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     ========================
     The Hungary Report

     Direct from Budapest, every week

     Also available on the World Wide Web (http://www.isys.hu/hrep/)

     No. 1.29, November 27, 1995
     ========================


     SPONSORED BY: iSYS Kft., providing full Internet solutions for
     companies and individuals in Hungary. For further information, send
     e-mail to <info@isys.hu>, view our World Wide Web home page
     (http://www.isys.hu) or call (+36-1) 266-6090.


     ========
     CONTENTS

     BRIEFS

     Socialist's congress smoothes over tensions Education minister
     resigns Bosnia peace dividend to benefit Hungary Electricity strikes
     off Privatization revenues expected at $610 million Peace Corps
     resigns from Hungary early Prague's CEU campus coming to Budapest
     Requirements loosened on new Antenna Hungaria bid Hungarian
     television head resigns

     NUMBERS CRUNCHED

     Percentage of the liquor market operating black Housing units built
     in Hungary this year Number of crime victims Number of police arrests

     FEATURE STORY

     Movie dubbing: Hungary's dying art

     PARLIAMENT WATCH

     Bokros's resignation means political rescue

     MAGYAR NET WATCH

     Sorry, no Magyar Net Watch this week!

     The Hungary Report is also supported in part by:

     MTI-Econews, a daily English-language financial news service. For
     on-line (fee-based) subscription information, contact the Internet
     address: <madarasz@mti-eco.hu>. (It's not automated -- write a nice
     note.)


     ======
     BRIEFS

     By Kriszta Fenyo and Jennifer C. Brown Copyright (c) 1995

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

     Socialist's congress smoothes over tensions

     At the leading governing party's congress last weekend, the Socialist
     Party (MSZP) delegates managed to smooth over tensions, emphasise
     party unity and pledge support for the stabilisation programme. The
     closing statement of the congress declared that the stabilisation
     programme must be carried on but with the support of the majority of
     society. The document also says that left wing values should be given
     more prominence.

     Prime minister and party president Gyula Horn ensured journalists at
     an international press conference at the end of the congress on
     Sunday that "most of the tensions vanished." Indeed, during the
     congress the critical voices from the hard-liner left wing became
     silent. The compromise that the many platforms, factions, groups and
     workshops seemed to have reached is that the stabilisation programme,
     ie, the "Bokros package", is necessary and as a whole, has no
     alternative. However they agreed that there can be alternatives in
     the details and in the means of achieving it. The working section on
     the economy stressed that the stabilisation programme should be
     carried out as soon as possible but only with regard to how much
     society can endure.

     At the beginning of the congress, Horn delivered a two-hour speech in
     which he set the tone for party unity.  He called on delegates to
     stop the "hysteria" and "ruinous self-torment", and not to take
     debates outside the party.  He criticised the work of his government
     calling its performance "uneven", but at the same time, said that
     there had been many achievements. He ensured the party members that
     the government was "on the right path" and had achieved its election
     promises, Hungarian radio reported.

     On Sunday the delegates voted overwhelmingly to have another congress
     at the end of March next year where they would deal with the personal
     questions and the party structure. -KF

     Education minister resigns

     Gabor Fodor, minister of culture and education, announced his
     resignation last Friday.  In his letter to Horn, quoted by Magyar
     Hirlap, Fodor said that the immediate reason of his resignation was
     due to the government's decision to take HUF 7 billion from the
     education budget to cover pay rises of public sector workers.

     He also said that further cuts in the number of teachers would be
     unacceptable. His criticisms had mostly fallen on deaf ears, Fodor
     said in his letter, adding that he did not feel he had received
     enough support from the government, especially from the prime
     minister himself.

