OMRI DAILY DIGEST
No. 27, Part II, 7 February 1995

ROMANIAN INTERETHNIC DISPUTE CONTINUES. Presidential spokesman Traian
Chebeleu said on 6 February that the commemoration of 19th-century
Szekler historian and ethnographer Balasz Orban at Odorheiul Secuiesc
the previous day was a "provocation organized by leaders of the
Hungarian Democratic Federation of Romania" and had "offended the
Romanian state," Radio Bucharest reported. The commemoration, attended
by HDFR President Bela Marko and Hungary's ambassador to Romania, began
with the singing of the Hungarian national anthem. In a clear allusion
to the Party of Romanian National Unity, Chebeleu said such acts help
those who proposed legislation forbidding the unauthorized singing of
foreign anthems and the hoisting of foreign flags. Following the
commemoration, PRNU leader Gheorghe Funar dispatched a letter to
President Ion Iliescu accusing him of failure to defend the constitution
and the rights of Romanians. He also said that Iliescu was insisting on
signing a basic treaty with Hungary, which he described as a country
that "interferes in our domestic affairs, plots against our country's
territorial integrity, and fights against Romania in European
institutions," Western agencies report. Funar also claimed Iliescu was
seeking a secret arrangement with Hungary and the United States to
change Transylvania's status. Chebeleu said the letter demonstrated that
its author was "[mentally] unbalanced." Following Funar's attack on
Iliescu, Adrian Nastase, executive president of the Party of Social
Democracy in Romania, told the PSDR leadership that relations with the
PRNU could not improve as long as Funar remained president of that
party. Nastase also said Funar's statements about President Iliescu
amount to "a declaration of war against us." -- Michael Shafir, OMRI,
Inc.

[As of 12:00 CET]

Compiled by Jan Cleave

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08 February 1995
Volume 2, Issue 28


REGIONAL NEWS
-------------

**HUNGARY FILLS VITAL ECONOMIC VACANCIES**
  Hungarian Prime Minister Gyula Horn nominated Lajos Bokros for
  Finance Minister and Gyorgy Suranyi to lead the Hungarian
  National Bank yesterday.  Bokros is the current President of
  Budapest Bank, while Suranyi is a former Central Bank
  President.  Parliament is expected to approve the appointments
  next week. Bokros would replace current Finance Minister
  Laszlo Bekesi who resigned 10 days ago.  Bokros and Suranyi
  are well liked by the Socialist's liberal coalition partners,
  the Alliance of Free Democrats, who want to see market and
  budet reforms implemented.  The new appointees co-wrote a book
  on free market economics in the mid 1980s and are expected to
  carry out an austerity plan first laid out by Bekesi.  But,
  the appoointments of Bokros and Suranyi might not immediately
  reduce foreign investors fears.  Confidence in the Socialist
  Party fell when Bekesi resigned claiming the government wasn't
  supporting his reform measures.  In announcing the
  appointments yesterday, Horn said the government still wants
  rapid privatization and foreign investment, despite recent
  negative signals.  Horn specifically mentioned the
  soon-to-be-privatized energy sector.

  "And let me clear up a misunderstanding here.  The government is
  far from wanting to exclude foreign investors from the energy
  sector, because by doing so the government would act against
  its own interests.  In the energy sector or any other
  strategic sector, like telecommunications, only foreign
  investors have enough capital."

  Also yesterday Horn announced he's chosen someone for the new
  post of privatization minister.  But while the Free Democrats
  now approve of the creation of the job, they haven't yet ok'd
  Horn's nominee for the position. --David Fink



BUSINESS NEWS
-------------

**HUNGARY'S RATING OUTLOOK IN TROUBLE**
  Standard and Poor's has reduced the Hungarian National Bank's
  rating outlook from stable to negative.  The company says this
  means it could downgrade the bank's overall foreign debt
  rating within three years.  For now, S&P says it'll keep the
  bank's BB plus rating.  According to S&P, recent leadership
  changes in the National Bank, finance ministry and
  privatization program indicate political problems within the
  governing coalition.  S&P adds that these problems could delay
  privatization, debt repayment or changes in monetary policy.
  Hungary is counting on privatization revenues to finance its
  various debts.  An ultimate change in the rating could effect
  the country's ability to borrow more money.


