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1 Ministry of Foreign Affairs - Newsletter (marc.2) (mind)  381 sor     (cikkei)
2 Ministry of Foreign Affairs - Newsletter (marc.3) (mind)  192 sor     (cikkei)
3 CET - 6 March 1995 (mind)  155 sor     (cikkei)

+ - Ministry of Foreign Affairs - Newsletter (marc.2) (mind) VÁLASZ  Feladó: (cikkei)


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. 45/1995                                     02 March 1995

Foreign Affairs Committee Head's Visit to N America

        Budapest, March 1 (MTI) - Matyas Eorsi, chairman of Hungarian
Parliament's Foreign Affairs Committee, left Budapest on Wednesday to pay a
visit to Ottawa and Washington as a member of the delegation of the Political
Committee of the Western European Union's Assembly (WEU), Hungarian
Parliament's press department has told MTI.

        The delegation will be informed about Canada's foreign and defence poli
in the Senate and House of Commons of Canada, and will go on to Washington to
gather information about the United States" foreign and defence policy, and
relating to the expansion of NATO, from the Senate and the House of
Representatives, the State Department, the Pentagon and research institutes.

Basic Treaties, Hungary Will Not Make Concessions

        London, March 1 (MTI) - It is the Hungarian government that will sign t
basic treaties, not Parliament, nor the opposition nor ethnic Hungarians beyond
borders. Thus it is the government's responsibility to assess all the views and
positions expressed and decide either yes or no, Hungarian Foreign Minister
Laszlo Kovacs said in an interview with the BBC today.

        "We do not want to conclude a basic treaty because somebody is exerting

pressure on us, but because we are convinced that it is in the interest of
and ethnic Hungarians beyond the borders to conclude an appropriate basic
Kovacs said in answer to the question to what extent the pressure exerted by
West European countries on Hungary to meet the late March deadline had
influenced the Hungarian government."

        "Pressure is being exerted on us in the sense that- or perhaps we are b
urged to conclude a treaty is a better way of putting it-in that the member
states of
the European Union, and obviously the United States as well, would like to see
such basic treaties concluded between Hungary and Romania and Hungary and
Slovakia, before the Paris conference on European stability due to start on

        This would bring the advantage that the two treaties would be incorpora
into a European pact on stability, and would therefore be part of other basic

        This would also be advantageous to us because it would provide a kind o
direct, additional international guarantee that the provisions laid down in
treaties will be carried out.

        The Hungarian government will do its best to conclude the basic treatie
before the above mentioned deadline, but it is out of the question that we
make any essential concession in principle to comply with the request put
by the European Union or France. "

        Kovacs stressed that ethnic Hungarians beyond the border would have an
opportunity to express their views on the basic treaties.

        "This is not a question of approval, what they will do is express their
I do not think that we shall present a basic treaty before them which would be
rejected by them out of hand, but I suppose they will have certain

        "We shall try to dispel these reservations, thus we shall interpret the
treaty, and we shall interpret their position" - he noted.

        "It is possible that serious reservations will be expressed that will p
the Hungarian government to reconsider its position, and it is also conceivable
there will be minor reservations, despite which the Hungarian government will
for signing the treaties," stressed Kovacs.

Prime Minister Horn Visits Defence Ministry

        Budapest, March 1 (MTI) - Prime Minister Gyula Horn disagrees with
Western views that the new way of thinking in the Hungarian armed forces is not
sufficiently in evidence.

        The prime minister was speaking to officers at the Defence Ministry on
Wednesday when an order on the transformation of the top leadership of the
Hungarian armed forces was read out.

        Prime Minister Horn said he had recently had several rounds of discussi
on expectations relating to NATO integration, and he had heard several times
view expressed that the new way of thinking, considered to be the key
to accession to NATO, has not been put into effect to an acceptable degree in
armed forces and other organizations.

        Horn said he rejected this view and that the Hungarian military were in
adjusting to the requirements laid down by Western democracies.

        He also confirmed that the objective of the economic restructuring in
Hungary is to facilitate accession to the European Union and NATO.

