From hungary-report-owner Mon Dec 4 07:43:35 1995 Received: from localhost (daemon@localhost) (fnord) by nando.yak.net (8.6.5/8.6.5) id HAA01727; Mon, 4 Dec 1995 07:43:35 -0800 Received: from localhost (daemon@localhost) (fnord) by nando.yak.net (8.6.5/8.6.5) id HAA01718; Mon, 4 Dec 1995 07:43:17 -0800 Received: from jbrown@isys.hu () via =-=-=-=-=-= for hungary-report@hungary.yak.net (1716) Received: from kingzog.isys.hu (KingZog.iSYS.hu [194.24.160.4]) (fnord) by nando (8.6.5/8.6.5) with ESMTP id HAA01710 for ; Mon, 4 Dec 1995 07:42:08 -0800 Received: from [194.24.161.32] (hrep.dial.isys.hu [194.24.161.32]) by kingzog.isys.hu (8.7.Beta.11/8.7.Beta.11) with SMTP id QAA30347 for ; Mon, 4 Dec 1995 16:41:33 +0100 (MET) Date: Mon, 4 Dec 1995 16:41:33 +0100 (MET) X-Sender: jbrown@mail.isys.hu (Unverified) Message-Id: Mime-Version: 1.0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable To: hungary-report@hungary.yak.net From: jbrown@isys.hu (Jennifer Brown) Subject: Hungary Report 1.30 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. 1.30, December 4, 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=3D CONTENTS BRIEFS South Hungary chosen as base for peacekeeping mission Slovak language law threatens bilateral relations Italian gas consortium wins Tigaz, but not Fogaz GE Capital intends to buy Bud Bank Rail workers plan strikes Interior Ministry workers get raises Communication costs to increase AIDS cases, awareness grows Local governments to face budget crisis New National Theater to be built NUMBERS CRUNCHED Ten-month Foreign trade deficit Ten-month export figures Ten-month import figures Senior managers trained in management strategies Acceptance rate of Hungary's membership in the EU Hungarian females who shave Number of dogs in Budapest Fecal matter produced by Budapest dogs FEATURE STORY Embargo's end has smugglers singing the blues PARLIAMENT WATCH Socialists appear stabile after convention MAGYAR NET WATCH Hungarian discoveries in cyberspace The Hungary Report is also supported in part by: MTI-Econews, a daily English-language financial news service. For online (fee-based) subscription information, contact the Internet address: . (It's not automated -- write a nice note.) =3D=3D=3D=3D=3D=3D BRIEFS By Jennifer C. Brown Copyright (c) 1995 ------------ GENERAL NEWS Hungary to host peacekeeping mission The southern Hungarian town of Kaposvar, located 75 kilometers from the Croatian border, has been chosen as a logistics base for the U.S. peacekeeping mission in the former Yugoslavia. The Hungarian Parliament approved the use of Hungarian soil and airspace for the Implementation Force for Bosnia (IFOR) last week. If the Dayton, Ohio peace treaty is signed Dec. 14, a deployment of some 20,000 American troops will start in mid-December. Some 200 NATO troops are already expected to arrive Monday. The town was chosen as a staging site over nearby Pecs, which was originally considered as a location, due to its proximity to the Taszar military airbase. A base near Kaposvar will be staffed full-time by at least 1,500 people for at least a year, reports the Budapest Sun. The town of 80,000 is currently preparing for the arrival of the American soldiers with its local entrepreneurs preparing to sell pizza, hamburgers and American beer. While some welcome the boon to the local economy salaried U.S. military employees will bring, CNN reports that some of Kaposvar's residents fear an increase in gambling, prostitution and AIDS. Hungary firmly rejects Slovakia's language law Hungarian and Slovak constitutional committee members were reported to be at odds last week over Slovakia's new language law during a meeting in Budapest, reports the Budapest Week. The law establishes that all official and public discussion and documentation must be written in the Slovakian language and also bans the sole usage of foreign languages in the print and broadcast media. Chairman of the Hungarian Parliament's Constitutional Committee Peter Hack argued that the law violates the Slovak constitutional guarantee for minority rights. Representatives of the Hungarian ethnic minority in Slovakia say the law goes against the Slovak-Hungarian basic treaty signed early this year. The treaty, which guarantees the rights of minorities, has not yet been ratified by Slovakia's parliament. Head of the Slovak delegation and member of the ruling party Movement for Democratic Slovakia Jan Cuper maintained that the law is in accordance with European standards and is not at odds with the Slovak constitution. He rejects Budapest's appeal for a reconsideration of the law, calling it an interference in Slovakia's internal affairs. The passage of the law is expected to cause further tensions in the