     Prime minister Gyula Horn accepted his resignation with regret, while
     the opposition parties welcomed the move as long overdue. The
     teacher's trade union leader, Mrs Istvan Szolossy told the radio that
     it was "the wisest move" Fodor had done in his ministry. Fodor had
     been one of the most widely criticised ministers in Horn's
     government. The former FIDESZ party gentle heartthrob joined the
     SZDSZ, the present coalition member, before the elections in 1994. As
     the youngest minister in the cabinet, ( he is 35), he's been often
     labeled as incompetent. During his tenure, cuts in the culture and
     education budget have been severe, and at a recent demonstration,
     teachers demanded his resignation.

     In a radio interview last Saturday, Fodor defended himself by saying
     that he had not agreed with the severe cuts in the education budget
     but went along with them because of his loyalty to the government. He
     said he was willing to sacrifice much of his popularity for this
     loyalty, but the government decision last Thursday was "the last
     drop". The SZDSZ is expected to discuss Fodor's successor this week.
     -KF


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

     Bosnian peace could mean business opportunities for Hungary

     With a Bosnia peace dividend is in sight, Hungary expects economic
     benefits ranging from reconstruction to trade opportunities, writes
     the Budapest Business Journal (BBJ). The three and a half year
     embargo imposed against Serbia and Montenegro has cost Hungary some
     US $2.25 billion. Bilateral trade with the former Yugoslavia suffered
     as well, trickling from US $200 million in 1991 down to US $55
     million last year.

     With the lifting of the embargo, Hungarian companies can transport
     freight unhindered through the former Yugoslavia on their way to the
     Middle East. During the embargo, Hungary's largest freight-forwarding
     company Hungarocamion had to spend an extra DM 250 per trip to
     circumvent the former Yugoslavia.

     Hungary also expects to restore bilateral trade with rump Yugoslavia,
     but due to low purchasing power there, it is expected to take several
     years before trade reaches pre-war levels. In one example cited by
     the BBJ, Hungarian companies were allowed to export US $1.4 billion
     worth of food and pharmaceuticals to Serbia this year but ended up
     exporting only US $30 million.

     Hungary, which historical ties with Bosnia and Croatia, may also
     participate in the reconstruction of war-torn areas. According to the
     BBJ, Hungarian construction, warehousing and freight-forwarding
     companies will be well-positioned to become subcontractors for
     Western firms competing for reconstruction contracts issued by
     international aid organizations.

     Hungary's economic interests in the former Yugoslavia were echoed by
     Prime Minister Gyula Horn during his visit with Serbian and Croatian
     officials in October.
     -JCB

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

     THE THREATENED ELECTRICITY STRIKE IS OFF following a compromise
     agreement reached last Friday between union leaders and industry
     representatives. The agreement guarantees a 21% pay rise in the
     electricity sector next year. The unions originally demanded 3% to 4%
     more but eventually both parties settled for a compromise. The
     agreement came at the last minute before a threatened nationwide
     electricity strike.
     -KF

     HUNGARY IS POSED TO EARN US $610 FROM THE SALE OF state-owned assets
     by the end of the year. Italian, French and German investors have
     placed bids worth US $461 million for five gas distribution
     companies. The sale of shares in the Hungarian Oil and Gas Company
     (MOL) has already poured $150 into the privatization pot. The
     Budapest Business Journal reports that total investment revenue of
     $610 million will increase the $ 3 billion in privatization revenues
     Hungary has earned since 1990 by 30%. Other year-end sale hopefuls
     include Hungarian telecommunications company Matav, Budapest Bank and
     MVM, the Hungarian Electricity Company. Those deals could bring in Ft
     400 billion, almost twice as much as the targeted privatization
     levels for 1995 and 1996.
     -JCB

     U.S. PEACE CORPS WILL CLOSE ITS HUNGARIAN OPERATIONS EARLY due to
     budget cuts expected to be passed by the U.S. Congress, The Budapest
     Sun reports. No new volunteers will be assigned to Hungary next year
     and the organization's Hungarian operations will officially cease in
     August 1997, when the last group of volunteers completes its
     programs. There are currently 92 volunteers in Hungary. Some 306
     volunteers have served here in non-governmental organizations and
     schools since 1990. The American service organization was originally
     slated to remain in Hungary until the year 2000 at the latest.
     -JCB

