From hungary-report-owner Mon Mar 4 12:32:05 1996 Received: from localhost (daemon@localhost) (fnord) by nando.yak.net (8.6.5/8.6.5) id MAA04057; Mon, 4 Mar 1996 12:32:05 -0800 Received: from localhost (daemon@localhost) (fnord) by nando.yak.net (8.6.5/8.6.5) id MAA04044; Mon, 4 Mar 1996 12:31:44 -0800 Received: from jbrown@isys.hu () via =-=-=-=-=-= for hungary-report@hungary.yak.net (4041) Received: from kingzog.isys.hu (KingZog.iSYS.hu [194.24.160.4]) (fnord) by nando (8.6.5/8.6.5) with ESMTP id MAA04037 for ; Mon, 4 Mar 1996 12:31:16 -0800 Received: from [194.24.161.32] (dialup-1-032.dial.isys.hu [194.24.161.32]) by kingzog.isys.hu (8.7.Beta.11/8.7.Beta.11) with SMTP id VAA21458 for ; Mon, 4 Mar 1996 21:31:00 +0100 (MET) Date: Mon, 4 Mar 1996 21:31:00 +0100 (MET) X-Sender: jbrown@mail.isys.hu Message-Id: Mime-Version: 1.0 Content-Type: text/plain; charset="us-ascii" To: hungary-report@hungary.yak.net From: jbrown@isys.hu (Jennifer Brown) Subject: The Hungary Report 1.40 Part I Sender: owner-hungary-report@hungary.yak.net Precedence: bulk Reply-To: hungary-report@hungary.yak.net ======================== The Hungary Report Direct from Budapest, every week Also available on the World Wide Web (http://www.isys.hu/hrep/) No. 1.40, March 4, 1996 ======================== 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. ALSO BY: Hungary Around the Clock, the most comprehensive daily English-language news service. On your desk by 9 am each morning. For a trial subscription, contact Kingfish Communications. Call (+36-1) 351-2440. Fax: (+36-1) 268-1462. Internet: Kingfish@dial.isys.hu ======== CONTENTS BRIEFS Medgyessy returns as finance minister New decree could restrain Matav Lezsak replaces MDF president Szabo International terrorist sought in Budapest 13 die in bus-train collision Smallholders try to oust government Court rejects NATO referendum Germans big buyers of Hungarian assets ICL and Siemens win largest ever IT contract A ghost in the machine NUMBERS CRUNCHED Private schools in Hungary, Customs violations in Hungary last year Value of consumer foreign currency savings in January Number of companies waiting to be privatized FEATURE STORY Learning to discriminate PARLIAMENT WATCH Watch for the ticking time bomb 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.) ====== BRIEFS By Jennifer C. Brown Copyright (c) 1996 ------------- GENERAL NEWS PETER MEDGYESSY WAS CHOSEN TO BE THE NEW FINANCE MINISTER LAST WEEK after winning an overwhelming approval from the ruling coalition. Medgyessy, 54, held the position of finance minister nine years ago. Some observers worry that his political ties to the old socialist vanguard may endanger the reforms outgoing finance minister Bokros set into motion, The Budapest Business Journal reports. The Budapest Sun writes that Medgyessy is considered to be committed to Bokros's reforms and his negotiating skills could help him win government approval. Bokros resigned over a lack of governmental support for his reforms, sometimes described as harsh and overly-fiscal by his opponents. Medgyessy told the budget and economic working group of the Socialist Party parliamentary group last week that he plans to slow inflation and reduce interest rates as well as cut the social security deficit. He also said he hopes to secure a loan agreement with the International Monetary Fund, writes Magyar Hirlap. Prime Minister Gyula Horn's nomination of Medgyessy was an important step in reassuring international investors and institutions that Hungary is committed to economic reform, according to the Budapest Sun --------------------- BUSINESS & ECONOMICS New law could restrain Matav A new government decree expected to take effect soon may restrain Hungarian telecommunications giant Matav from dominating the Internet market, writes the Budapest Business Journal. The draft decree allows government ministries to enforce a 1993 law regulating Matav's activities outside of its traditional telephone services. CompuServe Hungary along with other local internet providers complained in January that Matav could price others unfairly out of the market because it could subsidize its Internet service through its main telecommunications activities. The group earlier threatened to file a complaint with the Office of Economic Competition but