso and President Mario Soares.
        The foreign minister is expected to return to Hungary on Wednesday
morning.

Lajos Bokros in Vienna

        Vienna, May 14 (MTI) - Hungarian Finance Minister Bokros Lajos
arrived in Vienna on Sunday as the honorary guest of the International
Advisory Organization of the Austrian bank Creditanstalt.
        The renown organization, whose members are leading figures of the
international financial circles, invited the Hungarian minister with the aim to
gain first-hand information about the economic situation in Hungary.
        At the gala dinner given in his honour, Bokros reiterated that Hungary
was determined to carry through its economic programme.
        Foreign investors will be granted equal chances and maximum security,
the minister pledged. He outlined plans for the next phase of the
privatization,
which is to begin shortly in the energy sector.
        On Monday, Bokros will hold talks with Andreas Staribacher, newly
appointed Austrian Minister of Finance, and with Klaus Liebscher, newly
appointed head of the National Bank of Austria, who will take office on June 1.

Prime Minister Interviewed by Danube Television

        Budapest, May 14 (MTI) - The long-term modernization programme of
the government, which is to be completed shortly, will be discussed not only by
Hungarian economists, the government will also ask the European Bank for
Reconstruction and Development, the Council of Europe and the World Bank
to assess it, said Prime Minister Gyula Horn in the Hungarian Danube
Television's Sunday evening programme "Weekly Courier". The social and
economic problems of the country can be resolved only with help from abroad,
but financial stabilization is a precondition for this help, Horn said.
        This struggle with everyday problems will be over in one or one and a
half years' time, but even until then the government will make sure the public
can see the country's future prospects. Hopefully, Parliament can start the
discussion of the long-term modernization programme this autumn, Horn said.
The Integration Development Fund will be set up in the summer. This
institution will be the guarantee that the foreign loans and aid given to
Hungary
may be spent solely on modernization - instead of covering loan repayments.
        "Naturally, I fear the austerity measures may have such consequences
as protests and demonstrations, but I believe the majority of the people
understands that these measures are necessary," Horn said.
        Asked about foreign policy issues, the prime minister said he was
optimistic regarding the Hungarian-Romanian basic treaty. He stressed the
most important thing was that both countries had the political will to
accomplish
it. Although occasionally there are sharp debates over recommendation no.
1201 of the Council of Europe, the two countries' relations are developing well
not only in the economy, but also on a political level, he said.
        The prime minister stated his satisfaction with the development of
Hungarian-Slovak relations, too. Vladimir Meciar has fulfilled all the
obligations
he undertook in January, Horn said, mentioning such examples as the opening
of new border posts and more water being pumped into the Hungarian section
of the Danube.
        On the occasion of the Trianon anniversary, the prime minister said the

treaties that concluded World War One were profoundly unjust but the voicing
of any claim for their revision would seriously interfere with Hungary's
interests.
        Finally Horn said he was hopeful that it would be decided before the en
d
of the year when and on what conditions Hungary may join NATO.

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

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



N E W S L E T T E R

from the Daily Bulletin of the Hungarian News Agency MTI
distributed by the Department for Press and International Information
Ministry of Foreign Affairs, Republic of Hungary

H-1394, Budapest P.O.B. 423.
Telephone: 36 (1) 156-8000
Telefax: 36 (1) 156-3801
No. 95/1995                                                             16 May
1995

WEU - Kovacs on All-European Security System

        Lisbon, May 15 (MTI) - Foreign Minister Laszlo Kovacs outlined a
European security policy system based on five pillars when he addressed a
conference of ministers from the West European Union in Lisbon today.
        He said in Hungary's view security must simultaneously be undivided
and complex, that it must rest on military, economic, political and other
factors.
        Kovacs said a further important viewpoint was that the entire
 security system rests on a logic of cooperation, so that the respective
institutions should cooperate and strengthen one another in their attempt to
add to stability and security on the whole continent rather than be engaged in
competition.
        Kovacs told Hungarian journalists the first pillar of the all-European
security system combines the EU, NATO, WEU and the Strasbourg-based
Council of Europe. These four organizations cover different areas, he said,
and it is expedient for this reason that they carry out their activity "by also
watching one another."
        The second pillar, according to Kovacs, is the Organization for Securit
y
and Cooperation in Europe (OSCE) which can evince its activity mainly in the
sphere of crisis management, forecast and prevention.
        The third pillar is the sum total of all the cooperation agreements tha
t
NATO will conclude with countries that can barely count on being admitted in
the near future (Russia and Ukraine for example).
        The fourth pillar is the system of regional cooperation, and the fifth
is the
system of bilateral agreements laid down in the Paris Pact on Stability.
        Kovacs again described Hungary's active presence in the organization
of the West European Union as essential, since the latter organization is
approaching NATO (as its European pillar), and the EU (as its future
independent defence organization) ever more.
        He confirmed that in Hungary's assessment only those countries can
envisage a full WEU membership that are full members of NATO as well as
the EU.


