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Originally Processed With FOIA(s): FOIA Number: S; 1998-0194-F S FOIA 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 Backup Files Subseries: Chron File, 1989-1993 OA/ID Number: 13677 Folder ID Number: 13677-002 Folder Title: Hungary 7/89 [OA 6266] [2] Stack: Row: Section: Shelf: Position: G 26 19 2 4 Davis/Martin July 6, 1989 Title: b:karl Draft: Two 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 nation, since it originates at Karl Marx and makes stops at the Planning office National Center, Parliament and the Central Committee. Many great Hungarian leaders have also moved along this same route, among them Miklos (MEEK-losh) Nemeth (Namat) and Mihaly (MEE-hi) Simai (SHE-mi-ee). But before any of them, there was a teacher at Karl Marx University, and his name was Imre (EEMH-ray) Nagy (NUDGE). As the 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. 2 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 and though only now is he honored by the last generation, his courage will be an inspiration to the next. While Hungary rediscovers its natural role in the affairs of Europe, America is rediscovering Hungary. One of the most popular non-fiction books in my country today is entitled Budapest 1900. Dr. John Lukacs lovingly describes the Budapest of memory ( (Quote to come) ) 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 torn from Europe and the West. Today Hungary is changing opening again to the West -- becoming a leading light in European culture. I see people in motion. I see color and creativity replacing grey conformity. There's an electric atmosphere, alive with optimism. Your people and your leaders -- government and opposition alike -- are not afraid 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 Karl Marx traced only one thread of human existence, and missed the rest of the tapestry -- the colorful and varied 3 tapestry of civilization. Marx regarded Man as an economic being. But Man is more than that. He is artistic. 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 is Hungary returning home. Voices long stilled are being heard again. An independent Shepsy daily newspaper is now sold on the streets Commercial radio and television stations, financed by American companies, will soon x0 broadcast everything from the news to Huey Lewis and the News. And Radio Free Europe is opening its first Budapest bureau. Along your border with Austria, barbed wire fences are coming down and being rolled into bales. The symbol of Europe's division and Hungary's isolation is being dismantled, strand by strand. For the first time, the Iron Curtain has begun to part. And Hungary is leading the way. The Soviet Union has withdrawn many troops, which I take also as a first sign of overcoming the division of Europe. And as they leave, let the Soviet leaders know they have everything to gain, and nothing to lose or fear, from peaceful change. We 4 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 -- a Hungarian Rights of Man -- 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. But you need partners -- partners to help promote lasting change in Hungary. I am here to tell you that the United States is poised and ready. I am here to offer Hungary the partnership of the United States of America. Three vital spheres stand out in our partnership -- economics, democratic and cultural exchange, and the environment. Last Thursday, in Washington, I hosted a White House Symposium on Eastern Europe. I spoke to leaders from the 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. There was response was simple: America will respond. INVESTMENT IN HUNGARY 5 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 dead 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 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 the United States will also be your partner in this transformation to a successful competitive economy. (( (Some have raised the question of government assistance. And yes, our governments are working together. However, we've 6 learned that private-sector investment is the best approach. The United States can and will match American private-sector investment in Hungary -- investment where it counts, in Hungarian factories, products and jobs. ))) 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 different economic situations in the two countries; our (?????) -rated program for Hungary will be aimed at meeting your needs. Second, I will ask the U.S. Congress to authorize a $25 million grant to establish a Hungarian-American Enterprise Fevenden Bisina Foundation to invigorate the Hungarian private-sector with new capital. 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 trade status under U.S. law. 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 open the door to the largest single market in the world. In the United States, the vibrancy and strength of our economy is often exemplified by our small business sector. 7 Therefore, I am pleased to note our fifth measure, the formation of the Hungarian Enterprise Group, which will match 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. Consider, for example, the American investment company, Bears-Stern, which has established a special "Hungary Fund" to pool 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: "Some think that Hungary has been; I Hiter Hee-tel like to think it will be. Of this we are sure -- Hungary will be great again. DEMOCRATIC AND 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. our scientists, our artists, our environmentalists can certainly 8 learn from one another. Let our soldiers and statesmen discuss peace and our students discuss the future. ))) We want to help you as you seek a new beginning for your country -- a democracy. To assist you, the United States is 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 experts and practitioners in the field of law, 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. And when it comes to the language of America, the teaching of English is one of our most popular 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 give Hungarians greater entree into the global marketplace, I am 9 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. ENVIRONMENTAL INITIATIVE To learn a language, to start a business, or to work hard in a free election, is to embark on a great adventure. But to realize a promising future, we must also protect our basic common heritage -- 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 have just agreed on new programs for exchanges and joint training of environmental experts. ( (Substance to come) ) CONCLUSION 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. 10 No Communist nation has yet attempted what Hungary is already doing -- to build democracy and a free market. I see a great Hungarian future in the bright faces of your students. But not all young people in the East have as much freedom as you do. Certainly not your brothers and sisters in Transylvania. Your press recently reported that a Romanian girl was lost in the Maros River. We 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 Jamos (Yanosh) Hertelendy (HAN-Yawn-dee) It is the heart of youth determined to live in freedom Hertel-ender 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 11 choose their 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. # # # FBIS-EEU-89-106 5 June 1989 11 HUNGARY think about these issues. I consider the values that have Workers Party [MSZMP], trust that by that time the been created by the social democratic movement in MSZMP'S reform forces will come out in such a Europe to be very important achievements and values, strengthened position and stand in this election in such a and I gladly support them. way that we will find the person who fits these require- ments and he will be elected, too. Siegloch: Many thanks, Mr Pozsgay. [Rangos] Can you anticipate that we shall see a new face? Nemeth Interviewed, Discusses President's Role Or would the person be chosen from the known faces? LD0406222789 Budapest Television Service in Hungarian 1700 GMT 4 Jun 89 [Nemeth] I consider both versions possible and my answer [word indistinct]. Generally, I am a fan of new [From the "This Week" program] faces; today's age, and the system of demands of the present in which we must operate makes this necessary [Excerpt] [passage omitted] [Presenter] two persons in an objective sense, too, but I think that a good number whose present position could make them the most exists among politicians already known too who are able important partner to a future head of state, have given an to match this system of requirements or who are able to interview to Katalin Rangos: gain the trust of the people. [passage omitted] [Begin recording] [Rangos] In your view what powers should the president of the Republic have? Miklos Nemeth Addresses Army Meeting 19 May AU3105150789 Budapest MAGYAR HIRLAP [Nemeth] I would consider an arrangement for Hungary in Hungarian 20 May 89 pp 1,3 which is very similar to the one in Finland. To put it simply: The main task of the president of the republic is ["Slightly shortened" version of speech by Premier Mik- to ensure the stability of the state or the organized los Nemeth at a conference of Hungarian People's Army operation of the system of the state while he also has a commanders in the Ministry of Defense on 19 May: determining role in making foreign policy interests pre- "Premier Miklos Nemeth Speaks at Conference of Peo- vail, in laying down foreign policy, in the control and ple's Army Heads-A Smaller But More Modern supervision of the forces of power. On the other hand, Army"] the government's role is primarily decisive in domestic policy and the economy. [Text] A conference was held in the Ministry of Defense [Rangos] You have listed more powers than the alterna- on 19 May with the participation of leading commanders tive oganizations would like to see in the hands of the and political staff members of the Hungarian People's president of the Republic. Army. Miklos Nemeth, member of the Hungarian Socialist Workers Party [MSZMP] Politburo and chair- [Nemeth] It is possible that I have listed more but then I man of the Council of Ministers, participated and took would add that it is important as to how and under what the floor in the meeting.. control these power are exercised by the president; because, for example, either in foreign policy or in the area of defense in the course of issuing a decree-in my The conference was opened by Defense Minister Colonel view-the government would not be able to take a step General Ferenc Karpati. who evaluated the conditions of in matters of greater magnitude without the approving, the Hungarian People's Army. He pointed out that. in controlling role of the National Assembly. Thus, the past years, the Army had fulfilled its defensive tasks, and issue is not raised in my mind in the way as to what he under increasingly difficult conditions. The discipline has on his desk, what he holds in his hand at his disposal and morale of its members are balanced and free of but mainly in the way as to which those bodies are-and extremism. The People's Army supports the comprehen- with what publicity-which control his powers in the sive social and economic reforms and the radical renewal name of the people. of socialism. Taking into consideration the new security policy concept within the Warsaw Pact and the require- [Rangos] By the way, what kind of personality would you ments of the subsequent defense-oriented military doc- like to see above you, assuming that you will head the trine, our military leadership has begun working out the government over which the post of the president of the plans for the creation of a future army. Republic will be created? Premier Miklos Nemeth took the floor at the conference; [Nemeth] I feel that only a man committed to the here we publish a slightly shortened version of his representation of national interests, taking a stand in speech: support of reforms, and creditable-that is, accepted by the masses, the people too-can fill this highest public "The Council of Ministers thinks that the Hungarian life with honor. It is probable that every party will have People's Army is carrying out successful activity: There its candidate. I, as member of the Hungarian Socialist is good discipline and there is a high level of military DOUBLE MAP SUPPLEMENT: THE ARCTIC AND ITS PEOPLES VOL. 163, NO. 2 FEBRUARY 1983 NATIONAL GEO HIC US VIITE MAR 24 10 PEOPLES OF THE ARCTIC 144 HUNTERS OF THE LOST SPIRIT 150 ART OF THE BERING SEA 198 PEOPLE OF THE LONG SPRING 206 HUNGARY'S NEW WAY 225 BEIRUT-UP FROM THE RUBBLE 262 SEE "AUSTRALIA'S ANIMAL MYSTERIES" WEDNESDAY, FEBRUARY 9, ON PBS TV A DIFFERENT COMMUNISM Hungary's New Way By JOHN J. PUTMAN NATIONAL GEOGRAPHIC SENIOR WRITER Photographs by BILL WEEMS N A SPRING DAY in Budapest, stone buildings of Pest appeared so heavy it O when buds and tender leaves swell seemed they might sink into the earth; when on bare tree limbs and old people the country's thousand-year past, often so and young mothers with children tragic, seemed to draw close, like the dark, come again into the parks; lowering clouds. when the landing docks are The year of that winter being rigged along the Dan- marked the 25th anniversa- ube banks and excursion ry of the uprising of 1956, boats reappear; when on the when Hungarians took to shopping streets, as if on a the streets to throw off an single command, women oppressive Communist re- have abandoned winter's gime and were crushed by boots for pumps and the Soviet tanks and troops. At flash of ankles; when uni- least 2,200 people-perhaps versity students sprawl in many more-died; 200,000 the sun around the National fled to the West. Museum to study and the I had come to look into re- first tourist buses arrive, ports that in the years since, great shiny ones from Aus- Hungary had set off on a tria; when roads are crowd- new and distinctive socialist ed with automobiles and the course: that individual en- Great Market Hall seems to terprise was not only per- groan under its weight of Crown of St. Stephen, first king mitted but encouraged; that produce; well, on such a fine of Hungary, symbolizes 1,000 factory managers were in- day, you should not feel in years of a proud but tragic history. structed to make their own the company of ghosts. decisions and a profit rather But I did, as I stood waiting for the No. 2 than follow some central plan; that members streetcar. I was nearing the end of my travels of farm cooperatives were assisted in grow- in Hungary; two trips, eight weeks. I had ing livestock and food on their farm plots for come first in winter, when mists, rain, and private sale; that commercial and touristic snow shrouded the city in gray; when the old ties to the West (Continued on page 230) Their moment to shine, students graduating from a secondary school in Budapest exchange congratulations and good-byes, carrying armfuls of good wishes from parents and friends. Ever hopeful as a people, the Hungarians- in the most intriguing success story of central Europe-are carefully fashioning a new style of socialism on the doorstep of the Soviet Union. 225 czechoslovakia XCOAL Sárospatak. Tisza WIEN (Vienna) Donau Miskolc (Danube) Bratislava Liflafüred Tokaj Salgótarján 959m 3,146 Neusiedler Mts. BUKK See Cserhet Mountains Mosenmagyaróvár NATIONALPARK Nyíregyi Rots Eger COAL AUSTRIA Esztergor 3,330 ft Gyor Vác COAL Sopron E LSL Hatyan HORTOBÁGY Kapuvár Györújbarát Tata 2,484 ft Tiszafüred NATIONAL PARK Tatabánya Csomör Debrecen Oroszlány. COAL BUDAPEST Koszeq Rába Mor Vecsés vield COAL 704 m 2,310 ft BAUXITE Albertirsa Tisza Szombathely Mts. Székesfehérváky Szolnok BAUXITE KISKUNSAGI kony Veszprém YBAUXITE NATIONAL piez PARK Lajosmizse Great Cegléd Hungarian Körös Szeghalom Ba ABAUXITE Oradea Balatonfüred Dunaújváros Tapolca Srofok Kecskemét Rn Zalaegerszeg BAUXITE Lake Balaton Szarvas Szigliget Hungary Békéscsaba, Kiskunfélegyháza Paks Kiskõrös Orosháza Nagykanizsa Kaposvar Dombóvár Sió Szekszárd Zákányszék & Szeged OIL FE If Nagyatád 682 m 2.238 ft Maros COALX Mts. MINE Baja OL PF Duna Mohacs (Danube) CANA O KLOWE Dráva YUGOSLAVIA O DRAWN SAM IS in COMP/LEC NATIONAL SEDER POLAND AND HOLY as KINGDOM OF POLAND RUSSIAN PRINCIPALITIES GRAND DUCHY ROMAN POLAND CONFED. AR HOLY HOLY OF LITHUANIA OF EMPIRE THE AUSTRIA ROMAN ROMAN RHINE EMPIRE AUSTRIA EMPIRE KINGDOM EMPIRE OF OF KINGDOM KINGDOM HUNGARY OF HUNGARY OF HUNGARY HUNG A OTTOMAN EMPIRE SERBIA OTTOMAN EMPIRE NORMAN BYZANTINE PRINCIPALITIES EMPIRE KINGDOM KINGDOM KINGDOM OF NAPLES OF NAPLES OF NAPLES 1100 I566 1740 1812 Kingdom of Hungary Turkish Rule Habsburg Rule Napoleonic Era Magyars, the first Hungarians, Ottoman Sultan Suleiman I Maria Theresa, the first female Hungarian nationalism invaded in the ninth century defeated the Hungarian Army at ruler of the Habsburg dominions, the decades before 18+ after migrating from the Ural Mohács in 1526, after which the succeeded Charles III as monarch revolution led by Lajor Mountain region. They were nation was divided under Ottoman of Hungary, ushering in 40 years of won independence. Be converted to Christianity by and Habsburg rule. mild reform and domestic Nicholas I of Russia he Stephen I, crowned in 1001. stability. down the rebellion a 226 National Geographic, February 1983 Hungary: A Differ KIA XCOAL trospatate Tisza carpathian Mountains Hungary Miskolc Kisvárda Lillafur Tokaj I'b THE HEART OF EUROPE, Hungary looks to both East and West for trade and culture. As a gotarjan 959m 3,148 ft BUR member of the Warsaw Pact, it stands firmly in BURK the alliance of socialist states. Yet half of its business NATIONAL PARK Nyíregyháza is with non-Communist countries, and its people Rots Eger COALSA 3,330 ft Nyírbátor have a keen taste for Western styles of living. Perhaps a million people of Hungarian atvan HORTOBÁGY stock live in the United States, Tiszafüred NATIONAL PARK more than 50,000 of whom o KM Debrecen fled Hungary following the EST vield 1956 uprising that was crushed FED csés by the Soviet Union. More REP OF than three million Hungarians GERMANY SOVIET Albertirsa Tisza Szolnok Gl Cegléd Lajosmizse Szeghalom ROMANIA live in neighboring nations. USTRIA BLO The Hungarian language is HUNGAR radically different from major ITALY Dradea European tongues, giving its YUGOSLAVIA Körös poets a frustrating sense of BULGA mét Szárvas isolation. Yet the warmth of ALBANA its people is translated into Békéscsaba GREECI Kiskunfélegyháza friendship each year for a 1983 growing number of visitors. iros Orosháza AREA: 93,030 sq km (35,919 sq mi). POPULATION: 10,713,000. MAJOR CITIES: Budapest (capital), 2,064,000; Miskolc, 209,000; Debrecen, 195,000. LITERACY: 98 kányszék Szeged OIL FIELD percent. LIFE EXPECTANCY: 70 years. Maros MINE GEOGRAPHY: Mostly flat plains with OIL PIPELINE hilly regions in the north and west. CANAL CLIMATE: Temperate. GOVERNMENT: Communist state. ECONOMY: o KILOMETERS 50 Pharmaceuticals, transportation lavia O STATUTE MILES 50 equipment, textiles, medical and scientific instruments, DRAWN BY ISKANDAR BADAY bauxite, corn, wheat, sunflower oil, sugar beets, wine. COMPILED BY GRAHAM J. TRUSCOTT NATIONAL GEOGRAPHIC CARTOGRAPHIC DIVISION PRUSSIA OLY DUCHY RUSSIAN GERMANY RUSSIAN Areas acquired by POLAND OF MAN- CONFED. WARSAW EMPIRE EMPIRE Hungary 1938>1941 OF FIRE and lost in 1945 THE AUSTRIA GERMANY RHINE ISTRIA EMPIRE OF AUSTRIA AUSTRIA KINGDOM AUSTRO HUNGARIAN HUNGARY OF HUNGARY EMPIRE HUNGARY ITALY ITALY ROMANIA ROMANIA OTTOMAN SERBIA BULGARIA BULGARIA OTTOMAN EMPIRE EMPIRE ALBANIA NGDOM NAPLES KINGDOM OF NAPLES GREECE GREECE 1812 1914 1939-1945 irg Rule Napoleonic Era World War I World War II tresa, the first female Hungarian nationalism grew in Hungary entered World War I as Hoping to regain lost lands, and le Habsburg dominions, the decades before 1848, when a part of the expanded Dual defenseless against Nazi Germany, I Charles III as monarch revolution led by Lajos Kossuth Monarchy. After defeat in 918 Hungary entered the war on the y. ushering in 40 years of won Independence. But Tsar Hungary lost 64 percent of its Axis side. Soviet forces were m and domestic Nicholas I of Russia helped put population and 71 percent of its victorious in 1945; Communist down the rebellion a year later. territory (next map). control was complete by 1949. aphic, February 1983 Hungary: A Different Communism 227 Little Paris on the Danube, as it is colorfully described, Budapest has of the Liberation Moni all the worldly charm of other major European capitals. The hills of medieval Germany in 1945. Wit Buda on the river's west bank, at left, are linked to the elegant boulevards coffeehouses and conce of more modern Pest on the east by eight graceful bridges. The soaring figure the city dominates the 228 National Geographic, February 1983 Hungary: A Different no Budapest has of the Liberation Monument commemorates the Soviet victory over Nazi The hills of medieval Germany in 1945. With a fifth of Hungary's population and a host of elegant boulevards coffeehouses and concert halls, as well as government offices and factories, The soaring figure the city dominates the cultural, political, and economic life of the nation. raphic, February 1983 Hungary: A Different Communism 229 were being strengthened; that the once iron had met earlier, elsewhere: the rabbi, port- A bell sound hand of Communist authority had been ly, in his yarmulke; the Calvinist bishop, the great chan withdrawn from daily life, so that you might tall, elegant, a gold ring flashing on his left television and forget for days that you were east, rather index finger; the burly bossof the coal mines row of tables fo than west, of the iron curtain. near Pécs, well tailored, who paused to re- rows of seats for When the No. 2 streetcar arrived, I call my visit there. second row sat hopped aboard and rode three stops to the It was, in a way, showcase parliament: It liament, First Parliament Building, a neo-Gothic mass of included a leading sculptor, a leading com- Socialist Worke stone raised at the turn of the century, a poser, leading personalities from a cross sec- In 1956, ami remnant of the Austro-Hungarian Empire. tion of interests. It had, a Western diplomat left Budapest; 1 With my credentials approved, I entered. It told me, no power and met only a few days Army, establish was the first session of the year, and in the each year; but, he added, it had influence in led Hungary sin ornate corridors members greeted one an- the lengthier committee hearings, where a traitor with blo other and chatted. proposals designed by the Hungarian So- Hungarians seen Hungary is a small country, I was remind- cialist Workers' Party could be discussed Once while a ed again. Among the members were people I and differing points of view expressed. need to reform th In the spotlight of a national effort to expand foreign trade, the Ikarus bus company, based in Budapest, has become one of the world's largest bus manufacturers. A worker in a drying chamber (right) smooths a coach's undercoat before final layers of paint are applied. Paralleling trends in other industries, about 35 percent of the firm's workers are women, who hold positions from manager to welder (left). Stylized workers unite in a statue outside the new industrial town of Dunaújváros (top left), where modern blast furnaces produce steel with iron ore imported from the U.S.S.R. Hungary relies upon the Soviet Union for about a third of its foreign trade, buying mainly fuel and raw materials in exchange for machinery and food. In response to the high cost of oil and natural-gas imports, Hungary plans to burn more coal. At the 2,000-foot-deep mine near the city of Komló, miners bend to their work (left). 