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1 Hungarian Ministry of Foreign Affairs - Newsletter (4) (mind)  603 sor     (cikkei)
2 Hungarian Ministry of Foreign Affairs - Newsletter (5) (mind)  568 sor     (cikkei)

+ - Hungarian Ministry of Foreign Affairs - Newsletter (4) (mind) VÁLASZ  Feladó: (cikkei)

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
540/1994.                                       Budapest, November 28, 1994

Hungarian Press Review

        Budapest, November 24 (MTI) - THE national daily NEPSZABADSAG
reports that the visit of U.S. President Bill Clinton to Budapest will be so
brief that he will not be able to meet separately with the Hungarian
president and prime minister. Clinton is expected to meet with the
Hungarian leaders together, spending about 20 minutes with them.

        The leaders of the International Exhibition Bureau (BIE) are to arrive
Hungary next week, according to information carried in NEPSZABADSAG.
The Hungarian government will only then officially announce the
cancellation of the 1996 World Expo. Various experts told the daily that the
announcement has not been made yet because the authenticity of
signatures collected for a referendum on organizing the Expo has only
recently been verified.

        "The created coalition is an arguing one, in which dominance does not
follow the proportion of mandates won," according to the media expert of
the Hungarian Socialist Party, MP Gabor Kiss Gellert. In an interview with
the daily NEPSZAVA, he said the power should not wage its conflicts in
public, rather it should hold these within political frameworks.

        According to calculations by the Ministry of Welfare, nearly 1.5 millio
people will ask for compensation following the rise in energy prices, the
Ministry's political state secretary, Mihaly Kokeny, said in an interview with
the daily MAGYAR HIRLAP. They estimate that HUF 1,000 will be granted
per person to those requesting compensation.

        The introduction of new traffic safety regulations, including the trial

driver's license, can take place next year, police Lieutenant-Colonel Miklos
Kemenes said in an interview with MAGYAR NEMZET. He characterized the
current efforts of the authorities by saying they are trying to change the
human factors, as the present economic situation does not make it feasible
to increase safety with various financial investments.

Hungarian and Polish Prime Ministers Meet

        Warsaw, November 24 (MTI) - HUNGARIAN Prime Minister Gyula Horn,
arriving in Warsaw on an official visit, held a one-hour discussion with his
Polish counterpart, Waldemar Pawlak, in the Prime Ministers Office this
morning, which was followed by plenary talks.

        At a news conference given afterwards by the two heads of
government Horn said that the negotiations had focused on bilateral
relations, mainly business links. Agreement had been reached on a number
of themes, and the two competent ministers were authorized to start
immediate talks on these, he said.

        Horn said they had also discussed the Visegrad cooperation scheme
and its future prospects, and both believed that it should be maintained,
and possibly strengthened, in the political, economic and other spheres.

        As for the European Union (EU), the two prime ministers noted with
regret that the EU had failed to invite the six associated countries to the
Essen summit. "We hope this is not an indication of the lack of attention
the summit will pay to cooperation with Central and Eastern European
countries," Horn added.

        Horn said he had agreed with Pawlak that the two countries should
submit joint cooperation proposals to the Union, and press for an intensive
dialogue with Moscow on their entry into NATO. This is deemed necessary
for dispelling the misunderstandings and reservations some Russian
leaders have expressed toward the membership of the two countries in

* * *

        Warsaw, November 24 (MTI) - PAWLAK said the talks had reflected
complete agreement that trade barriers must be dismantled so as to benefit
both sides. Poland also has an interest in developing all forms of
cooperation within the Visegrad group, he added.

        Poland considers NATO membership to be of crucial importance in
maintaining European security. "I think that the forthcoming Budapest
summit of CSCE countries will also offer an opportunity to discuss
questions related to European security," Pawlak said.

        Horn later laid a wreath on the tomb of the unknown soldier, and
then attended a gala dinner hosted by Pawlak in Belwedere restaurant in
Lazienki park.

New customs regulations from January

        Budapest, November 24, 1994 (MTI-ECONEWS) - From January 1, the
ban on importing cars more than six years old will be extended to non-
financial contributions to companies, under new draft regulations prepared
by the Ministry of Finance to be published in December.
        The new rules also stipulate that in the case of listed goods the duty
will be calculated on the basis of the stock exchange price and not on the
basis of the invoice. In addition, only production companies may be
established in duty-free areas.

        Commander of the Vas-Zala County Customs and Excise Office Zoltan
Simon told reporters that as the government will not submit the unified
customs law to Parliament before February 1995, the authorities will
operate under regulations contained in a Ministry of Finance decision made
in 1976, which has been amended almost 200 times. According to new
regulations duty will have to be paid on the spot, rather than within 30 days,
for goods imported by passenger transport. Companies or private
businesses that hold a tax or bank account may pay only through a bank
transfer, cash will not be accepted. In addition, guarantees will have to be
placed against the duty plus the tax on the goods.

        In the case of goods transported through Hungary in transit, 15pc of
the value of goods must be deposited as a guarantee. The customs office
will accept a declaration of surety for guarantee, if it is granted by a
financial institution or a company considered trustworthy by the customs
office. Cash guarantees will be refunded within 30 days after expire. In case
the repayment is delayed, interest is double the central bank base interest.

        Goods imported to Hungary through pipelines will have to be declared
daily from January 1. Currently the imported volume is declared on a
monthly basis.

        Illegal trading with imported goods will be made more difficult by a
new regulation that imported goods will be exempt of duty only if they are
destroyed by accident or leave the property of the importer through an act
of violence. Consequently duty will still have to be paid on a car which is

President Clinton Expected to Make Speech in Parliament

        Budapest, November 24 (MTI) - PRESIDENT Bill Clinton is expected,
according to preliminary plans, to make a speech in the Hungarian
Parliament between 3.15 and 3.45 p.m. on Monday, December 5, Maria
Korodi, Deputy Speaker of the Hungarian Parliament told MTI today,
following a meeting of the House Committee.

