OMRI DAILY DIGEST
No. 228, 22 November 1995

NOTE TO READERS: DUE TO THE OBSERVANCE OF A U.S. HOLIDAY, THE OMRI
DAILY DIGEST WILL NOT APPEAR ON 23 OR 24 NOVEMBER 1995.

SLOVAK COALITION RESPONDS TO EUROPEAN PARLIAMENT'S RESOLUTION. Slovak
National Party deputy Jozef Prokes on 21 November proposed that the
Slovak parliament approve a response to the European parliament's recent
resolution (see OMRI Daily Digest, 17 November 1995). However, the
opposition refused to cooperate and walked out of the parliament, Sme
reported. Because less than half of all deputies remained, the vote
could not take place. Nevertheless, the coalition deputies approved a
common declaration criticizing the European parliament for not using all
possible means of dialogue available between the EU and associated
countries. The coalition also complained that the European Parliament
addressed the Slovak government while ignoring the democratically
elected parliament. In other news, deputies from Slovakia's ethnic
Hungarian coalition on 21 November asked President Michal Kovac not to
sign the controversial language bill. -- Sharon Fisher

HUNGARY TO PROVIDE NATO SUPPLY BASE FOR BOSNIA. Hungarian Defense
Ministry and NATO officials are considering establishing a supply base
for NATO peacekeeping forces on Hungarian territory, international and
Hungarian media reported on 20 November. Hungarian Defense Minister
Gyorgy Keleti said "Hungary is ready to help implement what is to be
agreed on at peace talks." He added, however, that the UN Security
Council must first grant a mandate for peacekeeping in Bosnia. Forty
U.S. experts have visited Hungary this week to examine facilities and
sites in the south of the country where troops could be stationed
initially before moving into Bosnia. They are considering establishing a
military logistics base for peacekeeping troops in Bosnia and arranging
the passage of U.S. troops through Hungary. Foreign Ministry Political
State Secretary Istvan Szent-Ivanyi said Hungary could have NATO forces
on its territory in the second half of December. -- Zsofia Szilagyi

ROMANIAN PARLIAMENT REJECTS NEW PENAL CODE. Radio Bucharest announced on
21 November that the Chamber of Deputies has rejected the draft law on
the modification and completion of the Penal Code. Results of the vote
will be announced on 23 November, but "private parliamentary sources"
were quoted as saying that the Greater Romania Party (which recently
left the ruling coalition) and the Socialist Labor Party (a member of
the government alliance) voted against the draft, together with the
opposition National Peasant Party-Christian Democratic and the Hungarian
Democratic Federation of Romania. -- Michael Shafir

THREE BULGARIANS INDICTED OVER DEATH OF TAMILS. Western media report
that three Bulgarians have been indicted for the death of 18 Tamil
refugees. The Tamils were found in an abandoned Bulgarian-registered
truck near the Hungarian town of Gyor on 15 July (see OMRI Daily Digest,
17 and 20 July 1995). Among the three indicted is the the driver of the
truck, who is accused of multiple homicide. If convicted, he faces up to
15 years in prison. The other two accused were indicted for illegally
moving people across international borders. They were released on bail.
-- Stefan Krause

[As of 12:00 CET]

Compiled by Jan Cleave


N E W S L E T T E R

from the Daily Bulletin of the Hungarian News Agency MTI
distributed by the Department for Press and International Information
Ministry of Foreign Affairs, Republic of Hungary

H-1394, Budapest P.O.B. 423.
Telephone: 36 (1) 156-8000
Telefax: 36 (1) 156-3801
No. 217.                                                21. November 1995

Minorities' Elections - Preliminary Results

        Budapest, November 20 - According to the preliminary results of
Sunday's minorities' local government elections, the elections were
valid in 138 out of the 172 minority local governments elected in 156
towns and villages, including 13 districts in Budapest.
        Of the 2.5 million eligible voters, more than 40,000 went to
the polls, which corresponds to a turnout of 1.73 per cent. Eleven
national and ethnic minorities entered a total of 1,051 candidates.
        For the election to be valid, candidates had to receive mor
than 100 valid votes in settlements with over 10,000 inhabitants, but
only 50 in small villages.
        In accordance with the law, 3-member local governments were
elected in villages with fewer than 1,300 inhabitants and 5-member
ones in larger villages.
        As a result of Sunday's elections, 61 local governments can be
set up by Gypsies, 38 by Germans, 13 by Slovaks, 7 by Armenians, 6 by
Croats, 5 by Poles, 4 by Greeks, 2 by Bulgarians, and 1 each by
Romanians and Slovenians.
        This time, the Serbs and the Ukrainians did not enter
candidates, while the election for the single Ruthenian local
government was invalid. Of the elections held in 13 Budapest
districts, only that of the Armenians in the 9th district was
invalid.