        Reform of the armed forces is particularly important in promoting
integration with NATO.

        Horn called for specific coherent measures to ensure the establishment
of a
truly modern army.

        The Prime Minister expressed his thanks to the military for their
understanding and patience with regard to the country's difficult economic
and for continuing to perform well in difficult financial circumstances.

        Prime Minister Horn said he was aware of the difficulties that soldiers
to make a decent living, and as soon as it was possible, the government would
improve their conditions.

        Horn said he had great respect for the army's conduct in the conflicts
are brewing around Hungary. He said the current events in Croatia represented
potential sources of danger.

        Defence Minister Gyorgy Keleti said that the armed forces expected
Parliament and the government to ensure satisfactory living and working
conditions, but that the military would not make demands.

        It was announced at the gathering that in connection with the transform
of the top level leadership in the Hungarian Armed Forces, Major General Bela
Biro, first deputy to the Chief of Staff had been promoted to Lieutenant
Brigadier General Laszlo Botz to Major General and Colonel Mihaly Gyenes to
Brigadier General by the President of the Republic.

        The Defence Minister also appointed Botz head of the Military Intellige
Agency effective from March 1.

        Major General Jozsef Wekerle was named head of land forces, Major
General Tibor Szegedi head of the air force and air defence units, Major
Nandor Hollosi head of the logistics section and Major General Janos Gilicz was
named head of the human resources group.

National Security Bill Before Parliament

        Budapest, March 1 (MTI-ECONEWS) - The Hungarian parliament this
week began discussing a bill on the operation of the country's national

        The bill will have ramifications in Hungarian business. Under the bill,

national security services are obliged to work together with business entities,
whereas business entities are permitted to co-operate with the services but are
obliged to. Such co-operation can be detailed in written agreements.

        Wholly or majority state-owned companies and budget-funded research
institutes form a special category of business entity. These companies are
to deliver information to the national security services upon request. If
ordered by a
security service director, they must employ a member of the service. Such an
employment is considered to be top secret.

        Security services are also allowed to establish business entities as "c
organizations, formed and operated from the budget of the service.

        Under the law on business entities these corporations must be registere
d at
the Registration Court.

        The amount required for the establishment of such an entity is consider
to be a special operation cost, which means it does not have to be listed in
detail in
the state budget.

        The bill stipulates that the directors of wholly or majority state-owne
companies, banks, specialized financial institutions and insurance companies
must be investigated by national security services before their appointment.

        The bill also permits the search of offices and other company rooms as
as private homes.

Hungarians Beyond the Border - Tabajdi

        Budapest, March 1 (MTI) - Leaders of the Democratic Community of
Vojvodina Hungarians (DCVH) did not attend the Budapest consultation organized
for representatives of Hungarian organizations beyond the borders, on the
of Csaba Tabajdi, political State Secretary of the Prime Minister's Office.

        Speaking to MTI following the meeting on Wednesday, titular State
Secretary Laszlo Labody, President of the Office for Hungarians Beyond the
Borders, said the DCVH considers it a matter of ethics to not attend talks
the Hungarian Federation of Vojvodina is also present.

        At the same time, leaders of the DCVH will be present at a meeting
scheduled for later today between Hungarian Prime Minister Gyula Horn and the
senior officials of the organizations.

        Tabajdi said this was the first time that the Hungarian national commun
in the Carpathian basin met with such extensive participation, to discuss how
interests could be better presented on the international forums.

        Tabajdi said he presented several areas for this: more active participa
in local politics and local governments; making use of the opportunities
offered by
embourgeoisement, the market and privatization in the creation of livelihoods;
solidarity and cooperation between the various groups of the Hungarian
organizations; more effective propaganda abroad; the issue of their relation
the prevailing Hungarian government; a stronger representation of the Hungarian
minority's demands by the Hungarian government, in a way that conforms to

        Tabajdi said all participants agreed to hold regular consultations in t

        Bela Marko, President of the Hungarian Democratic Union of Romania
(HDUR), said the staging of the forum was in itself a success. In answer to
questions he said no break-up was expected in the organization.

