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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. 1.38, February 19, 1996
  ========================


  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

    Inspectors enforce Slovak language law
    Bokros resigns from Ministry of Finance
    OECD membership around the corner
    Holbrooke on NATO membership
    New media law criticized
    Maternity benefits to end soon
    Court date set for Hungarian-Slovak dam dispute
    Conference draws successful emigres
    Minister signs beginnings of economic progress in 1995
    Tricks that raise the dead

    NUMBERS CRUNCHED

    Value of services Brown & Root provides to U.S. troops in Kaposvar
    Budapest's 1995 revenues
    Annual inflation rate
    Couples getting hitched in 1995
    Last year's divorces
    Illegal workers in Budapest

    FEATURE STORY

    Moving the masses

    PARLIAMENT WATCH

    Big decisions await opposition parties

  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: <madarasz@mti-eco.hu>. (It's not automated -- write a nice
  note.)

  ======
  BRIEFS

  By Jennifer C. Brown
  Copyright (c) 1996

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

  Inspectors enforcing Slovak language law

  The controversial Slovak language law is under enforcement, reports
  the Budapest Week. The government has issued inspectors to four
  districts to check on whether citizens are using the Slovak language
  in administrative matters. The  language law banning the use of
  languages other than Slovak in public was passed late in 1985 despite
  criticism from Hungary and Western European institutions.

  The Hungarian daily Kurir reports that a number of violations have
  occurred so far. Among them: Hungarian and Slovak texts appeared in
  the wrong order on store signs and in advertisements. Shop assistants
  addressed customers in Hungarian and report cards were filled out in
  Hungarian. Violators have been given warnings.

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

  Bokros resigns from Ministry of Finance

  Finance Minister Lajos Bokros resigned Sunday following the cabinet's
  rejection of his planned social insurance tax and a shouting match
  with a trade union leader, reports Nepszabadsag. The tax, introduced
  last Wednesday, aimed to reduce the social insurance deficit from Ft
  60 billion to Ft 17.8 billion by replacing the present system of social
  insurance contributions.Before the resignatin, Bokros said he was unmoved
  by his lack of popularity among the public but it was the lack of
  governmental support that drove him to his resignation, according to
  his resignation letter.

  Prime Minister Gyula Horn expressed his regret over the Finance
  Minister's resignation. He told reporters that Bokros had been
  unjustly attacked and pledged that reforms in the area of economic
  stabilization and public finance reform would take place, but added
  that only after experts were consulted and certain compromises were
  reached. The Constitutional Court had earlier warned that Bokros's
  social insurance tax reform might be unconstitutional. Bokros's
  resignation, set to take effect February 29, is not expected to
  hamper the impending IMF standby loan agreement, even though it is
  dependent on reducing the social insurance deficit to around Ft 17.8
  billion.

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

  HUNGARY COULD JOIN THE ORGANIZATION FOR ECONOMIC Cooperation and
  Development (OECD) by next month if the organization decides that
  Hungary has made enough reforms in the banking sector. Once Hungary
  becomes an OECD member it can receive standby credit from the
  International Monetary Fund.

  HUNGARY'S RELATIONSHIPS WITH ITS NEIGHBORS COULD HINDER Hungary's
  NATO membership, said U.S. Assistant Secretary of State Richard
  Holbrooke. He made his statements following talks with Hungarian
  government officials last weekend, reported the Budapest Week.
  Holbrooke said he hopes Hungary can join NATO, adding that the
  country is held in high regard by the United States. Plans to enlarge
  NATO are set to continue despite opposition from Russia.

  THE NEW HUNGARIAN MEDIA LAW WAS MET WITH CRITICISM last week by
  representatives of the European Media Institute and the International
  Press Institute, writes Magyar Hirlap. They said the law was too
  complicated and allowed for political wrestling and power-wielding.
  Their criticisms came during a conference held by the Prime
  Minister's Office. In response, Minister of Culture Balint Magyar and
  Prime Minister Gyula Horn's senior adviser Tamas Revesz said
  Parliament attempted to pass a law that was in harmony with European
  standards but blamed domestic affairs for the laws faults.

  NEW FAMILY HEALTH CARE MEASURES WILL MEAN A CANCELLATION of the
  pregnancy supplement and child care fees as of April 15 this year,
  writes Magyar Hirlap. Under the new plan, mothers would be paid a
  flat fee of Ft 10,000 rather than a maternity supplement. The
  two-year child care fee would only be paid to those who give birth to
  a child before April 15.

