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Originally Processed With FOIA(s):
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MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
Series:
Speech File Draft Files
Subseries:
Chron File, 1989-1993
OA/ID Number:
13495
Folder ID Number:
13495-005
Folder Title:
Karl Marx University 7/12/89 [1]
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Shelf:
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25
6
4
1
Determined To Be an Administrative
Marking Per E.O. 12356 Sec. 1.1 (a)
CONFIDENTIAL PM 9/27/04
CLASSIFICATION
CIRCLE ONE BELOW
MODE
PAGES /
IMMEDIATE
SECURE FAX 45
DTG 1015082
ADMIN FAX #
RELEASER
H
JUL 09
PRIORITY
ROUTINE
FROM/LOCATION
1. Philip zelikow
TO/LOCATION/TIME OF RECEIPT
3. 2. 1. AMB. DR. COND, BLACKWILL Rice /warsaw
4.
5.
6.
7.
INFORMATION ADDEES/LOCATION/TIME OF RECEIPT
1.
2.
SPECIAL INSTRUCTIONS/REMARKS:
Deliver ASAP.
CONFIDENTIAL
CLASSIFICATION
PG.02
21:11 68 INF 01 NOW
WM IDENTIAL
Sentences on CFE for use in Karl Marx University speech
One of the key skepo in moving beyond containment IS easing
INSERT
I place a high priority on steps to ease the military
confrontation in Europe. To this end, the NATO allies joined, at
*
the May Summit meeting, in my proposal of a comprehensive
an anitiative
#1"
conventional arms control initiative that would cut the numbers
of tanks, armored troop carriers, artillery, combat aircraft,
attack helicopters, and US and Soviet troops stationed on foreign
as well as
soil in Europe all to a lower, equal levels. The We said we were
ready to move fast. The Western allies promised that we would be
ready to table the details of our new proposal at the negotiating
H2"
table in Vienna by early September. I am pleased to be able to
announce today that we will do even better than that. Tomorrow,
in Vienna, NATO will [present] follow through with the specifics on its
be
proposal. The issues may be tought complex, but we are
working, day and night, to get a solid, historic agreement to
strengthen stability in Europe, and get it soon.
Determined To Be an Administrative
Marking Per E.O. 12356 Sec. 1.1 (a)
CONFIDENTIAL
sa'nd
11:11
68
Inn
at
NOT
given to Hogher
Document No.
7/6/89 12:25
5228
WHITE HOUSE STAFFING MEMORANDUM
6/30/89
7/3/89 5:00 PM
DATE:
ACTION/CONCURRENCE/COMMENT OUE BY:
PRESIDENTIAL REMARKS: KARL MARX UNIVERSITY
SUBJECT:
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
ROGERS
BREEDEN
CARD
WINSTON
CICCONI
PINKERTON
DEMAREST
FITZWATER
GRAY
HAGIN
REMARKS:
Please forward any comments directly to Chriss Winston, Rm.
122, x2930, no later than 5:00 Monday, July 3, 1989, with an
info copy to my office.
RESPONSE:
James W. Cleconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
NATIONAL SECURITY COUNCIL
TIME STAMP URGENT
EXECUTIVE SECRETARIAT STAFFING DOCUMENT
89 JUN 30 P6: 18
SYSTEM LOG NUMBER:
5228
ACTION OFFICER:
RICE
DUE: 3:30pm 3J4L
Prepare Memo For Scowcroft/Gates
Appropriate Action
Prepare Memo For Cicconi
Prepare Memo for Hughes
Prepare Memo
to
CONCURRENCES/COMMENTS*
PHONE* to action officer at ext. 3912
FYI
FYI
FYI
Basora
Lampley
Rademaker
Beers
Leach
Reiss
Blackwill
Levin
Rice
Briggs
Lewis
Rodman
Brooks
Mahley
Rostow
Charles
Mandel
Salvetti
Coulson
McCue
Snider
Deal
Melby
Tilley
Donley
Menan
Tobey
Dyke
Miller
Welch
Ebner
Miskel
Whitley
Grant
Needels
Working
Haass
Paal
Zelikow
Hoffmann
Pacelli
Hutchings
Passage
Jackson
Popadiuk
LaMagna
Porter
Kanter
Pryce
INFORMATION
Hughes
Gates (advance)
Exec. Sec. Desk
Scowcroft (advance)
Secretariat
SITTMAN
COMMENTS
Logged By CDM
Return to Secretariat
/
Davis/Martin
June 29, 1989
Title: Hungary
Draft: One
PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY
(Date, Time)
Ladies and gentlemen, Dr. Csaki (CHAH-kee). It's a pleasure
to be back in Budapest, and I am proud to be the first American
President to visit Hungary.
Some might find it ironic that I am speaking at a university
named after Karl Marx. ((And I have to admit, from my vantage
point, he does seem to be staring right at me
)) But those
who know this great university know just how fitting this forum
is for an American President to address the people of Hungary.
After all, it is said that Tramline Number Two runs the
nation, since it originates at Karl Marx and makes stops at the
National Center, Parliament and the Central Committee. Many
great Hungarian leaders have also moved along this same route,
NAY-met
among them Miklos Nemeth (Namath) and Zsigmond (Zig-mund) Jarai
(JAR-ree). But before any of them, there was a teacher at Karl
Marx University, and his name was Imre ((EEMH-ray) Nage (NAZH).
funeral
As his slow ^ procession moved through Heroes' any) Square, the
R
few
weeks
A
rising voice of Hungary was heard in the singing of the Szozat
(SO-zat). And in this simple, somber reburial, the world saw
something more than a dignified act of reconciliation. We
witnessed an act of truth. It is on this foundation of truth,
[one] more solid than stone, that Hungarians have begun to build a
2
2
new future
a generation waited to honor his courage; may a
hundred generations remember it.
While Hungary rediscovers its natural role in the affairs of
the world once again looks to you for inspiration.
Europe, America is rediscovering you. One of the ((bestselling))
2
non-fiction books in my country today is entitled Budapest 1900.
Dr. John Lukacs lovingly describes the Budapest of memory
( (Quote to come))
This was a city that rivaled Paris in its splendor, Vienna
in its music and London in its literature. This was a center of
learning that enlightened the world, and gave America one kind of
genius in Joseph Pulitzer, and another in Bela Bartok. But for
decades, this great city, this great nation, so central to the
continent in every respect, was torn from Europe and the West.
But the city and country I see today is again opening to the
West, again becoming a leading light in European culture. I see
people in motion. I see color and creativity replacing grey
conformity. I sense an atmosphere that is electric, alive with
optimism. There is a new spirit of experimentation -- of making
This is happening because your people and your leaders
a new vegianing.
are no. afraid
government and opposition alike have the courage to break with
the past, to act in the spirit of truth. And what better example
than this ironic fact : Karl Mary University ha > dropped
of thio of could there be than one simple facto Karl Marx University
Das Kapital from its required reading list.
has dropped Das Kapital from its required reading list
]
Karl Marx traced only one thread of human existence, and
missed the rest of the tapestry the colorful and varied
3
3
tapestry of civilization. Marx regarded Man as an economic
being. But Man is more than that.
He is artistic Man. He has an innate need to create and
enjoy beauty. He is a loving member of a family, and a loyal
patriot to his people. And Man is something else which cannot be
denied
he is a creature of God
The creative genius of the Hungarian people, long
suppressed, is again flourishing in your schools, your
businesses, your churches. This is more than a fleeting season
of freedom. It's a rebirth, a Renaissance of Hungary.
Voices long stilled are being heard again. An independent
daily newspaper is now sold on the streets. Commercial radio and
television stations, financed by American companies, will soon
broadcast everything from the news
to Huey Lewis and the
News. And [even] Radio Free Europe is opening its first Budapest
bureau.
along your border with Austria, suched wire is
being removed barbed wire, the Symbol of Europe diagion
More than one hundred thousand Americans visited Hungary
last year -- and more than 20 000 Hungarians have come to
of separation from the rest of Europe
America. This very university operates exchange programs with 23
U.S. schools. For the first time, the Iron Curtain has begun to
part. Hungary is changing the world.
also
The Soviet Union has withdrawn many troops, which I take as
of overcomers the decision of Europe.
a first sign that Moscow truly respects your severeignty. And as
leaders
they leave, let the Soviets know they have everything to gain,
and nothing to lose or fear, from peaceful change. [Hor should we
4
4.
We can work together to move beyond containment, beyond the
Cold War.
But all of these developments, as significant as they are,
pale before this --- Hungary is at the threshold of great and
historic change. You are writing a new consitution -- a real
constitution -- and you are moving toward democratic, multiparty
elections.
This is possible because brave men and women have formed
opposition parties. And this is possible because Hungarian
leaders are showing the ultimate political courage -- the courage
to submit their names before the people.
BF.
Hungary is embarking on an odyssey of change. I am here to tell
you that the United States is with you.
We want to help you
build an alternative future -- a democratic future.
We are ready to help promote lasting change in Hungary in three
vital spheres -- economics, the creation of democratic
instituions, and the envrionment.
Last Thursday, before leaving Washington, I hosted a White
House Symposium on Eastern Europe. I spoke to leaders fromt
he
American private sector -- from business, education, labor and
other fields -- and I urged them to be involved in Hungary, to
help Hungary build its democratic future. Their response was
encouraging. America will be involved.
INVESTING IN HUNGARY
The United States believes aid should accelerate change, not
delay it. So this is our guiding principle -- the united States
offers aid not to prop up the status quo, but to propel reform.
the
4(a)
Of course, the dead weight of the past still burdens Hugnarian
enterprise. The remnants of the Stalinist economy, with its
huge, inefficient industrial plants; the bewildering price
system no one understands; the massive subsidies that cloud
economic decisions -- all of this slows what you could otherwise
achieve. It's an economic Rubik's Cube that defies solution.
(5)
5
5
And, ultimately, it's a burden to be discarded. To make the
transition to a market economy will test your mettle as a people.
The prices of some commodities will rise. Some inefficient
factories will close. Hard choices already await you. But the
creative drive of the people, once unleashed, will create a
momentum of its own. This will eventually bring you something
each of
greater than the riches you will create. It will give you
control over your destiny
a Hungarian destiny.
The Hungarian government has already started to leave the
business of running shops to shopkeepers and farms to farmers.
As you change, so will you integrate into the world economy.
Just look to the West of the Danube -- your European neighbors
are forming a single market. Soon you will have the chance to
trade with this new economic colossus. But the United States
will also be your partner in this transformation to a successful
1
NEERT
competitive economy.
Se with trade in mind, once your future Parliament pener legalizes
Third,
enigration legislation proposednum your Couneilief ministers,
the free movement of its citizens, I will inform Congress that
in compliance
our
Hungary will then
Hungary is complying with the 1974 Trade Act. This will entitle
quality for
you to the maximum most-favored nation tariff status possible
under U.S. law. Simply put, the largest single market in the
world is opening its doors to you.
Fouith,
and
access to out
America is also prepared to Include Hungary in the
sizer: taiff
generalized system of preferences, which provides duty free entry
" geneticicing
for certain goods. Bungary can and should -- develop the same
/
6
NATIONAL SECURITY COUNCIL
5-Jul-1989 16:45 EDT
CONFIDENTIAL
MEMORANDUM FOR:
Condoleezza Rice
(RICE)
FROM:
Robert L. Hutchings
SEWRITE FROM m DDDLE
(HUTCHINGS)
OF PAGE 5 ON
SUBJECT:
KarlMarx
First, as I announced in Warsaw, I will propose at the Paris
Economic Summit the formation of a Consortium for Poland and
Hungary, which will coordinate the economic and technical
assistance programs of our Summit partners in support of your
reforms. And we need to take account of the de Herent
decome thations in the two countries : our coordinated for progra
Second, I will ask the U.S. Congress to authorize a $25
million grant to establish a Hungarian-American Enterprise
will)be
aimed.
a
Foundation to capitalize and invigorate the Hungarian private
meen,
sector. I will also encourage parallel efforts from the other
your
needs
nations of the Economic Summit.
Third, once your Parliament passes the new emigration
legislation proposed by your Council of Ministers, I will inform
our Congress that Hungary is in full compliance with our 1974
Trade Act. Hungary will then qualify for the maximum
most-favored-nation tariff status possible under U.S. law. Simply
put, the largest single market in the world is opening its doors
to you.
Fourth, America is prepared to provide Hungary access to our
2
7
Generalized System of Preferences, which offers selective tariff
relief for beneficiary countries.
Fifth, I am pleased to note the formation of the Hungarian
Enterprise Group, which will match venture capital, both foreign
and Hungarian, with entrepreneurs -- the small businessmen and
-women with grand ideas. Some of you here today may have a few
grand ideas of your own. Perhaps you will benefit from just this
kind of collaboration.
Sixth, we have concluded a draft agreement to authorize the
Overseas Private Investment Corporation to operate in Hungary.
Once our Senate passes enabling legislation, OPIC will be able to
provide insurance to encourage American investment in private
enterprises in Hungary. Many innovate programs are underway
already. Consider, for example, the American investment company
Bears-Stearn, which has established a special "Hungary Fund,"
which pools resources to purchase shares in Hungarian companies.
What does private investment mean for Hungary? restorday at
Kossuth Square, I quoted the words of that great Hungarian
patriot. But it was another Hungarian patriot, a contemporary of
Kossuth, Count Szechenyi SAY chaney), who coined a phrase in his
great work on economics:- Hungary was not but will be of this
are
ains
Hungary
will
be
great
again
3
DEMOCRATIC CHANGE
But what Hungary seeks is not measured just in economic
terms. And the assistance we offer is not only economic. We want
to help you as you seek an alternative future for your country --
a democratic alternative.
3
8
also
The United States is committing more than $6 million for
to Provite cultural a education appointies
initiatives to support democratic change in Eastern Europe. We
mdu availa)(
will provide funds for a series of major new U.S.-Hungarian
exchange programs -- among Congressmen and legislative experts,
among labor and business leaders, among experts and practitioners
in the field of law, among community leaders, educators, and young
people. We are creating dozens of fellowships whereby Hungarians
can study at American universities, and we will fund endowed
chairs in American studies at your universities. And books --
many thousands of them -- to fill the shelves of your American
Management Institute and the libraries of schools and universities
across Hungary.
The United States will also open, within the next two years,
an America House in the center of Budapest. The celebrated
American architect Robert Stern will design the plans for this
center, which will be an open house of books, magazines, and
videocassettes -- and open house of ideas.
I am pleased to announce that the Peace Corps will, for the
first time, operate in a European country. And our Peace Corps
instructors will come DO Budapest and all 19 counties to teach
English. As students, you know that English is the language of
world business, the key to successful commerce from Hong Kong to
Toronto. It also opens the doors to science, technology, and the
arts. It is among our most valuable exports.
ENVIRONMENTAL INITIATIVE
To build democratic institutions, to embark on a path of
economic revitalization -- these are the elements of Hungary's
4
9
future. But to realize a promising future, we must work together
to protect our basic common possession -- the environment. Six
weeks ago, in Mainz, I proposed cooperation between East and West
on environmental issues. What a tragedy it would be if your
continent were again spoiled, this time not by war, but by a more
subtle danger -- that of poisoned rivers and acid rain.