        Miklos Duray, President of the Slovak Coexistence, said that, to a cert
extent, the Hungarians living in the various countries are one and indivisible,
is why it is possible for them to think and work together.

        Reformed Bishop Laszlo Tokes, honorary President of the HDUR,
appreciated the fact that the Hungarian government approaches the problems of
ethnic Hungarians in a unified manner.

        Bela Bugar, President of the Hungarian Christian Democratic Movement of

Slovakia, said that problems that the West is sensitive to should be emphasized
before the international public. As examples, he mentioned regionalism, private
property and issues related to security.

Foreign Minister - Hungarians Beyond the Border

        Budapest, March 1 (MTI) - "The Hungarian government most firmly strives

to have the Hungarian-Romanian and the Hungarian-Slovak basic agreements
concluded before March 20, when the European Stability Agreement is scheduled
to be signed in Paris, and for these agreements to be meaningful documents
acceptable to all sides concerned," Hungarian Foreign Minister Laszlo Kovacs
said, after his meeting with representatives of the Hungarian organizations
the borders.

        Kovacs said he had informed the minority leaders about the Hungarian
government"s intentions to improve neighbourly relations, and about the latest
developments in the talks related to the mentioned basic agreements.

        As regards the opinion that has allegedly been leaked from government
circles, whereby a Hungarian-Romanian basic agreement might possibly not come
about at all, Kovacs said such views fall under the category of premature

        Kovacs said he believes a shift can be experienced in Bucharest's posit
on the minority issue, as the Romanian side has shown a readiness for making
international documents it signed earlier into internal laws.

Horn Meets Ethnic Hungarian Leaders

        Budapest, March 1 (MTI) - Hungarian Prime Minister Gyula Horn on
Wednesday received the leaders of the Hungarian organizations from beyond the
borders. In the course of the nearly 90-minute long meeting, the sides mainly
discussed the basic agreements to be concluded with Slovakia and Romania.

        The Prime Minister declined to give a statement to the press following

        The political State Secretary of the Prime Minister's Office, Csaba Tab
who is in charge of minority affairs, told MTI that representatives of the
Democratic Union of Romania (HDUR) and the Hungarian coalition from Slovakia
presented the guarantee elements which they consider necessary to enforce the
rights of minority Hungarians.

        These basically coincided with what Horn expressed at the meeting.
Tabajdi said the HDUR and the Hungarians in Slovakia basically agree with the
draft basic agreement which the Hungarian government forwarded to them in

        "Naturally, more minority rights would imply greater guarantees for the
however, they have no objections from the strategic point of view," Tabajdi

        However, Tabajdi declined to predict whether the Hungarian-Slovak
agreement can be concluded by March 20. He said the such a document is always
the product of compromise, but "the ball is now in the other court".

        HDUR President Bela Marko told MTI the Romanian Hungarians continue
to represent their earlier position as regards the basic agreements, whereby it
should significantly contribute to settling the situation of Transylvanian

        Miklos Duray, leader of the Slovak Coexistence, said the Slovak
Hungarians clearly set forth the kind of basic agreement they consider as still
acceptable. Horn agreed with their position, as he also considers it necessary
some of the international documents be included in the basic agreements in a
that they eventually be incorporated into the domestic laws of the countries

        Duray added that a political turn must take place in the position of th
Slovak side in order for the agreement to be signed by March 20.

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

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           [*]   [*]  [*]   [*]  [*]  [*]  [*]
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           [*]   [*]  [*]   [*]  [*]  [*]  [*]    
           [*]   [*]  [*]   [*]  [*]   [*] [*]

Reposting is supported by Hungarian Human Rights Foundation News
and Information Service.

+ - Ministry of Foreign Affairs - Newsletter (marc.3) (mind) VÁLASZ  Feladó: (cikkei)

Foreign Affairs Talks with Slovakia and Romania

        Budapest, March 2 (MTI) - Ferenc Somogyi, administrative state secretar
at the Hungarian Foreign Ministry, will hold bilateral talks in Bratislava on
March 3 and in Bucharest on March 7 in order to survey the state of
negotiations on the basic treaties, and promote their further progress.

