OMRI DAILY DIGEST
No. 169, 30 August 1995

HUNGARIAN PREMIER BACKS DOWN ON DEPUTY PREMIER POST. Gyula Horn on 29
August abandoned plans to appoint trade union leader Sandor Nagy as
deputy prime minister in charge of overseeing the economy. But he said
he wanted Nagy to take over the post of industry minister instead,
international agencies reported. Horn's move came amid strong protests
from the Alliance of Free Democrats (SZDSZ), who believe that Nagy's
appointment would diminish the powers of Finance Minister and reform
architect Lajos Bokros. The liberals dismissed Horn's concession as
cosmetic only. "We believe that [Nagy's appointment] would still reduce
the chances for a healthy economic policy," an SZDSZ leader told
Reuters. Meanwhile, Horn said he hoped that an agreement could be found
with the SZDSZ but added that the Socialists were willing to rule
without the liberals if necessary. -- Jan Cleave

NASTASE: ROMANIAN EDUCATION LAW ISSUE "ARTIFICIALLY INFLATED." Romanian
Chamber of Deputies chairman Adrian Nastase told Max van der Stoel, the
visiting OSCE high commissioner for ethnic minorities, that the issue of
the controversial new education law has been "artificially inflated" by
the Hungarian Democratic Federation of Romania (UDMR). Radio Bucharest
on 29 August quoted Nastase as saying that the UDMR wants to use the
education law to introduce via the back door the concept of territorial
autonomy. Nastase denied the law will have a negative impact on the
pending treaty between Romania and Hungary. Van der Stoel also met with
Viorel Hrebenciuc, the government coordinator for the Council for
National Minorities, and Foreign Minister Teodor Melescanu. The
government daily Vocea Romaniei reported on 30 August that after meeting
with Hrebenciuc, Van der Stoel said the education law adequately
reflects European standards. Meanwhile, nationalist Mayor of Cluj
Gheorge Funar has invited Van der Stoel to participate on 30 August at
ceremonies marking 55 years since northern Transylvania was ceded to
Hungary. Funar said the occasion would make it possible for the high
commissioner to learn about "the atrocities" committed against the
Romanian and Jewish population in Transylvania "by the parents and the
grandparents of today's UDMR members." -- Michael Shafir

ROMANIA'S MAGYARS LAUNCH NEW RADIO STATION. Reuters on 29 August
reported that a radio station broadcasting a 75% Hungarian-language
program went on the air over the weekend in the town of Targu Secuiesc,
in Covasna County. Radio Siculus is the first station in Romania that
broadcasts mainly in Hungarian, according to Lazar Madaras, a deputy
representing the Hungarian Democratic Federation of Romania. Under
broadcasting rules enforced by the Audio-Visual Council, the proportion
of minority languages used on the air must reflect the proportion of
nationalities in each area. Covasna County is has a large Hungarian
majority. -- Michael Shafir

[As of 12:00 CET]

Compiled by Jan Cleave


date=8/29/95
type=correspondent report
number=2-184400
title=East Europe Progress (l) only
 byline=Barry Wood
dateline=Prague
content=
voiced at:

Intro:  Europe's biggest commercial bank -- Deutsche Bank in
Frankfurt --  has released a glowing report lauding the progress
made in the past year in building market economies by the
countries of Central and Eastern Europe.  V-o-A's Barry Wood has
more.

Text: Dutsche Bank research says the countries of Eastern
Europe have now completed the task of stabilizing their
economies.  The greatest progress continues to be made in the
three fastest  reformers -- the Czech Republic, Hungary and
Poland.  But, in its  report, "Stabilization in Central and
Eastern Europe," Deutsche Bank says there has also been
significant progress in the past year by Slovakia, Slovenia,
Bulgaria and Romania.

Deutsche Bank researchers use the term "remarkable progress" when
assessing the overall performance of the former communist
countries in the past five years.  Looking at 11 post-communist
economies west of Belarus, Ukraine and Moldova, the German
researchers say all will achieve significant growth this year.
They say the highest growth rates will be in the Czech Republic,
Estonia, Poland and Slovenia, where the gross domestic product in
each case will expand by at least four-and-a-half percent.
Inflation rates in two countries -- Croatia and the Czech
Republic -- are expected to fall below ten percent (annually).
In Slovakia and Slovenia inflation will diminish to under 10
percent early in 1996.

The best performing economies are also the ones attracting the
most foreign direct investment.  Hungary continues to be the
leader in attracting foreign business.  Final figures for 1994
show an additional one-point-five billion dollars was invested in
Hungary, last year.  Poland attracted one-point-four-billion
dollars and the  Czech Republic an even one billion dollars.
Significantly, Romania --  which had lagged behind, attracted 700
million dollars of foreign investment last year.

                        // Rest optional //

Deutsche Bank says, largely because of the inflow of foreign
investment, the economies of Eastern Europe have no shortage of
capital for growth.  With the exception of Hungary, most of the
countries are selling enough abroad to pay for their imports.
And, the external finances of Bulgaria, Poland, Romania, Slovakia
and Slovenia registered big improvements last year.

Two countries -- the Czech Republic and Poland -- have managed to
build impressive reserves of hard currency, with the Czech
Republic accumulating over nine billion dollars of reserves.  So
great has been the improvement in the balance of payments that
few countries in the region now depend on loans from the
International Monetary Fund.  (Signed)

neb / bdw  / wod/sp



29-Aug-95 11:51 am edt (1551 utc)
nnnn

source: Voice of America


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. 161                                                29 August 1995

  Peace Seminar Ends in Szeged - Press Conferences

        Szeged, August 27 (MTI) - Delegates wound up a one-week tour
of Hungary, Romania and the Voivodina province in rump Yugoslavia.