Hungary has led eastern and central Europe in addressing the
concerns of its citizens for cleaner air and water. And you are
leading the way in environmental agreements with the West.
( (ENVIRONMENTAL INITIATIVE TO COME) )
Pollution is no respecter of borders. Let us work together
to save our common inheritance.
MEETING THE FUTURE
In economic reform and democratic change, in cultural and
environmental cooperation, there are great opportunities -- and,
yes, great challenges. Hungary has. a lot of work ahead; so do the
United States and Hungary, working together to build a better
future -- a democratic future.
Your challenge is enormous and historic. No nation has yet
attempted what you are now attempting: to build political
democracy and decentralized economic enterprise on the ruins of a
failed Stalinist system.
Given the opportunity to show your characteristic initiative,
creativity, and resourcefulness I believe that the Hungarian
people can meet the challenge. You stand on the threshold of a
new era of economic development and democratic change.
I believe you are ready to meet the future. I see a country
5 10
well on the way. I see a country rich in human resources and rich
in the moral courage of its people. I see a nation transcending
its past and reaching out to its destiny. I congratulate you for
having come so far.
Let us be equal to the opportunity that lies before us. Let
us have history write of us that we were the generation that made
Europe whole and free.
Thank you.
4
fear new thinking from EF. Gorbacher] We can work together to
move beyond containment, beyond the Cold War.
But all of these developments, as significant as they are,
steat and
pale before this -- Hungary is at the threshold of doing what no
misturic change. you are wring s new constitution a real
other Communist power has done in History. You are going to
become the first Warsaw Pact nation to ever hold a truly free
constitution and non are moving howard demonshe multiparhy
elections
election.
This is possible because brave men and women have formed
opposition parties. And this is possible because Hungarian
leaders are showing the ultimate political courage -- the courage
to submit their names before the people.
We are ready to help promote lasting change in Hungary in
three vital spheres -- economics, cultural exchange and the
democratic change,
environment. Hungary is embarking on an odyssey of change. I am
here to tell you that the United States is with you. We want to help
you build an
alternative futur
a democrate
INVESTMENT IN HUNGARY
alternative
The United States believes aid should accelerate change, not
delay it. So this our guiding principle -- the United States
offers aid not to prop up the status quo, but to propel reform.
Of course, the dead weight of the past still burdens
Hungarian enterprise. The remnants of the Stalinist economy,
with its huge, inefficient industrial plants; the bewildering
price system no one understands; the massive subsidies that cloud
economic decisions -- all of this slows what you could otherwise
achieve. It's an economic Rubik's Cube that defies solution.
white
Last
Thersday,
before
ospohe
labor a
House
is mas Symps and T, sector them to be involveding thong.
in help
Univery's demosiate future. Their response was encounting they be
6
trade access to the A rican market that your Western neighbors
anjoy.
The United States will offer some government assistance,
including an entrepreneurial fund for economically depressed
regions of your country. In years past, loans were written and
accepted with little thought paid to their utility. We've
learned that massive government and institutional loans hobble
whole nations with debty while private investment liberates
creditor and debtor alike. The U.S. government can and will
match American private sector investment in Hungary investment
where it counts, in Hungarian factories, products and jobs.
Fifth,
I am pleased to note the recent U.S. Hungarian agreement to
premete the formation and development of small, private
formation of
businesses all across your country membled the Hungarian
Enterprise Group, this center will match venture capital, both
foreign and Hungarian, with entrepreneurs the small
businessmen and -women with the grand ideas. Some of you here
today may have a few grand ideas of your own. Perhaps you will
benefit from just such a collaboration.
Sixth, name wreduded = draft a rement,
to
We will seen authorize the Overseas Private Investment
Corporation ta encourage American investment in private
enterprises in Hungary. Se far, however, little encouragement
much progres has been make elseady
has been needed. Consider the American investment company,
Bears-Stearn, which has already established a special "Hungary
Fund." This private pool of investment will purchase shares in
Their
Hungarian companies, helping to develop a Hungarian stock market.
white House Symposism on chekin Enjoye opine
Last Thursday, before learn Wash gton. + hold a a
leader from the American purch meets from business, them
advication, labor, and other griends and I urgea
- be engaged in Hungary, to help build Hingarys dminate
7
What does private investment mean for Hungary? Yesterday,
at Kossuth Square, I quoted the words of that great Hungarian
patriot. But it was another Hungarian patriot, a contemporary of
Kossuth, Count Szechenyi (Say-chaney), who coined a phrase in his
great work on edonomics: "Hungary was not, but will be." Of this
we are sure -- Hungary will be great again.
CULTURAL EXCHANGE
These are the economic proposals I will discuss with your
leaders. But I am also here to meet the Hungarian people. I
hope this visit leads to a wider exchange between East and West.
Let our scientists, our artists, our environmentalists share the
knowledge that can benefit us all. Let our soldiers and
statesmen discuss peace and our students discuss the future.
In fact, our student exchange programs are already the most ensimonsly
successful. They have grown fast and can still accommodate
thousands more. For this reason, I am pleased to announce that
the United States Information Agency is going to initiate six new
youth exchange programs in Hungary. To the students here today,
I want you to know that the doors of America's universities are
open to you.
THE am pleased to announce two agreements with your
government was on tourism and civilian air exchange to come))
The United States will also open, within the next two years,
an America House in the center of Budapest. The celebrated
American architect Robert Stern will design the plans for this
It also opens The awars TV
science, technology , and the
8
arts. It is one if our most
valuable exprrts.
center, which will promote bilateral trade by helping Hungarians
to learn American culture.
And when it comes to the language of America, the teaching
of English is one of our most popular exports. As students you
langue
know that English is the lingua franca of world business, the key
to elinching deals from Hong Kong to Toronto. so to give
Hungarians greater entree into the global marketplace, I am
pleased to announce that the Peace Corps will, for the first
time, operate in a European country. And our Peace Corps
instructors will come to Budapest and all 19 counties to teach
English.
INITIATIVE
ENVIRONMENTAL EXCHANGE
To learn a language, to start a business, is to embark on a
great adventure. But to fulfill a promising future, we must also
protect our basic common possession -- the environment. Six
weeks ago, in Mainz, I proposed cooperation between East and West
on environmental issues. What a tragedy it would be if your
continent was again spoiled, this time not by war, but by a more
subtle and insidious danger -- that of poisoned rivers and acid
rain.
Hungary has led Eastern and Central Europe in addressing the
concerns of your citizens for cleaner air and water. And you are
leading the way in environmental agreements with the West.
[The
U.S. Environmental Protection Agency and the Hungarian government
9
have just agreed on new programs for exchanges and joint training
of environmental experts
,
( (Substance to come) )
Pollution is no respecter of borders. Let us work together
to save our common heritage.
In economics culture and the environment, we have much to
share and learn from each other. The United States is especially
determined to stand by Hungary as you meet an enormous challenge.
No Communist nation has yet attempted what Hungary is already
doing -- to build democracy and a free market
Substance on Democracy consortium/help from great parties
of the West to come))
I see a great Hungarian future in the bright faces of your
students But not all young people in the East Bloc have as much
freedom as you do to plan their future. Certainly not your
brothers and sisters in Transylvania.
Your press recently reported that a Romanian girl was lost
in the Maros River. #e don't know exactly sure how she died.
But we know that if she had been traveling from Hungary to
Austria, she would have received nothing more than a friendly
wave from the border guard. But she attempted to cross the
Maros, and paid with her life
Her two brothers made it
across safely.
We do not know the torments that drove her to risk her life.
But we do know her heart. It is the heart of Anne Frank and
10
Hertelendy (HERT-IIndy) Jamos (Yamosh). It is the heart of youth
determined to live in freedom
Throughout the Communist world today, as a younger
generation prepares to assume power, a great debate is underway.
In this debate, Moscow advocates limited political freedom, but
without economic rights. Beijing practices limited economic
freedom, but without political liberty. Where are political and
economic liberty peacefully advancing together? In Hungary.
The people of Hungary know it is not enough to let men and
women purchase what they want or cast a symbolic vote. They must
be allowed to say what they believe. They must be allowed to
choose their government. Limited freedom, whether it is economic
or political, will not provide sufficient TOOM for the restless
human spirit.
Benjamin Franklin, the sage of the American Revolution, said
that love of liberty and the rights of man should someday become
so widespread, "that a philosopher may set his foot upon anywhere
on the surface (of the earth) and say: 'this is my country.
Because of your courage, that is the Hungary we can see
before us; a better Hungary, a greater Hungary, a place any
countryman of freedom could call home.
Thank you and God bless you all.
#
#
#
- 2 -
AS HIS FUNERAL PROCEEDED IN HEROES' SQUARE A FEW
WEEKS AGO, THE RISING VOICE OF HUNGARY WAS HEARD
RECITING THE SZOZAT [SO-ZAT]. AND IN THIS SIMPLE,
SOMBER CEREMONY, THE WORLD SAW SOMETHING MORE THAN A
DIGNIFIED ACT FAMAGE OF RECONCILIATION. WE WITNESSED AN ACT
OF TRUTH. IT IS ON THIS FOUNDATION OF TRUTH, MORE
SOLID THAN STONE, THAT HUNGARIANS HAVE BEGUN TO BUILD A
NEW FUTURE
...
A GENERATION WAITED TO HONOR IMRE
(EEMH-RAY) NAGY'S (NUDGE'S) COURAGE; MAY A HUNDRED
GENERATIONS REMEMBER IT.
WHILE HUNGARY REDISCOVERS ITS NATURAL ROLE IN THE
AFFAIRS OF EUROPE, THE WORLD AGAIN LOOKS TO YOU FOR
INSPIRATION. A POPULAR NON-FICTION BOOK IN MY COUNTRY
TODAY IS ENTITLED BUDAPEST 1900. DR. JOHN LUKACS
LOVINGLY DESCRIBES THE BUDAPEST OF MEMORY, WITH ITS
PROUD STOCK EXCHANGE AND GREAT OPERA; A TIME WHEN
EUROPE'S FIRST ELECTRIC SUBWAY RAN UNDERNEATH THE
HANDSOME SHOPS OF ANDRASSY AVENUE.
- 3 -
A CITY THAT RIVALED PARIS IN ITS SPLENDOR
VIENNA IN ITS MUSIC
LONDON IN ITS LITERATURE. A
CENTER OF LEARNING THAT ENLIGHTENED THE WORLD, AND GAVE
AMERICA ONE KIND OF GENIUS IN JOSEPH PULITZER, AND
ANOTHER IN BELA BARTOK. BUT FOR FOUR DECADES, THIS
GREAT CITY, THIS GREAT NATION, so CENTRAL TO THE
CONTINENT IN EVERY RESPECT, HAS BEEN SEPARATED FROM
EUROPE AND THE WEST.
V TODAY HUNGARY IS OPENING AGAIN TO THE WEST --
BECOMING A BEACON OF LIGHT IN EUROPEAN CULTURE.
I SEE
PEOPLE IN MOTION. I SEE COLOR, CREATIVITY,
EXPERIMENTATION. I SEE A NEW BEGINNING FOR HUNGARY
OF THISCITY, THE VERY ATTNOSPHERE
THE VERY ATMOSPHERE OF BUDAPEST IS ELECTRIC, ALIVE
WITH OPTIMISM.
YOUR PEOPLE AND YOUR LEADERS -- GOVERNMENT AND
OPPOSITION ALIKE -- ARE NOT AFRAID TO BREAK WITH THE
PAST, TO ACT IN THE SPIRIT OF TRUTH. AND WHAT BETTER
EXAMPLE OF THIS COULD THERE BE THAN ONE SIMPLE FACT:
KARL MARX UNIVERSITY HAS DROPPED DAS KAPITAL FROM ITS
REQUIRED READING LIST
- 4 -
SOME HISTORIANS ARGUE THAT MARXISM AROSE OUT OF A
HUMANE IMPULSE. BUT KARL MARX TRACED ONLY ONE THREAD
OF HUMAN EXISTENCE, AND MISSED THE REST OF THE TAPESTRY
HE
-- THE COLORFUL AND VARIED TAPESTRY OF HUMANITY. MARX
REGARDED MAN AS HAPLESS --UNABLE TO SHAPE HIS
ENVIRONMENT OR DESTINY. BUT MAN IS NOT DRIVEN BY
IMPERSONAL ECONOMIC FORCES. HE ) IS NOT SIMPLY AN OBJECT
ACTED UPON BY VA MECHANICAL "LAWS" OF HISTORY.
RATHER, MAN IS IMAGINATIVE AND INVENTIVE. HE IS
P
ARTISTIC, WITH AN INNATE NEED TO CREATE AND ENJOY
BEAUTY. HE IS A LOVING MEMBER OF A FAMILY, AND A
LOYAL PATRIOT TO HIS PEOPLE. MAN IS DYNAMIC,
DETERMINED TO SHAPE HIS OWN FUTURE.
THE CREATIVE GENIUS OF THE HUNGARIAN PEOPLE, LONG
SUPPRESSED, IS AGAIN FLOURISHING WERE IN YOUR SCHOOLS, YOUR
BUSINESSES, YOUR CHURCHES. THIS IS MORE THAN A
FLEETING SEASON OF FREEDOM. IT IS HUNGARY RETURNING TO
ITS (NORMAL TRADITIONAL VALUES. IT IS HUNGARY RETURNING HOME.
- 5 -
VOICES LONG STILLED ARE BEING HEARD AGAIN. AN
INDEPENDENT DAILY NEWSPAPER IS NOW SOLD ON THE STREETS.
COMMERCIAL RADIO AND TELEVISION STATIONS WILL BROADCAST
EVERYTHING FROM THE NEWS
TO THE MUSIC OF STEVIE
WONDER. AND RADIO FREE EUROPE IS OPENING ITS FIRST
EAST EUROPEAN BUREAU RIGHT HERE IN BUDAPEST.
ALONG YOUR BORDER WITH AUSTRIA, THE UGLY SYMBOL OF
EUROPE'S DIVISION AND HUNGARY'S ISOLATION IS COMING
DOWN, AS THE BARBED WIRE FENCES ARE ROLLED AND STACKED
INTO BALES. FOR THE FIRST TIME, THE IRON CURTAIN HAS
your GREAT COUNTRY
BEGUN TO PART. AND HUNGARY IS LEADING THE WAY.
A
THE SOVIET UNION HAS WITHDRAWN TROOPS, WHICH I
ALSO TAKE AS A STEP IN OVERCOMING EUROPE'S DIVISION.
AND AS THOSE FORCES LEAVE, LET THE SOVIET LEADERS KNOW
THEY HAVE EVERYTHING TO GAIN, AND NOTHING TO LOSE OR
FEAR, FROM PEACEFUL CHANGE. WE CAN WORK TOGETHER TO
MOVE BEYOND CONTAINMENT, BEYOND THE COLD WAR.
