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From: bruner@ind.eunet.hu (Rick Bruner)
Subject: Hungary Report 2.20
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  ========================
  The Hungary Report

  Direct from Budapest, every week

  No. 1.20, August 14, 1995
  ========================


  The Hungary Report is supported in part by:

  MTI-Econews, a daily English-language financial news service. For
  online (fee-based) subscription information, contact
  <madarasz@mti-eco.hu> (not automated -- write a nice note).


  ========
  CONTENTS

    BREIFS

    No bombings near Hungary, Gov't says;
      Transport with Croatian transport normalized after halt
    Stones rock the house in pouring rain; less profit than hoped
    Gov't toasts July economic results
    Tourist figures bring mostly sunny news for economy
    Ikarus is bankrupt, says new president
    22 Sri Lankan survivers head home
    Prime Minster Horn agrees to monthly TV press conferences
    Budapest air is better than ever
    Hungary still beating out Czech Rep on investments
    Sewage system stinking awful
    New map shows Budapest highlights

    NUMBERS CRUNCHED

    Overall hotel occuapancy for June
    Four and five-star hotel occupancy
    Minimum living income for family of four

    PUBLIC SERVICE ANNOUNCEMENT

    HELP: Missing Person in Budapest

    FEATURE STORY

    Spaced out defense minister


  ======
  BRIEFS

  Copyright (c) 1995, Rick E. Bruner


  ------------
  GENERAL NEWS

  No bombings near Hungary, Gov't says;
    Transport with Croatian transport normalized after halt

  Hungarian officials disputed a UN report that Bosnian Serb jets had
  bombed the Croatian city of Virovitica, which is 15 kilometers from
  Hungary's southern border, a week ago on Monday. After a UN official
  in Zagreb claimed Virovitica to be among five cities bombed that
  weekend by Serbs in retaliation for Croatian seizures in the Krajina,
  Hungarian Border Guard officials said the UN was mistaken, Reuters
  reported. "There was an air raid alarm at about 9 am (0700 GMT) in
  Virovitica, but there were no Serb aircraft anywhere nearby and there
  certainly weren't any bombings," Border Guard spokesman Lieutenant
  Colonel Jozsef Komuves told Reuters. Neither Reuters nor the other
  media consulted for the Hungary Report followed up on the incident
  later in the week.

  Also, some 5,000 tons of wheat in 250 train cars stalled at the
  Croatian border earlier last week were permitted to continue on for
  the Adriatic port of Rijeka by Thursday at midnight. The Croatian
  Railways gave the stoppage orders to MAV (Hungarian State Railways)
  on Wednesday, due to a "traffic overload" in Croatia. Rail service
  resumed after a previously scheduled meeting among the Hungarian,
  Croatian and Slovenian rail authorities, where the three worked out
  issues of technical coordination, according to Econews. Rijeka serves
  as land-locked Hungary's main sea port.


  Stones rock the house in pouring rain; less profit than hoped

  Few concert-goes seemed bothered by heavy rains at last Tuesday's
  outdoor Nepstadion show, where the legendary Rolling Stones dripped
  with professionalism, getting soaked on-stage themselves while
  playing more than 2 hours of classics and recent hits. Nearing the
  end of more than a year on a world-wide Voodoo Lounge tour, the
  Stones put on perhaps the most extravagant rock show in Hungarian
  history, with a massive, space-age stage equipped with dozens of
  flame throwers, hundreds of lights and a fireworks finale, an
  enormous video screen with a half dozen cameramen, and the performers
  themselves going all out. (Mick garbled a few attempts at Hungarian,
  "Koszi szepen" -- thanks a lot -- being about the only thing
  intelligible.) The crowd certainly got its money's worth, despite the
  relatively high price of tickets, starting at HUF 4,000 ($32).
  Organizers aren't sure they got theirs, though. While earlier press
  reports claimed more than 60,000 advanced ticket sales, the cash
  total came in at around HUF 220 million (US$ 1.7m), or enough for
  about 50-55,000 tickets sold. The Austro-Hungarian organizing company
  said net profits amounted to around HUF 120 million, about half what
  they hoped, 97.5% of which must be paid to the band, according to the
  contract.