has not yet done so. ----------- SHORT TAKES SANDOR LEZSAK WAS ELECTED PRESIDENT OF THE DEMOCRATIC FORUM (MDF) during this weekend's MDF party convention. Lezsak beat former president Ivan Szabo by 131 votes. His election caused three members of the party's eight-member presidium to resign and several candidates for the party presidium to withdraw out of protest. The MDF is the largest opposition party in Hungary. Lezsak called for cooperation between the opposition parties as an alternative to the ruling coalition and a restoration of the MDF's former center-right ideals. A SWISS PROSECUTION AUTHORITY WAS IN BUDAPEST LAST WEEK TO inquire into the whereabouts of Bruno Bruget, a friend of international terrorist Carlos the Jackel. Bruget, a Swiss citizen, was arrested in Paris in 1982. He came to Budapest last month after a stint in a Greek prison. According to Nepszabadsag, Bruget has been kidnapped Western secret services. THIRTEEN PEOPLE WERE KILLED LAST MONDAY AND OTHERS WERE INJURED after a bus headed for the southern Hungarian town of Kutas collided with a freight train at a crossing just outside the town. The train dragged the bus almost 300 meters before breaking in two and bursting into flames. Transport Ministry officials said that the crossing barrier wasn't lowered on time to prevent the bus from crossing the tracks. Police later detained the railway employee who was found to be negligent. The State Railways Co. (MAV) has given the survivors of the victims and the injured financial aid ranging from HUF 50,000 (US$ 357) to HUF 200,000 (US$ 1428). PRESIDENT OF THE SMALLHOLDERS PARTY JOZSEF TORGYAN PLANS to collect signatures calling for the resignation of the current government. If Torgyan gets more than 1,784,504 signatures, he said the government would receive a clear signal that it should give up power, reports the Budapest Week. THE CONSTITUTIONAL COURT IS NOT BACKING A PETITION BY THE WORKERS Party to hold a popular referendum on NATO membership, writes the Budapest Week. The party collected 142,000 signatures in support of a referendum. Parliament is obliged to hold a referendum when over 100,000 signatures are collected on a petition. The government and opposition parties said that a referendum is a waste of time and money because Hungary hasn't started formal talks on NATO membership yet. GERMANS ARE THE BIGGEST PURCHASERS OF HUNGARY'S ASSETS, REPORTS the Budapest Sun. Germans have purchased 98 companies worth US$ 1.7 billion, or 37% of all sold property. In comparison, U.S. companies have purchased a total of 34 companies worth a total of US$ 143 billion, 13% of all sold property. ICL HUNGARY KFT AND SIEMENS RT HAVE WON A $70 MILLION TENDER to supply information technology to Hungarian Railways (MAV), reports the Budapest Business Journal. The two companies beat other contenders IBM Hungary and Anderson Consulting. The tender was the largest information technology contract ever to be awarded in Hungary. Siemens will receive US$ 24 million to provide telecommunications equipment while ICL won a US$ 69 million contract to provide a new ticketing and financial system with software provided by Oracle Hungary. ------------------ NUMBERS CRUNCHED * Number of private schools in Hungary, up from 14 in 1990 (The Budapest Sun): 377 * Number of customs violations in Hungary last year (Economic Protection Coordination Council): 20,000 * Value of consumer foreign currency savings in January (National Bank of Hungary): $3 billion * Number of companies waiting to be privatized under the simplified privatization program (State Holding and Property Company): 2,000 -------------- EXCHANGE RATE March 1, 1996 (National Bank of Hungary) US dollar - 145.24 (buying), 146.69 (selling) Deutschemark - 98.58 (buying), 99.56 (selling) ------------ WACKY AS USUAL A ghost in the machine Is there bureaucracy in the afterlife? The Hungarian Social Security Office seemed to think so when it sent 12,000 new I.D. cards to the deceased last November. The mistake was apparently made by a brand spanking new HUF 400 million ($ 2.8 million) database that was set up in October to help issue new social security identification code numbers. The Office admitted that the database still has some glitches but gee, isn't it nice to be remembered.... END OF TRANSMISSION PART I