AND AMDETERMINED THAT WE WILL)
- 6 -
ONE OF THE KEY STEPS IN MOVING BEYOND CONTAINMENT
IS EASING THE MILITARY CONFRONTATION IN EUROPE. TO
THIS END, THE NATO ALLIES JOINED, AT THE MAY SUMMIT
MEETING, IN MY PROPOSAL OF A COMPREHENSIVE CONVENTIONAL
ARMS CONTROL INITIATIVE - -- AN INITIATIVE THAT WOULD CUT
THE NUMBERS OF TANKS, ARMORED TROOP CARRIERS,
ARTILLERY, COMBAT AIRCRAFT, ATTACK HELICOPTERS, AS WELL
AS U.S. AND SOVIET TROOPS STATIONED ON FOREIGN SOIL IN
EUROPE - ALL TO LOWER, EQUAL LEVELS.
THE ISSUES MAY BE COMPLEX, BUT WE ARE WORKING, DAY
AND NIGHT, TO GET A SOLID, HISTORIC AGREEMENT TO
STRENGTHEN STABILITY IN EUROPE AND REDUCE THE RISK OF
WAR. AND WE ARE DETERMINED TO GET IT SOON.
A
LNOW, THERE IS NO MISTAKING THE FACT THAT WE ARE ON THE
THRESHOLD OF A NEW ERA. AND THERE IS ALSO NO MISTAKING
THE FACT THAT HUNGARY IS AT THE THRESHOLD OF GREAT AND
HISTORIC CHANGE. YOU ARE WRITING A REAL CONSTITUTION -
- AND YOU ARE MOVING TOWARD DEMOCRATIC, MULTI-PARTY
ELECTIONS.
- 7 -
THIS IS PARTLY POSSIBLE BECAUSE BRAVE MEN AND
WOMEN HAVE FORMED OPPOSITION PARTIES. AND THIS IS
POSSIBLE BECAUSE HUNGARIAN LEADERS ARE GOING TO SHOW
THE ULTIMATE POLITICAL COURAGE -- THE COURAGE TO SUBMIT
TO THE CHOICE OF THE PEOPLE IN FREE ELECTIONS.
I
BUT TO SUCCEED IN REFORM, YOU WILL NEED PARTNERS -
- PARTNERS TO HELP PROMOTE LASTING CHANGE IN HUNGARY.
AND
today
I AM HERE TO OFFER HUNGARY THE PARTNERSHIP OF THE
UNITED STATES OF AMERICA.
AA
THREE VITAL SPHERES STAND OUT IN OUR PARTNERSHIP -
- ECONOMICS, THE ENVIRONMENT, AND DEMOCRATIC AND
CULTURAL EXCHANGE.
INVESTMENT IN HUNGARY
THE UNITED STATES BELIEVES IN THE ACCELERATION OF
PRODUCTIVE CHANGE, NOT IN ITS DELAY. SO THIS OUR
GUIDING PRINCIPLE -- THE UNITED STATES WILL OFFER
ASSISTANCE NOT TO PROP UP THE STATUS QUO, BUT TO PROPEL
REFORM.
- 8 -
OF COURSE, THE WEIGHT OF THE PAST STILL BURDENS
HUNGARIAN ENTERPRISE. THERE ARE REMNANTS OF THE
STALINIST ECONOMY - -- HUGE, INEFFICIENT INDUSTRIAL
HARDFOR ANYONETO
PLANTS; A BEWILDERING PRICE SYSTEM NO ONE UNDERSTANDS
THE MASSIVE SUBSIDIES THAT CLOUD ECONOMIC DECISIONS --
ALL OF THIS SLOWS WHAT YOU COULD OTHERWISE ACHIEVE.
IT S AN ECONOMIC RUBIK'S CUBE THAT DEFIES SOLUTION.
TO MAKE THE TRANSITION TO A PRODUCTIVE ECONOMY
WILL TEST YOUR METTLE AS A PEOPLE. THE PRICES OF SOME
COMMODITIES MAY RISE. SOME INEFFICIENT FACTORIES WILL
CLOSE. BUT THE HUNGARIAN GOVERNMENT IS INCREASINGLY
THE
THE
LEAVING THE THE BUSINESS OF RUNNING SHOPS TO SHOPKEEPERS,
THE
AND FARMS TO FARMERS. AND THE CREATIVE DRIVE OF THE
PEOPLE, ONCE UNLEASHED, WILL CREATE A MOMENTUM OF ITS
OWN. THIS WILL BRING YOU A GREATER TREASURE THAN
SIMPLY THE RICHES YOU WILL CREATE. IT WILL GIVE EACH
OF YOU CONTROL OVER YOUR DESTINY
A HUNGARIAN
A
DESTINY.
AND, AS I SAID, THE UNITED STATES WILL BE YOUR
PARTNER IN THIS TRANSFORMATION TO A SUCCESSFUL ECONOMY.
- 9 -
ATTHC WHITEHOUSE
LAST THURSDAY, I INVITED AMERICAN LEADERS FROM
UP THC WH
BUSINESS, EDUCATION, LABOR AND OTHER FIELDS -- TO COME
TO THE WHITE HOUSE AND DISCUSS THE NEW PRIVATE SECTOR
OPPORTUNITIES OPENING UP IN HUNGARY. THEIR RESPONSE
WAS ENTHUSIASTIC. THIS WAS ESPECIALLY TRUE OF
HUNGARIAN-AMERICANS, so PROUD TO BE BUILDING A BRIDGE
BETWEEN THEIR NEW COUNTRY AND THEIR MOTHERLAND. AS
LONG AS OUR TWO GOVERNMENTS EASE THE WAY, THE PEOPLE OF
THE PEOPLE CANDO
AMERICA AND HUNGARY CAN DO THE REST. THE REST.
AND
IT IS IN THIS SPIRIT THAT I ANNOUNCE THE FOLLOWING
MEASURES.
FIRST, AS I SAID IN WARSAW, I WILL PROPOSE AT THE
PARIS ECONOMIC SUMMIT CONCERTED WESTERN ACTION FOR
POLAND AND HUNGARY, TO BACK YOUR REFORMS WITH ECONOMIC
AND TECHNICAL ASSISTANCE FROM THE SUMMIT PARTNERS
A
OF
COURSE, OUR EFFORTS FOR HUNGARY WILL BE TARGETED TO
YOUR NEEDS.
- 10 -
AND
SECOND, I WILL ASK THE U.S. CONGRESS TO AUTHORIZE
A $25 MILLION FUND AS A SOURCE OF NEW CAPITAL TO
INVIGORATE THE HUNGARIAN PRIVATE-SECTOR. I WILL ALSO
ENCOURAGE PARALLEL EFFORTS FROM THE OTHER NATIONS OF
THE ECONOMIC SUMMIT.
THIRD, ONCE YOUR PARLIAMENT PASSES THE NEW
EMIGRATION LEGISLATION PROPOSED BY YOUR COUNCIL OF
MINISTERS, I WILL INFORM OUR CONGRESS THAT HUNGARY IS
IN FULL COMPLIANCE WITH THE JACKSON-VANIK AMENDMENT TO
OUR 1974 TRADE LAW. NO COUNTRY HAS YET BEEN RELEASED
FROM THE RESTRICTIONS OF THIS AMENDMENT. so I AM
PLEASED TO TELL YOU THAT HUNGARY WILL BE THE FIRST.
A
((PAUSE))
THIS ACTION WILL GIVE HUNGARY THE MOST
LIBERAL ACCESS TO THE AMERICAN MARKET FOR THE LONGEST
TERM POSSIBLE UNDER OUR LAWS.
D
FOURTH, AMERICA IS PREPARED TO PROVIDE YOUR
COUNTRY WITH ACCESS TO OUR GENERALIZED SYSTEM OF
PREFERENCES, WHICH OFFERS SELECTIVE TARIFF RELIEF.
SIMPLY PUT, THESE LAST TWO MEASURES WILL ALLOW YOU TO
TAKE ADVANTAGE OF THE LARGEST SINGLE MARKET IN THE
WORLD.
- 11 -
FIFTH, WE HAVE CONCLUDED A DRAFT AGREEMENT TO
OPIC we
AUTHORIZE THE OVERSEAS PRIVATE INVESTMENT CORPORATION call it,
TO OPERATE IN HUNGARY. ONCE OUR SENATE PASSES THE ENABLING
LEGISLATION, OPIC WILL BE ABLE TO PROVIDE INSURANCE TO
ENCOURAGE AMERICAN INVESTMENT IN PRIVATE ENTERPRISES IN
HUNGARY. THROUGH OPIC, AMERICAN BUSINESS EXECUTIVES
WILL SEE FIRSTHAND THE GREAT OPPORTUNITY OF HUNGARY.
PRIVATE INVESTMENT IS CRITICAL FOR HUNGARY. IT
MEANS JOBS, INNOVATION, PROGRESS. BUT MOST OF ALL,
PRIVATE INVESTMENT MEANS A BRIGHTER FUTURE FOR YOUR
CHILDREN; A BRIGHTER FUTURE FOR HUNGARY.
- 12 -
ENVIRONMENTAL INITIATIVE
YET ECONOMIC PROGRESS CANNOT BE AT THE EXPENSE OF
THE AIR WE BREATHE AND THE WATER WE DRINK. SIX WEEKS
AGO, IN MAINZ, I PROPOSED COOPERATION BETWEEN EAST AND
WEST ON ENVIRONMENTAL ISSUES. THAT IS WHY I WILL ASK
THE U.S. CONGRESS TO APPROPRIATE $5 MILLION TO
ESTABLISH AN INTERNATIONAL ENVIRONMENTAL CENTER FOR
\RIGHTHERE
CENTRAL AND EASTERN EUROPE, TO BE BASED IN BUDAPEST,
WHICH WILL BRING TOGETHER PRIVATE AND GOVERNMENT
EXPERTS AND ORGANIZATIONS TO ADDRESS THE ECOLOGICAL
AFTER ALL,
CRISIS OUR SHARED HERITAGE IS THE EARTH. AND THE
FATE OF THE EARTH TRANSCENDS BORDERS; IT IS* NOT JUST AN
EAST-WEST ISSUE.
HUNGARY HAS LED EASTERN AND CENTRAL EUROPE IN
ADDRESSING THE CONCERNS OF YOUR CITIZENS FOR CLEANER
AIR AND WATER. LAND NOW YOU CAN DO EVEN MORE, WORKING WITH
THE WEST TO BUILD A BRIDGE OF TECHNICAL AND SCIENTIFIC
COOPERATION.
- 13 -
ALONG THESE LINES, I AM ALSO PLEASED TO ANNOUNCE
THAT THE U.S. HAS PROPOSED AN AGREEMENT BETWEEN OUR TWO
COUNTRIES TO ESTABLISH SCIENTIFIC AND TECHNICAL
COOPERATION IN THE BASIC SCIENCES, AND IN SPECIFIC
AREAS, INCLUDING THE ENVIRONMENT, MEDICINE AND NUCLEAR
SAFETY.
DEMOCRATIC AND CULTURAL EXCHANGE
IT IS MY HOPE THAT THIS VISIT WILL ALSO LEAD TO A
WIDER EXCHANGE BETWEEN EAST AND WEST, SO OUR
SCIENTISTS, OUR ARTISTS AND OUR ENVIRONMENTALISTS CAN
LEARN FROM ONE ANOTHER
SO THAT OUR SOLDIERS AND
(GOBBLESSTHEM
STATESMEN CAN DISCUSS PEACE AND OUR STUDENTS CAN
1
1
DISCUSS THE FUTURE. ((PAUSE))
- 14 -
BUT TO DISCUSS ANYTHING REQUIRES A COMMON
THE
LANGUAGE
LANGUAGE. THE TEACHING OF ENGLISH IS ONE OF THE MOST
POPULAR AMERICAN EXPORTS. AS STUDENTS YOU KNOW THAT
ENGLISH IS THE LINGUA FRANCA OF WORLD BUSINESS, THE KEY
TO CLINCHING DEALS FROM HONG KONG TO TORONTO. so TO
OPEN THE GLOBAL MARKET TO MORE HUNGARIANS, I AM PLEASED
TO ANNOUNCE THAT THE PEACE CORPS WILL, FOR THE FIRST
TIME, OPERATE IN A EUROPEAN COUNTRY. AND OUR PEACE
CORPS INSTRUCTORS WILL COME TO BUDAPEST AND ALL 19
COUNTIES TO TEACH ENGLISH.
- 15 -
LAND
IN SUCH EXCHANGES, WE WANT TO HELP YOU IN YOUR
QUEST FOR A NEW BEGINNING AS A DEMOCRATIC HUNGARY. SO
THE UNITED STATES IS ALSO COMMITTING MORE THAN $6
?
MILLION TO CULTURAL AND EDUCATIONAL OPPORTUNITIES IN
EASTERN EUROPE. WE WILL MAKE AVAILABLE FUNDS FOR A
SERIES OF MAJOR NEW U.S. -HUNGARIAN EXCHANGE PROGRAMS --
AMONG CONGRESSMEN AND LEGISLATIVE EXPERTS, AMONG LTHE LABOR
AND BUSINESS LEADERS, AMONG THE LEGAL EXPERTS, AMONG
COMMUNITY LEADERS, EDUCATORS AND YOUNG PEOPLE. WE ARE
CREATING DOZENS OF FELLOWSHIPS TO ENABLE HUNGARIANS TO
STUDY AT AMERICAN UNIVERSITIES. AND WE WILL FUND
ENDOWED CHAIRS IN AMERICAN STUDIES AT YOUR UNIVERSITIES
...
AND BOOKS -- MANY THOUSANDS OF THEM -- TO FILL
THE SHELVES OF YOUR NEW INTERNATIONAL MANAGEMENT CENTER
AND THE LIBRARIES OF SCHOOLS AND UNIVERSITIES ACROSS
HUNGARY. A
THE UNITED STATES WILL ALSO OPEN, WITHIN THE NEXT
SEVERAL YEARS, AN AMERICA N HOUSE IN THE CENTER OF
BUDAPEST. A TODAY, THE CELEBRATED AMERICAN ARCHITECT
ROBERT STERN IS RELEASING HIS DESIGN FOR THIS CENTER,
WHICH WILL BE AN OPEN HOUSE OF BOOKS, MAGAZINES AND
VIDEOCASSETTES -- AN OPEN HOUSE OF IDEAS.
PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY
JULY 12, 1:15 P.M.
LADIES AND GENTLEMEN, DR. CSAKI (CHAH-KEE). IT'S
A PLEASURE FOR TO BE BACK IN BUDAPEST, AND I AM PROUD TO BE
BARB ME
Q
THE FIRST AMERICAN PRESIDENT TO VISIT HUNGARY.