already strained relationship between Hungary and Slovakia. "The relationship of the two countries has so far been characterized by negotiations and occasional friendly warnings. Now it has changed," The Budapest Sun quotes Foreign Minister Istvan Szent-Ivanyi. Slovakia's President Michal Kovac, who met with representatives of ethnic Hungarian parties to discuss the language law, is not expected to heed their requests to veto the bill. --------------------- BUSINESS & ECONOMICS Italian gas consortium wins Tigaz, loses Fogaz The Italian consortium of Italgas and Snam signed a US $172 million purchase contract last week for a majority stake in Tiszantuli Gazszolgaltato Rt. (Tigaz), Hungary's biggest gas company. No major personnel cuts are in store. However, the consortium will spend HUF 37 billion (US $268 million) over the next five years to increase its sale of gas from 2.3 billion cubic meters to 3 billion cubic meters of gas annually. It also plans to increase its fuel supply from sources in Algeria and northern Europe, reports Nepszabadsag. Italgaz had also submitted the highest bid for a minority stake in Budapest's municipal gas company Fogaz. However, the city council awarded the stake to a German consortium for US $129 million, US $68 million less than Italgaz's bid, because the Socialist Party was against selling a majority stake in Fogaz, reports the Budapest Business Journal. ------------ SHORT TAKES RAILWAY WORKERS ARE CONSIDERING A STRIKE after the government refused to give in to the Free Union of Railway Workers' demand for a 23.5% wage raise, according to Magyar Hirlap. After the government offered a wage increase of 17.5%, the union's leaders said that further negotiations would be considered. MEANWHILE, EMPLOYEES OF THE INTERIOR MINISTRY have fared better with its wage negotiations. Ministry employees received wage increases of 19.5% while police forces saw their salaries rise 24%, thus preventing an outbreak of pay-related strikes expected last weekend. Interior Minister Gabor Kuncze said the betterment of public safety was a government priority, Magyar Hirlap reports. GENERAL ELECTRIC CAPITAL INTENDS TO PURCHASE Budapest Bank, reports Magyar Hirlap. GE Capital expects to sign a contract to purchase a majority stake in the bank before year's end. Budapest Bank is required to pay back a controversial HUF 12 billion (US $869.6 million) government loan if Budapest Bank does not find a buyer before Dec. 15. TELEPHONE AND POSTAL RATES ARE SET TO INCREASE on Jan.1, 1996. Sending snail mail will be 18% to 120% more expensive next year, while the cost of a telephone call will increase by 25%. In unrelated news, Hungarian telecommunications company Matav plans to launch a US $400,000 advertising campaign aimed to promote a more customer-friendly image (?!). Not to jump the gun, the company plans to fulfills orders for phone lines before launching the campaign. AIDS AWARENESS AND INFECTION CASES ARE GROWING in Hungary, according to a recent survey. Some 95% of 14-20 year olds say they are aware of the spread of AIDS worldwide, but are unconvinced of the disease's threat in Hungary. The first case of AIDS was registered in Hungary 10 years ago. Since then, 130 people have died from the disease and about 500 have tested positive for HIV. Health officials, however, estimate 2,500 to 5,000 people unknowingly carrying the AIDS virus. They say an explosion of AIDS cases in Hungary before the end of the century is likely, due to an increase in prostitution, intravenous drugs use and general promiscuity, writes the Budapest Week. LOCAL MUNICIPALITIES ARE DUE FOR A BUDGET CRISIS, according to an interview with Budapest's mayor Gabor Demsky published in the Budapest Week. Finance Minister Lajos Bokros has allotted HUF 424 billion (US $3.1 billion) to local governments, an amount that falls HUF 12 billion (US $869 million) short of the minimum needed. Budapest's budget will fall HUF 6 billion (US $43 million) below its needs. A PLAN TO CONSTRUCT A NEW NATIONAL THEATER has been approved by the government cabinet. The Ministry of Culture will be given until March 31, 1996 to draw up a plan. The state plans to finance the project with HUF 6 billion (US $43.4 million) in subsidies and HUF 1.3 billion (US $94.2 million) in public donations. Possible sites for the theater include Erzsebet ter, the Pesti Vigado building and a site near the Petofi Bridge. ---------------- NUMBERS CRUNCHED * Foreign trade deficit in the first ten months of the year (Ministry of Industry and Trade): US $2.5 billion * Total exports during the first ten months of the year, 19.4% more than the same period in 1994, (Ministry of Industry and Trade): US $10.1 billion * Total imports during the first