Bokros Holds Talks in Vienna

        Vienna, May 15 (MTI) - Finance Minister Lajos Bokros conferred with
Austrian Finance Minister Andreas Staribacher on Hungarian economic and
financial issues as well as some problematic questions affecting bilateral
relations, today in Vienna.
        Bokros requested assistance from Staribacher for implementation of a
plan to move border guards and customs officials, proving superfluous on
Austria's western border because of recent EU measures, to the eastern
border. In this way the present, extremely slow crossing due to lack of
capacity, could be speeded up at the Hungarian-Austrian border.
        A further controversial issue is the case of veterinary examinations:
Bokros would like checks to be carried out on Hungarian territory, and
conforming to EU standards, be accepted in the entire region of the European
Union. This would be vital to Hungarian exports.
        Bokros also raised the idea of modifying a bilateral agreement on
avoiding double taxation, as this could prove to be an important instrument in
combatting the illegal economy in Hungary: an appropriate exchange of
information will help check the finances of Hungarians employed in Austria.
        Bokros expressed his thanks to Maria Schaumayer, who will retire as
president of the Austrian National Bank on June 1, for the assistance she
extended in depositing Hungarian bonds in Austria in recent years.
        Bokros and Klaus Liebscher, recently appointed president of the
Austrian National Bank, and for the time being president of the Austrian Stock
Exchange, surveyed questions connected to development of the stock market.
Bokros invited Liebscher to attend ceremonies on June 23 marking the fifth
anniversary of the Budapest Stock Exchange.
        In the afternoon Bokros gave a lecture on the state of the Hungarian
economy before Austrian businessmen, entrepreneurs and bankers interested
in Hungarian investments, at the Hungarian embassy in Vienna. In answer to
questions he said that the policy of devaluating the Hungarian currency would
certainly not change before 1997. Bokros held a separate meeting with
Hannes Androsch and Rudolf Gruber, director of EVN (a power company in
lower Austria).


Suchman in Munich

        Bonn, May 15 (MTI) - Hungarian Minister without portfolio Tamas
Suchman, responsible for privatization, opened talks with the managers of
major Bavarian companies who have shown an interest in Hungarian
investment opportunities.
        On the first day of his visit to Munich, Suchman held separate meetings

with the managers of the companies interested in Hungarian investment, and
businessmen showing interest in future privatisation in Hungary.
        On Tuesday Suchman will outline the Hungarian government's future
privatisation measures and the principal objectives of Hungarian economic
policy at a round-table conference.
        Executives of the largest banks and companies in Bavaria, the most
active German province in Hungarian-German economic cooperation, have
been invited to attend the function.
        As the final event of the visit, Suchman will confer with Bavarian Mini
ster
of Economic Affairs Otto Wiesheu on Tuesday, and join a delegation headed
by President Arpad Goncz in Austria on Wednesday.


German Support for Hungary's Integration into Europe

        Budapest, May 15 (MTI) - Imre Szekeres, head of the parliamentary
group of the largest governing party, the Hungarian Socialist Party, informed
Parliament today before regular business was attended to, on a visit by a
delegation of the Socialists to Germany.
        The delegation had met an invitation from the German Social
Democratic Party.
        The members of the delegation met representatives of the German
Christian Democrats, the Liberals and the Greens, and it became clear at the
talks, according to Szekeres, that all political forces in Germany supported
Hungary's integration into the European Union and NATO.
        He said the German parties were monitoring the process of
transformation in Hungary, and supported the Hungarian government.

Hungarian Military Leaders for Moscow

        Budapest, May 15 (MTI) - Hungarian military leaders left for Moscow
today to hold talks with Russian officials on the delivery of USD 300 million
worth of military equipment as partial payment for an earlier Russian debt.
        The Defence Ministry is represented by Lieutenant-General Karoly
Janza, deputy secretary of state, and the Border Guards by Major General
Kalman Kiss, director general in charge of law enforcement troops.
        They are to hold talks in the Russian capital on the delivery of BTR-80

type modern, armoured transportation carriers.
        According to reports the Border Guards would take a USD 50 million
share of the total USD 300 million equipment.
        Plans call for equipping companies in charge of defending Hungary's
borders with armoured carriers and possibly with Fagot type of armour piercing
missiles.
        In the autumn of 1993 the Hungarian armed forces received 28 MIG-29
fighter planes at a value of USD 800 million.
        Russia intends to pay off one third of its outstanding USD 900 million
debt by delivering military vehicles.
        An agreement to this effect was reached by Prime Minister Gyula Horn
and President Boris Yeltsin during Horn's visit to Moscow in early March.