SOME MIGHT FIND IT IRONIC THAT I AM SPEAKING AT A
UNIVERSITY NAMED AFTER KARL MARX. @Ad-Lib BUT THE FACT THAT I
AM HERE TODAY IS LESS A CAUSE FOR SURPRISE THAN PROOF
THAT AMERICA WELCOMES THE UNFETTERED COMPETITION OF
IDEAS. [AD-LiB]
THE UNIVERSITY'S PRINCIPAL TASK IS TO PROMOTE THIS
COMPETITION. THAT IS THE SPIRIT THAT BRINGS US
TOGETHER -- A SPIRIT THAT GUIDED A GREAT TEACHER AT
KARL MARX UNIVERSITY, WHOSE NAME WAS IMRE (EEMH-RAY)
NAGY (NUDGE). ((PAUSE))
- 16 -
CONCLUSION
AND
IN ECONOMIC REFORM AND DEMOCRATIC CHANGE, IN
CULTURAL AND ENVIRONMENTAL COOPERATION, THERE ARE GREAT
OPPORTUNITIES -- AND GREAT CHALLENGES. HUNGARY HAS A
LOT OF WORK AHEAD; (AND so DO THE UNITED STATES AND HUNGARY,
WORKING TOGETHER TO BUILD A BETTER FUTURE -- A DYNAMIC
FUTURE.
YOUR CHALLENGE IS ENORMOUS AND HISTORIC: TO BUILD
A STRUCTURE OF POLITICAL CHANGE AND DECENTRALIZED
ECONOMIC ENTERPRISE ON THE RUINS OF A FAILED STALINIST
SYSTEM.
GIVEN THE OPPORTUNITY TO SHOW YOUR CHARACTERISTIC
INITIATIVE, CREATIVITY AND RESOURCEFULNESS, I BELIEVE
THAT THE HUNGARIAN PEOPLE WILL MEET THE CHALLENGE. YOU
STAND ON THE THRESHOLD OF A NEW ERA OF ECONOMIC
DEVELOPMENT AND YES POLITICAL CHANGE.
Davis/Martin
July 8, 1989
Title: b:karl
Draft: Five
PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY
July 12, 1:15 p.m.
Ladies and gentlemen, Dr. Csaki (CHAH-kee) . It's a pleasure
to be back in Budapest, and I am proud to be the first American
President to visit Hungary.
Some might find it ironic that I am speaking at a university
named after Karl Marx. ((And I have to admit, from my vantage
point, he does seem to be staring right at me .)) But those
who know this great university know just how fitting this forum
is for an American President to address the people of Hungary.
After all, it is said that Tramline Number Two runs the
country, since its route joins business with academe - academe
with government. Many Hungarian leaders have also moved along
?
this same route, including Miklos (MEEK-losh) Nemeth (NAY-met).
But before any of them, there was a teacher at Karl Marx
University, and his name was Imre (EEMH-ray) Nagy (NUDGE).
((PAUSE))
funeral proceded in
As his slow reburial procession moved through Heroes'
Square 1 rising of Hungary was heard in the singing of
a few the weehs ago, voice reciting The Szozat.
the National Hymn And in this simple, somber ceremony, the
world saw something more than a dignified act of reconciliation.
We witnessed an act of truth. It is on this foundation of truth,
more solid than stone, that Hungarians have begun to build a new
SZOZAT
[SO-zat]
PRONANCIATION
2
future
a generation waited to honor Imre (EEMH-ray) Nagy's
(NUDGE'S) courage; may a hundred generations remember it.
While Hungary rediscovers its natural role in the affairs of
Europe, the world again looks to you for inspiration. A popular
non-fiction book in my country today is entitled Budapest 1900.
Dr. John Lukacs lovingly describes the Budapest of memory, with
its proud stock exchange and great opera; a time when Europe's
first electric subway ran underneath the handsome shops of
Andrassy Avenue.
A city that rivaled Paris in its splendor
Vienna in
its music
London in its literature. A center of learning
that enlightened the world, and gave America one kind of genius
in Joseph Pulitzer, and another in Bela Bartok. But for decades,
this great city, this great nation, so central to the continent
in every respect, was separated from Europe and the West.
Today Hungary is opening again to the West -- becoming a
leading light in European culture. I see people in motion. I
see color, creativity, experimentation. I see a new beginning
for Hungary
...
The very atmosphere of Budapest is electric,
alive with optimism.
Your people and your leaders -- government and opposition
alike -- are not afraid to break with the past, to act in the
spirit of truth. And what better example of this could there be
than one simple fact: Karl Marx University has dropped Das
Kapital from its required reading list
3
Some historians argue that Marxism arose out of a humane
impulse. But Karl Marx traced only one thread of human
existence, and missed the rest of the tapestry -- the colorful
and varied tapestry of humanity. Marx regarded Man as a hapless
being shaped by impersonal economic forces. But Man is more than
that.
He is artistic -- Man has an innate need to create and enjoy
beauty. He is a loving member of a family, and a loyal patriot
to his people. And Man is something else which cannot be denied
he is a creature of God
The creative genius of the Hungarian people, long
suppressed, is again flourishing in your schools, your
businesses, your churches. This is more than a fleeting season
of freedom. It is Hungary returning home.
Voices long stilled are being heard again. An independent
daily newspaper is now sold on the streets. Commercial radio and
television stations, financed by American companies, will
broadcast everything from the news
to the pop music of Huey
Lewis and the News. And Radio Free Europe is opening its first
Budapest bureau.
Along your border with Austria, the ugly symbol of Europe's
division and Hungary's isolation is coming down, as the barbed
wire fences are rolled and stacked into bales. For the first
time, the Iron Curtain has begun to part. And Hungary is leading
the way.
4
The Soviet Union has withdrawn troops, which I also take as
a first sign of overcoming Europe's division. And as they leave,
let the Soviet leaders know they have everything to gain, and
nothing to lose or fear, from peaceful change. We can work
INSERT
together to move beyond containment, beyond the Cold War.
A
But all of these developments, as significant as they are,
pale before the fact that Hungary is at the threshold of great
and historic change. ( (You are writing a real constitution --
and you are moving toward democratic, multi-party elections.) )
This is possible because brave men and women have formed
opposition parties. And this is possible because Hungarian
leaders are showing the ultimate political courage -- the courage
to submit their names before the people.
But to succeed in reform, you will need partners -- partners
to help promote lasting change in Hungary. I am here to offer
Hungary the partnership of the United States of America.
Three vital spheres stand out in our partnership --
economics, the environment, and democratic and cultural exchange.
INVESTMENT IN HUNGARY
The United States believes in the acceleration of change,
not in its delay. So this our guiding principle -- the United
States will offer assistance not to prop up the status quo, but
to propel reform.
Of course, the weight of the past still burdens Hungarian
enterprise. There are remnants of the Stalinist economy -- huge,
5
inefficient industrial plants; the bewildering price system no
one understands; the massive subsidies that cloud economic
decisions -- all of this slows what you could otherwise achieve.
It's an economic Rubik's Cube that defies solution.
To make the transition to a productive economy will test
your mettle as a people. The prices of some commodities may
rise. Some inefficient factories will close. But the Hungarian
government is increasingly leaving the business of running shops
to shopkeepers and farms to farmers. And the creative drive of
the people, once unleashed, will create a momentum of its own.
This will bring you a greater treasure than the riches you will
create. It will give each of you control over your destiny
a Hungarian destiny.
Just look to the West -- your European neighbors are forming
a single market. Soon you will have the chance to trade with
this new economic colossus. But, as I said, the United States
will also be your partner in this transformation to a successful
economy.
Last Thursday, I invited American leaders from business,
education, labor and other fields -- to come to the White House
and discuss the new opportunities opening up in Hungary. Their
response was enthusiastic. Most enthusiastic of all were
Hungarian-Americans, so proud to be building a bridge between
their new country and their motherland. As long as our two
governments ease the way, the people of America and Hungary can
do the rest.
6
It is in this spirit that I announce the following measures.
First, as I said in Warsaw, I will propose at the Paris
Economic Summit concerted Western action for Poland and Hungary,
to back your reforms with economic and technical assistance
programs from the Summit partners. of course, our program for
Hungary will be targeted to your needs.
Second, I will ask the U.S. Congress to authorize a $25
million fund as a source of new capital to invigorate the
Hungarian
private-sector.
I will also encourage parallel efforts
from the other nations of the Economic Summit.
Third, once your Parliament passes the new emigration
legislation proposed by your Council of Ministers, I will inform
our Congress that Hungary is in full compliance with our 1974
trade law. No country has yet been released from the
restrictions of this Jackson-Vanik Act. So I am pleased to tell
you that Hungary will be the first. ((PAUSE)) This action will
give Hungary the most liberal access to the American market for
the longest term possible under our laws.
Fourth, America is prepared to provide your country with
access to our Generalized System of Preferences, which offers
selective tariff relief. Simply put, these last two measures
will open the door to the largest single market in the world.
In the United States, the vibrancy and strength of our
economy relies on the creativity of millions of small businesses.
Therefore, I am pleased to note our fifth measure, the formation
of the Hungarian Enterprise Group, which will match private
7
venture capital, both foreign and Hungarian, with entrepreneurs -
- the small businessmen and -women with the grand ideas.
Sixth, we have concluded a draft agreement to authorize the
Overseas Private Investment Corporation to operate in Hungary.
Once our Senate passes enabling legislation, OPIC will be able to
provide insurance to encourage American investment in private
enterprises in Hungary. Through OPIC, American business
executives will see firsthand the great opportunity of Hungary.
( (What does private investment mean for Hungary? Yesterday,
at Kossuth Square, I quoted the words of that great Hungarian
patriot. But it was another Hungarian patriot, a contemporary of
Kossuth, Count Szechenyi (SAY-chaney), who said: "Some think that
Hungary has been; I like to think it will be." of this we are
sure -- Hungary will be great again. ))
ENVIRONMENTAL INITIATIVE
Yet economic progress cannot be at the expense of the air we
breathe and the water we drink. Six weeks ago, in Mainz, I
proposed cooperation between East and West on environmental
issues. That is why I will ask the U.S. Congress to appropriate
$5 million to establish an International Environmental Center for
Central and Eastern Europe, to be based in Budapest, which will
bring together private and government experts and organizations
to address the ecological crisis. Our shared heritage is the
earth. And the fate of the earth is not just an East-West issue;
it is the issue of our times.
8
Hungary has led Eastern and Central Europe in addressing the
concerns of your citizens for cleaner air and water. Now you can
do even more, working with the West to build a bridge of
technical and scientific cooperation.
Along these lines, I am also pleased to announce that the
U.S. has proposed an agreement between our two countries to
establish scientific and technical cooperation in the basic
sciences, and in specific areas, including the environment,
medicine and nuclear safety.
DEMOCRATIC AND CULTURAL EXCHANGE
It is my hope that this visit will also lead to a wider
exchange between East and West, so our scientists, our artists
and our environmentalists can learn from one another
So
that our soldiers and statesmen can discuss peace and our
students can discuss the future. ( (PAUSE))
But to discuss anything requires a common language. The
teaching of English is one of the most popular American exports.
As students you know that English is the lingua franca of world
business, the key to clinching deals from Hong Kong to Toronto.
So to open the global market to more Hungarians, I am pleased to
announce that the Peace Corps will, for the first time, operate
in a European country. And our Peace Corps instructors will come
to Budapest and all 19 counties to teach English.
In such exchanges, we want to help you in your quest for a
new beginning as a democratic Hungary. So the United States is
9
also committing more than $6 million to private cultural and
educational opportunities in Eastern Europe. We will make
available funds for a series of major new U.S. -Hungarian exchange
programs -- among Congressmen and legislative experts, among
labor and business leaders, among legal experts, among community
leaders, educators and young people. We are creating dozens of
fellowships to enable Hungarians to study at American
universities. And we will fund endowed chairs in American
studies at your universities
and books -- many thousands of
them -- to fill the shelves of your American Management Institute CENTER
-
- INITIATED
and the libraries of schools and universities across Hungary.
The United States will also open, within the next several two years,
an America House in the center of Budapest. Today, The celebrated
is releasing this
American architect Robert Stern will design the plans for this
center, which will be an open house of books, magazines and
videocassettes -- an open house of ideas.
CONCLUSION
In economic reform and democratic change, in cultural and
environmental cooperation, there are great opportunities -- and,
yes, great challenges. Hungary has a lot of work ahead; so do
the United States and Hungary, working together to build a better
future -- a dynamic future.
Your challenge is enormous and historic: to build a
structure of political change and decentralized economic
enterprise on the ruins of a failed Stalinist system.
10
Given the opportunity to show your characteristic
initiative, creativity and resourcefulness, I believe that the
Hungarian people can meet the challenge. You stand on the
threshold of a new era of economic development and political
change.
I believe you are ready to meet the future. I see a country
well on the way. I see a country rich in human resources and
rich in the moral courage of its people. I see a nation
transcending its past and reaching out to its destiny. I
congratulate you for having come so far.
Let us be equal to the opportunity that lies before us. Let
us have history write of us that we were the generation that made
Europe whole and free.
Thank you.
#
#
#
Davis/Martin
July 8, 1989
Title: b:karl
Draft: Five
PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY
July 12, 1:15 p.m.
Ladies and gentlemen, Dr. Csaki (CHAH-kee). It's a pleasure
to be back in Budapest, and I am proud to be the first American
President to visit Hungary.
Some might find it ironic that I am speaking at a university
named after Karl Marx. ((And I have to admit, from my vantage
point, he does seem to be staring right at me
...)) But those
who know this great university know just how fitting this forum
is for an American President to address the people of Hungary.
After all, it is said that Tramline Number Two runs the
country, since its route joins business with academe- - academe
with government. Many Hungarian leaders have also moved along
this same route, including Miklos (MEEK-losh) Nemeth (NAY-met).
But before any of them, there was a teacher at Karl Marx
University, and his name was Imre (EEMH-ray) Nagy (NUDGE).
((PAUSE))
As his slow reburial procession moved through Heroes'
Square, the rising voice of Hungary was heard in the singing of
the National Hymn. And in this simple, somber ceremony, the
world saw something more than a dignified act of reconciliation.
We witnessed an act of truth. It is on this foundation of truth,
more solid than stone, that Hungarians have begun to build a new
2
future
a generation waited to honor Imre (EEMH-ray) Nagy's
(NUDGE'S) courage; may a hundred generations remember it.
While Hungary rediscovers its natural role in the affairs of
Europe, the world again looks to you for inspiration. A popular
non-fiction book in my country today is entitled Budapest 1900.
Dr. John Lukacs lovingly describes the Budapest of memory, with
its proud stock exchange and great opera; a time when Europe's
first electric subway ran underneath the handsome shops of
Andrassy Avenue.
A city that rivaled Paris in its splendor
Vienna in
its music
London in its literature. A center of learning
that enlightened the world, and gave America one kind of genius
in Joseph Pulitzer, and another in Bela Bartok. But for decades,
this great city, this great nation, so central to the continent
in every respect, was separated from Europe and the West.
Today Hungary is opening again to the West -- becoming a
leading light in European culture. I see people in motion. I
see color, creativity, experimentation. I see a new beginning
for Hungary
The very atmosphere of Budapest is electric,
alive with optimism.