  THE HAGUE'S INTERNATIONAL COURT OF JUSTICE WILL HOLD A TRIAL to
  settle Slovakia and Hungary's disputes over the Gabcikovo dam in
  February 1997. Hungary wants to cancel the construction of the
  hydroelectric dam in Slovakia primarily due to environmental reasons.
  Hungary and Slovakia may seek an out of court settlement before the
  trial.

  PROMINENT HUNGARIAN EMIGRES GATHERED IN BUDAPEST LAST WEEK to
  increase their solidarity among Hungarians abroad. The conference,
  called Magyarorszag 2000, was organized by Prime Minister Gyula
  Horn's office. Speaking to some 100 people, Horn asked the crowd not
  to put the blame of the past regime on the current reigning
  Socialists, writes the Budapest Sun. Making a last minute showing was
  Hungarian-American financier George Soros. He said Hungary has fallen
  behind the Czech Republic in implementing economic reforms.
  Hungarians have another two or three years of economic hardship ahead
  of them, he said. Topics discussed included finance and investment,
  development and transfer of technology. But whether anything concrete
  came out of the conference has yet to been seen, writes the Budapest
  Week.

  THE HUNGARIAN ECONOMY PICKED UP IN 1995, MINISTRY OF Industry and
  trade Imre Dunai told journalists last week. He pointed to signs of
  progress: A foreign trade balance reduced by $1.3 billion in 1995 to
  $2.6 billion, a 21% increase in exports to $12.9 billion a 7% rise in
  imports to $15.5 billion. Some 63% of exports went to European Union
  member states while OECD countries accounted for another 8%. Dunai
  pointed out that the growth in exports was due mostly to materials,
  semi-finished products and components, which together increased by
  30%. Productivity increased 12% last year.

  INVESTORS WHO PURCHASED SHARES IN FOUR OF HUNGARY'S SIX electricity
  distribution companies are trying to purchase majority stakes despite
  a law that forbids them to do so, reports the Budapest Business
  Journal. The State Privatization and Holding Co. (APV Rt) sold
  between 46% and 49% of the six companies to foreign investors for
  $1.1 billion. Privatization Minister Tamas Suchman made a promise to
  Socialist MPs to keep majority stakes out of foreign hands for two
  years. But brokerage firms representing foreign investors are looking
  for municipalities around the country that want to sell their stakes,
  much to the chagrin of Socialist MPs.

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

  *  Expenditures of Brown & Root, the Texas-firm contracted to provide
  services for U.S. troops stationed in Hungary: (The Budapest Sun) $34
  million

  *  Revenues Budapest took in last year (Mayor Gabor Demszky):  $736
  million

  *  Annual inflation rate, calculated with January's inflation rate of
  4.4% (Central Statistics Office):  28.9%

  * Number of couples married in 1995, 42,000 down from 1970 (Magyar
  Hirlap): 54,000

  * The number of divorces in 1995, compared to 23,000 in 1970 (Magyar
  Hirlap) 24,000

  * Number of Budapest's one million workers who work illegally
  (Capital Labor Center): 80,000.

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

  February 15, 1996 (National Bank of Hungary)

  US dollar - 144.65 (buying), 146.05 (selling)
  Deutschemark - 98.73 (buying), 99.66 (selling)

  =============
  WACKY AS USUAL

  Tricks that raise the dead

  The daily tabloid Blikk recently reported that an elderly woman in
  Budapest kept the corpse of her husband in her apartment for a week
  to get his pension check before reporting his death. She reportedly
  used a shovel to prop up her belated husband so it looked as if he
  were sitting in an upright position. To make it look like he was
  merely having a short rest she covered his head with a cap.
  Eventually, the neighbors and the postman grew suspicious of a
  strange smell emanating from the apartment and promptly called the
  police. Later, it turned out the woman was mentally ill.

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

  Moving the Masses:
  Charismatic Congregationalists offer salvation in the land of the
  Magyars

  By Jennifer C. Brown
  Copyright (c) 1996

  It is the last Sunday of the month. A large sports stadium in
  Budapest is filled with devotees of the Congregation of Faith who
  have come from all over the country to be cleansed by what they call
  the Holy Spirit. The congregation's pastor, Sandor Nemeth, engages
  the crowd with a passionate sermon. His turquoise suit and sharp blue
  eyes appear to leap out of the large television screen that looms
  above the stage. "Not only is the outside world evil," he booms into
  a microphone, "but those who are not members are stupid."
  As he speaks, several members nod and smile with self-assurance. His
  mentions of Satan's manifestations Michael Jackson and Madonna elicit
  titters from the crowd. "Pop culture is the work of demons," he
  continues.