230 ewhere: the rabbi, port- A bell sounded and we took our places in too bulky, too arcane-Mr. Kádár slipped the Calvinist bishop, the great chamber. In the center crouched from his seat and walked alone down a corri- ring flashing on his left television and still cameramen; next came a dor. He is 70, above average height, neither dy boss of the coal mines row of tables for ministers; above them were fat nor thin. One shoulder seemed slightly ored, who paused to re- rows of seats for parliament members. In the Hunched; he was plainly dressed, almost second row sat János Kádár, member of par- nondescript. There was an aura of power, showcase parliament: It liament, First Secretary of the Hungarian but you might misread it; you might guess culptor, a leading com- Socialist Workers' (Communist) Party. him to be the boss of a successful agricultural nalities from a cross sec- In 1956, amid the uprising, Mr. Kádár cooperative. ad, a Western diplomat left Budapest; he returned with the Soviet As I watched him disappear down the cor- nd met only a few days Army, established a government, and has ridor, two of the ghosts at my side stirred. Ided, it had influence in led Hungary since. In 1956 many called him They were the ghosts of two men: Mr. Kádár littee hearings, where a traitor with blood on his hands; today most had served both, watched them fail, turned by the Hungarian So- Hungarians seem to fear his passing. against them. In the relationships, I knew, ty could be discussed Once while a minister spoke about the lay part of the explanation for Hungary's of view expressed. need to reform the legal code-it had grown present course. (Continued on page 236) ational 1 ompany, d's ers. A nber h's layers other rent of women, 2 e in where ore S.R. 1 raw IT 2 cost tports, nore eep teir Rocking and rolling in a Budapest park, some 30,000 teenagers crush toward the stage (left) during a performance by Locomotiv GT, one of Hungary's most popular state-approved groups. Screaming and shouting and dancing on the grass, the concertgoers nevertheless managed to leave the park almost as clean as they found it, thanks largely to only modest amounts of drugs and alcohol. Klári Katona (below) touches a different chord in her listeners' hearts, singing-in a pleasing style halfway between new wave and jazz-lyrics of love. 233 Hurrying to get ahead in a society where consumer goods are plentiful but wages are low, 200,000 people a day jam into 12 Budapest from 45 suburbs. At the height of rush hour (right), cars built in the Soviet Union, East Germany, Poland, and Romania jostle for running room with Czech streetcars and Hungarian-made buses. Advertisements of the country's abundance-in contrast to some other Eastern European L'AGYMANYOSI! nations-legs of pork hang the length of a butcher shop (below) in the Great Market Hall of downtown Pest. In nearby stalls, salamis and other sausages fill the air with fragrance, fruits are piled high, and strings of red paprikas, the nation's favorite spice, loop over the counter tops. Among the wealthiest men in Hungary, Ernő Rubik (below right) chats with his daughter, Anna, as he twists his world- famous cube. The teacher of interior design lives modestly in a modern Budapest house, despite royalties from cube sales that have made him a millionaire. More important than the money is the TD-46-21 idea behind the cube, he says. "It gives you a good feeling when you solve it." (Continued from page 231) It was a story nose and feet set aside to make pig pudding. then the quiet parts that unfolded slowly as I crisscrossed Hun- While the work went on, Mrs. Németh lakes where carp an gary, looking into life today. invited me back into the house to sample ares of wheat and CO the fresh pig liver, sauteed in lard, sprinkled notable eight metric O N COLD, DRIZZLY DAY with fog with paprika; fresh brown bread, home- But in Hungary's drifting across the road, I drove to made wine. But there was more "Come into fully utilize labor, t Gyór, a city halfway between Buda- the kitchen, you must taste the sausage!" It out: It held also a SI pest and Vienna, and on into the vil- was not yet smoked, but rich with the special hunting preserve fi lage of Gyórújbarát. I made inquiries until musk of freshly killed meat, pungent from Italians and West G I located the house of Károly and Piroska garlic and half a pound of paprika. that drew a stream 0 Németh. And then: "You can't leave yet, sit down In the riding schoo I had come for a pig killing. In the long. again. The fresh cutlets are almost ready!" ly of horses and hay years before World War II, Hungary was a Mrs. Németh placed on the table steaming fireplace the coat of a mostly rural country, backward, poor. A pig cutlets, pickles, more paprika, more fresh we talked of change killing, with its promise of food, was a great bread, more homemade wine. No man in all "We used to have ceremony, limned by poems and folklore. Hungary ate better that morning. Mr. Vetó said. "Min That mystique remains. I wanted also to As I ate, I talked with Mr. Németh. I told termined the numbe learn why the markets of Hungary were so him some said that the farmers in Hungary whatever the farm sh well stocked. were better off than city dwellers; that there sometimes very low Mr. Németh greeted me with törköly, a were millionaires in this village. produced, the greate brandy made from the skins of grapes after "It is not certain that we have a lot of mon- "Then the approa they have been crushed to make wine. A tra- ey," he said, "but we have plenty to eat. We work out the annual ditional drink, he said, "to give strength to work hard, from four or five in the morning is some review by t pig killers." While Mrs. Németh got their until eight in the evening; we have time only but very rarely wi three children off to school, Mr. Németh to sleep. But we have meat seven days." change. And there is said that he was a factory worker, and Mrs. Later I was told by the farm editor of the during the year. Németh an accountant at the farm coopera- local paper that about half of the pigs in "And now it is imp tive here. As a member, she received a fami- Hungary-some 420,000-are raised on profit. The profit is ly farming plot, 0.6 hectares (1.5 acres) and such plots. "It is good for the state. It has to tween the state and t] 2,500 kilograms (5,500 pounds) of corn a furnish no capital, and the pork is produced a part going to the W year for fodder. They also now had two cheaply." The grandiose plans of the past, nuses. So people use mother pigs and seven piglets in their back- when livestock was to be raised exclusively their brains." yard. They could sell the animals to the co- in huge factory-like buildings, had been There was another operative, or privately. "We sold 19 piglets abandoned-at least for a time. Vetó, I discovered, in March," Mr. Németh said, "to other fam- There had been food shortages in Hunga- member of the party ilies, those who have no mother pigs. In fact, ry in the past, when production was too not a member. Ah, that's a good business." tightly controlled, when the incentive to why. When I was the They owned their house and had rented work did not exist. Now, as one Hungarian general manager, I out another that they had inherited. told me, "People are allowed to work, to Now that I am the gel Friends and relatives arrived to help in make money, and so we have food, the best er, I think I'm too old the butchering. "All will get a part of the in all the socialist world." "When this social meat, all will share pork-and-cabbage soup introduced, the poin afterward," Mrs. Németh said. We went out 0 GAIN THE VIEW of a farm man- T point people to top p into the-cold of the backyard. Men wrestled ager, I went to Tata, a town nearly 60 were traditionally le the pig onto its side; one cut its throat. When kilometers (35 miles) northwest of Bu- working-class move the pig was dead, the men used a blowtorch dapest. There I toured the State Farm loyal Communists. A to burn off the bristles, then hung it from a of Tata, occupying land once owned by the level of training W butchering rack. Pails of water were set to old and noble Eszterházy family. My host important. boiling, the big cutting table scrubbed. was József Vetó, managing director, a man "Nowadays it is mc As the pig was butchered, parts were tak- with a raspy voice and a countryman's way are a good expert in ! en into the basement for further processing. of cocking his head as he sizes you up. manager." Mr. Vetõ, The bladder was cleaned, to hold "pig We visited the noisy parts of the farm, such good expert. cheese," the odds and ends of butchering; where 28,000 geese lay 900,000 eggs a year The small city of ] the intestines cleaned to hold sausage; the and 7,000 ducks produce 500,000 young, Danube 40 miles up 236 National Geographic, February 1983 Hungary: A Different ( to make pig pudding. then the quiet parts, the 1,000 hectares of The river here marks the border with nt on, Mrs. Németh lakes where carp are bred, and 1,200 hect- Czechoslovakia. It is a place to pause, to the house to sample ares of wheat and corn, the latter yielding a seek perspective. Near here, in Roman eed in lard, sprinkled notable eight metric tons per hectare. times, the emperor-philosopher Marcus brown bread, home- But in Hungary's quest to earn money and Aurelius wrote his Meditations, among vas more: "Come into fully utilize labor, the farm had branched them: "Time is a sort of river and strong taste the sausage!" It out: It held also a small plastics factory, a is its current; no sooner is a thing brought to it rich with the special hunting preserve frequented by wealthy sight than it is swept by and another takes its meat, pungent from Italians and West Germans, a riding school place, and this too will be swept away.' And 1 of paprika. that drew a stream of Austrian tourists. so the Romans were swept away. it leave yet, sit down In the riding school's stable, smelling rich- The Magyars arrived late in the ninth cen- ts are almost ready!" ly of horses and hay and still bearing on its tury, and here in the 11th their first Chris- in the table steaming fireplace the coat of arms of the Eszterházys, tian king, St. Stephen, was-crowned; here- paprika, more fresh we talked of changes on Hungary's farms. Mongol invaders of the 13th century failed e wine. No man in all "We used to have a very strict system," to take the city's fortress; here in the 16th t morning. Mr. Vetó said. "Ministries in Budapest de- century came the conquering Turks, who h Mr. Németh. I told termined the number of geese or ducks or ruled much of Hungary for 150 years; and farmers in Hungary whatever the farm should have, and we had here thereafter, under the Habsburgs of y dwellers; that there sometimes very low prices. The more we Austria, arose the fine baroque houses, the $ village. produced, the greater the loss on the farm. churches, and ecclesiastical buildings that we have a lot of mon- "Then the approach changed. Now we give the town its present character. ave plenty to eat. We work out the annual plan on the farm. There Esztergom is called Hungary's Vatican; r five in the morning is some review by the higher authorities, its great cathedral holds treasuries of gold g; we have time only but very rarely will they suggest some chalices, embroidered vestments, the tombs neat seven days." change. And there is no interference at all of the archbishops. I wondered: When the he farm editor of the during the year. river of time brought Communism, what half of the pigs in "And now it is important to gain 000-are raised on profit. The profit is divided be- or the state. It has to tween the state and the farm, with the pork is produced a part going to the workers as bo- se plans of the past, nuses. So people use their minds, be raised exclusively their brains." uildings, had been There was another change. Mr. r a time. Vető, I discovered, was not a shortages in Hunga- member of the party. "Nem, I'm production was too not a member. Ah, God knows en the incentive to why. When I was the deputy to the V, as one Hungarian general manager, I did not join. llowed to work, to Now that I am the general manag- : have food, the best er, I think I'm too old. "When this social system was introduced, the point was to ap- EW of a farm man- point people to top positions who ta, a town nearly 60 were traditionally leaders of the es) northwest of Bu- working-class movement, very ured the State Farm loyal Communists. And the actual once owned by the level of training was not that Tapping the talents of handicapped zy family. My host important. workers, the Rozmaring flower ing director, a man "Nowadays it is more important that you cooperative outside Budapest has 1 countryman's way pioneered a unique hiring program. are a good expert in your field, and a good sizes you up. In hopes of broadening their manager. Mr. Vetõ, it was clear, was one parts of the farm, opportunities, it has filled its accounting such good expert. department with 50 disabled people. 900,000 eggs a year The small city of Esztergom lies on the ice 500,000 young, Danube 40 miles upriver from Budapest: aphic, February 1983 Hungary: A Different Communism 237 Spicy revues at the Moulin Rouge (opposite) and other Budapest cabarets are tailored to please an international audience. A plush new casino also caters to foreign visitors, though no Hungarians are permitted to enter. Following 1981 economic reforms, the city's night life has come alive with small, independent enterprises such as restaurants, bars, and taxis (left). Recognizing the need for more specialty businesses, the state wants to bring into the open the vast "second economy" of moonlighters, in which perhaps 80 percent of all workers participate. On a street in the downtown district, filmmaker Gyula Gazdag (below center) directs a scene for a modern adaptation of Balzac's "Lost Illusions." The movie tells the story of a Hungarian journalist in the late 1960s who loses his integrity TK-98-01, through compromises. "Our history bears heavily on all the films we make here," Gazdag explains. hic, February 1983 Hungary: A Different Communism 239 was the effect on the Catholic Church, which had once claimed two-thirds of Hun- gary's people as communicants? I N THE PALACE OF the cardinal pri- mate, I talked with Father Pál Cséfal- vay, director of the museum. He said there were no statistics on church mem- bership; answers could not be precise. "Religious commitment is growing a bit stronger in urban areas; materialistic trends are stronger in the rural areas than they used to be." Here there was an adequate number of candidates for the seminary. As for government policy: "The first sec- retary, János Kádár, said he is not bothered if someone goes to church in his free time, or goes to see a soccer match in his free time; the important matter is that someone should work well after doing so." The church runs eight secondary schools in Hungary, six for boys, two for girls. "They are not free, and so the parents bear an extra burden. As for the state primary schools, it is not forbidden to have religious instructions if the parents so wish. The in- struction may be in the morning before the first class, or after the last. In some places, very many students attend these instruc- tions; in other places, not so many." The priest saw a positive sign in this ar- rangement. "It is not explicitly stated, but there is an implication in this that makes us feel that we are somehow urged to go on with our religious instructions, to put a good im- pact on the children in schools, to have them under a good influence." But there was a ghost in this place, the ghost of a man who once dwelt here, József Do-it-yourself house building is a Cardinal Mindszenty. His bitter resistance common pastime in Hungary, both in suburban neighborhoods (above) and to Communism had made him a martyr. He in the countryside. Private construction died in exile in Vienna in 1975. in 1982 accounted for 60 percent of the "For sure he had some good qualities,' the nation's new housing, including homes priest said. "He was very strongly protecting built by contractors and apartments the rights of the church, but he also tried to put up by construction cooperatives. defend political positions that did not exist In the village of Szigliget, family and any longer. He did not recognize a republic; friends of Béla Kovács (right) pass he called himself prince primate, a title from building blocks hand to hand It will the Habsburg kings; and he thought of him- take the Kovács family more than two self as the foremost 'baron' of the country. years to finish the new house, which will stand next to that of Béla's mother. "He expected everybody to become a mar- tyr like himself. But it was not naturally de- sired by everyone, nor by the political situation, nor by (Continued on page 248) 240 National Geographic, February 1983 Outperforming the rest of the Soviet bloc, Hungary's farms bring in bumper crops of grain under a system of loose controls unlike any other in the Communist world. Managers of the nation's 130 state farms follow production guidelines, but chairmen of the 1,360 cooperatives that cultivate 80 percent of the farmland are left largely on their own to show a profit for their members. The results have been rewarding. While most Eastern European nations import foodstuffs, Hungarian agriculture contributes nearly a fourth of the country's exports. Many cooperatives have diversified into light industry such as plastics manufacture or tire retreading. Such initiative can be important to their profitability since, though some cooperatives receive technical advice and financial aid from the state, they must purchase their own supplies and equipment. 242 Entrepreneurial fever grips nearly At least 1.5 millic everyone in the countryside after the such private garden day's work is finished at state farms animals. On these SI or cooperatives. In a field near manage to raise halj Kiskunfélegyháza a member of the Lenin third of the beef and Cooperative sows corn with a percent of the poultr homemade planter on the small portion and wine grapes, an set aside for his private use (above). vegetables-in all, a To supplement income, a housewife everything produced in Zákányszék (left) raises nutrias in her Private plots have backyard to sell to furriers, and a boy in fact, that life in so outside Szeged (right) helps harvest said to be the most C beets from his family's private plot. profitable-in the CO 244 National Geographic, February 1983 Hungary: A Differen ever grips nearly At least 1.5 million families keep ntryside after the such private gardens or raise their own ed at state farms animals. On these small parcels they = field near manage to raise half of all the pigs, a : member of the Lenin third of the beef and dairy cattle, 70 OFFL with a percent of the poultry, half of the fruit on the small portion and wine grapes, and 40 percent of the rate use (above). vegetables-in all, about 30 percent of come, a housewife everything produced in Hungary. 