From hungary-report-owner Mon Oct 30 05:44:16 1995 Received: from localhost (daemon@localhost) (fnord) by nando.yak.net (8.6.5/8.6.5) id DAA21359; Mon, 30 Oct 1995 03:57:44 -0800 Received: from localhost (daemon@localhost) (fnord) by nando.yak.net (8.6.5/8.6.5) id DAA21350; Mon, 30 Oct 1995 03:57:16 -0800 Received: from steve@isys.hu () via =-=-=-=-=-= for hungary-report@hungary.yak.net (21348) Received: from kingzog.isys.hu (KingZog.iSYS.hu [194.24.160.4]) (fnord) by nando (8.6.5/8.6.5) with ESMTP id DAA21327 for ; Mon, 30 Oct 1995 03:56:10 -0800 Received: from [194.24.160.22] (bubba.iSYS.hu [194.24.160.22]) by kingzog.isys.hu (8.7.Beta.11/8.7.Beta.11) with SMTP id MAA10435 for ; Mon, 30 Oct 1995 12:55:38 +0100 (MET) X-Sender: steve@mail.isys.hu Message-Id: Mime-Version: 1.0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Date: Mon, 30 Oct 1995 12:58:01 +0100 To: hungary-report@hungary.yak.net From: steve@isys.hu (Steven Carlson) Subject: Hungary Report 1.25 Sender: owner-hungary-report@hungary.yak.net Precedence: bulk Reply-To: hungary-report@hungary.yak.net =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D The Hungary Report Direct from Budapest, every week Also available on the World Wide Web (http://www.isys.hu/hrep/) No. 1.25 October 30, 1995 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D SPONSORED BY: iSYS Kft., providing full Internet solutions for companies and individuals in Hungary. For further information, send e-mail to , view our World Wide Web home page (http://www.isys.hu) or call (+36-1) 266-6090. =3D=3D=3D=3D=3D=3D=3D=3D CONTENTS BRIEFS '56 demos spark calls to ban extreme right wing parties Slovak-Hungarian MPs discuss minority rights General Electric positioned to buy Budapest Bank Paks atomic reactor goes on strike Socialist Party approaches annual conference Workers Party could force NATO referendum Police scores success against organized crime Hungary prepares for OECD membership Media bill on the horizon Deal for four new satellite channels coming to a close Mobile phones to be tapped Magyars squeaky clean by Euro standards NUMBERS CRUNCHED Companies owned by the Socialist Party Value of retail goods sold in Hungary Forged banknotes found by postal workers Numbers of unemployed and employed in the third quarter FEATURE STORY Discarded phone cards bring big bucks to collectors PARLIAMENT WATCH Oct. 23 a day to measure by MAGYAR NET WATCH Hungary, we're on the Web! =3D=3D=3D=3D=3D=3D BRIEFS By Kriszta Fenyo and Jennifer C. Brown Copyright (c) 1995 ------------ GENERAL NEWS '56 demos spark off calls to ban extreme right wing parties October 23rd, the day of the 1956 uprising, was again heavily politicised this year, with much talk about today's parties and politics and less mention of the historical event itself. At the official ceremonies foreign minister Laszlo Kovacs gave a calm, correct and balanced speech (much like the man himself), emphasising the moment of national unity on the day 39 years ago. Other speakers, such as Imre Mecs, who had been imprisoned and sentenced to death after the revolution also stressed the unique solidarity and unity in October 1956. Gyula Horn, with his infamous "pufajkas" (puffed jackets worn by secret police in 1956) past, refrained from giving any speech and merely took part in the wreath laying ceremonies. The day before the anniversary Istvan Csurka and his MIEP ("Hungarian Truth and Justice Party) staged a what they called an "anti-government demonstration" (is any demonstration ever pro-government?). Csurka claimed that there were over 100,000 people, but according to Reuters, the BBC and observers present (such as myself) the crowd did not exceed 20,000. (People loosely filled only half of Szabads=E1g square). The speech of the ominous Csurka tried hard to shake up the people and induce them with some historic mission but was something of a lukewarm let-down. He didn't even mention of the sins of the cosmopolitans. He merely blamed certain "foreign interests", which have resulted in the tragic state of Hungary. After cataloguing the ruins of the country and painting images such as "we are looking down a deep dark abyss of the doom of this country", he called on the people to engage in a "civil resistance movement" and go on a general strike. He also promised more demos, solidarity marches "and more..." in the future but strictly within constitutional limits. The MIEP demo crowd included some 300-strong neo-fascist skinheads of the Hungarist Party led by Albert Szabo, whose trial for racial incitement will begin next week. Although after his demonstration Csurka called on everyone to leave, the skinheads continued to march to the TV and