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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. 1.41, March 11, 1996
  =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D

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  CONTENTS

    BRIEFS

    Democratic Forum splits
    Electricity privatization wraps up with latest tender
    Finance Ministry's real estate transaction investigated
    EU task force formed
    Neo-Nazi's acquittal results in protests
    National Teacher's Union threatens strikes
    35 Hungarian policeman leave for Bosnia
    USAID plans to cut out early
    Brown & Root fires local catering company
    Germans accuse Hungarian secret service of withholding info
    Hungarians get Grammy awards

    NUMBERS CRUNCHED

    Hungarian alcoholics
    Salary raises for educators
    Public transportation revenues
    USAID spending since 1991
    Condom consumption

    FEATURE STORY

    Super neni has over 18 mouths to feed

    PARLIAMENT WATCH

    The fog lifts on center-right politics

  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.)

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  BRIEFS

  By Jennifer C. Brown
  Copyright (c) 1996

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

  Democratic Forum splits

  Some 17 moderate MPs left the former ruling opposition party
  Democratic Forum (MDF) last week to form a new party, the Hungarian
  Democratic People's Party (MDNP). The group is headed by former
  parliamentary faction leader Ivan Szabo, who was defeated by Sandor
  Lezsak in the MDF presidential election last weekend. According to
  Magyar Hirlap, the members of the new party include former foreign
  minister Geza Jeszenszky, former speaker of parliament Gyorgy Szabad,
  former privatization minister Tamas Szabo, former deputy
  parliamentary group leader Imre Konya, and Tamas Katona, the mayor of
  Budapest's first district. The MDNP plans to elect a temporary ruling
  body and will hold an inaugural congress within two or three weeks.

  The differences between the MDF and MDNP appear to be more personal
  than ideological, reports the Budapest Sun. It quoted political
  analyst Laszlo Gy. Toth as saying that the breakaway party will have
  a difficult time distinguishing itself from the MDF because of
  similar rhetoric and political ideology. Both parties have said they
  would cooperate with Fidesz and the Christian Democratic Party,
  reports the Budapest Sun. Both parties will hold talks this week on
  various items including personnel issues and parliamentary work.

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

  Electricity privatization winds up with latest tender

  A new tender to sell the Tiszai Eromu power plant will be announced
  in April following an unsuccessful attempt to privatize the plant
  last year. The company has a debt of HUF 3 billion debt and is
  considered to be unprofitable. Last year's tender garnered only three
  bids but this year, 11 companies, including German firm Steag, the
  British company PowerGen and the US investor AES and British National
  Power are among the interested bidders.

  The Tiszaujvaros-based company also owns Borsodi Energetikai Kft.,
  which runs another coal-fueled plant and a coal mine. Despite debts,
  the company's leaders are planning to invest HUF 20 billion in
  modernization, according to Napi Gazdasag.

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

  PRIME MINISTER GYULA HORN HAS ORDERED AN INVESTIGATION into the sale
  of a building on Szechenyi rakpart. Apparently, former Finance
  Minister Lajos Bokros told the Ministry of Finance to purchased the
  building for HUF 850 million from Budapest Bank for the State
  Development Institute. The institute shut its doors 10 days after the
  deal was closed on Feb. 29.

  PRIME MINISTER GYULA HORN HAS RECENTLY FORMED A SPECIAL European
  Union task force. The 20-member panel will work out a schedule for
  Hungary's integration into the EU and other western organizations.
  Hungary applied for EU membership in April 1994 but until now, there
  has been a lack of long-term planning, reports the Budapest Sun.

  NEO-NAZI ALBERT SZABO AND FIVE OTHER DEFENDANTS WERE LET OFF on
  charges of incitement and the use of fascist symbols, writes Magyar
  Hirlap. Szabo told Hungarian TV that no Jews were shot and thrown
  into the Danube by Hungarian Nazis in the winter of 1944. The High
  Court ruled that Szabo was not inciting hatred toward Jews with that
  statement. The Hungarian Zionist Federation and the Federation of
  Hungarian Jewish Faith Communities organized a demonstration this
  weekend to protest the acquittal and to mourn those killed in the
  suicide bombing in Israel.

  THE NATIONAL TEACHER'S UNION THREATENED TO PROTEST PLANS by the local
  governments in Debrecen and Szeged to lay off teachers. The union
  said it would call off the strikes if no lay-offs occur this year.
  The local government in Szeged agreed to assess the situation of each
  school individually before making any cuts, reports the Budapest Sun.


  HUNGARY WILL CONTRIBUTE 35 POLICEMEN TO THE UNITED NATION'S police
  contingent in Bosnia this week, reports the Budapest Sun. The mission
  will cost Hungary US$30 million from the state budget.