Horn To Set Up Economic Working Group

        Budapest, November 20 - "The economic working group of the
Prime Minister's Office could be up and running before the end of
this year, but it will not compete with any ministry," Prime Minister
Gyula Horn said in an interview with the economic daily
"Vilaggazdasag", published on Monday.
        The centre of decision-making on economic policy is the
government, while the other bodies, among them the economic cabinet,
cannot make decisions, only take positions, Horn said. This practice
will not be changed in the future, but it seems desirable to
strengthen professional control over important reports submitted to
the government. The economic policy group could provide information
about the likely effects of various decisions by making background
studies. It could also make alternative proposals, the prime minister
said.
        Discussing the use of the German credit, which has swelled to
DM 1.3 billion with the offer made by the North-Rhine Westphalian
government, Horn noted that negotiations had started on the projects
to be funded by the loan. The government has approved DM 110 million
for the land records programme, which will be funded by the Bavarian
contribution to the loan as it involves the participation of Bavarian
companies.
        The other package of programmes is designed to support small
and medium-sized enterprises. As a result of recent talks in Budapest
with delegates from the German Chancellor's Office, the northeastern
counties, mainly Szabolcs-Szatmar-Bereg, will receive special support
for greenfield projects.
        The German loan may also be used to develop road and rail links
in and around the East Hungarian border station of Zahony, Horn said.
        Industrial parks have also attracted great interest. Feasible
projects will receive financial help, since foreign investors highly
appreciate the efforts aimed at financial stabilization.

Slovak Language Law Contravenes Treaty

        Budapest, November 20 - "All Hungarian parliamentary" parties
basically agree that the Slovak language law runs counter to the
Hungarian-Slovak basic treaty, contradicts European norms on human
and minorities' rights, and is incompatible with the international
documents signed by Slovakia. This creates an appropriate basis for
the six parliamentary parties to reach a consensus on the matter,"
Hungarian foreign affairs spokesman Gabor Szentivanyi told reporters
on Monday.
        Szentivanyi said the sharp responses made by certain Slovak
politicians to the statement by the Hungarian government were "very
strange" since "the law was passed in Bratislava and not in
Budapest". Hungary's opinion can in no way be regarded as intervening
in its neighbour's internal affairs because the government only
mentioned undertakings that must be made by all countries applying to
join the European Union, he said. The statement did not reflect a
desire for confrontation, but rather stressed the government's
continued readiness to build bilateral links in the spirit of the
basic treaty and urged further dialogue, Szentivanyi added.
        The spokesman said Foreign Minister Laszlo Kovacs, Chairman-in-
Office of the Organization for Security and Cooperation in Europe
(OSCE) would leave for Brussels, on Wednesday, to inform the members
of the North Atlantic Council on the OSCE's work, its possible role
in a settlement of the crisis in former Yugoslavia, and its
cooperation with NATO. Kovacs will also visit NATO's European
headquarters.

Horn on Ties with Slovakia - Parliament

        Budapest, November 20 - To be resolute over the Slovak language
law, the Hungarian government will write to heads of government and
state who welcomed the Hungarian-Slovak basic treaty at the Paris
conference on stability, Hungarian Prime Minister Gyula Horn said at
the start of the Monday plenary session of Parliament.
        Attending a session of Parliament's Foreign Affairs Committee
in the morning, the prime minister replied to MPs' questions relating
to Hungary's ties with neighbouring countries.
At a plenary session later, Horn said the Slovak Parliament passing
its language law last week badly damaged otherwise recently good
Hungarian-Slovak ties. Horn defended the Hungarian-Slovak basic
treaty which he said had been a good basis for bilateral relations
and reflected European norms. The PM felt that, approving the law,
the Slovak Parliament had been swayed by domestic politics.
        "The government will inform the European Union, NATO, and the
Council of Europe, and ask the OSCE high commissioner on national
minorities to examine the situation. It will also appeal to leaders
and governments who welcomed the basic treaty signing during the
Paris conference on stability," Horn promised.
Finally Horn called on all politicians to avoid hysteria.

        Parliament - Opposition Reacts to Horn's Address

        Budapest, November 20 - After an address by Prime Minister
Gyula Horn, Gyorgy Csoti of the opposition Hungarian Democratic Forum
said the Slovak language law showed Hungarian foreign policy to be a
fiasco. "The HDF believes that concluding the Hungarian-Slovak basic
treaty was a mere trick by which the two sides wanted to delude the
international public," Csoti said.
        Jozsef Torgyan, Chairman of the Independent Smallholders'
Party, recalled that his party had been the only one to flatly reject
the basic treaty. He blamed Horn and Foreign Minister Laszlo Kovacs
for the worsening situation of the Hungarian minorities. "The
betrayal of the Hungarian nation means in Slovakia one no longer has
the right to receive the last rites in Hungarian," Torgyan said. The
ISP chairman demanded the government resign.
        Laszlo Surjan (Christian Democratic People's Party) raised the
question whether the basic treaty could still be said to be valid.
        Zoltan Pokorni (Federation of Young Democrats - Hungarian Civic
Party) said ethnic Hungarians in Slovakia must be even more
disappointed after the prime minister+s speech because they must hear
that the government's policy could not be changed. "We fear the
Hungarian government sees protesting in international forums as a way
of shirking its responsibilities," he said.
        In reply, Horn said Hungary should not start on confrontations
which would harm Hungarian minorities. The prime minister concluded
once again emphasising the need for six-party consensus.