        The Foreign Ministry spokesman on Thursday said that in Bucharest,
Somogyi and Romanian Foreign Ministry state secretary Marcel Dinu would sign a
memorandum on bilateral links between Romania and Hungary.

Hungary's Trade Deficit USD 3.9 Billion Last Year

        Budapest, March 2 (MTI) - Hungary's trade balance showed a deficit of
HUF 408 billion (USD 3.9 billion) last year, the Central Statistical Office
told MTI today.

        Imports amounted to HUF 1,537 billion at current prices, and exports we
worth HUF 1,128.7 billion, with respective increases of 32 and 38 per cent from
the previous year. At unchanged prices, both imports and exports rose by about
18 per cent.

        General goods turnover made up over four-fifths of imports and three-
quarters of exports. In this respect, imports went up by 28 per cent and
exports by 33 per cent in 1994. The value of contract work increased by 58 per

Horn, Meciar Discuss Basic Treaty

        Bratislava, March 2 (MTI) - Today, Hungarian Ambassador to Slovakia
Jeno Boros confirmed reports that the Hungarian and Slovak prime ministers had
held a telephone conversation on Wednesday.

        In answer to a question by MTI's Bratislava correspondent, he said the
state secretaries of the Hungarian and the Slovak foreign ministries will, as a
result, meet in Bratislava on Friday.

        Boros said: "In view of the current state of talks about the basic trea
ty, and
in order to meet the deadline set, the prime ministers agreed to elevate the
talks from expert consultations to the political level."

        Miklos Duray, President of the Slovak political movement, Coexistence,
who on Wednesday was present at the Budapest talks on the basic treaty as a
member of the three-party Hungarian Coalition delegation, told MTI that
Hungarian Prime Minister Gyula Horn had informed him about his telephone
conversation with Vladimir Meciar, and that "it had been agreed to raise the
talks to a higher level in order to achieve progress. This should be
interpreted as meaning that the differences between the two sides had not
narrowed at the
expert talks held in Bratislava on Monday and Tuesday. The Slovaks rejected the
Hungarian proposal that the basic agreement should consist of two parts, the
basic treaty proper and a rider on the minorities. Bratislava is only willing
discuss the text of the basic treaty," Duray said.

        Officials from the Hungarian Prime Minister's Press and Government
Spokesman's Office told MTI in Budapest on Thursday, that the telephone
conversation had been at the initiative of the Hungarian Prime Minister.

        They also said that Gyula Horn had telephoned Romanian President Ion
Iliescu as well, and held talks with him about the basic treaty.

FM Reports to OSCE Permanent Council

        Vienna, March 2 (MTI) - The Vienna-based Permanent Council of the
Organization for Security and Cooperation in Europe is satisfied with the first
three months of the Hungarian presidency, ambassadors addressing a meeting of
the Secretariat said, in Vienna, today.

        The American, the French, the Russian, the Turkish, the Estonian and th
Polish ambassadors stressed the activity and impartiality of the Hungarian
presidency's work. The ambassadors also praised the continuous flow of
information they had received as events unfolded.

        The Permanent Council heard a report by the Chairman-in-Office,
Hungarian Foreign Minister Laszlo Kovacs about the work carried out so far, and
the tasks ahead.

        Reporting on the mission to Chechnya, Kovacs said he had received
support from Russian diplomats. He described the situation as being still bad,
and said the most important task was to bring about a cease-fire that holds,
ensure the smooth flow of humanitarian aid.

        As the next step, the OSCE is to open a permanent representation in
Chechnya, Kovacs said. In answer to a question, he said a political settlement
was possible within a few months. The aim was to hold democratic elections, but
a precondition for this was a cease-fire.

        The Foreign Minister said tensions between the different nationalities
increased in Macedonia, which is why the visit of the Minorities Commissioner
the region also seems to be necessary, as well as having a permanent
representation there.

        An OSCE delegation with three or four members will shortly travel to
Nagorno Karabakh, Kovacs said, and the 3,000-4,000-strong peace-keeping force
is expected to leave at the end of March. This will be the first undertaking of
its kind by the OSCE, he added.