Your people and your leaders -- government and opposition
alike -- are not afraid to break with the past, to act in the
spirit of truth. And what better example of this could there be
than one simple fact: Karl Marx University has dropped Das
Kapital from its required reading list
3
Some historians argue that Marxism arose out of a humane
impulse. But Karl Marx traced only one thread of human
existence, and missed the rest of the tapestry -- the colorful
and varied tapestry of humanity. Marx regarded Man as a hapless
being shaped by impersonal economic forces. But Man is more than
that.
He is artistic -- Man has an innate need to create and enjoy
beauty. He is a loving member of a family, and a loyal patriot
to his people. And Man is something else which cannot be denied
he is a creature of God
The creative genius of the Hungarian people, long
suppressed, is again flourishing in your schools, your
businesses, your churches. This is more than a fleeting season
of freedom. It is Hungary returning home.
Voices long stilled are being heard again. An independent
daily newspaper is now sold on the streets. Commercial radio and
television stations, financed by American companies, will
broadcast everything from the news
to the pop music of Huey
Lewis and the News. And Radio Free Europe is opening its first
Budapest bureau.
Along your border with Austria, the ugly symbol of Europe's
division and Hungary's isolation is coming down, as the barbed
wire fences are rolled and stacked into bales. For the first
time, the Iron Curtain has begun to part. And Hungary is leading
the way.
4
The Soviet Union has withdrawn troops, which I also take as
a first sign of overcoming Europe's division. And as they leave,
let the Soviet leaders know they have everything to gain, and
nothing to lose or fear, from peaceful change. We can work
together to move beyond containment, beyond the Cold War.
But all of these developments, as significant as they are,
pale before the fact that Hungary is at the threshold of great
and historic change. ( (You are writing a real constitution --
and you are moving toward democratic, multi-party elections.)
This is possible because brave men and women have formed
opposition parties. And this is possible because Hungarian
leaders are showing the ultimate political courage -- the courage
to submit their names before the people.
But to succeed in reform, you will need partners -- partners
to help promote lasting change in Hungary. I am here to offer
Hungary the partnership of the United States of America.
Three vital spheres stand out in our partnership --
economics, the environment, and democratic and cultural exchange.
INVESTMENT IN HUNGARY
The United States believes in the acceleration of change,
not in its delay. So this our guiding principle -- the United
States will offer assistance not to prop up the status quo, but
to propel reform.
Of course, the weight of the past still burdens Hungarian
enterprise. There are remnants of the Stalinist economy -- huge,
5
inefficient industrial plants; the bewildering price system no
one understands; the massive subsidies that cloud economic
decisions -- all of this slows what you could otherwise achieve.
It's an economic Rubik's Cube that defies solution.
To make the transition to a productive economy will test
your mettle as a people. The prices of some commodities may
rise. Some inefficient factories will close. But the Hungarian
government is increasingly leaving the business of running shops
to shopkeepers and farms to farmers. And the creative drive of
the people, once unleashed, will create a momentum of its own.
This will bring you a greater treasure than the riches you will
create. It will give each of you control over your destiny
a Hungarian destiny.
Just look to the West -- your European neighbors are forming
a single market. Soon you will have the chance to trade with
this new economic colossus. But, as I said, the United States
will also be your partner in this transformation to a successful
economy.
Last Thursday, I invited American leaders from business,
education, labor and other fields -- to come to the White House
and discuss the new opportunities opening up in Hungary. Their
response was enthusiastic. Most enthusiastic of all were
Hungarian-Americans, so proud to be building a bridge between
their new country and their motherland. As long as our two
governments ease the way, the people of America and Hungary can
do the rest.
6
It is in this spirit that I announce the following measures.
First, as I said in Warsaw, I will propose at the Paris
Economic Summit concerted Western action for Poland and Hungary,
to back your reforms with economic and technical assistance
programs from the Summit partners. Of course, our program for
Hungary will be targeted to your needs.
Second, I will ask the U.S. Congress to authorize a $25
million fund as a source of new capital to invigorate the
Hungarian private-sector. I will also encourage parallel efforts
from the other nations of the Economic Summit.
Third, once your Parliament passes the new emigration
legislation proposed by your Council of Ministers, I will inform
our Congress that Hungary is in full compliance with our 1974
trade law. No country has yet been released from the
restrictions of this Jackson-Vanik Act. So I am pleased to tell
you that Hungary will be the first. ((PAUSE)) This action will
give Hungary the most liberal access to the American market for
the longest term possible under our laws.
Fourth, America is prepared to provide your country with
access to our Generalized System of Preferences, which offers
selective tariff relief. Simply put, these last two measures
will open the door to the largest single market in the world.
In the United States, the vibrancy and strength of our
economy relies on the creativity of millions of small businesses.
Therefore, I am pleased to note our fifth measure, the formation
of the Hungarian Enterprise Group, which will match private
7
venture capital, both foreign and Hungarian, with entrepreneurs -
- the small businessmen and -women with the grand ideas.
Sixth, we have concluded a draft agreement to authorize the
Overseas Private Investment Corporation to operate in Hungary.
Once our Senate passes enabling legislation, OPIC will be able to
provide insurance to encourage American investment in private
enterprises in Hungary. Through OPIC, American business
executives will see firsthand the great opportunity of Hungary.
((What does private investment mean for Hungary? Yesterday,
at Kossuth Square, I quoted the words of that great Hungarian
patriot. But it was another Hungarian patriot, a contemporary of
Kossuth, Count Szechenyi (SAY-chaney), who said: "Some think that
Hungary has been; I like to think it will be." of this we are
sure -- Hungary will be great again.) )
ENVIRONMENTAL INITIATIVE
Yet economic progress cannot be at the expense of the air we
breathe and the water we drink. Six weeks ago, in Mainz, I
proposed cooperation between East and West on environmental
issues. That is why I will ask the U.S. Congress to appropriate
$5 million to establish an International Environmental Center for
Central and Eastern Europe, to be based in Budapest, which will
bring together private and government experts and organizations
to address the ecological crisis. Our shared heritage is the
earth. And the fate of the earth is not just an East-West issue;
it is the issue of our times.
8
Hungary has led Eastern and Central Europe in addressing the
concerns of your citizens for cleaner air and water. Now you can
do even more, working with the West to build a bridge of
technical and scientific cooperation.
Along these lines, I am also pleased to announce that the
U.S. has proposed an agreement between our two countries to
establish scientific and technical cooperation in the basic
sciences, and in specific areas, including the environment,
medicine and nuclear safety.
DEMOCRATIC AND CULTURAL EXCHANGE
It is my hope that this visit will also lead to a wider
exchange between East and West, so our scientists, our artists
and our environmentalists can learn from one another
So
that our soldiers and statesmen can discuss peace and our
students can discuss the future. ( (PAUSE) )
But to discuss anything requires a common language. The
teaching of English is one of the most popular American exports.
As students you know that English is the lingua franca of world
business, the key to clinching deals from Hong Kong to Toronto.
So to open the global market to more Hungarians, I am pleased to
announce that the Peace Corps will, for the first time, operate
in a European country. And our Peace Corps instructors will come
to Budapest and all 19 counties to teach English.
In such exchanges, we want to help you in your quest for a
new beginning as a democratic Hungary. So the United States is
9
also committing more than $6 million to private cultural and
educational opportunities in Eastern Europe. We will make
available funds for a series of major new U.S. -Hungarian exchange
programs -- among Congressmen and legislative experts, among
labor and business leaders, among legal experts, among community
leaders, educators and young people. We are creating dozens of
fellowships to enable Hungarians to study at American
universities. And we will fund endowed chairs in American
studies at your universities
and books -- many thousands of
them -- to fill the shelves of your American Management Institute
and the libraries of schools and universities across Hungary.
The United States will also open, within the next two years,
an America House in the center of Budapest. The celebrated
American architect Robert Stern will design the plans for this
center, which will be an open house of books, magazines and
videocassettes -- an open house of ideas.
CONCLUSION
In economic reform and democratic change, in cultural and
environmental cooperation, there are great opportunities -- and,
yes, great challenges. Hungary has a lot of work ahead; so do
the United States and Hungary, working together to build a better
future -- a dynamic future.
Your challenge is enormous and historic: to build a
structure of political change and decentralized economic
enterprise on the ruins of a failed Stalinist system.
10
Given the opportunity to show your characteristic
initiative, creativity and resourcefulness, I believe that the
Hungarian people can meet the challenge. You stand on the
threshold of a new era of economic development and political
change.
I believe you are ready to meet the future. I see a country
well on the way. I see a country rich in human resources and
rich in the moral courage of its people. I see a nation
transcending its past and reaching out to its destiny. I
congratulate you for having come so far.
Let us be equal to the opportunity that lies before us. Let
us have history write of us that we were the generation that made
Europe whole and free.
Thank you.
#
#
#
#992
THE WHITE HOUSE
Office of the Press Secretary
(Budapest, Hungary)
For Immediate Release
July 12, 1989
REMARKS BY THE PRESIDENT
AT KARL MARX UNIVERSITY OF ECONOMICS
Aula Hall
Karl Marx University of Economics
Budapest, Hungary
1:35 P.M. (L)
THE PRESIDENT: Mr. President and Mr. Prime Minister and
Mrs. Nemeth, ladies and gentlemen, Dr. and Mrs. Csaki. It is a great
pleasure for Barbara and me to be back in Budapest. And I am very
proud to be the first American president to visit Hungary.
(Applause.) Some might find it ironic that I am speaking at a
university named after Karl Marx. (Laughter.) If you don't find it
ironic in Hungary, try it on for size in the United States. But the
fact that I am here today is less a cause for surprise than proof
that America welcomes the unfettered competition of ideas. And I
understand that 50 or so of the faculty from this great university
have been as either students or teachers in the United States of
America. And that is a very good thing for my country and I'm glad
you came our way.
The University's principal task is to promote a
competition -- an unfettered competition of ideas. And that is the
spirit that brings us together -- a spirit that guided a great
teacher at Karl Marx University, whose name was Imre Nagy.
As his funeral proceeded in Heroes Square a few weeks
ago, the rising voice of Hungary was heard reciting the Szozat. And
in this simple, somber ceremony, the world saw something more than a
dignified act, an act of reconciliation. We witnessed an act of
truth. It is on this foundation of truth, more solid than stone,
that Hungarians have begun to build a new future -- a generation
waited to honor Imre Nagy's courage; may a hundred generations
remember it.
While Hungary rediscovers its natural role in the affairs
of Europe, the world again looks to you for inspiration. A popular
non-fiction book in my country today is entitled "Budapest 1900".
Dr. John Lukacs lovingly describes the Budapest of memory, with its
proud stock exchange and great opera; a time when Europe's first
electric subway ran underneath the handsome shops of Andrassy Avenue.
A city that rivaled Paris in its splendor, Vienna in its
music, London in its literature. A center of learning that
enlightened the world and gave America one kind of genius in Joseph
Pulitzer, another in Bela Bartok. But for four decades, this great
city, this great nation, so central to the continent in every
respect, has been separated from Europe and the West.
And today Hungary is opening again to the West --
becoming a beacon of light in European culture. And I see people in
motion. Color, creativity, experimentation. I see a new beginning
for Hungary. The very atmosphere of this city, the very atmosphere
of Budapest is electric and alive with optimism.
Your people and your leaders -- government and opposition
alike -- are not afraid to break with the past, to act in the spirit
of truth. And what better example of this could there be than one
MORE
- 2 -
simple fact: Karl Marx University has dropped "Das Kapital" from its
required reading list.
Some historians argue that Marxism arose out of a humane
impulse. But Karl Marx traced only one thread of human existence,
and missed the rest of the tapestry -- the colorful and varied
tapestry of humanity. He regarded man as hapless -- unable to shape
his environment or destiny. But man is not driven by impersonal
economic forces. He's not simply an object acted upon by mechanical
"laws" of history.
Rather, man is imaginative and inventive. He is
artistic, with an innate need to create and enjoy beauty. He is a
loving member of a family, and a loyal patriot to his people. Man is
dynamic, determined to shape his own future.
The creative genius of the Hungarian people, long
suppressed, is again flourishing in your schools, your businesses,
your churches. And this is more than a fleeting season of freedom.
It is Hungary returning to its normal, traditional values. It is
Hungary returning home.
Voices long stilled are being heard again. An
independent daily newspaper is now sold on the streets. Commercial
radio and television stations will broadcast everything from the news
to the music of Stevie Wonder. And Radio Free Europe is openings its
first Eastern European Bureau right here in Budapest.
Along your border with Austria, the ugly symbol of
Europe's division and Hungary's isolation is coming down, as the
barbed wire fences are rolled and stacked into bales. For the first
time, the Iron Curtain has begun to part. And Hungary, your great
country, is leading the way. (Applause.)
The Soviet Union has withdrawn troops, which I also take
as a step in overcoming Europe's division. And as those forces
leave, let the Soviet leaders know they have everything to gain, and
nothing to lose or fear, from peaceful change. We can -- and I am
determined that we will -- work together to move beyond containment,
beyond the Cold War.
One of the key steps in moving beyond containment is
easing the military confrontation in Europe. To this end, the NATO
allies joined, at the May summit meeting, in my proposal of a
comprehensive conventional arms control initiative -- an initiative
that would cut the number of tanks, armored troop carriers,
artillery, combat aircraft, attack helicopters, as well as United
States and Soviet troops stationed on foreign soil in Europe -- all
to lower, equal levels.
The issues may be complex, but we're working, day and
night, to get a solid, historic agreement to strengthen stability in
Europe and reduce the risk of war. And we are determined to get it
soon. (Applause.)
No, there is no mistaking the fact that we are on the
threshold of a new era. And there's also no mistaking the fact that
Hungary is at the threshold of great and historic change. You're
writing a real constitution -- and you're moving toward democratic,
multi-party elections.
And this is partly possible because brave men and women
have formed opposition parties. And this is possible because
Hungarian leaders are going to show the ultimate political courage --
the courage to submit to the choice of the people in free elections.
(Applause.)
But to succeed in reform, you'll need partners --
partners to help promote lasting change in Hungary. And I am here
today to offer Hungary the partnership of the United States of
MORE
- 3 -
America. (Applause.) Three vital spheres stand out in our
partnership -- economics, the environment, and democratic and
cultural exchange.
The United States believes in the acceleration of
productive change, not in its delay. So this is our guiding
principle -- the United States will offer assistance not to prop up
the status quo, but to propel reform.
Of course, the weight of the past still burdens Hungarian
enterprise. There are remnants of the Stalinist economy -- huge,
inefficient industrial plants and a bewildering price system that is
hard for anyone to understand; and the massive subsidies that cloud
economic decisions -- all of this slows what you could otherwise
achieve. It's an economic Rubik's Cone that defies solution.
To make the transition to a productive economy will test
your mettle as a people. The prices of some commodities may rise.
Some inefficent businesses and factories will close. But the
Hungarian government is increasingly leaving the business of running
the shops to the shopkeepers, the farms to the farmers. And the
creative drive of the people, once unleashed, will create momentum or
its own. And this will bring you a greater treasure than simply the
riches you create. It'll give each of you control over your destiny
-- a Hungarian destiny. (Applause.)
