Thursday, 24 August 1995
Volume 2, Issue 164



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


**SERB AND CROAT CHURCH LEADERS MEET IN HUNGARY**
  Serb and Croat church leaders are holding their first formal
  meeting since the outbreak of war in the former Yugoslavia.
  The meeting was organized on neutral ground in the Hungarian
  town of Kecskemet. The church leaders say religion should play
  an important role in ending the conflict.  But they add faith
  has its limits and the peace process will be long and mainly
  political.  Croats and Serbs share a common language and much
  of their culture but follow different branches of
  Christianity, the croats beong predominantly Catholic and the
  Serbs Orthodox Christians. The conference excluded Muslim
  leaders. The meeting's organizer, retired Hungarian Lutheran
  Bishop Karoly Toth, says the Muslims' presence might have
  caused tensions the conference could not handle.  Toth says
  he hopes more groups will be invited to talks in the future
  that would include more significant negotiations.



**FERENCVAROS PUSH ASIDE ANDERLECHT TO ENTER CHAMPIONS' LEAGUE**
  Budapest's primary soccer club, Ferencvaros, Wednesday eliminated
  Belgian champions Anderlecht from the European Champions'
  Cup and becane the first Hungarian club to reach the final
  stages of the competition, the Champions' League. At the
  club's Ulloi Ut stadium, the team managed a 1-1 draw in the
  second leg after defeating Anderlecht 1-0 in the first leg in
  Belgium two weeks ago.



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


**HUNGARY'S MOL AND AUSTRIA'S OMV MAY BUY INTO ADRIA PIPELINE**
  Austrian oil and chemicals group OMV and Hungary's MOL are
  interested in buying a stake in Croatia's Adriatic Oil
  Pipeline Joint Stock Company, according to OMV chief executive
  Richard Schenz. Schenz told  a news conference on Wednesday
  that OMV and MOL will start joint talks with the Croatian
  government in September.  The two firms are looking at a 15
  percent stake in the state-controlled company, which operates
  the Adria pipeline from Rijeka in Croatia to Gola on the
  Hungarian border.  Schenz says the Adria pipeline would
  provide an alternative to the existing Transalpine pipeline
  and Adria-Vienna pipeline.  He wouldnot say how much OMV and
  MOL are prepared to pay for the stake.



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OMRI DAILY DIGEST
No. 166, 25 August 1995

HUNGARY REINFORCES ITS BORDER WITH SLAVONIA. Hungary on 24 August
strengthened its defenses with eastern Slavonia, a territory in Croatia
held by rebel Serbs, Western agencies reported. A border guard spokesman
said the move was in response to tension on the border between Serbia
and Croatia, which, he claimed, "was visibly mounting." According to the
spokesman, five border guard units have been brought in from other areas
of Hungary to patrol the 66-kilometer section of the border. He said
patrols would be stepped up but called the measures "purely
precautionary." -- Jiri Pehe, OMRI, Inc.

HORN TO ATTEMPT TO DISSUADE ROMANIANS FROM IMPLEMENTING EDUCATION LAW.
Citing the Hungarian news agency MTI, Radio Bucharest on 25 August
reported that Hungarian Prime Minister Gyula Horn will initiate a
"governmental level" meeting in an attempt to dissuade Romanian
President Ion Iliescu from implementing a recently-passed, controversial
education law. Horn also said he wanted to talk with Slovak Premier
Vladimir Meciar on Slovakia's new language law and said he had already
initiated talks with Belgrade on the resettling of Serb refugees in
Vojvodina. Horn considers the measure as "modifying the province's
ethnic balance." The Hungarian premier also said Budapest will not
introduce visa requirements for citizens from neighboring countries but
will take other measures to prevent criminal elements from entering
Hungarian territory. -- Michael Shafir, OMRI, Inc.

[As of 12:00 CET]

Compiled by Pete Baumgartner

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date=8/24/95
type=correspondent report
number=2-184189
title=Hungary/Serbia  (l only)
byline=Stefan Bos
dateline=Budapest
content=
voiced at:

Intro:  Hungary has accused Serbian authorities of participating
in the ethnic cleansing of Hungarians living in Serbia.   As
Stefan Bos reports from Budapest,  a senior Hungarian official
has expressed concern about the situation in one particular
border area.