  Many of those who have come to participate in the weekend-long sermon
  are young and clean-cut. They wear a glazed, serene look on their
  faces. A few have their arms outstretched. Taking a break from his
  soliloquy, Nemeth reads the crowd a passage from the book of Matthew
  in which two men break open the roof of a house so that their
  handicapped brother can reach the healing powers of Jesus Christ.
  "Those who lifted the roof were moved by the Holy Spirit. They didn't
  care about the consequences. You have to receive the spirit and do as
  the spirit moves you," he said.
  And that it does.

  As the sermon builds momentum, possession takes hold of the crowd.
  "Let the spirit enter the center of your being and fill it in.
  Realize you belong to Christ, body and soul," he shouts.
  A television camera pans in on a woman in the front row who has begun
  laughing and rocking back and forth violently. Suddenly, the whole
  stadium is awash in raucous laughter. Several bounce up and down at a
  breakneck speed. One woman shakes furiously, her long blonde hair
  moving to the tempo of her body.

  Congregation of Faith

  Hungary has seen its fair share of imported religious assemblies such
  as the Hare Krishnas, Jehovah's Witnesses and Christian Scientists
  attempt conversions since the dismantling of state-enforced atheism.
  But they have failed to take root as deeply as the fundamentalist,
  charismatic, home grown Congregation and its splinter groups.
  Drawing on the mass participation, flashiness and heavy emotional
  experiences that characterize American Pentecostal movements such as
  Foursquare Gospel, World of Faith and the Assemblies of God, the
  Congregation of Faith claims itself to be completely indigenous. The
  Congregation was born in Hungary 18 years ago when leader Sandor
  Nemeth received a message from God to bring charismatic Christianity
  to the Hungarian nation, according to Congregation literature. Today,
  the church boasts 30,000 members, with some 3,000 to 4,000 members at
  a time meeting three times a week.

  Like much of the conservatism espoused by fundamentalist Christians
  in the United States, the world of Hungarian fundamentalists is one
  where premarital sex, abortion, homosexuality and divorce are sins,
  but curable. Members are advised to abstain from alcohol, cigarettes
  and drugs in order to remain clean vehicles for the Holy Spirit.
  The Congregation attempts to shelter itself from the everyday
  temptations of society and demonic popular culture by offering
  fundamentalist substitutions, such as its own literature, music and
  even its own learning institutions.
  In an ambitious attempt to consolidate its holdings, the Congregation
  of Faith plans to build a mega-complex consisting of a temple to hold
  up to 10,000 people, offices, an elementary school and a publishing
  house.

  American scholar Daniel Watson, who is conducting research on new
  religious groups in Hungary, has taken a particular interest in the
  Congregation of Faith due to its high membership rate, its national
  message, and its image, which combines ideology with high-tech and
  upward mobility.
  "Spiritual bankruptcy made it possible to save large amounts of
  people at a time," he said. "[The Congregation] will become a
  permanent fixture in Hungarian politics. Their Bible school is
  graduating an elite group who are intellectual, fundamentalist,
  knowledgeable about computers and savvy in business and foreign
  languages."
  "They are impressive," adds Elena Tsui, an American Christian
  missionary working in Budapest. "They are one of the best organized
  groups I've seen and the fastest growing religious group in Hungary,
  if not Europe."

  Mass conversions occurred in the mid-80's when Nemeth's seven
  followers took to the streets to recruit young people to a secret
  Hungarian Christian movement. One well-known alternative punk rock
  band, Neurotics, went from being head-banging, drug-addicted punks to
  musical missionaries.
  The congregation has politicians, rock stars, corporate heads and
  even an owner of a popular night spot in Budapest amongst its
  members. The mere mention of the name sparks recognition in the minds
  of young Hungarians, though not always a positive one.

  "We used to call them, 'The Congregation of God's Cock'," said
  Budapest resident Anna David.
  Anna attended one of the Congregation's early services in 1986, when
  it was just starting to get a foothold. Back then, any gatherings
  dealing with spiritual matters were considered illegal, forcing
  members to meet secretly in each others homes. While Anna resisted
  the conversion despite what she calls, "intense psychological and
  social pressure," other intellectuals have embraced the religion with
  zeal. "This is a side effect of 40 years of religious oppression,"
  she said.
  Twenty-year old Jano Farkas was drawn to the Congregation of Faith
  seven years ago while he was attending a Catholic boarding school. "I
  met some members on the street. They told me interesting things about
  the Bible," he said. Eventually, Jano began attending meetings and
  soon enough, became a member. "It was unusual and exciting because it
  wasn't like the Catholic church. It was lively. It was
  inspirational...There was laughing and dancing and everybody was
  close to each other.  They told me about emotions and messages of the
  soul. It was easy to [see how] I was converted."