        Ms. Korodi added that consultations about Clinton's address were still
going on, but a final decision was expected to be made at the weekend.

        Ms. Korodi also said that the American President's possible
participation in the plenary session of Parliament was a Hungarian
initiative. Special security measures will be in operation while President
Clinton is in Parliament.
Another German Military Shipment for Hungary

        Bonn, November 24 (MTI) - AN AGREEMENT on yet another free
shipment of military equipment and components from the stocks of the
former East German army was signed by Karoly Janza, deputy state
secretary at the Hungarian Defence Ministry, in Bonn today. Talking to
Hungarian journalists about his talks with German Defence Ministry
officials, Janza said the previous very considerable shipments, which came
from the stocks of the former East German army, are even today playing a
major role in maintaining the operational capability of the Hungarian armed

        The largest part of the next shipment, which will probably be the last
of its kind, will consist of main units and components for L-39 type training
planes, which were sent previously. This will help to guarantee the future
training of pilots

        Janza said it was difficult to give an accurate figure for the value of
shipment, due to be transported to Hungary later this year, since it includes
used military equipment, but it is important for maintaining the operational
capacity of the armed forces.

        Janza also said that Hungarian-German military cooperation had made
steady progress in recent years, but an institutional framework for it should
be created as soon as possible.

        The two sides intend to regulate in a comprehensive agreement the
type of assistance Germany will extend to the Hungarian armed forces in
order to meet the structural and operational conditions
vital for admission to NATO.

        The two sides are also discussing the possibilities for cooperation in
research and development, and how to regulate the assistance that
Germany gives to Hungary for military training. In Bonn, both sides agreed
on the need to sign a confidentiality agreement as soon as possible, since
it is a precondition for furthering bilateral relations.

        They also plan to set up a cooperation committee following the
signing of a cooperation agreement between the two ministries, Janza told

Prime Minister Horn Holds Talks in Warsaw

        Warsaw, November 24 (MTI) - HUNGARIAN Prime Minister Gyula Horn,
currently on a visit to Warsaw, held talks with the marshal of the Seim and
the Senate in the Polish Parliament building on Thursday afternoon.

        During discussions with Jozef Oleksy, speaker of the Seim, Horn said
that none of the countries wishing to join the European Union could meet
the terms for entry solely by their own efforts.

        For this, help is needed from the member countries of the Union, but
Horn feels reservations on the part of the Union towards Central Europe.
One of the signs of this is that the associate countries have not been
invited to attend the Essen summit.

        As regards NATO, he described as historic the position taken that
within a few years both countries could become members of NATO, but the
question was, what Moscow had to say to this, because Russian
reservations have become more pronounced.

        He said a more intense dialogue was needed to dispel Russian
concerns, and the CSCE Budapest summit meeting would provide a fine
opportunity for this.

        While speaking in favour of further developing cooperation between
the Visegrad Four (Hungary, Poland, the Czech Republic and Slovakia),
Horn warned against a hasty expansion.

        For his part Oleksy pointed out that the two countries were at a simila
stage in their transformations and their goals were similar, which should
encourage them to forge closer and more intense cooperation.

        Later Horn and Adam Struzik, Speaker of the Upper House, discussed
questions primarily affecting the Hungarian and Polish parliaments.

* * *

        Budapest, November 24 (MTI) - AFTER his visit to the Seim, the
Hungarian Prime Minister received at his residence Polish Foreign Minister
Andrzej Olechowski, and discussed with him questions concerning the
Visegrad Four, the European Union and NATO.

        Later Olechowski stressed that cooperation between the two countries
is becoming more and more important since the creation of conditions for
admission to both the European Union and NATO, largely depended on the
efforts of the associate countries themselves.

        Early Thursday evening Prime Minister Horn was received by
President Lech Walesa at the presidential palace. President Walesa called
for more solidarity and closer cooperation between the two countries.

        For his part Prime Minister Horn outlined Hungary's position on
European integration.
        In the evening, at the end of his visit, Prime Minister Horn was given
ceremonial farewell by Polish Prime Minister Waldemar Pawlak outside the
government building.

        Once the official part of his visit had ended, the Prime Minister held
separate talks with the representatives of the major parliamentary parties:
with Aleksander Kwasniewski, head of the Democratic Left Alliance,
Tadeusz Mazowiecki, head of the Democratic Union and Ryszard Bugaj,
head of the Union of Labour.

Press Review

        Budapest, November 25 (MTI) - "Magyar Hirlap" covers the
preparations Hungary's national minorities are making for the local
elections to be held on December 11. The article reveals that while the
Gypsies are the most active, in Miskolc, for instance, a Greek local
government is also intended to be set up.

        "There is no notable force in the Hungarian Socialist Party that would
consider calling Miklos Nemeth back to Hungary," HSP deputy chairman
Laszlo Mate said to "Nepszabadsag". In his opinion, chairman Gyula Horn
has an immense reputation within the party.

        According to Peter Zwack, both as a businessman and member of
parliament, regaining eastern markets is an important aim of the
government"s policy. Speaking to "Nepszabadsag", the only independent
member of Hungary's Parliament outlined his plans to invest in Russia and
the economic potential the region holds for Hungary.

        "Hungary has to proceed towards NATO membership not together
with other countries but according to its own political intention,
determination and specific conditions," Defence Minister Gyorgy Keleti told
"Magyar Nemzet". On his trip to Romania, he said that in the basic treaty an
exemplary agreement would have to be concluded in respect of national

        Andras Derzsi, transport minister in the former Nemeth cabinet, will be

the new president of MALEV Rt, "Kurir" reports, adding that the company
still has no managing director. According to the newspaper, the co-owner
Alitalia would like to keep Andras Pataky as managing director.

