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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. 1.42, March 18, 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.

  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

    IMF loan gives nod to Hungary
    Protests mark March 15 anniversary
    U.S. State Department reviews Hungary's human rights record
    Horn designs blueprint to curb black market
    Hate crime law gets stronger
    Slovak territory reorganization worries Hungarian lawmakers
    Military plans cut backs
    Hungarian woman to be evaluated in the flesh

    NUMBERS CRUNCHED

    Hungarians favoring NATO membership
    Rise in consumer prices in February
    Drug addicts under treatment in Budapest
    The age of a typical Hungarian car
    Surplus revenues from tourism in 1995

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

    Hungarian newspapers misread the fine print

    FEATURE STORY

    Life gets tougher on Budapest's streets

    PARLIAMENT WATCH

  Sorry, no Parliament Watch this week!

  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

  Protests mark March 15 anniversary

  Hungary celebrated its 148th anniversary of the Hungarian revolution
  against Habsburg rule on Friday amidst several anti-government
  rallies and protests staged by opposition parties. On Thursday night
  the largest opposition party, the Smallholders staged a "Good-bye to
  Government" rally, in which a petition drive was initiated to unseat
  the current government coalition, reports Magyar Hirlap. Prime
  Minister Gyula Horn on Friday accused Smallholder leader Jozsef
  Torgyan of inciting hatred following a speech in which he described
  Horn's government as "pseudo-liberal disgusting worms and vultures."

  Also airing his views was Istvan Csurka, the leader of the far-right
  Hungarian Justice and Life Party. An estimated 12,000 came to
  Szabadsag square Friday afternoon to listen to him read out a
  12-point petition calling for the resignation of the
  government. Csurka also warned of a mass migration of Israeli Jews
  into Hungary, calling them "persons jaded by Middle East tension."
  Recently-acquitted Fascist skinhead Albert Szabo, along with other
  skinhead supporters, mounted the stage and allegedly smashed an
  amplifier with crowbars.
  President Arpad Gonz, spoke publicly on the demonstrations, said the
  demonstrations cast a dark pallor on the commemorations. The two
  governing parties may take action against the Smallholders for
  Torgyan's inflammatory speech, reported Nepszabadsag.

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

  IMF loan granted to Hungary

  The International Monetary Fund approved a two-year USD 387 million
  standby loan Friday, opening the way for Hungary's admittance into
  the Organization for Economic Cooperation and Development (OECD),
  reports the Budapest Business Journal. Membership in the OECD is also
  viewed as an important step toward membership in the European Union.
  Securing the loan depended on keeping the 1996 social security funds'
  deficit under HUF 17.8 billion and the national deficit under 4%. The
  Parliament passed the social security fund budget last week,
  allotting HUF 700 million for home medical treatment and HUF 700
  million for preventative care.

  In an interview with the radio program Central European Media,
  chairman of Parliament's Economic Committee Tardos Marton said
  Hungary may have difficulties adhering to IMF loan requirements, such
  as a 1.2% monthly forint devaluation, a decrease in inflation to 20%
  and an introduction of market prices in the energy sector by 1997.
  The IMF loan isn't expected to be actually spent but rather, is
  considered to be a strong sign of the international community's
  confidence in Hungary's economic development.

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

  A U.S. STATE DEPARTMENT REPORT REPORTS THAT HUNGARY could do better
  in some areas of human rights. The examples given by the report were
  the treatment of gypsies and the fact that prosecutors can initiate
  arrests before trials. The report stated that there were few
  incidences of anti-semitism last year aside from graffiti and Hungary
  general respects basic civil and political rights.

  PRIME MINISTER GYULA HORN HAS INITIATED A SIX-STEP PLAN TO beat the
  black market. The Prime Minister's office plans to create central
  investigation bureau to deal with economic crime staffed with 50 to
  60 legal and financial experts. Other steps include separating the
  state administration from the business sector, halting double
  ownership of banks, increasing the internal control of the ministries
  and creating a separate court to deal with economic crimes.

  PARLIAMENT PASSED LEGISLATION TO PUT MORE MUSCLE INTO punishing hate
  crimes by defining what constitutes a hate crime or a racist attack,
  reports the Budapest Sun. The bill, originally proposed two years
  ago, was passed following the acquittal of far-right skinhead Albert
  Szabo, who has been charged of inciting hatred towards Jews twice.

  YOUNG DEMOCRAT ZSOLT NEMETH CALLED THE REORGANIZATION OF electoral
  districts in Slovakia a mild form of ethnic cleansing. He said the 75
  sub-districts planned will make up 75 electorate constituencies, thus
  allowing for fewer Hungarian MPs in the Slovak parliament, reports
  Nepszabadsag. Foreign Ministry state secretary Istvan Szent-Ivanyi
  said he's anxious to have the Slovak-Hungarian basic treaty ratified
  because it would ban the reorganization. The Slovak parliament will
  begin a debate on the Hungarian-Slovak basic treaty March 26,
  according to Magyar Nemzet.

