RFE/RL Daily Report
                                    No. 142, 28 July 1994


HORN ON GABCIKOVO DAM. Premier Gyula Horn on 27 July told
representatives of Hungary's environmental movements that Budapest
did not intend to withdraw its suit with the International Court
of Justice (ICJ) at The Hague, whose decision cannot be expected
before Spring 1997, MTI reports. On the other hand, Horn would
like the talks between Hungarian and Slovak experts on the
Gabcikovo-Nagymaros dam, which showed no progress over the past
year, resumed within two weeks so as to facilitate a mutual accord
with Slovakia. According to most ecologists, there is no
environment-friendly solution to Gabcikovo and Hungary's decision
to halt the project was correct and any change would render the
ICJ suit meaningless. According to state secretary for foreign
affairs Istvan Szent-Ivanyi, the two countries have set no
particular time limit to the signing of a state treaty and are
putting the emphasis not on speed but on a long-term comprehensive
settlement of all bilateral issues with the participation of
Slovakia's Magyar and Hungary's Slovak minorities.Alfred Reisch,
RFE/RL, Inc.

HUNGARY ARMY IN DIRE LACK OF FUNDS. According to defense minister
Gyorgy Keleti, the Hungarian Army is presently faced with a 3.5
billion forint ($35million) shortage and cannot expect to get the
extra 2.5billion requested by his predecessor Lajos Fur, MTI
reported on 27 May. Strict saving measures will thus be required,
such as the call-up of 21,000 instead of 23,000 conscripts next
month and the gradual reduction by 10,000 to 12,000 of the number
of army conscripts; the joint exercise with British soldiers in
September will be the only maneuver held this year. Keleti said
that in the future, the army will play a lesser role in Hungary's
security policy, which will rely more on political means and the
bilateral treaties to be signed with Hungary's neighbors. Keleti
said the air defense accord signed on 23 July with Slovakia was
meant to be a confidence-building measure and that he would next
meet his Romanian counterpart Gheorghe Tinca on 30 July in Gyula,
Hungary to discuss bilateral military cooperation. Alfred Reisch,
RFE/RL, Inc.



[As of 1200 CET]
Compiled by Vladimir Socor and Dan Ionescu
Copyright 1994, RFE/RL, Inc. All rights reserved.