radio building, and the following day marched through the city shouting slogans and burning a dummy of Bokros. Csurka later repeatedly distanced himself from Szabo claiming that his party had nothing to do with the Hungarist party and other extremists. Not only was Csurka busy distancing himself from right wing extremism but Smallholders Party vice-president and speaker of parliament Agnes Maczo did so as well. Following the '56 ceremonies she urged a total ban of right wing extremist parties saying that they are "anti-Hungarian" and cause a bad reputation for Hungary. She said that they should even be banned from the country, especially "imported characters" (a reference to the fact that Albert Szabo came back to Hungary from Australia). She blamed the Interior Minister and the police for having permitted Szabo's demonstrations. Interior minister Gabor Kunzce actually agreed with Maczo (a rare occasion), saying that the problem is that there are legal gaps and uncertainties in legislation on incitement, containing no clear indication when exactly the police can act. Kuncze told TV news that amendments to the law are already on the table and will go before parliament in the near future. Slovak-Hungarian talks on minority rights The human rights and minority committees of the Slovak and Hungarian parliaments held a two-day meeting over the weekend in Komarno-Revkomarom to help bridge their differences in the "interpretation" of minority rights. There are about 600,000 ethnic Hungarians living in Slovakia, the second largest Hungarian minority after Romania. Over the past few years Hungarian-Slovak relations have often been strained over disputes of minority rights and the terms of the basic treaty,that was signed by Meciar and Horn earlier this year but its interpretation still causes disagreements. The ratification of the treaty was scheduled to go before the Slovak parliament in November but is now postponed to December. The two-day meeting this weekend aimed to "clarify" some of the most sensitive issues such as the term "autonomy". The text of the basic treaty includes the infamous Recommendation 1201 of the European Council, which refers to "collective minority rights". In the Hungarian interpretation this means autonomy, but what exactly is meant by autonomy is not clear. As one Slovak representative told the Hungarian radio the Slovaks "see red" when hear the word and consider autonomy an attempt to form a state and become independent. "Perhaps the Hungarians have a different interpretation", she added. The meeting took place amidst growing controversy over the latest Slovak language law bill ready to go before parliament. Both representatives of the ethnic Hungarians in Slovakia and officials at the Office of Hungarians Beyond the Borders in Budapest have expressed concern over the bill. A delegation of ethnic Hungarian parties in Slovakia visited Horn last week voicing their concern over the bill, which, they say, severely endangers the use of the Hungarian language. They also said that the present bill contradicts both the basic treaty and the Slovak constitution itself. Horn pledged that he would personally talk to Meciar about the language law bill if it differs from what they had agreed on at their latest summit. He also said that he would continue to call attention of international forums to the problems of ethnic Hungarians in Slovakia. -------------------- BUSINESS & ECONOMICS General Electric positioned to purchase Budapest Bank The financial division of General Electric Co. G.E. Capital Corp. and the European Bank for Reconstruction and Development (EBRD) have signed a memorandum of understanding to purchase Budapest Bank. If the deal is approved, G.E. Capital Corp. will purchase over 50% of the government's 89.8% stake as a part of G.E. Corp's move into financial services. The Budapest Business Journal reports that the sale of Hungary's sixth largest bank would be a victory for Hungarian government officials, who lost credibility abroad after Credit Suisse withdrew its interest last March. In another botched sale, ING Bank gave up its opportunity to conduct due diligence in April following its acquisition of Barings Bank. Due to the blunders of the past year, the parties involved in the deal have exceeded particular caution in revealing the details of the memorandum. The Budapest Business Journal reports that the government and the bank are now anxious to close a deal but before undertaking further negotiations for the privatization of Budapest Bank GE Capital must conduct a lengthy process of due diligence, expected to take several months. If Budapest Bank does not close the deal by Dec. 15, it will