  THE U.S. AGENCY FOR INTERNATIONAL DEVELOP IS PHASING OUT ITS projects
  in Hungary and is expected to end its mission here by decade's end.
  The speed of progress made by Hungary was sited as the reason for
  leaving the country earlier than expected. AID is expected to spend
  US$ 15 million to US$ 20 million a year over the next three to five
  years. The organization plans to shift its focus from macro-economic
  advisory projects to local governments and non-governmental
  organizations.

  BROWN AND ROOT SERVICES CORP., PROVIDER OF GOODS AND SERVICES to the
  IFOR mission in the Kaposvar area has canceled its contract with
  local catering company Somogyi Korona Rt. Brown and Root said the
  Hungarian employees were stealing food from the mess hall's kitchen,
  the Budapest Week writes. One local newspaper, however, reports that
  Hungarians think the company just used the thefts as a convenient
  excuse to can the company.

  HUNGARIAN AUTHORITIES WERE ACCUSED BY GERMAN PROSECUTOR Detlev Mehlis
  of hindering attempts to gather information on international
  terrorists Johannes Weinrich and Carlos the Jackal, according to the
  Budapest Week. Carlos the Jackal stayed in Hungary occasionally with
  the consent of the Hungarian government during the 1970's and 1980's.
  Hungarian authorities say they have cooperated with the German
  authorities but are unwilling to say what data the secret service has
  in its possession.

  TWO HUNGARIANS FAIRED WELL AT THE GRAMMY'S LAST WEEK.  Belgian band
  Deep Forest, which featured popular folk singer Marta Sebestyen on
  its latest recording, won a Grammy in the world music category at the
  38th annual Awards Gala last week in Los Angeles, reports the
  Budapest Week. Hungarian pianist and conductor Gyorgy Solti, a
  22-time Grammy winner, received a lifetime achievement award .

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

  * Percentage of Hungarians who are alcoholics (The Statistical
  Yearbook of the World Health Organization): 10%

  *  Average salary raise of education employees last year (The
  Budapest Week): 6%

  *  Anticipated revenues of the Budapest Transportation Company this
  year (BKV): Ft 12.9 billion.

  *  The U.S. Agency for International Development spending in Hungary
  since 1991 (The Budapest Week): $220 million

  *  Condom consumption in Hungary (Lifestyles Condoms): less than 1
  times the population

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

  March 1, 1996 (National Bank of Hungary)

  US dollar -   145.9 (buying), 147.3 (selling)
  Deutschemark - 98.3 (buying), 99.3 (selling)

  ------------
  WACKY AS USUAL

  Slipping through the cracks

  Hungary is witnessing its slickest criminal ever. Last week, an
  unidentified man managed to break into the National Security
  Authority building in downtown Budapest, the country's most heavily
  protected buildings. He knifed one security guard and got away even
  after the other security guards closed the building. According
  Nepszava, the man was captured but managed to somehow escape. No
  witnesses were able to identify him besides the wounded security
  guard.

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  FEATURE STORY

  Eighteen kids, just one mom

  Anna Nemes's wallet is crammed with photos, snapshots of the 30
  children she has raised over the last 25 years. Amazingly, 18 of
  those, age 8 to 24, are still under her roof. They live in six
  dormitory-style rooms in her narrow, two story house in Budapest's
  District XXII. She is 49, and already, her hair is white. Getting the
  family ready for the day is a systematic process. "I get up at 5: 30
  to make breakfast. Every morning I need six liters of milk and four
  kilos of bread. Then I wake some of the children at six, the others
  15 minutes later so that each of them can go to the bathroom in
  rotation."

  Early this morning, the air inside is stale. As a stream of children
  walk in procession to the toilet, they rub the sleep from their eyes
  and quietly steal one by one into a makeshift dining room in the
  corridor. A buzz starts rising as thick slices of bread fill up iron
  plates. Soon, they are all speaking at the same time. "Hurry up,
  children!" Nemes says, clapping her hands. The younger ones need a
  hand to reach their clothes on top of the wardrobe. The girls ask for
  their hair to be done. Some of the older boys try to skip school and
  need a push. By 7:30, everyone is sent away and Nemes begins the
  first of four daily loads of laundry.

  Anna Nemes' foster children are either orphans or poor, or both, from
  the countryside here in Hungary or Transylvania. Most of them have
  lived through violence and pain in their early childhood, and it
  shows in their behavior.
  "They quite often show aggression," Nemes says. "But in a way, I like
  them to quarrel. It's a good sign. If they were as good as gold, they
  would be playing an unsuitable role."
  To release their tensions, the children can easily form two soccer
  teams in the garden. "It's also real fun to play blind man's bluff
  all together," says little Jozsi. They also sing together every
  evening in the cozy living-room, led by "kedves anuyka" ("dear
  mommy").