     CENTRAL EUROPEAN UNIVERSITY'S PRAGUE CAMPUS WILL BE moved to Budapest
     where the majority of the university's operations are located.
     According to the Budapest Sun, the decision to move the campus came
     after Czech Prime Minister Vaclav Klaus decided against subsidizing
     the campus's rent. High levels of asbestos discovered in the Prague
     campus's main building also provoked the move. Budapest's CEU campus
     currently hosts seven departments.
     -JCB


     THE STATE PRIVATIZATION AND HOLDING COMPANY (APV RT) PLANS to issue a
     new, easier bidding tender for national broadcasting company Antenna
     Hungaria. The decision came after investors complained that the last
     invitation was too strict. Only one company, TeleDiffusion de France,
     offered a bidding package. The new invitation, to be released early
     next year, is expected to attract more bidders. Unlike the last
     tender, it will not require investors to put HUF 8.4 billion into the
     company and also doesn't require the purchase of a 50% plus one vote
     share.
     -JCB

     HUNGARIAN TELEVISION'S PRESIDENT ADAM HORVATH PLANS to step down from
     his post Jan 1. Horvat, who has been in his post for only a year, is
     dissatisfied with the media bill that is currently standing before
     Parliament. Besides privatizing part of Channels 1 and 2 and
     satellite channel Duna TV, the bill would also limit the president's
     powers during the privatization process.
     -JCB


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

     *  Percentage of the liquor market operating in the black
     (Association of Spirit Importers):  30% to 35%

     *  Number of housing units built in Hungary in 1995, up from 21,000
     last year (AB Information):  23,000

     *  Number of crime victims in Hungary between January and September.
     (Budapest Week):  187,285

     *  Number of arrests made by police during this period. (Budapest
     Week):  87,361.


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

     Monday, November 27, 1995 (National Bank of Hungary)

     US dollar -136.32 Deutschemark - 95.85

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

     Movie dubbing: Hungary's dying art

     by John Nadler Copyright (C) 1995

     For a generation, the great banes of expatriates living abroad have
     been money changers, diarrhea, ... and dubbed movies. In Hungary, the
     practice of changing the voice track of an English film and screening
     it in Magyar is a 50-year-old institution, cherished by locals and
     hated by 'Angol' speakers.

     What homesick expat in the Carpathian basin hasn't seethed upon
     learning that a long-awaited foreign movie has been synchronized into
     Hungarian for local consumption? Oh, the frustration. A kulfoldi
     trying to watch a dubbed film with beginner's Hungarian is like
     playing pool with a crooked cue -possible, but achingly annoying.

     English and American expats can take solace. The fine and
     controversial art of film dubbing is currently under siege. In recent
     years, fewer feature films have been synchronized into Hungarian, and
     the quality of dubbing is steadily degenerating. This wasn't always
     so.

     "There used to be a time when the Hungarian version of an American
     film was even better than the original," recollects Gizella Takacsy,
     a translator and voice-over director who currently works for Magyar
     Televizio (MTV). "Take, for example, Woody Allen movies. The
     translations were always good and the acting of Andras Kern" -the
     Hungarian actor who dubs Woody's voice -"is, in my opinion, better
     than Woody Allen himself."

     Better than Woody? That may be stretching it, but Hungarian's ability
     to translate the vernacular, humour, and cultural references of a
     foreign film is a result of long years of practice, and stems from
     one odd fact: Hungarians have been synchronizing their own movies
     since the 1940s. "All domestic films [here] are dubbed, because this
     industry doesn't have the same film-making technology they do in
     places like America," explains Canadian-born Hungarian actress
     Kathleen Gati, who has starred in a host of Hungarian feature films
     such as Sose halunk meg (We Never Die) and Este Kornel. "The
     voice-over is a very important part of the film making process here."