also have to pay back a HUF 12 billion loan granted by the state last year to prime the bank's balance sheet for privatization. ----------- SHORT TAKES THE PAKS ATOMIC REACTOR WORKERS WILL GO ON STRIKE Monday morning for two hours to press for a 25% wage increase. The stoppage will cause a 6% decrease in the reactor's production and is estimated to cost HUF 1.5 million. Public consumption will not be affected, and the reactor will remain safe, the management said. Trade union representatives told the radio that they had waited long enough since August for a settlement of the dispute and decided on the stoppage in order "to strike the iron while it's hot". Other electricity trade unions also considering stoppages, and warned that strikes will spread like "bushfires" if the government does not reach an nationwide wage settlement by 1996. Meanwhile, some 100,000 workers in the gas, oil, iron and chemical industries could also go on strike later in the year if the government does not amend its measure to limit wage rises to 16%. Trade unions argue that their production was more than the amount of their wage increase, while inflation has been 10% higher than expected. SPECULATIONS ABOUND OVER SOCIALIST PARTY CHANGES with just three weeks away from this year's annual party conference. Rumours spread and "sources close the party" whisper that discontent with Horn is growing every day. At a meeting last weekend the "electoral board" of the party voted to have next year's party conference in the spring instead of the autumn with the special agenda to decide on personnel changes. This comes amid open criticism of Horn's prime ministerial abilities, and some committee members argue that the prime minister post should be split from that of the party head. While only one third of the party members are said to be in favour of such a split, many of the committee members are thought to advocate it and some even urge that this year's party conference should already deal with the personnel questions. A REFERENDUM ON HUNGARY'S NATO MEMBERSHIP could take place by next February if more than 100,000 signatures are found valid out of the 180,000 collected by the Worker's Party. According to the current referendum law, parliament has to give the go-ahead in the case of more than 100,000 valid signatures. However, some MPs are arguing that a referendum cannot be held about a distant future event, and suggest that an amendment to the law is necessary. Prime minister Gyula Horn said that a referendum now would be very expensive, and called the move "mistaken". He also stressed that once the time does come for Hungary to decide whether to join Nato or not, there will be a referendum anyway. POLICE BOAST OF SUCCESS IN FIGHT AGAINST ORGANISED CRIME and the black economy this week. A special 20-strong investigative committee in co-ordination with the police announced that they had so far this year uncovered more than 39,000 cases of corruption, money laundering and smuggling. Meanwhile, last week the police's organised crime unit arrested a 14-member African drug-smuggling centre in Budapest after two years of investigation in co-operation with Interpol. During the two years 400 kg (880 lbs) of cocaine worth US$ 15 million were smuggled through Hungary from South America and the Far East. HUNGARY HAS FALLEN SLIGHTLY BEHIND THE CZECH REPUBLIC in the race to join the Paris-based Organization for Economic Cooperation and Development (OECD). The Czech Republic is the first country in the former Soviet bloc to join the organization, bringing it one step closer toward membership in the European Union. Hungary is expected be admitted to the OECD next May once Parliament passes a bill on foreign exchange. Hungary is also expected to pass a budget that includes a deficit of less than 4% of the gross domestic product. The Budapest Sun reports that the Czech Republic has already met those preconditions and has been commended by the OECD for its swift privatization process, low levels of inflation and a stabile currency. The signing of an International Monetary Fund standby loan and the further stabilization of the economy could also boost Hungary's chance for membership. THE GOVERNMENT'S MEDIA COMMITTEE HAS FINALLY COMPLETED a revised version of the long-awaited media bill. The government is scheduled to view the bill in November and a decision by Parliament could come before the end of the year. Under the latest version of the media bill Hungarian Television (MTV), Hungarian Radio and satellite channel Duna TV will fall under the ownership of three public foundations. MTV 1 will remain a public service channel while a new second channel, Danubius Radio and