  Although few are like Nemes, 2,000 individuals or couples open their
  doors as foster parents in Hungary. Due to the lack of funds, the
  state is looking to close many of the 110 existing institutions. the
  equation is simple: a child in an institution costs the state Ft 247,
  000 a year. A foster child costs up to Ft 69,000. Among the nearly
  23,000 abandoned children recorded by the Ministry of Welfare, 43
  percent were already entrusted to families. And according to Julia
  Blumenfeld, president of the Hungarian branch of the federation of
  Educational Communities (FICI) linked to UNESCO, the state tends to
  rely more and more on foster parents.

  "Although the number of orphans is regularly decreasing, a growing
  number of children are neglected by their parents for economic
  reasons," she says. "Facing this situation, the Welfare Ministry is
  more likely to appeal to foster parents than make funds available to
  open new centers." Nemes was 23 and already married in 1969 when she
  took in her first foster child. She was teaching Hungarian literature
  in Tatabanya, an industrial town in western Hungary. A 13-year old
  girl at the school had nowhere to live, and her aggressive behaviour
  made it difficult to find a suitable home. The young teacher wanted
  to help.

  Nemes cared for the child for three years, but heartbreak followed
  when the teenage girl and Nemes' husband ran off together, leaving
  Nemes and her two children behind.
  But the experience did not sour Nemes on taking in wayward children.
  For years, she usually kept four to six under her care. And since
  1989, she has been the official guardian of some 20 children. "Thank
  God, my own children never expressed jealousy towards them," she
  says.

  Like too many foster parents, Nemes feels she can't refuse to welcome
  another child, expecially when the newcomer is the brother or sister
  of a child already under her roof.
  Lajos Krizsovensky is the vice-president of the Child Protection
  Institute (GYIVI) for Pest County and oversees Nemes's file. Although
  he has a high opinion of her, he thinks such a family is too large.
  The ideal foster family would have only three or five children, he
  says. In fact, a family cannot legally take in more than five foster
  children at a time. But Nemes has not been challenged. "We close our
  eyes and don't bother her. After all, she chose her  way of life,"
  says Krizsovensky.

  Nemes, like any other foster parent in Pest county, receives a
  monthly salary of Ft 18,000. With additional per child benefits from
  the state, her monthly income amounts to Ft 120,000. But his, she
  says, is barely enough to feed the children. She is glad they
  regularly get meat at their school's dining hall. The evening dinner
  immutably consists of bread with margarine.
  "Every year, at the beginning of school terms, we go through tough
  times," she says. "I have to pay more than three times a month's
  salary for books and supplies. For example, a box of colored pencils
  doesn't last more than two days. The children hand them around, play
  with them and soon, there's nothing left."

  Despite such trying circumstances, specialists believe entrusting
  children to foster families is better than leaving them in
  orphanages. Such institutions, according to Blumenfeld, are not bad.
  "The Communists used to treat the orphans very well. Institutions are
  of human size, with no more than 80 children. Some of the houses even
  have beautiful furniture that the average Hungarian could never
  afford", she says. But still, she adds, nothing compares to the care
  of a family, "as modest as it could be."

  Moreover, studies show foster children fare better than children
  raised in institutions. Nemes is pround to say every child she has
  raised so far has received a secondary school diploma. Among them are
  an engineer, several teachers and an opera singer. But not all foster
  parents make their children study and play music every afternoon as
  Nemes does. "I fear that more and more families foster children only
  for the money," says Blumenfeld. "It often concerns poor workers or
  unemployed people with a low level of education. Some foster children
  have heard their parents talking about them in terms of a 'source of
  income.'"

  According to psychologists Judit Cseres, this "Cinderella phenomenon"
  proves the family selection has failings. "To become a teacher of
  mathematics, one has to shows diplomas. it should be the same for
  foster parents. They need more training in order to become more
  'professional,'" she says. Anna Nemes simply wants to spend the rest
  of her life raising children. Despite the daily struggle, she keeps
  smiling. She only worries about what would happen to the children if
  she died. "I wish an official of the Child protection Institute would
  be able to answer this question."
  Until then, she goes to mass every day and prays.


  Strict legislation makes adoption difficult for foreigners

  "Adoption in Hungary? For that, there must be orphans!" says J=F9lia
  Blumenfeld, president of the Hungarian branch of the Federation of
  Educative Communities (FICI).

  Like most of the Western European countries, Hungary has far more
  potential adoptive parents than orphans. Although more and more
  children are neglected by their parents, less than 1000 are "real"
  orphans likely to be adopted. And only 60 to 100 underprivileged
  children are adopted every year in Hungary. The Hungarian legislation
  doesn't help, says Blumenfeld: "Candidates for adoption must go to
  their regional Child Protection Institute (GYIVI).