  SOME 11,000 FEWER SOLDIERS WILL SERVE IN THE HUNGARIAN army by the
  end of the year, announced Lt. Gen. Sandor Nemeth, chief of staff of
  the Hungarian Armed Forces last week. The total number of soldiers
  will be decreased to 70,000 and 60,000 within two years, according to
  Magyar Hirlap.

  HUNGARY IS HOLDING THE FIRST ROUND OF ITS FIRST NUDE BEAUTY  contest
  in Debrecen on April 16, reports Magyar Hirlap. Some 79 contestants,
  who will receive between HUF 5,000 to HUF 10,000 for participating,
  have already signed up. The winner, to be decided in Budapest this
  fall, will win HUF 250,000. Organizer Arpad Fekete told the daily the
  contest is merely a business and will be no more offensive than legal
  pornographic magazines.

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

  * Amount of Hungarians in favor of Hungary's membership in NATO (U.S.
  Information Agency):  Two-thirds

  * Percentage rise in consumer prices in February, up from January's
  4.4% and up 28.3% from the same time last year (Central Statistical
  Office) : 2.3%

  *  Number of drug addicts undergoing treatment in Hungary (National
  Institute of Addiction): 800

  * The age of a typical Hungarian car, up from 9 years in 1990 (Car
  Importers Association): 10.9 years

  * Surplus revenues from tourism in 1995 (National Bank of Hungary):
  US$ 658.6 million

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

  March 14, 1996 (National Bank of Hungary)

  US dollar -  146.08  (buying), 147.53 (selling)
  Deutschemark- 99.21 (buying), 100.19 (selling)

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

  Hungarian newspapers misread the fine print

  Four newspapers in Hungary took an International Herald Tribune
  advertising supplement about Hungary's bright economic outlook a
  little too seriously last week, reports the Budapest Business
  Journal. Napi gazdasag, Magyar Hirlap, Vilaggazdasag and Nepszava
  summarized the article without mentioning that the article was a paid
  advertisement. Each of the editors had their own excuses for writing
  about the "positive reviews" Hungary's economy received in the
  influential international publication. Napi gazdasag's business news
  editor Sandor Rathy said he got the story from the Hungarian News
  Agency (MTI), but MTI's domestic news editor Robert Frankl pointed
  out that the news service indicated that the stories were paid
  advertisements. The supplement featured advertisements for Hungarian
  tourism and the State Privatization and Holding company. It also
  carried a story that put a serious gloss on the sale of Budapest Bank
  to General Electric Capital Services and the European Bank for
  Reconstruction and Development (EBRD), calling it a "major vote of
  international confidence in Hungary's newly revived banking sector,"
  the BBJ wrote.

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

  Life gets tougher for Budapest's homeless

  By Emmanuelle Richard

  Life on the streets is not an easy option. Bad weather, hunger and
  violent vigilantes all combine to make homelessness a dangerous
  business. In a country with rising unemployment, jobs are scarce and
  the opportunity to regain a respectable place in society is slim.

  Now a new menace is haunting Hungary's estimated 50,000 homeless.
  Networks of racketeers are forcing them to pay "protection" money and
  pass on their earnings from begging and street jobs, social workers
  say. If the homeless, many of whom are burdened with criminal record,
  refuse to cooperate, they are cajoled or even beaten. If they agree
  to the villains' demands they find themselves embroiled in illegal
  schemes than can land them in prison.

  One scheme is to use the homeless to give out fake parking tickets at
  an improvised car park. This scam is particularly lucrative near lake
  Balaton in the summer, where unwitting German are often the target.
  Others are less subtle. Social workers working at homeless shelters
  speak of permanent racket of beggars in the Castle District which
  uses homeless people to beg for money which is then handed over to
  the mafia.

  Attila Gaspar from Delta, a group of ambulance drivers who help
  people without shelter, said many of his patients claim the district
  is run by a Romanian "godfather". They say a newcomer to the Castle
  District can't beg freely for long. The Romanian's thugs force the
  beggar to hand over earnings or move on. In summer-time homeless
  people are sometimes brought from Romania. Their "boss" provides the
  food. They give him their collection. "According to our workers on
  the street, 20 percent of the 20,000 homeless in Budapest are flanked
  by a pimp," says Gyorgy Mezei, president of the Olivier Twist
  foundation. "Without a so-called "minder", they stand every chance to
  be robbed and beaten."

  Although police they are not aware of the emergence of such a mafia,
  according to people living on the street, avoiding the tentacles of
  this emerging "street mob" is becoming more difficult. Dezso, 54, who
  has been living on the street with a broken arm for months said,
  "Staying independent requires a strength that we simply don't have.
  Hunger, cold and alcohol all weaken you so much that you are not able
  to act on your own initiative. You meet bad people and fall into the
  trap."