  --------------------
  BUSINESS & ECONOMICS

  Gov't toasts July economic results

  The Finance Ministry last week declared that the economic austerity
  measures launched in March to urgently redress Hungary's debt crisis
  are beginning to show significant results. Growth in the budget
  deficit slowed dramatically in July. The budget deficit by the end of
  last month reached HUF 194.7 billion (US$ 1.5 bn), only HUF 3 billion
  up from the month before, the slowest monthly budget deficit growth
  in years. (By the end of this first quarter, the deficit had already
  reached HUF 146 billion.) The figure is still well above the
  supplementary budget's projected year-end deficit of HUF 156 billion,
  but government economic officials are confident they can keep close
  to their 1995 deficit target of 3-4% of GDP through additional
  revenues.

  The improved situation last month owes primarily to higher than
  expected VAT and customs duty revenues, plus recent government social
  spending cuts. Finance Ministry deputy state secretary Csaba Laszlo
  told the press last Monday the government expects significant revenue
  from privatization later this year, at least half of the originally
  targeted HUF 150 billion for 1995. Any shortfall could be made up on
  the domestic money market, another Finance Ministry official said.
  Later in the week, Privatization Minister Tamas Suchman declared it
  was still perfectly feasible to get the whole HUF 150 billion
  projected privatization revenue by the year's end, with tens of
  billions of forints worth of shares in the Hungarian Oil and Gas
  Company (MOL Rt.), the Hungarian Electric Works (MVM Rt.) and a
  further state in the Hungarian Telecommunications Company (Matav) due
  for sale imminently. Speaking to Hungarian Television, Suchman said
  the only thing threatening this goal was Finance Ministry
  bureaucracy.


  Tourist figures bring mostly sunny news for economy

  More than 17 million visitors arrived in Hungary in the first six
  months of this year, an eight percent increase on the same period
  last year, according to the Central Statistics Office. Tourist
  spending in first five months, meanwhile totaled US$ 506.9 million,
  22% up on the same period last year, the National Bank of Hungary
  announced. The tourism deficit -- the difference between Hungarian
  vacation spending abroad versus foreign tourist income -- dropped
  dramatically in May, from US$ 114.5 million at the end of April to
  US$ 40.8 million a month later, Econews reports. The government's
  March economic austerity plan had, no doubt, a restrictive effect on
  families' summer vacation plans. Balaton tourism income,
  nevertheless, saw a 12% decline over the first six months compared to
  the same period last year.


  Ikarus is bankrupt, says new president

  The newly appointed president of the Ikarus bus company, once the
  world's largest, is in "hidden bankruptcy," with its debts exceeding
  the value of the company and costs higher than revenues. The new
  president, Adam Angyal, announced layoffs of 500 and said the
  Budapest plant will suspend operation, while the one in
  Szekesfehervar continues alone, pending any large new orders, Econews
  reports. The government owns 60% of Ikarus, while its privatization
  plans have dragged on for years.


  -----------
  SHORT TAKES

  THE 22 SURVIVING SRI LANKANS of last month's person smuggling
  disaster [See Hungary Report 1.17], where 18 of their countrymen were
  found dead of suffocation in a Bulgarian truck near Gyor, were sent
  back home on Tuesday. Some had spent more than two years fleeing
  their native country to "The West," on routes crossing Russia,
  Bulgaria and Romania before meeting disaster less than 20 kilometers
  from Austria.

  PRIME MINISTER HORN AGREED TO HOLD MONTHLY TV PRESS CONFERENCES
  starting in October. The idea was first put forward by the National
  Alliance of Hungarian Journalists (MUOSZ) last year. The Hungarian
  State Television (MTV) says it still has to think about the proposal.

  BUDAPEST AIR IS CLEANER THAN EVER, according to Ministry of
  Environment officials, who say levels in most types of pollutants
  have been steadily declining for years, Budapest Sun reports. Decline
  in heavy industry rather than decisive action is the biggest
  contributor to the positive change.

  HUNGARY IS STILL A FAVORITE FOR INVESTORS, the economic daily
  Vilaggazdasag reports. Some $416 million of working foreign capital
  entered Hungary through this May, compared to $402.5 million through
  June for the Czech Republic. The UN European Economic Committee
  reports that between 1990 and July 1, 1994, $8.3 billion of working
  capital came to Hungary, $2.7 billion to Poland, $2.5 billion to the
  Czech Republic, and $0.5 billion to Slovakia, according to Reuters.

