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. 218. 23. November 1995
Kovacs Interview in "Uj Szo"
Bratislava, November 23 - No one can steadily defy the
international community because this attitude eventually hurts the
interests of the given country and the given people, Hungarian
Foreign Minister Laszlo Kovacs said in an interview carried by the
Thursday issue of the Bratislava daily "Uj Szo".
Concerning Bratislava"s delay in ratifying the Hungarian-Slovak
basic treaty and the situation brought about by the passage of the
language law, Kovacs said, "we are looking for the ways of convincing
the Slovak side".
The foreign minister indicated Hungary"s intention of raising
the issue in the international organizations of which both countries
are members or seek to become members. Kovacs said he would welcome
if the idea brought up during the recent meeting of Gyula Horn and
Vladimir Meciar would be realized, namely "the two countries would
together appeal to the Council of Europe, asking it to help settle
the situation. I will initiate this during my meeting with Slovak
Foreign Minister Juraj Schenk,"
Kovacs said he was confident that Bratislava would ratify the
basic treaty, all the more so because Slovakia is also aware that
"the ratification of international treaties signed by prime ministers
proves the trustworthiness of the country concerned. Anyway, the
Vienna Convention declares that, after an international treaty has
been concluded, the signatories should abstain from any step that
would be contrary to the letter and spirit of the treaty."
The Hungarian foreign minister stressed, "Hungary does not make
any step that would hinder or thwart Slovakia"s Euro-Atlantic
endeavours. On the contrary, it lies in Hungary"s interest that as
many of its neighbours as possible should join the Euro-Atlantic
institutions."
Kovacs and Joulwan on Future NATO Operations in Bosnia
The Hague/Brussels, November 23 - NATO attributes great
importance to Hungary"s possible contribution to peacekeeping in
Bosnia and thus would appreciate Budapest ensuring the conditions
needed for the peacekeeping units to reach their destinations, NATO
Commander-in-Chief General George Joulwan told. The
Hungarian foreign minister said Hungary"s approach to the Bosnian
peacekeeping operations is based on its interest in enduring peace in
its neighbourhood and in cooperating with NATO.
Kovacs confirmed that the Hungarian government backed
assistance to NATO, adding that the final decision will have to be
made by Parliament. However, preliminary consultations with the six
parliamentary parties show strong support among Hungarian MPs.
Technical assessments have already begun, but operations in Hungary
may only start after Parliament has given its consent.
Ethnic Hungarians of Slovakia Discuss Language Law
Bratislava, November 23 - The leaders of the ethnic Hungarian
parties of Slovakia are to meet Hungarian Prime Minister Gyula Horn
in Budapest on Thursday.
On the Foreign Ministry"s invitation, the leaders of the three-
party Hungarian coalition of the Slovak Parliament, namely chairmen
Laszlo A. Nagy of the Hungarian Civic Party, Miklos Duray of the
Coexistence Political Movement, and Bela Bugar of the Hungarian
Christian Democratic Movement are to hold talks with Horn, Laszlo
Kovacs, Foreign Minister, Csaba Tabajdi, State Secretary at the Prime
Minister"s Office, and Laszlo Labody, President of the Office for
Ethnic Hungariany Beyond the Border. The talks will focus on the
situation brought about by the approval of the Slovak language law.
On Friday, at their request, the Hungarian politicians of
Slovakia will meet Slovak President Michal Kovac and try to persuade
him not to sign the law.
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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. 219. 24. November 1995
Goncz's Letter to Slovak President
Budapest, November 23 - Hungarian President Arpad Goncz turned
to Slovak President Michal Kovac in letter, in connection with the
language law recently approved by Slovak legislators, the
presidential press office told MTI on Thursday.
Goncz asked Kovac to seek a resolution to the situation that
has evolved since the passing of the language bill, in accordance
with European norms. The Hungarian president mentioned the two
countries' aspiration to develop good-neighbourly relations, to reach
historic reconciliation, create democratic, law-governed states, and
ensure sufficient rights to their minorities.
The Hungarian president suggested the situation of a country's
minorities is part of democracy and cannot be seen as an internal
affair of the country in question.
Embargo Causes Hungary USD 2.2 bn Indirect Losses
Budapest, November 23 - According to Hungarian Ministry of
Industry and Trade estimates, the embargo since June 3rd 1992 against
the Federal Republic of Yugoslavia (Serbia and Montenegro) has cost
Hungary over 2.2 billion in lost trade.
