OMRI DAILY DIGEST
No. 69, 5 April 1996

HUNGARY REJECTS SLOVAK INTERPRETATION OF BASIC TREATY. The Hungarian
government on 4 April told Slovakia that the exchange of ratification
documents on the bilateral treaty will not take place if Slovakia
attaches its so-called "interpretation" clauses, MTI reported. State
Secretary at the Foreign Ministry Istvan Szent-Ivanyi said Hungary has
already informed the Slovak government of its decision. Szent-Ivanyi
warned that attaching interpretation clauses is "virtually unprecedented
in international law." The Slovak parliament approved an addendum last
week that includes a unilateral interpretation of the Slovak-Hungarian
treaty. -- Zsofia Szilagyi

HUNGARY TO PRIVATIZE ROYAL GRAND HOTEL, AMUSEMENT PARK. Hungary is to
sell Budapest's century-old Royal Grand Hotel and amusement park,
Hungarian media reported on 5 April. The four-star Royal Hotel, once the
biggest hotel in the Austro-Hungarian empire, is up for sale at a
provisional price of $6.8 million. It has been closed since October 1991
pending renovation. Following two unsuccessful attempts to sell it, the
buyer is now obliged only to preserve its facade. The amusement park,
located in the City Park, is to be sold because the municipality lacks
funds to modernize it. -- Zsofia Szilagyi

[As of 12:00 CET]

Compiled by Jan Cleave


Friday, 5 April 1996 Volume 1, Issue 324


REGIONAL NEWS
_____________

> ------------------------------------------------
SANTER ARRIVES IN HUNGARY TO DISCUSS EU CRITERIA
> ------------------------------------------------
European Commission President Jacques Santer arrived in Budapest
from Prague on Thursday evening for a one-day visit to discuss
Hungary's application to join the EU. Santer will hold talks
with President Arpad Goncz, Prime Minister Gyula Horn, Foreign
Minister Laszlo Kovacs as well as meeting members of
parliament's foreign and economics committees.  The stopover is
the second stage of a fact-finding visit to Central Europe which
took in the Czech capital Prague on Thursday.  Hungarian foreign
ministry spokesman Gabor Szentivanyi told reporters the talks
would cover two main topics: the question of expansion towards
Central and Eastern Europe and the mechanisms and framework for
cooperation that promote this process.  Szentivanyi said that
later this month Hungary will receive a detailed questionnaire
that has to be answered by all applicant countries and which
will form a basis for the EU to assess whether Hungary meets the
criteria for membership.  He added that Hungary will probably
need about a year to reply fully.

Hungary's claims to be at the head of the queue for EU membership
were boosted last week when the Organisation for Economic
Cooperation and Development (OECD) admitted it as only its
second former communist member after the Czech Republic.  The
EU's expansion eastward is on the agenda of the year-long IGC
which began with a summit conference of EU heads of government
in Turin last week. Leaders agreed that one of the tasks of the
conference will be to revise the EU's treaties to accommodate
future new members.


> ------------------------------------------
SLOVAKIA LASHES OUT AT EU CRITICISM OF LAW
> ------------------------------------------
Slovak Foreign Minister Juraj Schenk on Thursday lashed out at
the European Union after it criticised recent changes to
Slovakia's penal code. Three envoys representing the EU met
Schenk on Wednesday and told him that while the bloc welcomed
the recent ratification of a friendship treaty with Hungary, it
was concerned about recent changes to the Slovak penal code
establishing penalties for subversion and damaging the republic
abroad.  He pointed out that such procedure was called for in
the EU association agreement in cases of misunderstanding or of
questions which needed to be further discussed.  Since Prime
Minister Vladimir Meciar won elections in 1994, the European
Union has delivered two diplomatic notes expressing concern
about Slovak democracy and the United States has issued one. A
statement issued on behalf of the EU by current president Italy
voiced concern about Slovakia's new anti-subversion law. The new
U.S. ambassador to Slovakia Ralph Johnson, presenting his
credentials to President Michal Kovac on Thursday warned his
government would continue to criticise Slovak actions when it
considered necessary, TASR said.


> -------------------------------------------
TWO OF "THREE TENORS" URGE END TO INJUSTICE
> -------------------------------------------
Tenors Placido Domingo and Jose Carreras -- two thirds of the
"Three Tenors" -- made an impassioned plea in Hungary on
Thursday for an end to injustice in the world. They also asked
for lenient treatment when they sing arias with lyrics in
tongue-twisting Hungarian as part of a classical and popular
programme they will perform in July. They will perform with
American pop singer Diana Ross at the 72,000-seat Budapest
stadium on July 30, but without Luciano Pavarotti who appears in
the "Three Tenors" concerts.  Carreras said he backed Domingo
100 percent and added that he hoped Hungarians would not be too
critical of songs performed in Hungarian, a notoriously
difficult language.  Organisers, who began promoting the concert
in January, said they had sold 30 percent of the tickets, which
range in price from $13 up to $450 for a VIP seat that includes
dinner with the stars, and had firm requests for a further 20
percent.  They said they hoped for additional sales in Europe,
the United States, Japan and Israel.




BUSINESS NEWS
_____________

---------------------------------------
NO IMMEDIATE PLANS TO REVISE MATAV DEAL
---------------------------------------
Hungary plans no immediate renegotiation of the concession it
gave terrestrial telecommunications company Matav Rt, Transport
and Telecommunications Minister Karoly Lotz told Reuters on
Thursday.  The OECD, which recently admitted Hungary as a
member, recommended Hungary's government should renegotiate the
existing concession with Matav under which the company has a
monopoly on ground-based communications until 22 December 2001.
However, he added, that with the European Union deregulating its
telecommunications market in 1998, Matav's present concession
might become obsolete.  According to Matav's director general,
Elek Straub,  Matav believed that both sides should respect the
existing contract.


> ---------------------------------------------------
CORPORATE WATCH: PICK WINS US SUIT OVER FAMILY NAME
> ---------------------------------------------------
A U.S. court has ruled in favour of Hungarian meat food processor
Pick Szeged Rt and against the Pick family in a trademark suit
initiated by the family's descendants, Pick said in a statement
issued Thursday.  The Pick family have the right to appeal
against the verdict, the statement said. However according to
Pick's legal representative, Baker & McKenzie, an appeal is
unlikely.  A legal suit in Hungary between the family and Pick
Szeged Rt was closed late last year, following the family's
withdrawal of their appeal to the Budapest Supreme Court.  On
the Budapest Stock Exhange, Pick closed at 6,900 forints, up 50.


> -------------------------------------------------------
CORPORATE WATCH: ING WINS SLOVAK LIFE INSURANCE LICENCE
> -------------------------------------------------------
Financial services group ING Groep said on Thursday it had been
awarded a licence to set up a life insurance company in
Slovakia.  The new unit is expected to start selling life
insurance and pensions in the second half of this year.  ING
said last February it had applied for a licence, which was part
of its strategy to start life insurance operations in countries
with emerging economies.  In Central Europe, ING already has
life insurance subsidiaries in Hungary, the Czech Republic and
Poland.



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