        They spoke to reporters about their experiences in Szeged,
today  after they had held an international seminar entitled From
Conflicts  to Peaceful Coexistence, discussing the duties of civil
organizations in creating tolerance between countries and within one
country.

        Representatives of peace movements and civil organizations from
15 countries had pledged to meet people and refugees afflicted by
the war on the premises, aside from engaging in exchanges of views.

        Their experiences confirmed their view that such initiatives
were needed all the more often and from several viewpoints.

        On the one hand the victims of war should feel international
sympathy, and a willingness to act, as Miklos Barabas, director of
the European House which organized the program, told media
representatives "a friend in need is a friend indeed."

        On the other hand, politicians "fail to act" on a number of
issues, thus civil organizations must take action.

        The delegates raised the idea of organizing an international
builders camp, which would be held in Romania.

        They also consider it necessary to group civil organizations in
a network to enable them to work together for tolerance.

        Gunner Lassinantti, international secretary at the  Stockholm-
based Olof Palme International Center, said the visit to  Voivodina
was the key stage among the political missions organized  by the
center.

        In his view a growing number of people acting for peace should
visit the war-ravaged province, to cease the isolation of local
residents and to give them real assistance.

   Hungarian Soldiers in Romania for Joint Exercise

        Budapest, August 28 (MTI) - A platoon of the Mechanized
Artillery Brigade of Hodmezovasarhely, E Hungary, entered Romania at
the border post of Nagylak on Monday morning to participate in a
joint Romanian-Hungarian military exercise organized at Lugoj under
the auspices of the Partnership for Peace scheme.

        Recently, the 80th infantry brigade of Lugoj spent ten days at
Hodmezovasarhely to become familiarized with Hungarian training
methods.

        The Hungarian soldiers visiting Lugoj will take part in
physical  training, shooting practice and learn about tactics - all
according  to the Romanian system of training. On September 7 they
will travel  to Sibiu, where a large-scale Partnership for Peace
exercise will be  held with the participation of 12 countries.


Irish Minister of Justice Has Talks in Hungary

        Budapest, August 28 (MTI) - Harmonization with the European
Union's legal norms, combating drug trafficking and international
crime were the main topics of the discussion that Irish Minister of
Justice Nor Own held in Budapest with her Hungarian counterpart  Pal
Vastagh. The Irish politician, who arrived in Budapest on Sunday  at
the head of a delegation, announced at a press briefing that  Hungary
will open an embassy in Ireland in the next few weeks.

        The Hungarian Minister of Justice stressed the significance of
the experience Ireland has gained as a member of the European Union.
This experience, especially in the application of legal standards,
is particularly important for Hungary now that it is striving to
integrate into mainstream Europe, Vastagh said. Ireland has always
supported Hungary's full membership, he added.

        The Irish minister emphasized the importance of the fight
against drug trafficking. This problem requires joint international
action as it cannot be solved within the framework of the European
Union, she said.

        At their request, the Irish delegates were given comprehensive
information on the proposed modifications to the Hungarian
Constitution. They were interested in this issue as Ireland plans to
review and modify its constitution in the near future. However, in
Ireland every proposed modification is put to a referendum, the
Irish minister said.


 Hungarian Soldiers Return from US. Exercise

        Budapest, August 28 (MTI) - The 47 Hungarian soldiers who  had
taken part in a peacekeeping exercise code named "Cooperative  Nugget
+95" in the United States returned to Hungary on Monday.

        The first NATO-sponsored peacekeeping exercise in the United
States involved units from three NATO member states and 14 former
communist states joining NATO'S Partnership for Peace scheme.

        Hungarian soldiers were taken back from Fort Polk, Louisiana,
to  Tokol near Budapest by a C-141 carrier of the US. Air Force.

        Headed by Major Imre Koczak, the unit was welcomed
ceremonially,  in the presence of Laszlo Borsits, Deputy State
Secretary of  Defense, Col.-Gen. Janos Deak, Commander of the
Hungarian armed  forces, and Donald M. Blinken, US. Ambassador
Extraordinary and  Plenipotentiary to Hungary. Hungary gave honors to
US. officers  who took part in training Hungarian peace keepers. The
transport and  supply costs of the unit was covered by the United
States.

        Other Hungarian peace keepers are scheduled to leave for the
Sinai peninsula next weekend, and for Cyprus this autumn. Those back
from the USA will attend another Partnership for Peace exercise in
Hungary this autumn with German and British troops.


   Horn and Bekesi on Planned Government Reshuffle

        Budapest, August 28 (MTI) - Interviewed in the interval of a
two-day session of Socialist MPs which started today, Hungarian
Prime Minister Horn said, "Most of the criticisms voiced today were
justified and had to be considered by the government."

        The prime minister proposed that industry and trade should be
controlled again by separate ministries, and a ministry of economics
should emerge from the ministry of industry. Horn also proposed a
post of state secretary of information, and putting the Prime
Ministers Office in the charge of a minister without portfolio
.
        Horn stressed the need for talks with the Alliance of Free
Democrats, the junior coalition partner. "The HSP has already chosen
four to five negotiators for the purpose," he said.

        Former finance minister Laszlo Bekesi, who was also
interviewed,  expressed doubts over the nomination of trade union
leader Sandor  Nagy as minister of economics. "It is a built-in
source of conflict  that the economic program of the National
Confederation of  Hungarian Trade Unions greatly differs from the
government program  emphasizing economic stabilization," he said.