the unused third TV frequency will be offered to investors. HUNGARIAN-ISRAELI COMPANY MAGYARSAT AND THE HUNGARIAN GOVERNMENT are expected to sign an agreement for the permanent rental of four channels on the new Ceres satellite. Some thirteen banks and investors have signaled their interest in funding the satellite project, estimated to cost $140 million to $160 million. Negotiations with investors cannot begin until MagyarSat signs the contract with the government. The two parties already agreed that government will pay an annual leasing fee of $2.7 million per channel, but other details of the contract are still being ironed out. MagyarSat, with primary capital of HUF 50 million, is jointly held by Antenna Hungaria and Isreal Aircraft Industries. HUNGARY'S PARLIAMENT IS CONSIDERING NATIONAL SECURITY LEGISLATION that would allow secret service authorities to tap conversations taking place over cellular phones. Rigging phones for tapping, however, would cost the industry over HUF 1 billion. In Germany, cellular phone companies objected to a similar law passed by the German government last spring, arguing that the industry could not absorb the nearly DM 40 million in costs. ------------------ NUMBERS CRUNCHED * Number of companies owned by the Socialist Party (Magyar Hirlap): 30 * Total value of goods sold by retailers in the first eight months of the year (Econews): HUF 1.5 trillion * Number of forged banknotes found by post office workers in the first nine and a half months of the year (Magyar Hirlap) : 400. * Number of people unemployed in the third quarter of 1995 (Econews): 415,000. * Number of people employed in the third quarter of 1995 (Econews): 3,964,000. ------------- EXCHANGE RATE October 26, 1995 (National Bank of Hungary): US dollar - 132.37 (buying), 135.05 (selling) Deutschemark - 95.10 (buying), 96.98 (selling) --------------- WACKY AS USUAL Hungarians are the cleanest Europeans At least according to an international poll by the "Inra" network, Hungarians are the cleanest Europeans. The polls found that Hungarians bathe the most out of all European nations (we are a nation of thermal baths, after all). Our Ukrainian neighbours along with the Russians however are the rarest bathers in the poll (and not the French). Other, none the less intriguing results of the poll include that the Danes have the most sex (and not the Italians), the Dutch love siestas best (and not the Spaniards), and the Germans raise their voices the least (?). =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D FEATURE STORY Discarded phone cards mean big business for collectors By Michael J. Jordan Copyright (c) 1995 Picking up on a little-known Western trend, Budapest's phone-card collectors descend daily on the Nyugati and Keleti train stations like a swarm of pigeons hunting for crumbs. Some of those crumbs could be worth as much as 250,000 forints. "I'm 24 and I have a profession, but every time I walk by a telephone machine I look to see if there's a card in there," confessed a man clad in suit-and-tie who would only identify himself as "J.S." "At work my colleagues laugh at me, but they bring me their cards." Since the Hungarian government introduced card-only telephones in 1991, 74 different phone cards have appeared on the market. And, adopting a trend begun in Western Europe roughly eight years ago, Hungarians are gobbling up discarded or mint-condition cards for personal collections. Limited-edition cards command the highest value. Matav, the Hungarian telephone company, usually prints 100,000 to 300,000 of each card. For some collectors, the hobby can become big business. When OTP Bank backed out of sponsoring the Hungarian Olympic squad in 1992, a collector's-item run of 30,000 cards was halted after only 200. A used version of this rarity fetches about 45,000 forints ($340); a brand-new one, if such a card exists, is listed in card catalogs at nearly 250,000. "This is like the thrill of the hunt," said another collector, a 56-year-old man whose quest leads him to Nyugati four nights a week. "You can feel there are (collectors) who look at these telephones as slot machines." Most of the 2,000 or so card-carriers are teen-aged boys, although 2,000-odd ranks cross age- and gender-lines. They often tote gym bags or briefcases to hold leather- or plastic-bound portfolios. The "tradable" cards are usually rubber-banded, so they can be easily fished from a pants pocket in the event of a spontaneous transaction. Hard-core collectors, who are said to number 150, often congregate at Nyugati, the Nyugati McDonald's, at a collectors' clubhouse near Oktogon, or at the Pet=F4fi Csarnok on weekends. Catalogs are employed only as a