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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

from the Daily Bulletin of the Hungarian New Agency MTI
distributed by the Department for Press and International Information
Ministry of Foreign Affairs, Republic of Hungary

H-1394, Budapest P. O. B. 423.
Telephone: 36 (1) 156-8000
Telefax: 36 (1) 156-3801
No. 96/1995                                                             17 May
1995

Hungarian PM to Visit Ukraine and the U.S.

        Budapest, May 16 (MTI) - Prime Minister Gyula Horn, accompanied
by several ministers and state secretaries, will pay an official visit to
Ukraine
on May 18-19. Several bilateral agreements will be signed during the visit,
foreign affairs spokesman Gabor Szentivanyi told his regular press
conference on Tuesday.
        Preparations are well under way for the prime minister's June visit to
the United States, the spokesman said. During his week in the U.S., Horn
will meet President Clinton, senior government
officials, several state governors, the President of the Senate, the Speaker
of the House of Representatives and U.S. business leaders.
        The prime minister will also have discussions with politicians who
previously occupied high positions in government, political analysts and
respected journalists. He will visit the editors of three influential
newspapers, The New York Times, The Washington Post and The Wall
Street Journal, a business paper of special importance for Hungary. Horn
will also meet representatives of America's Hungarian community, as well
as the U.N. Secretary-General and high-ranking officials from the
International Monetary Fund.

        The spokesman said that Istvan Szent-Ivanyi, parliamentary state
secretary at the foreign ministry, will visit Finland from May 23 to 27 to
become familiar with country's experience in its six months of membership
in the European Union and hold talks with leading foreign ministry officials.
An agreement on regular consultations between Budapest and Helsinki
was reached on Foreign Minister Laszlo Kovacs's visit to Finland in
February this year.
        Responding to recent remarks by a Romanian senator that a
Hungarian-Romanian conflict is conceivable in the affair of Transylvania,
the spokesman called it unfortunate that certain political forces of Romania
are making unfounded statements that help neither the development of
bilateral relations, nor the European integration efforts of Bucharest.
        Hungary continues to seek better ties in all fields. According to the
spokesman, these relations "are actually not bad", and military links are
even exemplary. The ministry has no knowledge about the troops
movements mentioned by the Romanian politicians. (The spokesman for
the defence ministry, Colonel Lajos Erdelyi, had previously categorically
denied the Hungarian Army concentrating troops along the southern
border.)
        Gabor Szentivanyi said it was possible that Hungary's Parliament
would soon ratify the basic treaty with Slovakia, and Hungary would like to
see the document being ratified in Slovakia shortly, but it is aware that
parliamentary approval also has a home policy charge in Slovakia.

Goncz-Klestil Talks, Press Conference

        Vienna, May 16 (MTI) - Questions of European integration,
particularly how Austria's European Union membership affects relations
between Hungary and Austria, were in the focus of the official talks
between Presidents Arpad Goncz of Hungary and Thomas Klestil of Austria
on Tuesday morning.
        Klestil stressed both at the discussion and his subsequent joint press
conference with Goncz that links between the two countries were
developing very well, and that Austria's EU membership would not
hopefully worsen this situation. He assured Hungary's transformation of the
continued support of Austria and hoped these reforms would lead the
country to full membership in the EU.
        Klestil said Austria was backing Hungary's bid to join the EU also on
the long term, adding that its role in this was also recognized by Brussels.
At talks with Goncz, he offered to share Austrian experience in EU
membership with Hungary. He said they were aware of the disadvantages
stemming from the obligations imposed by his country's EU membership,
for instance, that henceforward it will be forced to treat the Austrian-
Hungarian frontier as an external border. He believed these problems can
be solved with joint effort in order to prevent a new iron curtain from being
raised between the two countries.
        Regarding economic relations, both heads of state stressed the
mutual importance of close cooperation. Goncz spoke on the strategic role
played by Austria. Klestil noted the existence of the 5,000 Hungarian-
Austrian joint ventures speak for themselves, and added that Austria was
also interested in promoting Austrian investments in Hungary.


President Goncz - Austrian Parliament

        Vienna, May 16 (MTI) - Hungary's admission to the European Union
was the main theme of the talks that Hungarian President Arpad Goncz
held with Heinz Fischer, president of the Austrian National Council.
        Fisher said it was in Austria's interests to share all its EU-related
experiences with Hungary to ease its road to full membership. Goncz
mentioned that the seminar held about legal harmonization in Vienna in
February was very useful for Hungarians.
        Hungary is willing to learn more about Austria's experience, Goncz
said, adding that cooperation between the two countries" parliamentary
committees should be more intensive.
        On Tuesday afternoon Goncz met the representatives of Hungarians
living in Austria at the Hungarian embassy in Vienna.
        In the evening, the Hungarian president attended the gala dinner
given in his honour by Federal President Thomas Klestil at the Hofburg.