ten months of the year, 9.4% more than last year, (Ministry of Industry and Trade): US $12.6 billion * Number of senior managers from mid-size and large companies trained in management strategies (Cegos Consultancy Training Recruitment): 500 * Percentage of people supporting Hungary's integration into the European Union (European Delegation in Budapest): 50% * Percentage of Hungarian women regularly using shaving products to remove body hair (Gillette International): 10% * Number of canines in Budapest (Budapest City Council): 170,000 * Tons of fecal matter produced by dogs in Budapest daily (Budapest City Council): 15 tons (watch your step!!) -------------- EXCHANGE RATE December 1, 1995 (National Bank of Hungary) US dollar - 138.25 (buying), 139.59 (selling) Deutschemark - 95.56 (buying), 96.50 (selling) --------------- WACKY AS USUAL Hungarians are on the wane A new study shows that Hungarian males are dwindling in number with a death rate matched only by Third World countries, according to a survey by the Central Statistical Office. In 1994, a Hungarian male was expected to live an average of 58.3 years compared with 72.9 in 1960. The last time the life expectancy for Hungarian males was this low was in the 1920's. The Hungarian female, however, has a better chance of outlasting their male counterparts, with a stabile mortality rate of 81.2 years. But overall, the number of Hungarians in the world is waning, according to the Central Statistics office. Hungary's population dropped 129,000 between 1990 and 1994 and decreased an additional 23,000 this year. Bad news for tuxedo rental shops. The number of wedding vows exchanged declined to a pre World War II level of 54,000 last year. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D FEATURE STORY Embargo's end has smugglers singing the blues By Sarah Roe Copyright (C) 1995 Down on the Serbian border just south of Szeged, a few Hungarian cars pass through the barriers. Customs guards are chatty and have a little time to stand around and discuss the situation while taxi drivers complain that business is quiet. Since the UN trade embargo was lifted against Serbia-Montenegro last week, an apprehensive atmosphere pervades the border region. "Everyone is waiting to see what will happen," says Sandor Kerekes, chief customs guard at the border crossing. Skeptics point out the embargo has only been suspended and that the situation could change at any time. But Sandor expects that it will take a couple of weeks before border traffic starts to pick up if peace holds. The Serbs also appear to be waiting. There are generally a few Serbians who come on shopping excursions to Hungary. Many leave their cars at the border to avoid paying a fee and walk across. But taxi drivers say that the last week has been very quiet. "Before the embargo was lifted, weekends were always quiet, but Wednesday to Friday could be quite busy," says one driver. Some Hungarians have a lot to lose from the embargo suspension. Many in Szeged have grown rich through selling petrol at high prices across the border. But during the last week, customs say there have been far fewer Mercedes and other cars with big tanks, the trademark of petrol smugglers. "It's not worth taking petrol across now," says Andras, who gave us a lift to the border crossing. "I tried to sell it three times last week and I couldn't get rid of it." He has been smuggling petrol for some time during the war, but says that his distribution network of five houses is not buying now. Serbians say that it would take just weeks before their petrol supplies could be back on tap and they are not willing to pay for smuggled goods when the price could go lower than expensive Hungarian fuel. Andras notes that before the war, he and his friends could make money smuggling petrol from Serbia into Hungary, which is a significant fuel importer. "I wouldn't be surprised if the situation reverts back to this," he laughs. Other petty traders also seem to be faring badly. Hungarian cars return from Serbia with items such as disposable diapers, groceries and paint. Before last week, these were in high demand over the border, but clearly sales have been poor this week. In prosperous Szeged, where estimates put the black market at up to 50 per cent of the local economy, there is a sense that roles could soon be reversed. In the past, it was the Serbians who sold relatively high quality goods to the less developed Hungarian market. Locals admit that despite the war Serbians remain relatively well-off compared to the Hungarians. "I wish they would come," says one market trader. "They buy more than the Hungarians." * * * Sarah Roe is a freelance journalist who writes for The Economist Intelligence Unit, the Budapest Week and other publications. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D Parliament Watch Socialists appear balanced after convention by Tibor Vidos Copyright (c) 1995 The governing coalition and Finance Minister Lajos Bokros' job security seem safer than at any moment during the last few months - this is the outcome of the Hungarian Socialist Party convention in Miskolc over the Nov. 24-26 weekend. But the gathering did not start exactly like this. Before the convention one couldn't rule out a Socialist swing to the left in economic policy, i.e. no reforms in the social welfare system and no significant cuts in public spending. The prime minister spent quite some time at the convention speaking about the Socialist Party's left wing traditions. In the opening speech, Party President and Prime Minister Gyula Horn spoke in a quite harshly about the need to revise the coalition agreement between the Alliance of Free Democrats and the Socialists - and yet in his closing remarks and the convention's final resolution nothing of that sort was mentioned. The final document uses the expression "left" only once, and clarly commits the Socialist Party to the stabilization program. Hungarian politics has been dominated for the past year by internal debates and power struggles within the Socialist Party. What happened at the convention? Were the debates resolved? Did the prime minister win the power struggle ? Did anyone win at all ? The first impression is that no one won and no debates have been resolved. On the other hand, leaders of the Socialist Party seem to have realized that their target audience is not the party itself, but the Hungarian electorate. That is why there was practically no political support for the party's left wing. S=E1ndor Nagy, the former Socialist trade union leader who is hunting now for some more significant position, seemed isolated and did not have a noticeable influence on the course of events. Observers had the impression that the majority of the Socialist Party elite is much more pragmatic could have been assumed from the constant ideological debates between some of its leaders. Sensing this, Prime Minister Horn simply moved himself into this pragmatic center of the party. That's why it seems that he has managed to unite the Socialist Party behind himself. The only significant event that the party is still divided appeared when delegates voted on th4e date of the convention to elect new leadership. The prime minister and the majority voted for March, while Budapest delegates, Parliamentary leader Imre Szekeres and the Speaker of the House, Zoltan Gal voted for May. It seems that Mr. Horn is in a hurry to utilize the new balance of power in the Socialist Party. In the meantime the junior coalition partner, the Alliance of Free Democrats, is also preparing for its convention. In view of the pro-coalition outcome of the Socialist convention, the Free Democrats have no surprise to offer. Fortunately. * * * 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 Hungarian discoveries in cyberspace By Attila Beno Copyright (c) 1995 This week's column will be a bit "unusual". I guess you've heard of the so called "plasma balls" that appear everywhere in the world. The focus of studies has been Hungary in the last year or so. And, not surprisingly, a Hungarian scientist came up with, what he calls, the Answer. His theory aims at explaining the plasma ball phemomena, but it also gives some ideas to the UFOs, Unidentified Flying Object. From this document you can find out what the plasma balls are, and how it is possible for the UFOs to fly so quickly, and unnoticably. You can also see pictures of this phenomena, that were taken from the original video footages. And while most of the people are still very sceptic about these things, I guess the Internet is a very good forum for these kinds of discoveries. So, finally the URL: http://www.isys.hu/~attila/univ =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 inquire directly to Steven Carlson (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 are 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 directly by email to inquire about resale rights. * * * For information on becoming a corporate sponsor of The Hungary Report, contact Steve Carlson by email. Feedback is welcome. Rick E. Bruner, Creator <74774.2442@compuserve.com> Steven Carlson, Publisher Jennifer C. Brown, 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 subscriptions, contact them by email: The Budapest Business Journal <100263.213@compuserve.com> & Budapest Sun <100275.456@compuserve.com> Budapest Week <100324.141@compuserve.com> 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=3D END TRANSMISSION