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* CET On-Line - copyright (c) 1995 Word Up! Inc. All rights reserved.
  This publication may be freely forwarded, archived, or
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date=2/8/95
type=correspondent report
number=2-173760
title= Hungary/Economy (l only)
byline= Barry Wood
dateline= Prague
content=
voiced at:

Intro:  In bringing two respected bankers into his government to
fill  vacant posts at the Finance Ministry and Central Bank,
Hungarian  Prime Minister Gyula Horn is sending a signal that,
after a botched privatization deal last month, reform is back on
track. V-o-A's Barry Wood has more.

Text:  The announcements that known reformers would head the
Finance Ministry and the Central Bank came as Prime Minister Horn
departed for an important four-day visit to Brussels.

In meeting top officials of NATO and the European Union, Mr. Horn
is sending a strong signal that Hungary intends to remain in the
front ranks of post-communist Europe's democratic reformers.
Hungary has applied for full E-U membership.

The Hungarian business community is applauding the naming of
Gyorgy  Suranyi to the post of Central Bank Governor. Parliament
will act on  the nomination next week.

Mr. Suranyi -- currently the head of  Hungary's eighth-largest
commercial bank -- held the Central Bank job earlier, but was
forced out three years ago after the then-rightist government
complained that the Central Bank was too independent. Still only
41, Mr. Suranyi is identified with tough remedies to combat
inflation.

A close collaborator of Mr. Suranyi, Lajos Bokros, is to take
over the Finance Ministry. Mr. Bokros heads the state-owned
Budapest Bank -- a majority share of which is being sold to
Credit Suisse of Zurich.

Also in his early 40's, Mr. Bokros succeeds Laszlo Bekesi -- who
resigned last month complaining about the Prime Minister's
interference in privatization.

Hungary faces severe financial problems. While the economy grew
three percent last year, the International Monetary Fund
complains that the budget and balance of deficits are too high
and the country is living beyond its means. The currency has been
losing value and Hungary has the world's highest foreign debt
measured on a per capita basis.

Hungary has attracted huge volumes of foreign direct investment,
but confidence in the socialist government was jolted by the
collapse of the Hungar Hotel privatization deal and the
resignation of Finance Minister Bekesi. (Signed)

neb/bdw/mh/bg

08-Feb-95 1:32 pm est (1832 utc)
nnnn

source: Voice of America

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OMRI DAILY DIGEST
No. 28,  8 February 1995

CSCE COMMISSIONER IN SLOVAKIA. CSCE Commissioner on Minorities Max van
der Stoel, on a visit to Bratislava from 6-7 February, said Slovakia
should offer education in both the Slovak and Hungarian languages.
Slovak President Michal Kovac assured Van der Stoel that parents would
be free to choose schools for their children, and he agreed that an
independent committee should be set up to deal with education questions,
Slovak and international press report. Van der Stoel said that the
signing of the Slovak-Hungarian basic treaty will help bring stability
to Central Europe. He stressed that the document should be signed by 21
March, the scheduled date for signing the Pact on Stability in Europe.
Van der Stoel also met with Prime Minister Vladimir Meciar, parliament
chairman Ivan Gasparovic, and leaders of several opposition parties.
Discussions focused on territorial divisions in Slovakia. -- Sharon
Fisher, OMRI, Inc.

NEW HUNGARIAN FINANCE MINISTER, BANK CHAIRMAN NOMINATED. Hungarian Prime
Minister Gyula Horn on 7 February nominated Budapest Bank President
Lajos Bokros as finance minister and Gyorgy Suranyi, current head of the
Central European International Bank, as Hungarian National Bank
chairman, MTI reports. Bokros and Suranyi, both in their early 40s, are
regarded as competent and independent-minded. Bokros is a former
Hungarian Socialist Party parliament deputy, while Suranyi belongs to no
party but supports the HSP's coalition partner, the Alliance of Free
Democrats. The nomination of two respected bankers is designed to
restore confidence in Hungary's financial management structure and to
reassure foreign investors that the government will carry on with
economic reforms. The AFD approved the nominations, but the coalition
partners still have to reach agreement on a candidate for the post of
minister without portfolio charged with overseeing privatization. --
Edith Oltay, OMRI, Inc.