Minister of Interior in Vienna

        Vienna, May 16 (MTI) - In Vienna, on Tuesday, Hungarian Minister of
Interior Gabor Kuncze handed over a draft agreement to his Austrian
counterpart, Caspar Einem, which is aimed at easing crossing on the
Hungarian-Austrian border.
        Kuncze, who in President Arpad Goncz's entourage, told journalists
after today's discussions that the draft agreement drew up a three-lane
crossing system. According to this, there would be separate lanes opened
for Hungarians, European Union member state citizens and for the citizens
of other countries, which would enable the separate handling of passengers
and would favour Hungarians. It has not been settled yet whether Lane H
(for Hungarians) would be opened for the citizens of those countries which
can enter the EU countries without holding a visa, Kuncze said.
        The minister stressed that the current problems were not related to
the Schengen agreement as Austria had not yet begun to implement the
measures prescribed in that document.
        As Kuncze had reported in recent weeks in Germany, the
Netherlands, and in Brussels before the Schengen committee: 80 per cent
of the Hungarian border posts are equipped with the type of computer
system prescribed by the Schengen agreement, which are adequate to be
connected to the Schengen data base. The remaining 20 per cent of the
network might be installed with help from Brussels.


Hungarian-Portuguese Double Taxation Agreement

        Lisbon, May 16 (MTI) - Today in Lisbon, Hungarian Foreign Minister
Laszlo Kovacs and his Portuguese counterpart, Jose Manuel Durao
Barroso, signed an agreement eliminating double taxation between the two
countries and an accord on cooperation between their foreign ministries.
        Yesterday, Kovacs attended a session of the council of ministers of
the Western European Union (WEU). Today, he had talks with leading
Portuguese politicians. Later today, he will meet President Mario Soares.
        Speaking to Hungarian journalists, Kovacs said the abolition of
double taxation was intended to boost business links between Hungary and
Portugal.
        Bilateral trade last year amounted to USD 30 million, a rather low
figure but double the figure for 1993, which is a promising trend, the
Hungarian foreign minister said.
        "An investment protection agreement was previously concluded
between the two countries, and Hungary hopes the accord we have just
signed will encourage Portuguese investors, who, at the moment, are
present in Hungary in very small numbers," Kovacs added.

Compensation for Hungarian Jews - Vastagh in Israel

        Cairo, May 16 (MTI) - Hungarian Justice Minister Pal Vastagh has
had talks in Israel with his counterpart David Libai. He also had discussions
with the President of the Supreme Court and representatives of the Jewish
Reparations Organization.
        "We informed each other about our legal systems and discussed
compensation for Hungarian Jews," Vastagh told MTI's Cairo
correspondent.
        "I informed Mr Libai about Hungary's progress in codifying a
constitution, harmonizing its legal system with that of the European Union
and providing compensation for the Jewish community," Vastagh said.
        "Although the last topic did not feature on the original agenda, the
Israelis showed keen interest in it," the minister said.
        "I told my Israeli colleague that the legislation relating to the
compensation of those deprived of their property and personal freedom
also applies to former Hungarian citizens of Jewish origin, so it could not be
said that the Hungarian government had not done anything in this field,"
Vastagh said.
        Following the ruling by Hungary's Constitutional Court, the
government will soon submit a bill to Parliament intended to settle many of
the unresolved issues which have adversely affected the Jewish
community.
        Vastagh said the government sought to provide the Jewish
community in Hungary with the land and buildings necessary for its
communal and religious life and for the establishment of new schools and
support of existing ones.


Hungarian-American Military Talks in Washington

        Washington, May 16 (MTI) - U.S. Secretary of Defense William J.
Perry and Hungarian Minister of Defence Gyorgy Keleti signed a
memorandum in Washington on Tuesday, which will serve as a framework
for Hungarian-American military cooperation. They also signed a secret-
protection agreement and an accord on the exchange of technical data.
        The two men described the birth of these documents as a landmark
achievement, stressing that the United States signed a cooperation
agreement including military research and development with Hungary first
of the former Warsaw Pact countries. (Keleti mentioned the modernization
of the anti-aircraft radar systems as a possible field of such cooperation.)
Perry said the agreements stipulated regular consultations on issues
concerning the security of the two countries, and that the United States
would provide support to the modernization of the Hungarian armed forces.
        Hungary would like to become a security factor in Europe, a country
which maintains friendly relations with the neighbouring countries, and
become a full member of the North Atlantic Treaty Organization, Keleti said.
        Prior to his discussions in the Pentagon, Keleti held talks at the
Department of State and in the Congress. With Richard Hoolbrooke, deputy
secretary of state, he discussed NATO expansion and Russia's related
concerns.

