RFE/RL Daily Report
                   No. 231, 8 December 1994

HUNGARIAN RAIL WORKERS STRIKE. Hungarian rail workers held a
two-hour warning strike in the early morning hours of 8 December
to protest the size of proposed pay increases and threats of
lay-offs, Radio Budapest reports. They plan to stage a 36-hour
general strike next week if the government fails to meet their
demands for a 16 percent pay increase. The government says that
budgetary constraints do not allow for a pay increase of more than
6 percent. -- Edith Oltay, RFE/RL, Inc.

HUNGARIAN-KAZAKH TREATIES SIGNED. While on an official visit to
Hungary on 7 December Kazakh President Nursultan Nazarbaev and
Hungarian Prime Minister Gyula Horn signed three agreements, MTI
reports. One is a bilateral treaty, one excludes double taxation,
and the other provides for mutual protection of investments.
Nazarbaev also met with President Arpad Goncz and with Hungarian
businessmen. -- Edith Oltay, RFE/RL, Inc.

[As of 1200 CET] 

(Compiled by Pete Baumgartner and Penny Morvant)
Copyright 1994, RFE/RL, Inc. All rights reserved.

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LASZLO KOVACS
______________________________________________________________
Current
Policy          STATEMENT AT THE MEETING OF FOREIGN
MINISTERS
1994/18         OF THE CENTRAL EUROPEAN INITIATIVE
______________________________________________________________

Ministry of Foreign Affairs
Republic of Hungary
Budapest


        The following is the text of the lecture by Laszlo Kovacs, Minister for

Foreign Affairs, Republic of Hungary at the Meeting of Foreign Ministers of
the CEI. (Turin, November 19, 1994)



        Mr Chairman, Distinguished Colleagues, Ladies and Gentlemen,

        I am particularly honoured that this meeting of ours should be taking
place in the city of Turin. For there are several features in common between
the histories of Hungary and Piedmont. The most memorable, perhaps, is
that Turin was the final refuge in exile of Lajos Kossuth, the outstanding
Hungarian statesman of the last century. For Kossuth was one of the chief
advocates and supporters of the modernization of interdependent political
and social relations in 19th-century Central Europe, so that in remembering
him we honour a precursor of our present-day ideas.

        Just five years ago, Mr Chairman, Austria, Hungary, Italy and
Yugoslavia agreed to establish the Quadragonale, the forerunner of today's
CEI. The intervening period has seen historic changes and then unforeseen
tragedies and great sufferings. With the passing of the bipolar period in
Europe, the question of security has become subject to a new philosophy,
from which a response must come to the new problems generated by the
political and economic transition taking place in our region. The break-up
of Yugoslavia and the ensuing protracted warfare in parts of its former
territory, especially Bosnia-Herzegovina, have created a situation fraught
with danger. There are significant variations within the region in the way
parliamentary democracy and a market economy are being established in
practice. New challenges also appear in assessing the measures to be
taken in the transitional period, redrafting inter-state relations in line with
democratic principles, and reviewing the region's overall relations with the
Western democracies. New problems have also arisen, such as radical
nationalist tendencies, ethnic conflicts and environmental concerns.

        One can justifiably ask what role regional cooperation can play under
these circumstances, and what common denominator the nations of this
region possess.

        Over the past five years, the CEI has been constantly seeking its role
and position on the European political scene. This is not an admission. Far
from it, this is one of its merits, part of the evidence of its ability to
adapt to
new situations.
        The point of departure is that the CEI should provide a framework for
cooperation between countries of two types: those already possessed of
decades of experience under a developed market economy and a
developed system of democracy on the one hand, and those just embarking
on the road to attaining these goals on the other. Around this table sit
representatives of two member-states of the European Union, four
associate EU members and four countries with aspirations to join in
European integration. The CEI's activities in 1993 and 1994 have
accomplished a steady consolidation. Last year we managed to agree upon
the general guide-lines for the cooperation to be followed this year in order
to apply our principles in practice. I appreciate particularly the declaration
of the principle that "one of the CEI's major objectives is to foster the full
integration of its member-states into the European Union," and "the
primary tasks of the CEI are to assist member-states wishing to join the
European Union to continue domestic economic transformation and to
remove the barriers that prevent or delay their full economic integration
into the European Union..."

        This, in my view, is precisely the common objective that should
serve as a basis for the future development of the CEI. Needless to say, this
grouping of ours is not an alternative to the European Union, but it certainly
will contribute to the process of European integration through its various
forms of regional cooperation. The cooperation among the member-states
of the CEI should be founded upon the principles already applied in
European integration. In a word, I would like to underline the necessity of
developing the CEI into a system in an EU-compatible system, a non-
institutional forum of regional cooperation, so that it can further facilitate
the achievement of full EU membership by CEI member-countries.

        In the light of these CEI objectives, Mr Chairman, the forthcoming
meeting of the European Council in Essen will have particular significance.
Recent developments, notably the inclusion of the Associated Countries in
the formulation of the strategic document to serve their preparation for
membership, have given a clear signal that relations between the EU
members and the Associated Countries have entered a qualitatively new
phase.

        So what does Hungary expect of this summit meeting? In general we
expect the new EU strategy to be adopted to reflect a common political
purpose and commitment by the European Union and the Associated
Countries to broadening European integration. Important criteria for
membership include the stability of democratic institutions, the level of
overall economic development and performance, and the attainment of
harmonization in the field of law.

        We also expect the new EU strategy to bear in mind the specific,
individual situation of each Associated Country. Hungary believes that even
in the interim period leading up to full membership, cooperation should be
extended to the second and third pillars of the Maastrich Treaty, namely the
common foreign and security policy and the domestic and judicial affairs of
the EU.

        I must stress here the importance of having structured cooperation
between the European Union and the Associated Countries, especially in
the trans-European dimension. We are looking forward to the results of the
1996 Inter-Governmental Conference, to whose success Hungary, as one of
the EU's prospective members, would like to contribute. We share the
expectation that the conference will manage to enhance the Union's
capability of absorbing new members in a way that conforms with the
process of integration and the attainment of its principal objectives.

        This meeting of ours in intended to outline the role that the CEI
should play under these new circumstances.

        So far as political dialogue is concerned, we firmly believe that the
CEI has an important role to play as a consultative forum able to deal with
specific problems for our region, including the national-minorities question
and the promotion of good-neighbourly relations, and thereby contribute to
stability in a broader sense.  Our achievements will have to be preserved
and built upon further. At the same time, the CEI should ensure there is a
continual dialogue with the representatives of the EU, the Council of
Europe, the OECD and various European regional organizations.

        We are happy to note, Mr Chairman, that the CEI Working Group on
Minorities has completed its work on the Instrument for the Protection of
Minority Rights. This is a success and an expression of the joint efforts
made by the experts concerned to bridge the differences in the views and
positions taken on this very sensitive issue by individual members-states. I
am pleased to see that the document is open for signature, and I express
my own readiness to sign it at any time.

        As regards follow-up action to the CEI Instrument, I propose that we
make it open to accession by other states as well, notably the CEI's
associated countries. This would fully comply with the relevant article of
the Framework Convention, which invites "parties to conclude multilateral
agreements." This would mean, in other words, that the CEI Instrument was
being treated as a kind of means for implementing that Convention.

        We see an important measure of progress and a pragmatic advance
in our cooperation in the meeting of CEI ministers for external economic
relations which is due to be held in Skopje next March, where special
attention will be paid to the liberalization of trade, the establishment of
customs-free zones, and the role and contribution of small and medium-
sized firms.