7) raises nutrias in her Private plots have been so successful, furriers, and a boy - in fact, that life in some villages is ht) helps harvest said to be the most comfortable-and hrs private plot. profitable-in the country. phic, February 1983 Hungary: A Different Communism 245 247 Hungary: A Different Communism hic, February 1983 Fit for a queen: The Diósgyör castle on the outskirts of Miskolc (right) was the scene of royal hunting parties during the 14th and 15th centuries, when it was known as the queen's castle. It is now used on summer evenings for open- air concerts of classical music, jazz, and operettas. A commercial center since the Middle Ages, Miskolc is the nation's second largest city, with a population of 209,000. Expansion of its heavy industry in recent decades has created new urgency for additional housing. In response the state has erected strings of prefabricated apartment projects, background, like those going up all over Hungary. To get away from it all for a while, many apartment dwellers keep a garden in the nearby countryside. Outside the city of Györ in western Hungary, László and Agnes Csontos (above) taste the year's vintage. They also grow peaches, apples, and enough vegetables for their whole family on a plot with a tiny weekend house for sleeping. "It's a good place to relax," László says. "We come out every day after work and on most weekends in summer. Our granddaughter loves to play in the garden." 246 National Geographic, February 1983 Hungary: A r. (Continued from page 240) the policies of Kádár, until he slipped away to the Russian What had he le the church itself. Of course, anyone who is side. In Eastern Europe, Mr. Kádár could is impossible to m religious fears the withering away of Cathol- clearly see, good intentions and popularity against their will: icism, but there are many ways one can act are not enough. one to subject a P in this situation. To be very stiff, just to re- But there was another ghost in this mat- ments. So it is our ject everything: That is not the only way." ter, a man whose name I would hear from tem is to be built wi And so, as the perception of János Kádár time to time in Hungary, spoken as if a ver- sweat, and tears: и has changed over the years, so, in the minds bal charm, to ward off the return of evil: Rá- people happy, not of some, has the perception of József Minds- kosi. Mátyás Rákosi was, some remember, a zenty, prince primate, baron, martyr. dumpy little man with a moon face, always BEGAN with dressed in the regulation black suit and sil- HE JOURNALIST and I sat in a hotel I so rich and pej ver tie, always accompanied by two men, be eaten with T dining room by the Danube. Through each with a hand in his pistol pocket. brown toast; th the curtains passersby outside ap- Rákosi came to power with the Russian the house special peared as silhouettes, spectral. "You Army after World War II. He destroyed op- beefsteak, smother could call me a survivor," he said. He had position parties bit by bit, "like slicing sa- onions, paprika. y been a member of the Communist Party in lami." Then he proceeded to oppress his Hajdú, watched 1956; in the midst of the uprising he found fellow Hungarians: "If the doorbell rang af- now and then refi himself in the Parliament Building, a func- ter ten in the evening, you were terrified." with a white wine tionary of the government of Imre Nagy. The terror, the oppression helped inspire the Balaton region. J I pressed him: Why did Nagy, a Commu- events of 1956. Among those who served wife, Marika, oper nist, declare Hungary neutral and ask the Rákosi, and who were jailed by him and in rant Aranyhid (Gol United Nations to help get the Russians out? jail tortured, was János Kádár. There were a contract restaura "He was desperate, all else had failed.' And lessons to be drawn. ample of the indivio who was in the streets? Who had the guns? I sat in a large book-lined office in the Par- that is now encour Who led them? What did they want? Exact- liament Building. The man opposite had gary. I wanted to It ly what happened? been an orphan, raised in institutions; once how it worked. "To this day, my friends and I spend he had wanted only to read poetry. Now he József told me tl hours digging up every little detail. Still, we was a deputy prime minister, a member of owned by the stati don't understand what happened. It was so the politburo, soon to be secretary of the cen- south Buda, which quick. Perhaps if it had taken more time, we tral committee. His graying hair was swept taurants and coffeeh could see what really happened. Power to- backward, his nose prominent, his shoul- rent out some to emp tally collapsed. All this in just a few days!" ders stooped as if weighted by more than a a long time with su He remembered the time after the revolt single lifetime of experience. and I had done so. 1 had been suppressed. "Strange things were "I have no personal reasons to say that ment, and monthly happening. Some came back from arrest, what happened before 1956 could be por- food and drink supp others didn't. Ministers seemed to come trayed in clean colors," György Aczél said. The hours are long back from the earth. I didn't join the party He had spent more than five years in prison. ing. "Before we took again. I had some difficult years, employ- His perceptions of the events that led to offered just beer, so ment problems." the uprising: Now we have a kitc Why didn't he rejoin the party? A silence, "There was a group of leaders who mis- ety, everything cooke then: "Some who were executed were party used the name of the Communist Party and the restaurant was members. Perhaps that is one reason." made several faults by misusing that name. now it is open to mi Among the party members executed was There were brutal deeds attributed to these just as long as people Imre Nagy, the man he had served. Nagy people, and I would state that the Hungar- Now their goal wa was a thickset man with a farmer's mus- ian people in 1956 were disappointed not side terrace: "If we ge tache and a schoolmaster's pince-nez. The because of socialism but because of these contracts, and then и ghost of Nagy was often with me, especially brutal distortions." After testing indivi as I walked in Budapest. He had liked to In Mr. Aczél's view the revolt had been taurants, the governn stroll the boulevards. boutonniere in place, started by young people wishing to reform areas, such as computer responding to the greetings of admirers. He the Communist Party, then was seized by And so one fine sp was a kindly man, popular. people wishing to overthrow the socialist László Barthó. 37, Another who had been in the Parliament system. And so it was crushed. This is the anxious expression Building, serving under Nagy, was János view taught in schoolbooks. wife and two childre 248 National Geographic, February 1983 Hungary: A Different ( 1 away to the Russian What had he learned in prison? "That it pe, Mr. Kádár could is impossible to make a people happy if it is In her dreams a young Gypsy, Gizella tions and popularity against their will; an ideology should not be Bogdán, travels far from her village near the Yugoslav border to the world of one to subject a people to tests and experi- high fashion she finds in magazines. A her ghost in this mat- ments. So it is our conviction that this sys- tough people with a footloose past, le I would hear from tem is to be built without unnecessary blood, Hungary's 320,000 Gypsies are slowly y, spoken as if a ver- sweat, and tears; we have to make being drawn into the rest of society. the return of evil: Rá- people happy, not force them." as, some remember, a a moon face, always BEGAN with marrow soup, on black suit and sil- panied by two men, I so rich and peppery it had to be eaten with slices of thick pistol pocket. brown toast; then I addressed er with the Russian the house specialty, Hungarian II. He destroyed op- beefsteak, smothered in tomatoes, bit, "like slicing sa- onions, paprika. My host, József eded to oppress his Hajdú, watched with interest, the doorbell rang af- now and then refilling my glass you were terrified." with a white wine from the Lake on helped inspire the Balaton region. József and his g those who served wife, Marika, operate the restau- jailed by him and in rant Aranyhid (Golden Bridge) as Kádár. There were a contract restaurant. It is an ex- ample of the individual enterprise ned office in the Par- that is now encouraged in Hun- : man opposite had gary. I wanted to learn a little of in institutions; once how it worked. read poetry. Now he József told me that the restaurant was abandon a certain salary for the risks of inister, a member of owned by the state catering company of entrepreneurship. secretary of the cen- south Buda, which operates about 160 res- In lieu of a card he presented me with a ying hair was swept taurants and coffeehouses. "They decided to freshly printed sheet of stationery. It read: ominent, his shoul- rent out some to employees who had worked "DATACOM, Számítástechnika [Comput- hted by more than a a long time with such companies. My wife er Technology].' He said there were three ence. and I had done so. There was a down pay- other partners in the company, that their cli- reasons to say that ment, and monthly payments. We can buy ents were state-owned enterprises, from the 1956 could be por- food and drink supplies anywhere." largest software house to small businesses. György Aczél said. The hours are long, but the results satisfy- "We have about ten years' experience in the five years in prison. ing. "Before we took over the restaurant, it field, a lot of connections. Some companies le events that led to offered just beer, some warm sandwiches. advertise; we have not felt the need." Now we have a kitchen, offer a wide vari- He cited an example: "One large-scale of leaders who mis- ety, everything cooked to order. And before, state company got in trouble with a con- ommunist Party and the restaurant was open only to 10 p.m.; tract. It needed a packaged program in one misusing that name. now it is open to midnight or even 4 a.m., month, a very short deadline. No one want- $ attributed to these just as long as people stay." ed the job. They came to us." te that the Hungar- Now their goal was to build a large out- While building their business, the part- re disappointed not side terrace: "If we get it, we will get tourist ners hold onto their old jobs. The company's ut because of these contracts, and then we will succeed!" business is handled "after work, on the After testing individual enterprise in res- weekends, whenever there is time. But it's the revolt had been taurants, the government allowed it in other impossible to go on like this always. One e wishing to reform areas, such as computer software. must choose. then was seized by And so one fine spring day I talked with "It's a little bit dangerous. The future is throw the socialist László Barthó, 37, who had the slightly hopeful. We do not know if there will be :rushed. This is the anxious expression of any man with a changes, and if so, in what direction. But the oks. wife and two children who is planning to company is useful and good, and in it I feel aphic, February 1983 Hungary: A Different Communism 249 that I am truly responsible for what I do." In the 1950s Hungary utilized a classic so- cialist economic system, one patterned on that of the Soviet Union in the 1930s and '40s. This was successful in turning an agri- cultural country into an industrial nation. But by the beginning of the 1960s, results di- minished. "We realized," one economist said, "that if we wanted to continue the eco- nomic development of our country, we had to change our methods." So in 1968 the state introduced the New Economic Mechanism, a set of rules that to a degree decentralized planning and control, reinstated the profit motive, allowed the functioning of supply and demand, and per- mitted accumulation of individual wealth. "I think our system is unique," the econo- mist said. "And the reason is that our posi- tion in the socialist bloc is unique. Almost 50 percent of our national income is based on foreign trade. So we are obliged to have a very elastic, very flexible system." OOR in natural resources, save for its P good earth and bauxite, Hungary must import (petroleum, natural gas, automobiles). To pay for those im- ports, it must export (pharmaceuticals, bus- es, axles, salami, wheat, alumina). About half the trade is with nonsocialist nations. In the scramble for foreign earnings Hun- gary vigorously seeks joint enterprises with Western companies and searches for new markets. The French and Italians like very much the taste of white rabbits? Well, send them 40 million dollars' worth a year. Send them also doves, pigeons, goose liver. Does the world seek new novelties? Send it a rather curious toy, the Rubik's Cube. Doing battle to protect a national I caught up with Ernő Rubik at the Acad- treasure, a helicopter sprays a vineyard emy of Applied Arts in Buda, where he is a of the northeast, where raisinlike aszú professor (page 235). I had read somewhere grapes are grown to produce a world that he had created the cube as a tool to help famous sweet wine. Praised by Voltaire his students; I expected an old, kindly, pos- and cherished by Peter the Great, Tokaj (Tokay) wines reflect the skills of nine sibly distracted gentleman. Instead I found centuries of vintners. a 38-year-old father of two, of moderate In a dank cellar of the state winery at height, with a finely wrought face, quick Eger, wine master János Árvai (right) eyes, clad in brown slacks and sweater and draws a sample of Egri Bikavér, called open-necked shirt. In the cabin of a jetliner, bull's blood for its velvet color and potent where he is often found nowadays, you kick. Excellent wines are also made in might mistake him for a French entrepre- the hills above Lake Balaton. neur, bound to or from a ski holiday. I asked if indeed he had developed his 250 National Geographic, February 1983 Refreshing their spirits after a long day of picking hops destined for a brewery cowering in a cell in Budapest, a farm couple unpack a little supper. The standard of living in She remembers the rural areas has steadily improved since the end of World War II, when the terrible fear that it Communists dismantled a feudal-like system of large estates. Today every village the appearance of is said to have electricity, though not every farmhouse has it. Mrs. Seifert P clear and clean tas a short woman, diminished. "We h gogues and prayer greatest Jewish co rope. Perhaps 80,0 pital with 200 beds kindergarten, a SC ters, and a kosher k older people who themselves. And W logical Seminary, such school remain Europe. It has 18 Soviet Union, one fr from the German D The cost for all th tions from the state, ganizations, and th Mrs. Seifert led gogue, built in 185 museum adjoining ject a small simple cl and the small gar Nazi legacy, a mas cube as a teaching aid. "Everything a teach- meeting rooms, a library, and an audito- think, 3,500 buried er does is related to the teaching process." rium. Something about the auditorium With that backg But a teacher is human like everyone else, seemed odd. It was, the official said, previ- peared good. The re and he creates for himself as well as for oth- ously a synagogue; the new part of the build- gan after 1956. "Th ers. "I could say the reason I started to be ac- ing had been built around it. All over in our time it is n tive in this field is simply my own character. Hungary synagogues now serve such pur- somebody has writte You could say it grew out of my profession. I poses. In them, if you have an imagination, a capital letter or wit am an architect and an interior designer." you may hear a terrible cry. interesting if someb Of his earnings (more than 30 million In 1944 German and Hungarian Nazis gious. What is impo1 cubes have thus far been produced) he rounded up 600,000 Jews and shipped them the country. would only say: "In my case, which would to concentration camps and death. Today "And after this be characterize the situation of other inventors perhaps 20,000 Jews remain outside Buda- By all rights, som also, I get a certain share of the sales. Of pest: not enough to keep the rural syna- should not be in Hui course, in the case of the cube, which is so gogues alive; only enough, perhaps, to guage is incompreh popular, the profit is quite large." muster the required ten Jewish men for ser- bors, if their history I Yes, he has other ideas, new ones, and is vices in a prayerhouse. So the synagogues is their own doing. pursuing them. Among them a book. were sold, for uses deemed appropriate. from? I talked with The Jews of Budapest were luckier. Their Ethnographical Inst S OMETIMES, in Hungary, a sense of total destruction in the ghetto was frustrat- Academy of Sciences tragedy sneaks up on you. I was visit- ed. Two days before a final effort by the Na- a large map of the So ing the bauxite mines near Tapolca zis to eliminate them all, the Soviet Army "Here is the place, when an official led me proudly into fought its way into the city. Mrs. Ilona Sei- western Siberia: Ne the miners' social and educational center. It fert, secretary-general of the Central Board east, not west, of t was a fine new building with classrooms, of Hungarian Jews, was then a young girl, region was then a P 252 National Geographic, February 1983 Hungary: A Different stined for a brewery cowering in a cellar with 84 other people. hunters and fishermen. They were a mix iard of living in She remembers the cellar door opening, the of Caucasian and Mongoloid. They are now ir II, when the terrible fear that it was a Fascist killer, then S. Today every village called the Finno-Ugric people. the appearance of a young Russian soldier. "Some of those people migrated north. Mrs. Seifert poured kosher slivovitz, Some became the Finns, while smaller clear and clean tasting, into glasses. She is groups settled across the northern part of a short woman, stout now, energy un- what is now the Soviet Union. There, per- diminished. "We have in Budapest 30 syna- haps 25 ethnic groups still speak Finno- gogues and prayerhouses; ours is now the Ugric languages. Some live a very archaic greatest Jewish community in middle Eu- life. Some are hunters and fishermen and rope. Perhaps 80,000 strong. We have a hos- also deal in reindeer breeding. We study pital with 200 beds, three old-age homes, a them, to find out about our own past. kindergarten, a school, two day-care cen- "Between the 12th and 10th centuries B.C. ters, and a kosher kitchen to prepare food for a change of climate took place in western Si- older people who cannot shop or cook for beria. The groundwater began to rise, the themselves. And we have the Jewish Theo- area became a sort of marsh, and the people logical Seminary, a century old, the only had to move. The ancestors of the Hungar- such school remaining in Eastern or middle ians moved south. They abandoned their Europe. It has 18 students; three from the life as hunters and fishermen and became a Soviet Union, one from Czechoslovakia, one pastoral people, always in movement. from the German Democratic Republic." Gradually, over a period of 2,000 years, they The cost for all these was met by contribu- moved to the west, arriving here in the tions from the state, international Jewish or- year 896." ganizations, and the Jewish community. Mrs. Seifert led me into the main syna- HAT REMAINS of the old cul- gogue, built in 1859 in Moorish style; the museum adjoining it, its most eloquent ob- W ture? "Elements in our folkloric music. Our skill at husbandry. And, ject a small simple cloth, six pointed, yellow; there are old people alive today who and the small garden behind it, another remember shamanism-how certain peo- Nazi legacy, a mass grave. "There are, I ple, when they became shamans, could cure ry, and an audito- think, 3,500 buried there," she said. illness, could locate lost or stolen goods, it the auditorium With that background the present ap- could find the answers to problems." official said, previ- peared good. The renaissance, she said, be- And there was the language, the language :W part of the build- gan after 1956. "Then Mr. Kádár said that that binds Hungarians together. Only 15 ound it. All over in our time it is not interesting whether million people in the world speak it, the >W serve such pur- somebody has written the name of God with nearly 11 million within Hungary, some ve an imagination, a capital letter or with a small letter. It is not four million outside-among them perhaps ry. interesting if somebody is an atheist or reli- two million in Romania, 800,000 in Czecho- Hungarian Nazis gious. What is important is to build together slovakia, 800,000 in Yugoslavia. S and shipped them the country. It is an irony that after World War I, when and death. Today "And after this began a new life." Hungary regained its independence for the nain outside Buda- By all rights, some say, the Hungarians first time in the modern era, it lost by a treaty ep the rural