And, as I said, the United States will be your partner in
this transformation to a successful economy.
Last Thursday at the White House, I invited leaders from
business, education, labor and other fields -- to come to the White
House and discuss the new private sector opportunities opening up in
Hungary. And their response was enthusiastic. This was especially
true of Hungarian-Americans, so proud to be building a bridge between
their new country and their motherland. As long as our two
governments ease the way, the people of America and Hungary can do
the rest -- the people can do the rest.
And it is in this spirit that I want to announce the
following measures.
First, as I said in Warsaw, I will propose at the Paris
Economic Summit concerted Western action for Poland and Hungary, to
back your reforms with economic and technical assistance from the
summit partners. (Applause.) Of course, our efforts for Hungary
will be targeted to your needs.
And second, I will ask the United States Congress to
authorize a $25 million fund as a source of new capital to invigorate
the Hungarian private sector. I'll also encourage parallel efforts
from the other nations of the economic summit.
And third, once your Parliament passes the new emigration
legislation proposed by your Council of Ministers, I will inform our
Congress that Hungary is in full compliance with the Jackson-Vanik
Amendments to our 1974 trade law. No country has yet been released
from the restrictions of this amendment. So I am pleased to tell you
that Hungary will be the first. (Applause.) And this action will
give Hungary the most liberal access to the American market for the
longest terms possible under our laws. (Applause.)
Fourth, America is prepared to provide your country with
access to our Generalized System of Preferences, which offers
selective tariff relief. Simply put, these last two measures will
allow you to take advantage of the largest single market in the
entire world.
And fifth, we've concluded a draft agreement to authorize
the Overseas Private Investment Corporation -- OPIC we call it -- to
operate in Hungary. And once our Senate passes the enabling
MORE
- 4 -
legislation, OPIC will be able to provide insurance to encourage
American investment in private enterprises in Hungary. Through OPIC,
American business executives will see first-hand the great
opportunity of Hungary.
Private investment is critical for Hungary. It means
jobs, innovation, progress. But most of all, private investment
means a brighter future for your children; a brighter future for
Hungary.
And yet economic progress cannot be at the expense of the
air we breathe and the water we drink. Six weeks ago, in Mainz, I
proposed cooperation between East and West on environmental issues.
And that is why I will ask the United States Congress to appropriate
$5 million to establish an International Environmental Center for
Central and Eastern Europe, to be based right here in Budapest, which
will bring together private and government experts and organizations
to address the ecological crisis. (Applause.) After all, our shared
heritage is the Earth, and the fate of the Earth transcends borders;
it isn't just an East-West issue.
Hungary has led Eastern and Central Europe in addressing
the concerns of your citizens for cleaner air and water. And now you
can do even more, working with the West to build a bridge of
technical and scientific cooperation.
Along these lines, I am also pleased to announce that the
United States has proposed an agreement between our two countries to
establish scientific and technical cooperation in the basic sciences
and in specific areas, including the environment, medicine and
nuclear safety.
It is my hope that this visit will also lead to a wider
exchange between East and West, so our scientists, our artists and
our environmentalists can learn from one another -- so that our
soldiers and statesmen can discuss peace and our students -- God
bless them -- can discuss the future. (Applause.)
But to discuss anything requires a common language. The
teaching of the English language is one of the most popular American
exports. And as students, you know that English is the lingua franca
of world business, the key to clinching deals from Hong Kong to
Toronto. So to open the global market to more Hungarians, I am
pleased to announce that the Peace Corps will, for the first time,
operate in a European country. And our Peace Corps instructors will
come to Budapest and all 19 counties to teach English. (Applause.)
And in such exchanges, we want to help you in your quest
for a new beginning as a democratic Hungary. So the United States is
also committing more than $6 million to cultural and educational
opportunities in Eastern Europe. We will make available funds for a
series of major new J.S.-Hungarian exchange programs -- among
Congressmen and legislative experts, among labor and business
leaders, among legal experts, among community leaders, educators and
young people. We are creating dozens of fellowships to enable
Hungarians to study at American universities. And we will fund
endowed chairs in American studies at your universities, and books --
many thousands of them -- to fill the shelves of your new
International Management Center and the libraries of schools and
universities across Hungary. (Applause.)
And the United States will also open, within the next
several years, an American House in the center of Budapest.
(Applause.) Today, the celebrated American architect, Robert Stern,
is releasing his design for this center, which will be an open house
of books, magazines and video cassettes -- an open house of ideas.
And so, in conclusion, in economic reform and democratic
change, in cultural and environmental cooperation, there are great
opportunities and great challenges. Hungary has a lot of work ahead;
MORE
- 5 -
and so do the United States and Hungary, working together to build
this better future dynamic future.
Your challenge is enormous and historic: To build a
structure of political change and decentralized economic enterprise
on the ruins of a failed Stalinist system.
And given the opportunity to show your characteristic
initiative, creativity and resourcefulness, I believe that the
Hungarian people will meet the challenge. You stand on the threshold
of a new era of economic development and, yes, political change.
And I believe with all my heart that you are ready to
meet the future. (Applause.) I see a country well on the way. I
see a country rich in human resources -- rich in the moral courage of
its people. I see a nation transcending its past and reaching out to
its destiny. I congratulate you for having come so far.
And let us be equal to the opportunity that lies before
us. Let us have history write of us that we were the generation that
made Europe whole and free.
Thank you all. God bless each and every one of you.
Thank you very much. (Applause.)
END
2:01 P.M. (L)
Davis/Martin
July 7, 1989
Title: b:karl
Draft: Four
PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY
July 12, 1:15 p.m.
Ladies and gentlemen, Dr. Csaki (CHAH-kee). It's a pleasure
to be back in Budapest, and I am proud to be the first American
President to visit Hungary.
Some might find it ironic that I am speaking at a university
named after Karl Marx. ((And I have to admit, from my vantage
point, he does seem to be staring right at me
)) But those
who know this great university know just how fitting this forum
is for an American President to address the people of Hungary.
After all, it is said that Tramline Number Two runs the
country, since it stops at Karl Marx and goes on to Parliament
and the Central Committee. Many great Hungarian leaders have
also moved along this same route, including Miklos (MEEK-losh)
Nemeth (NAY-met). But before any of them, there was a teacher at
Karl Marx University, and his name was Imre (EEMH-ray) Nagy
(NUDGE) ((PAUSE))
As his slow reburial procession moved through Heroes'
Square, the rising voice of Hungary was heard in the singing of
the National Hymn. And in this simple, somber ceremony, the
world saw something more than a dignified act of reconciliation.
We witnessed an act of truth. It is on this foundation of truth,
2
more solid than stone, that Hungarians have begun to build a new
future
a generation waited to honor Imre (EEMH-ray) Nagy's
(NUDGE'S) courage; may a hundred generations remember it.
While Hungary rediscovers its natural role in the affairs of
Europe, the world again looks to you for inspiration. A popular
non-fiction book in my country today is entitled Budapest 1900.
Dr. John Lukacs lovingly describes the Budapest of memory, with
its proud stock exchange and great opera; a time when Europe's
first electric subway ran underneath the handsome shops of
Andrassy Avenue.
A city that rivaled Paris in its splendor
Vienna in
its music
London in its literature. A center of learning
that enlightened the world, and gave America one kind of genius
in Joseph Pulitzer, and another in Bela Bartok. But for decades,
this great city, this great nation, so central to the continent
in every respect, was separated from Europe and the West.
Today Hungary is opening again to the West -- becoming a
leading light in European culture. I see people in motion. I
see color, creativity, experimentation. I see a new beginning
for Hungary
The very atmosphere of Budapest is electric,
alive with optimism.
Your people and your leaders -- government and opposition
alike -- are not afraid to break with the past, to act in the
spirit of truth. And what better example of this could there be
than one simple fact: Karl Marx University has dropped Das
Kapital from its required reading list
3
Some historians argue that Marxism arose out of a humane
impulse. But Karl Marx traced only one thread of human
existence, and missed the rest of the tapestry -- the colorful
and varied tapestry of humanity. Marx regarded Man as a hapless
being shaped by impersonal economic forces. But Man is more than
that.
He is artistic -- Man has an innate need to create and enjoy
beauty. He is a loving member of a family, and a loyal patriot
to his people. And Man is something else which cannot be denied
he is a creature of God
The creative genius of the Hungarian people, long
suppressed, is again flourishing in your schools, your
businesses, your churches. This is more than a fleeting season
of freedom. It is Hungary returning home.
Voices long stilled are being heard again. An independent
daily newspaper is now sold on the streets. Commercial radio and
television stations, financed by American companies, will
broadcast everything from the news
to the pop music of Huey
Lewis and the News. And Radio Free Europe is opening its first
Budapest bureau.
Along your border with Austria, the ugly symbol of Europe's
division and Hungary's isolation is coming down, as the barbed
wire fences are rolled and stacked into bales. For the first
time, the Iron Curtain has begun to part. And Hungary is leading
the way.
4
The Soviet Union has withdrawn troops, which I also take as
a first sign of overcoming Europe's division. And as they leave,
let the Soviet leaders know they have everything to gain, and
nothing to lose or fear, from peaceful change. We can work
together to move beyond containment, beyond the Cold War.
But all of these developments, as significant as they are,
pale before the fact that Hungary is at the threshold of great
and historic change. ((You are writing a new constitution --
your version of the Rights of Man that will sanction democratic,
multi-party elections. ))
This is possible because brave men and women have formed
opposition parties. And this is possible because Hungarian
leaders are showing the ultimate political courage -- the courage
to submit their names before the people.
But to succeed in reform, you will need partners -- partners
to help promote lasting change in Hungary. I am here to offer
Hungary the partnership of the United States of America.
Three vital spheres stand out in our partnership ---
economics, the environment, and democratic and cultural exchange.
INVESTMENT IN HUNGARY
The United States believes in the acceleration of change,
not in its delay. So this our guiding principle -- the United
States will offer assistance not to prop up the status quo, but
to propel reform.
5
Of course, the weight of the past still burdens Hungarian
enterprise. There are remnants of the Stalinist economy -- huge,
inefficient industrial plants; the bewildering price system no
one understands; the massive subsidies that cloud economic
decisions -- all of this slows what you could otherwise achieve.
It's an economic Rubik's Cube that defies solution.
To make the transition to a productive economy will test
your mettle as a people. The prices of some commodities may
rise. Some inefficient factories will close. But the Hungarian
government has already started to leave the business of running
shops to shopkeepers and of farms to farmers. And the creative
drive of the people, once unleashed, will create a momentum of
its own. This will bring you a greater treasure than the riches
you will create. It will give each of you control over your
destiny
a Hungarian destiny.
Just look to the West of the Danube -- your European
neighbors are forming a single market. Soon you will have the
chance to trade with this new economic colossus. But, as I said,
the United States will also be your partner in this
transformation to a successful economy.
Last Thursday, I invited American leaders from business,
education, labor and other fields -- to come to the White House
and discuss the new opportunities opening up in Hungary. Their
response was enthusiastic. Most enthusiastic of all were
Hungarian-Americans, so proud to be building a bridge between
their new country and their motherland. As long as our two
6
governments ease the way, the people of America and Hungary can
do the rest.
It is in this spirit that I announce the following measures.
( (First, as I said in Warsaw, I will propose at the Paris
Economic Summit the formation of a Consortium for Poland and
Hungary, to back your reforms with economic and technical
assistance programs from the Summit partners. Of course, our
program for Hungary will be targeted to your needs.
Second, I will ask the U.S. Congress to authorize a $25
million fund as a source of new capital to invigorate the
Hungarian private-sector.
Third, once your Parliament passes the new emigration
legislation proposed by your Council of Ministers, I will inform
our Congress that Hungary is in full compliance with our 1974
trade law. No country has yet been released from the
restrictions of this Jackson-Vanik Act. So I am pleased to tell
you that Hungary will be the first. ((PAUSE)) This action will
give Hungary the most liberal access to the American market for
the longest term possible under our laws.
Fourth, America is prepared to provide your country with
access to our Generalized System of Preferences, which offers
selective tariff relief. Simply put, these last two measures
will open the door to the largest single market in the world.
In the United States, the vibrancy and strength of our
economy relies on the creativity of millions of small businesses.
Therefore, I am pleased to note our fifth measure, the formation
7
of the Hungarian Enterprise Group, which will match private
venture capital, both foreign and Hungarian, with entrepreneurs -
- the small businessmen and -women with the grand ideas.
Sixth, we have concluded a draft agreement to authorize the
Overseas Private Investment Corporation to operate in Hungary.
Once our Senate passes enabling legislation, OPIC will be able to
provide insurance to encourage American investment in private
enterprises in Hungary. Through OPIC, American business
executives will see firsthand the great opportunity of Hungary.) )
What does private investment mean for Hungary? Yesterday,
at Kossuth Square, I quoted the words of that great Hungarian
patriot. ( (But it was another Hungarian patriot, a contemporary
of Kossuth, Count Szechenyi (SAY-chaney), who said: "Some think
that Hungary has been; I like to think it will be.")) Of this we
are sure -- Hungary will be great again.
ENVIRONMENTAL INITIATIVE
( (Yet economic progress cannot be at the expense of the air
we breathe and the water we drink. That is why I will ask the
U.S. Congress to appropriate $5 million to establish an
International Environmental Center for Central and Eastern
Europe, to be based in Budapest, which will bring together
private and government experts and organizations to address the
ecological crisis. Our shared heritage is the earth. And the
fate of the earth is not just an East-West issue; it is the issue
of our times.
8
Hungary has led Eastern and Central Europe in addressing the
concerns of your citizens for cleaner air and water. Now you can
do even more, working with the West to build a bridge of
technical and scientific cooperation.
Along these lines, I am also pleased to announce an
agreement between our two countries to establish scientific and
technical cooperation in the basic sciences, and in specific
areas, including the environment, medicine and nuclear safety. ) )
DEMOCRATIC AND CULTURAL EXCHANGE
It is my hope that this visit will also lead to a wider
exchange between East and West, so our scientists, our artists
and our environmentalists can learn from one another
So
that our soldiers and statesmen can discuss peace and our
students can discuss the future. ( (PAUSE))
But to discuss anything requires a common language. The
teaching of English is one of the most popular American exports.
As students you know that English is the lingua franca of world
business, the key to clinching deals from Hong Kong to Toronto.
So to open the global market to more Hungarians, I am pleased to
announce that the Peace Corps will, for the first time, operate
in a European country. And our Peace Corps instructors will come
to Budapest and all 19 counties to teach English.
In such exchanges, we want to help you in your quest for a
new beginning as a democratic Hungary. So the United States is
also committing more than $6 million to private cultural and
9
educational opportunities in Eastern Europe. We will make
available funds for a series of major new U.S. -Hungarian exchange
programs -- among Congressmen and legislative experts, among
labor and business leaders, among legal experts, among community
leaders, educators and young people. We are creating dozens of
fellowships to enable Hungarians to study at American
universities. And we will fund endowed chairs in American
studies at your universities
and books -- many thousands of
them -- to fill the shelves of your American Management Institute
and the libraries of schools and universities across Hungary.