        As far as the current projects are concerned, Hungary considers that
the building of a Trieste-Budapest-Kiev motorway should be a trans-
European project, and included in the European Union's system of Trans-
European Networks. It is essential that further initiatives be taken to
promote cooperation in the fields of energy and environmental protection,
which are areas in which the European Bank for Reconstruction and
Development is expected to play a still more active part than hitherto.

        I would like to take this opportunity of expressing thanks to the head
of the Czech delegation for his words of support for Hungary as the
incoming Chairman in Office of the CSCE. I would like to assure you that
the Hungarian Government, and myself as Foreign Minister, will do our
utmost to ensure that the CSCE is adapted to the new situation in Europe
and capable of responding to the new challenges.

        Poland, Mr Chairman, assumes the duties of Acting President of the
CEI on January 1, 1995. At this juncture, Hungary would like to present a
couple of ideas for enriching further our future activities. First, the
promotion of cross-border cooperation based on the provisions of the
Helsinki Final Act and the Council of Europe convention on trans-frontier
cooperation, and the establishment of a consultative group to this end; and
secondly, the extension of the CEI's social dimension to include
cooperation among cooperatives in the member-states.

        In conclusion, Mr Chairman, allow me to convey my sincere
acknowledgements to the Italian Presidency of my gratitude for your
inspiring activities and hospitality.


* * *


        Published by the Press and International Information Department of
the Ministry of Foreign Affairs of the Republic of Hungary, Budapest,
November 24, 1994.

        This material is in the public domain and may be reprinted without
permission; citation of this source is appreciated.

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PRESS RELEASE (94)124              7th December 1994


     NACC/PFP WORKSHOP ON MATERIEL, TECHNICAL
AND OPERATION STANDARDIZATION - 8-9 DECEMBER 1994


     A NATO Workshop with Cooperation Partners will be held
at NATO Headquarters on 8th and 9th December 1994. The
Workshop will be sponsored by NATO's senior defence
equipment body - the Conference of National Armaments
Directors - and by the Military Agency for Standardization.

     The workshop will be opened by the NATO Assistant
Secretary General for Defence Support, Mr. Robin Beard, who
has already described the event as "an important activity in
the field of defence equipment standardization and
interoperability".

     The purpose of the Workshop is to provide Partners with
a comprehensive introduction to Alliance philosophy and
approach to standardization, to include the roles and
working methods of NATO organizations active in this field.

     About 75 officials reponsible for materiel, technical
and operational standardization fron Austria, Belgium,
Bulgaria, Canada, the Czech Republic, Denmark, Estonia,
Finland, France, Germany, Hungary, Italy, Latvia, the
Netherlands, Norway, Poland, Portugal, Slovakia, Spain,
Sweden, Turkey, the United Kingdom and the United States, as
well as from SHAPE and the Partnership Coordination Cell in
Mons, will begin a dialogue on the challenges facing NATO
and Partner nations in the pursuit of interoperability
within the framework of Partnership for Peace.

     For further information, please contact Mr. A.F. van de
Grampel, NATO Defence Support Division, tel:Int'l
32-2-728.41.03.

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N  E  W  S  L  E  T  T  E  R

Republic of Hungary                             Budapest, 1394 . 423
Ministry of Foreign Affairs                     Telephone:36(1)156-8000
Press Department                                        Telefax: 36(1) 156-3801
546/1994.                                       Budapest, December 06, 1994

Press Review


        Budapest, Dec 5 (MTI) - NEPSZABADSAG: The prime minister is entitled
to initiate a reshuffle of the government at any time, but the coalition
agreement limits his options, said Ivan Peto, president of the Alliance of Free
Democrats in an interview. In his view the discharge of a Free Democrat
minister must absolutely be preceded by consultations in the coalition. (page
one)

        Magyar Nemzet: Since the new government took office, surprising
statements have been made about the basic treaties to be concluded with
Hungary's neighbours - says Gyorgy Csoti, deputy chairman of the foreign
affairs committee of Parliament in an interview with Magyar Nemzet. He added
that it degrades the foreign assessment of the country if the prime minister
and the foreign minister make ambiguous and conflicting statements. (page
seven)

        Magyar Hirlap: The constitutional process must be elevated above the
level of current politics - said Laszlo Salamon, deputy Speaker of Parliament
in
an interview with Magyar Hirlap. To this end an opportunity must be granted to
the opposition to be involved in this process which must be rendered
independent of the prevailing political conditions, he said. According to the
Hungarian Democratic Forum a constitution can be qualified as good if it is
accepted by the following parliament as well. (page five)

        Nepszava: The duties of mayors have not changed basically since the
new act on local authorities took effect, said an official from the Ministry of
the
Interior. However, the powers and mostly the salaries of mayors have
increased. (page six)

CSCE Summit - President Clinton Delivers Address


        Budapest, December 5 (MTI) - PRESIDENT Bill Clinton of the United
States delivered the following address at the CSCE summit here today:

        I am delighted to be here in this great city in Central Europe at this
historic meeting.
        The United States is committed to building a united, free and secure
Europe. We believe that goal requires a determined effort to continue to
reduce the nuclear threat, a strong NATO adapting to new challenges, a strong
CSCE working, among other things, to lead efforts to head off more Bosnias, a
strong effort at cooperating with the United Nations, and an effort by all the
nations of Europe to work together in harmony on common problems and
opportunities.

        In the 20th century conflict and distrust have ruled Europe. The steps
we are taking today will help ensure that in the 21st century peace and
prosperity reign. The forces that tore Europe apart have been defeated but
neither peace nor democracy's triumph is assured. The end of the Cold War
presents us with the opportunity to fulfil the promise of democracy and
freedom, and it is our responsibility working together to seize it, to build a
new
security framework for the era ahead.

        We must not allow the Iron Curtain to be replaced by a veil of
indifference. We must not consign new democracies to a grey zone. Instead
we seek to increase the security of all to erase the old lines without drawing
arbitrary new ones; to bolster emerging democracies, to integrate the nations
of Europe into a continent where democracy and free market know no borders
but where every nations border is secure.

* * *

        Budapest, December 5 (MTI) - Today here five of this organization's
member states, Belarus, Kazakhstan, Russia, Ukraine and the United States
will bring the START 1 treaty into force and reduce the nuclear threat that has
hung over our heads for nearly half a century. START 1 would eliminate
strategic bombers and missile launchers that carried over 9,000 warheads, and
it opens the door to prompt ratification of START 2, which will retire another
5,000 warheads. These actions will cut the arsenals of the United States and
the former Soviet Union more than 60 per cent from their Cold War peak. The
world will be a safer place as a result.

        Even as we celebrate this landmark gain for peace, the terrible conflic
t
in Bosnia rages not 300 miles from this city. After three years of conflict the
combatants remain locked in the terrible war no one can win. Now each faces
the same choice: they can perpetuate their military stand off or they can stop
spilling blood and start making peace. The government of Bosnia-Herzegovina
has made the right choice by accepting the international peace plan and
agreeing to recent calls for a cease-fire. So I say again to the Bosnian Serbs:
end the aggression, agree to the cease-fire and renewed negotiations on the
basis of the contact group plan. Settle your differences at the negotiating
table
not the battlefield. We must not let our frustration over that war cause us to
give up our efforts to end it. And the United States will not do so. If we have
learnt anything from the agony of Bosnia, it is clearly that we must act on its
lessons.

* * *

        Budapest, December 5 (MTI) - In other parts of Europe ethnic disputes
and forces of hatred and despair, and demagogues who will take advantage of
them threaten to reverse the new wave of freedom that has swept the
continent. So as we strive to end the war in Bosnia, we must work to prevent
future Bosnias. And we must build the structures that will help newly freed
nations to complete their transformation successfully to free market
democracies and preserve their own freedom. We know this is not something
that will happen overnight but over time NATO and the CSCE, other European
and Transatlantic institutions working in close cooperation with the United
Nations can support and extend the democracy, stability and prosperity that
Western Europe and North America have enjoyed for 40 years. That is the
future we are working to build.