  During the services, Jano participated in a practice that is called
  speaking in unknown tongues. Jano often experienced what the
  Congregation calls, the cleansing of the Holy Spirit, which happens
  spontaneously during a service. "I always fell down," he said. "It
  was an ecstatic feeling. I burst into tears. I felt happy and free."
  But when asked if he believed it was really the Holy Spirit he
  answered by saying, "I don't know what it was." Jano eventually met
  another Congregation member at his boarding school and they began
  holding Bible study meetings in secret. Eventually, a Congregation
  pastor suggested that Jano leave the school for good and was told he
  should receive a blessing every weekend to cleanse him of the "evil
  spirit of Catholicism." That incident, coupled with other strict
  edicts he was told to adhere to, forced him to leave the Congregation
  for good.

  Today, Jano looks far from a bible-toting fundamentalist. He sports a
  goatee and round glasses. He is a big fan of Seattle grunge bands and
  enjoys reading Hungarian philosophers - things that were forbidden in
  the Congregation.
  Today Jano calls he methods employed by the Congregation a a mild
  form of brainwashing and worries that his ex-girlfriend, an avid
  member, is starving because she gives half her salary to the
  Congregation.
  "I still believe in God but I'm not a member of any church now. But I
  think it was a good decision to leave because a lot was left out of
  my life," he said.

  Immanuel

  While a few like Jano drop out of the Congregation, it continues to
  grow, even inspiring several smaller movements in other parts of the
  country. One such as Immanuel , a 7-year old charismatic,
  fundamentalist group based in the western Hungarian Catholic
  stronghold of Szombathely, home of the Bishop's palace. With his neat
  appearance, stylishly-framed glasses and bright smile, Immanuel's
  leader Karoly Geczi could be the Hungarian version of Pat Robertson.
  Like Nemeth, Geczi, a former Baptist minister, received his own
  calling from God to start Immanuel in a town he had never been to
  before. Today, Immanuel espouses 80 members and a foundation that
  sells Christian literature, organizes youth camps and assists the
  town's needy. He explained that the fundamentalist movement is
  gaining popularity in Hungary because traditional churches
  compromised during the Communist regime. "They lost both the trust of
  the people and their authority," he said.

  Immanuel's appearance in Szombathely earned its share of critics in
  an 80 percent Catholic town. At one time both Immanuel and the
  Congregation of Faith were called cults. But Geczi dismisses those
  labels saying,"When the MDF (Hungarian Democratic Forum, the last
  government regime) and the Roman Catholic influence came, everything
  that wasn't Roman Catholic was considered a cult. What is strange is
  that when the government changed, those voices shut up."
  Geczi calls Roman Catholicism an "arrogant and exclusive religion,"
  and is critical of the political influence that it gained under the
  Center-right MDF. However, Geczi doesn't deny, however, that his
  church, which closely identifies itself with the current ruling
  coalition, the left-leaning Free Democrats, seeks political influence
  in Hungary as well.

  Recently, Geczi met with Hungarian President Gyula Horn to deliver
  him three messages "personally received" from God. "One was a
  personal thing because he had an accident. [Horn hurt his neck in a
  car accident before the May elections.] The others were about leading
  the country. One message  was about righteousness because there is
  very little in present-day societies," says Gezci.
  "We talk about politics during our service. We pray a lot for the
  leaders of the country and for the ministers to make decisions that
  are good for Hungary," adds Zsuzsa, a 23-year old member. "We pray
  every morning for Szombathely and Hungary. We have a responsibility
  for the town and the country.

  Not surprisingly, Geczi also preaches a classic, American capitalist
  ethic. Members are expected to work hard both in their careers and in
  assisting the work of the foundation. According to him, Immanuel's
  members are in high demand by the town's employers. "We believe in
  growing and prosperity, not in a religious or sacrificial purity;
  that's a Roman Catholic concept. Communism is a patriarchal system
  that says if you are good, you will be rewarded. I preach that God's
  work is a creative power."

  Attila, a 20-year old college student, said he was only able to pass
  the entrance exam into college after finding Immanuel."I was an
  average student and I failed the first entrance exam. After
  converting, I got 100 points out of 100 points possible on the next
  exam." Like other Immanuel members his age, Attila leads a life
  contrary to the hedonistic youth lifestyle promoted in Hungary, but
  he says he has found a more positive substitute.