syna- should not be in Hungary at all; if their lan- 71 percent of its territory, much of its popu- ough, perhaps, to guage is incomprehensible to their neigh- lation. Those lost people remain in the con- Jewish men for ser- bors, if their history has been problematic, it sciousness of the Hungarians. Especially So the synagogues is their own doing. Where had they come those in Romania: "They are badly treated," ed appropriate. from? I talked with Dr. Péter Veres of the I was told more than once. were luckier. Their Ethnographical Institute of the Hungarian But there were life-affirming memories I hetto was frustrat- Academy of Sciences. He jabbed a finger at would take from Hungary. liked the street- al effort by the Na- a large map of the Soviet Union. cars, three little cars in tandem, bright yel- the Soviet Army "Here is the place, just east of the Urals, in low, darting this way, that way, like goldfish ity. Mrs. Ilona Sei- western Siberia: New evidence places it in a row the Bükk Mountains, lilliputian, the Central Board east, not west, of those mountains. The with forests, castles, pine smells, and then then a young girl, region was then a pine forest, the people you are out of them. Iliked Gypsy musicians, phic, February 1983 Hungary: A Different Communism 253 India Millions of sun lovers come each summer to Lake Balaton (above) from all over Europe to swim, sail, or just soak up a tan by a log-cabin-style tent (left). The number of tourists visiting Hungary has doubled during the past decade to more than ten million in 1981, 85 percent from socialist nations such as Czechoslovakia and East Germany. Winter sports are popular in the Bükk Mountains of the northeast, where a skiing family (right) takes a break for a bite of hot lunch. hic, February 1983 but you must be lingering over wine and with to the Tokaj wine region in the northeast, opposite. "I've just friends (and perhaps two of those friends are where the Great Hungarian Plain meets my daughter-18 falling in love; he will give her earrings, she the Carpathian Mountains. The southern We'll open it soon. will have her ears pierced). Iliked the young slopes of these mountains have been culti- cabbage and suc Budapest couple's flat on Molnár Street, the vated for the grape since medieval times. toilets! old-fashioned windows; the boarder who One old cellar, 2,700 meters of labyrinth, "Listen, I've jus uncorked plum brandy from his father's held 6,000 barrels; I sampled from 14. The yard. I have a nice ] house in Yugoslavia; the old lady who lived wines varied from clear, sharp new ones to retired factory wor alone and came each day just to sit quietly sweet, old, brownish ones, some made with "Here," he said, and hear voices and so hold on to life. raisinlike aszú grapes. As I sipped, very con- homemade sausag Ilike Hungarian poetry, the way it evokes tentedly, a wine company official told me bread, and a knife. the mystery of the land, and the way tragedy that about half of the vineyards were in pri- By now I knew 1 runs through it as rivers, creeks, and rivu- vate hands, with 14,000 owners. Grapes re- the sausage, drank lets of rain run through the land itself. I like quire intensive seasonal work, he said. But a secular sacramer its devil-take-the-hindmost defiance. The the owners can call on relatives and friends prospects. poet Attila József shocked his university at the harvest; they are all inspired by the teachers in the early 1900s but later won the profit motive to relentlessly pursue the de- TIMES I wa hearts of his countrymen with this bold chal- manding handwork. A country gove lenge to life, its blows, its demands: On the way back to Budapest I stopped at adopting asp Without father without mother another famous wine-producing center, ism and We without God or homeland either Eger. In the little limestone valley where the the while wrapping caves cluster, I chose one at random: per- Marxist dialectic. I without crib or coffin-cover without kisses or a lover haps because the vintner, standing at its en- might help clarify n trance, appeared rough cut, the cave simple. I called on Dr. E Even on journeys with only pleasure in As he drew the wine, the vintner talked of of the Center for V mind, I found more ways that individual business. "It's good. I sell to the Hilton. He pest. He is a young enterprise is harnessed in Hungary. I went pointed out across the valley to the caves quick in word and n Shoulder to shoulde highest ranking Sovie in Hungary, third froi leading military and { officials salute the yes officer corps at a Con: Day ceremony. Since the unsuccess of 1956, when Soviet 1 into Budapest, the pa controlled governmen: strictly supported the Union in foreign polic as it experiments with reforms at home. With four Soviet di stationed in their cow Hungarians are worri unrest in Poland may relations with Moscow A chalked heart (rig Budapest wall-still P the gunfire of 27 years symbolizes the feeling matter what, life will & 256 National Geographic, February 1983 in the northeast, opposite. "I've just bought a cellar there for part in the events of 1956, and then spent a Plain meets my daughter-180,000 forints [$4,800]. year in jail. There he learned, he said, "not The southern We'll open it soon. We'll have food, stuffed to be afraid. In Eastern Europe the person have been culti- cabbage and such, and even beautiful who learns this has learned the most impor- edieval times. toilets! tant thing. Then one indeed is free." of labyrinth, "Listen, I've just bought a fourth vine- And today? "A kind of game is played in from 14. The yard. I have a nice home, a bicycle. I'm 61, a this country. Everybody knows the rules, new ones to retired factory worker, but I have a life! what he can do, what he can accept for some made with "Here," he said, pulling from a paper bag what. And this is more or less working. It sipped, very con- homemade sausage, a slab of fat bacon, has been working for the past 20 years." official told me bread, and a knife. Glasses were refilled. There were at least two results. One vards were in pri- By now I knew the ritual: As we cut into edged on politics. Grapes re- the sausage, drank the local wine, it seemed "We have a kind of slowly developing plu- he said. But a secular sacrament, commemorating life, ralism. There are special-interest groups, and friends prospects. agrarian and industrial lobbies, the cooper- inspired by the ative farms and those in the second or pri- pursue the de- T TIMES I was confused: Here was a vate economy, and so on. And they have a A country governed by Communists, number of ways of protecting their interests. apest I stopped at adopting aspects of Western capital- All behind the scenes." oducing center, ism and Western socialism, and all And there was an important sociological valley where the the while wrapping the reforms in veils of result. a sort of healing. "Before World War at random: per- Marxist dialectic. I wondered if a sociologist II we had very strong class identities. After tanding at its en- might help clarify matters. that war these identities were destroyed, the cave simple. I called on Dr. Elemér Hankiss, director conscipusly and surgically, by the Commu- vintner talked of of the Center for Value Sociology in Buda- nist Party at that time. Everybody was mor- the Hilton. He pest. He is a youngish man, spare in body, tified and humiliated. If you were a small to the caves quick in word and movement. He had taken landholder, you were called an oscillating Shoulder to shoulder with the highest ranking Soviet officer in Hungary, third from left, leading military and government officials salute the year's new officer corps at a Constitution Day ceremony. Since the unsuccessful revolt of 1956, when Soviet tanks rolled into Budapest, the party- controlled government has strictly supported the Soviet Union in foreign policy, even as it experiments with social reforms at home. With four Soviet divisions stationed in their country, many Hungarians are worried that unrest in Poland may upset their relations with Moscow. A chalked heart (right) on a Budapest wall-still pocked by the gunfire of 27 years ago- symbolizes the feeling that, no matter what, life will go on. February 1983 Pride and joy in their eyes, József and Katalin Nagy (right) emerge from a Reformed Church in Debrecen after the baptism of their son, Lörinc. Dubbed the Calvinist Rome, Debrecen is the spiritual center of Hungarian Protestantism and the home of a 450-year-old seminary. Dr. Tivadar Rózsay (below right) emphasizes a point in the religion class he teaches. On a carpet of flowers that winds all through the village of Csömör, a priest blesses the congregation (right) during the Day of the Lord procession-Urnapi körmenet. Each family decorates a section of the carpet with a variety of bright patterns, combining their artistic talents and Roman Catholic heritage. Traditional in their clothes as well as their customs, the women of the village (left) return home after Mass. Of the nation's estimated nine million church members-only a portion of them active-six million are Roman Catholics, two million belong to the Reformed Church, and 500,000 are Lutherans. Hungarian Jews- 600,000 of whom were shipped to Nazi concentration camps-now number only 100,000. 258 National Geographic, February 1983 were called stead of the of guilt was "With the my of the pa ing of good : identity. W can achieve have been g three or four OCIO] S poets memo seize complement me at No. 9 long the mo Budapest. t house crami 80, the most writer, appe and some sig Cakes we Mr. Illyés in the 1920s. has been; ] revolutionar He spoke long ago on circumstance concluded fr geous people But for him Hungarian I work, if they they can wor As for too feature of th Hungarian ( country. Not very much lil ficial passpor od. and one ( any feeling t perhaps it is 1 this means he peasant; if you were an intellectual, you "And I could be on a train and have a con- were called a servant of fascism. And so in- versation. The other passenger may dis- stead of these old identities, a kind of feeling agree, and may say so, but it is inconceivable of guilt was substituted. A skillful strategy. that he would leave the train at the next stop "With the prosperity, the growing econo- and request the police to come. It is just im- my of the past 20 years, there is a slow grow- possible to imagine that. So there is a feeling ing of good feeling about ourselves, a sort of of freedom. identity. We have begun to feel maybe we "And, in relation to this. the leading strata can achieve something, and these feelings of the society somehow have adjusted to the have been growing very quickly in the past taste of the inhabitants of this country. They three or four years." have a rather modest attitude and a modest way of life. For instance, János Kádár lives OCIOLOGISTS WORK from data: in a house nearby. The garden does not be- S poets and writers from intuition. long to him, and the house itself has three memories, perceptions, as if trying to rooms only." seize reality from some ether. They The future? "The small people always de- complement one another. The taxi dropped pend on the big powers." me at No. 9 Józsefhegyi Street on Rose Hill, long the most fashionable neighborhood in T WAS a bright, sunny day. The noises of Budapest. An older woman let me into a house crammed with books. Gyula Illyés, I the traffic in the city below arrived on Rose Hill only as a murmur: You could 80, the most distinguished living Hungarian hear the songs of birds, the voices of an writer, appeared, a man with a kindly face old man and his grandson carried by the and some signs of recent illness. breeze. I decided to walk down to the city. Cakes were brought. wine opened. What do the Hungarians think in their Mr. Illyés began publishing his poems heart of hearts? Would they prefer. as one in the 1920s. He is not a Communist, never Western diplomat suggested, to be like Aus- has been; he calls himself a leftist, a tria, neutral, free of bonds to East or West? I revolutionary. don't know. Perhaps in a small country in He spoke of how the Magyars had come the middle of Europe with powerful neigh- long ago on horseback and under romantic bors, one deals with realities, while wishes circumstances, and how Hungarians have atrophy. I do know that most Hungarians concluded from this that they are a coura- believe their life to be "not bad"; much better geous people, very brave. with hot tempers. than before, better than that of their socialist But for him, "the genuine quality of the neighbors. But I know also that two ques- Hungarian people is that they are able to tions hang like specters over those with work, if they have a chance to do that, and if memories: "Will there be war? What will they can work freely." happen after Kádár?" As for today: "The most characteristic The first question is universal, the second feature of the situation nowadays is that Hungarian. While Communism wears a Hungarian citizens can legally leave the humanistic face in Hungary today, the clas- country. Not immediately, but if one would sic party apparatus of control remains in very much like to leave, one could get an of- place, to be taken in hand and wielded by ficial passport within a relatively short peri- another Rákosi, should one arise. And, as od, and one can come back. So there is not one former Communist told me, "the next any feeling that we are closed in. For you chapter will be written in Moscow." We perhaps it is not so easy to understand what quickened our steps, the ghosts and I. down this means here in central Europe. Rose Hill. Laid-back cowboy of Hungarian legend, today's csikós displays his mastery of horses mainly at tourist shows like this one-though it's not clear in this case whether he's resting or being rested on. Their history has helped make Hungarians a pragmatic people who make the best of what life gives them. Hungary: A Different Communism 261 Chris THE WHITE HOUSE WASHINGTON 89 JUN 21 P4: 40 June 16, 1989 Memorandum to Gregg Petersmeyer From: Jim Pinkerto Re: A good deed from Gallo Winery As the attached clip from today's Wall Street Journal indicates, Gallo has voluntarily suspended sales of cheap wine in the "skid row" section of San Fransisco. I think this is exactly the sort of benevolent project that the President ought to be encouraging. Note that we don't need a government program, or any sort of bureaucracy. All we need is for the President to offer the appropriate encouragement to the San Fransisco community leaders and to Gallo. In my book, these people and organizations are worthy "points of light. " Attachment # CC: Roger Porter Bill Roper bcc: Dave Demarest THE WALL STREET JOURNAL FRIDAY. JUNE 16, 1989 B3 periment would be determined. Gallo Conducts Test The decision follows efforts by a re- cently formed organization called Safe and To Placate Critics Sober Streets. made up of merchants. resi- hn dents and community groups. That group Of Its Cheap Wines sought to convince local markets and liq- uor stores to quit selling cheap wines. in hopes of decreasing the number of alco- holics on the streets. especially near the Partial Ban in San Francisco neighborhood's park. Aims to Determine Effect "We think it's going to make a differ- ence." said Nancy Russell. director of the r On Alcoholism Problem North of Market Planning Coalition. lo- 11 cated in the Tenderloin. "Most of the bot- S tles I sweep up outside our doorway every 1 By CARRIE DOLAN day are wine bottles." The group hopes ne Staff Reporter of THE WALL STREET JOURNAL other makers of cheap liquor may follow its MODESTO. Calif. E&J Gallo Winery suit. Ms. Russell said Gallo's decision says bans on booze don't "deter alcoholics shows "a company admitting their prod- JN from seeking out the alcohol they unfortu- ucts may not be moral. Those wines are om nately seem to need." aimed at street alcoholics. There are no led But just to test that belief. the company other customers." ing said it will temporarily stop selling its po- The Tenderloin district. home to about uld tent. cheap wines in San Francisco's so- 25,000 including many elderly and low-in- ted called Tenderloin district. come residents. has long been plagued with drinking and drug-abuse problems. In ng- Gallo. the nation's largest volume pro- ses recent years. the neighborhood has experi- ducer of wine. said it will halt sales of its aw enced some revitalization. spurred in part Thunderbird and Night Train wines for SIX by the influx of Southeast Asian immigrant ng months "to see if it makes any differ- families. There are now an estimated 5.000 ence. The company said it doesn't believe children living in the Tenderloin. on. that stopping sales of the wines. which are "We don't think for a minute it will )r- 18% alcohol and typically retail for less he overcome all the problems. but it's a step than SI a bottle. will help those "afflicted in right direction. said Phillip Faight. 'O- with alcoholism." chairman of the Safe and Sober Streets he A Gallo spokesman said if the sales ban group. "I'm absolutely convinced we !I see S. does seem to improve the alcoholism prob- to progress. Any progress IS great progress. lem in the Tenderioin. "we may do the I'm tired or stepping over drunks." Mr. it same in other neighborhoods. However. Faight IS owner or The Ram S Head. a Ten- he declined to say how success of the ex- der:oin bar. e r Services of Mead Data Central PAGE 2 2ND STORY of Level 2 printed in FULL format. Copyright (c) 1989 Newsweek May 22, 1989, UNITED STATES EDITION SECTION: BUSINESS; Pg. 64 LENGTH: 695 words HEADLINE: Wall Street Philanthropist BYLINE: MICHAEL MEYER in Budapest HIGHLIGHT: George Soros rains money on the East bloc BODY: Two years ago George Soros was the hot performer on Wall Street. His Quantum Fund, started with $ 250,000 in 1969, had grown to a staggering $ 2.5 billion. Then came the October '87 crash. In a few frenzied days, he lost $ 750 million - a devastating blow from which he has never fully recovered. Now, perhaps in consolation, the New York financier is extending himself on another front: Eastern Europe. Recently he was in Warsaw, plugging his plan to revive Poland's economy by swapping foreign debt for stakes in Polish industry. Last week he was in Budapest, helping set up the communist world's first Western-style business school. Soon he was off for Moscow. Soros isn't canvassing the Soviet bloc for opportunities to make more money; instead, he's looking to give it away. Soros, 58, is a new breed of nationalist philanthropist. Born in Hungary, he is proud of his East European roots and thinks he can use some of his diminished but sizable $ 300 million fortune to speed social change behind the Iron Curtain. He puts his money where his heart is. Five years ago he set up the Soros Foundation in Budapest; today it dispenses some $ 3.5 million a year for everything from international art exchanges to underwriting Hungary's independent political groups. Similar foundations were established last year in Poland and China, each with endowments of $ 1 million, and Soros expects to put up to $ 4 million a year into a new Soros Foundation in Moscow. "Communism is collapsing," says Soros. "My goal is to speed the process by helping to create more open societies." Busy schedule: His first step is to establish ties with key elements in the East bloc. In Budapest last week, he bounced from a meeting with a leading Hungarian industrialist to lunch with the country's foreign minister to coffee with student radicals. When a friend complained about Budapest's uninspired modern architecture, Soros proposed an international design competition. "Communism cannot withstand comparison to the West," he says. "If you want to break it down, you only need to show an alternative." Soros does just that. "He uses his money well," says a Western diplomat in Budapest. "He puts it into the right hands, and it makes a huge difference." Last year the Soros foundation spent more than $ 1 million to send about 800 Hungarian academics, businessmen and students abroad, mostly to the United States and Britain. It bought books for local libraries around the country, put up money to refurbish small-town churches and funded "oral histories" on subjects ranging from Gypsy culture in Transylvania to Hungary's bloody 1956 LEXIS® NEXIS® LEXIS® ® NEXIS® Services of Mead Data Central PAGE 3 (c) 1989 Newsweek, May 22, 1989 uprising against Moscow. It also dispatched American business professors to Budapest's Karl Marx University of Economics. The quite blatant idea is to train communists to be capitalists. Soros's dabbling often strays into politics. In Poland, he is reputedly channeling money to solidarity, the newly legal trade union that is contesting the well-heeled Communist Party apparatus in the East bloc's first free elections in more than 40 years. He has been especially generous to Hungary's political opposition, buying computers and copying machines and hiring dissidents who lost their jobs for political reasons. Hungary's Communist leaders are remarkably tolerant of his behavior. Just two years ago the regime harassed Soros to the point that that he threatened to pull out. Today a party spokesman shrugs off his political tinkering: "He does many things we like, and some things we don't. But it's hard to ban one activity and not the other." So Soros enjoys a relatively free hand in Budapest and, increasingly, in Moscow, Poland and Beijing. Whether Soros can continue his largesse will depend on the health of his fund. Two years after the crash, the Quantum Fund still languishes. With $ 1.8 billion in assets, it has recovered only a bit of its lost ground and recently was battered once again by a big wrong bet on the U.S. dollar. Eastern Europe can only hope that Soros, once dubbed the "world's greatest money manager" by Institutional Investor, hasn't lost his financial magic. GRAPHIC: Picture, Training communists to be capitalists: Soros, ANDY FREEBERG LEXIS® NEXIS® LEXIS® NEXIS® Services of Mead Data Central PAGE 4 5TH STORY of Level 2 printed in FULL format. Copyright (c) 1989 The New York Times Company; The New York Times March 27, 1989, Monday, Late City Final Edition SECTION: Section D; Page 8, Column 5; Financial Desk LENGTH: 528 words HEADLINE: INTERNATIONAL REPORT; Investment Adviser Seeks Funds for Soviet Foundation BYLINE: By KATHLEEN TELTSCH BODY: After contributing millions of dollars from his personal fortune to the project, George Soros, a Budapest-born money manager, is looking for wealthy Americans to contribute to a foundation that he established in the Soviet Union. The foundation, the Cultural Initiative, is intended to bolster Mikhail S. Gorbachev's attempts to establish a more open society by encouraging innovations in education, arts and sciences. It has its headquarters in Moscow and will open regional offices later. It has granted $1.5 million for 25 projects that include the writing of a new Russian encyclopedia, the manufacture of wheelchairs and a program to help consumers test food for harmful substances. Applications are being sought for new grants. Mr. Soros, a financier, is the president of Soros' Management Fund Inc. and the founder and head of the Quantum Fund, money market funds. In the past five years, he set up foundations in Hungary and China and is starting one in Poland. 