Hungarian Participation in U.N. Peace Missions

        Budapest, May 16 (MTI) - A Hungarian unit is scheduled to join the
Austrian U.N. peacekeeping battalion in Cyprus in the near future. The
Austrian side and the world organization have agreed to the cooperation,
with inter-ministry talks underway about securing the necessary funds in
Hungary, foreign affairs spokesman Gabor Szentivanyi told a press
conference on Tuesday.
        The Hungarian foreign ministry considers participation in peace
missions, limited so far to unarmed monitoring and armed peacekeeping
operations, to be a priority area of Hungary's U.N. policy. The number of
Hungarian peacekeepers has totalled nearly 400; since 1989, about 200
Hungarian officers have served in various peacekeeping missions at U.N.
request, the spokesman said.
        At present, 18 Hungarian officers participate in four U.N. observer
groups.
        In view of the continued importance for Hungary to take part in U.N.
peacekeeping operations, last July the Hungarian Army set up a training
centre, which provided special training to 168 people last year.

Austrian-Hungarian Tourism Agreement

        Vienna, May 16 (MTI) - Tamas Schagrin, president of the National
Tourism Office in Hungary and Erich Musyl, tourism department head at the
Austrian Ministry of Economic Affairs, signed a protocol in Vienna on
Tuesday to promote cooperation in tourism between Austria and Hungary.
Schagrin is currently in Vienna as a member of the entourage of President
Arpad Goncz.
        The protocol includes a positive assessment of the two countries"
achievements in the field of tourism and sets down future objectives.
Accordingly, the two countries" tourism sectors will primarily cooperate in
the organization of joint programmes, in market research, and in offering
combined Austrian-Hungarian programmes to the travel agencies of third
countries.
        The protocol sets down that Hungary may benefit from Austria's
European Union membership, i.e. from the Interreg II (near-border
territories) and Leader II (rural development) programmes of Brussels.
        The two countries welcome the agreements signed so far to ease
border crossings and call for further measures.
        According to the protocol, in 1996 Hungary and Austria will prepare
together the following major programmes: the Budapest Bourse of
Countries Alongside the Danube, the Naturexpo, and "Hosted by Hungary".
        Fifty per cent of Hungary's tourism revenue is provided by Austria.
Last year Austrians spent 15 million nights in Hungary.

Parliament - Security of Tourists

        Budapest, May 16 (MTI) - State Secretary of Interior Gabor Vilagosi
was asked today in Parliament about the security of tourists visiting
Hungary, in connection with an article carried by the International Herald
Tribune which said Hungary was one of the most dangerous countries for
tourists.
        In his answer to Laszlo Varga, of the Christian Democratic People's
Party, Vilagosi said the figures published by the paper were unfounded. In
1993 and 1994 over 40 million tourists visited Hungary, of whom only 0.53
per cent were mugged or attacked.
        In 1994, altogether 14,035 criminal actions were reported to the
police, with only 6.1 per cent committed against foreigners.
        On the basis of these figures, it can be said that public order is
satisfactory in Hungary, and security is not any worse than in Western
European countries, the state secretary said.

Parliament Votes Down President's Election by Referendum

        Budapest, May 16 (MTI) - On Tuesday afternoon, Parliament
decided - with 251 votes for, 45 against and 11 abstentions - that the
president would be elected by the National Assembly, not by referendum,
also in the future.
        According to Jozsef Torgyan, parliamentary group leader of the
Independent Smallholders' Party, the decision violates the Constitution,
thus his party will turn to the Constitutional Court
for legal redress.
        Under the Hungarian Constitution, the president has to be elected
minimum 30 days before the presidential mandate in force expires, and in
case it terminates before due, the new president has to be elected in the 30
days following the termination of his predecessor's mandate. The date of
election is set by the Speaker of Parliament.
        The presidential election is preceded by nominations, which has to
be based on the written recommendations of at least 50 MPs. The
nominations have to be submitted to the Speaker of Parliament before the
call for voting.
        Every MP may support only one candidate. If more
recommendations are signed by the same MP, all of them are invalid.
Parliament elects the president by secret ballot.
        The election may have several rounds as only the candidate gaining
two-thirds of the vote wins. If such a majority is not obtained by any of the
candidates in the first round, a new election has to be held, with new
recommendations.
        If none of the candidates obtains two-thirds of the votes in the
second round, a third round has to follow. In the third round only two
candidates may run - those who got most of the votes in the second round.
In this round the candidate with more votes, regardless of the proportion of
the MPs voting, wins the election. The voting procedure has to be
completed in three subsequent days.
        The new president takes office as soon as his predecessor's
mandate expires. If the mandate terminates some other way, the new head
of state takes office eight days after the announcement of the election
result. Prior to this, the elected president takes the official oath before
Parliament.
        Arpad Goncz, the incumbent president, is supported by the two
biggest parliamentary parties, which form the government coalition: the
Hungarian Socialist Party and the Alliance of Free Democrats.
        The opposition parties still have not decided on their candidate. Ivan
Szabo, executive chairman and parliamentary group leader of the
Hungarian Democratic Forum, told journalists recently that in his view
President Goncz was the only candidate who had a real chance to win the
election.