        NATO remains the bedrock of security in Europe, but its role is
changing as the continent changes. Last January NATO opened the door to
new members and launched the Partnership for Peace. Since then 23 nations
have joined that partnership to train together, conduct joint military
exercises
and forge closer political links. Last week we took further steps to prepare
for
expansion by starting work on the requirements for membership. New
members will join country by country, gradually and openly. Each must be
committed to democracy and free markets and be able to contribute to
Europe's security. NATO will not automatically exclude any nation from
joining. At the same time, no country outside will be allowed to veto
expansion. As NATO does expand, so will security for all European states.
NATO's new members, old members and non-members alike will be more
secure.

        As NATO continues its mission, other institutions can and should share
the security burden and take on special responsibilities. A strong and vibrant
Conference on Security and Cooperation in Europe is vital. For more than a
decade the CSCE was the focal point for courageous men and women who at a
great personal risk confronted tyranny to win the human rights set out in the
Helsinki accords. Now the CSCE can help to build a new and integrated
continent. It has unique tools for this task.

* * *

        Budapest, December 5 (MTI) - The CSCE is the only regional forum to
which every nation in Europe and North America belongs. But it has pioneered
ways to peacefully resolve conflicts, from shuttle diplomacy to long-standing
missions in tense areas. Now that freedom has been won in Europe, the CSCE
can play an expanding role in making sure it is never lost again. Indeed, its
proposed new name, the Organization for Security and Cooperation in Europe,
symbolizes a new and more important mission we believe it must undertake.
The CSCE should be our first flexible line of defence against ethnic and
regional conflicts. It can help nations come together to build prosperity and
it
can promote Europe's integration piece by piece. By focussing on human
rights, conflict prevention, dispute resolution, the CSCE can help prevent
future Bosnias. We are taking important steps at this meeting for that crucial
goal by strengthening the High Commissioner for National Minorities,
establishing a code of conduct to provide for democratic civilian control of
the
military, reinforcing principles to halt the proliferation of weapons of mass
destruction, and preparing to send CSCE monitors and peacekeepers to
potential trouble spots outside Bosnia. These actions will not make triumphant
headlines, but they may help to prevent tragic ones.

        The principles adopted in Rome make clear that any peacekeeping
mission must aim for a freely negotiated settlement by the parties themselves,
not a solution imposed from the outside. And they hold that no country can
use a regional conflict, however threatening, to strengthen its security at the
expense of others.

        I am very encouraged that with the support and involvement of the
Russian Federation we are on the verge of an agreement that the CSCE will
lead a multinational peacekeeping force in Nagorno-Karabakh. The United
States appreciates the willingness of many nations to contribute troops and
material for this mission. The continuing tragedy in Nagorno-Karabakh
demands that we redouble our efforts to promote a lasting cease-fire and a fair
settlement. The United States strongly supports this effort and calls upon all
CSCE members to contribute toward it.

* * *

        Budapest, December 5 (MTI) - The CSCE also has an important role to
play in promoting economic growth while protecting Europe's resources and
environment. We should strengthen its efforts to increase regional and cross-
border cooperation. Such efforts can bring people together to build new
highways, bridges and communication networks - the infrastructure of
democracy.

        Since 1975, when the countries of Europe expressed a desire to form a
community, founded on common values, and founded the CSCE, more
progress has occurred than even dreamers might have hoped. We now that
change is possible, we know that former enemies can reconcile, we know that
eloquent intentions about democracy and human rights can promote peace
when transformed from words into actions. Now almost 20 years later our
challenge is to help the freedoms we secured spread and endure. The task will
require energy and strength. Old regimes have crumbled, but new legacies of
mistrust remain. Nations have been liberated but ethnic hatred threatens
peace and tolerance. Democracies and free markets are emerging but change
everywhere is causing fear and insecurity. Three times before in this century
our nations have summoned the strength to defeat history's dark forces. They
have left us still with a great responsibility and an extraordinary
opportunity.
Our mission now is to build a new world for our children, a world more
democratic, more prosperous and more secure. The CSCE has a vital role to
play.


CSCE Summit - Speech by President Yeltsin


        Budapest, December 5 (MTI) - THE goal is to establish a united and
democratic Europe, said President Boris Yeltsin of Russia in a speech he
delivered at the CSCE summit in Budapest on Monday.

        He pointed out that a plan of expanding NATO slightly contradicted this

goal since Russia is no longer an enemy of the North Atlantic Organization,
quite the contrary; cooperation has almost attained the status of partnership.

        Inasmuch as NATO expands responsibility toward the Russian borders,
we must defend Russian democracy, he stressed, warning against a repetition
of past mistakes, as no single major power can live in isolation.

        The Russian president expressed the hope that Russia could become
the eastern bastion of European security.


CSCE Summit - Bosnian President Izetbegovic Gives Speech


        Budapest, December 5 (MTI) - PRESIDENT Aliya Izetbegovic of Bosnia
said the aggression against Bosnia marked the weakness and hesitation of the
world.

        Speaking at the current CSCE summit meeting here today, he stressed
that the UN peacekeeping troops may be stationed in vain in the region since
they are incapable of securing any town that has been attacked.

        No foreign journalists are allowed to work in the region, and the
Bosnian Serbs censor any reports that do come out.

        According to Izetbegovic Russian vetoes raised in the UN Security
Council provided an obstacle to efforts by the world body, while Bosnian
Serbs continually seem to have access to supplies from some source.
Nuclear Non-Proliferation Treaty Expanded - Speeches by Yeltsin,
Kuchma, Major, Clinton


        Budapest, December 5 (MTI) - FOLLOWING the signing of the document
on expanding the nuclear non-proliferation treaty at the Budapest CSCE
summit, President Boris Yeltsin of Russia stressed that the agreement bore
evidence of wisdom.

        Russia seeks to build special, friendly, and fraternal ties with the
member states of the Commonwealth of Independent States and with
neighbouring countries. At the same time Moscow is taking action to help
further reduce the nuclear arsenal.

        Ukrainian President Leonid Kuchma called for the destruction of
nuclear weapons in all parts of the world. He described the signing of the
document as the outstanding event of the year, opening new dimensions in
relations between countries.

        British Prime Minister John Major said the signing of the agreement
indicated continuous efforts to disarm nuclear weapons. He said he was
convinced that the signing today would provide further impetus in creating
stability and security and also mark a major step in the direction of
eliminating
nuclear weapons.

        President Clinton pointed out that the world has become more secure
and the threat of nuclear war has considerably dropped. Contrary to skeptics,
the threat of a nuclear war has not grown with the collapse of the Soviet
Union,
but quite the contrary, a process has begun to move in the opposite direction.


CSCE Summit - Yeltsin on NATO and the CSCE


        Budapest, December 5 (MTI) - ADDRESSING the CSCE summit in
Budapest today, Russian President Boris Yeltsin spoke in detail about NATO
and the CSCE.

        He emphasized, "History has shown that it is a dangerous
misunderstanding to believe that the fate of continents and the international
community as a whole can be decided from any capital.

        "This continent badly needs a fully authorized pan-European
organization to be established on solid legal foundations.

        "The CSCE is a unique structure as regards the scope and potential of
its members: it is designed to become a strong and efficient tool of peace,
stability, and democracy," Yeltsin said.