Text:  Foreign minister Laszlo Kovacs says there are increasing
tensions between an estimated 90-thousand Croatian Serb refugees
and the Hungarian community in the Serbian region of Vojvodina.
An estimated 450-thousand ethnic Hungarians and other minorities
live in this area.

In an interview with VoA, Mr. Kovacs said that Serbian
authorities are conducting a campaign of ethnic cleansing.

                            ///Act.///



         We have information that some Serbian parties have
         encouraged the Serbian refugees to come to the Vojvodina
         region.  So, I think that partly the Serbian authorities
         and partly the Serbian refugees are responsible for the
         situation we are in right now.

                          ///End act///

Serbian authorities have denied those accusations and say instead
that Hungary is intervening in Serbia's internal affairs.

Foreign minister Kovacs says, however, that he has enough
evidence that refugees, who fled the recent Croatian offensive in
the Krajina region are being encouraged to forcefully change the
ethnic composition of Vojvodina.

                           ///Act.///

The refugees who came from the Krajina region used their weapons.
And even some paramilitary units came.  They simply entered the
houses of Hungarians and ordered them to leave their house.  They
threatened them with their weapons.

                          ///End act///

Mr. Kovacs, who is also the current chairman of the Organization
of Security and  Cooperation in Europe, says he has asked his
organization  and the  Council of Europe to intervene.  He says
he would like to invite representatives of these organizations to
an international conference on the former Yugoslavia, which
Hungary plans to host later this year.

Meanwhile, Mr. Kovacs says his government has already sent a
formal protest to Belgrade about the situation in Vojvodina.

                           ///Act.///

We condemn any kind of ethnic cleansing and we also condemn the
change of the ethnic composition that has been formed through the
centuries.

                          ///End act///

Representatives of Hungarians living in Serbia held talks with
Mr. Kovacs on Wednesday and said they feared Serbian authorities
would not listen to any admonishments from Budapest.

Foreign minister Kovacs says his government fears that many
ethnic Hungarians might flee the Vojvodina region and he says
that Hungary does not have the financial resources to cope with
any such crisis.      (Signed)

neb/sp
24-Aug-95 4:43 pm edt (2043 utc)
nnnn

source: Voice of America

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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. 155                                                         21 August 1995


Hungary Stops Gas Supply to Bosnia at U.N. Request

        At the request of the United Nations Organization, Hungary 
closed the pipeline carrying Russian gas to Bosnia on Thursday 
evening.

        The U.N. sanctions committee has found that the supplies 
originally intended to aid Sarajevo reach only the Serbs. The measure 
was initiated by the Bosnian government itself, because it suspected 
the pipeline going across Serbia was being tapped somewhere. Hungary 
met the request of the world organization, Foreign Minister Laszlo 
Kovacs told on the evening newscast of Hungarian Television.

        "Hungary is not in a position to consider the decision. We 
began forwarding gas at the end of July 1993 also with the approval 
of the U.N. sanctions committee, and now at the committee's request 
we stopped the deliveries at 9.30 p.m. on Thursday," Kovacs said on 
television.

* * *

Gal - Ethnic Hungarian and Domestic Minority Leaders

        The Speaker of Hungarian Parliament, Zoltan Gal, on Saturday 
hosted a reception on the occasion of August 20, the Hungarian state 
holiday, for leaders of the Hungarian minorities beyond the borders, 
and the minority local governments in Hungary.

        "We do not recognize a double standard in the matter of the 
minority issue. For us, it is alike important that the nationalities 
living in Hungary feel at home here, in the knowledge of their 
appropriate rights, and we also feel an inevitable responsibility for 
our compatriots whose places of birth were carried by the storms of 
history to within the borders of other countries," Gal stressed.

        He called attention to the fact that alongside the results it 
has attained in the minority issue, Hungary has still not become the 
model for how to solve the problem.