The United States will also open, within the next two years,
an America House in the center of Budapest. The celebrated
American architect Robert Stern will design the plans for this
center, which will be an open house of books, magazines and
videocassettes -- an open house of ideas.
CONCLUSION
In economic reform and democratic change, in cultural and
environmental cooperation, there are great opportunities --- and,
yes, great challenges. Hungary has a lot of work ahead; so do
the United States and Hungary, working together to build a better
future -- a Hungarian future.
Your challenge is enormous and historic. No nation has yet
attempted what you are now attempting; to build a structure of
political change and decentralized economic enterprise on the
ruins of a failed Stalinist system.
10
Given the opportunity to show your characteristic
initiative, creativity and resourcefulness, I believe that the
Hungarian people can meet the challenge. You stand on the
threshold of a new era of economic development and political
change.
I believe you are ready to meet the future. I see a country
well on the way. I see a country rich in human resources and
rich in the moral courage of its people. I see a nation
transcending its past and reaching out to its destiny. I
congratulate you for having come so far.
Let us be equal to the opportunity that lies before us. Let
us have history write of us that were the generation that made
Europe whole and free.
Thank you.
#
#
#
ALTERNATE CONCLUSION
In our economic, environmental and cultural relations we
have much to share and learn from each other. The United States
is especially determined to stand by Hungary as you meet an
enormous challenge. No Communist nation has yet attempted what
Hungary is already doing -- to build democracy and a free market.
Throughout the Communist world today, as a younger
generation is preparing to assume power, a great debate is
underway. In this debate, Moscow advocates limited political
freedom, but without economic rights. Beijing practices limited
economic freedom, but without political liberty. Where are
political and economic liberty peacefully advancing together? In
Hungary.
I see a great Hungarian future in the bright faces of your
youth. You know it is not enough to let you purchase what you
want or cast a symbolic vote. You must be allowed to say what
you believe. You must be allowed to choose your government.
Limited freedom, whether it is economic or political, will not
provide sufficient room for the restless human spirit.
Benjamin Franklin, the sage of the American Revolution, said
that love of liberty and the rights of man should someday become
so widespread, "that a philosopher may set his foot anywhere on
the surface (of the earth) and say: 'This is my country.
Because of your courage, that is the Hungary we can see
before us; a better Hungary, a greater Hungary, a place any
countryman of freedom could call home.
Thank you and God bless you all.
#
#
#
Patmer
Davis/Martin
July 8, 1989
Title: b:karl
Draft: Six
A
PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY
July 12, 1:15 p.m.
Ladies and gentlemen, Dr. Csaki (CHAH-kee). It's a pleasure
to be back in Budapest, and I am proud to be the first American
President to visit Hungary.
Some might find it ironic that I am speaking at a university
named after Karl Marx. But the fact that I am here today is less
That America welcomes the unfettered competition of idear.
a cause for surprise than proof of how the world is changing
The university 5 pm all universities m promote the this
principal task is to
competition. of ideas That is the spirit that brings us together
-- a spirit that guided a great teacher at Karl Marx University,
whose name was Imre (EEMH-ray) Nagy (NUDGE) ( (PAUSE))
As his funeral proceeded in Heroes' Square a few weeks ago,
the rising voice of Hungary was heard reciting the Szozat
[SO-zat]. And in this simple, somber ceremony, the world saw
something more than a dignified act of reconciliation. We
witnessed an act of truth. It is on this foundation of truth,
more solid than stone, that Hungarians have begun to build a new
future
a generation waited to honor Imre (EEMH-ray) Nagy's
(NUDGE'S) courage; may a hundred generations remember it.
While Hungary rediscovers its natural role in the affairs of
Europe, the world again looks to you for inspiration. A popular
non-fiction book in my country today is entitled Budapest 1900.
2
Dr. John Lukacs lovingly describes the Budapest of memory, with
its proud stock exchange and great opera; a time when Europe's
first electric subway ran underneath the handsome shops of
Andrassy Avenue.
A city that rivaled Paris in its splendor
Vienna in
its music
London in its literature. A center of learning
that enlightened the world, and gave America one kind of genius
in Joseph Pulitzer, and another in Bela Bartok. But for four decades,
this great city, this great nation, so central to the continent
has been
in every respect, was separated from Europe and the West.
Today Hungary is opening again to the West -- becoming a
beacon of
leading light in European culture. I see people in motion. I
see color, creativity, experimentation. I see a new beginning
for Hungary
The very atmosphere of Budapest is electric,
alive with optimism.
Your people and your leaders -- government and opposition
alike -- are not afraid to break with the past, to act in the
spirit of truth. And what better example of this could there be
than one simple fact: Karl Marx University has dropped Das
Kapital from its required reading list
Some historians argue that Marxism arose out of a humane
impulse. But Karl Marx traced only one thread of human
existence, and missed the rest of the tapestry -- the colorful
and varied tapestry of humanity. Marx regarded Man as hapless unable
to shape his environment destiny. or Being driven instead by unchanging
not driven by impersonal
being Shaped by impersonal economic forces. But Man is more than economic forces
that not impaccive, and man He is not simply an object acted upon
by mechanical "laws" of history.
Rather
Man is imaginative and inventive.
3
1 He is artistic, Man with an innate need to create and enjoy
beauty. He is a loving member of a family, and a loyal patriot
Man is dynamic, determined to shape has own future.
to his people. And Man Is something else which cannot be denied
he is a creature of Cod
The creative genius of the Hungarian people, long
suppressed, is again flourishing in your schools, your
businesses, your churches. This is more than a fleeting season
It is Hungary returning to its traditional values.
of freedom ^ It is Hungary returning home returning to to aditional valves,
Voices long stilled are being heard again. An independent
daily newspaper is now sold on the streets. Commercial radio and
television stations financed by American companies will
stevie Wonder,
broadcast everything from the news
to the pop music of Huey
Lewis and the News. And Radio Free Europe is opening its first
East European
Budapest bureau right here in Budapest.
Along your border with Austria, the ugly symbol of Europe's
division and Hungary's isolation is coming down, as the barbed
wire fences are rolled and stacked into bales. For the first
time, the Iron Curtain has begun to part. And Hungary is leading
the way.
The Soviet Union has withdrawn troops, which I also take as
step in
a first sign of overcoming Europe's division. And as they leave,
those forces
let the Soviet leaders know they have everything to gain, and
nothing to lose or fear, from peaceful change. We can work
together to move beyond containment, beyond the Cold War.
One of the key steps in moving beyond containment is easing
the military confrontation in Europe. To this end, the NATO
4
allies joined, at the May Summit meeting, in my proposal of a
comprehensive conventional arms control initiative ---
an
initiative that would cut the numbers of tanks, armored troop
carriers, artillery, combat aircraft, attack helicopters, as well
as U.S. and Soviet troops stationed on foreign soil in Europe --
all to lower, equal levels.
and we are.
We said we were ready to move fast, The Western allies
promised that we would be ready to table the details of our new
proposal at the negotiating table in Vienna by early September
well, we're going to
sI am pleased to be able to announce today that we will do even
better than that. Tomorrow, in Vienna, NATO will present the
specifics on its proposal. The issues may be complex, but we are
working, day and night, to get a solid, historic agreement to
and reduce the riskef was. And we are determined to
wold
strengthen stability in Europe ^ and get it soon.
There is no mistaking the fact that we are on the threshold of a new era. And there is also
But all of these developments, as significant as they are,
no mistaking
pale before the fact that Hungary is at the threshold of great
and historic change. You are writing a real constitution --
and you are moving toward democratic, multi-party elections.
partly
This is possible because brave men and women have formed
opposition parties. And this is possible because Hungarian
going to
leaders
are show the ultimate political courage -- the courage
to The choice of
to submit their names before the people in free elections
But to succeed in reform, you will need partners -- partners
to help promote lasting change in Hungary. I am here to offer
Hungary the partnership of the United States of America.
5
Three vital spheres stand out in our partnership --
economics, the environment, and democratic and cultural exchange.
INVESTMENT IN HUNGARY
productive
The United States believes in the acceleration of change,
not in its delay. So this our guiding principle -- the United
States will offer assistance not to prop up the status quo, but
to propel reform.
Of course, the weight of the past still burdens Hungarian
enterprise. There are remnants of the Stalinist economy -- huge,
a
inefficient industrial plants; the bewildering price system no
one understands; the massive subsidies that cloud economic
decisions -- all of this slows what you could otherwise achieve.
It's an economic Rubik's Cube that defies solution.
To make the transition to a productive economy will test
your mettle as a people. The prices of some commodities may
rise. Some inefficient factories will close. But the Hungarian
government is increasingly leaving the business of running shops
to shopkeepers and farms to farmers. And the creative drive of
the people, once unleashed, will create a momentum of its own.
This will bring you a greater treasure than simply the riches you will
create. It will give each of you control over your destiny
a Hungarian destiny.
Just look to the West your European neighbors are forming
a single market. Soon you will have the to trade with
And
this new economic colessus, But as I said, the United States
6
will also be your partner in this transformation to a successful
economy.
Last Thursday, I invited American leaders from business,
education, labor and other fields -- to come to the White House
private sector
and discuss the newAopportunities opening up in Hungary. Their
This was especially true of
response was enthusiastic. Most enthusiastic of all were
Hungarian-Americans, so proud to be building a bridge between
their new country and their motherland. As long as our two
governments ease the way, the people of America and Hungary can
do the rest.
It is in this spirit that I announce the following measures.
First, as I said in Warsaw, I will propose at the Paris
Economic Summit concerted Western action for Poland and Hungary,
to back your reforms with economic and technical assistance
programs from the Summit partners. Of course, our program efforts for
Hungary will be targeted to your needs.
Second, I will ask the U.S. Congress to authorize a $25
million fund as a source of new capital to invigorate the
Hungarian private-sector. I will also encourage parallel efforts
from the other nations of the Economic Summit.
Third, once your Parliament passes the new emigration
legislation proposed by your Council of Ministers, I will inform
The Jackson Vanik amendment to
our Congress that Hungary is in full compliance with our 1974
trade law. No country has yet been released from the
amendment.
restrictions of this Jackson Vanik Act. So I am pleased to tell
you that Hungary will be the first. ( (PAUSE)) This action will
7
give Hungary the most liberal access to the American market for
the longest term possible under our laws.
Fourth, America is prepared to provide your country with
access to our Generalized System of Preferences, which offers
selective tariff relief. Simply put, these last two measures
allow you to take advantage of
will^ open the door to the largest single market in the world.
In the United States, the vibrancy and strength of our
economy relies on the creativity of millions of small businesses.
Therefore, I am pleased to note our fifth measure/, the formation
of the Hungarian Enterprise Group, which will match private
venture capital, both foreign and Hungarian, with entrepreneurs -
- the small businessmen and -women with the grand ideas.
Fifth, Sixth, we have concluded a draft agreement to authorize the
Overseas Private Investment Corporation to operate in Hungary.
Once our Senate passes enabling legislation, OPIC will be able to
provide insurance to encourage American investment in private
enterprises in Hungary. Through OPIC, American business
executives will see firsthand the great opportunity of Hungary.
((What does private investment mean for Hungary? Yesterday,
at Kossuth Square, I quoted the words of that great Hungarian
patriot. But it was another Hungarian patriot, a contemporary of
Kossuth, Count Szechenyi (SAY chancy), who said: "Some think that
Hungary has been, I like to think it will be " of this we are
Dure Hungary will be great again.))
Private investment is critical for Hungary. It means jobs, innovation, progres
But most ofall, private investment means a brighter future for your children; a
ENVIRONMENTAL INITIATIVE
brighter future for Hungary.
8
Yet economic progress cannot be at the expense of the air we
breathe and the water we drink. Six weeks ago, in Mainz, I
proposed cooperation between East and West on environmental
issues. That is why I will ask the U.S. Congress to appropriate
$5 million to establish an International Environmental Center for
Central and Eastern Europe, to be based in Budapest, which will
bring together private and government experts and organizations
to address the ecological crisis. Our shared heritage is the
Transcends borders; it
earth. And the fate of the earth is not just an East-West issue
it is issue of times
Hungary has led Eastern and Central Europe in addressing the
concerns of your citizens for cleaner air and water. Now you can
do even more, working with the West to build a bridge of
technical and scientific cooperation.
Along these lines, I am also pleased to announce that the
U.S. has proposed an agreement between our two countries to
establish scientific and technical cooperation in the basic
sciences, and in specific areas, including the environment,
medicine and nuclear safety.
DEMOCRATIC AND CULTURAL EXCHANGE
It is my hope that this visit will also lead to a wider
exchange between East and West, SO our scientists, our artists
and our environmentalists can learn from one another
So
that our soldiers and statesmen can discuss peace and our
students can discuss the future. ( (PAUSE))
9
But to discuss anything requires a common language. The
teaching of English is one of the most popular American exports.
As students you know that English is the lingua franca of world
business, the key to clinching deals from Hong Kong to Toronto.
So to open the global market to more Hungarians, I am pleased to
announce that the Peace Corps will, for the first time, operate
in a European country. And our Peace Corps instructors will come
to Budapest and all 19 counties to teach English.
In such exchanges, we want to help you in your quest for a
new beginning as a democratic Hungary. So the United States is
also committing more than $6 million to private cultural and
educational opportunities in Eastern Europe. We will make
available funds for a series of major new U.S. -Hungarian exchange
programs -- among Congressmen and legislative experts, among
labor and business leaders, among legal experts, among community
leaders, educators and young people. We are creating dozens of
fellowships to enable Hungarians to study at American
universities. And we will fund endowed chairs in American
studies at your universities
and books -- many thousands of
new International
them -- to fill the shelves of your American Initiated Management
Center and the libraries of schools and universities across
Hungary.
The United States will also open, within the next several
years, an America House in the center of Budapest. Today, the
celebrated American architect Robert Stern is releasing his
10
design for this center, which will be an open house of books,
magazines and videocassettes -- an open house of ideas.
CONCLUSION
In economic reform and democratic change, in cultural and
environmental cooperation, there are great opportunities -- and
great challenges. Hungary has a lot of work ahead; so do
the United States and Hungary, working together to build a better
future -- a dynamic future.
Your challenge is enormous and historic: to build a
structure of political change and decentralized economic
enterprise on the ruins of a failed Stalinist system.
Given the opportunity to show your characteristic
initiative, creativity and resourcefulness, I believe that the
will
Hungarian people meet the challenge. You stand on the
threshold of a new era of economic development and political
change.
I believe you are ready to meet the future. I see a country
well on the way. I see a country rich in human resources and
rich in the moral courage of its people. I see a nation
transcending its past and reaching out to its destiny. I
congratulate you for having come so far.
Let us be equal to the opportunity that lies before us. Let
us have history write of us that we were the generation that made
Europe whole and free.