'I'm an Independent' ''I'm an independent,' Mr. Soros said in a recent interview. ''I have certain values and beliefs, and I can afford to put money behind it. I consider what I do an indulgence, and it has been a lot of fun.' The Soros foundation in Hungary provides $3 million a year to support hospitals, cultural activities and travel programs for scholars and artists. In China, a club was opened last year in Beijing to serve as a meeting place for writers, artists and scholars, with others planned outside the capital. The foundation in Moscow is in a 17th century palace that is being renovated to provide office space, meeting rooms, a concert hall and a library equipped to give Soviet researchers access to computer data in the United States, including information from the Library of Congress. Mr. Soros said he is looking for contributions to expand the Soviet foundation's operations and make it less dependent on one contributor. He has donated $3 million, and said he would match up to $2.5 million in outside contributions, which he hopes to attract from American philanthropists. LEXIS® ® NEXIS® LEXIS NEXIS® ® Services of Mead Data Central PAGE 5 (c) 1989 The New York Times, March 27, 1989 Soviet Intellectuals Mr. Soros invited Soviet intellectuals to serve as foundation board members and set policy. His own role is as financial supporter and adviser. The Soviet Cultural Fund supplied the building. Contributions to the foundation come partly from the Soviet Peace Foundation, which receives donations from workers and organizations. ''If Gorbachev were to succeed in transforming Soviet society into an open society, there would be no need to think of the Soviet Union as our arch enemy and the Soviet Union could become an ally of the West in much the same way as Japan or Germany, an economic rival but an ally and friend,'' he said. The Soviet foundation has stimulated so many innovative proposals, it sometimes seems to be ''going off in all directions,' said Antonina W. Bouis, an American of Russian ancestry who is a specialist in Soviet literature and co-chairman of its board. ''It is as if the people have been waiting a long time to try out new ideas in the fields of economics, environment, consumerism, legal affairs, architecture, whatever. SUBJECT: CULTURE; SCIENCE AND TECHNOLOGY; EDUCATION AND SCHOOLS ORGANIZATION: CULTURAL INITIATIVE (SOVIET FOUNDATION) NAME: SOROS, GEORGE; GORBACHEV, MIKHAIL S; TELTSCH, KATHLEEN GEOGRAPHIC: UNION OF SOVIET SOCIALIST REPUBLICS (USSR) LEXIS® ® NEXIS® ® LEXIS NEXIS ® Services of Mead Data Central PAGE 16 15TH STORY of Level 1 printed in FULL format. Proprietary to the United Press International 1983 September 23, 1983, Friday, PM cycle SECTION: Washington News LENGTH: 440 words BYLINE: By JIM ANDERSON DATELINE: WASHINGTON KEYWORD: Bush-React BODY: Hungary has politely turned down a U.S. invitation to move out of Moscow's orbit and suggested that it could play a role as a moderating influence in the dialogue between the super-powers. The American invitation to Hungary, as well as Romania, to play a role more independent of the Kremlin was made publicly in Vienna Wednesday by Vice President George Bush at the conclusion of an eastern European tour. He said the United States would respond positively to those eastern European nations who took a more western-oriented policy. The Bush speech was described by a State Department spokesman'as a restatement of the U.S. policy of 'differentiation'" -- treating Soviet allies differently, according to their behavior. In that policy, East Germany would be given less trade or credit benefits than Hungary, for example. But the timing of Bush's remarks, in the aftermath of world reaction to the Soviet shooting down of the Korean airliner over Sakhalin island on Sept 1 -- made it a sensititve issue. The approach for better relations was also made privately to Hungarian Foreign Minister Peter Varokyin, who happened to be in Washington on an official visit when Bush made the speech in Vienna. A Hungarian official, who could not be further identified under the ground rules of the talk, told reporters that Hungary seeks better relations with the Union. United States, but not at the expense of Hungary's close ties with the Soviet 'We want to be partners (with the United States), but you have to accept us with the Soviet Union,' he said. as we are. We are members of the Warsaw Pact and have a common foreign policy However, the official expressed deep concern over the strained relations different role than it does now: between Moscow and Washington and suggested that Hungary could play a 'Translating from Russian to English is not only a language problem. If no effort is made to understand the nuances, it will be very difficult. In this period, countries such as Hungary can do much to damp emotions and to have a FXIS® PAGE 17 Proprietary to the United Press International, September 23, 1983 translasting role in order to create the conditions for a minimum of mutual trust. The official said the airliner incident has maginified the lack of understanding. 'Since the Soviet Union was formed in 1917, he said, ''It has not had ten years when it did not feel threatened and encircled from the outside. That feeling is so strong ... that they still feel threatened, and react. He insisted the Soviets, like the United States, want a strategic balance at a lower level of armaments. ''If we are not going to blow up the world, we'll have to work together on our problems. LEXIS® NEXIS® LEXIS® NEXIS Services of Mead Data Central PAGE 18 32ND STORY of Level 1 printed in FULL format. The Associated Press The materials in the AP file were compiled by The Associated Press. These materials may not be republished without the express written consent of The Associated Press. September 20, 1983, Tuesday, PM cycle SECTION: International News LENGTH: 275 words DATELINE: BUDAPEST, Hungary KEYWORD: Bush BODY: Vice President George Bush today accused the Soviets of bargaining in bad faith at the intermediate-range missile talks, and said NATO would begin deploying new arms in December unless an accord is reached. "We have two tracks, one is negotiating, one is deployment," Bush told reporters in Communist Hungary before flying to Vienna at the end of a tour of East bloc nations. He said if the Soviets and Americans fail to agree at the talks in Geneva, "that deployment track is firm," he said. Bush indicated that talks on the weapons would likely continue beyond their Nov. 15 deadline, saying, "We'd be still willing to negotiate on the theory that what goes in can also come out." The vice president, listing U.S. figures showing a progressive increase in the number of Soviet SS-20 intermediate-range missiles, said the Soviets at Geneva "keep saying there is a balance when their numbers are going up and the (Atlantic) Alliance's stay at zero." NATO plans to begin deploying 572 U.S. cruise and Pershing 2 missiles at the end of the year to counter the Soviet threat. Earlier, Bush met with Pal Losonczi, head of Hungary's Presidential Council, whose duties are largely ceremonial. They discussed Hungarian-U.S. relations and "opportunities for the promotion of cooperation," the official news agency MTI reported of the closed meeting. "Both parties stressed the importance of disarmament talks and confirmed their view that meetings that can contribute to the reduction of international tension were of paramount importance," the report said. Bush laid a wreath at the Hungarian Heroes Monument in central Budapest this morning. EXIS NEXIS® FXIS® N 'YIS PAGE 19 38TH STORY of Level 1 printed in FULL format. Copyright (c) 1983 The New York Times Company; The New York Times September 20, 1983, Tuesday, Late City Final Edition SECTION: Section A; Page 4, Column 3; Foreign Desk LENGTH: 334 words HEADLINE: BUSH PRAISES HUNGARY ON RIGHTS BYLINE: UPI DATELINE: BUDAPEST, Sept. 19 BODY: Vice President Bush praised Budapest's human rights record today and said the United States wanted better relations with all East European countries. But Mr. Bush also stressed that the North Atlantic Treaty Organization, while seeking a ''fair agreement'' on arms control, would respond to Soviet threats to military stability in Europe. In Rumania, before flying to Hungary, he said that even though Washington was willing to prolong the United States-Soviet arms control talks in Geneva beyond the November cut- off date, new United States Pershing 2 and cruise nuclear missiles would be deployed in Europe in December if no agreement was reached by then. Mr. Bush arrived in Budapest on the sixth leg of a 10-day, 7-nation tour of North Africa and Eastern and Central Europe. 'We in the United States are heartened by Hungary's efforts to expand contacts, to foster tolerance and to meet the commitments that bind both our countries under the Helsinki final act, he said in a toast at a dinner at which Prime Minister Gyorgy Lazar was host. In the relations between our two nations, human rights and fundamental together, he said. freedoms have not represented a point of discord, but instead brought us closer He called United States-Hungarian relations a model for the rest of the world and added, ''The United States is deeply committed to the construction of a sounder, more cooperative and constructive relationship with all of the nations with which your country is aligned. Mr. Bush, however, said that NATO ¹¹⁵ responding and will continue to respond to threats to the military stability that has for nearly four decades kept the peace in Europe and much of the rest of the world. "We seek agreements that are in the enlightened self-interest of both alliances for and of all peoples, he said. ''We look for signs of understanding, to the outstretched hand that seeks a fair agreement. a readiness to construct this new relationship and we will readily respond LEXIS® NEXIS® LEXIS® NEXIS Services of Mead Data Central PAGE 21 39TH STORY of Level 1 printed in FULL format. Copyright (c) 1983 Reuters Ltd. September 20, 1983, Tuesday, AM cycle SECTION: International News LENGTH: 95 words DATELINE: BUDAPEST, Sept 20 KEYWORD: Bush-Reagan BODY: Vice President George Bush predicted today that President Reagan would run for a second term next year and said his chances for victory were good. Bush told a news conference at the end of a two-day visit to Hungary that he expected to be Reagan's running mate, as the president had made clear publicly he wanted him on the ticket. "If the United States economy continues to recover as at present, President Reagan is going to be exceptionally difficult to beat," Bush said. "If the election forward." were held today, he would beat anybody the democrats would put EXIS NFXIS® I EXIS® NEXIS Services of Mead Data Central PAGE 22 40TH STORY of Level 1 printed in FULL format. Copyright (c) 1983 Reuters Ltd. September 20, 1983, Tuesday, PM cycle SECTION: International News LENGTH: 470 words BYLINE: By Ronald Farquhar DATELINE: BUDAPEST, Sept 20 KEYWORD: Bush BODY: Vice President George Bush and Hungarian Communist Party chief Janos Kadar are believed to have exchanged widely diverging views on the dangers of new nuclear weapons in Europe in yesterday's talks in the Hungarian capital. No details were disclosed of Bush's meeting with Kadar or of his talks with Prime Minister Gyoergy Lazar, but Lazar said in his toast at an official dinner for Bush that a new round of the arms race threatened Europe with the gravest consequences. He said Hungary was against new nuclear missiles being based in countries at present without such weapons. Lazar seemed clearly to be referring to NATO's plans to deploy new U.S. missiles in Western Europe and the likelihood Moscow would base new missiles in some Warsaw Pact countries if East-West arms control talks in Geneva fail. In his reply Bush, who arrived yesterday on the last leg of a five-day tour through East Europe, said NATO would continue to respond to threats to military stability in Europe. He said Washington wished to negotiate agreements "in the enlightened self-interest of both alliances." Bush said he came away from his 1- 3/4 -hour talks with Kadar "convinced that it is possible for the members of our two alliances to talk soberly and responsibly in a mutual search for understanding and for peace." He described the 71-year-old Hungarian leader as "a man of enormous capacity and leadership capability." Lazar said the visit by Bush, the highest-ranking America official ever to come to Hungary, was "an important landmark." He said that despite international tensions and differences between their countries there were possibilities of increasing trade and economic, scientific and cultural cooperation as well as human contacts. U.S. diplomats in Budapest said the visit was intended as a mark of recognition of Hungary's comparatively relaxed social and cultural policies and continued commitment to economic reforms and cultural ties with the West. EVIS® NEXIS® EXIS NEXIS PAGE 23 (c) 1983 Reuters Ltd., September 20, 1983 Bush praised Hungary's human rights record and its efforts to foster tolerance and said there was no discord between the two countries on human rights and fundamental freedoms. In a reference to Hungary's moves to honor its Western debts, Bush said Washington understood and admired Budapest's efforts to maintain fiscal solvency. The United States was also impressed by Hungary's economic reforms and innovative policies giving opportunities for enterprising and creative citizens. Economic relations between the countries were good and active and should become more regular and dynamic in future years, Bush said. The Vice President winds up his visit tomorrow with a call on President Pal Losonczi before leaving for Vienna, the final stop on a seven-nation tour that has taken him also to Morocco, Algeria, Tunisia, Yugoslavia and Romania. LEXIS® NEXIS® LEXIS® NEXIS Services of Mead Data Central PAGE 24 46TH STORY of Level 1 printed in FULL format. The Associated Press The materials in the AP file were compiled by The Associated Press. These materials may not be republished without the express written consent of The Associated Press. September 19, 1983, Monday, AM cycle SECTION: International News LENGTH: 686 words HEADLINE: Bush and Western leaders YOW continued efforts on arms reduction BYLINE: By GEORGE JAHN, Associated Press Writer DATELINE: BUDAPEST, Hungary KEYWORD: NATO Missiles BODY: Vice President George Bush told the leaders of this Soviet-bloc country Monday that America would continue nuclear arms talks talks with the Soviets "in good faith" to reduce the threat of war. Also on Monday, the United States received renewed expressions of support from British, West German and Italian leaders in the U.S.-Soviet negotiations in Geneva on medium-range missiles in Europe. Bush, at a dinner given by Prime Minister Gyoergy Lazar, referred to the Geneva talks and said the United States has put forward proposals "to lower the levels of the most dangerous, destabilizing weapons now in Europe." The vice president, winding up a seven-nation tour, flies to Austria Tuesday and then returns to the United States. Lazar, in his response, did not directly criticize the United States, but said Moscow's position in the Geneva negotiations "is fair and certainly suitable to serve as grounds for substantive negotiations." The missile talks have entered their last scheduled phase, and if there is no progress, the North Atlantic Treaty Organization plans to begin deploying 572 U.S.-made Pershing 2 and cruise missiles in Western Europe later this year. Moscow has indicated it would react by placing more new SS-20 missiles in Eastern Europe. Bush, in Romania Sunday, said deployment of the NATO missiles would go ahead as planned, but the Geneva talks could extend beyond the Nov. 15 cutoff date and the United States would negotiate for "as long as it takes." Both Romania and Hungary are Soviet allies, but Romania has skirted the missile issue while Hungary supports the Soviet stand, accusing the United States of seeking arms superiority. There were these other developments involving the Geneva talks: LEXIS® NEXIS® I FXIS® NEXIS PAGE 25 The Associated Press, September 19, 1983 In Washington, administration sources disclosed that President Reagan has written the heads of all the NATO governments telling them the United States was prepared to make limited changes in its negotiating position. One source said, "The changes under consideration are by no means earthshaking. They are mostly at the edges." He declined to provide details, but said there would be no yielding in the basic U.S. stand. West German government spokesman Peter Boenisch said in Bonn that Reagan had written to Chancellor Helmut Kohl "several days ago" describing "modified proposals" that the United States would offer in Geneva. He said the contents of the letter were secret, and denied a report in the Bonn-based Die Welt newspaper that said Reagan was willing to reduce the number of new missiles to be deployed by NATO from 572 to 300. "I have not read the letter," Boenisch said. "Those who have read the letter told me that number (300) is wrong, but they refused to name the number." British Prime Minister Margaret Thatcher, visiting the Netherlands, told a news conference in the Hague that even if NATO begins deploying the new missiles, the Geneva negotiations should continue. The deployment could be halted at a later date if progress is made in the talks, she said. In an interview with the British Broadcasting Corp., she said it was certain some NATO missiles would be installed before the end of the year, but again expressed hope the deployment wouldn't scuttle the Genera negotiations. Mrs. Thatcher will to to West Germany Tuesday and meet with Kohl, who said Saturday that it would be the beginning of the end of NATO if West Germany went back on its commitment to deploy some of the new missiles. In Rome, Italian Premier Bettino Craxi also said the West should press for an agreement with the Soviets at Geneva even if NATO goes ahead with its deployment plans. Craxi's office said the premier was responding to a letter from Reagan last week asking for his "personal judgment" before the United States took a final position at the negotiations. Craxi's office reported the socialist premier reaffirmed Italy's support of the NATO deployment plan if there is no Geneva agreement and said the Western allies should be prepared to state "their readiness to resume the negotiations with equal resolution even after a possible start of deployment." LEXIS® NEXIS® LEXIS® NEXIS OUNT IULNTIME WHITE HOUSE SITUATION ROOM 2/5 PAGE 01 OF 14 PRT: HUGHES KELLER STUDDERT SIT: BENKO BLACKWILL RICE VAX <PREC> IMMEDIATE <CLAS> CONFIDENTIAL<DTG> 251253Z MAY 89 FM AMEMBASSY BUDAPEST TO SECSTATE WASHDC IMMEDIATE 5700 E X C 0 N D E N A SECTION 01 OF 96 BUDAPEST 05597 D EXDIS I DEPT PASS TO WHITE HOUSE FOR STUDDERT AND KELLER S NSC FOR BLACKWILL EUR/EEY FOR SWIHART E.0. 