        "The parliamentary representation of minorities remains to be 
solved, we cannot be satisfied with the state of education in the 
languages of the minorities, the regular availability of Hungarian 
newspapers and books in the neighbouring countries is not ensured, 
nor are the Hungarian publications published there readily available 
in Hungary, and the minority local governments are just taking their 
first steps," he added.

        "We cannot speak of modernization, economic consolidation and 
European integration unless we find mutually satisfactory solutions 
to the minority problems of our ethnically mixed region," the Speaker 
noted. He added this task mainly implies responsibility for the 
majority nations, as Hungary is well aware, and it hopes that this 
will be recognized by others as well, as soon as possible.

        According to MTI's information from the Prime Minister's 
Office, representatives of the Hungarians beyond the borders, and the 
minority organizations in Hungary, will be separately received by 
President Arpad Goncz and Prime Minister Gyula Horn on Saturday 
evening. The coalition deputy prime minister, Gabor Kuncze, Minister 
of the Interior, will host a reception for the leaders on Sunday, 
August 20.

* * *

August 20: Central Ceremony, President Goncz

        Hungarian President Arpad Goncz was the speaker on Sunday at 
the central ceremony on the Hungarian state holiday, August 20, 
commemorating the founder of the Hungarian state, Saint King Stephen, 
in the Buda Castle.

        Also present were the Speaker of Parliament, Zoltan Gal, 
members of the cabinet and representatives of Hungarians living 
beyond the borders.

        President Goncz appreciated the historical merits of the state-
founding Kind Stephen, and the vital importance of founding the state 
from the point of view of integration into the community of European 
nations. Discussing the still valid characteristics of King Saint 
Stephen's profession of faith as ruler, Goncz said:

        "The warning of Saint Stephen will continue to be valid both in 
Hungary and in its vicinity: multilingualism gives strength to a 
country. Our region is a mosaic of majority nations and minority 
fragments, and it is the vital interest of all states here to protect 
the self-identity of the national minorities living on their areas, 
both with respect to private and public life. To ensure this is the 
task and responsibility of the majority nation in Hungary, too, but 
it is by far not its exclusive internal affair, as the means and 
degree of this adapts to internationally approved standards. It is 
also the common cause of the nations living in our region, the 
guarantee of their indivisible security and mutual friendship, their 
genuine peace that rests on understanding."

        The president also discussed the most important tasks facing 
the country, the tasks of modernization and integration into a 
unified Europe. He said steps as, for instance, working out a long-
term industrial policy that increase industry's competitiveness, the 
effective support of agriculture, which is struggling with serious 
problems, the creation of health care that serves the benefit of 
patients and those in need, and the introduction of a more effective 
educational system, must be taken in order to restore economy.

        Goncz specially stressed the need to implement the profound 
reform of the state budget. 

        President Goncz said that fulfilling these goals demand 
sacrifices from society.

        "It is the obligation of the country's political leadership, 
the government coalition, to accept the task of putting our country's 
economic state in order, in a well-considered manner, based on social 
consensus as regards the means of implementation. Not obstructing the 
smooth, rational and least painful implementation of these goals is 
the obligation of the opposition. It is the obligation of both sides 
to carry out a free and continuous debate that keeps public interest 
in mind, that involves the citizens in solving their own future, and 
that eases social tensions," the president said.

* * * 

August 20: Ceremony in Opusztaszer, Prime Minister 

        "Our nation is again at a turning point, whether we shall come 
abreast of the community of advanced European nations, or shall 
hopelessly fall behind them," Hungarian Prime Minister Gyula Horn 
said on Sunday in Opusztaszer (Hungary), in the National Historical 
Memorial Park, at a ceremony held to mark the Hungarian state holiday 
commemorating the founder of the Hungarian state, King Saint Stephen.

        "At the threshold of a new century, our present is extremely 
difficult, and the resolution of our problems is frequently hindered 
by the lack of understanding," he added.

        Discussing the tasks facing the country, Horn said:

        "We must put our economy, our society and legal system in 
order, so that people be able to live amidst calculable conditions. 
We want a country that is capable of operating. The government has 
never denied this will be accompanied by sacrifices, it could not 
have promised immediate prosperity, as it knew that is impossible. 
However, the load-bearing capability of the nation also determines 
the degree of sacrifices, and taking this into consideration is not 
only in the interest of the government and the parties, but also of 
Europe. Unmanageable welfare tensions in this region are just as 
explosive as nationality conflicts.