        The Hungarian Foreign Minister held bilateral meetings with the
ambassadors of the United States, Russia, the European Union and the OSCE

        Kovacs discussed cooperation between the OSCE and the United Nations
in a separate meeting with U.N. Secretary-General Boutros-Boutros Ghali, who
promised support for the OSCE's peace-keeping work, which is a new task, and
raised the possibility of a joint U.N.-OSCE peace-keeping mission in the

        In Vienna, Kovacs attended a lunch hosted by senior Austrian politician
for participants of a conference on the peace-keeping role of the United
Nations, and met Austrian Foreign Minister Alois Mock.

        After an international press conference held in the Hofburg, Kovacs
returned to Budapest on Thursday evening. He will return to Vienna on Saturday,
to deliver a lecture at the U.N. conference.

Foreign Policy Debate on Basic Treaties

        Budapest, March 3 (MTI) - Hungary has done everything possible to
conclude the Hungarian-Slovak and the Hungarian-Romanian basic treaties, it has
gone as far as it could. It now expects its partners to show flexibility,
according to the political State Secretary of the Foreign Ministry, Istvan

        Szent-Ivanyi was speaking in Budapest on Thursday evening, at a foreign

policy debate organized by the Friedrich Ebert Foundation, which is close to
German Social Democratic Party, SPD.

        He said it would not have a harmful effect on Hungary's attempt to
integrate into Europe if the treaties were not concluded by March 20, for which
Hungarian diplomacy could not, in any case, give any guarantee.

        On both sides there are still too many emotions attached to the subject

matter of the basic agreements, the State Secretary said.

        Szent-Ivanyi's opponent in the debate was the Deputy Chairman of
Parliament's Foreign Affairs Committee, Gyorgy Csoti of the opposition
Democratic Forum (HDF).

        Csoti said it had been a mistake to promise the conclusion of the
agreements by March 20. If this deadline is not met, Csoti believes, the West
will be disappointed, and this will adversely affect Hungary's chances of
The HDF politician would make the signing of the treaties dependent on the
agreement of Hungarian organizations beyond the borders.

        Csoti said that ever since the Hungarian Socialist Party and the Allian
ce of
Free Democrats had entered into coalition in May, 1994, consensus had existed
on paper only, and the issue of the basic treaties had played a role in this,
as had the fact that the government gave preference to good neighbourly
relations over the cause of Hungarians living beyond the borders.

        He said the touchstone of consensus would be the signing, or the failur
e to
sign the basic treaties.

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.

+ - CET - 6 March 1995 (mind) VÁLASZ  Feladó: (cikkei)

Monday, 06 March 1995
Volume 2, Issue 46

  Hungarian ethnic minorities are demanding the right to veto
  two treaties Budapest hopes to sign this month with Slovakia
  and Romania.  The World Federation of Hungarians says the
  treaties are inadequate.   Negotiations are complicated
  further by the fact that Slovakia doesn't want the treaties to
  mention a number of international resolutions on minority
  rights that Budapest does want included.  The treaties are
  an essential part of Hungarian, Romanian and Slovak plans to
  join the European Union and NATO since both organizations
  insist that prospective members have bilateral problems
  resolved before they join.

  More than 20 Russian sailors have gone on a hunger strike in
  Hungary to try to force their employers to pay them thousands
  of dollars in back wages.  The Russians are working for a
  Greek shipping company, Adriatic Tanker and its agent Aqua
  Star Marine.  The sailors claim they're each owed between
  $10,000 and $20,000.  They're being housed relatively well in
  Budapest hotels paid for by Aqua Star Marine, but they're
  still upset at not being paid and they refuse to go back to
  Russia until they get their full salaries.  Most of the
  sailors have gotten only an advance of a few hundred dollars.
  But an Aqua Star spokesman says it's common for sailors not to
  be paid until they've finished their service.  The spokesman
  also says the Russians are owed "significantly less" than the
  $800,000 they insist is due to them.