        "Nepszabadsag" carries an article on the increasing number of
domestic and international education institutions that charge high tuition
fees in Hungary. The author believes students in some of these get very
poor education for fees ranging from 45,000 to 300,000 forints.

Draft CSCE Summit Programme

        Budapest, November 25 (MTI) - ACCORDING to provisional plans, U.S.
President Bill Clinton will address the Hungarian Parliament on Monday,
December 5, between 3.15 and 3.45 p.m.

        The summit meeting of the Conference on Security and Cooperation in
Europe (CSCE), to be held in Budapest on December 5-6, will be attended
by top leaders from almost all member countries, but it is still unclear
whether they will sign a final document and, if they do, what its contents
will be.

        At a news conference on Friday, Istvan Gyarmati, head of Hungary's
CSCE delegation and executive secretary of the CSCE review conference,
said the participants at the review conference were currently busy drawing
up a political statement and a related proposal. The final document, if there
is one, will be signed at around noon on Monday, December 5.

        According to plans, the summit will begin with a plenary session at 9
a.m. on Monday, December 5. Hungary's Prime-Minister will welcome the
participants, and then the prime minister of Italy, the outgoing CSCE
president, will take the floor, followed by the U.N. Secretary-General.

        After the formal opening by the president of the CSCE's parliamentary
assembly, the heads of the participating countries will address the plenary

        The heads of state and government present will attend a lunch given
by the Hungarian prime minister, hold a plenary conference in the
afternoon and attend a gala dinner hosted by the Hungarian President
Arpad Goncz. The plenary meeting will be complemented by bilateral and
multilateral talks.

        Commenting on the review conference, which has been going on in
Budapest since October 10, Gyarmati said that more attention should be
paid to monitoring the implementation of CSCE decisions, such as
recommendations concerning the national minorities.

Prince Takamado Meets President Goncz

        Budapest, November 24 (MTI) - JAPANESE Prince Takamado met
President Arpad Goncz on Friday, the opening day of his three-day visit to
Hungary. Earlier in the day his Royal Highness placed a wreath at the
Monument to Hungarian Heroes in Heroes" Square.

        While the Japanese prince conferred with the Hungarian head of state,
his wife, Princess Takamado visited the Peto Institute. Andras Farago,
presidential spokesman, gave a summary of the talks between the
Hungarian president and the Japanese prince as follows:

        President Goncz stressed that for Hungary it was exemplary the way
Japan was able to blend modernization and tradition.

        Moreover Japanese culture, held in high esteem worldwide, has
greatly helped enhance the international prestige of Japan. Japan is also
regarded in Hungary as an economic, political and cultural great power.

        In connection with the development of cultural relations, President
Goncz stressed that Hungary would willingly adopt the Japanese method of
teaching the fine arts.

        He also mentioned that by virtue of an exchange agreement between
the two countries six Japanese and six Hungarian students could pursue
studies in the other country. In addition Japan has played a major part in
training Hungarian specialists. Commenting on economic links, President
Goncz stressed the significance of the investment made by Suzuki, and
expressed the hope that similar programmes could be carried out in
Hungary in the near future.

        Referring to the forthcoming celebrations of the 1100th anniversary of
the settling of Hungary by the Magyars, President Goncz said it would be a
good idea if a Japanese festival were staged in Hungary to mark the
occasion - in return for the Hungarian cultural week that was staged in
Japan two years ago.

        He also recalled that Japanese Emperor Akihito has a standing
invitation to visit Hungary, which President Goncz repeated today. He
added that if the emperor could not accept the invitation, Crown Prince
Nairhito would be welcome in Hungary. Prince Narihito paid a private visit
to Hungary 10 years ago.

Hungarian-Polish Agreement on Expulsions Signed in Budapest

        Budapest, November 24 (MTI) - HUNGARIAN Minister of the Interior
Gabor Kuncze and the Polish Minister of the Interior Andrzej Milcznowski
signed an agreement on expulsions here today.

        Under the agreement each party will receive back those persons
staying unlawfully in the country of the other party to the agreement, after
proof that they are not citizens of the country in question.

        The agreement also applies to immigrants and displaced persons
coming from countries other than Hungary and Poland.

        After signing the agreement, Milczanowski said cooperation between
the police forces of the two countries could be widened primarily in the
fight against foreign criminals.

        An argument for this is that Hungary and Poland are exposed to
identical threats in this area.

        For his part Kuncze added that there was complete trust between the
two ministries, which can provide a good basis for further cooperation.

        The two parties also agreed that bodies under the authority of the
ministries of the interior should be able to cooperate directly in certain

CEFTA Summit Opens - Horn Makes Speech

        Poznan, November 24 (MTI) - THE first ever summit meeting of the
Central European Free Trade Agreement (CEFTA) attended by prime
ministers opened in Poznan, Friday morning. The fact that this is
considered to be the first summit indicates that the participants treat the
Visegrad Group and the CEFTA, which originally regulated cooperation
between them, as separate.

        Slovenian Prime Minister Janez Drnovsek has been invited to attend
the summit. Hungarian Prime Minister Gyula Horn arrived from Warsaw
after winding up a day-long visit to Poland on Thursday night.

        In his contribution Horn pointed out that CEFTA had been modified
only recently, and it would not be advisable to introduce changes at this

        At the same time he stressed that he supported further liberalization,
but this should extend to agricultural products.