     At one time, Hungary led the world in cinema technology. Hungarian
     movie magnate Sandor Korda erected Mafilm studios early in the
     century before going on to invent the British film industry, and to
     co-found the United Artists group in Hollywood.

     But Hungary's ascendancy as a cinema powerhouse ended with World War
     II. By  the late 1940s, Magyar film found itself  poorly tooled and
     under-funded. The inferior cameras filmmakers were forced to use made
     loud noises when operated and compelled directors to do something
     that had never been done in Hungary since the advent of "talkies" -
     abandon the use of "original" sound.

     In the post-war era, it soon become standard movie-making practice in
     Hungary and a few other European countries to shoot a film, and then
     dub in the dialogue afterwards. The cost in quality of this custom -
     the fact that lip movement and sound never completely match on screen
     - was overpowered by the advantages - directors could eliminate
     unwanted camera sounds, filter out background noise and re-write
     dialogue after a movie had been filmed.

     In some instances, this system bears fine results. "Sometimes I like
     it," admitted Hungarian-born filmmaker Gabe von Dettre. "I like the
     sterile effect" of a movie that does not use original sound. "I
     remember seeing French films that have done this technique very
     artistically, very interestingly." In other instances, the system
     sucks. "It's a terrible thing," said Gati. "You lose so much of the
     movie if you don't use the original sound. You lose quality. You lose
     feeling. I would say that Hungarian films become two dimensional
     because of the dubbing....There are good Hungarian films that have
     become mediocre because of it."

     For Magyars, one consolation grew from the dubbing tradition: When
     foreign films began arriving here in the 1980s and '90s, the industry
     had the know-how to make icons like Woody Allen, Bruce Willis, and
     Eddie Murphy speak directly to Hungarian audiences. Five decades of
     dubbing their own films had made technicians, directors, and
     voice-over actors experts at their craft, and well able to
     synchronize imported movies.


     Distributors were also pressured to synchronize. Audiences wanted it.
     Cultural expectations made sub-titled films anathema. And the
     industry could afford it, due to Hungary's low technical production
     costs and the ability to hire top actors and actresses for a song as
     voice-over artists. (Hungary's struggling thespians get about US $250
     on average for dubbing a feature movie, according to MAFILM AUDIO
     Ltd., one of Hungary's premier sound studios.) The use of stage and
     movie stars to breath life into foreign films is the Hungarian
     dubbing industry's greatest asset. In the United States, English
     voices in dubbed foreign movies (think of the last gladiator flick
     you saw) are often performed by lower echelon actors, or -- at best
     -- professional "voice-over artists" who earn their living narrating
     TV commercials and documentaries. In Hungary, the situation is
     different. "The same actors who are stars on stage and screen also do
     dubbing parts," explains Takascy. Because of hard economic times,
     local distributors are able to hire the Magyar equivalent of Bruce
     Willis to be the voice of the real Willis in 'Pulp Fiction' and 'Die
     Hard'. Often the popularity of the local actor doing the voice-over
     can enhance the movie's successs. Muses Gati: "Woody Allen is a
     favourite here because of Andras Kern."

     Kern is not the only star involved. Istvan Bujtor is the voice of Bud
     Spencer. In a casting decision proving synchronization knows no
     color, Magyar star Gyorgy Dorner is the voice of both Bruce Willis
     and Eddie Murphy. But a film's dialogue is more than voices. Bringing
     a movie to Hungarian audiences in either a dubbed or sub-titled form
     necessitates translating the humour and cultural references of a
     strange land into the local vernacular. This task can be daunting
     when rhyme and word games figure into the script.

