OMRI DAILY DIGEST
No. 178, 13 September 1995

HUNGARIAN PARTY LEADERS ON ECONOMIC POLICY. Gyula Horn, Hungarian
premier and head of the Hungarian Socialist Party, and Ivan Peto, leader
of its coalition partner, the Alliance of Free Democrats, said in a
recent Hungarian TV interview that the reason for the current austerity
measures is to improve the country's economy rather than to take popular
steps, Hungarian papers reported. Horn hoped that 1996 will be the last
year of austerity measures and that by 1997, signs of economic
improvement will be evident. --  Zsofia Szilagyi, OMRI, Inc.

HUNGARIAN ROMANI POLITICIAN BLACKMAILED. Armed men trapped and
blackmailed the President of the Hungarian National Gypsy Minority Self-
Government, Florian Farkas, in a Szolnok hotel on 8 September, MTI
reported on 12 September. Police investigators say no political motive
has been revealed so far but cannot be ruled out. The armed men held
Farkas hostage until they made him give them 35,000 forint and promise
to pay another 4 million later. Farkas is also on the editorial board of
Lungo Drom, a newspaper for Roma in Hungary. -- Alaina Lemon, OMRI, Inc.


[As of 12:00 CET]

Compiled by Jan Cleave


Wednesday, 13 September 1995
Volume 2, Issue 177


BUSINESS FEATURE
----------------

**IT ALL COMES DOWN TO WHO YOU KNOW**
  By David Fink

  Faced with saturated markets in western Europe, many central
  European producers are turning to North America. Sales to the
  US and Canada are rising, but still only account for about 3
  or 4 percent of exports from countries like Poland and
  Hungary.  Central European firms have discovered that breaking
  into the cut throat North American market is tough business.
  With low labor and production costs, central European
  companies have little trouble competing price wise in North
  America.  But quality standards can be a problem even for
  firms already exporting to the European Union.  That's because
  specifications are different on the other side of the
  Atlantic.  For example, a tractor that meets German
  requirements might need its electrical system changed before
  being sold in America.  In other cases, differences in taste
  over something as minor as packaging can lead to big problems.
  Bela Papp is the editor of Business Central Europe.

  "There was an  example of a Hungarian company that was
  manufacturing scales and the day they in introduced
  transparent packaging so the consumer could actually see the
  scale they were buying, it saw sales soar."

  But it usually takes more than just improved packaging to boost
  sales.  The fact is, central European brands have very low
  name recognition.  But they can't afford big advertising
  campaigns. So, Papp says central European firms should find a
  North American partner to help get into the market.

  "They should probably consider licensing arrangements first,
  sort of subcontracting arrangements where they are not
  producing under their own name but under a well established
  western brand."

  The next step is for central European firms to sell their
  products under their own names.  Even then, the region's
  exporters will only be successful if they can get their goods
  on shelves across North America.  And Papp says that means
  finding a good distributor.

  "I think the emphasis here is to build personal relationships
  with the people who are heading the big distribution chains in
  North America to capitalize on those relationships and to test
  the market."

  So, it seems that in North America personal relationships are
  essential for business success just as they are in central
  Europe.  If exporters keep that in mind, they may find the
  North American market isn't that tough to crack after all.



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(Elnezest az esetleges kisbetukert, de az eredeti szoveg csupa
nagybetuvel volt irva, amit at kellett cserelnem.)

Buchwald Amy

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

Date=9/11/95
type=correspondent report
number=2-185136
title=Cefta Meeting (l only)
byline=Barry Wood
dateline=Brno, Czech Republic
content=
voiced at:

/// re-running w/change from six to seven in introduction ///

Intro:   Prime ministers of s/e/v/e/n Eastern European countries
met for six  hours in the Czech city of Brno Monday and
established a work  program to expand trade among the former east
bloc nations. V-o-A's Barry Wood reports from Brno.

Text:  This was the broadest meeting yet of signatories to the
Central Europe free trade agreement (CEFTA) which was signed less
than three years ago. The prime ministers of the four signatory
nations--the Czech Republic, Hungary, Poland and Slovakia--were
joined in Brno by the prime minister of Slovenia, which will
become a member by the end of the year. Romania and Bulgaria's
prime ministers also participated and they said their countries
want to join CEFTA. The Lithuanian foreign minister represented
the Three Baltic States, which are also potential signatories.

In a break in their meeting the prime ministers witnessed the
formal opening of the annual Brno industrial trade fair. Czech
prime minister Vaclav Klaus said the meeting was cordial and that
all participants seek expanded regional trade.

The leaders ordered their trade ministers to start making
progress towards removing the barriers that keeps trade among the
countries small. Poland's prime minister complained that his
country does less than five percent of its trade with CEFTA
members.  However Vladimir Dlouhy, the Czech trade and industry
minister, says Czech Polish trade increased by 50 percent last
year and that can be a model for what the Central Europe free
trade agreement can accomplish.

                         //Dlouhy act//

         And already now (Polish - Czech) trade is on the level
         of  back to 1991, which is good. That means that the
         fall that we observed (when the east bloc collapsed) is
         overcome by CEFTA.

                           //End act//

All of the CEFTA signatories want to join the European Union and
an association agreement with the E-U is a condition for CEFTA
membership.  Export and product certification procedures among
signatories are to harmonized.  The prime ministers have agreed
to meet again next year in Slovakia. (Signed)

neb/bdw/cb/pt

11-Sep-95 8:25 pm edt (0025 utc)
nnnn

source: Voice of America