        He rejected charges by Czech Prime Minister Vaclav Klaus: the CEFTA
countries had been informed by the Hungarian government in advance, but
none of them had requested consultations on the matter of agricultural
customs tariffs.

        Horn pointed out that other countries often protected their domestic
products with tougher methods than the use of customs tariffs.

        Horn supported a Polish draft on expanding the CEFTA, but he
considers this to be separate from the Visegrad Group, the continuation of
whose political and economic cooperation he considered important
regardless of the CEFTA.

        He proposed that the CEFTA coordinate its moves with the European
Union and link up with the trans-European network in the fields of
electricity, environmental protection and transport. He called for an
examination of the problem which arose from certain CEFTA countries
losing certain advantages by being admitted to the European Union, in
particular he was referring to Austria.

        Horn said the European Union should give more signs of their
appreciation of the achievements made by the Visegrad Group to date. But
in fact the indications are that the EU has become less active. Evidence of
this is the fact that the associate countries have not been invited to attend
the Essen summit.

        Horn supported a proposal by Vaclav Klaus calling on the CEFTA to
establish links with other economic regions such as ASEAN and the
Benelux states.

Prince Takamado's Talks with Hungarian Foreign Minister

        Budapest, November 25 (MTI) - HUNGARIAN Foreign Minister Laszlo
Kovacs held talks on Friday with Prince Takamado, who is currently visiting
Hungary at the invitation of President Arpad Goncz, the Foreign Affairs
spokesman told MTI.

        The prince is the first member of the Japanese imperial family to pay
an official visit to Hungary.

        Kovacs described the visit as an expression of interest in Hungary,
and emphasized the significance of such types of personal contacts.

        The minister underlined the importance of Hungarian-Japanese
relations, and expressed appreciation for Japan's political, moral and
financial support for Hungary's economic and social transformation.

        Prince Takamado said that during his stay here he would like to
become acquainted with the country, its people and the masterpieces of
Hungarian culture.

        As an honorary member of the Japanese Foundation Board, the prince
spoke satisfactorily of the foundation's regional office, which recently
opened in Budapest.

        Both parties stressed the importance of human contacts in a further
rapprochement between the two peoples, which may be developed through
scholarships, cultural exchanges and the promotion of tourism.

        Kovacs expressed hope that Budapest may be host for the third
Japanese Festival, in 1996.

Police Chiefs Propose Establishing Europol

        Budapest, November 25 (MTI) - CONCLUDING a two-day consultation
in Budapest today, the police chiefs of Vienna, Berlin, Munich, Bratislava,
Prague and Budapest proposed setting up Europol, a regional organization
for criminal investigation.

        At a news conference today, they said that with the opening of borders
the police forces in the region should cooperate more closely, more
efficiently and less bureaucratically against the international gangs that
seek to acquire "new markets" by increasingly violent and sometimes even
brutal actions.

        The police chiefs described the emergence of eastern criminals and
their frequent, bloody showdowns as alarming.

        Such showdowns are usually held by the Vietnamese in Berlin, the
Chinese in Prague and the Russians and Ukrainians in Budapest.

        In reply to questions, they said the enlargement of the European
Union would make it necessary to harmonize national laws and extend the
investigators" scope of authority.

        Police Chief Janos Bodracska of Budapest said the introduction of
visa obligation would do little in preventing international crime, and would
be incompatible with the rules of the European Union.

Japanese Prince Ends Visit to Hungary

        Budapest, November 27 (MTI) - JAPANESE Prince Takamado and his
wife, Princess Hasiko, made a trip to the Danube Bend, north of Budapest,
on Sunday, the third and final day of their visit to Hungary.

        In Esztergom, they visited the local factory of the Hungarian Suzuki
Company, the Christian Museum, which is the richest rural art collection in
the country, and Hungary's largest and most prestigious church, the

        After seeing the sights of Visegrad and Szentendre, the prince and
princess left the Hungarian capital late this afternoon. Prince Takamado
was the first member of the Japanese imperial family to visit Hungary.
During their 12-day tour of Central Europe, the princely couple will now
travel to Poland and Austria.

Members of Hungarian Parliament Visit Brussels

        Budapest, November 27 (MTI) - MEMBERS of the Hungarian
parliamentary committee for European integration affairs, led by chairman
Viktor Orban, of the Federation of Young Democrats, left for Brussels on
Sunday to attend the second session of the European Union-Hungary
Association Parliamentary Committee.

        They will also meet Hans van den Broek, European Commissioner for
Eastern and Central Europe.

        The conference will be attended by Istvan Szent-Ivanyi, parliamentary
Secretary of State at the Ministry of Foreign Affairs, and Attila Karoly Soos,
parliamentary Secretary of State at the Ministry of Industry and Trade.

Government Wants to Privatize Leading State Companies

        Budapest, November 27 (MTI) - AT its Sunday session, the Hungarian
government adopted a plan on privatizing five large state companies: the
Hungarian Electricity Works, the Hungarian Oil and Gas Industry Company,
the five rural gas-supplying firms, Antenna Hungaria and the Hungarian
Telecommunications Company (MATAV).

        Speaking to journalists after the meeting (it was held today because of

the prime minister's state visit to Poland on Thursday), privatization
government commissioner Ferenc Bartha said that the Hungarian
Electricity Works would remain in state ownership in 50 plus one per cent.
The state will retain full ownership of the Paks Nuclear Power Station, the
national cable system, the export and import rights and the distribution

        Firms supplying and producing power will be passed into private
hands in totality, with only one special share to be kept by the state - in
case the future privatization law will also provide so.

        Fifteen per cent of the shares for privatization would be offered for
compensation coupons.