  HUNGARY'S SEWAGE SYSTEM need at least HUF 660 billion (US$ 5.3 bn)
  invested to bring it up to European Union standards, according to
  Econews. Only 42.3% of the country's population is connected to the
  sewage system, with most of the have-nots located in smaller
  countryside towns and villages.


  ----------------
  NUMBERS CRUNCHED

  * Overall hotel occupancy rate in June, nearly the same as last year
    (Central Statistical Office): 48%

  * June occupancy rate at four and five-star hotels (CSO): 70%

  * Minimum net monthly expenses for a family of four (the
    Subsistence-level Foundation, Lethataron Alapitvany):
    HUF 73,981 (US$ 592)



  -------------
  EXCHANGE RATE

  August 10, 1995 (National Bank of Hungary)

  US dollar - 127.21 (buying), 129.63 (selling)
  Deutschemark - 90.32 (buying), 92.10 (selling)


  --------------
  WACKY AS USUAL

  New Budapest map highlights popular destinations

  Eager to contribute to Hungary's image as a tourist haven, the
  Capital Sewage Works of Budapest recently published an invaluable map
  for visitors on the go, demarcating each of the capital's proud
  network of 221 public toilets. About a quarter of the 200,000 daily
  users of the system during summer months are foreigners, the Budapest
  Business Journal reports quoting an official from the company's
  Public Rest Room Department, so the new guides are handily printed in
  English, German, French and Russian, as well as Hungarian.


  ===========================
  PUBLIC SERVICE ANNOUNCEMENT


          *** PLEASE HELP: MISSING PERSON IN BUDAPEST ***

  A Hungary Report reader wrote me last week with a serious call for
  help in locating a friend who disappeared in Budapest recently. What
  follows is Simon Birrell's message, with contact information below:

  An Englishman Chris Stangroom, about six foot high, 29 years old and
  with A COMPLETELY BALD HEAD went missing from his hotel room in
  Budapest somewhere around 26th July. He was on holiday in Budapest
  and had been talking about going to Romania or Croatia for a few
  days, but it has been discovered recently that all his personal
  belongings are still in his hotel room.

  Interpol has been informed, but maybe somebody in the Internet or
  Fidonet community can help us with clues. You may have met Chris, he
  speaks only English (and a bit of German) but is very friendly. He
  looks distinctive because he is young but completely bald (it is
  possible that he has very short hair by now).

  If you met him, or even think you saw him in the streets please send
  us a message; we need to know WHEN he disappeared. Please send e-mail
  to one of these addresses:

    rvirtual@ran.es
    simon@cursci.co.uk

  I don't receive any Hungarian newsgroups so please send responses
  directly as e-mail, don't just REPLY to a posting.

  If you receive this message, please show it to everyone you can and
  re-post it to other forums or groups that people living in Budapest
  might read. His family and friends are extremely worried.

  Thank you for your help.

  Simon Birrell
  rvirtual@ran.es


  =============
  FEATURE STORY

  Defense Minister spaced out?

  By Rick E. Bruner
  Copyright (c) 1995

  Defense Minister Gyorgy Keleti is a lot more concerned about the
  security threat of a widening Balkan War at Hungary's southern border
  than he is about an invasion of little green men from outer-space.
  But then, he doesn't entirely discount the latter, either.

  Yes, this small Central European nation's highest military official
  is an out-of-the-closet, long-time UFO enthusiast. Before being
  appointed to the cabinet of the new Socialist-led government after
  last year's election, Keleti rarely missed any of the country's
  frequent extra-terrestrial conferences, and he wrote regularly for
  the popular UFO Magazine, as their official Defense Ministry
  correspondent.

  "I believe that in this huge universe, where we live on a tiny,
  little planet, there could be other planets where there are some
  technically or intellectually developed beings," Keleti told the
  Hungary Report, only too happy to speak about the subject, while the
  ministry's press chief rolled his eyes and tapped his watch. "And if
  they are more developed than us, they might be interested in what's
  around them.... And if so, they may appear [on Earth]," he said.