        The Russian head of state said bilateral agreements signed by CSCE
countries on good-neighbourly ties and cooperation may become the pillars of
an all-European security system. The interlocking security guarantees
provided for the particular states and groups of states are also highly
important, Yeltsin said.

* * *

        Budapest, December 5 (MTI) - "Although we, sitting in this hall, are ve
ry
different, we do profess common values, and have committed ourselves to
uniform principles. Russia respects the interests and positions of all CSCE
participants but it requires that its own interests should also be respected.
In
Russia, people often ask how the CSCE's transformation fits into the changes
in the current structure of security. We follow the changes happening in NATO
with anxiety. What will they mean for Russia?", Yeltsin asked.

        "NATO was set up in the Cold War period. This organization is making
hard efforts to find its place in Europe. It is important that this search
should
not bring upon new isolations but pave the way for European unity.

        "In our view, the plan to expansion of NATO contradicts this logic. Why

sow the seeds of mistrust? After all we are no longer adversaries but
practically partners," the Russian president said.

        "We hear the explanation that this is "expansion of stability" in the
event of an undesirable turn of events in Russia. If this is why they want to
bring NATO's borders to the borders of Russia. I will say only this: it is too
early to bury democracy in Russia.

        "The errors of the past should not be committed again. No major
country would live in isolation and any country would reject such a game with
itself," Yeltsin said.




Horn-Yeltsin Talks - Government Spokesperson


        Budapest, December 5 (MTI) - THE Hungarian Government
Spokesperson's Office on Monday issued a statement on the talks between
Hungarian Prime Minister Gyula Horn and Russian President Boris Yeltsin,
held at Parliament on December 4.

        On the planned expansion of NATO, the Russian head of state said
Russia opposed admitting countries which it neighbours too rapidly - it
would again divide Europe into two parts.

        He said that shifting the geographical frontiers of the North Atlantic
Alliance eastward would at best modify existing spheres of interest, but not
increase stability.

        Yeltsin expressed Russian support for the Hungarian position
covering both all-European and regional factors. He said an acceptable
solution has to be found to the enlargement of NATO and proposed further
foreign ministerial consultations on the question.

        Yeltsin stressed that boosting parliamentary relations would
promote ratification of the basic treaty between Hungary and Russia. To
increase trade links, which have moved from their previous deadlock, he
called for the conclusion of a free-trade agreement.

        On repayment of Russian debts, he saw a need to implement the
already signed agreement. He urged the signing of the document
coordinated before on the affair of soldier's graves. For returning art
treasures taken to Russia during World War Two, he proposed there should
be non-political expert talks.

* * *

        Budapest, December 5 (MTI) - HORN said Hungary wants to take part
in the work of all western integration groups, including NATO.

        He stressed every country has the right to decide which alliance or
organization it wants to join. Entry can actually take place if the necessary
conditions hold and the members of the concerned organization agree to
admit the applying country.

        Horn believes Russia is also interested in a stable region free from
confrontations and armed conflicts on its European borders.

        Horn said the Hungarian government considers it an important
element of its foreign policy based on new emphases to normalize and
enliven economic links with Russia. It stands for a bilateral investment
protection agreement to be concluded as soon as possible, although it
does not regard Hungary's involvement in Russian privatization as the only
means of settling Russian debts.

        He wanted to see implemented the protocol on the delivery of used
fuel rods from the Nuclear Power Station of Paks to Russia, closing
accounts connected with the Yamburg project, and agreeing on the art
treasures taken from Hungary during World War Two.

        Yeltsin invited Horn for an official visit to Moscow.


CSCE Summit - Clinton Meets Hungarian Leaders


        Budapest, December 5 (MTI) - U.S. President Bill Clinton met
Hungarian Prime Minister Gyula Horn and Hungarian President Arpad
Goncz at the Budapest Convention Centre at noon today. The 45-minute
meeting was attended by U.S. Secretary of State Warren Christopher and
Foreign Minister Laszlo Kovacs.

        Kovacs said Gyula Horn had emphasized the Hungarian
government"s commitment to joining NATO, and appreciated the balanced
U.S. view on enlarging NATO. The prime minister also spoke of Hungary's
wish to join the European Union. He said Hungary would continue
economic reforms that are vital to gain full EU membership and to help
Hungary, namely economic transformation and privatization.

        In reply, President Clinton said the United States was prepared to
support Hungary's efforts to join the EU and help implement the economic
efforts the Hungarian prime minister referred to. Hungary can rely on U.S.
support both in bilateral ties and in the international organizations, he said.
President Clinton said that the North Atlantic alliance should be no means
enlarged in a way that would divide Europe again. On the contrary, NATO's
enlargement is to strengthen stability in Europe, west and east, he said.

* * *

        Budapest, December 5 (MTI) - THE politicians discussed some
concrete issues of bilateral ties. Hungary asked for expanding transfer of
technology and increasing U.S. investment here.

        The sides agreed on the need for cooperation in combating
organized and international crime and terrorism. The United States is
prepared to set up a regional centre, a kind of "police academy", in
Budapest so as to take more efficient actions against organized crime in
Eastern and Central Europe, Kovacs said.

        The foreign minister said President Clinton had regretted that he
could spend only a short time in Budapest. Kovacs quoted the president as
saying that he would liked to have woken up to see the Danube. The US
President also said that, travelling from the airport to the conference, he
admired the sights of Budapest. "President Clinton was glad to come to
Hungary, even if for a short time," the Hungarian foreign minister said.


CSCE Summit - Goncz-Izetbegovic Talks


        Budapest, December 5 (MTI) - "BOSNIA and Herzegovina must be
preserved as an international entity and its territorial integrity safeguarded
within its internationally recognized borders," Hungarian President Arpad
Goncz said when meeting Alija Izetbegovic at Parliament this afternoon.
The Bosnian president is in Budapest attending the CSCE summit.

        In the Yugoslav conflict, including the Bosnian war, Hungary feels
only a political solution is acceptable. Budapest can approve of all kinds of
solution that would suit the Bosnian nation, Goncz said and noted Hungary
was ready to shelter refugees from Bosnia.

        Covering the 30-minute discussion, presidential spokesman Andras
Farago said that Izetbegovic expressed his gratitude for the reception of
Bosnian refugees.

        Judging the situation of his country, he said it is "not giving cause
for optimism", but he hoped that there would be a change after the summit
and if war can be prevented from spreading further.


CSCE Summit - Hungarian Foreign Minister on Yeltsin's Speech


        Budapest, December 5 (MTI) - INTERVIEWED by Hungarian
journalists today, Hungarian Foreign Minister Laszlo Kovacs spoke in terms
of cautious optimism about the chances of the CSCE summit to approve a
political declaration.

        In reply to questions, the minister said he had not been surprised at
Russian President Boris Yeltsin's toughly worded speech. "All
preliminaries, including Yeltsin's Sunday talks with Hungarian President
Goncz and Prime Minister Gyula Horn and the Hungarian-Russian foreign
ministerial meeting, indicated that Russia would adopt a tough position."

        The Hungarian foreign minister said he was happy with the course of
the CSCE summit so far. He added, "Delegates are also satisfied with the
summit and with conditions provided by Hungary".



CSCE Summit - Horn Meets Kohl


        Budapest, December 5 (MTI) - HUNGARIAN Prime Minister Gyula
Horn had talks with German Federal Chancellor Helmut Kohl in Budapest
this afternoon. Kohl officially invited Hungary to talks linked with the
European Union summit in Essen at the weekend.

        Hungarian Foreign Minister Laszlo Kovacs, who attended the
discussion, later told Hungarian reporters that the talks had mainly
concerned the EU Essen summit. The chancellor felt it important for the six
associated countries to lay out their plans. He said he was planning a
general discussion at the summit on the EU's economic situation and
questions of its expansion.

