OMRI DAILY DIGEST
No. 199, 12 October 1995

DUTCH PREMIER BACKS SPEEDY ENTRY TO EU FOR HUNGARY. Wim Kok has
expressed strong support for Hungary's speedy integration into the EU
and NATO, Reuters and Hungarian newspapers reported. Following talks
with visiting Hungarian Prime Minister Gyula Horn in The Hague, Kok told
a news conference that while he would prefer Hungary's entry into the EU
and NATO in relatively quick succession, he was aware of the potential
to upset Russia. "A balance must be maintained that allows trust," he
noted. Horn said that Hungary's ties with the Netherlands seemed "the
best among all the Western countries," despite the controversial
Hungaroton privatization deal, in which the Holland-based Polygram lost
the tender to a consortium of Hungarian musicians that had made a
significantly lower bid, Magyar Hirlap reported. -- Zsofia Szilagyi

ROMANIAN PRESIDENT IN VIENNA, FRANKFURT. Ion Iliescu met with Austrian
Chancellor Franz Vranitzky and President Thomas Klestil in Vienna on 11
October, Romanian TV reported. They discussed bilateral relations, the
Hungarian minority in Romania, Bucharest's initiative for a
reconciliation with Budapest, and the future of the region in the wake
of the ceasefire agreement in Bosnia. Iliescu earlier the same day
launched the German version of one of his memoirs at the Frankfurt
International Book Fair. -- Michael Shafir

HUNGARIAN PRESIDENT CONCLUDES VISIT TO BULGARIA. Arpad Goncz, on the
last day of his visit to Bulgaria, addressed the Bulgarian parliament,
international media reported. He was applauded by the opposition when he
stated Hungary's wish to join both EU and NATO. During talks with
Bulgarian Prime Minister Zhan Videnov, Goncz discussed the possibility
of future regional cooperation between the two countries within the
Central European Initiative and CEFTA. Videnov emphasized that Bulgaria
will do everything in order to be eligible for CEFTA membership,
including paying back the 86 million transferable ruble debt to Hungary
as soon as possible, partly in a barter deal for Bulgarian medicines.
Prior to joining CEFTA, however, Bulgaria wants to conclude a bilateral
free trade agreement with Hungary. -- Zsofia Szilagyi and Stefan Krause

[As of 12:00 CET]

Compiled by Jan Cleave



Thursday, 12 October 1995
Volume 2, Issue 200


REGIONAL NEWS
-------------

**PRIME MINISTER'S PRIME MOTIVES**
  Dutch Prime Minister Wim Kok is expressing strong support for
  Hungary's entry into the European Union and NATO.  Kok spoke
  yesterday after meeting in The Hague with Hungarian Prime
  Minister Gyula  Horn.  But Kok added that, while he'd like
  Hungary to be let into the EU and NATO in quick succession, he
  doesn't want to upset Russia.  In Kok's words, a balance must
  be maintained that allows trust.  Horn noted that trade
  between Hungary and the Netherlands totalled about $700
  million in 1994.  The two leaders discussed trade as well as
  continuing or intensifying existing agreements such as
  development programs in Hungarian provinces and plans to fight
  organized crime and drug trafficking.


**EVERYBODY'S GOT AN OPINION**
  Former Hungarian President Matyas Szuros has waded into the
  conflict over rights for ethnic Hungarians in Romania's
  Transylvania region.  Szuros said they should have more
  autonomy.  Szuros insists he's not advocating complete
  secession.  But he is recommending the creation  of special
  enclaves in areas of eastern Transylvania where Hungarians
  make up 80 percent of the population.  He said Hungarians
  could have cultural, administrative and territorial autonomy.
  Szuros thinks an historic reconciliation between Hungary and
  Romania is possible, along the lines of the post World War Two
  relationship of Germany and France.  But he said that can only
  happen if ethnic Hungarians are treated properly.  So far,
  Bucharest has opposed autonomy for ethnic Hungarians, saying
  it threatens the fabric of the Romanian state.  Many Romanians
  suspect Hungary wants to take back Transylvania, which was
  awarded to Romania after World War I. --David Fink


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(Elnezest az esetleges kisbetukert, de az eredeti szoveg csupa
nagybetuvel volt irva, amit at kellett cserelnem.)

Buchwald Amy

*****************************************************************

date=10/11/95
type=correspondent report
number=2-186711
title=e. Euro Investment (l only)
byline=Barry Wood
dateline=Prague
content=
voiced at:

Intro:  A U-N agency says 15 transforming economies of Eastern
Europe and the former Soviet Union attracted four billion dollars
of new foreign direct investment last year. V-o-A's Barry Wood
reports  not  only is investment growing, many of the
transforming economies themselves are registering impressive
output gains.

Text:  The U-N economic commission for Europe says the investment
gains reflect growing confidence in the future of post-communist
Europe.  The total foreign direct investment in the region now
totals almost 23 billion dollars.  Investment grew an impressive
24 percent in 1994.

But the foreign investment flows are very unevenly distributed.
Five countries in Central Europe account for 72 percent of the
total.  They are Hungary -- with by far the biggest share -- the
Czech Republic, Poland, Slovakia, and Slovenia.  Hungary is the
clear leader, with  nearly nine billion dollars of foreign
investment.  That is twice as much as the second ranking economy,
Poland, which, in turn, is closely followed by the Czech
Republic.

Most of the foreign investment comes from the 15 countries of the
European Union, which accounts for 68 percent of the total.  The
United States is second with eight percent. Two-thirds of the
investment went into service industries and 32 percent into
manufacturing.

Some countries last year made significant advances in attracting
foreign investment.  They were Russia, Estonia, Latvia, Romania,
Moldova, and Bulgaria.

In London, the European Bank for reconstruction and development
is about to release its second annual transition report on
Eastern Europe.  The bank will report that while most of the
region's economies are again growing after years of recession,
not  one has yet climbed back to the output levels of 1989.

Furthest advanced in gross domestic product gains is Poland,
where, by the end of this year, inflation adjusted g-d-p should
be 97 percent of its 1989 level.  Slovenia is close behind,
followed by Hungary and the Czech Republic.

In the former Soviet Union, the statistics are grim.  In Russia
-- where output is still declining -- gross domestic product is
about half its 1989 level.  In war-torn Georgia, output today is
just 17 percent of its 1989 level.

The fastest growing East European economies are Poland and
Slovenia, where output is growing at six percent annual rates.
(Signed)

neb/bdw/jwh/bg

11-Oct-95 11:48 am edt (1548 utc)
nnnn

source: Voice of America