  By Hungarian standards, Keleti is no wacko. The populace seems
  anything but alarmed by the thought that their military chief might
  launch a war of the worlds or stage a government coup allied with
  Martians (as opposed to yester-year's Soviets). Rather, Keleti, with
  a reputation for being a straight-forward and reliable politician,
  consistently tops public opinion polls for popularity among the
  government's cabinet members, several notches above Prime Minister
  Gyula Horn, for example.

  While some west European tabloids have made light of the fact that
  the man leading Hungary's efforts to join NATO by day is spotting
  flying saucers by night, Hungarian newspapers have never found the
  point newsworthy. Somehow, the famous Hungarian wit fails to register
  any irony in the situation.

  "So he believes in UFOs. What's the big deal?" said Andras Varga, a
  student at Budapest Technical University. "People are entitled to an
  opinion. We should worry more about our prime minister's drinking."

  Not that UFO-spotting is aberrant behavior in Hungary, either. UFO
  Magazine, Keleti's old freelance employer back when he was Defense
  Ministry press officer, ranks among Hungary's biggest circulation
  monthly magazines. The country is, after all, small and flat with
  lots of places to land, inhabited by a people of mysterious origins
  and a particularly bizarre language -- who knows, maybe Martians feel
  a natural affinity for the place.

  UFO Magazine's editor, Sandor Pusztay, explains, "Hungarians are more
  open to these ideas. We have so many other troubles, people turn to
  things kinds of things to take their minds off their day-to-day
  cares."

  Indeed, with crisis-ridden neighbors like ex-Yugoslavia and the
  former Soviet Union, unemployment at 11%, a fast-growing Ukrainian
  mafia and a set of tough new economic austerity measures, Mars might
  seem like a pretty good alternative to some Hungarians right now,
  immigration issues notwithstanding.

  And then there are, of course, some things that are plain difficult
  to explain away. The night of January 18, 1991, for instance. Shortly
  after 11 pm, thousands of Hungarians claim to have seen a
  150-foot-long, silent, brightly lit object hovering around the
  country, searching perhaps for the ultimate goulash recipe.

  "This phenomenon has simply never been explained," Keleti said,
  eyebrows raised. He personally wasn't watching the sky that night,
  but he later wrote up a report for the magazine quoting several
  military sources who had been, including pilots, air-traffic
  controllers and meteorologists. "I didn't have any reason to doubt my
  military colleagues' words. Why would they have lied? ... They
  weren't all drunk," he said.

  Then, as now, Keleti has benefited in his hobby from inside
  information within the military organization. "At that time as a
  working military officer, certain channels were open to me that
  weren't open to other people," he said of his magazine report of the
  mysterious incident. The Hungarian government is not, however,
  engaged in any conspiracy to conceal other-worldly information from
  the public, hiding captured space vessels in underground bunkers and
  the like, he assured the Globe.

  In the end, it's simply a personal interest that doesn't arise often
  in the day-to-day matters of a defense minister in one of the world's
  more politically unstable regions. "It doesn't mean that I want to
  prepare the army against a UFO intervention," he said.

  "I'm not mentally ill, or whatever." Something not all politicians
  could say so convincingly.


  ===================
  NO PARLIAMENT WATCH

  Tibor Vidos is on vacation for a couple weeks. His column will
  re-apper in early September.


  ===========
  FINAL BLURB

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                                   * * *

  Back issues of The Hungary Report are available on the World-Wide Web
     http://www.yak.net/hungary-report/

  and via FTP
     host: ftp.yak.net
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                                   * * *

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                                   * * *

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  Feedback is welcome.

  Rick E. Bruner <bruner@ind.eunet.hu>
  John Nadler <jnadler@magnet.hu>
  Tibor Vidos <vidos@ind.eunet.hu> or <CompuServe: 76702,2227>

                                   * * *

  For its briefs, The Hungary Report regularly consults the news sources
  listed below -- for information about subsriptions, contact them by
  email: The Budapest Business Journal <100263.213@compuserve.com> (and
  tell them what dwads they are for making us pay for issues at the
  newsstand);  Budapest Sun <100275.456@compuserve.com>; Budapest Week
  and Hungary Around the Clock (same email address)
  <100324.141@compuserve.com>, and Central Europe Today (free online)
  <cet-info@eunet.cz>.

  ================
  END TRANSMISSION