        As for the Hungarian Oil and Gas Company (MOL), the state intends to
keep 25 plus one per cent in the long run and sell 30 per cent to two or
three investors by concluding long-term shareholder's agreements with
them. The remaining stakes are to be sold to small investors via the stock
exchange. According to Bartha, it is extremely important that MOL will not
split and even the foreign trade company trading in oil and gas will come
into its ownership.

        Of the five rural gas companies, the state wishes to keep one special
share, with 50 plus one per cent to be sold to professional investors and
the remainder privatized through the stock exchange.

        The majority stake in Antenna Hungaria would be sold to professional
investors in one go, and, parallel to this, there would be negotiations on a
concession agreement. Should a satisfactory contract be reached, 25 plus
one per cent of the company would remain state property and the rest

        Of its 67 per cent stake in MATAV, the state would retain 25 plus one
per cent; its introduction onto the stock exchange is planned for 1996.

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.

+ - Hungarian Ministry of Foreign Affairs - Newsletter (5) (mind) VÁLASZ  Feladó: (cikkei)

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
541/1994.                                       Budapest, November 29, 1994

Hungarian Press Review

        Budapest, November 28 (MTI) - ACCORDING to "Magyar Hirlap",
Alliance of Free Democrats (AFD) Chairman Ivan Peto described as an
unfriendly step Prime Minister Gyula Horn's decision to hold a vote on
setting up a Children and Youth Coordination Council, albeit Interior
Minister Gabor Kuncze (AFD) said the matter should be discussed by the
two parties of the governing coalition (page 1). According to
"Nepszabadsag", neither Peto nor Kuncze denied that the decision was
lawful but warned that a series of such cases might lead to the breakup of
the coalition (page 1).

        "An economic policy which ignores human needs is wrong," Ivan
Szabo, Hungarian Democratic Forum (HDF) Executive Chairman and former
finance minister, told "Nepszava". He believes that if the government are
unable to reach an agreement with the unions, and reject the pay demands
of the railwaymen, public employees and teachers, in an attempt to save
money, the subsequent wave of strikes might scare off foreign investors.

        Szabo said the success of the three opposition parties (HDF, Young
Democrats, Christian Democrats) in the December 11 municipal election
would prove the viability of long-term cooperation.

        In the executive chairman's view, his party may retain 15,000 to
20,000 members after the revision of membership. (page 1-2)

        "Initially, the Socialist International (SI) did show some reservations

towards the new East European parties which called themselves social
democratic. It believed that they were communist parties which had
changed their names but kept their original ideologies," Hungarian Foreign
Minister Laszlo Kovacs told "Magyar Nemzet" before the forthcoming SI
conference, which will take place in Budapest this week. "The Hungarian
Socialist Party (HSP) played a considerable role in changing this view
because it was the first of the ex-communist parties in the region to
establish ties with the SI," he said.

Hungarian-French Military Talks Begin in Budapest

        Budapest, November 28 (MTI) - THE Hungarian-French joint military
committee started its 4th session in the Defence Ministry today, the
ministry's press department told MTI today.

        The Hungarian delegation is led by Laszlo Borsits, Deputy State
Secretary of Defence, and Air Brig.-Gen. Pierre Wiroth, Deputy Chief-of-
Staff of the French armed forces, leads the French delegation.

        The delegations will examine the results of Hungarian-French
military cooperation this year, and discuss a framework for cooperation
next year.

        The French will be informed about the reorganization of the
Hungarian Defence Ministry, how the government programme is
progressing, the state of the Hungarian Armed Forces and the tasks facing
them, and Hungary's relations with NATO and the Western European Union.

        The French delegation will brief their Hungarian hosts on plans for
military legislation over the next six years, the organizational and command
structure of the French Armed Forces, and their experiences in
peacekeeping activities.

Government decides on five major privatizations

        Budapest, November 28, 1994 (MTI-ECONEWS) - At its meeting on
Sunday, the government adopted its privatization strategy for MATAV Rt
(Hungarian Telecom), the broadcasting company Antenna Hungaria Rt, the
oil and gas company MOL Rt, the electricity company MVM Rt and
Hungary's five regional gas supply companies.

        The state will retain a 50pc plus one share stake in MVM Rt, which
will be slimmed down to comprise the Paks nuclear power station, the
national grid, the export and import of electricity and the load distribution
system. Power generating and supply companies will be separated from
MVM and wholly privatized apart from a golden share to be retained by the
state. Hungary's six regional power supply companies have combined
registered capital of HUF 247.5bn.

        Shares representing 15pc of the total registered capital of companies
involved in power generation and supply will be offered for compensation

        The state will retain a 25pc plus one share stake in MOL Rt with 30pc
to be sold to two or three strategic investors and the remaining shares sold
through the Budapest Stock Exchange (BSE). MOL has registered capital of
HUF 97.6bn and shareholders' equity of HUF 262bn.

        Mineralimpex Rt, in which the State Holding Company (AV Rt)
currently holds a majority stake, will be become part of MOL, with a
resultant increase in MOL's equity. Mineralimpex, which has registered
capital of HUF 630m, is involved in the export and import of oil and gas.

        The five gas supply companies will also be wholly privatized apart
from a single state-owned golden share. A 50pc plus one share stake will be
offered to professional investors, and the rest will be offered to
and small investors or sold through the BSE. The five companies have
combined registered capital of HUF 44.5bn.

        A majority stake in Antenna Hungaria Rt will be offered to
professional investors, who will also inject capital to increase the
company's current registered capital of HUF 7.85bn. It is planned that
Antenna Hungaria will carry out its TV and radio broadcasting on a
concession basis and the state will retain a stake of 25pc plus one share. In
this case, AV Rt, which currently holds 82.5pc stake of Antenna Hungaria,
can expect an income of HUF 3.26bn from the company's privatization,
according to a recent government press statement. The earlier statement
envisaged a HUF 5.2bn equity raise at Antenna Hungaria.