12356: DECL: OADR TAGS: OVIP, HU SUBJECT: SUGGESTED TEXT OF PRESIDENT BUSH'S SPEECH 1. CONF DENTIAL ENTIRE TEXT. E 2. THE FOLLOWING ARE THE EMBASSY'S SUGGESTED REMARKS X FOR THE PRESIDENT'S ADDRESS TO BE MADE AT KARL MARX D UNIVERSITY DURING HIS VISIT TO HUNGARY. I - S 3. BEGIN SPEECH. QUOTE. - LADIES AND GENTLEMEN. DOCTOR CSAKI: - I THANK YOU FOR YOUR KIND INVITATION TO SPEAK HERE E AND THIS WARM WELCOME. MAY I ADD THAT THOUGH AT X FIRST GLANCE IT MAY SEEM SURPRISING TO SEE AN D AMERICAN PRESIDENT SPEAKING AT A UNIVERSITY CALLED I KARL MARX. AT THIS TIME IN THE DEVELOPMENT OF S EAST- WEST RELATIONS I CANNOT BUT THINK IT IS A VERY APPROPRIATE PLACE AFTER ALL. - THIS COUNTRY HAS CHANGED AMAZINGLY SINCE MY VISIT IN 1983: THERE HAVE BEEN MAJOR CHANGES IN THE POLITICAL DECLASSIFIED Department of State Guidelines E.O. 12958, SEC 3.4 (B), July 21, 1997 By It NARA, Date 05/30/23 CONFIDENTIAL OUNT IDENTIAL WHITE HOUSE SITUATION ROOM PAGE 02 OF 14 CLIMATE; THERE IS NOW STARTLINGLY OPEN POLITICAL DEBATE IN THE PRESS: THE SOVIET UNION HAS IN WHAT WE HOPE S JUST A FIRST STEP WITHDRAWN SOME OF ITS TROOPS FROM HUNGARIAN SOIL THE FIRST MEASURES TOWARD AN EFFICIENT, MARKET-ORIENTED ECONOMY HAVE BEEN TAKEN: THE BORDERS TO THE WEST HAVE BEEN OPENED TO ALL ORDINARY CITIZENS WHO WANT TO VISIT ABROAD; AND THE UGLY BARBED WIRE OF THE IRON CURTAIN IS BEING E TORN DOWN. X D WE IN THE UNITED STATES HAVE WELCOMED THESE FIRS I EFFORTS TOWARD THE LIFTING OF THE POLITICAL AND S ECONOMIC RESTRAINTS ON THE PEOPLE OF HUNGARY. WE HAVE REJOICED TO SEE THE WAVE OF DEMOCRACY, NOW SURGING AROUND THE WORLD, BEGIN TO SWEEP OVER THIS COUNTRY. TOO. - E IT IS MY AIM, AND THAT OF THE AMERICAN PEOPLE. TO X HELP THE PEOPLE OF HUNGARY WORK TOWARD THE TIME WHEN D YOU ARE FREE TO TAKE AN ACTIVE PART IN THE PEACEFUL I DEVELOPMENT OF YOUR COUNTRY. WHEN YOU CAN ACHIEVE A S FULL DEMOCRACY AND THE PROSPERITY THAT HISTORY HAS SHOWN ONLY A MARKET-ORIENTED ECONOMY CAN PRODUCE. AS I HAVE SAID BEFORE. WE WANT FREEDOM TO SUCCEED. AND I SAY NOW WE WANT IT TO SUCCEED HERE. E HUNGARY TODAY STANDS ON THE VERGE OF A NEW ERA. X OPPORTUNITIES ARE HERE FOR DEMOCRACY, AND FOR AN D EFFECTIVE ECONOMY THAT CAN PROVIDE A BETTER STANDARD I OF LIVING FOR ALL HUNGARIANS. THE PATH TO A RETURN S TO DEMOCRACY HAS BEEN TREAD BEFORE BY OTHER NATIONS. BUT IT IS NOT AN EASY PATH. IT TAKES POLITICAL AND MORAL COURAGE TO GO FORWARD, TO AVOID THE TRAP OF COVERING STAGNATION WITH POLITICAL RHETORIC, TO TAKE THE DIFFICULT STEPS THAT ARE NECESSARY TO TURN THIS CONF IDENTIAL WHITE HOUSE SITUATION ROOM PAGE 03 OF 14 COUNTRY AROUND. WE BELIEVE THIS NATION HAS THAT COURAGE. WE BELIEVE IN THE FUTURE OF HUNGARY. AND WE WILL SHOW OUR CONFIDENCE IN THIS COUNTRY THROUGH CONCRETE STEPS TO ENCOURAGE THE PROCESS OF REFORM. E WE WILL BACK THE PROCESS, ALREADY BEGUN, OF GETTING THE X GOVERNMENT BUREAUCRACY OUT OF THE BUSINESS OF RUNNING D THE HUNGARIAN ECONOMY, AND OF RETURNING HUNGARIAN I BUSINESS, INDUSTRY, AND AGRICULTURE TO PRIVATE S HANDS. WE WILL DO THIS THROUGH PROMOTION OF SENSIBLE INVESTMENT IN WELL-RUN ENTERPRISES. WE WILL HELP YOU TO TRAIN THE BUSINESS MANAGERS AND FINANCIAL EXPERTS THE COUNTRY NEEDS. WE WILL ENCOURAGE MORE TWO-WAY TRADE. MY ADMINISTRATION HAS MAPPED OUT A SERIES OF MEASURES TO MOVE FORWARD IN ALL OF THESE E AREAS. I AM HERE ON BEHALF OF THE PEOPLE OF AMERICA X TODAY TO OFFER YOU A HELPING HAND. D - I S ONE HUNDRED YEARS AGO, HUNGARY WAS IN THE MIDST OF ITS GOLDEN ERA. WITH UNPRECEDENTED PROSPERITY AND DEVELOPMENT. AT THAT TIME HUNGARY WAS A WELL-RESPECTED AND ACTIVE MEMBER OF THE EUROPEAN COMMUNITY OF NATIONS. BT =5597 E BT X € 0 D LU N SECTION 02 OF 06 BUDAPEST 05597 D EXDIS I DEPT P / . 5 WHITE HOUSE FOR STUDDERT AND KELLER S NSC FOR BLACKWILL EUR/EEY FOR SWIHART E : 0 . 12356: DECL: OADR TAGS: OVIP, HU SUBJECT: SUGGESTED TEXT OF PRESIDENT BUSH'S SPEECH CONFIDENTIAL IMMEDIATE CONFIDENTIAL WHITE HOUSE SITUATION ROOM PAGE 04 OF 14 EXPORTING ALL OVER EUROPE ITS INDUSTRIAL AND AGRICULTURAL PRODUCTS, ITS IDEAS, ITS ART AND CULTURE. IT WAS A COUNTRY KNOWN NOT ONLY FOR THE BEAUTY OF ITS CAPITAL, BUT ALSO FOR ITS RELIGIOUS TOLERANCE, AS A PLACE WHERE PEOPLE OF DIFFERENT COMMUNITIES LIVED AND WORKED TOGETHER IN PEACE. WESTERN VALUES OF DEMOCRACY AND FREE ENTERPRISE WERE RESPECTED, AND HELPED TO BUILD THE NEW HUNGARY. E - X UNFORTUNATELY, THE ERA OF PROSPERITY AND PEACEFUL D DEVELOPMENT WAS SHORT-LIVED. THE TWENTIETH CENTURY I HAS SEEN A SUCCESSION OF EXTRAORDINARILY DIFFICULT S TIMES FOR THIS NATION: THE DESTRUCTION AND LOSS OF TWO WORLD WARS. THE ECONOMIC DEPRESSION OF THE 1930S. THE PERSECUTION AND NEAR-ANNIHILATION OF TWO MAJOR COMMUNITIES-- THE JEWS AND THE GYPSIES, AND THE E IMPOSITION OF AN ALIEN AND REPRESSIVE GOVERNMENT, WITH TRAGIC CONSEQUENCES IN 1956. X D I AS WE NEAR THE END OF THIS CENTURY, HOWEVER, AND S PREPARE TO ENTER A NEW ONE. WE CAN SEE AT LAST THE BEGINNING OF A NEW ERA OF OPPORTUNITIES FOR PEACE, FOR PROSPERITY. AND FOR FREEDOM OF THE PEOPLE OF HUNGARY. WE IN THE UNITED STATES, WITH MORE THAN TWO HUNDRED E YEARS OF EXPERIENCE WITH A WORKING CONSTITUTION, X HAVE COME TO APPRECIATE THAT A DEMOCRATIC SYSTEM IS D FULL OF CONFLICTS AND OFTEN MESSY. THE RETURN TO I DEMOCRACY AFTER A PERIOD OF REPRESSION IS OFTEN S NOT STRAIGHTFORWARD OR EASY, BUT THE PROCESS OF STRIVING FOR A TRULY DEMOCRATIC SYSTEM MUST GO FORWARD. - WE HAVE BEEN IMPRESSED BY THE PUBLIC DEBATES IN THE PAHEIDENTLAI WHITE HOUSE SITUATION ROOM PAGE 05 OF 14 MEDIA HERE ON THESE SUBJECTS. WE APPRECIATE THE DRAMAT CALLY NCREASED SCOPE FOR PRESS FREEDOMS NOW ENJOYED IN HUNGARY RECENTLY DEMONSTRATED BY THE START OF THE COUNTRY'S FIRST NDEPENDENT DAILY NEWSPAPER THE DEGREE TO WHICH HUNGARY HAS OPENED UP TO THE WEST IN THIS REGARD IS SHOWN BY A VERY RECENT AND WELCOME DEVELOPMENT -- I AM PLEASED TO NOTE TODAY THAT THE HUNGARIAN GOVERNMENT HAS AGREED E TO ALLOW AN OFFICE OF RADIO FREE EUROPE TO OPEN HERE IN BUDAPEST AND THAT IT IS ALREADY FUNCTIONING. AM D ALSO ENCOURAGED THAT PERMISSION HAS BEEN GIVEN FOR I THE OPENING HERE OF A PRIVATE COMMERCIAL AMERICAN S RADIO STATION. WE ARE ALSO PLEASED THAT WHITE COLLAR INDEPENDENT UNIONS NOW FUNCTION HERE; WE HOPE THAT SOON SUBSTANTIAL INDEPENDENT BLUE COLLAR UNIONS WILL REPRESENT HUNGARIAN WORKERS. LIKE MOST HUNGARIANS, WE ARE ENTHUSIASTIC OVER THE PROSPECT OF THE COUNTRY'S FIRST FREE MULTIPARTY ELECTIONS SINCE 1945. AND BY E THE PROSPECT OF THE COUNTRY'S TRANSITION TO A GENUINE MULTIPARTY SYSTEM. HUNGARIAN-AMERICANS. PARTICULARLY D SHARE OUR GRATIFICATION THAT THE PROCESS OF NATIONAL S RECONCILIATION AND HEALING FOLLOWING 1956. WHICH SEEMED INCOMPLETE AND STALEMATED A FEW YEARS AGO. HAS TAKEN MAJOR STEPS FORWARD WITH THE PEACEFUL REBURIAL AND REHABILITATION OF 1MRE NAGY. IN THE FOREIGN POLICY AREA. WE ARE ALSO GRATIFIED BY E HUNGARY'S STEPS TOWARD FULL PARTICIPATION IN THE X INTERNATIONAL COMMUNITY AS A SOVEREIGN STATE: ITS D ESTABLISHMENT OF RELATIONS WITH SOUTH KOREA, ACCESSION I TO THE UNITED NATIONS REFUGEE CONVENTION, AND ITS S PARTICIPATION IN UN PEACEKEEPING ACTIVITIES. WE HOPE YOU WILL HAVE FULL DIPLOMATIC RELATIONS WITH ISRAEL BEFORE LONG. IN ITS TROUBLED RELATIONSHIP WITH ROMANIA, HUNGARY HAS OUR SYMPATHY AND SUPPORT BECAUSE WE SHARE HUNGARY'S HUMAN RIGHTS CONCERNS CONFIDENTIAL LUNT IDENTIAL WHITE HOUSE SITUATION ROOM PAGE 06 OF 14 AND SUPPORT THE INTEGRITY OF THE HELSINKI PROCESS WHICH THE ROMANIAN GOVERNMENT HAS SOUGHT TO UNDERMINE. THESE CHANGES ARE IMPORTANT. WE RECOGNIZE THEY ARE INCOMPLETE, AND REPRESENT A BRIEF PERIOD IN A LONG PROCESS. WE SUPPORT THE PROCESS AND IN DOING SO, WE BELIEVE THE MAIN ISSUE IS NOT WHETHER THE E PROCESS IS GOING TOO SLOW OR TOO FAST, BUT THAT X IT CONTINUE. WE DO NOT WANT INSTABILITY. AT THE D BT I #5597 S BT e 0 N D E N A SECTION 03 OF 06 BUDAPEST 05597 EXDIS DEPT PASS TO WHITE HOUSE FOR STUDDERT AND KELLER NSC FOR BLACKWILL EUR/EEY FOR SWIHART E E.O. 12326: DECL: OADR X D TAGS: OVIP, HU I SUBJECT: SUGGESTED TEXT OF PRESIDENT BUSH'S SPEECH S SAME TIME. STABILITY WITHOUT CHANGE IS NOT POSSIBLE. - A MAJOR AND VERY DRAMATIC PART OF THE LIBERALIZATION OF THE HUNGARIAN POLITICAL SYSTEM AND THE RETURN OF RIGHTS TO THE PEOPLE HERE HAS BEEN THE DECISION LAST YEAR OF THE GOVERNMENT OF HUNGARY TO LIBERALIZE THE E RESTRICTIONS ON THE TRAVEL OF ITS CITIZENS. WE X WELCOME THE DRAFT LEGISLATION THE GOVERNMENT HAS D PREPARED THAT WILL RECOGNIZE THE FUNDAMENTAL RIGHTS I OF HUNGARIANS TO EMIGRATE LEGALLY IF THEY SO WISH. S ON THE BASIS OF THIS CHANGE IN HUNGARIAN LAW, MY ADMINISTRATION WILL SUPPORT THE EXTENSION OF MULTI- YEAR MOST-FAVORED-NATION STATUS TO HUNGARY. MEANWHILE, WE ARE DOING ALL WE CAN TO PROMOTE THE CONF DENTIAL IMMEDIATE CONFIDENTIAL WHITE HOUSE SITUATION ROOM PAGE 07 OF 14 VISITS OF AMERICANS HERE AND OF HUNGARIANS TO OUR COUNTRY, IN THE BELIEF THAT SUCH PRIVATE CONTACTS STRENGTHEN THE CAUSE OF PEACE BY BUILDING PRACTICAL COOPERATION IN A THOUSAND DIFFERENT FIELDS AND MUTUAL INTEREST. I UNDERSTAND THAT LAST YEAR OVER ONE HUNDRED THOUSAND AMERICANS CAME HERE, AND THAT OVER TWENTY THOUSAND HUNGARIANS WENT TO AMERICA. WE ARE DELIGHTED TO SEE THE PEOPLE OF HUNGARY EXERCISING E THEIR RIGHT TO TRAVEL AND TO HAVE FREE CONTACT WITH X PEOPLE FROM OTHER COUNTRIES. IN ORDER TO MAKE SUCH D CONTACTS EASIER ON BOTH SIDES, I AM PLEASED TO I ANNOUNCE TWO NEW AGREEMENTS WITH YOUR GOVERNMENT-- S ON TOURISM AND CIVILIAN AIR TRAFFIC. ON ALL FRONTS WE ARE ENCOURAGING THIS KIND OF DIRECT CONTACT. HUNGARY HAS BEEN ONE OF THE LEADING WARSAW PACT NATIONS IN SUPPORTING CONTACTS BETWEEN OUR E RESPECTIVE MILITARY PEOPLE. THROUGH THESE CONTACTS, X AMERICAN AND HUNGARIAN MILITARY PERSONNEL ARE D STEADILY IMPROVING THEIR KNOWLEDGE OF EACH OTHER'S I FORCES AND THEREBY GAINING CONFIDENCE THAT NEITHER S NATION'S FORCES POSE UNKNOWN THREATS TO THE OTHER. - AMERICAN MILITARY PERSONNEL HAVE IN THE LAST YEAR OBSERVED MILITARY EXERCISES HERE. AND NOTED THE FULL COOPERATION AND OPENNESS OF THE HUNGARIAN COMMANDERS. E OTHER CONTACTS ARE TAKING PLACE AT VARIOUS LEVELS. X AND I AM VERY PLEASED AT THIS TIME TO ANNOUNCE THAT D COLONEL GENERAL PACSEK, COMMANDER OF THE HUNGARIAN I ARMY, HAS ACCEPTED OUR INVITATION TO VISIT THE UNITED S STATES IN OCTOBER AND MEET WITH THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF. THIS WILL BE THE FIRST TIME THAT SUCH A HIGH RANKING MILITARY OFFICER FROM HUNGARY WILL MAKE SUCH A VISIT. CUNT IDENTITIVE WHITE HOUSE SITUATION ROOM PAGE 98 OF 14 I WOULD LIKE TO TURN NOW TO ONE OF THE MOST ACTIVE AREAS OF THE RELATIONSHIP BETWEEN OUR TWO COUNTRIES AND ONE I BELIEVE IS PARTICULARLY IMPORTANT. WHEN I WAS LAST HERE IN 1983 THERE WERE TWENTY-FOUR FULBRIGHT SCHOLARS; NOW THERE ARE OVER FIFTY. THE NUMBER OF STUDENTS TRAVELLING FROM HUNGARY TO THE UNITED STATES HAS INCREASED TENFOLD. IN 1983 THERE WERE FEWER THAN THREE HUNDRED EXCHANGE VISITORS: E NOW THERE ARE ALMOST NINE HUNDRED. TWENTY AMERICAN X COLLEGES NOW HAVE EXCHANGE PROGRAMS OF THEIR OWN, D IN ADDITION TO THOSE WE SPONSOR. I KNOW SOME I AMERICAN STUDENTS STUDYING HERE IN HUNGARY ARE WITH S US TODAY. ALSO EXCITING FOR US IS THE DEVELOPMENT OF MANY PRIVATELY-SPONSORED PROGRAMS FOR YOUNG HIGH SCHOOL STUDENTS, WHO OFTEN SPEND A SEMESTER OR A YEAR IN EACH OTHER'S HOMES. LEARNING ABOUT EACH OTHER'S COUNTRIES IN A FAMILY SETTING. WE ENTHUSIASTICALLY APPLAUD THE MANY PRIVATE FOUNDATIONS AND INDIVIDUALS E WHO MAKE THESE PROGRAMS POSSIBLE. X D I TODAY I AM VERY PLEASED TO ANNOUNCE THAT THE UNITED S STATES INFORMATION AGENCY IS GOING TO GRANT THREE HUNDRED THOUSAND DOLLARS TO SUPPORT SIX NEW YOUTH EXCHANGES WITH HUNGARY. SOME HERE IN THIS AUDIENCE WILL BE GOING TO THE UNITED STATES. THE STUDY OF THE ENGLISH LANGUAGE IN HUNGARY HAS BECOME WILDLY POPULAR. AND WE HAVE BEEN ASKED BY THE E HUNGARIAN GOVERNMENT TO SUPPORT IT. X THEREFORE IT IS WITH PARTICULAR PLEASURE THAT D BT I =5597 S BT e 0 N D N A SECTION 04 OF 06 BUDAPEST 05597 EXDIS DEPT PASS TO WHITE HOUSE FOR STUDDERT AND KELLER NSC FOR BLACKWILL CONF DENTIAL WHITE HOUSE SITUATION ROOM PAGE 09 OF 14 EUR/EEY FOR SWIHART E.O. 12356: DECL: OADR TAGS: OVIP, HU SUBJECT: SUGGESTED TEXT OF PRESIDENT BUSH'S SPEECH ANNOUNCE THAT WE ARE SENDING 20 PEACE CORPS VOLUNTEERS TO HUNGARY TO TEACH ENGLISH--ONE FOR EACH OF YOUR 19 COUNTIES AND FOR BUDAPEST. THIS IS THE FIRST PEACE CORPS PROGRAM IN AN EAST CENTRAL EUROPEAN COUNTRY. E THE U.S. INFORMATION AGENCY IS PROVIDING TEACHERS X AND TRAINING AS WELL. D - I THE ENGLISH LANGUAGE HAS BECOME MORE THAN THE S VEHICLE FOR THE CULTURES OF THE COUNTRIES TO WHICH IT IS NATIVE- IT IS NOW THE ACCEPTED LANGUAGE OF INTERNATIONAL TRADE. GOOD HUNGARIAN MANAGERS AND BUSINESS PEOPLE MUST BE ABLE TO COMMUNICATE ABROAD E IN ORDER TO DEVELOP YOUR TRADE, AND SO I HOPE THESE X TEACHERS WILL BE PROMOTING THE DEVELOPMENT OF D HUNGARIAN BUSINESS AS THEY TEACH THE BEAUTIES OF I SHAKESPEARE AND HEMINGWAY. - S THE HUNGARIAN GOVERNMENT AND THE HUNGARIAN PEOPLE SEE THE NEED FOR BOTH ECONOMIC AND POLITICAL REFORM TO ENABLE HUNGARY ONCE AGAIN TO JOIN THE DEVELOPED. DEMOCRATIC COMMUNITY OF NATIONS. HUNGARY IS AT THE FOREFRONT OF ECONOMIC REFORM IN THIS REGION. STEPS E HAVE BEEN TAKEN TO ENCOURAGE PRIVATIZATION, FOREIGN X INVESTMENT, LIBERALIZE IMPORTS, AND GRADUALLY REALIGN D PRICES TO WORLD LEVELS. BUT IT HAS BEEN A SLOW I PROCESS AND MUCH REMAINS TO BE DONE. S - THE UNITED STATES IS WILLING TO BE A PARTNER IN THE REFORM PROCESS, IN A TRUE EFFORT TO ESTABLISH HUNGARY AS AN EFFECTIVE ECONOMY, INTEGRATED INTO THE WORLD ECONOMY AND TRADING SYSTEM. WE WANT TO HELP YOU CONF IDENTIAL CUNTIDENTIAL WHITE HOUSE SITUATION ROOM PAGE 10 OF 14 CREATE THE INFRASTRUCTURE NECESSARY FOR THAT, AND TO HELP YOU ADDRESS YOUR DEBT PROBLEMS. IN RETURN, WE REQUIRE ONLY THAT THE REFORM PROCESS BY GENUINE, AND NOT A MATTER OF RHETORIC UNSUBSTANTIATED BY REAL ACTION. TODAY I AM ANNOUNCING A NUMBER OF CONCRETE STEPS WE HAVE MAPPED OUT IN THIS AREA. THESE STEPS WILL OPEN E UP TRADE BETWEEN OUR TWO COUNTRIES, WILL FOSTER X SENSIBLE INVESTMENT, AND WILL HELP TRAIN A NEW D ECONOMIC LEADERSHIP. I - - FIRST, WE WILL, AS I HAVE SAID, PROPOSE TO THE S CONGRESS THIS FALL THAT HUNGARY BE GRANTED MULTI-YEAR MOST-FAVORED-NATION STATUS FOLLOWING ITS ADOPTION OF LEGISLATION ALLOWING FOR THE FREE EMIGRATION IF ITS CITIZENS. - - SECOND, WE ARE INCLUDING HUNGARY IN THE GENERAL E SYSTEM OF PREFERENCES, WHICH PROVIDES TARIFF X PREFERENCES TO DEVELOPING ECONOMIES. - D I - - THIRD, MY ADMINISTRATION IS EXTENDING THE TRADE S AND DEVELOPMENT PROGRAM TO HUNGARY. THE FIRST TDP PROJECT HERE WILL BE HELPING TO FUND PLANNING FOR THE REDEVELOPMENT OF BORSOD COUNTY. SIMILAR PROGRAMS HAVE HELPED MOVE DEPRESSED REGIONS INTO NEW AREAS OF ECONOMIC ACTIVITY AND AWAY FROM LOSS- MAKING ENTERPRISES. E -- FOURTH, MY ADMINISTRATION IS ALSO SUPPORTING THE X EXTENSION OF THE PROGRAMS OF THE OVERSEAS PRIVAT D INVESTMENT CORPORATION TO HUNGARY TO ENCOURAGE I AMERICAN INVESTMENT IN SENSIBLE. WELL-MANAGED. S FINANCIALLY SOUND ENTERPRIESES. - -- TO HELP FOSTER TRADE IN BOTH DIRECTIONS, MY ADMINISTRATION HAS AGREED TO ALLOW THE GOVERNMENT OF HUNGARY TO OPEN A TRADE OFFICE ON THE WEST COAST. CONF IDENTIAL CUNT WHITE HOUSE SITUATION ROOM PAGE 11 OF 14 - - I AM ALSO PLEASED TO ANNOUNCE THE ESTABLISHMENT BY THE AMERICAN INVESTMENT COMPANY BEARS-STEARN OF A SPECIAL INVESTMENT FUND TO BE CALLED THE "HUNGARY FUND. " THIS PRIVATE INITIATIVE WILL BUY STOCK IN HUNGARIAN COMPANIES AND HELP DEVELOP THE BUDDING STOCK MARKET AND FREE ENTERPRISE SYSTEM IN THIS COUNTRY. E - X THE GREAT STRENGTH OF AMERICA IS OUR PRIVATE COMPANIES. D I AM THEREFORE PLEASED TO BE ABLE TO ANNOUNCE THAT I BT S #5597 BT e 0 N D E N SECTION 05 OF 06 BUDAPEST 05597 EXDIS DEPT PASS TO WHITE HOUSE FOR STUDDERT AND KELLER NSC FOR BLACKWILL E EUR/EEY FOR SWIHART X E.O. 12356: DECL: OADR D I TAGS: OVIP, HU S SUBJECT: SUGGESTED TEXT OF PRESIDENT BUSH'S SPEECH NINE MAJOR AMERICAN COMPANIES ARE CONCLUDING NEW DEALS IN HUNGARY. A NEW BOUNTY OF GOODS WILL COME FROM THESE DEALS FOR THE HUNGARIAN PEOPLE- GENERAL MOTORS CARS. ESTEE LAUDER PERFUMES. SCHWINN BICYCLES. LEVI STRAUSS JEANS. DOW E STYROFOAM, GUARDIAN GLASS. REMINGTON SHAVERS, JOHNSON X AND JOHNSON'S HEALTH PRODUCTS. A NEW MARRIOTT HOTEL. D THIS WILL INCREASE AMERICAN EXPORTS TO HUNGARY AND I HUNGARIAN EXPORTS TO EUROPE. S THIS IS A MAJOR ADVANCE IN OUR BUSINESS PRESENCE IN YOUR COUNTRY. IT WILL MEAN A TENFOLD INCREASE IN THE NUMBER OF AMERICAN BUSINESSMEN HERE. I ALSO WISH TO NOTE THE SALE TO HUNGARY THIS WEEK OF 50 MILLION DOLLARS OF AGRICULTURAL EQUIPMENT CONFIDENTIAL OUNI TULNTTAL WHITE HOUSE SITUATION ROOM PAGE 12 OF 14 MANUFACTURED IN THE UNITED STATES. NOW WOULD LIKE TO TALK ABOUT A PROJECT THAT I BELIEVE IS ESSENTIAL TO THE KIND OF PROGRESS WE WANT TO PROMOTE HERE IN HUNGARY. A COUPLE OF YEARS AGO, THE UNITED STATES HELPED TO ESTABLISH THE INTER- NATIONAL MANAGEMENT INSTITUTE, TO HELP TRAIN HUNGARIAN MANAGERS IN WESTERN BUSINESS METHODS. TODAY I WOULD E LIKE TO ANNOUNCE WITH YOUR GOVERNMENT THAT WE ARE X OPENING A NEW CENTER TO PROMOTE THE FORMATION OF D SMALL PRIVATE BUSINESSES IN HUNGARY. WE BELIEVE THAT I IT IS IN THIS SECTOR THAT THE TRUE GENIUS AND S CREATIVITY OF THE HUNGARIAN PEOPLE STANDS OUT. CALLED THE HUNGARIAN ENTERPRISE GROUP, THE CENTER WILL HELP TO MATCH UP VENTURE CAPITAL, BOTH FOREIGN AND HUNGARIAN, WITH SMALL BUSINESS PEOPLE WITH GOOD, INNOVATIVE IDEAS FOR NEW PRODUCTS AND SERVICES. - E X FINALLY, I AM PARTICULARLY PLEASED TO ANNOUNCE TODAY D THAT WE WILL BE OPENING. WITHIN THE NEXT TWO YEARS, I AN AMERICA HOUSE IN THE CENTER OF BUDAPEST. THIS S NEW CENTER WILL HELP HUNGARIANS TO BECOME MORE FAMILIAR WITH AMERICAN CULTURE AND WILL ALSO PROMOTE OUR TRADE RELATIONS. THE FACILITY WILL INCLUDE A WELL EQUIPPED LIBRARY. A CULTURAL CENTER AND SPACE FOR COMMERCIAL EXHIBITIONS. THE CELEBRATED AMERICAN ARCHITECT. ROBERT STERN. E PLANS FOR THIS CENTER. WHICH WE INTEND X TO BE A NOTABLE ADDITION TO YOUR CITY OF GREAT D I BUILDINGS ARE BEING RELEASED TODAY. S I DON'T WANT TO TRY TO FOOL YOU. YOU KNOW AS WELL AS I DO THAT ALL THESE EFFORTS ALONE ARE NOT GOING TO SOLVE THE VERY SERIOUS DIFFICULTIES LYING AHEAD OF THIS COUNTRY AS YOU SEEK TO MAKE UP FOR MANY CONFIDENTIAL CONF IDENTIAL WHITE HOUSE SITUATION ROOM PAGE 13 OF 14 YEARS OF POLITICAL REPRESSION AND POOR ECONOMIC POLICIES WHICH WERE BASED ON IDEOLOGY RATHER THAN REALITY. YOU KNOW THAT TURNING THIS COUNTRY AROUND WILL TAKE HARD EFFORT, AS WELL AS SUPPORT FROM YOUR FRIENDS. BUT WE, YOUR FRIENDS IN THE UNITED STATES, BELIEVE THAT THE HUNGARIAN PEOPLE, RELEASED FROM THE E RESTRAINTS ON YOUR INITIATIVE AND RESOURCEFULNESS, X ARE EQUAL TO THIS CHALLENGE. FOR TOO MANY YEARS D WE IN THE WEST HAVE HAD TO STAND BY AND WATCH THE I SUFFERING OF THE PEOPLES OF EASTERN EUROPE UNDER S REPRESSIVE GOVERNMENTS, EFFECTIVE IN LITTLE BEYOND HOLDING DOWN DISSENT AND KEEPING THEMSELVES IN POWER. THOSE DAYS ARE OVER, AND IT IS TIME TO GO FORWARD. WHEN VISITED THIS COUNTRY IN 1983, "I SAW A VASTLY E DIFFERENT HUNGARY FROM THE ONE I SEE TODAY. TODAY X I SEE A COUNTRY IN WHICH THE RIGHTS OF MAN ARE D BEGINNING TO BE RESPECTED, AS THEY HAVE NOT BEEN I FOR MANY YEARS. I SEE A COUNTRY IN FERMENT. WHERE S THERE IS FREE AND OPEN DEBATE ABOUT THE PAST AND THE FUTURE. I SEE A COUNTRY WHICH HAS GONE FURTHER ALONG THE ROAD TO REFORM THAN ANY OTHER IN THIS REGION. I SEE A COUNTRY RICH IN HUMAN RESOURCES. AND RICH IN THE MORAL POWER AND DEEP COURAGE OF ITS PEOPLE. I SEE A NATION THAT IS EMERGING FROM THE PAST, AND E BUILDING ITS FUTURE. I CONGRATULATE YOU ON LIVING X BT D =5597 I BT S e 0 N D E N A SECTION 06 OF 06 BUDAPEST 05597 EXDIS DEPT PASS TO WHITE HOUSE FOR STUDDERT AND KELLER NSC FOR BLACKWILL EUR/EEY FOR SWIHART CONFIDENTIAL CONT TUCNI TAL WHITE HOUSE SITUATION ROOM PAGE 14 OF 14 E.O. 12356: DECL: OADR TAGS: OVIP, HU SUBJECT: SUGGESTED TEXT OF PRESIDENT BUSH'S SPEECH AT SUCH A TIME, AND I AND THE PEOPLE OF AMERICA WISH YOU WELL. END QUOTE. PALMER BT # 5597 E X D I S E X D I S E X D I S CONF IDENTIAL CONF muxed group Brezrench speech MARK PRESIDENT'S SPEECH AT KARL MARX UNIVERSITY July 12, 1989 LADIES AND GENTLEMEN, DOCTOR CSAKI (CHAH-kee) : wont Her to THANK YOU FOR YOUR WARM WELCOME. THIS IS THE FIRST TRIP TO Puer HUNGARY BY A U.S. PRESIDENT AND IT REFLECTS THE STRONG BONDS BETWEEN THE AMERICAN AND HUNGARIAN PEOPLES. THE TIES OF modern Europers andustry CULTURE AND KINSHIP ENDURE; THEY PROVIDE A STRONG BASE FOR verates student rd 10 RELATIONS BETWEEN OUR COUNTRIES IN GOOD TIMES AND BAD. the THESE ARE GOOD TIMES. HUNGARIAN ACTIONS AS WELL AS Dav 5 AMERICAN AFFECTIONS HAVE BROUGHT ME HERE. HUNGARY, WITH supplare POLAND, IS AT THE HEAD OF A GREAT HISTORIC MOVEMENT FELT FROM BUDAPEST TO BEIJING. HUNGARY AND POLAND ARE TAKING A HAND IN SHAPING THEIR OWN DESTINIES AND, I BELIEVE, THE DESTINIES OF were OTHERS. HUNGARY IS TODAY A DIFFERENT COUNTRY FROM THE ONE I VISITED IN 1983: THE NATION RESOUNDS WITH FERMENT AND CREATIVITY; OPEN, HONEST DEBATE FILLS THE PUBLIC PRESS; THE SOVIET UNION -- IN WHAT WE HOPE IS JUST A FIRST STEP -- HAS BEGUN TO WITHDRAW SOME OF ITS TROOPS; THE FIRST STEPS TOWARD AN EFFICIENT MARKET-ORIENTED ECONOMY HAVE BEEN TAKEN; THE BORDERS TO THE WEST ARE NOW OPEN; AND THE BARBED WIRE -- TERRIBLE REMNANT OF EVIL TIMES -- IS BEING TORN DOWN. LET IT ALL COME DOWN; LET IT RUST INTO NOTHINGNESS; AND LET IT NEVER RETURN. Schever Seycle Une Radio Free Europe opening Can Swat commine andress radio statem- of Cm Hung Po.) CONFIDENTIAL DECL: OADR 3 this gat diff (Saundries Hungarian Democratic form DETERMINED TO BE AN last certal Eirope ADMINISTRATIVE MARKING, stages encourage PER E.O. 12958, SEC. 3.3 (C) fronk ach D, madern sem can RML 10/1/04 but they do, Co. we Jign of Constitute process wom central europe - CONF IDENTIAL -2- HUNGARY IS BUILDING ITS OWN HOUSE WITH ONE