East European Privatisation Ministers' Meeting

        Budapest, November 20 - The privatisation ministers of the East
European countries held their first ever exchange of views and
experiences in Budapest today, Viktor Polgar, spokesman of the
Hungarian Privatisation and State Holding Company, told reporters.
        This meeting tackled general issues but the next one to be held
in Moscow in May will focus on concrete issues like privatisation of
farming units, food processors, and banks, he explained.
        The ministers agreed on the need to speed up privatisation, and
institutionalise exchange of information. The Hungarian and Russian
privatisation agencies will start preparations for regular exchanges
of information, the spokesman announced.
        Czech minister Jiri Skalicky said privatisation would continue
for some years in each country. "The imminent end of Czech mass
privatisation does not mean all state assets are now in private
hands. The private sector already contributes 70 per cent of Czech
GDP but reaching the ratio of 90 per cent will take another four to
five years," Skalicky said.


Wednesday, 22 November1995
Volume 2, Issue 228


BUSINESS NEWS
-------------

        **HUNGARIAN OIL OFFERING**
        A share offering for Hungarian oil refiner and distributor MOL
        has been priced at about eight dollars per share.  That's
        according to Lazard Capital Markets, one of the offering's
        joint global co-ordinators.  The share price is at the bottom
        end of the range indicated by joint global co-ordinators
        Kleinwort Benson, Lazard Capital Markets and Merrill Lynch on
        31 October.  The issue has been cut back to 18 and a half
        million shares.  The Hungarian state property agency APV had
        been planning to sell about 24 and a half million shares, or
        25 percent, of the company in an international offering.
        The international sale will be followed by the sale of almost
        three million shares to domestic investors.  That's about
        three percent of the share capital.  The shares will be listed
        on the Budapest, Luxembourg and London stock exchanges.

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OMRI DAILY DIGEST
No. 228, 22 November 1995

NOTE TO READERS: DUE TO THE OBSERVANCE OF A U.S. HOLIDAY, THE OMRI
DAILY DIGEST WILL NOT APPEAR ON 23 OR 24 NOVEMBER 1995.

SLOVAK COALITION RESPONDS TO EUROPEAN PARLIAMENT'S RESOLUTION. Slovak
National Party deputy Jozef Prokes on 21 November proposed that the
Slovak parliament approve a response to the European parliament's recent
resolution (see OMRI Daily Digest, 17 November 1995). However, the
opposition refused to cooperate and walked out of the parliament, Sme
reported. Because less than half of all deputies remained, the vote
could not take place. Nevertheless, the coalition deputies approved a
common declaration criticizing the European parliament for not using all
possible means of dialogue available between the EU and associated
countries. The coalition also complained that the European Parliament
addressed the Slovak government while ignoring the democratically
elected parliament. In other news, deputies from Slovakia's ethnic
Hungarian coalition on 21 November asked President Michal Kovac not to
sign the controversial language bill. -- Sharon Fisher

HUNGARY TO PROVIDE NATO SUPPLY BASE FOR BOSNIA. Hungarian Defense
Ministry and NATO officials are considering establishing a supply base
for NATO peacekeeping forces on Hungarian territory, international and
Hungarian media reported on 20 November. Hungarian Defense Minister
Gyorgy Keleti said "Hungary is ready to help implement what is to be
agreed on at peace talks." He added, however, that the UN Security
Council must first grant a mandate for peacekeeping in Bosnia. Forty
U.S. experts have visited Hungary this week to examine facilities and
sites in the south of the country where troops could be stationed
initially before moving into Bosnia. They are considering establishing a
military logistics base for peacekeeping troops in Bosnia and arranging
the passage of U.S. troops through Hungary. Foreign Ministry Political
State Secretary Istvan Szent-Ivanyi said Hungary could have NATO forces
on its territory in the second half of December. -- Zsofia Szilagyi

ROMANIAN PARLIAMENT REJECTS NEW PENAL CODE. Radio Bucharest announced on
21 November that the Chamber of Deputies has rejected the draft law on
the modification and completion of the Penal Code. Results of the vote
will be announced on 23 November, but "private parliamentary sources"
were quoted as saying that the Greater Romania Party (which recently
left the ruling coalition) and the Socialist Labor Party (a member of
the government alliance) voted against the draft, together with the
opposition National Peasant Party-Christian Democratic and the Hungarian
Democratic Federation of Romania. -- Michael Shafir

THREE BULGARIANS INDICTED OVER DEATH OF TAMILS. Western media report
that three Bulgarians have been indicted for the death of 18 Tamil
refugees. The Tamils were found in an abandoned Bulgarian-registered
truck near the Hungarian town of Gyor on 15 July (see OMRI Daily Digest,
17 and 20 July 1995). Among the three indicted is the the driver of the
truck, who is accused of multiple homicide. If convicted, he faces up to
15 years in prison. The other two accused were indicted for illegally
moving people across international borders. They were released on bail.
-- Stefan Krause

[As of 12:00 CET]

Compiled by Jan Cleave