        The state's holding in MATAV, which has registered capital of HUF
104.2bn, will be reduced from the current 66pc to 25pc plus one share.
MagyarCom, a consortium of Ameritech and Deutsche Bundespost
Telekom, acquired 30.29pc of MATAV for USD 875m late last year. The
EBRD and IFC together hold 3pc of MATAV.

Hungarian Currency Devalued

        Budapest, November 28 (MTI) - AS reported earlier, the National Bank
of Hungary (NBH) has devalued the forint against the currency basket in its
own sphere of authority, as of November 29.

        The NBH said the move was in line with the declared rate of
exchange policy pursued by the National Bank.

Two Executives From National Security Office To Be Relieved

        Budapest, November 28 (MTI) - MINISTER without portfolio in charge
of supervising secret services, Bela Katona, has relieved the director-
general of the National Security Office, Brigadier-General Sandor Simon
and his first deputy Colonel Istvan Chladek of their respective posts as of
January 1, recognizing their merits.

        Katona told reporters that Border Guards Colonel Tibor Vidus - head
of the directorate at the Gyor Border Guards district - was designated for
the post of general director, after his qualifications and career were viewed.

        Consultations with the coalition partner on Simon's successor were
completed, and the candidate will be heard shortly by Parliament's National
Security Committee.

        The minister made a statement to this effect after staging a joint
press conference with Hans Beck, ambassador of the European Union in
Hungary, following talks with the ambassadors of the European Union
countries on questions of Hungarian national security.

        Katona refused to divulge the reasons for the discharge, but he
noted that the director-general had done much in reorganizing the office
and had completed very serious work over the past four years.

        However, the minister noted, the National Security Office faces a new
professional area, and this represents different duties, which calls for a new
leader to perform those duties.

        In answer to a journalist's question Katona said in his view a large
number of precious and highly qualified experts were quitting the Office
and Information Service, mainly for financial considerations.

        In connection with another question the minister remarked that
preventive activity would mainly rest on the secret services in rendering
security measures at the forthcoming Budapest CSCE summit.

        Katona added that the services have not to date detected any
phenomena threatening security at the conference.

CSCE Summit - Press Briefing on Preparations

        Budapest, November 28 (MTI) - BUDAPEST will temporarily become
the capital of the world for two days, next Monday and Tuesday, when it
hosts the summit meeting of the Conference on Security and Cooperation
in Europe (CSCE), at which heads of state and government of the
organization's member states converge.

        Apart from the 52 members of the "CSCE family", Budapest will
welcome a group of non-member state Mediterranean and Asian countries,
and leaders of various international organizations.

        All in all the Hungarian hosts will look after the accommodation and
security of 2,000 representatives of 73 delegations, a job that is exposing
organizers, diplomats, policemen and staff members of the civil service to
unprecedented tasks, the government spokesperson said at a press
briefing today.

        As an invited guest, Ambassador Istvan Gyarmati, executive
secretary of the CSCE, said Hungary hopes that the European summit will
mark a turning point in the history of the CSCE and in the security status of
the continent, as one stage full of uncertainties can now come to an end
following the transformation of the eastern sector of the continent.

        Although no single document is available for keeping with the
"good" customs that prevail at international conferences, Gyarmati hopes
the political will of the member states can be molded into a final form for
the summit. For that to materialize diplomats playing a decisive role in the
CSCE will have to make seven to eight decisions of key importance.

        A political declaration is expected to map out prospects for a future
Europe, not keeping under wraps the favourable developments, or conflicts
awaiting solution.

        Gyarmati said it is promising that even with all its problems the
continent is proceeding towards unification, and in that wake the CSCE
could play a major role in smoothing over various old and newfangled
European tensions.

        One such conflict needing to be solved is related to Karabakh.

        Progress, however, needs to be made in order to reach a decision on
establishing a peace-keeping force under the auspices of the CSCE,
something which needs endorsement by Russia.

* * *

        Budapest, November 28 (MTI) - THE ambassador spoke about the
expenses, saying that the CSCE programmes would cost more than HUF 1
billion, of which only HUF 300 million would have to be covered by the
Hungarian state, as the remaining sum would be reimbursed next year by
the member states.

        General Ferenc Berkesi, commander of the Republican Guards
regiment, said no information had been received on preparations for acts of
terror, but nothing would be left for chance.

        Some 2,500 policemen will be mobilized to cover security duties.

        Approximately 500 security officers will be responsible for protecting
the politicians arriving in Hungary.

        For security measures various sections in the downtown area of
Budapest will be closed down several times, causing potential traffic snarls.

        The mayor of the city has asked schools to declare holidays for the
two days of the summit.

International Organizations Seek Their Own Place, Kovacs

        Budapest, November 28 (MTI) - INTERNATIONAL organizations, such
as the UN, NATO and CSCE, are seeking a place for themselves and a
possibility to adjust to the new situation with the cessation of east-west
global confrontation. This work in the search for a path, done at the UN
general assembly, also defines the CSCE endeavours, said Foreign Minister
Laszlo Kovacs at a meeting called "Window on the World", staged at the
initiative of civilian organizations, in Budapest today.

        Summing up the experiences gained at the 49th general assembly of
the UN, Kovacs stated that a search for a road had stamped its imprint on
the conference now that the bipolar world order, which dominated the past
decades, has disintegrated.

        This large scale change, as against the former total confrontation,
has left a new type of security risk behind, to which no institutional
frameworks have been developed yet for its handling.

        Resulting from the nature of the UN, the debate at the general
assembly was marked by a global approach, but great space was devoted
to discussing regional crises, as for instance the one in the former

        There was agreement on emphasizing the need for conflict aversion
and management.