        Up until now, the EU has not officially invited representatives of the
associated nations, although politicians of the six countries had originally
assumed this on the grounds that the foreign ministers of the associated
countries were present at the October conference of EU foreign ministers.
However, Kohl's invitation was not to the summit itself, but to a related
discussion.

CSCE Summit - Horn Meets Santer


        Budapest, December 5 (MTI) - "Hungary has concrete proposals
which it will take to the meeting to be held in Essen this weekend, following
the summit of the European Union," Hungarian Prime Minister Gyula Horn
said on Monday when he met the Prime Minister of Luxembourg, Jacques
Santer, who will become the chairman of the European Union's
Commission from the beginning of next year.

        (The leaders of six European countries awaiting membership in the
EU have been invited for the Essen meeting.)

        Briefing the press after the meeting, Istvan Pataki, the Deputy State
Secretary of the Hungarian Foreign Ministry, said Hungary's concrete
proposals are related to the pace of its preparations for the membership
talks, which also implies that it will at times report about its results in
economic development and the harmonization of its laws with those of the
EU.

        Horn said that in accordance with the request of the European Union,
Hungary will strive for membership step by step, and is realistic as regards
its possibilities and the tasks facing the EU.

        Santer ensured full support to the Hungarian membership efforts
and said there was a political will to bring Hungary into the EU.
CSCE Summit - Hungarian President Meets Slovak President


        Budapest, December 5 (MTI) - "Hungary awaits the forming of the
democratically elected new Slovak government and is ready to continue
dialogue with it. Budapest has not interfered in Slovak home affairs in the
past and has no intention of doing so in the future," Hungarian President
Arpad Goncz said during his meeting with Slovak President Michal Kovac in
Budapest on Monday.

        Kovac is in Budapest to attend the CSCE summit, which opened
earlier in the day.

        Goncz went on to stress that there is no alternative to Hungarian-
Slovak cooperation, which means a basic treaty between the two countries
is necessary as this can have a major role in developing relations.

        Reporting the meeting, presidential spokesman Andras Farago said
Goncz termed the issue of minorities to be an essential element of the basic
treaty. He mentioned Hungary would forward its own draft to Slovakia, in
which the matter of the national minorities and the issue of border
guarantees would alike be included in a form set down by European
documents.

        Hungary's president asked his counterpart to encourage the
Hungarian Slovaks to participate in Sunday's local elections and to
continue to help the local councils elected, by providing books, helping
school education and creating twin-city relations. He said Hungary would
not see this interference into its home policy.

        Goncz said he could not think of European integration without
Slovakia, in the interest not only of the region but of all Europe.

        The Slovak president said his country has no other possibility than
European integration.

        As regards the minority issue, he said: "It is our duty to make
maximum efforts." Over the basic treaty, he said it was in Slovakia's
interests to progress in contractual relations as the Europe of the future
only needs countries that work together.

CSCE Summit - President Clinton on His Visit to Budapest


        Budapest, December 5 (MTI) - "The CSCE has a vital role in
promoting democracy and in curbing conflicts in Europe, as well as in
continuing the efforts to create European unity," American President Bill
Clinton said at Budapest's Ferihegy airport shortly before leaving the
Hungarian capital.
        At the airport, President Clinton met members of the American
mission in Hungary, diplomats working here, and the representatives of
Americans living and working in Budapest.

        The president described his visit to Budapest as highly important. "I
came to confirm the commitment of the United States to a unified and
secure Europe," he said at an informal speech delivered in one of the
airport hangars.

        Speaking about the host country, Hungary, Clinton said it and its
neighbours are taking permanent and firm steps for full integration into
Europe. "I believe Hungary will be able to achieve the transition to a market
economy as well as its aim of playing an important and responsible role in
the new Europe."

        As regards the CSCE, he again promised the United States" support
to the organization in the prevention of ethnic and regional conflicts. He
said that the world will be safer as a result of what is taking place here
today.

        The number of nuclear warheads and missiles in the possession of
the United States, Russia and the Soviet successor states can be cut to half
of their current level with the START-1 treaty alone. The START-2
agreement will reduce the nuclear arsenal by an additional 5,000 warheads,
Clinton said and added that when this process is completed, the number of
these weapons will have been cut by more than two-thirds as compared to
the maximum number held in the Cold War period.

        The president said this was welcome news to all and the task now
was to move further down this road, and next year to achieve the
prolongation of the non-proliferation treaty for an indefinite period.

        President Clinton recalled that since January 1993 this was his third
visit to Europe with the aim of bringing about a new and unified Europe.
Among the goals, he mentioned the enlargement of NATO, the reduction of
the nuclear threat, the freeing-up of trade, and the intensification of
cooperation in order to prevent international conflicts, through such
organizations as CSCE.

CSCE Summit - Horn Meets NATO Secretary-General


        Budapest, December 5 (MTI) - NATO Secretary-General Willy Claes
said his meeting with Hungarian Prime Minister Gyula Horn in Budapest on
Monday evening brought no surprises as the Hungarian Prime Minister
confirmed that Hungary is ready to become a member of NATO.

        At a press conference following the meeting, Claes said he had
informed Horn about NATO's decision taken last week, whereby they wish
to examine ways of enlarging NATO.

        Claes said the remarks of Russian President Boris Yeltsin made at
the CSCE summit on Monday did not come as a surprise either, since they
only confirmed what Russian Foreign Minister Kozyrev had said in Brussels
a few days ago at the NATO council session.

        The secretary-general said he was aware that President Yeltsin was
not over enthusiastic about the NATO decision, but Claes told the
Hungarian prime minister that implementation of this decision would begin
tomorrow. At the same time, he stressed NATO did not wish to isolate
Russia and by bringing security and stability to Central and Eastern Europe
did not want to create two spheres of influence in Europe once again.

        Security and stability was in the interests not only of NATO but
Russia as well, and Claes said he hoped his organization would succeed in
convincing Russia about its readiness to cooperate.

        Reporting on the meeting, the administrative State Secretary of the
Hungarian Foreign Ministry, Ferenc Somogyi, said Claes had informed the
Hungarian Prime Minister that the current NATO decision was the
determined continuation of a process begun previously, and that non-NATO
countries could not have veto rights.

        Somogyi said both sides agreed that, as far as possible, Russian
anxieties should be taken into consideration, and efforts should be made to
convince her that the enlargement of NATO does not endanger her
interests. He added this enlargement is in the interest of Russia as well, as
it contributes to the region's stability and provides guarantees for
foreigners wishing to invest there.

        Prime Minister Horn said Hungary should take part in the efforts
aimed at reassuring Russia.

CSCE Summit - Hungarian PM Meets Jacques Delors


        Budapest, December 5 (MTI) - The situation in Bosnia and
Herzegovina was one of the topics discussed on Monday during a meeting
between Hungarian Prime Minister Gyula Horn and European Commission
President Jacques Delors, who will leave his post at the end of the year.

        The administrative State Secretary of the Hungarian Foreign Ministry,
Ferenc Somogyi, briefed the press about the meeting, and said both sides
had stressed that no-one has a solution to hand for the Yugoslav crisis.
        The most important subject discussed was the relation between
Hungary and the European Union. Prime Minister Horn said Hungary was
committed to European integration, but was also aware that it should not
"bombard" the organization with unrealistic requests.

        Horn also said that, from Hungary's point of view, it would be
desirable if the EU could be more concrete about what was required from
the associate members.

        In his reply, Jacques Delors said Brussels officials also believe that
political cooperation should be further developed and made regular.