        "The settling of our finances is only a part of our economic 
policy. The full governmental intention is aimed at a lasting 
economic recovery, the significant moderation of unemployment, and to 
restore the honour of work and the meaning of enterprise. The three-
year economic policy programme of the government, the plans for 
modernization open up prospects for the country," the prime minister 
said. 

        "Reconciliation with the neighbouring peoples is our historical 
task," Prime Minister Horn said.

        "We would like to conclude basic treaties with them not because 
we are ordered to do so by some European or non-European state. The 
lessons of history have issued the order: only a mother nation that 
is prosperous and that does not forget the minorities can provide 
assistance to Hungarians living beyond the borders by creating unity 
and a well-operating economy at home, and offering a friendly hand to 
those peoples with whom the Hungarian minorities coexist beyond the 
borders. We wish to have a good relation with both the Serbs and the 
Croats, and we profoundly regret the senseless bloodshed.

        "Hungary wishes to steer clear of the war. This does not mean 
we shall sit idly by, as we have frequently indicated that we are 
ready for political and diplomatic initiatives in order to end the 
war. The interests of our country and the Hungarians in the 
neighbouring countries demand that we not commit ourselves to the 
warring sides. Hungary takes a stand for universal peace, for ending 
the futile destruction, and for agreement between the peoples of the 
region.

        "The fact that we feel the support of the major nations offers 
hope for us. The majority of the European Union member states 
supports our membership in integration around the turn of the 
century," Prime Minister Gyula Horn said.

        He added that recognition from the leaders of the United 
States, their readiness to help inspires confidence in the Hungarian 
government.

* * * 

Opusztaszer Ceremony - Horn Meets the Press

        As was reported, Hungarian Prime Minister Gyula Horn delivered 
a speech at the state ceremony marking the Hungarian state holiday, 
August 20, in Opusztaszer (C Hungary), in the National Historical 
Memorial Park.

        After the speech, the prime minister visited the tents of the 
political parties participating in the event, then met 
representatives of the press.

        Answering questions, Horn said the Hungarian government had 
already issued a position regarding the settlement of Krajina Serbs 
in Vojvodina, and against the forcible home confiscations. The 
government considers all that is taking place in Vojvodina to be 
unacceptable.

        If possible, talks should be held within separate government 
frameworks with the Serbs, in order to end the forced actions, Horn 
said, and voiced the hope that no further conflicts will come about 
between the Serbs and the Croats.

        As regards his meeting initiated with the opposition 
parliamentary parties, Horn said he expect these to result in 
understanding in the common affairs. The state of the country does 
not permit bickering, he added.

        Horn said he accepts the proposal to hold a six-party 
coordination after the separate meetings with the opposition parties, 
hopefully before the autumn session of Parliament opens.

* * *

August 20: HSP Forum in Budapest, Horn 

        Hungarian Prime Minister Gyula Horn will put forward a proposal 
next week, to more powerfully enforce the equal and proportionate 
sharing of taxes and social insurance rates.

        Horn, who is also chairman of the Hungarian Socialist Party 
(HSP), the senior party of the government coalition, was speaking at 
a political forum organized by the HSP in Budapest's Margaret Island 
on Sunday.

        The prime minister did not provide details about his proposal, 
but said he continues to consider the introduction of property tax to 
be important.

        Horn also discussed his concepts relating to a cabinet re-
shuffle. He confirmed he wishes to implement the necessary changes by 
the end of the September. He considers setting up the post of deputy 
prime minister in charge of economic affairs to be necessary, and 
this is one of the topics he wishes to discuss during the meeting 
with the coalition partner, the Alliance of Free Democrats (AFD), 
scheduled for Monday, and with the opposition politicians during next 
week.