        A new feature of this type of prevention is that great attention is
dedicated to the defence of human and minority rights since their violation
is a source of potential conflicts which could lead to tragedies.

        This approach was heavily emphasized in the contribution of the
Hungarian delegation, said the minister.

        The requirement for adjusting to new international circumstances
determines work at the CSCE, and in this connection Kovacs alluded to the
significance of the upcoming CSCE summit.

        He stressed that this most prestigious event in the history of
Hungarian diplomacy can be recorded as a turning point in adjusting to
new realities.

        Putting the event into a historical perspective, the foreign minister
said that following an era of global confrontation the CSCE must face up to
new types of security risks.


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
542/1994.                                       Budapest, November 30, 1994

Hungarian Press Review

        Budapest, November 29 (MTI) - Nepszabadsag - Last month voter
support for the Hungarian Socialist Party (HSP) decreased by five per cent
while that for the Hungarian Democratic Forum increased by four per cent,
a recent poll conducted by Szonda-Ipsos reveals. Since the parliamentary
elections last May, the HSP's popularity has mainly decreased in villages
and among those of low qualification (page 1 and 13).

        Magyar Hirlap - Parliament will not start to discuss the 57 bills
scheduled for the first half of 1995 before February. Legislation planned for
this year is expected to continue even in January, to be followed by brief
winter recess (page 1).

        Magyar Nemzet - Mihaly Arnold, Commander of the National Customs
and Excise Office, said he had no formal information about the
government's intention to remove him from office. Arnold was appointed to
his post in 1992 by the previous government (page 1).

        Nepszabadsag - The pulling down of the cofferdam of the Nagymaros
water barrage cannot start before mid-December, Laszlo Vincze,
construction manager of the Fober company, said. According to the
original plan, the dam would have been cut through on November 26 but
the action had to be delayed for a variety of reasons (page 1).

        Kurir - The court has stopped the trial in the Elemer Hankiss vs.
Hungarian government case. The trial was initiated by the former president
of Hungarian Television about two years ago. Since then, it has not yet
been formally decided whether the president of Hungarian Television is
employed by the government and thus the latter may have a say in the
internal affairs of Hungarian Television (page 2).

Hungarian Foreign State Secretary Holds Talks in Brussels

        Brussels, November 29 (MTI) - HUNGARIAN Parliamentary State
Secretary Istvan Szent-Ivanyi is holding talks with senior NATO and
European Union (EU) officials in Brussels on Monday and Tuesday. The
state secretary arrived in the Belgian capital to attend the second session
of the parliamentary committee set up under the association agreement
between Hungary and the EU.

        Visiting the NATO Headquarters in Brussels, Szent-Ivanyi met Deputy
Secretary-General Robin Beard, US Ambassador Robert Hunter, and British
Ambassador Sir John Weston.

        "My negotiating partners held out the prospect that US Secretary of
State Warren Christopher would confirm, in a separate statement, the
political commitment of the United States to enlarging NATO, and that the
North Atlantic Alliance would elaborate the modalities and timetable for
accession to the Alliance," Szent-Ivanyi told MTI.

        Addressing the parliamentary committee session, the state secretary
said that integration into Europe is a priority of Hungary's foreign policy
and there is national consensus on this subject. "Hungary holds the
position that talks on its accession to the EU should start in 1997 at the
latest," Szent-Ivanyi said.

        "After being admitted to the EU, Hungary would welcome it if, on the
Spanish and Portuguese model, it were granted a period of transition to
catch up fully with the Union," he said.

        Even before joining the EU as a full member, Hungary seeks genuine
and regular cooperation, where possible based on agreements, in the fields
of the economy and trade, the common foreign and security policy, and the
common policy on internal and judicial affairs.

        On behalf of the Hungarian government, the state secretary
welcomed the fact that the EU summit in Essen next week would probably
make a clear-cut statement in favour of enlarging the European Union, and
approve a separate "strategic statement" on Eastern Europe. However, he
described it as an unfavourable sign that the East European leaders had
not been invited to the summit, Szent-Ivanyi said.

        On Tuesday, the state secretary is scheduled to hold talks with Hans
van den Broek, who is in charge of foreign policy questions in the
European Commission.

Socialist International Council Meets in Session in Budapest

        Budapest, November 29 (MTI) - MORE than 100 socialist, social
democratic and labour parties from all continents of the world will be
represented at a three-day conference of the Socialist International Council
in Budapest this coming weekend.

        The state of the social democratic movement in Central and Eastern
Europe will be surveyed as the main subject, and the delegates will also
examine ways to harmonize the furthering of democracy with the
development of an efficient economy and the promotion of social justice.

        The details of the programme were outlined by Luis Ayala, general
secretary of the Socialist International and on behalf of the hosts by Sandor
Csintalan, acting deputy chairman of the Hungarian Socialist Party, at an
international press conference in Budapest today.

        Delegates are mainly expected to survey the situation in Central
Eastern Europe and intend to formulate their vision of the future.

        A declaration will be adopted by the delegates summing up the ways
and means by which they can support the efforts of those living in the

        Other questions to be tackled at the conference will include the
situation in the Middle East, Mozambique, Angola, Rwanda and Haiti.

        All member organizations of the Socialist International will be
represented at the conference.

        Franz Vranitzky, Chancellor of Austria, Rudolf Scharping from
Germany and Simon Peres from the Israeli Labour Party are expected
among others. The list of visitors has not yet been finalized.

        Luis Ayala told journalists that the Budapest conference was
expected to deal with the admission of new members. At present two
Hungarian parties, the Hungarian Socialist Party and the Hungarian Social
Democratic Party participate as observers in the work of the Socialist

        The admission of new members will also be on the agenda, and the
administrative committee of the Socialist International will submit a
proposal to the plenary session on this matter.