        Horn mentioned that with Austria's membership the EU's border had
shifted to the Austrian-Hungarian border, and this could cause problems
for Hungary in passenger traffic and in the passage of agricultural products
into Austria.

        Jacques Delors said Brussels was examining Hungary's request for
setting up two border stations that would have the right to allow Hungarian
agricultural products and animals into EU territory.


Communique on Horn-Iliescu Talks


        Budapest, December 5 (MTI) - The Hungarian Government
Spokesman's Office on Monday issued a communique about the
discussions held between Hungarian Prime Minister Gyula Horn and
Romanian President Ion Iliescu in Budapest on December 4, at the initiative
of the Romanian President.

        According to the communique, the two men reviewed current issues
of bilateral cooperation and exchanged views on topics of concern for the
continent.

        The communique runs as follows, "In the Romanian President's
assessment of the situation, relations between the two countries are
developing normally. There have been successes, but there remain
questions to be resolved. Economic and trade relations between the two
countries are developing well and there is regular contact between the
Foreign Ministries. Cooperation between the Defence Ministries is also
good and has brought results, which is highly appreciated outside this
region as well."

        "The Romanian President also said he considers relations with the
Republic of Hungary to be of outstanding importance. At the same time, he
did not wish to pass over in silence the problems that exist, and from
among these mentioned the nationalities issue and some of its aspects. He
considered a constructive approach in all issues needing resolution to be
important, and believed that this would lead to progress.

        "The Hungarian Prime Minister said the new government also wished
to build its relations with neighbouring Romania, based on the concept of a
historical reconciliation. In line with this declared goal, the Hungarian
government had come up with numerous concrete initiatives, among which
he mentioned the foreign ministerial talks in September, the development
of economic and trade relations, the frequent contacts between the two
defence ministries, and the negotiations to prepare the basic treaty.

        "The Hungarian Prime Minister stressed that there are no parties in
the Hungarian Parliament that advocate a nationalist policy. At the same
time, as regards the settlement and development of relations with Romania,
there naturally are arguments about the means used, and the evaluation of
concrete steps taken."

* * *

        Budapest, December 5 (MTI) - "Prime Minister Horn said that in its
foreign policy, the Hungarian government has taken a firm stance in
advocating cooperation in resolving regional, sub-regional and pan-
European issues. In keeping with this spirit, he proposed that Romania
participate in the Central European Free Trade Agreement," the
communique continues.

        "As regards the nationality issues, the Prime Minister again
mentioned the problems related to education in the mother tongue. He
stressed that the Hungarian minority law is in harmony with European
norms especially because it enforces the principle of positive
discrimination. Horn said that if Hungary and Romania were to be among
the first countries to sign the Council of Europe's document on national
minorities, this would provide positive encouragement not only to bilateral
relations, but also to the entire region.

        "The two sides agreed that dialogue should be continued on various
levels in order to seek solutions through their joint efforts, in the spirit of
openness manifest at their meeting," the communique points out.
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A tovabbterjesztest a New York-i szekhelyu Magyar Emberi Jogok
Alapitvany tamogatja.

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Reposting is supported by Hungarian Human Rights Foundation News
and Information Service.
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N  E  W  S  L  E  T  T  E  R

Republic of Hungary                             Budapest, 1394 . 423
Ministry of Foreign Affairs                     Telephone:36(1)156-8000
Press Department                                        Telefax: 36(1) 156-3801
547/1994.                                       Budapest, December 07, 1994

Press Review


        Budapest, December 6 (MTI) - MAGYAR NEMZET: Calvinist Bishop
Laszlo Tokes of Oradea, Romania, has addressed a letter to President
Arpad Goncz and Prime Minister Gyula Horn, saying that the state of ethnic
Hungarians has been deteriorating in Romania, the daily writes. The bishop
said in connection with a meeting between Prime Minister Horn and
Romanian President Ion Iliescu in Budapest on Monday that it would be
harmful for the Hungarian government to display leniency by yielding to
pressure from the CSCE. (page 5)

        Kurir: Sandor Nagy, president of the largest trade union group, the
National Confederation of Hungarian Trade Unions, is not pleased about
holding simultaneously the post of trade union president and member of
parliament for the Socialist Party. As regards the last dispute at the Interest
Coordination Council, Nagy said it had proved that the trade unions were
not only able to come up with demands, but that they were capable of
forming a realistic judgment. (page 5)

        Nepszava: Neither the ministry of agriculture nor the government
need to be made to realize the alarming state of the sector, said Andras
Zsohar, new cabinet chief for the ministry. He said these institutions have
the sufficient determination to set about solving the problems of
cooperative members and private entrepreneurs. He said the current laws
on cooperatives hamper a rational transformation. (page 7)

        Magyar Hirlap: One more session is necessary for adjusting the EU-
Hungarian associate agreements to the admission of the EFTA countries
and to entering the GATT agreement into force, said the head of department
of the Office for European Affairs. He added that the agrarian trade joint
working group has until January 1 to reach agreement before the
amendments enter into force.

        Magyar Hirlap: The State Property Agency does not rule out the idea
of launching proceedings against companies that failed to meet their
obligations laid down in contracts in the course of privatization. Experts at
the Agency will investigate those major companies that have been
completely privatized. (page 11).

CSCE Summit - Unscheduled Horn-Kohl Meeting


        Budapest, December 6 (MTI) - HUNGARIAN Prime Minister Gyula
Horn and German Chancellor Helmut Kohl held an unscheduled meeting in
Parliament Tuesday morning as part of the current CSCE Summit.

        The two statesmen had already met on Monday afternoon in the
Hilton Hotel, but the German Chancellor asked for yet another meeting.

        On Tuesday morning Chancellor Kohl was to meet President Arpad
Goncz but the meeting was cancelled.


CSCE Summit - Goncz Meets Iliescu in Budapest


        Budapest, November 6 (MTI) - The Romanian president urged
genuine reconciliation between Hungary and Romania, while the Hungarian
head of state proposed joint action with Ion Iliescu at international forums
in defence of minority rights, at a working breakfast Tuesday morning,
President Goncz's press spokesman Andras Farago told media
representatives.

        President Iliescu arrived in Budapest to attend the European summit,
and on Sunday conferred with the Hungarian Prime Minister, Gyula Horn.

        President Iliescu - according to Farago, - stressed that Hungarian-
Romanian relations should be determined by understanding and joint
interests, and contacts between the two countries ought to be built up on
positive elements. He said it was a mistake to keep mentioning the
prevailing tensions and not to mention good examples such as relations
between the two armies or the number of joint ventures, which were never
mentioned.

        Among the neighbouring countries Hungary is Romania's most
important economic partner, he noted.

        For his part President Goncz said it would be wrong to forget about
problems, and the problems between the two countries must be solved
rather than stepped over. The state of minorities in Romania represents a
domestic political problem in Hungary, he said, adding that Hungary wants
to grant every assistance to help Romania catch up with Europe both in the
social and economic fields. He also said that Hungary had a vested interest
in signing a basic treaty with Romania which would actually be
implemented by both sides.

        In this connection President Iliescu said all rights and opportunities
were given for ethnic minorities in Romania and he also mentioned that
about ten million Romanians were living outside the borders of his country.
In response to this President Goncz said joint action should be taken in the
defence of minority rights.

* * *

        Budapest, December 6 (MTI) - The spokesman said President Iliescu
had proposed ways and means for further developing bilateral ties.

        In this connection President Iliescu said: "two intelligent countries
stand side by side, and it is necessary to achieve genuine reconciliation,
and cooperation in which the parties do not give up principles, but instead
build the future."

        President Ion Iliescu repeated an invitation for President Goncz to
visit Romania.