Growth in Current Account Deficit Slows Down

        Budapest, May 16 (MTI) - In February this year, the deficit of
Hungary's balance of payments on current account amounted to USD 229
million, as compared with USD 359 million a month earlier, a National Bank
of Hungary (NBH) official told MTI today.
        So, in the first two months of the year, the current account deficit
totalled USD 588 million.
        The central bank attributes the decrease in the deficit to the
narrowing gap between imports and exports. In February, exports
amounted to USD 790 million, and imports to USD 1,066 million.
        Foreign direct investment through the banking system totalled USD
81 million in February.
        In the first two months of 1995, foreign direct investment totalled
USD 123 million, USD 15 million more than in the corresponding period of
1994.
        At the end of February the central bank's reserves amounted to USD
6.9 billion, while Hungary's gross foreign debt totalled USD 29.4 billion, and
its net foreign debt was USD 19.7 billion.

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

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

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



N E W S L E T T E R

=66rom the Daily Bulletin of the Hungarian News Agency MTI
distributed by the Department for Press and International Information
Ministry of Foreign Affairs, Republic of Hungary

H-1394, Budapest, P. O. B. 423.
Telephone: 36 (1) 156-8000
Telefax: 36 (1) 156-3801
No. 97/1995=09=09=09=09=09=09=0918 May 1995

Goncz in Austria - 2nd Day

=09Vienna, May 17 (MTI) - On the second day of his visit to Austria=
=20
President Goncz visited Vienna City Hall, conferred with Mayor Michae=
l=20
Haupl and signed his name in the Golden Book of guests, before visiti=
ng=20
the Austrian National Library, to view a collection evoking the time =
of the=20
Austro-Hungarian Monarchy.
=09In pouring rain President Goncz and President Klestil took a strol=
l in=20
the downtown area: at the request of the hosts, through their presenc=
e=20
before Stephansdom they laid greater emphasis on a drive to save and=
=20
renovate the church, a symbol of Vienna.
=09Later President Goncz visited Dobling, the one time sanatorium=
=20
where Count Istvan Szechenyi (a major figure of Hungarian history, sp=
iritual=20
leader of the 1825-48 Reform Age), committed suicide in circumstances=
 still=20
unclear to the present day.
=09From the late afternoon Goncz is the private guest of President=
=20
Klestil: he will spend the night at the Mursteg residence of the Aust=
rian=20
president before both go to Burgenland on Thursday.

=09On Wednesday President Goncz met Chancellor Franz Vranitzky=20
who said Austria would support Hungary's EU membership at the 1995=
=20
review conference. Minister without portfolio Tamas Suchman, responsi=
ble=20
for privatization, met Austrian businessmen showing an interest in=
=20
Hungarian privatization, in Vienna today.


Hungarian Defence Minister in Washington

=09Washington, May 17 (MTI) - During his recent talks in Washington,=
=20
Hungarian Defence Minister Gyorgy Keleti experienced strong support f=
or=20
Hungary's endeavour to join NATO and transform its armed forces.
=09Keleti held negotiations with Secretary of Defence William Perry.=
=20
They agreed that a basic Hungarian military unit would take part in a=
 U.S.=20
military exercise to be held under the auspices of the Partnership fo=
r Peace=20
scheme in August this year.
=09The U.S. Secretary of Defence was particularly interested in=20
Hungarian-Romanian relations and, within that, military ties. Perry s=
aid the=20
USA would be prepared to promote the expansion of cooperation between=
=20
the two countries, and promised to help establish a hot line between=
=20
Budapest and Bucharest.

=09The Americans seem to be satisfied with Hungary's efforts within t=
he=20
Partnership for Peace scheme and, in general, expect NATO to be=20
enlarged by the turn of the century, Keleti said.
=09The two sides agreed that the crisis in Yugoslavia should be settl=
ed=20
by political means. The Americans praised the role the Hungarian=20
government is playing as OSCE Chairman-in-Office in trying to resolve=
 the=20
conflict in Croatia, Keleti said.
=09William Perry indicated that he would visit Hungary within a year'=
s=20
time and, if possible, before the end of this year, the Hungarian min=
ister=20
said.
=09Before his talks at the Pentagon, Keleti had talks with Deputy=
=20
Secretary of State Richard Holbrooke, who emphasized the need to rati=
fy=20
the Hungarian-Slovak basic treaty, and develop U.S.-Hungarian militar=
y=20
relations.
=09Holbrooke described Russia's readiness to join the Partnership for=
=20
Peace scheme as a major step forward. He added that the admission of=
=20
Central European countries to NATO was advancing separately from the=
=20
U.S.-Russian dialogue.
=09After visiting the Congress, Keleti gave a brief introductory talk=
 at the=20
University for National Defence, and replied to questions on the=20
enlargement of NATO and the economic aspects of Hungary's admission t=
o=20
the military alliance.
=09Keleti will visit the U.S. Navy Headquarters in Norfolk on Wednesd=
ay=20
and the National Guard in Ohio State on Thursday.