        The general secretary said the committee will discuss applications
for membership from more than 70 candidates.

Clinton and Yeltsin to Meet Goncz and Horn

        Budapest, November 29 (MTI) - HUNGARIAN Foreign Minister Laszlo
Kovacs will take part in the December 2 session of the North Atlantic
Council of Cooperation in Brussels, foreign affairs spokesman Gabor
Szentivanyi told a press briefing at the Foreign Ministry today.

        Delegates attending that session will exchange views on current
issues relating to European security, examine the problems connected with
the Yugoslav crisis and are to be briefed on the foreign ministers' session
of the Council on December 1. At the December 1 meeting the foreign
ministers will discuss the possibilities for expanding NATO.

        Szentivanyi said Kovacs had earlier today conferred with Ole
Philiphson, president of the International Exhibition Bureau.

        Kovacs informed the president of BIE about the resolution passed by
Parliament on scrapping the 1996 World Fair, stressing that exclusively
financial considerations were behind the decision. Philiphson received the
news with regret and understanding.

        Szentivanyi also spoke about the forthcoming CSCE summit at the
press briefing.

        He said the various bilateral meetings and President Bill Clinton's
final programme are now being finalized by the Foreign Ministry. It is now
certain that President Clinton will hold separate talks with President Arpad
Goncz and with Prime Minister Gyula Horn. President Goncz and Prime-
Minister Horn will also have separate talks with President Boris Yeltsin.

        As well as Presidents Clinton and Yeltsin, according to the latest
information, the following dignitaries will attend the CSCE summit: the
prime ministers of France, Belgium, Bulgaria, Britain, Cyprus, Croatia, Italy,
Spain, Estonia, Ireland, Latvia, Lithuania, Moldavia, the Czech Republic,
Romania, Switzerland, Sweden, Finland, Norway, Ukraine, as well as the
Austrian chancellor, the representative of the Holy See and the UN
Secretary General.

Vehicle importers criticize government plans

        Budapest, November 29, 1994 (MTI-ECONEWS) - The Hungarian
Association of Vehicle Importers (MGE) has stated its opposition to any
reduction in the number of new cars to be imported to Hungary next year
and the proposed increase in import duty on cars, MGE president Gabor
Gyozo told the press on Tuesday.

        The association is concerned about reports that the Ministry of
Industry and Trade intends to reject the 85,000 to 90,000 vehicle import
quota requested by MGE for next year. The Ministry has issued import
licences for 68,000 new cars this year, all of which have been used by MGE
member companies. MGE also objects to the planned 10-12pc increase in
the rate of import duty on new cars and criticizes the introduction of a tax
on company cars.
        The association argues that the government's projection of an
additional HUF 6bn budget revenue from the higher import duty is faulty.
MGE claims that the extra cost of new cars would cut sales by 10-15pc and
thus limit the extra budget revenue to HUF 1-3bn.

        MGE also argues that any steps to limit car imports will also mean
that the process of reducing the average age of the cars on Hungary's
roads will slow down. Currently, 1.4 million of the total 2.5 million cars in
Hungary are more than nine years old, 1.9 million were made in Eastern
Europe and 1.3 million of these are over nine years old and 400,000 are two-
stroke Trabants or Wartburgs.

        MGE has 26 member companies which import 32 makes of car.
Magyar Suzuki, which has a car assembly plant in Esztergom (N Hungary),
is not a member of the association. MGE member companies have invested
a total of HUF 76bn in Hungary, including major investments by Opel, Ford
and Audi. The companies had total turnover last year of HUF 100bn. Sales
of new cars by MGE members resulted in budget revenue of HUF 30bn in
1993. MGE member companies plan to import vehicles to a value of USD
280m plus DEM 200m and to export vehicles worth USD 126m plus DEM
120m in 1995, Mr Gyozo said.

EU-Hungary Association Parliamentary Committee - Orban

        Brussels, November 29 (MTI) - A BRUSSELS joint session of the EU-
Hungary Association Parliamentary Committee had Hungary represented
by its Parliament's Committee on European Integration Affairs (presided
over by MP Viktor Orban, chairman of the opposition Federation of Young
Democrats), and by parliamentary state secretary of foreign affairs Istvan
Szent-Ivanyi on Tuesday.

        Orban announced a resulting joint statement makes claims on
Hungary, the Council of Ministers of the European Union, and the Brussels-
based Commission of the European Communities, covering more open
markets, harmonizing laws and farm policies, a more flexible PHARE-
programme, and tighter Hungarian-Austrian EU border controls.

        Orban felt the Hungarian delegation had successfully defended
Hungary's claims for more open EU markets. Delegates suggested
measures like meat embargoes did not help relations. (This Easter, EU
member countries banned Hungarian lamb based on epidemic fears.)

        The Hungarians stressed there was still no clear timetable for
admission, Orban said, but the joint statement hopes that talks can start
right after an EU inter-governmental conference in 1996.

        Hungary warned growing signs suggest Russia sees Eastern Europe
as its zone of influence - reason for faster EU integration.

* * *

        Brussels, November 29 (MTI) - CO-CHAIRMAN of the committee
Claude Desama praised the Hungarian delegation's preparedness and
described the joint session, the first with the new line-up caused by the
Hungarian May general election and the European parliamentary elections
held in June, as a very good start.

        Desama stressed that the committee, with proposals from both the
European Parliament and the Hungarian national assembly, may put
pressure on decision-making political forums and help to clear the
obstacles hindering the acceleration of European integration.

        The next session of the joint parliamentary committee is to be hosted
by Budapest in May, with co-chairman Orban Viktor in charge of preparing
and leading the session.

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

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