  London-based CVC Capital Partners and Hungary's Bankar Limited
  are planning to create an investment fund to re-structure
  ailing Hungarian businesses.  The so-called Hungarian Capital
  Fund will be backed by the European Bank for Reconstruction
  and Development and Citibank to the tune of about $10 million.
  The fund hopes to attract another $60 million.  Many of the
  companies the fund has targeted are scheduled for
  privatization this year.


  Interview with Stephen Feid, who works in emerging market
  sales for Nomura Securities in New York.
  By David Fondler

  Last week saw shares from the second wave of privatization make
  an appearance on the Czech markets, while there were on-going
  political changes in Poland and Hungary.  Still, foreign
  investors are skeptical and pessimistic about the region's
  stock exchanges.  We begin with a broad assessment of the
  region's markets:

  Feid:  They continue to get worse.  Poland is a political
  mess right now, Hungary's macro-situation continues to get
  worse and the second wave in the Czech Republic has not gone
  too well.  So, from our clients' standpoint, things are very
  much on hold, I think we've been expecting these markets to
  act better, and they're not, so it's very frustrating at this

  CET:  Let's start by looking at Prague, the second wave came on
  line on Wednesday of the week and didn't do too well.  Is it
  going to take these stocks some time to level out and find
  their natural valuations?

  Feid:  I think that's probably exactly right, it's just going to
  take some time and our customers are just going to stand on
  the sidelines and wait.  I think there's money committed to
  some of the bigger stocks, the CEZes and Komercni Banks, but
  at this point, it's going to be on the sidelines until these
  individual issues sort themselves out.  I think you'd have to
  see some sort of bounce in SPT Telecom as a good signalling

  CET:  SPT lost 10 percent on its first day of trading, but
  admittedly that price was artificially set anyway.  It doesn't
  really reflect a true valuation, which will have to be found.
  Let's also look at some specifics in Budapest, talk that a
  devaluation is not in the cards, at least not anytime soon, is
  that going to start putting some money back into the market,
  money that was holding back, waiting for the forint
  devaluation to happen in Budapest?

  Feid:  I think so, we're saying we're going to wait one more
  week, see what the fallout is.  Most of these companies are
  reporting fantastic earnings in the last quarter and for the
  year, and we're very excited about them, especially the export
  companies, they seem to have the wind at their back.

  CET:  Now finally, let's turn to Poland, a political mess as you
  said earlier, no one seems to know what Walesa's agenda is,
  but people keep saying the economic program is stable, and a
  lot of potential in the companies there.  Are investors just
  going to eventually ignore this political brouhaha and start
  putting some money in Warsaw?

  Feid:  People are very disappointed with the way Walesa's is
  handling the whole situation, and I think it's very clear cut
  that he's maneuvering for his own political re-election at the
  expense of what's best for the country.  And I guess you can
  make an argument that investors get sick of the day to day
  political wranglings and look at these companies on their
  individual merits, and the country's macro-situation is in
  good shape and the money will start flowing in.  As in all
  these countries, the first big wave will probably lead to a
  nice up move.

  CET:  And of course as we've seen in the past, investors can put
  their money elsewhere.  Despite the potential, there's lots of
  markets to go into now, why go into a place where the politics
  are so screwed up?

  Feid:  Right.  That's exactly right.


* CET On-Line - copyright (c) 1995 Word Up! Inc. All rights reserved.
  This publication may be freely forwarded, archived, or
  otherwise distributed in electronic format only so long as
  this notice, and all other information contained in this
  publication is included.  For-profit distribution of this
  publication or the information contained herein is strictly
  prohibited.  For more information, contact the publishers.

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

           [*]   [*]  [*]   [*]  [*][*]    [*][*][*]
           [*]   [*]  [*]   [*]  [*]  [*]  [*]
           [*][*][*]  [*][*][*]  [*][*]    [*][*] 
           [*]   [*]  [*]   [*]  [*]  [*]  [*]    
           [*]   [*]  [*]   [*]  [*]   [*] [*]

Reposting is supported by Hungarian Human Rights Foundation News
and Information Service.