Thank you.
THE WHITE HOUSE
for
fle
WASHINGTON
89 JUN 4 P4: 55
July 5, 1989
MEMORANDUM FOR CHRISS WINSTON
DEPUTY ASSISTANT TO THE PRESIDENT FOR
COMMUNICATIONS
FROM:
NELSON LUND
M
ASSOCIATE COUNSEL TO THE PRESIDENT
SUBJECT:
Presidential Remarks: Karl Marx University
At the request of James W. Cicconi, Counsel's office has reviewed
the captioned draft remarks. Our comments follow.
Page 5, third paragraph. We believe it would be prudent to be
less definite in promising most-favored-nation status to Hungary.
Accordingly, we recommend that the first two sentences be
reworded as follows:
"So with trade in mind, once your future Parliament
legalizes the free movement of its citizens, I will be
able to inform Congress that Hungary is complying with
the relevant portions of the 1974 Trade Act. This will
make you eligible to be granted the most favorable
tariff status possible under U.S. law."
Page 6, first full paragraph. The last sentence promises that
the USG can and will "match" American private-sector investment
in Hungary. In the time allotted for our review, we have not
been able to determine whether legal authority for such
"matching" exists. Accordingly, we cannot clear this language.
Page 6, last paragraph. The first sentence promises that we will
soon authorize OPIC to encourage American investment in Hungary.
This office is informed by NSC that the Administration does not
possess this authority, but that we are supporting legislation
that would provide such authority. The wording of the sentence
should be changed accordingly.
We also have a non-legal suggestion with respect to the last
paragraph on page 2 (ending at top of page 3). This description
of Marx's thought is not obviously correct, even if it is meant
to apply only to Das Kapital. It might usefully be reworded as
follows:
"Karl Marx focused too heavily on one thread in human
history, and misinterpreted the rest of the tapestry -- the
colorful and varied tapestry of civilization. Marx believed
that Man's life has been determined by impersonal, economic
forces. But Man has always been, and will always be, much
more than such a theory admits. "
CC: James W. Cicconi
Condoleezza Rice
049898SS
for file
Document No.
5228
WHITE HOUSE STAFFING MEMORANDUM
6/30/89
7/3/89 5:00 PM
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
PRESIDENTIAL REMARKS: KARL MARX UNIVERSITY
SUBJECT:
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
ROGERS
BREEDEN
CARD
WINSTON
CICCONI
PINKERTON
DEMAREST
FITZWATER
GRAY
HAGIN
REMARKS:
Please forward any comments directly to Chriss Winston, Rm.
122, x2930, no later than 5:00 Monday, July 3, 1989, with an
info copy to my office.
P2: 28
RESPONSE:
July 7, 1989
TO: CHRISS WINSTON
The NSC concurs with the changes indicated.
B
James W. Cicconi
Assistant to the President
Brent Scowcroft
and Deputy to the Chief of Staff
Ext. 2702
CC: Cicconi
/
Davis/Martin
June 29, 1989
Title: Hungary
Draft: One
PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY
(Date, Time)
Ladies and gentlemen, Dr. Csaki (CHAH-kee). It's a pleasure
to be back in Budapest, and I am proud to be the first American
President to visit Hungary.
Some might find it ironic that I am speaking at a university
named after Karl Marx. ( (And I have to admit, from my vantage
point, he does seem to be staring right at me ...)) But
those
who know this great university know just how fitting this forum
is for an American President to address the people of Hungary.
After all, it is said that Tramline Number Two runs the
nation, since it originates at Karl Marx and makes stops at the
National Center, Parliament and the Central Committee. Many
great Hungarian leaders have also moved along this same route,
NAY-met
among them Miklos Nemeth (Namath) and Zsigmond (Zig-mund) Jarai
(JAR-ree). But before any of them, there was a teacher at Karl
Marx University, funeral and his name was Imre ( (EEMH-ray) Nage (NAZH).
a few weeks ago)
As his slow procession moved through Heroes' Square, the
rising voice of Hungary was heard in the singing of the Szozat
(SO-zat). And in this simple, somber reburial, the world saw
something more than a dignified act of reconciliation. We
witnessed an act of truth. It is on this foundation of truth,
[one] more solid than stone, that Hungarians have begun to build a
2
2
new future
a generation waited to honor his courage; may a
hundred generations remember it.
While Hungary rediscovers its natural role in the affairs of
the world once again looks to you for inspiration.
Europe, America is rediscovering you. One of the ( (bestselling) )
?
non-fiction books in my country today is entitled Budapest 1900.
Dr. John Lukacs lovingly describes the Budapest of memory
( (Quote to come) )
This was a city that rivaled Paris in its splendor, Vienna
in its music and London in its literature. This was a center of
learning that enlightened the world, and gave America one kind of
?
genius in Joseph Pulitzer, and another in Bela Bartok. But for
decades, this great city, this great nation, so central to the
continent in every respect, was separated torn from Europe and the West.
But the city and country I see today is again opening to the
West, again becoming a leading light in European culture. I see
people in motion. I see color and creativity. replacing grey
conformity
I sense an atmosphere that is electric, alive with
optimism. There is a new spirit of experimentation -- of making
This is happening because your people and your leaders
new beginnings.
are not afraid
government and opposition alike -- have the courage to break with
the past, to act in the spirit of truth. And what better example
than th ronic fact Karl Mary University ha 5 dropped
?
of this could there be than one simple fact Karl Marx University
Das Kapital from its required reading list
has dropped Das Kapital from its required reading list
]
Karl Marx traced only one thread of human existence, and
missed the rest of the tapestry -- the colorful and varied
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tapestry of civilization. Marx regarded Man as an economic
being. But Man is more than that.
He is artistic Man. He has an innate need to create and
enjoy beauty. He is a loving member of a family, and a loyal
patriot to his people. And Man is something else which cannot be
denied
he is a creature of God
The creative genius of the Hungarian people, long
suppressed, is again flourishing in your schools, your
businesses, your churches. This is more than a fleeting season
of freedom. It's a rebirth, a Renaissance of Hungary.
Voices long stilled are being heard again. An independent
daily newspaper is now sold on the streets. Commercial radio and
television stations, financed by American companies, will soon
broadcast everything from the news
to Huey Lewis and the
News. And [even] Radio Free Europe is opening its first Budapest
bureau.
along your border with Austria, barbed wire is
being removed : barbed wire, the symbol of Europe's division,
More than one hundred thousand Americans visited Hungary
last year and more than 20 Hungarians have come to
of Hungary'- separation from the rest of earope
America. This very university operates exchange programs with 23
U.S. schools. For the first time, the Iron Curtain has begun to
part. Hungary is changing the world.
also
The Soviet Union has withdrawn many troops, which I take as
of overcoming the division of Europe.
a first sign that Moscow truly respects your sovereignty And
as
leaders
they leave, let the Soviets know they have everything to gain,
and nothing to lose or fear, from peaceful change. Nor should we
4
4.
We can work together to move beyond containment, beyond the
Cold War.
But all of these developments, as significant as they are,
pale before this --- Hungary is at the threshold of great and
historic change. You are writing a new consitution -- a real
constitution -- and you are moving toward democratic, multiparty
elections.
This is possible because brave men and women have formed
opposition parties. And this is possible because Hungarian
leaders are showing the ultimate political courage -- the courage
to submit their names before the people.
Hungary is embarking on an odyssey of change. I am here to tell
you that the United States is with you. We want to help you
build an alternative future -- a democratic future.
We are ready to help promote lasting change in Hungary in three
vital spheres -- economics, the creation of democratic
instituions, and the environment.
Last Thursday, before leaving Washington, I hosted a White
House Symposium on Eastern Europe. I spoke to leaders fromt he
American private sector -- from business, education, labor and
other fields -- and I urged them to be involved in Hungary, to
help Hungary build its democratic future. Their response was
encouraging. America will be involved.
INVESTING IN HUNGARY
The United States believes aid should accelerate change, not
delay it. So this is our guiding principle -- the united STates
offers aid not to prop up the status quo, but to propel reform.
Jty
4(a)
Of course, the dead weight of the past still burdens Hugnarian
enterprise. The remnants of the Stalinist economy, with its
huge, inefficient industrial plants; the bewildering price
system no one understands; the massive subsidies that cloud
economic decisions -- all of this slows what you could otherwise
achieve. It's an economic Rubik's Cube that defies solution.
WA
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5
And, ultimately, it's a burden to be discarded. To make the
transition to a market economy will test your mettle as a people.
The prices of some commodities will rise. Some inefficient
factories will close. Hard choices already await you. But the
creative drive of the people, once unleashed, will create a
momentum of its own. This will eventually bring you something
each of
greater than the riches you will create. It will give you
control over your destiny
a Hungarian destiny.
The Hungarian government has already started to leave the
business of running shops to shopkeepers and farms to farmers.
As you change, so will you integrate into the world economy.
Just look to the West of the Danube -- your European neighbors
are forming a single market. Soon you will have the chance to
trade with this new economic colossus. But the United States
will also be your partner in this transformation to a successful
NSERT
competitive economy.
Third,
passer The new
So with trade in mind, once your future Parliament legalizes
emig ction legislation proposedby your Council of ministers,
the free movement of its citizens, I will inform Congress that
in compliance
our
Hungary will then
Hungary is complying with the 1974 Trade Act. This will entitle
qualify for
?
you to the maximum most-favored nation tariff status possible
under U.S. law. Simply put, the largest single market in the
world is opening its doors to you.
S.
Fourth,
Drowde
accessito our
America is also prepared to include Hungary in the
offers selective tariffi
generalized system of preferences, which provides duty free entry
relief for beneficiary countries.
for certain goods. Hungary can and should develop the same
/
6
NATIONAL SECURITY COUNCIL
5-Jul-1989 16:45 EDT
CONFIDENTIAL
MEMORANDUM FOR:
Condoleezza Rice
( RICE )
FROM:
Robert L. Hutchings
SEWRITE FROM m ADDLE
(HUTCHINGS)
OF PAGE 5 ON
SUBJECT:
KarlMarx
First, as I announced in Warsaw, I will propose at the Paris
Economic Summit the formation of a Consortium for Poland and
Hungary, which will coordinate the economic and technical
assistance programs of our Summit partners in support of your
reforms. And we need to take account of the (ferent
economic that in the two countries :- Our coordinated programs
Second, I will ask the U.S. Congress to authorize a($25
for will be Hungary
million
grant to establish a Hungarian-American Enterprise
aimed at
Foundation to capitalize and invigorate the Hungarian private
meeting
sector. I will also encourage parallel efforts from the other
year
needs.
nations of the Economic Summit.
Third, once your Parliament passes the new emigration
legislation proposed by your Council of Ministers, I will inform
our Congress that Hungary is in full compliance with our 1974
Trade Act. Hungary will then qualify for the maximum
most-favored-nation tariff status possible under U.S. law. Simply
put, the largest single market in the world is opening its doors
to you.
Fourth, America is prepared to provide Hungary access to our
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Generalized System of Preferences, which offers selective tariff
relief for beneficiary countries.
Fifth, I am pleased to note the formation of the Hungarian
Enterprise Group, which will match venture capital, both foreign
and Hungarian, with entrepreneurs -- the small businessmen and
-women with grand ideas. Some of you here today may have a few
grand ideas of your own. Perhaps you will benefit from just this
kind of collaboration.
Sixth, we have concluded a draft agreement to authorize the
Overseas Private Investment Corporation to operate in Hungary.
Once our Senate passes enabling legislation, OPIC will be able to
provide insurance to encourage American investment in private
enterprises in Hungary. Many innovate programs are underway
already. Consider, for example, the American investment company
Bears-Stearn, which has established a special "Hungary Fund,"
which pools resources to purchase shares in Hungarian companies.
What does private investment mean for Hungary? Yesterday, at
Kossuth Square, I quoted the words of that great Hungarian
patriot. But it was another Hungarian patriot, a contemporary of
Kossuth, Count Szechenyi (SAY chaney), who coined a phrase in his
great work on economics: Hungary was not, but will be. Of this
we are sure Hungary will be great again ? Does The male
DEMOCRATIC CHANGE
But what Hungary seeks is not measured just in economic
terms. And the assistance we offer is not only economic. We want
to help you as you seek an alternative future for your country --
a democratic alternative.
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also
The United States is committing more than $6 million for
to Provite culture at education apportunies
initiatives to support democratic change in Eastern Europe. We
male available
will provide funds for a series of major new U.S.-Hungarian
exchange programs -- among Congressmen and legislative experts,
among labor and business leaders, among experts and practitioners
in the field of law, among community leaders, educators, and young
people. We are creating dozens of fellowships whereby Hungarians
can study at American universities, and we will fund endowed
chairs in American studies at your universities. And books --
many thousands of them -- to fill the shelves of your American
Management Institute and the libraries of schools and universities
across Hungary.
The United States will also open, within the next two years,
an America House in the center of Budapest. The celebrated
American architect Robert Stern will design the plans for this
center, which will be an open house of books, magazines, and
videocassettes -- and open house of ideas.
I am pleased to announce that the Peace Corps will, for the
first time, operate in a European country. And our Peace Corps
instructors will come bo Budapest and all 19 counties to teach
English. As students, you know that English is the language of
world business, the key to successful commerce from Hong Kong to
Toronto. It also opens the doors to science, technology, and the
arts. It is among our most valuable exports.
ENVIRONMENTAL INITIATIVE
To build democratic institutions, to embark on a path of
economic revitalization -- these are the elements of Hungary's
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a
future. But to realize a promising future, we must work together
to protect our basic common possession -- the environment. Six
weeks ago, in Mainz, I proposed cooperation between East and West
on environmental issues. What a tragedy it would be if your
continent were again spoiled, this time not by war, but by a more
subtle danger -- that of poisoned rivers and acid rain.
Hungary has led eastern and central Europe in addressing the
concerns of its citizens for cleaner air and water. And you are
leading the way in environmental agreements with the West.
( ( ENVIRONMENTAL INITIATIVE TO COME) )
Pollution is no respecter of borders. Let us work together
to save our common inheritance.
MEETING THE FUTURE
In economic reform and democratic change, in cultural and
environmental cooperation, there are great opportunities -- and,
yes, great challenges. Hungary has a lot of work ahead; so do the
United States and Hungary, working together to build a better
future
--
a
Lynamic democratic future.
Your challenge is enormous and historic. No nation has yet
a structure
attempted what you are now attempting: to build, political
of
democracy Change and decentralized economic enterprise on the ruins of a
failed Stalinist system.
Given the opportunity to show your characteristic initiative,
creativity, and resourcefulness, I believe that the Hungarian
people can meet the challenge. You stand on the threshold of a
new era of economic development and democratic political change.
I believe you are ready to meet the future. I see a country
5
to
well on the way. I see a country rich in human resources and rich
in the moral courage of its people. I see a nation transcending
its past and reaching out to its destiny. I congratulate you for
having come so far.
Let us be equal to the opportunity that lies before us. Let
us have history write of us that we were the generation that made
Europe whole and free.
Thank you.