HUNGARIAN COURT RULING ON COMPENSATION. The Hungarian Constitutional
Court has ruled that several paragraphs of a 1992 law on compensating
people deported during World War II for political reasons were
discriminatory and therefore unconstitutional, Magyar Hirlap reports on
7 February. The court ruled that the law's description of deportations
for racial, religious, or political reasons as "mere deprival of
liberty" was arbitrary. It also nullified the provision giving only
those victims compensation who were forced to work in combat troops
while denying it to those who were in noncombat units or were sentenced
without a fair trial. The court called on the parliament to draft a new
law by 30 September 1995 compensating all those left out of the
reparation process. -- Edith Oltay, OMRI, Inc.

ROMANIAN COALITION TRIES TO RESOLVE INTERNAL ROW. The leaders of the
four ruling parties met on 7 February to resolve a dispute triggered by
the Party of Romanian National Unity leader Gheorghe Funar's attacks on
President Ion Iliescu and his position on Hungarian minority demands for
autonomy, Radio Bucharest reports. The four parties agreed to "actively
support" the presidential institution and Iliescu's role in defending
"[Romanian] independence, sovereignty, and territorial integrity" and in
ensuring that the country's laws and constitution" are respected. Funar,
who accused Iliescu of failing to fulfill those duties, said after the
meeting that the positions of the PRNU and the Party of Social Democracy
in Romania (the major coalition partner) on the country's Hungarian
national minority continue to differ. Presidential spokesman Traian
Chebeleu, in reply to Funar, said the government would have to "explain
how it can work with a party whose leader expresses extremist views
unacceptable to public opinion in Romania and abroad." RFE/RL's
correspondent in Bucharest reported on 7 February that 53 coalition
deputies asked the parliament to reject recent Hungarian demands for
autonomy. -- Michael Shafir, OMRI, Inc.

ROMANIAN-HUNGARIAN TALKS ON BILATERAL TREATY RESUME. Negotiations
between Hungary and Romania on the bilateral treaty resumed in Budapest
on 7 February. Romanian Foreign Ministry spokesman Mircea Geoana told
RFE/RL's correspondent in Bucharest that the document may be completed
and signed before the end of March. He said the recent tensions in
Romanian interethnic relations have had a negative impact on ties with
Hungary, but he added that he did not believe those tensions are
crucial. Radio Bucharest quoted Hungarian Foreign Ministry spokesman as
saying that Budapest was ready to accelerate negotiations with both
Romania and Slovakia and that the basic treaties could be signed in
March. Radio Bucharest's correspondent in Budapest said on 8 February
that the negotiations have been "constructive" but that national
minority rights (one of the two main issues over which the two sides
disagree) remain a sticking point. He noted that Hungary wants a
separate document detailing the rights of the Hungarian minority in
Romania. -- Michael Shafir, OMRI, Inc.

[As of 12:00 CET]

Compiled by Jan Cleave

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Thursday, 09 February 1995
Volume 2, Issue 29


REGIONAL NEWS
-------------

**BELGIUM BACKS BUDAPEST**
  Belgium has come out in support of Hungary's bid to join the
  European Union.  Prime Minister Gyula Horn made that
  announcement yesterday after meeting with Belgian Prime
  Minister Jean-Luc Dehaene.  But Dehaene cautioned that the
  process of integrating eastern and central Europe into western
  organizations like the EU and NATO will take time.  Horn is
  now on a four-day visit to Belgium and Luxembourg where he'll
  meet EU officials, NATO Secretary-General Willy Claes and
  the presidents of the European Parliament and Western European
  Union.  Horn met with Belgian business leaders yesterday. He's
  eager to prove that he's committed to economic reform and says
  he hopes Belgian companies will bid for stakes in Hungarian
  state companies due to go public later this year.