The greatest loss, some USD 1 billion, was in 1993. In 1994
Hungary's embargo-related losses amounted to only USD 571 million,
and in the first nine months of 1995, to some USD 300 million, claims
a report by the ministry, sent to MTI today.
The losses have been caused partly by a fall in export markets,
extra costs stemming from re-diversion of exports, hindrances in
supply, and cancellation of transit shipments.
A one-off state subsidy issued in a bid as partial compensation
for damage caused by the embargo, USD 2 million in 1994, increased
government losses.
Embargo-Tightened Border Control Over
Budapest, November 23 - Sanctions have ceased at all Hungarian border
crossings to Serbia, the National Command of the Customs and Excise
Office (NCCEO) has told MTI.
With the embargo lifted, the two United Nations advisory
missions in Hungary have also ended their work here. One of them was
a patrol boat of the Western European Union, serving at Mohacs (S
Hungary), and the other an advisory body on sanctions set up by the
European Union and the Organisation for Security and Cooperation in
Europe, which was on duty on the Hungarian-Serb border.
The NCCEO expects a significant increase in traffic at the
border posts up to now affected by the embargo.
From July 19, 1993, to November 16, 1995, the Customs and
Excise Office started proceedings in 447 cases against sanctions
violators, with goods involved worth HUF 645 million, Privately,
mainly Yugoslav citizens tried to get round the embargo, while
various nationalities were caught out in larger-scale evasion.
The embargo still in force in the Serb-held area of Bosnia does
not affect Hungarian customs as Hungary has no border with Bosnia.
The United Nations weapons embargo remains in force.
Peacekeeping Preparations - Hungarian Liaison Officer
Budapest, November 23 - NATO officials were highly appreciative
of Major General Ferenc Vegh, who is expected to be appointed first
deputy of the Hungarian Army's Chief-of-Staff, and will also
coordinate on the highest level the military issues related to the
Bosnian peacekeeping operation, the Chairman of Hungarian
Parliament's Defence Committee, Imre Mecs, told MTI on Thursday.
Mecs, who had just returned from Brussels, reported that Vegh
visited the NATO headquarters one week ago, and his partners had a
very good opinion about the Major General, who studied in the United
States for two years.
Vegh is currently heading a working group within the Hungarian
Army that deals with issues related to achieving the so-called
intellectual compatibility necessary for NATO membership.
Mecs also said that Brussels officials are already negotiating
with Hungary almost as a NATO ally, and highly appreciate Budapest's
planned participation in the Bosnian peacekeeping operation.
Mecs said he does not consider it a security risk factor that
an American base will be set up in Baranya county (SW Hungary), as
the peace conditions were alike accepted by the Serbs, Croats and
Bosnians. At the same time, the politician is confident that a
similar consensus will come about between the six Hungarian
parliamentary parties when Parliament votes about Hungarian
participation in the peacekeeping operation.
Goncz on Situation and Prospects of Eastern Europe
The Hague, November 23 - The order of value of former socialism
has once and for all collapsed in the Eastern European new
democracies, however, the clear capitalist order of values, which
came about in the West over 100 to 150 years, has not yet taken its
place, Hungarian President Arpad Goncz said on Thursday.
The president was addressing the "Global Panel" international
conference in The Hague.
Goncz said the transformation of socialist economies that were
based on central planning into modern and free market economies is
proving to be a much more painful process than was originally
promised by certain economic experts. In spite of this, the Central
European countries at the forefront of development will soon cross
the critical threshold when, after creating stability, they can enter
the stage of actual modernization.
The European Union will have a decisive role in the success of
the latter. The European Union serves as an anchor and point of
orientation for the Central European countries, the president said.
"What is needed is not so much a fixed timetable for membership, but
the implementation of a pre-accession strategy with a convincing path
to full membership in the foreseeable future," Goncz said.
President Goncz also referred to the sacrifices accompanying
the transformation process that are manifest in, among other things,
the comprehensive reform of the social sphere.
In answer to questions, he specially stressed this problem,
saying that a recurring phenomena in the Central and Eastern European
countries today is that while prior to the change in political system
"people suffered from a lack of freedom, today many are worried about
their livelihoods and the lack of equality."