NATO MPs Meet in Budapest on Expansion

=09Budapest/Brussels, May 17 (MTI) - The North Atlantic General=20
Assembly, the interparliamentary general meeting of NATO, will hold i=
ts=20
spring session in Budapest from May 26 to 29 - the first time that th=
e=20
Alliance will meet outside its traditional sites.
=09MPs from 16 member countries of the NATO, and associate
delegations from 15 countries of Eastern Europe will attend, with=
=20
parliamentary observers from five countries.
=09Five committees (defence, political, economic, civil affairs, scie=
ntific=20
and technical) will meet on Saturday and Sunday, May 27 and 28, and h=
old=20
a plenary session on Monday, May 29.
=09The latest developments in Russia, the continuing conflict in the =
one-
time Yugoslavia, regional security issues, transatlantic cooperation =
and the=20
development of parliamentary democracy in Eastern Europe will be=20
discussed. The plenary session on May 29 will be opened by Zoltan Gal=
,=20
speaker of Parliament, with a speech from Prime Minister Gyula Horn.
=09Also addressing the session will be Ambassador Sergio Balanzino,=
=20
deputy general secretary of NATO, German Defence Minister Volker Ruhe=
,=20
and Richard Holbrooke, U.S. deputy secretary of state responsible for=
=20
European and Canadian affairs. Committee sessions will be addressed b=
y=20
Defence Minister Gyorgy Keleti, Finance Minister Lajos Bokros, and=
=20
Foreign Minister Laszlo Kovacs.
=09Other contributors to the committee sessions will include Csaba=
=20
Tabajdi, secretary of state responsible for the government's minority=
 affairs,=20
Sergei Rogov, chairman of the Moscow-based Centre of National Securit=
y=20
Issues and International Relations, and Stephen Larrabee, leading ana=
lyst=20
of RAND Corporation.

=09Other contributors will include John Maresca, chairman of the=20
Prague-based Open Media Research Institute, Yevgenyi Volk, coordinato=
r=20
to the Moscow bureau of the Heritage Foundation, Sergei Batsanov,=
=20
director responsible for external relations at the Hague OPCW Provisi=
onal=20
Technical Secretariat, and Paul C. Rambaut, responsible for scientifi=
c and=20
environmental affairs, attached to the secretary general of NATO.
=09Before the start of the session, a press conference will be staged=
 in=20
Parliament at noon on May 26, to be addressed by Kasten Voigt, chair =
of=20
the North Atlantic General Assembly, Zoltan Gal, Speaker of the Hunga=
rian=20
Parliament, Jen=F5 Racskay, head of the Hungarian delegation to the N=
orth=20
Atlantic General Assembly, and Peter Corterior, North Atlantic Genera=
l=20
Assembly general secretary.

=09Karsten Voigt told reporters in Brussels today that the North Atla=
ntic=20
General Assembly would hold a plenary session for the first time on t=
he=20
territory of a non-NATO member country.



Minister of Culture in Mexico

=09Mexico City, May 17 (MTI) - Hungarian Minister of Culture and=20
Education Gabor Fodor is currently in Mexico on an official visit.
=09He is expected to meet Secretary of Foreign Affairs Jose Angel=
=20
Gurria, Secretary of Public Education Miguel Limon Rojas as well as=
=20
Gustavo Guerrero Ramos, Chairman of the Senate's Education Committee.
=09During his visit, Fodor will sign the Hungarian-Mexican Educationa=
l=20
and Cultural Cooperation Programme.
=09From Mexico City, Fodor will go on to Caracas to have talks with h=
is=20
Venezuelan counterpart. He will visit the Venezuelan Academy of Scien=
ces=20
to attend a ceremony at which Hungarian President Arpad Goncz will be=
=20
made an honorary member. Later, he will attend a forum at which an ed=
ition=20
of President Goncz's writings in Spanish will be introduced.


Hungarian-Israeli Economic Talks

=09Budapest, May 17 (MTI) - A free trade agreement for Hungary and=
=20
Israel could double current USD 60 million a year two-way trade, said=
=20
Minister of Industry and Trade Laszlo Pal at a press conference after=
 talks=20
with Israeli Minister of Trade and Industry Miha Haris.
=09Talks on reaching a free trade agreement will resume in June.
=09Bilateral trade is not balanced: Hungarian exports in 1994 totalle=
d=20
USD 26.7 million, and imports USD 33.2 million.
=09In the first three months of 1995 Hungarian exports totalled USD 8=
.8=20
million and imports USD 11.7 million.
=09Israeli investment in Hungary is worth USD 180 million, and 50=
=20
Hungarian-Israeli joint ventures operate in Hungary in banking, trade=
, food,=20
medical science, telecommunications, and tourism.
=09Talks between Israel Aircraft Industries and Antenna Hungaria have=
=20
reached an advanced stage on implementing a Hungarian-operated=20
regional communication satellite project. The satellite to be launche=
d is=20
planned to be a twin satellite of the Israeli Amos, and this will ess=
entially
cut=20
the costs of operation.
=09The overall value of implementing Magyarsat will be around USD=
=20
160 to 180 million, with a USD 10 million guarantee underwritten by t=
he=20
Hungarian government. Work is due to start in 1996.