        The prime minister confirmed that Sandor Nagy, president of the 
National Confederation of Hungarian Trade Unions (NCHTU) is one of 
the candidates for the new post. Horn indicated that the constitution 
will have to be amended to create the post, and he considers the 
appointment of a person dealing with economic affairs to the 
government important even if he fails to win the support of the 
parties for the amendment.

        Horn said the appointment of a deputy prime minister in charge 
of economic affairs will not reduce the role of Minister of Finance 
Lajos Bokros, as he will continue to have important tasks at the head 
of the economic cabinet.

        Discussing foreign affairs, Horn announced the Hungarian 
government wishes to negotiate with the Serbian leaders about ending 
the settlements into, and the relocations from Vojvodina.

        In answer to another question, he said the Hungarian government 
has not, and will not remain silent regarding the Romanian education 
law. However, the relation between the two countries cannot be 
strained interminably.

        As regards Hungary's debt stock, the prime minister said the 
West should take steps to assist the countries of the Central and 
Eastern European region. He said the initiatives should be made from 
abroad.

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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. 156                                                         22 August 1995

Hungarian Austrian Agreement to Ease Border Traffic

        Several months of intensive talks have ended with the 
agreements that Hungarian Interior Minister Gabor Kuncze and his 
Austrian counterpart Caspar Einem signed on the easing of border 
traffic, in Morbischen, Austria, on Monday.

        The two ministers later told reporters that the new accords 
would allow citizens of both countries to cross the border more 
quickly on the separate lanes set up for them at the Hegyeshalom-
Nickelsdorf frontier post. The agreement on creating such lanes 
modifies a 1993 agreement, to take account of the new circumstances 
arising from Austria's joining the European Union and signing the 
Schengen agreement.

        Border controls will be carried out in six lanes, with separate 
lanes reserved for citizens of EU countries, Hungarian nationals and 
all those for whom there is no visa requirement in either Austria or 
Hungary, or are citizens of third countries.

        Another document signed on Monday will open the shortest road 
between the Austrian villages of Morbisch and Siegendorf, which 
crosses the border into Hungary at four points, to Hungarian and 
Austrian citizens and to people who need no visa to enter either 
country. (It is intended for use by pedestrians and cyclists, and 
tractors and other farm machinery may also use it.)

        In future, the passports of railway passengers will be checked 
while the train is moving.

        The two ministers exchanged notes, extending the right to use 
border crossing points, previously open only to Hungarians and 
Austrians, to all EU citizens, and opening the border crossing point 
between Pamhagen and Fertod for farm machinery as well.

* * * 

>From a Conflict to Peaceful Coexistence - Seminar at Szeged

        A war can be waged without involving citizens and residents but 
peace cannot be created without their cooperation. Once the fighting 
ends, a new society must be built where people live in peace side by 
side, and their peace depends on their will, said Istvan Gyarmati, 
representative of the chairman-in-office of the Conference for 
Security and Cooperation in Europe when he addressed the opening 
ceremony at an international seminar in Szeged, southern Hungary 
today.

        Over 40 people from peace movements and groups in 15 countries 
are meeting to discuss tolerance and peaceful coexistence.

        In connection with the war in the former Yugoslavia, he said 
that conclusion of the war was a precondition to any settlement, but 
with the conclusion of fighting, conflicts will not be solved.

        Many difficult tasks need to be done: establishment of a 
Bosnian state, resettlement of Croat-Serb, Croat-Serb-Bosnian 
relations, elimination of weapon stockpiles in the region and the 
settlement of minorities status on the basis of European norms.

        These are tasks whose solution, even if the war ended tomorrow, 
could last years or even decades, he said. Gunnar Lassinantti, 
international secretary in charge of the Stockholm-based Olof Palme 
International Centre supporting the seminar, called for an end to the 
over four-year war. He said negotiations and peaceful solutions were 
needed, and it was important that peaceful and honest people get the 
world's support. He paid tribute to efforts by Hungary for creating 
peace in the region.

        The conference affects three countries: the delegates will also 
meet in Timisoara and Subotica. If they can, they will visit Vukovar 
to gain first-hand experience.