EYE ON AUSPICIOUS CIRCUMSTANCES AND ONE EYE ON THE BEST IN HUNGARY'S PAST. Hungary's Hope and Fate IN POLAND, I SPOKE OF THE HOPES OF 1945. I REMEMBER THOSE TIMES. I AM ONE OF THE SURVIVORS OF THAT TERRIBLE CONFLAGRATION WHO VOWED TO BUILD A BETTER WORLD. AT THE END OF THE WAR AND EVEN BEFORE IT, DEMOCRATIC HUNGARIANS CONTEMPLATED WHAT A FREE, CENTRAL EUROPE COULD LOOK LIKE. THEY SAW IT AS SOMETHING OTHER THAN A BLOC OR EMPIRE, OR PART OF AN EMPIRE: CENTRAL EUROPE COULD BE A COMMUNITY OF INDEPENDENT NATIONS, TOLERANT, DEMOCRATIC; FREE OF THE POISON OF HEGEMONIC AMBITION; AT PEACE WITH ITSELF AND WITH ITS GREAT NEIGHBORS; A CREATIVE PART OF A EUROPE ITSELF FREE AND WHOLE. THIS HOPEFUL IDEA WAS TAKEN AWAY FROM YOU IN BLOOD AND PAIN, FIRST THROUGH THE IMPOSITION OF STALINISM AND THROUGH ITS REIMPOSITION IN 1956. YET, THIS VISION OF CENTRAL EUROPE DID NOT DIE; IT REMAINED VALID; IT IS VALID, AND IT IS NOW BEFORE US AGAIN. A New Beginning HUNGARY HAS JUST HELD A LONG-DEFERRED FUNERAL AND A MEMORIAL. YOU HAVE LAID TO REST STATESMEN AND ENDED A SORROWFUL CHAPTER OF HISTORY. THE REBURIAL OF IMRE NAGY (EEM-ray NAZH) AND HIS ASSOCIATES WAS AN ACT OF RECONCILIATION CONF IDENTIAL CONFIDENTIAL -3- AND AN ACT OF TRUTH. IT OPENS THE WAY TO MOVE AHEAD ON A FOUNDATION OF TRUTH -- FOR THE TRUTH WILL SET YOU FREE. HUNGARIANS ARE BUILDING THE FOUNDATIONS FOR PEACE, PROSPERITY, AND FREEDOM, FOR THEMSELVES BUT ULTIMATELY FOR OTHERS AS WELL. YOU ARE WRITING A NEW CONSTITUTION -- A REAL CONSTITUTION. THE PROSPECTS FOR DEMOCRATIC, MULTIPARTY ELECTIONS ARE GREATER THAN AT ANY TIME SINCE 1945. AMERICANS ARE IMPRESSED BY THE START OF "DATUM," HUNGARY'S FIRST INDEPENDENT DAILY NEWSPAPER IN DECADES. WE ARE INTRIGUED BY YOUR GOVERNMENT'S PERMISSION FOR ABC TELEVISION TO SET UP AN INDEPENDENT STATION. SOME INDEPENDENT WHITE COLLAR UNIONS ARE NOW FUNCTIONING HERE AND WE HOPE TO SEE REAL INDEPENDENT BLUE COLLAR UNIONS AS WELL. SO HUNGARY IS ON ITS WAY. MY NATION RECENTLY CELEBRATED 200 YEARS OF UNBROKEN CONSTITUTIONAL RULE. WE HAVE LEARNED MUCH FROM THE EXPERIENCE. DEMOCRACY, ULTIMATELY, AFFIRMS THE HOPEFUL POTENTIAL IN HUMAN NATURE, NOT THE DISPAIR DRAWN FROM HUMAN IMPERFECTION. AMONG THE VIRTUES NECESSARY TO DEMOCRACY ARE TOLERANCE, WISDOM AND PATIENCE. REVENGE OR HATRED OR A DESIRE TO ACCEPT NO SOLUTION BUT THE MAXIMUM SOLUTION, CAN BE FATAL. I SAY THIS BECAUSE I RECOGNIZE, AS YOU RECOGNIZE, THAT THE DEMOCRATIC TRANSFORMATIONS JUST BEGINNING IN HUNGARY AND POLAND, AND PERHAPS SOON IN OTHER NATIONS OF EAST AND CENTRAL EUROPE, WILL BE LONG AND DIFFICULT. CONFIDENTIAL CONFIDENTIAL -4- SOME WILL CRITICIZE THE PACE OF CHANGE AS TOO SLOW; OTHERS WILL SAY IT IS ALL HAPPENING TOO FAST. EVERYONE WILL AT VARIOUS TIMES FIND THE PROCESS FRUSTRATING AND OCCASIONALLY UNNERVING. REAL CHANGE IS NOT EASY; OFTEN IT IS MESSY; IT CERTAINLY WILL NOT UNFOLD ACCORDING TO A BLUEPRINT. THE IMPORTANT THING IS THAT IT CONTINE TO MOVE FORWARD, WITHIN A POLITICAL FRAMEWORK WHICH KEEPS IT BETWEEN THE POLES OF CHAOS AND STAGNATION. The Economic Challenge THE CHALLENGE OF DEMOCRATIC POLITICAL REFORM IN HUNGARY, INTRINSICALLY DIFFICULT IN ITSELF, WILL BE COMPLICATED BY THE ECONOMIC CIRCUMSTANCES YOU HAVE INHERITED. SOME MIGHT FIND IT IRONIC THAT AN AMERICAN PRESIDENT IS STANDING AT KARL MARX UNIVERSITY. BUT I BELIEVE IT FITTING, AS WE CONTEMPLATE A BETTER FUTURE, TO BE REMINDED OF ONE SOURCE OF THE UNSATISFACTORY PRESENT. WHATEVER THE COURSE OF THE THEORETICAL DEBATE ABOUT MARX, WHO AFTER ALL WAS A THINKER OF THE 19TH NOT THE 20TH CENTURY, THE PRACTICAL RESULT IS ABSOLUTELY CLEAR. IN EVERY CORNER OF THE WORLD, PEOPLE ARE APPRECIATING THAT ECONOMIC GROWTH AND PROSPERITY COME FROM UNLEASHING THE ENTREPRENEURIAL SPIRIT IN OUR CITIZENS, NOT FROM THE DECISIONS OF GOVERNMENT PLANNERS DETACHED FROM THE REALITIES OF THE MARKET. CONFIDENTIAL CONFIDENTIAL -5- THE PEOPLE OF HUNGARY FACE THE TASK OF REBUILDING THE PRODUCTIVE INSTITUTIONS AND MECHANISMS OF MODERNITY. AND WHILE YOU DO so, YOU ARE FORCED TO LIVE WITH THE CONSEQUENCES OF THE OLD ECONOMY FORCED UPON YOU. AND IT IS NOT SIMPLY THE REMNANTS OF THE STALINIST SYSTEM YOU MUST LIVE WITH, BUT WITH ITS PHYSICAL AND STRUCTURAL LEGACY AS WELL: THE HUGE, INEFFICIENT INDUSTRIAL PLANTS; THE BEWILDERING PRICE SYSTEM NO ONE UNDERSTANDS; THE MASSIVE SUBSIDIES THAT CLOUD ECONOMIC DECISIONMAKING AND PRODUCE MASSIVE WASTE; THE ABSENCE OF MODERN FINANCIAL AND CAPITAL MARKETS; AND MORE. LET US BE FRANK WITH EACH OTHER: YOUR ECONOMY MAY EVEN GET WORSE BEFORE IT GETS BETTER. THIS CAN BE MITIGATED ONLY TO A DEGREE. IT CANNOT WHOLLY BE AVOIDED. THE SITUATION IN HUNGARY, AS IN POLAND, WILL REQUIRE SACRIFICE. ONLY HUNGARIANS CAN MAKE THE HARD DECISIONS. HUNGARY'S JOB IS IMMENSE AND I APPRECIATE THAT YOU HAVE ALREADY MADE A START. HUNGARIANS HAVE BEGUN TO GET GOVERNMENT OUT OF THE BUSINESS OF RUNNING THE ECONOMY, AND OF RETURNING BUSINESS, INDUSTRY, FINANCE AND AGRICULTURE TO THE INDEPENDENT ENGINEERS, ENTREPRENEURS AND FARMERS WHO CAN DO THE JOB. U.S. Support WHILE HUNGARY TAKES THE RESPONSBILITY FOR ITS FUTURE, THE UNITED STATES WILL STAND BY ITS SIDE. WE CANNOT DO THE JOB FOR YOU, BUT WE WILL DO WHAT WE CAN TO HELP HUNGARY HELP ITSELF. IN RETURN, WE ASK THAT YOUR REFORM PROCESS BE GENUINE, NOT JUST RHETORIC UNSUBSTANTIATED BY ACTION. CONF IDENTIAL -6- IF WE DO OUR PARTS, THE UNITED STATES WILL BE A PARTNER IN THE EFFORT TO TRANSFORM HUNGARY INTO A SUCCESSFUL, COMPETITIVE ECONOMY, INTEGRATED INTO THE WORLD ECONOMY. A COUPLE OF YEARS AGO, THE UNITED STATES HELPED ESTABLISH IN BUDAPEST THE INTERNATIONAL MANAGEMENT CENTER TO TRAIN HUNGARIAN MANAGERS IN WESTERN BUSINESS METHODS. TODAY I AM ANNOUNCING A NUMBER OF OTHER CONCRETE STEPS TO HELP. OUR GUIDING PRINCIPLE WILL BE CAREFULLY-CONSIDERED SUPPORT FOR THE EMERGING NEW HUNGARIAN ECONOMY. WE CANNOT, NOR SHOULD WE, PROTECT THE OLD, INEFFECTIVE WAYS. THESE STEPS WILL OPEN UP TRADE BETWEEN OUR TWO COUNTRIES, FOSTER SENSIBLE INVESTMENT, AND HELP TRAIN A NEW GENERATION OF BUSINESS LEADERS. -- FOLLOWING HUNGARY'S IMPLEMENTATION OF LEGISLATION ALLOWING FOR THE FREE EMIGRATION OF ITS CITIZENS, I WILL INFORM CONGRESS THAT HUNGARY IS NOW IN FULL COMPLIANCE WITH THE 1974 TRADE ACT, AND THEREFORE ENTITLED TO THE MAXIMUM MOST-FAVORED-NATION TARIFF STATUS POSSIBLE UNDER U.S. LAW. -- WE ARE PREPARED TO INCLUDE HUNGARY IN THE GENERALIZED SYSTEM OF PREFERENCES, WHICH PROVIDES DUTY FREE ENTRY FOR CERTAIN GOODS. CONFIDENTIAL CONFIDENTIAL -7- -- [THE U.S. IS EXTENDING A TRADE AND DEVELOPMENT PROGRAM TO HUNGARY, HELPING TO FUND A MODEL REDEVELOPMENT PLAN FOR A HUNGARIAN COUNTY. SIMILAR PROGRAMS IN OTHER COUNTRIES HAVE HELPED MOVE DEPRESSED REGIONS INTO NEW AREAS OF ENTREPREURIAL ECONOMIC ACTIVITY AND AWAY FROM LOSS-MAKING ENTERPRISES.] -- I HAVE ASKED CONGRESS TO AUTHORIZE THE OVERSEAS PRIVATE INVESTMENT CORPORATION TO OPERATE IN HUNGARY. OPIC WILL ENCOURAGE AMERICAN INVESTMENT IN SENSIBLE, WELL-MANAGED, FINANCIALLY-SOUND ENTERPRISES IN HUNGARY. --I AM PLEASED TO LEARN OF THE ESTABLISHMENT BY THE AMERICAN INVESTMENT COMPANY, BEARS-STEARN, OF A SPECIAL INVESTMENT FUND TO BE CALLED THE "HUNGARY FUND." THIS PRIVATE INITIATIVE WILL PURCHASE SHARES IN HUNGARIAN COMPANIES AND HELP DEVELOP THE NEW STOCK MARKET AND FREE ENTERPRISE SYSTEM IN HUNGARY. -- NINE MAJOR AMERICAN COMPANIES ARE NEGOTIATING INVESTMENTS IN HUNGARY. THIS SHOULD INCREASE AMERICAN EXPORTS TO HUNGARY AND HUNGARIAN EXPORTS TO EUROPE. OUR COMMERCIAL RELATIONS ARE ALREADY GROWING -- JUST THIS WEEK $25 MILLION OF U.S.-MANUFACTURED AGRICULTURAL EQUIPMENT WAS SOLD TO HUNGARY -- AND U.S. BUSINESS PRESENCE IN HUNGARY SHOULD GROW EVEN FURTHER. CONFIDENTIAL CONF IDENTIAL -8- --I HAVE SPOKEN ABOUT THE NEED TO FOSTER THE NEW, EMERGING HUNGARIAN ECONOMY. I AM PARTICULARLY PLEASED TO ANNOUNCE A U.S. -HUNGARIAN AGREEMENT TO OPEN A NEW CENTER TO PROMOTE THE FORMATION AND DEVELOPMENT OF SMALL, PRIVATE BUSINESS IN HUNGARY. CALLED THE HUNGARIAN ENTERPRISE GROUP, THIS CENTER WILL HELP MATCH VENTURE CAPITAL, BOTH FOREIGN AND HUNGARIAN, WITH SMALL BUSINESS PEOPLE WHO HAVE INNOVATIVE IDEAS FOR NEW PRODUCTS AND SERVICES. -- ECONOMIC DEVELOPMENT MUST BE ENVIRONMENTALLY SOUND. IN MAINZ SEVERAL WEEKS AGO, I PROPOSED COOPERATION WITH EASTERN NATIONS ON ENVIRONMENTAL ISSUES. IN KEEPING WITH THIS, I AM HAPPY TO ANNOUNCE THAT THE U.S. ENVIRONMENTAL PROTECTION AGENCY AND THE HUNGARIAN GOVERNMENT HAVE AGREED ON NEW PROGRAMS FOR EXCHANGES AND JOINT TRAINING OF ENVIRONMENTAL EXPERTS. -- WE ARE WORKING TO PROMOTE VISITS OF AMERICANS HERE AND OF HUNGARIANS TO OUR COUNTRY, IN THE BELIEF THAT SUCH PRIVATE CONTACTS BUILD PRACTICAL COOPERATION. [I AM PLEASED TO ANNOUNCE TWO NEW AGREEMENTS WITH YOUR GOVERNMENT -- ON TOURISM AND CIVILIAN AIR TRAFFIC.] -- OUR STUDENT EXCHANGES HAVE BEEN GROWING FAST, BUT THERE IS MUCH MORE ROOM FOR EXPANSION. I AM VERY PLEASED TO ANNOUNCE THAT THE UNITED STATES INFORMATION AGENCY IS GOING INITIATE SIX NEW YOUTH EXCHANGE PROGRAMS WITH HUNGARY. SOME HERE IN THIS AUDIENCE WILL BE GOING TO THE UNITED STATES SOON. CONF IDENTIAL CONFIDENTIAL -9- -- [WE ARE ON THE THRESHOLD OF ANOTHER EXCITING EDUCATIONAL DEVELOPMENT; ONE WHICH WILL BRING THE PEACE CORPS FOR THE FIRST TIME TO A EUROPEAN COUNTRY. THE STUDY OF THE ENGLISH LANGUAGE IN HUNGARY HAS BECOME VERY POPULAR. WE AND THE HUNGARIAN GOVERNMENT STRONGLY SUPPORT IT. THEREFORE IT IS WITH PARTICULAR PLEASURE THAT I ANNOUNCE THAT THE U.S. WILL SEND 20 PEACE CORPS VOLUNTEERS TO HUNGARY TO TEACH ENGLISH - ONE FOR EACH OF YOUR 19 COUNTIES AND FOR BUDAPEST.] -- FINALLY, I AM PLEASED TO ANNOUNCE THAT THE U.S. WILL OPEN, WITHIN THE NEXT TWO YEARS, AN AMERICA HOUSE IN THE CENTER OF BUDAPEST. THIS CENTER WILL HELP HUNGARIANS TO BECOME MORE FAMILIAR WITH AMERICAN CULTURE AND WILL WORK TO PROMOTE OUR TRADE RELATIONS. WE HAVE CHOSEN THE CELEBRATED AMERICAN ARCHITECT ROBERT STERN TO MAKE THE PLANS. Meeting the Future FRANK I WILL BE HONEST: YOU KNOW AS WELL AS I THAT THESE EFFORTS ALONE WILL NOT SOLVE THE ECONOMIC CHALLENGES THAT AWAIT YOU. HUNGARY HAS A LOT OF WORK AHEAD; so DO THE UNITED STATES AND HUNGARY, WORKING TOGETHER TO BUILD A BETTER FUTURE. YOUR CHALLENGE IS ENORMOUS AND HISTORIC, NO NATION HAS YET ATTEMPTED WHAT HUNGARY IS NOW ATTEMPTING: TO BUILD POLITICAL Poland? DEMOCRACY AND DECENTRALIZED ECONOMIC ENTERPRISE ON THE RUINS OF A FAILED SYSTEM. CONFIDENTIAL CONFIDENTIAL -10- GIVEN THE OPPORTUNITY TO SHOW THEIR CHARACTERISTIC INITIATIVE, CREATIVITY, AND RESOURCEFULNESS, THE HUNGARIAN PEOPLE WILL MEET THE CHALLENGE. YOU ARE READY TO FACE THE FUTURE. I SEE A COUNTRY WELL ON THE WAY TO FREEDOM AND PROSPERITY. I SEE A PEOPLE RICH IN HUMAN RESOURCES AND RICH IN MORAL POWER AND COURAGE. I SEE A PROUD NATION EMERGING REALIZING ITS DESTINY. I CONGRATULATE YOU FOR HAVING COME SO FAR. LET US ALL BE EQUAL TO THE OPPORTUNITY THAT LIES BEFORE US. IF WE SO CHOOSE, HISTORY WILL WRITE THAT OURS WAS THE GENERATION WHICH MADE EUROPE FREE. THANK YOU. CONFIDENTIAL THE WHITE HOUSE WASHINGTON June 14, 1989 MEMORANDUM FOR THE CHIEF OF STAFF BOBBIE KILBERG DAVID BATES PATTY PRESOCK RICHARD BREEDEN LINDA CASEY ANDREW CARD ROBERT GUTTMAN JAMES CICCONI TIMOTHY MCBRIDE DAVID DEMAREST ROSE ZAMARIA MARLIN FITZWATER TONY LOPEZ BOYDEN GRAY DAVID VALDEZ FRED MCCLURE BILLY DALE BONNIE NEWMAN JAY ALLISON ROGER PORTER BRUCE ZANCA BRENT SCOWCROFT LAURIE FIRESTONE STEPHEN STUDDERT CASEY HEALEY CHASE UNTERMEYER JEAN LAMB SUSAN PORTER ROSE DEB ANDERSON ED ROGERS USSS/PPD OPS JOE HAGIN WHCA AUDIO/VISUAL JIM WRAY WHCA OPERATIONS CHRISS WINSTON MEDICAL UNIT PRESIDENTIAL DOCUMENTS THRU: STEPHEN M. STUDDERT ASSISTANT TO THE PRESIDENT FOR SPECIAL ACTIVITIES AND INITIATIVES FROM: JOHN G. KELLER, JR. JEK DEPUTY ASSISTANT TO THE PRESIDENT AND DIRECTOR OF PRESIDENTIAL ADVANCE SUBJECT: TRIP OF THE PRESIDENT TO EUROPE JULY 9 - 18, 1989 For your use and planning purposes, the attached is information for the Trip of the President to Europe. As you will see, departure is Sunday, July 9, 1989 at 7:00 am from Andrews Air Force Base. Please note that schedules are subject to change. DRAFT 6/14 11:00 am Washington, DC SCHEDULE OF THE PRESIDENT AND MRS. BUSH TO WARSAW, POLAND JULY 9-11, 1989 Sunday, July 9, 1989 7:00 am (B) Depart Andrews Air Force Base en route Warsaw, Poland. * DEPARTURE STATEMENT 5-7mm outline of McGroarty * -Open Press (Flight Time: 8 Hours 50 Minutes) Doday (Time Change: Ahead 6 Hours) (Interchange: Yes) 9:50 pm (B) Arrive Warsaw, Poland. * ARRIVAL CEREMONY 5min mcNally Simon -Arrival Statement -Pool Coverage 10:10 pm (B) Depart Airport en route Parkowa Guest House. (Drive Time: 20 Minutes) 10:30 pm (B) Arrive Parkowa Guest House for RON. Monday, July 10, 1989 8:35 am Depart Guest House en route Tomb of the Unknown Soldier. (Drive Time: 10 Minutes) 8:45 am Arrive Tomb of the Unknown Soldier. * WREATH LAYING CEREMONY -Open Press 9:00 am Depart Tomb of the Unknown Soldier en route Umschlagplatz. (Drive Time: 10 Minutes) 9:10 am Arrive Umschlagplatz. * WREATH LAYING CEREMONY -Pool Coverage 9:20 am Depart Umschlagplatz en route Belwedere Palace. (Drive Time: 10 Minutes) 9:30 am Arrive Belwedere Palace. * BILATERAL MEETING WITH GENERAL JARUZELSKI -Photo Opportunity * EXPANDED BILATERAL MEETING WITH GENERAL JARUZELSKI -Photo Opportunity no statement 11:30 am Depart Belwedere Palace en route Ambassador's Residence. (Drive Time: 15 Minutes) 11:45 am Arrive Ambassador's Residence. * LUNCHEON WITH SENATE LEADERS (opp., non gut. leader (12:00 pm - 1:30 pm) -Photo Opportunity * POLISH LITTLE LEAGUE BASEBALL EVENT Smith (1:45 pm - 2:00 pm) -Pool Coverage Blassey Blefremarks 2:00 pm Depart Ambassador's Residence en route The Sejm. (Drive Time: 15 Minutes) 2:15 pm Arrive The Sejm. (8:15 (EST) * ADDRESS JOINT SESSION OF PARLIAMENT -Expanded Pool Coverage Jammed -Teleprompter 20min Langellace (trons.) 3:15 pm Depart The Sejm en route Council of Ministers. (Drive Time: 5 Minutes) 3:20 pm Arrive Council of Ministers. * MEETING WITH PRIME MINISTER -Photo Opportunity 4:00 pm Depart Council of Ministers en route American Embassy. (Drive Time: 5 Minutes) 4:05 pm (B) Arrive American Embassy. * AMERICAN COMMUNITY GREETING * Large Wallace -Pool Coverage Tacking paints 4:45 pm (B) Depart American Embassy en route Parkowa Guest House. : (Drive Time: 5 Minutes) 4:50 pm (B) Arrive Parkowa Guest House. AdMINISTRATIVE (PRIVATE TIME: 2 HOURS 55 MINUTES) 7:45 pm (B) Depart Guest House en route Radziwill Palace. (Drive Time: 10 Minutes) 7:55 pm (B) Arrive Radziwill Palace. * STATE DINNER HOSTED BY GENERAL * McNally Simon JARUZELSKI -Pool Coverage Toasts -Official Party + (35) 5min. -Business Suit 10:00 pm (B) Depart Radziwill Palace en route Guest House. (Drive Time: 10 Minutes) 10:10 pm (B) Arrive Guest House for RON. Tuesday, July 11, 1989 9:40 am (B) Depart Parkowa Guest House en route Warsaw Airport. (Drive Time: 20 Minutes) 10:00 am (B) Arrive Warsaw Airport. 10:10 am (B) Depart Warsaw, Poland en route Gdansk, Poland. (Flight Time: 1 Hour 15 Minutes) (Time Change: None) (Interchange: Yes) DRAFT 6/14 11:00 am Washington, DC SCHEDULE OF THE PRESIDENT AND MRS. BUSH FOR GDANSK, POLAND TUESDAY, JULY 11, 1989 8:00 Admin. TIME 11:25 am (B) Arrive Gdansk Airport, Gdansk, Poland. 11:35 am (B) Depart Gdansk Airport en route Oliva Cathedral. (Drive Time: 10 Minutes) 11:45 am (B) Arrive Oliva Cathedral. * MEETING WITH BISHOP GOCLOWSKI -Photo Opportunity 12:35 pm (B) Depart Oliva Cathedral en route Walesa Residence. (Drive Time: 10 Minutes) 12:45 pm (B) Arrive Walesa Residence. * PRIVATE LUNCH WITH LECH WALESA -Photo Opportunity 1:45 pm (B) Depart Walesa Residence en route Solidarity Worker's Monument. (Drive Time: 15 Minutes) 2:00 pm (B) Arrive Solidarity Worker's Monument. (slipgara gates) * WREATH LAYING CEREMONY -Photo Opportunity * McNally * ADDRESS -Open Press (10/10) Simon 10min. (ref. next stap) 2:35 pm (B) Depart Solidarity Worker's Monument en route Westerplatte. (Drive Time: 25 Minutes) 3:00 pm (B) Arrive Westerplatte. * WREATH LAYING CEREMONY -Pool Coverage 3:30 pm (B) Depart Westerplatte via Boat en route Downtown Dock. (Cruise Time: 30 Minutes) 4:00 pm (B) Arrive Downtown Dock. * OFFICIAL GREETING WITH GDANSK CITY OFFICIALS -Photo Opportunity 4:20 pm (B) Depart Downtown Dock en route Gdansk Airport. (Drive Time: 15 Minutes) 4:35 pm (B) Arrive Gdansk Airport. * DEPARTURE CEREMONY Pool Coverage -Statement X Lange Wallace Very Buy 4:45 pm (B) Depart Gdansk, Poland en route Budapest, Hungary. (Flight Time: 2 Hours) (Time Change: None) (Interchange: Yes) DRAFT 6/14 11:00 am Washington, DC SCHEDULE OF THE PRESIDENT AND MRS. BUSH TO HUNGARY JULY 11 - - 13, 1989 6:45 pm (B) Arrive Budapest, Hungary. 6:55 pm (B) Depart Budapest Airport en route Kossuth Square. (Drive Time: 20 Minutes) 7:15 pm (B) Arrive Kossuth Square. * REMARKS AT KOSSUTH MEMORIAL SQUARE Smith -Open Press 7.10mm. 1 * Blessey * FORMAL ARRIVAL CEREMONY -Open Press 7:50 pm (B) Depart Kossuth Square en route Parliament via foot. 7:55 pm (B) Arrive Parliament. mcGorday * STATE DINNER Pool Coverage - 5mm -Brief Remarks/Toast Dooley -Business Suit -Official Party 10:00 pm (B) Depart Parliament en route Guest House. (Drive Time: 10 Minutes) 10:10 pm (B) Arrive Guest House for RON. Wednesday, July 12, 1989 8:45 am Depart Guest House en route Parliament. (Drive Time: 10 Minutes) 8:55 am Arrive Parliament. * COURTESY CALL ON PRESIDENT STRAUB (9:00 am - 9:10 am) -One on One -Photo Opportunity * BILATERAL MEETING WITH GENERAL SECRETARY GROSZ (9:15 am - 10:05 am) -Eight on Eight -Photo Opportunity * BILATERAL MEETING WITH PRIME MINISTER NEMETH (10:10 am - 11:00 am) -Eight on Eight -Photo Opportunity 11:05 am Depart Parliament en route Guest House. (Drive Time: 10 Minutes) 11:15 am Arrive Guest House. Admin (PRIVATE TIME: 1 HOUR) 12:15 pm Depart Guest House en route Var, Old Prison on Castle Hill. (Drive Time: 10 Minutes) 12:25 pm Arrive Old Prison on Castle Hill. * INFORMAL DISCUSSION WITH STUDENTS MKG -Photo Opportunity * 1:05 pm Depart Old Prison en route Karl Marx University of Economics. (Drive Time: 10 Minutes) 1:15 pm Arrive Karl Marx University of Economics. * Davis ADDRESS TO STUDENTS (TELEPROMPTER) * -Open Press Martin -Simultaneous Translation 20-25min. 2:00 pm Depart Karl Marx University en route Ambassador's Residence. (Drive Time: 10 Minutes) 2:10 pm Arrive Ambassador's Residence. * MEETING WITH STATE MINISTERS POZSGAY AND NYERS (2:15 pm - 3:00 pm) -Photo Opportunity * MEETING WITH LEADERS OF NEW POLITICAL PARTIES (3:15 pm - 4:00 pm) -Photo Opportunity 4:10 pm Depart Ambassador's Residence en route Guest House. (Drive Time: 5 Minutes) 4:15 pm Arrive Guest House. (PRIVATE TIME: 2 HOURS 30 MINUTES) Freyn OPTION: Tennis with Prime Minister and Secretary ? Baker. 6:45 pm Depart Guest House en route Ambassador's Residence. 6:50 pm Arrive Ambassador's Residence. * RECEPTION HOSTED BY PRESIDENT BUSH (non-gavemmental (7:00 pm - 7:45 pm) -Pool Coverage 8:00 pm Depart Ambassador's Residence en route Guest House. (Drive Time: 5 Minutes) 8:05 pm Arrive Guest House for RON. Thursday, July 13, 1989 8:50 am Depart Guest House en route Ambassador's Residence. (Drive Time: 5 Minutes) 8:55 am Arrive Ambassador's Residence. * T.P. Smith Blessey * American community greeting -Pool Coverage 9:30 am Depart Ambassador's Residence en route Budapest Airport. (Drive Time: 15 Minutes) 5-7 9:45 am Arrive Budapest Airport. brief Davis * BRIEF DEPARTURE CEREMONY statement * -Open Press 10:00 martin am Depart Budapest, Hungary en route Paris France. (Flight Time: 2 Hours 20 Minutes) (Time Change: None) (Interchange: Yes) DRAFT Revised 6/14/89 11:00 am Washington, DC SCHEDULE OF THE PRESIDENT AND MRS. BUSH FOR PARIS, FRANCE JULY 13 r 17, 1989 Thursday, July 13, 1989 12:00 Rights of mon Ceremony 12:35 pm Arrive Orly Airport, Paris, France. 12:45 pm Depart Orly Airport en route Palais de L'Elysee (Drive Time: 25 Minutes) 1:10 pm Arrive Palais de L'Elysee. * BICENTENNIAL LUNCHEON HOSTED BY PRESIDENT MITTERRAND -Photo Opportunity 2:45 pm Depart Palais de L'Elysee en route Paris American Hospital. (Drive Time: 15 Minutes) 3:00 pm (B) Arrive Paris American Hospital. * DEDICATION OF NEW HOSPITAL WING -Pool Coverage -Brief Remarks 3:45 pm Depart Paris American Hospital en route Palais de L'Elysee. (Drive Time: 15 Minutes) 4:00 pm Arrive Palais de L'Elysee. * BILATERAL MEETING WITH PRESIDENT MITTERRAND -Photo Opportunity -Brief Arrival Ceremony -One on One 4:30 pm Depart Palais de L'Elysee en route Ambassador's Residence. (Drive Time: 5 Minutes) 4:35 pm Arrive Ambassador's Residence. (PRIVATE TIME: 2 HOURS 10 MINUTES) 6:45 pm (B) Depart Ambassador's Residence en route Opera House at La Bastille. (Drive Time: 10 Minutes) 6:55 pm (B) Arrive Opera House at La Bastille. * OPENING OF THE BASTILLE OPERA -Photo Opportunity KEY TO BASTILLE EXCHANGE CEREMONY -Photo Opportunity 8:45 pm (B) Depart Opera House at La Bastille en route Musee d'Orsay. (Drive Time: 10 Minutes) 8:55 pm (B) Arrive Musee d'Orsay * DINNER HOSTED BY PRESIDENT MITTERRAND -Photo Opportunity 11:00 pm Depart Musee d'Orsay en route Ambassador's Residence. 11:30 pm Arrive Ambassador's Residence for RON. Friday, July 14, 1989 9:45 am Depart Ambassador's Residence en route Place de la Concorde. 9:50 am Arrive Place de la Concorde. * VIEW BASTILLE DAY PARADE -Open Press 11:45 am Depart Place de la Concorde en route Ambassador's Residence. 