RFE/RL Daily Report
                   No. 194, 12 October 1994


HUNGARIAN FOREIGN MINISTER ON RELATIONS WITH NEIGHBORING
COUNTRIES. Laszlo Kovacs, speaking to reporters on 11 October,
described the normalization of relations with Slovakia, Romania,
and the former Yugoslavia as Hungary's most urgent foreign policy
task, MTI reports. Kovacs noted that his ministry has already
sent positive signals to Bratislava and Bucharest indicating that
Hungary is ready to start negotiations on a basic treaty. He
reiterated that such a treaty should contain clauses guaranteeing
the inviolability of borders and the observation of minority
rights in accordance with European norms. Kovacs said the clause
on minority rights should be either included in the treaty or
mentioned in it, with a separate accord outlining the norms
governing minority rights. In Kovacs's view, Hungarian minority
fears that Budapest would seek to normalize its relations with
neighboring countries at their expense have now subsided. --
Edith Oltay, RFE/RL Inc.

HUNGARIAN FOREIGN TRADE DEFICIT. Deputy State Secretary at the
Ministry of Industry and Trade Gabor Gulacsi said Hungary's
foreign trade registered a $2.6 billion deficit at the end of
August, MTI reported on 10 October. Exports rose in value by
12.2% to $6.3 billion and imports by 16.1% to $8.9 billion,
compared with the same period last year. Industrial production
rose by 7.5%. Meanwhile, the Hungarian National Bank devalued the
forint by 1.1% against convertible currencies beginning 11
October. The bank said the devaluation was necessary to sustain
the competitiveness of exports achieved after the forint was
devalued in August 1993. -- Edith Oltay, RFE/RL Inc.

[As of 1200 CET] 

(Compiled by Penny Morvant and Jan Cleave)
Copyright 1994, RFE/RL, Inc. All rights reserved.

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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.
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