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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. 157                                                         23 August 1995


Foreign Ministry State Secretary to Visit Africa

        Ferenc Somogyi, administrative State Secretary at the Hungarian 
Foreign Ministry, will pay an official visit to the Republic of South 
Africa from August 28 to September 3, and he will have talks in 
Nigeria on September 4-5.

        Somogyi's discussions will concentrate on the development of 
economic relations, the Foreign Ministry told MTI on Tuesday.

* * *

Crossing the Hungarian-Austrian Border Eased

        "The technical conditions exist for Hungarians, citizens of 
European Union states and third countries to use separate lanes to 
cross into Austria not only at Hegyeshalom, but also at Rabafuzes, 
Sopron, Kophaza and Koszeg," Lieutenant-Colonel Jozsef Komuves, 
deputy spokesman for the Hungarian Border Guards, told MTI on 
Tuesday.

        As we reported, the Hungarian and Austrian interior ministers 
signed agreements on easing and accelerating border traffic, in 
Austria on Monday.

        For the time being, however, travelers will be separated in 
accordance with the passport they are carrying only at Hegyeshalom: 
from September 1, for outgoing traffic, and for incoming traffic as 
well, two months later, the deputy spokesman said.

        Although the new system cannot be introduced at Bozsok, 
Szentpeterfa and Fertod, more than 90 per cent of transit traffic, 
which causes the biggest delays, goes through Hegyeshalom, Komuves 
added.

* * *

Premier Horn to Meet Opposition Leaders

        As reported earlier, Prime Minister Gyula Horn has asked to 
meet the chairmen and the heads of the parliamentary groups of the 
four parliamentary opposition parties, the Hungarian Democratic 
Forum, the Christian Democratic People's Party, the Independent 
Smallholders" Party and the Federation of Young Democrats - Hungarian 
Civic Party.

        Horn will meet the heads of the Hungarian Democratic Forum and 
the Christian Democratic People's Party on Wednesday, and on Friday 
the leaders of the Independent Smallholders Party and the Young 
Democrats.

        Democratic Forum President Lajos Fur told MTI today he would 
not attend the meeting because the topics for discussion chosen by 
the prime minister - such as the autumn timetable of legislation, and 
topical constitutional questions, are the responsibility of the 
parliamentary leader and his deputy. Therefore, on Wednesday, the 
Hungarian Democratic Forum will be represented by Ivan Szabo, leader 
of the party's parliamentary group and his deputy Imre Konya.

        Fur added that the Democratic Forum had proposed last week a 
discussion on the planned reduction of the armed forces, the present 
state of law and order and the police, plans for privatizing the 
energy industry, and the media. However, no response came from either 
the prime minister or his colleagues, he said.

        Konya said his party did not expect any substantive result from 
the meeting, but he hoped they could draw Horn's attention to the 
most pressing problems such as law and order and the financial 
difficulties of the police.

        The Christian Democrats will be represented at Wednesday's 
meeting by executive chairman Tibor Fuzessy and Tamas Isepy, leader 
of the party's parliamentary group.

        The Christian Democrats would also like to discuss the 
privatization of the energy sector and to have a review of the bill 
on radio and television based on the former six-party agreement.

* * *

Hungarian-Romanian Civil Forum in Szeged

        The Hungarian-Romanian Friendship Society, based in Pecs, 
southwestern Hungary, will organize the 3rd Hungarian-Romanian Civil 
Forum entitled "Side by Side in Friendship" in Szeged, southeastern 
Hungary, at the weekend.

        The topic of the three-day meeting, starting on Friday, 
includes the motives behind and means of strengthening the friendship 
between the two countries.

        Peter Kimpian, chairman of the organizing committee, told a 
press conference in Szeged today, that some 60-70 Romanian and 
Hungarian members of the society will attend.

        They will try to provide an answer to such questions as "how 
can Hungary and Romania become good neighbours?" and "how can the two 
peoples live in friendship, side by side, in the two countries?"

        They will also discuss what the society's members can do to 
promote good neighbourly ties, and what means and forms of popular 
diplomacy should be employed in their work.

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A tovabbterjesztest a New York-i szekhelyu Magyar Emberi Jogok
Alapitvany tamogatja.

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