pricing guide, and cards are worth whatever the collectors are willing to trade or pay for them. Card auctions are held regularly at Pet=F4fi Csarnok with cash bidding on pricier cards. For some, this pursuit has turned into an obsession. Take Laci Szab=F3. Szab=F3, 15, is considered the grand master of collecting. Since he started keeping and swapping phone-cards nearly two years ago, the shy, bespectacled kid has gathered more than 4,000 cards, including a bunch of used OTP cards and foreign cards from New Zealand to South Africa. Being on top may have its price for Szab=F3, who is never without his cellular phone. Unlike most kids his age, he cut short his education after primary school. Instead, he said he spends "no more than 12 hours a day" card-hunting or sorting and cleaning his collection (cleanliness enhances value). "That's not too much time, is it?" he said, dead-pan. This full-time job puts a roll of bills in his pocket and keeps him well-fed on McDonald's burgers and fries. "I don't like to study," Szab=F3 said. "Card-collecting helped me make the decision not to go to school." His parents, he said, are understandably not pleased with that decision. Or of Laci's view of the future: "For now," he said, "cards are enough." With big business has come greed, jealousy and crime. Szab=F3 declined to estimate the value of his collection, as did others who preferred anonymity. Several declined to be named for fear their prized possessions would be pilfered. They speak in hushed tones about "the Hyena," a serious collector believed to have stolen cards from some competitors. "It's just a matter of time" before burglaries become more commonplace, said the 56-year-old hobbyist at Nyugati. But most choose to emphasize the hobby's positive side. Said one 24-year-old professional, "It's better to have a hobby than to throw away your money at the casino or on drugs." * * * Michael J Jordan is a freelance journalist in Budapest, writing for Reuters and other news organizations. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D PARLIAMENT WATCH Oct. 23 a day to measure by By Tibor Vidos Copyright (c) 1995 Celebrations on Oct. 23, the anniversary of the 1956 uprising and the 1989 proclamation of the Hungarian Republic (as opposed to the Hungarian People's Republic) are an important indicator of the political atmosphere in Hungary. The government is celebrating in the "regular" way: the national flag will be hoisted at Kossuth ter, wreath-laying ceremonies will take place at the graves of the victims of communist oppression and Soviet military intervention, today's and yesterday's heroes will be honored with decorations at Parliament, where a public ceremony will be held . This ritual has been worked out over the past five years and has attracted over the years less and less public attention. Unlike during communist times, when Oct. 23 was one of the two days the government feared most, (the other was March 15, the anniversary of the 1848 Revolution) the commemoration has become official and with it - let's not hide it - boring and uninteresting. This year it may be different. Right wing political groups like Istvan Csurka's Hungarian Truth and Life Party were at press time planning to organize a massive demonstration on Oct. 22 in order "to tell the Free Democrat led Horn-Kuncze government that its time is over..." During the parliamentary elections in 1994 extreme right parties did not get elected to Parliament, though in the following municipal elections, candidates supported by a local coalition of conservative parties and the Csurka Party won several mayoral races. During and since the democratic transition the average Hungarian has behaved generally in a very calm and predictable manner on the Oct. 23 holiday observances. A blockade of the Budapest bridges by cab drivers in 1990 protesting an unexpected petrol price increase may have been the only significant spontaneous protest action so far. There were demonstrations and strikes but none of them came even close to endangering law and order. This is the first time that a public meeting was organized to challenge the authority of the democratically-elected government. This fact and the government's bad conscience about its performance is well reflected in the way it reacted to the news of the protest action. Prime Minister Gyula Horn spoke in Parliament about "irresponsibility," statements were issued denying the army's planned involvement in securing the demonstration and that a special police alert would be introduced for the weekend of Oct. 21-22. The leaflets distributed in large numbers by the organizers call for civil disobedience, "details of which will