The president said this partly explains why the successors of
the former communist parties are again being voted back into power,
this time through free elections, in more and more countries.
However, this does not mean people want to bring back communism,
rather that they expect a secure livelihood and equality which does
not, at the same time, discredit capitalism.
A return to communism could not be possible also because even
today's socialist leaders are aware that the only road that can be
taken after the collapse of socialism is to come abreast of the
advanced West.
In conclusion, the president noted that if modernization and
transformation fail in Eastern Europe, this will lead to domestic
turmoil and to the rise of anti-Western and nationalistic emotions,
and the costs of these would ultimately be far higher for the West
than to assist modernization today.
Minister of Finance Offers to Resign - Reasons
Budapest, November 23 - As was reported earlier,Minister of
Finance Lajos Bokros announced his intention to resign, at the
session of the cabinet on Thursday.
Prime Minister Gyula Horn said he does not wish to accept the offer,
and the minister of finance continues to enjoy his confidence.
Bokros will represent the government until the end of the
interest coordination talks. As the prime minister did not accept his
resignation, Bokros said he would decide about withdrawing his offer
depending on how the government's scope of economic movement
develops.
Speaking on Hungarian Television's programme "After the Cabinet
Session", Bokros said he cannot lend his name to an economic policy
whose sole means is to increase inflation and taxes. He believes that
the two coalition parties have shown growing support for the
stabilization programme recently, and the prime minister has also
personally taken a stand for the package of stabilization measures.
However, the Constitutions Court has, for the fourth time,
found parts in the package that contradict the constitution, and this
is either a criticism of the work of the minister, or it implies that
the Court has overstepped its authority.
According to Bokros, his programme cannot be termed
unsuccessful, as of its three main pillars, monetary policy has been
realized, and incomes were restricted in a greater degree than
planned in the interest of stabilization. As regards the budgetary
measures, those that aimed at achieving budget savings through staff
cuts were also successful.
However, the means available to economic policy have become
limited, and as a consequence of the decisions handed down by the
Constitutional Court, inflation will rise, the deficit of the budget
will be higher, and taxes will also increase, the minister said.
Bokros was of the opinion that the government is just now
prepraring to "disarm itself", and to give up the means available to
it in the Interest Coordination Council, in the wake of the
Constitutional Court decisions.
As regards the government position submitted to the Council,
the minister said he cannot, in the interest of stabilization,
concede from the 2 per cent decline in real wages for next year, and
if no agreement is reached in this issue, then the government will
return to its original proposal, which stipulates a 4 per cent
decline in real wages.
Television Interview with Prime Minister
Budapest, November 23 - Hungarian Prime Minister Gyula Horn on
Thursday said he would not accept the resignation of Minister of
Finance Lajos Bokros, and added the minister continues to enjoy his
support.
In an interview with Hungarian Television following the
minister's announcement, the prime minister also took a firm stand
for realizing the government's financial and economic stabilization
programme, and for safeguarding social peace.
The prime minister said he agrees with Bokros in that the scope
of movement of the finance minister, and through this of the entire
government, is extremely limited.
At the same time, Horn said the government needs the knowledge,
skill and activity of Minister Bokros. "And I would add we need the
social sensitivity which he now represents in, for instance, the
Interest Coordination Council, in other words, he is struggling with
the task of trying to reach agreement in the Council and conclude the
price-wage agreement on Friday," Horn said.
As regards the ongoing talks in the Interest Coordination
Council about the price-wage agreement for next year, Horn said:
"The government has shown understanding for the just demands of
our social partners, we have gone to the limit of concessions. We
would like social peace and, through this, political stability. But I
would also like to state that the government is fully unified in the
position that financial and economic stabilization must be
implemented. The just and acceptable demands should be taken into
consideration, however, we cannot yield from this process, from this
tendency that was launched several months ago."
In answer to a question, whether the government must therefore
decide between social peace, and the upholding of this, or
stabilization, Horn said:
"I would link the two. When all is said, this is what our own
interests demand, and this is what our foreign partners also expect
from us. Stabilization is necessary, however, we should also take
into consideration the limits of society's endurance, and through
this the need to uphold political stability."
Answering a question about the 4th congress of the Hungarian
Socialist Party, to open on Friday, the prime minister, who is also
the chairman of the party, voiced the conviction that the decisive
majority of congress delegates will support the government's economic
stabilization programme, and its consistent implementation.
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