  After they have filled in an application form, a commitee board
  starts investigating. According to the law, a couple can't adopt a
  child without the written authorization of the natural parents. Thus
  the commitee has to make sure the child's parents are either dead or
  that they accept to renounce him. They also check whether the
  parents-to-be are seriously motivated or not. It usually takes 3 or 4
  years to brief the case."

  Sometimes one or both natural parents are known to be still alive but
  unreachable. The case is then brought into court and the whole
  process lasts longer. After a few years, the couple is eventually
  introduced to a child. But as a large number of abandoned children
  are Gypsies, parents often change their mind. They aren't keen to
  adopt a disabled child either. And as soon as the candidates for
  adoption refuse a child, everything has to start from scratch.

  The situation is ever more difficult for foreigners willing to adopt
  a Hungarian child . "It's almost impossible," states Blumenfeld. "A
  couple from abroad can only be introduced to a child who has been
  previously refused by two or three Hungarian candidates. And, of
  course, there is every chance the child has some serious physical or
  psychological problems. That's why foreigners prefer turn towards
  Russia where the lack of legislation favours adoption of local
  orphans."

                                * * *
  Emmanuelle Richard is a freelance journalist based in Budapest who
  works for French Radio and contributes to The European.

  =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
  Parliament Watch

  The fog lifts on opposition politics

  By Tibor Vidos
  Copyright (c) 1996

  Seven instead of six parties will be represented in Parliament
  following the split of the Hungarian Democratic Forum (MDF) last
  weekend. 15 MDF parliamentarians led by Ivan Szabo left the party
  and formed the Hungarian Democratic People's Party (MDNP) after the
  election of Sandor Lezsak as President of the MDF.

  This is the third time a parliamentary party has splintered since the
  first democratic election in 1990, though it is the first time an
  opposition party has broken up. During the previous parliamentary
  cycle the Smallholders party fragmented into a bigger parliamentary group.
  That party stayed in government but it had no control over the roots of
  the party and a smaller faction led by Jozsef Torgyan the
  current Smallholder Leader. The Hungarian Truth and Life Party led by
  Istvan Csurka broke away from the then governing MDF after a
  prolonged series of embarrassing extreme right wing statements made
  by him.

  The current conflict is significantly different from the previous two
  not only because the MDF is in opposition this time but also because
  the division happened along clearly definable ideological lines and
  because it may result in significant changes in the overall political
  map of the country. Ivan Szabo and his group represent a moderate
  Western European right wing tradition while the majority of the MDF
  leaders, who stayed with Lezsak, could be considered as further to
  the right not alien to populist and nationalist ideas. A scandal at
  the Convention illustrates this neatly. Former Speaker of the House Gyorgy
  Szabad was driven from the speakers' stand by wooing and shouting
  anti-Semitic statements.

  The motion to apologize for Mr. Szabad was rejected by the
  convention with Mr. Lezsak abstaining. The exact wording of the
  anti-Semitic remarks have, unfortunately, not been reported by anyone
  to the press. What are the consequences of this party split other
  than the redistribution of committee memberships and other offices at
  Parliament?

  Of greatest interest is of course how this latest development will
  affect the 1998 elections. If properly organized, the alliance or
  even the merger of Fidesz-Hungarian Civic Party and MDNP could win a
  significant portion of the moderate conservative vote, pushing MDF
  closer to the Smallholders and thus splitting the extreme right and
  populist protest vote. The center-right alliance could also push the
  Free Democrats further to the left, making it more difficult for the
  liberal party to prove its characteristic difference from its
  coalition partner, the Hungarian Socialist Party.

  The major "if" in these speculation is the ability of Fidesz and MDNP
  to organize a functioning party machinery and grass root
  organization. Without these both parties run the risk of not reaching
  the 5 percent threshold in 1998 and consequently dropping out of
  Parliament. A party organization that could successfully manage and
  organize an election campaign on the other hand could lead to the
  establishment of a conservative pole in Hungarian politics that could
  serve as a viable alternative to the current government. It could
  only have the  eventual chance of being elected to office only from 2002.
  But the fog is lifting.


                                                        * * *
  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.

  =3D=3D=3D=3D=3D=3D=3D
  Ooops!

  U.S. companies have purchased a total of 34 companies worth a total
  of US$ 14.3 bilion, not US$ 143 billion.

  =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
  FINAL BLURB

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                                                                * * *

  Back issues of The Hungary Report are available on the World-Wide Web
      http://www.isys.hu/hrep/

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      ftp://ftp.isys.hu/pub/hrep/

                                                                * * *

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  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
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  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).

  =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
  END TRANSMISSION