     Consider the US movie 'We're No Angels', which starred Rober DeNiro
     and Sean Penn. A comedy about two escaped jailbirds who pose as
     priests in a monastery to evade capture, the movie's climax occurs
     when a child tries to reveal their identity by telling a cleric that
     the two are 'convicts'. The hearing-impaired brother expresses shock,
     and answers, 'Converts?'... and the joke leads to the story's
     resolution. Replicating this pun in its exact form in Hungarian -
     where the words for 'convert' and 'convict' are dissimilar - is
     impossible. Takascy, hired to render this movie into Magyar, resolved
     the problem by altering the script. In the Hungarian version, the
     informer whispers: "OK a rabok." (They are convicts.) The stunned
     cleric answers: "Arabok?" (Arabs?) ... Not quite the same thing, but
     funny and fitting enough to resolve the film dramatically.

     The pitfalls of translating Hollywood films are not unique to
     Hungary. Many West European audiences also prefer foreign movies
     dubbed. (Interestingly, movie goers in Finland, Hungary's distant
     linguistic cousin, opt for original sound and sub-titles when viewing
     foreign movies, even on TV.) Inspired dubbings of zany ethnocentric
     American movies such as 'Wayne's World' reveal just how difficult the
     task can be. How do you translate "Schwing", the sound Wayne and
     Garth, the two post-pubescent protagonists of 'Wayne's World,' make
     when expressing sexual excitement? Don't bother consulting linguist
     Laszlo Orszagh, or any European dictionary. In dubbed versions in
     France, the boys say Ch'poing!; in Italy, Sboing!; in Spain, Dooing!
     The French equivalent of "I think I'm going to hurl!" is: "C'est
     l'heure de la purge."

     Clearly, Hungary didn't invent dubbing. But generous state-funding
     and a healthier economy in years past gave Hungarians the time,
     money, and luxury to be good at it. "There are some really fine
     examples of how great dubbing can be," says Takacsy.

     Most of these "examples" took place more than three years ago when
     dubbing professionals labored on foreign films for as long as two
     weeks to get it right. Now financial considerations demand that the
     same job be done in two days, and Hungarian audiences can hear the
     results. "Dubbing has become a trade, a business," laments  Takacsy.
     "It used to be an art, and now it is an industry."

     "The pace of the work is much more rapid," she adds. "Everything has
     accelerated, and you can feel the result in the quality ... Hungarian
     dubbing is still very good, because we have good actors. It's just
     that, it used to be better." There used to be more of it too.
     According to Ferenc Haber, managing director of MAFILM Audio Kft.,
     only 20 to 30 percent of Hungary's foreign releases are synchronized.
     The rest are sub-titled (an infinitely cheaper process) with the
     original sound in tact. "It has changed," says Haber. "Four years
     ago, half of the foreign feature films distributed in Hungary were
     dubbed."

     The reason for the decrease. Fewers Hungarians are going to the
     movies, and the cost of dubbing -like everything else - is going up.
     This is good news to some. Local distributors will continue dubbing
     blockbuster Hollywood features in a bid to attract large audiences.
     But they will be doing this less and less - a cruel fact that is
     causing Hungary's synchronization industry to 'purge' ... and Angol
     expats to 'Schwing!'

                                                * * *
     John Nadler <jnadler@magnet.hu> is a freelance writer based in
     Budapest who writes for local and international publications.

     ===============
     PARLIAMENT WATCH

     Bokros's resignation means political rescue

     By Tibor Vidos Copyright (C) 1995

     Finance Minister Lajos Bokros has resigned because the Constitutional
     Court invalidated yet another piece of his famous March 12 austerity
     package.

     Prime Minister Gyula Horn did not accept the resignation of his
     second finance minister, and defended him in front of the television
     cameras.

     Bokros will certainly stay in office as long as the tripartite
     agreement of the government, business and labor is signed and
     Parliament approves the 1996 budget. Bokros will decide whether he
     will be ready to continue serving as finance minister after assessing
     what legal and political tools remain in government hands to reform
     public spending. Five Constitutional Court decisions cut a HUF 30
     billion hole in the stabilization program already.