Tabajdi's Talks with Minority Leaders

=09Budapest, May 17 (MTI) - The deed of foundation for the National=
=20
and Ethnic Minorities Public Endowment has been worded and can be put=
=20
to the government in a few weeks' time, announced Csaba Tabajdi,=20
parliamentary state secretary at the Prime Minister's Office, at a Bu=
dapest=20
press conference on Wednesday, after talks with leaders of the nation=
al=20
self-governing bodies of minorities.
=09The minorities' top officials want the HUF 70 million allocated to=
 be=20
given to the national bodies immediately so that they can distribute =
it=20
proportionately to minority local authorities.
=09Tabajdi assured them he would support the minorities" plan, which=
=20
attaches conditions to the pay-out, against the Ministry of Finance=
=20
proposals.


Minister of Welfare Meets Archbishop of Esztergom

=09Budapest, May 17 (MTI) - Minister of Welfare Gyorgy Szabo today=
=20
met Cardinal Primate Laszlo Paskai, Archbishop of the Principal Dioce=
se of=20
Esztergom-Budapest, at the Ministry of Welfare, the ministry's press =
office=20
informed MTI.
=09Szabo expressed his thanks and recognition of the work done by the=
=20
Catholic Church in helping health and welfare institutions.
=09Szabo also said he supported an initiative that the Roman Catholic=
=20
Church, by relying on the institutions it owns, should accept greater=
=20
responsibility for patient care. A successful independent Catholic ho=
spital=20
would be a major step forward.

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

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

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




#+--------------------------------------------------------------------+
#|    A Magyar Nemzeti Bank hivatalos deviza- es valutaarfolyamai     |
#|      Official exchange rates of the Hungarian National Bank        |
#|    Az adatok tajekoztato jelleguek, felelosseget nem vallalok.     |
#| Az esetleges hibakert elnezest kerek. Velemenyeket es javitasokat  |
#|                       szivesen fogadok.                            |
#|     FYI, no responsibility. Opinions, corrections are welcome.     |
#+----------------------------+---------------------------------------+
#|     vetel/BUY  eladas/SELL |  A kereskedelmi bankok arfolyamsavjai |
#| USD  118-120     125-130   |       Rates of commercial banks       |
#| DEM   81-84       87-91    |                 (HUF)                 |
#+----------------------------+---------------------------------------+
#
# VALUTA; ATLAG; VETEL; ELADAS; EGYSEG; MEGJEGYZES
# TYPE;   MEAN;  BUY;   SELL;   UNIT;   REMARKS
DATE=1995-MAY-19
UNIT=HUF
SOURCE='NAPI Gazdasag, 1995-MAY-20, p.11'
GBP;  197.96;  196.46;  200.34;    1;  angol font (skot es eszakir is)
AUD;   90.16;   89.62;   91.42;    1;  ausztral dollar
BEF;  424.52;  421.13;  429.73;  100;  belga (es luxemburgi) frank(100)
DKK;   22.34;   22.16;   22.62;    1;  dan korona
FIM;   28.64;   28.36;   28.94;    1;  finn marka
FRF;   24.66;   24.43;   24.93;    1;  francia frank
GRD;    0.00;   53.78;   54.86;  100;  gorog drachma(100) (kozepar nincs)
NLG;   78.08;   77.34;   78.92;    1;  holland forint
IEP;  201.72;  199.36;  203.32;    1;  ir font
JPY;  145.09;  143.73;  146.65;  100;  japan jen(100)
CAD;   92.74;   91.86;   93.64;    1;  kanadai dollar
KWD;  422.32;  418.38;  426.64;    1;  kuvaiti dinar
DEM;   87.39;   86.62;   88.40;    1;  nemet marka
NOK;   19.65;   19.48;   19.88;    1;  norveg korona
ITL;   75.94;   75.23;   76.71; 1000;  olasz lira(1000)
ATS;   12.43;   12.31;   12.57;    1;  osztrak schilling
PTE;   83.20;   82.47;   84.13;  100;  portugal escudo(100)
ESP;  100.56;   99.82;  101.82;  100;  spanyol peseta(100)
CHF;  104.81;  103.84;  105.98;    1;  svajci frank
SEK;   17.07;   16.89;   17.23;    1;  sved korona
USD;  125.85;  124.74;  127.16;    1;  USA-dollar
XEU;  161.44;  159.76;  163.00;    1;  European Currency Unit (ECU)