        The Hungarian head of state said such a visit could only take place if
talks promised to yield results, but he said he hoped that he could one day
visit Bucharest.

CSCE Summit - Horn Meets Tarschys


        Budapest, December 6 (MTI) - Hungary is ready to sign a minority
framework agreement endorsed by the Council of Europe, and hopes that
the Central and Eastern European countries will sign this document as
soon as possible, said Prime Minister Gyula Horn at a meeting with Daniel
Tarschys, General Secretary of the Council of Europe, in Parliament today,
Andras Gyenge, head of department at the Foreign Ministry told MTI.

        Horn said Hungary highly appreciated the activity of the Council of
Europe and considered exemplary the way it took seriously the
implementation of its resolutions and had helped the transformation of the
Central and East European states.

        He also expressed thanks for the assistance extended by the Council
of Europe to Hungary. He said Hungary had a high opinion of the various
documents and conventions of the Council of Europe particularly the
minority framework agreement passed by Parliament recently.

        He said he considered the broadening of the Council of Europe as
very important, adding that Hungary supported the admission of Russia
into the organization particularly if it met the necessary requirements. This
would become a stabilizing factor for Russia and would help its
transformation. There is the question of whether Russia is "mature" enough
for membership of the Council of Europe. Hungary believes that helping
transformation and the effect on stabilization are much more important
factors.

        Tarschys concurred, adding that the Council would count on
cooperation between the member countries and help Russia in the dialogue
before admission and in the control mechanisms after admission. Plans
should be worked out for Russia and other East European countries that
help democratic transformation.

        As regards financing this, further resources would have to be called
on. The Council of Europe was looking forward to Gyula Horn's visit to
attend the parliamentary assembly meeting of the Council of Europe not
just in his capacity as Prime Minister but also as a head of government who
is currently chairman of the CSCE. Finally he said the Council of Europe
wanted to build closer ties with the CSCE particularly with its agency
dealing with human rights issues and with the High Commissioner for
Minorities.


CSCE Summit - Horn Meets Berlusconi


        Budapest, December 6 (MTI) - ITALY will also join the appeal calling
upon the warring sides in the Bihac pocket to conclude an immediate
cease-fire and guarantee free passage for humanitarian aid convoys, Italian
Prime Minister Silvio Berlusconi told his Hungarian counterpart Gyula Horn
today. The press was informed of the talks by Istvan Pataki, Hungarian
deputy state secretary of Foreign Affairs.

        Berlusconi expressed concern for the situation in Bosnia-
Herzegovina, and shared Horn's view that even if the CSCE is unable to
resolve the Yugoslav conflict, it should indicate its position regarding the
warring sides and the international community.

        Horn expressed appreciation to Berlusconi for Italian support for the
invitation of the EU associate members to the Essen summit.

        The politicians agreed that bilateral relations were developing
dynamically.


CSCE Summit - Horn Meets Major


        Budapest, December 6 (MTI) - Britain supports the enlargement of
NATO and envisages the admission of new members as a prudent process,
British Prime Minister John Major told his Hungarian counterpart Gyula
Horn today.
        The prime ministers agreed that Russia's negative position on
NATO's expansion was mainly motivated by home policy considerations,
but had to be recognized in any case.

        The politicians discussed in detail Hungary's relationship with the
European Union. Horn said, "Hungary advocates gradual preparations,
creating the conditions for full membership step by step".

        Major agreed with the Hungarian position that the new applicants
should not be judged as a bloc but on the basis of individual merit. He said
that Hungary's insistence on developing economic cooperation was
understandable, but the EU's internal problems, for instance the free flow
of manpower, should also be taken into account.

        Horn told the British prime minister that Hungary's central budget
deficit in 1995 may come close to the IMF's expectations, thus the country
may launch a three-year programme of modernization in 1996.



CSCE Summit - Hungarian, Spanish Prime Ministers Meet


        Budapest, December 6 (MTI) - At noon on Tuesday in Budapest,
Spanish Prime Minister Felipe Gonzales invited Hungarian Prime Minister
Gyula Horn for an official visit to Spain.

        During the discussion, the Spanish politician detailed experiences
his country had gained on the road leading to the European Union and
offered to share these with Hungary.

        Gonzales recalled that Spain had started talks on EU entry in 1977,
but became a full member only in 1985.

        Horn stressed that Hungary approached the question of joining
realistically, but would like the EU to judge the country based on its
performance, and decide to admit it as soon as possible.

        Horn also pointed out Hungary's continued wish to join NATO,
adding that it treats this with the same emphasis as the intention of gaining
full membership in the EU.

        The Hungarian prime minister expressed his pleasure over the recent
NATO decision that the organization can be enlarged.



CSCE Summit - Horn Meets Dutch Prime Minister


        Budapest, December 6 (MTI) - The Netherlands is sensibly affected
by the situation in Bosnia and Herzegovina because a large number of
Dutch citizens are at the site of the struggles as members of the UN
peacekeeping force, Dutch Prime Minister Wim Kok told his Hungarian
counterpart Gyula Horn in Budapest today.

        The Dutch politician emphasized the high level of organization
characterizing the CSCE Summit, but regretted that the participants failed
to make any progress in some fields.

        Kok showed keen interest in Hungary's plans related to the
economy, security policy and the European Union. He said that Dutch
investors had an invariable interest in the Hungarian market. Kok asked
Hungary to follow the Dutch investors" efforts with similar attention.


CSCE Summit - Closing Statement of the Hungarian President


        Budapest, December 6 (MTI) - The CSCE summit ended in Budapest
on Tuesday with a brief closing speech from Hungarian President Arpad
Goncz.

        He said, "When our Summit Meeting started, we knew that this
meeting would be a watershed in the history of the CSCE. This expectation
proved to be correct. The decisions we have taken will transform the CSCE
into the Organization of Security and Cooperation in Europe, a change
which has the potential to mark - not only in name, but also in substance -
the beginning of a new era in our relations". ...

        "The CSCE has taken one of the most important operational
decisions in its history to mount a large-scale peacekeeping operation in
Nagorno-Karabakh. It will be for the first time in CSCE's record that such an
operation is organized. But, more importantly, this decision is a clear signal
of the willingness of the participating States to make more vigorous use of
CSCE's capabilities and also of the desire of the Russian Federation to
resort actively to international instruments to promote security and stability
in the CSCE region.

        "The measures we have adopted are aimed at increasing the
effectiveness of the CSCE by means of further steps towards its
institutionalization, in particular by strengthening executive action through
the Chairman-in-Office, the High Commissioner on National Minorities, the
Office for Democratic Institutions and Human Rights and the Secretary
General.

        "We regret deeply that we have not been able to find the right
formulations to express our stand on the situation in Bosnia-Herzegovina.
This reflects the failure of the international community and our inability to
find a solution to this terrible conflict. In spite of this, we remain
committed
to continue our quest for a just and durable settlement in Bosnia-
Herzegovina, while assuring those who suffer of our deep-felt solidarity."

* * *

        Budapest, December 6 (MTI) - "We all know the CSCE cannot offer
traditional military security guarantees to States. By definition, it was not
meant to offer such guarantees. The CSCE can do, however, no less
important things. It can offer "soft guarantees" to its participants, and soft
guarantees, in turn, that are so badly needed in important areas such as the
Human Dimension in all its aspects, can provide "security guarantees" to
citizens, which would protect them against human rights violations and
abuse.

        "Let us join forces to combat all attempts to undermine our societies.
One of the best instruments at our disposal is the Organization on Security
and Cooperation in Europe. Our resolve is there to make the best possible
use of it. I want to assure you that this goal will be in the centre of our
attention and of our activities throughout 1995 as Chairman-in-Office of our
Organization."