     Bokros' resignation, whether deliberately accidentally, was extremely
     well-timed. One day before a crucial tripartite meeting about a
     price-wage agreement and the opening of Socialist Party convention,
     and a few weeks before the approval of the 1996 budget, Bokros could
     prove that he is indispensable, forcing the media to treat him as a
     serious politician trying to improve the country's situation but
     hindered by constitutional bureaucrats.

     Bokros also demonstrated statesmanship in showing he could draw
     conclusions from the Constitutional Court ruling: Either he is
     incompetent - in which case he should resign - or the Constitutional
     Court is exceeding its mandate by limiting the government's freedom
     of action in economic decision making. Since Horn kept his finance
     minister in office, the message is clear: It is the Constitutional
     Court that is to be blamed.

     Bokros, the most unpopular politician in the cabinet and a probable
     candidate for the most unpopular finance minister ever, has therefore
     done thus a great favour to the prime minister, who was facing heavy
     fire at the Socialist Party convention over the weekend. By resigning
     and blaming the Constitutional Court, Bokros has created a "besieged
     fortress" atmosphere in the Socialist Party. In this atmosphere it
     will be much more difficult to criticize Horn and Bokros for their
     policies.

     Horn immediately used this opportunity to rally convention delegates
     to support him and his government "because without support the
     government can not fulfil the role it has been entrusted by the
     electorate- to put the things of this country right."

     Bokros, whose forthcoming sacking has been widely rumoured among
     fellow socialist politicians, has thus accomplished what many did not
     believe he could have ever achieved - he secured his own political
     survival and significantly boosted the position of his boss.

     Carry on, Lajos ! At press time Gabor Fodor, Minister of Culture has
     announced his resignation as well. His relation with the Prime
     Minister has been strained for a significant amount of time. This
     resignation will be accepted by Mr. Horn without hesitation.

                                                * * *
     Tibor Vidos is a lobbyist and political consultant in charge of
     the Budapest office of GJW Government Relations. <vidos@ind.eunet.hu>
     or <CompuServe: 76702,2227> A version of this article appeared in the
     Budapest Business Journal.


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

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                                                * * *

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                                                * * *

     ABOUT THE CO-EDITORS

     Angels' Land, Budapest native Kriszta Fenyo <fenyo@isys.hu> is a
     researcher for the BBC World Service and BBC Television, (also
     fledgling freelance TV producer for Reuters). She is also completing
     her PhD in 19th century Scottish history. She has lived in Hungary on
     and off since birth.

     Whitefish, Montana native Jennifer C. Brown <jbrown@isys.hu> reported
     for the Budapest Business Journal for a year before joining the
     Hungary Report. She also works as a freelance journalist for regional
     and international business and foreign affairs publications. She has
     lived in Hungary on and off since 1991.

                                                * * *

     The entire contents of The Hungary Report are copyrighted by the
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                                                * * *

     For information on becoming a corporate sponsor of The Hungary
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     Feedback is welcome.

     Rick E. Bruner, Creator <74774.2442@compuserve.com> Steven Carlson,
     Publisher <steve@isys.hu> Jennifer C. Brown, Co-editor
     <jbrown@isys.hu> Kriszta Fenyo, Co-editor <fenyo@isys.hu> Tibor
     Vidos, Parliament Watch <vidos@ind.eunet.hu> Attila Beno, Magyar Net
     Watch <attila@isys.hu>

                                                * * *

     For its briefs, The Hungary Report regularly consults the news
     sources listed below -- for information about subscriptions, contact
     them by email: The Budapest Business Journal
     <100263.213@compuserve.com> & <http://www.eps.hu/bbj.html> Budapest
     Sun <100275.456@compuserve.com> Budapest Week
     <100324.141@compuserve.com> Central Europe Today (free online)
     <cet-info@eunet.cz>, as well as most Hungarian-language media (e-mail
     addresses to come).

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