  Having had no previous religious experience, Attila came to the
  church with a natural curiosity of the occult and Eastern religions.
  Following his conversion, he immersed himself in the book of Matthew
  and lost interest in going to discos and movies. "I have many friends
  but I lost some because I didn't want to lead a life like theirs." he
  said. "Because I changed, only God is the main aim of my life." Even
  after family members expressed concern that he wasn't leading a
  normal life, he eventually managed to convert his mother and his
  father, a former devout Communist. Today, Attila's book collection
  consists of the Bible, Christian books, and objective historical
  books, but no fantasy or fiction, unless, that is, it is Christian
  fiction. Instead of listening to the radio while driving his parent's
  Opel to school, he pops in a cassette of an American Christian choir.


  For young Hungarians who can find few other opportunities for
  personal fulfillment elsewhere in an increasingly status-ridden and
  materialistic society, groups like Immanuel and the Congregation of
  Faith are striking a deep chord, according to religious studies
  scholar Daniel Watson. "It's liberating emotionally. There are few
  places where people have an optimistic alternative," he said. "What
  do Hungarians do to make their lives better? They can go to strip
  joints and tanning salons. They can acquire clothing and spend money.
  But who else but these churches offer a successful life, certainly no
  government party," he said.

                                        *  *  *
  Jennifer C. Brown (jbrown@isys.hu) is a freelance journalist in
  Budapest who writes for regional trade and general interest
  publications besides editing The Hungary Report. This article
  originally appeared along with photographs in the February issue of
  Pozor.

  ===============
  Parliament Watch

  By Tibor Vidos
  Copyright (c) 1996

  Big decisions await opposition parties

  Two of the four opposition parties in Parliament, the Hungarian
  Democratic Forum (MDF) and the Christian Democratic People's Party
  (KDNP), are facing crucial decisions these days. MDF will have to
  elect a new president in
  March, KDNP has just re-elected its parliamentary leader despite a
  challenge from the party president. Electing party leaders is normal
  business in any political party -unless the nominations reflect
  serious rifts in the leadership of these organizations. Such is the
  case with the two rightist
  parties.

  The conservative opposition has two major problems to overcome: the
  overwhelming (72%) dominance of the governing parties, and secondly
  the lack of a moderate conservative tradition in Hungarian political
  culture. The Smallholders' Party and  Fidesz, opposition parties
  strongly controlled by their respective chairmen, have developed
  their own quite differing responses to this situation. The
  Smallholders, led by Jozsef Torgyan, took the populist alternative,
  while Fidesz  has decided to try to fill the vacuum on the moderate
  right. Both tacks, according to opinion polls, are popular. MDF and
  KDNP both appear to be split between the two alternatives.

  Gyorgy Giczy, the populist-leaning president of KDNP, lost his last
  minute bid to also become the party's parliamentary leader. Tamas
  Izsepy, who was re-elected leader of the Christian Democratic caucus,
  is known to favor cooperation between the non-populist opposition
  parties. In MDF, the party which governed the country from 1990 to
  1994, the situation is even more complex. Lajos Fur, the party's
  current president, has decided not to run for office at the
  forthcoming convention of the former major governing party, unless
  "extraordinary circumstances" force him to do so. With this move Fur
  opened the door for an all-out war between  the populist-nationalist
  wing of the party, which supports Sandor Lezsak for president and the
  moderate conservatives, who are represented by former finance
  minister and faction leader Ivan Szabo.

  Lezsak, whose garden housed the wedding tent where MDF was formed in
  1987, has declared his willingness to cooperate with everyone inside
  the right wing's big tent. This includes Imre Pozsgay, the
  nationalist reformed communist who was in Leszak's garden in 1987 and
  Istvan Csurka, the extreme right-wing nationalist, who was kicked out
  of MDF by former prime minister Jozsef Antall. With both KDNP and MDF
  split between competing ideologies and political strategies, it seems
  more and more unlikely that the script developed by
  Fidesz will ever come together by the 1998 elections. That is, an
  MDF-KDNP-Fidesz alliance will challenge both the Smallholders and the
  governing coalition.

  If the Fidesz dream does not come true, Torgyan may represent the
  strongest challenge to the current government in the next elections.
  This may be pleasant for the coalition parties, but is quite
  unfortunate for the development of Hungarian democracy.

  * * *
  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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  * * *

  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/

  * * *

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  * * *

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  Feedback is welcome.

  Rick E. Bruner, Creator <74774.2442@compuserve.com>
  Steven Carlson, Publisher <steve@isys.hu>
  Jennifer C. Brown, Editor <jbrown@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