CSCE Summit Ends in Budapest


        Budapest, December 6 (MTI) - Hungarian President Arpad Goncz
delivered the closing address at the CSCE Summit in Budapest, which
brought the event to an end.

        Delegates approved a final declaration.

        A debate came about at the closing plenary session, as the partial
documents on Bihac in Bosnia and the conflict in the former Yugoslavia
were not approved in the preparatory committees, due to the lack of
consensus.

        Addressing the closing session, the Bosnian delegate said the great
powers acknowledged, and therefore encouraged the aggression against
Bosnia. Although the draft submitted for approval confirms the principles
of the CSCE, it in effect allows the Serbs to strangle Bosnia, and what is
more, for them to mock the international community.

        The Bosnian delegate asked the presiding chairman to again submit
to the delegates the text which was proposed for approval by Bosnia.
Inasmuch as this does not take place, Bosnia will concentrate its efforts on
letting the world know that the CSCE does not adhere to the principles it
accepted.

        The Russian and the Croatian delegations then voiced regret over
not having worked out a document based on consensus in the issues of
Bihac and Bosnia.

        Hungarian Prime Minister Gyula Horn proposed that delegates not
approve a CSCE document on Bihac and Bosnia, but that the heads of state
and government present an appeal from Budapest to the warring sides,
calling for an immediate end to fighting, introduction of a cease-fire and the
realization of humanitarian aid deliveries.

        The Bosnian delegate thanked Horn for the proposal, but said he
cannot approve it as his country was not afflicted by a natural disaster,
rather it suffers from aggression.

        German Chancellor Helmut Kohl then proposed that delegates
approve the Hungarian prime minister's proposal as it is not a CSCE
document and because there are 250,000 people in Bihac in need of urgent
help.

* * *

        Budapest, December 6 (MTI) - On behalf of Croatian President Franjo
Tudjman, the Croatian delegate asked the Bosnian delegate to approve the
tabled document. He said this could be the first step towards settlement,
which could later be followed by the diplomatic offensive of the
international community, as a result of which a separate, high-level
conference could be devoted to resolving this pressing problem.

        The debate was closed with presiding chairman Arpad Goncz asking
Hungarian Prime Minister Gyula Horn to formulate the appeal he had
proposed, which would not be an official document of the CSCE.


CSCE Summit - Foreign Ministers Discuss Stability Pact


        Budapest, December 6 (MTI) - Foreign ministers concerned in the
Pact on Stability in Europe held a conference in Budapest on Tuesday in
connection with the CSCE summit.

        Officials of the European Union, the Central European region and the
Baltic region attended the meeting. Hungarian Foreign Minister Laszlo
Kovacs summarized what had been said.

        He said the French had announced they would convene the
European Stability Conference for next March 20-21 in Paris. This will
essentially be the closing of the initiative which started out as the so-called
Balladur plan.

        Participants were interested in reaching an agreement in Paris.
Contributors said there is a close relation between the Pact on Stability in
Europe and the CSCE as the CSCE is most suited to follow the system of
stability pacts.

        They also agreed on the need for a financial fund that could
contribute to the practical implementation of goals set down in the pact.
Participants are waiting for funds from the European Union.

        Hungary's foreign minister said the system of stability pacts will be
all the bilateral and multilateral agreements together.

        Detailing the Hungarian position, Kovacs said Hungary, which is
holding talks with two of its neighbours to conclude basic treaties having
already made treaties with other neighbours, is ready to fit these basic
agreements into the Pact on Stability in Europe.

        In the meeting, Kovacs said Hungary would welcome readiness from
the European Union to help push through the Hungarian-Slovak and
Hungarian-Romanian bilateral basic treaties.

* * *

        Budapest, December 6 (MTI) - Hungary is very interested in the Pact
on Stability in Europe, as the system of pacts also serves to strengthen
good-neighbourly relations in the Central European region, and one of the
priorities of Hungarian government foreign policy is to create these good-
neighbourly relations.

        The Pact on Stability in Europe wishes to serve these good-
neighbourly relations, partly by diffusing possible suspicions related to
territorial and border issues, and partly by the practical enforcement of
minority rights.

        Hungary is ready to again confirm the inviolability of borders in the
basic treaties. At the same time, it is also well known that Budapest would
like to have guarantees in the basic treaties for the full enforcement of
minority rights, in line with international and European documents and
norms.
CSCE Summit - Horn Meets Canadian Prime Minister


        Budapest, December 6 (MTI) - Hungarian Prime Minister Gyula Horn
met Canadian Prime Minister Jean Chretien in Budapest on Tuesday.

        The Canadian politician said his country had higher expectations
from the European summit, regarding the Yugoslav crisis.

        Deputy State Secretary of the Foreign Ministry Istvan Pataki said
Chretien also stressed it would have been naive to expect one conference
to solve the complex conflict. He described the agreement reached over
Nagorno-Karabakh to be crucial and said Canada is also offering
peacekeeping forces.

        Horn and Chretien said there were no problems in relations between
the two countries, although there could be more trade. Outstanding
Canadian investment is in progress in Hungary.

        During the meeting, the two politicians extended invitations to each
other for mutual visits.


CSCE Troika - Press Conference, Hungarian PM


        Budapest, December 6 (MTI) - "It is up to the sovereign decision of
the Republic of Hungary whether it will become a member in NATO or not,"
Hungarian Prime Minister Gyula Horn said at the Tuesday press conference
of the CSCE's troika.

        Italian and Swiss leaders joined Horn at the press conference.

        He recalled that he had on Sunday evening had talks with Russian
President Boris Yeltsin, on the Russian side's initiative and one of the
important negotiation topics was membership of NATO.

        The Hungarian and the Russian views differ in two basic points. As
against the Russian position, Budapest professes that Russia's security
will not be threatened if Hungary and several other neighbouring countries
become members of NATO, thereby creating a stable zone around Russia,
Horn said.

        "Our membership of NATO is in their interest as well. We do not
threaten security with this step, rather strengthen it.

        "It is not a good idea in international relations if any country,
particularly a great power, tries to restrict the sovereignty of another
country over international decisions. What we fear is Russian protests will
create a precedent and this is unacceptable. It is not good, and we reject it,
if efforts are made to restrict our sovereignty from any country.

        "President Yeltsin and I agreed to hold consultations about this
issue during my visit to Moscow next year.

        "I believe that all NATO member states support continuing dialogue
with Russian leaders so as to convince them," Horn said.

        He said it was a great honour for Hungary to have hosted the CSCE
summit, at which there were sincere, and occasionally sharp, debates. Horn
thought it particularly important that a meaningful document was adopted.
All in all, he said major progress had been made in the creation of a
European security structure.

* * *

        Budapest, December 6 (MTI) - Discussing the contents of the Political
Declaration, the Hungarian prime minister said this document confirms the
commitment of the participating states to democratic values in both home
and foreign policy, as well as their cooperation readiness to realize these.

        The Political Declaration takes a stand for implementing the system
of values embodied in the CSCE's commitments, and designates the steps
that should be taken to create a European security system, including the
transformation of the CSCE.

        The declaration makes it possible to bring about a community that
extends to all Europe and in which the United States and Russia, Canada,
and the Central Asian countries are alike included.

        Among the concrete results, Horn mentioned that the CSCE will work
under the name of Organization for Security and Cooperation in Europe
(OSCE) from January 1, and the decision-making organs and committees
will be able to work in a more effective manner.

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A tovabbterjesztest a New York-i szekhelyu Magyar Emberi Jogok
Alapitvany tamogatja.

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