be announced and accepted at the demonstration." I'm convinced that there will be a big crowd at the demonstration and that extremely rude things will be said about the government and its members. That is the right of every citizen of a democratic society. But in calling for civil disobedience against a five-year-old democracy, I think the organizers have gone too far. Fortunately for the other side, they have miscalculated their chances. In a country where an estimated 30% of the GDP is produced by the black and gray economies more civil disobedience simply makes no difference. * * * Tibor Vidos is a lobbyist and political consultant in charge of the Budapest office of GJW Government Relations. or A version of this article appeared in the Budapest Business Journal. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D MAGYAR NET WATCH Hungary, we're on the Web! By Attila Beno Copyright (c) 1995 This week Hungary Report launches a new column about Hungary's presence on the Internet. While most of the columns will focus on the World Wide Web, we will also mention some of the more interesting FTP and Gopher sites. Since this is the first column, we'll start with a short introduction. The best way to find out more about someone or something is to have a look at their homepage. So if you want to find out more about me, check out: http://www.isys.hu/~attila (This is only in Hungarian at the moment.) If you're interested in Hungary, you can find basic facts about the country in the CIA World Factbook, or read Hungary's homepage (Yes, even a country can have a homepage!) located at: http://www.fsz.bme.hu/hungary/ It is said that Hungary has the best homepage in the world. To find out if it is true or not, check out: http://www.fsz.bme.hu/hungary/intro.html If you're more interested in facts, you can review Hungary's more important historical dates at: http://www.fsz.bme.hu/hungary/history.html You may have also heard that the Hungarian National Anthem is one of the saddest anthems in the world. To find out why, read the lyrics at: http://www.fsz.bme.hu/hungary/anthem.html You can also listen to the Anthem at this site. If you were not already familiar with Hungary, this should give you a general overview. Next time, you can read about a more specific topic. Until then, you may be interested to know that with more and more people interested in Hungary, the Hungarian corner of the Internet is growing rapidly day after day, both here and abroad. We'll talk more about this next week. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D FINAL BLURB The Hungary Report is free to readers. To subscribe, send an email message to the following Internet address: hungary-report-request@hungary.yak.net containing (in the body of the message, not in the headers) the single word subscribe Conversely, to stop receiving Hungary Report, simply send to the same address (in the body of the message) the single word unsubscribe Please note: all mailing lists suffer from frequent "error" addresses. If we have problems with sending to your address more than one week in a row, we will remove you from the list. If you haven't received the report for more than one week, feel free to enquire directly to Rick Bruner (but please wait for at least a week, as we're also just famously late in getting the thing out sometimes :) * * * Back issues of The Hungary Report are available on the World-Wide Web http://www.isys.hu/hrep/ and via FTP ftp://ftp.isys.hu/pub/hrep/ * * * The entire contents of The Hungary Report is copyrighted by the authors. Permission is granted for not-for-profit, electronic redistribution and storage of the material. If readers redistribute any part of The Hungary Report by itself, PLEASE RESPECT AUTHORS' BY-LINES and copyright notices. Reprinting and resale of the material is strictly prohibited without explicit prior consent by the authors. Please contact the authors directy by email to enquire about resale rights. * * * For information on becoming a corporate sponsor of The Hungary Report, contact Rick E. Bruner by email. Feedback is welcome. Rick E. Bruner, Creator <74774.2442@compuserve.com> Steven Carlson, Publisher Jennifer C. Brown, Co-editor Kriszta Fenyo, Co-editor Tibor Vidos, Parliament Watch Attila Beno, Magyar Net Watch * * * 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> & ; Budapest Sun <100275.456@compuserve.com>; Budapest Week <100324.141@compuserve.com>, and Central Europe Today (free online) , as well as most Hungarian-language media (e-mail addresses to come). =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D END TRANSMISSION --- Steven Carlson iSYS Hungary info@isys.hu steve@isys.hu http://www.isys.hu