**COMMUNIST PAST DISQUALIFIES JUDGES**
  A Hungarian parliamentary committee yesterday began looking
  into what legal steps it needs to take to remove two judges
  from a panel that's responsible for exposing former secret
  police informers who now hold public office.   Constitutional
  committee head Peter Hack says parliament needs a new ruling
  on whether Hungary's Agent Law has to be ammended in order
  for the judges to be removed or whether parliament can dismiss
  them without changing the law.  The two judges have been
  accused of passing sentences in the 1950's that were
  overturned after the collapse of communism.  Under Hungary's
  Agent Law those sentences disqualify the judges from serving
  on the panel.  They've been asked to step down, but refused.



BUSINESS NEWS
-------------

**HUNGARIANS LIKE THEIR NEW GOVERNMENT APPOINTMENTS, TOO**
  And in Hungary, investment analysts are pleased with this
  week's nomination of two bankers to key financial posts.  They
  say the appointments will calm fears of an uncertain
  privatization and economic policy.  Budapest Bank chief Lajos
  Bokros was named the new finance minister and Gyorgy Suranyi
  -- now head of the Central European National Bank -- is slated
  to take over the country's central bank.  Parliamentary
  committees are expected to confirm both appointments next
  week.


SURVEY
------

**HUNGARIAN FILMGOERS GET A NEW WITNESS OF RECENT SOCIAL CHANGES**
  By Lucy Hooker

  Hungary's 26th Film Festival has been taking place this week,
  in Budapest.  The film which has been attracting the most
  attention is a sequel to a Hungarian cult movie made 25 years
  ago.  The original 'Tanu' or 'The Witness' showed the little
  guy as helpless against an absurd Stalinist system. Completely
  irreverent toward Hungary's ruling classes it was kept off the
  screens for 10 years.  When it was finally shown in 1979 it
  became an instant hit.  Now its director has produced a second
  part 'Megint Tanu', or 'Witness Once Again', featuring many of
  the same actors.  But Hungarians are finding it touches some
  raw nerves.

  It's been 40 years since we last saw Jozsef Pelikan.  He's a
  little plumper and a little balder, but, says he's happy,
  living quietly on an island in the Danube. Until a smarmy
  entrepreneur arrives on Pelikan's doorstep, oozing cash and
  smart talk and with money-spinning plans for the peaceful
  island.  "I don't wait for miracles.  I make them happen!" is
  his motto. "I'm taking you toward Europe and modernization."
  Pelikan would really rather mind his own business, go fishing
  and snooze on his veranda.  But he's thrown into a sequence of
  events over which he has no control.  Before he knows what's
  happening, Pelikan finds himself running for mayor of his
  small island community. In the first 'Witness,' Pelikan was at
  the mercy of the Stalinist state.  Now he's a victim of a new
  system.
  The director of the films, Peter Bacso, says most people,
  including himself, feel the victims of the changes.
  Ironically, Bacso couldn't afford to make the film without
  private sponsorship and consequently the movie is punctuated
  with shots of his sponsors' products.  But, despite having to
  turn to private funding, Bacso says his film is all about
  poking fun at capitalism.

  "Twenty-five years ago when there was a dictatorship, my message
  was that if the dictatorship was over everything would be
  good.  And now we are in the new world and there are a lot of
  problems, there's the birth of the new and wild capitalism in
  Hungary.  This makes the circumstances and adventures of my
  hero.  What can he do?"

  Mayoral candidate Pelikan is certainly a fish out of water when
  it comes to speech making.  All he can think of to say is,
  "The Danube is coming. So watch out for the Danube."  The new
  film is full of amusing reminders of the original.  But the
  original is a hard act to follow and critics haven't been so
  kind.  And the same goes for the audience.  One moviegoer said
  he found it difficult to laugh as heartily over such recent
  experiences.

  "This one was perhaps a bit more sad than the first one.  I
  think it is just because we are still in this period, you
  don't see a way out or an end to the problems.  Lots of people
  are at a loss, don't really know what is happening or know the
  way out."

  Twenty-five years on, perhaps Hungarians will find this film as
  hilarious as the first one.  In the meantime, though, it's
  hard to laugh at something which still hits so close to home.



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