  The homeless as well as social workers say these lawbreakers are
  largely foreigners, often Romanians or Ukrainians. Mezei said a
  majority of this "homeless mafia" is composed of lower-class Gypsy
  swindlers. "Hungary has become a little America," said Mihaly, a
  homeless person living at Nyugati railway station, referring to
  Budapest's emerging rackets. Mihaly speaks of "certain circles" who
  manage the homeless, but is afraid to give details.

  "Speaking out is rather tough, for the homeless have nobody to speak
  to" explained Eva Kiss, head of the Department of Social Affairs at
  the Budapest's city hall. "They don't dare to talk to our social
  workers and even less to the police," she said. Even when the odd
  policeman is prepared to make an effort to help the homeless, winning
  their confidence is not easy. Istvan Kapusi, a detective at
  Budapest's District I, co-operated with a snack bar to arrange
  regular handouts of pastries to the dozen permanent homeless people
  living in the station. He also used to offer cigarettes but his
  attempts at conversation didn't bear fruit.

  Mezi says that social workers working with the homeless have tried to
  encourage homeless people to work and, for example, sell newspapers
  in the streets by the traffic lights. They turned livid and said they
  would rather stay jobless instead of getting involved in such a
  dangerous connection.
  "Hungary nowadays reminds me of the situation in Bertold Brecht's
  "Threepenny opera," said Mezei. "In the play, the paupers fall prey
  to a criminal syndicate. By the end, they are just like glove-puppets
  in the mafiosi's hands."

  How one homeless man survives

  Istvan Varro, 47, is homeless and spends his waking hours at Nyugati
  metro station. Known as "Istvan the King", he is fiercely independent
  and does not allow profiteers to approach him: "I would never work
  for anyone but myself" he says, banging his hand on his chest. Istvan
  starts every working day with his crown -a cap covered up with
  various decorations including a Hungarian flag, a deodorant fir tree
  or Burger King straws. Although he only sleeps four hours on a bench
  or in a metro car, Istvan has enough energy to go to the market and
  buy dozens of snowdrops. With some ivy picked up in a square, he can
  make little bouquets that he sells until noon. "Each bouquet costs me
  HUF 20, I sell it at double the price so that I manage to make some
  HUF 800 forints daily with this business," he says.

  This is one of the latest of 36 jobs Istvan has had in his life. He
  has worked as a miner, a chimney sweep, a carpenter and a gas fitter.
  Since he was thrown out by his second wife and became homeless in
  1985, his health has deteriorated. Asthma and an injured leg prevent
  him from moving too much, so Istvan supplements his HUF 10 000
  monthly pension with less physical activities.

  Day in, day out, Istvan sets up a stand with cardboard boxes that he
  puts down in the subway. He sells anything he has collected: a bird
  shelter, half of an orange, a brand-new green pullover and a "Love
  and Hygiene" handbook. Most of these wares come from barters with
  other homeless people at Nyugati metro station. But his efforts only
  bring in loose change.

  In the afternoon, Istvan, who would make a model Father Christmas,
  sings on the escalators. He knows he can get people's attention with
  his raucous voice and they fill his plastic glass with coins. "Old
  Hungarian songs are my favorites and theirs too," he says, pointing
  to a sticker of Hungary's first king, St Stephen (Istvan), on the top
  of his cap. When in a good mood, he sings refrains from Transylvania
  to the rattling of his cane. When not, he groans, showing his bruised
  leg and parts of his black and blue body.

  "I get robbed so often," he grumbles in his beard, rummaging in a bag
  crammed with medicines and pain-killers.
  Suddenly, as if to prove this point, a bunch of teenagers appear from
  nowhere, pick up the plastic glass full of coins and escape on the
  metro. Istvan lets out a torrent of abuse. Later he explains the
  regular Nyugati station crowd steal each other all the time. Once
  they thieved his monthly pension on his way back to the post office.
  Istvan the King looks after himself. He mostly drinks orange soda and
  goes to the bathhouse once a week on a prescription of a social GP.

  He says he is resourceful enough not to get involved with dangerous
  schemes: "I was never sent to jail and I don't want to be". Istvan
  hopes his son, who is living with his former wife, will succeed in
  his studies and become an electrical engineer. As for himself, his
  dream is to become an actor like his late mother. "Look, I can
  imitate French actor Louis de Funes making faces in "Fantomas," he
  laughs as a passer-by jumps.

                               * * *
  Emmanuelle Richard is a freelance journalist who works for French
  Radio, the European and the Budapest Week.

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

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                                * * *

    For its briefs, The Hungary Report regularly consults the news
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    =================
    END TRANSMISSION