11:50 am Arrive Ambassador's Residence for Private Time. (PRIVATE TIME TIME: 1 HOUR) 12:50 pm (B) Depart Ambassador's Residence en route Ministry of Foreign Affairs. (Drive Time: 10 Minutes) 1:00 pm (B) Arrive Ministry of Foreign Affairs. * GARDEN PARTY HOSTED BY PRESIDENT MITTERRAND -Press TBD 1:30 pm (B) Depart Ministry of Foreign Affairs via Foot en route Hotel de Lassay. 1:40 pm (B) Arrive Hotel de Lassay. * BICENTENNIAL LUNCH HOSTED BY PRESIDENT MITTERRAND -Photo Opportunity 3:15 pm (B) Depart Hotel de Lassay en route Ambassador's Residence. (Drive Time: 10 Minutes) 3:25 pm (B) Arrive Ambassador's Residence. (PRIVATE TIME: 1 HOUR 15 MINUTES) 4:40 pm Depart Ambassador's Residence en route Pyramide du Louvre. (Drive Time: 15 Minutes) 4:55 pm Arrive Pyramide du Louvre. * OPENING SESSION OF THE 25TH SUMMIT OF INDUSTRIALIZED NATIONS 6:45 pm Depart Pyramide du Louvre en route Ambassador's Residence. (Drive Time: 15 Minutes) 7:00 pm Arrive Ambassador's Residence for Private Time. (PRIVATE TIME: 1 HOUR 25 MINUTES) 8:25 pm Depart Ambassador's Residence en route Hotel de la Marine, Place de la Concorde, (Drive Time: 5 Minutes) 8:30 pm Arrive Hotel de la Marine. * WORKING DINNER HOSTED BY PRESIDENT MITTERRAND -Photo Opportunity 10:30 pm Depart Hotel de la Marine, Place de la Concorde en route Ambassador's Residence. (Drive Time: 5 Minutes) 10:35 pm Arrive Ambassador's Residence for RON. Saturday, July 15, 1989 9:35 am Depart Ambassador's Residence en route Arche de la Defense. (Drive Time: 15 Minutes) 9:50 am Arrive Arche de la Defense. * RESTRICTED SESSION (10:00 am - 10:15 am) -Heads Only -Photo Opportunity * PLENERY SESSION (10:15 am - 12:30 pm) -Heads/Ministers/Shirpas -Photo Opportunity * WORKING LUNCHEON (1:00 pm - 2:30 pm) -Heads Only -Photo Opportunity * PLENERY SESSION (3:00 pm - 5:00 pm) -Heads/Ministers/Shirpas -Photo Opportunity 5:05 pm Depart Arche de la Defense en route Ambassador's Residence. (Drive Time: 15 Minutes) 5:25 pm Arrive Ambassador's Residence for Private Time. (PRIVATE TIME: 45 MINUTES) 6:10 pm Depart Ambassador's Residence en route Pyramide du Louvre. (Drive Time: 15 Minutes) 6:25 pm Arrive Pyramide du Louvre. * INFORMAL WORKING SESSION (6:30 pm - 7:30 pm) -Heads Only -Press TBD * DINNER HOSTED BY PRESIDENT MITTERRAND (8:00 pm - 9:45 pm) -Heads Only -Photo Opportunity 9:45 pm Depart Pyramide du Louvre en route Ambassador's Residence. (Drive Time: : 15 Minutes) 10:00 pm Arrive Ambassador's Residence for RON. Sunday, July 16, 1989 8:30 am (B) Depart Ambassador's Residence en route American Cathedral of Paris. (Drive Time: 10 Minutes) 8:45 am (B) Arrive American Cathedral of Paris. * CHURCH SERVICE -Press TBD 9:30 am Depart American Cathedral of Paris en route Arche de la Defense. 9:45 am Arrive Arche de la Defense. * PLENERY SESSION (10:00 am - 12:30 pm) -Photo Opportunity -Heads/Ministers/Shirpas * WORKING LUNCHEON (1:00 pm - 2:30 pm) -Heads/Ministers of Foreign Affairs * PLENERY SESSION (3:00 pm - 5:00 pm) -Photo Opportunity -Heads/Ministers/Shirpas * READING OF JOINT COMMUNIQUE (5:20 pm - 5:45 pm) -Pool Coverage 5:55 pm Depart Arche de la Defense en route Meridian Hotel. (Drive Time: 10 Minutes) 6:05 pm Arrive Meridian Hotel. * PRESS CONFERENCE 6:50 pm Depart Meridian Hotel en route Ambassador's Residence. (Drive Time: 10 Minutes) 7:00 pm Arrive Ambassador's Residence for Private Time. (PRIVATE TIME: 50 MINUTES) 7:50 pm (B) Depart Ambassador's Residence en route Palais d'Elysee. 7:55 pm (B) Arrive Palais d'Elysee. * DINNER HOSTED BY PRESIDENT MITTERRAND -Photo Opportunity -Black Tie 10:00 pm (B) Depart Palais d'Elysee en route Ambassador's Residence. 10:05 pm Arrive Ambassador's Residence for RON. Monday, July 17, 1989 McNally * AMERICAN COMMUNITY GREETING * Simon (8:00 am 8:15 am) -Pool Coverage 8:15 am (B) Depart Ambassador's Residence en route Orly Airport. 8:40 am (B) Arrive Orly Airport and board Air Force One. 8:50 am (B) Depart Paris, France en route Valkenberg NAS, The Netherlands. (Flying Time: 1 Hour 25 Minutes) (Interchange: Yes) (Time Change: None) DRAFT 6/14/89 11:00 am Washington, DC SCHEDULE OF THE PRESIDENT AND MRS. BUSH TO THE NETHERLANDS JULY 17 - - 18, 1989 10:15 am (B) Arrive Schipol Airport, Amsterdam, Netherlands. * ARRIVAL CEREMONY -Open Press stateme 10:30 am (B) Depart Schipol Airport en route Nordeinde Palace, The Hague. (Drive Time: 40 Minutes) 11:10 am (B) Arrive Nordeinde Palace. * OFFICIAL GREETING WITH QUEEN BEATRIX -Photo Opportunity 11:40 am Depart Nordeinde Palace en route Parliament. (Drive Time: 5 Minutes) 11:45 am Arrive Parliament. * EXPANDED BILATERAL MEETING WITH PRIME MINISTER LUBBER'S -Photo Opportunity -Ten on Ten 12:45 pm Depart Parliament en route Catshuis. (Drive Time: 10 Minutes) 12:55 pm Arrive Catshuis. * WORKING LUNCHEON WITH PRIME MINISTER LUBBER'S -Photo Opportunity -Ten on Ten 2:35 pm Depart Catshuis en route The Pieterskerk, Leiden. (Drive Time: 25 Minutes) 3:00 pm (B) Arrive The Pieterskerk, Leiden. * ADDRESS TO RESIDENTS Gueen mcGroarty Dooley -Open Press -Teleprompter (15-20) * * TOUR PILGRIMFATHERS EXHIBITION -Pool Coverage WRAP REVIEW VIP RECEPTION -Closed Press 4:30 pm (B) Depart The Pieterskerk, Leiden en route Nordeinde Palace. (Drive Time: 25 Minutes) 4:55 pm (B) Arrive Nordeinde Palace. (PRIVATE TIME: 3 HOURS) 7:55 pm (B) Participate in State Dinner. McGroarty * RECEIVING LINE -Pool Coverage * * STATE DINNER Dooley Closed Press must -Informal Toasts 10:30 pm Dinner Concludes. RON Tuesday, July 18, 1989 7:40 am Depart Nordeinde Palace en route Ambassador's. Residence. (Drive Time: 10 Minutes) 7:50 am Arrive Ambassador's Residence. * MEETING WITH OPPOSITION LEADER KOK (8:00 am - 8:30 am) * BREAKFAST WITH PARTY LEADERS AND FOREIGN AFFAIRS COMMITTEE MEMBERS (8:35 am - 9:35 am) -Photo Opportunity 9:45 am Depart Ambassador's Residence en route American Embassy. (Drive Time: 10 Minutes) 9:55 am (B) Arrive American Embassy. * AMERICAN COMMUNITY GREETING Smith Pool Coverage Blessey -Brief Remarks TP 10:30 am (B) Depart American Embassy en route Nordiende Palace. (Drive Time: 10 Minutes) 10:40 am (B) Arrive Nordeinde Palace. * DEPARTURE GREETING WITH QUEEN BEATRIX 11:00 am (B) Depart Nordeinde Palace en route Schipol Airport. (Drive Time: 40 Minutes) 11:40 am (B) Arrive Schipol Airport. * DEPARTURE CEREMONY -Pool Coverage 11:55 am (B) Depart Amsterdam, Netherlands en route Andrews Air Force Base. (Flight Time: 8 Hours 10 Minutes) (Time Change: Back 6 Hours) (Interchange: Yes) 1:40 pm Arrive Andrews Air Force Base. * ARRIVAL STATEMENT -Open Press McGroarty Major Address Doday HISTDRY Economics + Integration of W.Europe Comfort USSR related to Warsaw Pact Condi- - Hungary contact SummiT World Debt Environment MEMO Teleprompter of length OFF THE RECORD 1 FOR YOUR INFORMATION ONLY TRIP OF THE PRESIDENT TO POLAND, HUNGARY, FRANCE AND THE NETHERLANDS Report from the White House Pre-Advance June 2 - June 11 Overview President and Mrs. Bush will leave Andrews around 7 a.m. EDT on Sunday, July 9, arriving Warsaw around 9:50 p.m. Local, or 3:50 p.m. EDT. (All European times on this trip are EDT + 6 hours.) They will spend two nights in Warsaw, two nights in Budapest, four nights in Paris and one night in the Netherlands, returning to the United States on July 18. A last-minute revision of the schedule during the pre-advance trip eliminated the need for a refueling stop en route back from the Netherlands. Contrary to earlier talk, Bush will return to Andrews from Europe and spend a night or two back in Washington. then fly to Houston. In Poland and hungary, where the obvious emphasis will be on further political and economic liberalization in Eastern Europe, Bush will follow an official schedule of meetings with government o+ficials and formal dinners, as well as an unofficial schedule put together by the U.S. side that will include meetings with opposition and new political forces in both countries. In Paris, events connected to the bicentehnial of the French Revolution have been added to his schedule. as have bilaterais with Mitterrand and possibly other leaders attending the Economic Summit. what now looks like a 25-hour stop in the Netnerlands will include appearances with Queen Beatrix, meetings with political figures jockeying for oosition in advance of elections in September, a state dinner and remarks to the American community. NOTE: All times listed below are tentative and quite subject to change. In many cases, specific coverage arrangements (pool sizes, etc.) have yet to be negotiated with host countries. COVERAGE NOTE: White House is promising to try to integrate travel pools into as many coverage pools as possible to avoid duplication. This looks like it will be more possible in Poland, Hungary and The Netherlands than in Paris, due to the Bicentennial/Summit. media crush, FILING NOTE: With the exception of Warsaw, phones with international dialing capability should be installed at all filing centers, event sites and pool nolding rooms. POLAND In Poland, most of the official schedule will play out in Warsaw, while the unofficial schedule is keyed to a lunch with Lech Walesa and speech at the famous Solidarity monument located just OFF THE RECORD 2 FOR YOUR INFORMATION ONLY outside the gate to the Lenin Shipyard where Walesa worked as an electrician and founded Solidarity in 1970. The official schedule is complicated a bit by the lop-sided outcome of the recent elections. which left Solidarity in a far stronger position than expected and the communist party leadership largely repudiated, even though the rules negotiated by the government and opposition guaranteed the party and its supporters a certain level of representation in the newly constituted Seim, or parliament. Officials on both sides insist the events planned for the visit will go on as planned, even though no one could be certain the two chambers of the reconstituted parliament -- a new, 100-member Senate and the 460-member Sejm, or lower chamber -- would.l be legally filled by the time Bush speaks to a joint session on July 10. Prime Minister Mieczyslav Rakowski, who is scheduled to meet with Bush, was among those party leaders rejected by the voters on June 4 and it was not certain at the time of our visit whether the necessary electoral gears will have turned in time for Wojciech Jaruzelski, who has been head of state since November 1985. to hold the new title of president. In the June 4 elections, Solidarity won 160 of 161 allotted seats in the Seim and 92 seats in the Senate. Runoff elections are set for June 18. ACCOMMODATIONS: The White House Filing Center will De in the main ballroom (Sala Balowa) on the ground floor of the Victoria Intercontinental Hotel, al. Krolewska 11, telephone 255-051. AT&T will install a satellite system connecting with its operators in the U.S. for clean data and voice transmission. Unfortunately, these onones will be your only hope for getting calls back to the states. The telephone svstem in Poland 15 dreadfully Inadequate and operator- placed calis to the U.S. can take several hours. The traveling white House press corps will be staying at A notel other than the Victoria, which has been taken over for members OT the official delegation and other staff. During our visit. a Holiday Inn was to have opened slightly more than a haif-mile from the Victoria. One other possibility for the press could De the Europejski. which is located near the Victoria out lacks the modern facilities of that hotel or the Holidav Inn. In any case. plan on calling home only from the filing center. In Gdansk. the filing center will be located in the main-floor ballroom of the Hevelius Hotel. ul. Heweliusza 22. telephone 315-631. where AT&T will have another satellite set-up (on a slightly more limited scale than Warsaw) for communication back to the U.S. The Polish Zloty exchanges at a rate of 4,000 to the U.S. dollar, making shopping and eating real bargains if you find the right places. Recommended among the restaurants in Warsaw (both in the Old Town section) are Bazyliszek and Swietoszek. Electrical power is 220/240 V, requiring an adapter with twin round plugs. OFF THE RECORD W FOR YOUR INFORMATION ONLY THE SITES: In 1987. Bush became the highest-ranking American official to visit Poland since Jimmy Carter in 1977. This time, as in 1987. his first major event will be a wreath-laying at the Tomb of the Unknown Soldier in the Saxxon Gardens. just across the street from the Victoria Hotel. Two soldiers wearing the four-cornered military cap known as the "rogatyvka" guard the triple-colonade memorial, an eternal flame honoring Polish military men who died in World War II and a marble slab inscribed with the words "Here lies the Polish soldier who gave his life for the Fatherland. A second wreath-laying is planned at Umschlagplatz, an almost unmarked memorial of marble walls at about the precise point where Jews were loaded onto trains for transport to the Nazi death camps. The memorial is relatively new, dedicated in April 1988 to coincide with the 45th anniversary of the Warsaw Ghetto uprising. In Polish. on the wall: "Along this path of suffering and death over 300,000 Jews were driven in 1942-1943 from the Warsaw Ghetto to the gas chambers of the Nazi extermination camps. The wall also is inscribed with the family names of some of those taken off to the camps. On his Last visit. Bush laid a wreath at the granite Monument to the Heroes of the Ghetto. Official events in Warsaw will De held at: Belwedere Palace, the home Of the last Polish king. where Jaruzelski receives official guests; the residence of U.S. Ambassador John Davis, where Bush met Walesa in 1987 and where this time he will have lunch with selected members of the Seim either in a dining room or under a tent in garden, with an appearance by Jaruzelski possiole. depending on his official status ac the time: The Seim. where Bush will speak to a joint session from a wood oodium in the vostairs main chamber (now underooing a modest amount Of renovation) press to be seated in the marble-columned gallerv: the Council of Ministers, where Bush will meet with the orime minister; the American Embassy, where Bush will have remarks to members of the American community and embassy workers in a small and most likely cramped basement assembly room: and Radziwill Palace, these davs a somewhat plain and mustv remnant of Polish royalty where Frederick Chopin is said to have played his first concert. Bush will be staying at the Parkowa Guest House, No official events are to held there. Events in Gdansk will be held at: the twin-spired Basilica Minor Olivienes, the "Cathedral Church in Oliva" known for its huge 7,896-pipe organ dating back to 1755. where Bush, to ensure he touches base with all three major political forces in Poland. will meet with Bishop Goclowski, in lieu of earlier plans to meet in Warsaw with Cardinal Glemp, who will de out of the country at the time of this visit (Culinary note: Polish sausage sandwiches with pickles. consumed with surorising digestive impunity DV OFF THE RECORD 4 FOR YOUR INFORMATION ONLY several members of the ore-advance delegation, were available from the vendor in the trailer across the road from the basilica for about 5 cents); the Walesa residence, a large nouse on the outskirts of Gdansk that Walesa recently purchased to accommodate his office and family needs, complete with "Digital" satellite dish and orchard in the back yard: the Solidarity Workers Monument, one of the most famous sites in recent Polish history, a tall metal sculpture rising to three crosses topped with anchors in memory of the 76 shipyard workers killed in the December 1980 riots. located in what is now known as Solidarity Square, right outside the Lenin Shipyards. a huge facility that Polish-born American heiress Barbara Johnson (of the Johnson & Johnson fortune) has offered to rescue from a planned phase-out by the Polish government: the Westerglatte Memorial, a tall monument overlooking the Gdansk shipvards on one side and the Baltic on the other, on land where the first shots of World War II were fired. Unlike the other events in Gdansk, this will be part of the official schedule for Poland and will see Jaruzelski rejoin Bush for a ceremony honoring the defenders of Polish soil who +ell during the month-long Nazi offensive of September- October, 1939. The 100-foot-tall stone monument carries the names of places where Polish soldiers tought in World War II. THE SCHEDULE: Sunday, July 9: 7:00 a.m.: Bush departs Andrews AFB. 9:50 p.m.: Arrival ceremony, remarks TBD. EXPANDED POOL. 10:10 0.0.1 Depart for Parkowa Guest House. 10:30 0.0.1 Arrive guest house. RON. Monday, July 10: 8:35 a.m.: Depart guest house for Tome OT unknown Soldier. 3:45 a.m.: Wreath-laying at Tomb of Unknown Boldier, POOL. 9:10 a.m.: Wreath-laying at Umschlagplatz. POOL. 9:30 a.m.: Arrive Belwedere Palace. Inside POOL coverage of welcoming handshake, POOL coverage at the start of a one-on-one meeting in the Pompeian Room with two principals seated on a couch. POOL moves to the Room of the works of the Council of State for photo of expanded meeting around a long oval table. 11:30 a.m.: Depart for Ambassador's Residence. 11:45 a.m.: Luncheon with Senate leaders. POOL. 2:00 p.m.: Depart for the Sejm. 2:15 p.m.: Sceech to joint session of the Seim. Essentially OPEN coverage, with as many as 100 press seated in gallerv. 3:15 p.m.: Depart for Council of Ministers. 5:20 p.m.: Meeting with prime minister. POOL. 4:00 p.m.: Depart for U.S. Embassy. 4:05 p.m.: Greeting to American community and embassy workers. POOL. OFF THE RECORD 5 FOR YOUR INFORMATION ONLY 4:45 p.m.: Depart for quest nouse, 4:50 p.m.: Arrive guest house. 7:45 p.m.: Depart for Radziwill Palace. 7:55 p.m.: State dinner hosted by Jaruzelski. Guests seated at horseshoe-shaped table. POOL coverage of toasts at top of dinner, delivered with consecutive translation. 10:00 D.M.: Depart for guest house. 10:10 p.m.: Arrive guest house. Tuesdav. July 11: 10:00 a.m.: Airport departure ceremony. 10:10 a.m.: Depart for Gdansk. 11:25 3.m.: Arrive Gdansk. 11:45 a.m.: Arrive cathedral by motorcade for meeting with bishop in upstairs residence adjacent to basilica (POOL), to be followed by walk into cathedral for brief organ concert. POOL. 12:35 D.M.: Depart for Walesa residence. 12:45 D.m.: Arrive Walesa residence for lunch. POOL will be brought in for photo of Bushes and Walesas sitting at wooden dining table (bench seating) in small dining room. Could be Followed by walk through garden. 1:55 D.M.: Depart for Solidarity Workers Monument. 2:10 D.M.: Wreath-laying and remarks (with Walesa) against backdrop of monument base, Solidarity banner and shipyard gate. OPEN. 2:45 0.m.: Depart for Westerplatte. 3:10 D.M.: Arrive Westerplatte. greeted DV Jaruzeiski (POOL) for walk up hill (possible pre-set FOCL) for wreath-laying (separate pre-set POOL) with remarks TBD. 3:40 0.m.: Depart Westerplatte by boat. down canal past shidyards into the center "Old Town section of the city. POOL to follow. NOTE: The drive to Westerolatte, the ceremony there and the best trip back are intended to free JP about one_hour after the speech at the Solidarity Workers Monument. This could be tight for some pecole. who should bear 10 mind the next opportunity come only once at the hotel in Budapest. 4:10 D.M.: Arrive downtown dock. 4:20 0.0.1 Depart by motorcade for airport. 4:45 p.m.: Depart Gdansk for Budapest. HUNGARY Bush was the highest-ranking American official ever to visit Hungary in 1983 and will reclaim that title as the first president to travel there. As in Poland, the schedule will include government-to-government as well as other meetings. with political reform further along in Hungary. the visit may lack some of the drama of the moment that Poland holds. At the same time, the contrast to Poland may come as a start --- the streets. OFF THE RECORD 6 FOR YOUR INFORMATION ONLY shops and sidewalk cates bustling, the parliament a marvel of ornate architecture and the hotels equipped with the latest in modern conveniences. For the record, most of the events and the hotels for press and staff will be on the Pest side of the Danube. The guest house, Ambassador's Residence and Old Prison on are on the Buda side. ACCOMMODATIONS: The White House Filing Center will be in the first-floor lone up from ground) ballroom of the Duna Intercontinental Hotel, Apaczai Csere Janos utca 4, telephone 175-122, overlooking the Danube. The hotel, where the traveling press coros also will be housed. has color television with English channels in the rooms, indoor pool, several bars or restaurants and direct-dial telephone. Room rates were not known. though the nearby Atrium Hyatt, where the pre-advance party stayed, went for about $100 a night. Although USA Direct is available in Hungary (dial local number 171-499 to connect, the quality of the service during our visit was awful. As a result, AT&T satellite service will be available from the filing center. If the bugs in USA Direct have not been straightened out, direct-dial overseas service from the rooms should be good (at least for voice) but extremely expensive. AC power, again, is 220/240V requiring a two-prong adapter. The Duna has hard-currency shops in the notel and an active shopping district nearby. The local currency, the forint, goes for about 60 to the U.S. dollar. For the record. staff hotel is the Atrium- Hyatt, minutes away from the Duna. THE SITES: The schedule begins with a formal arrival peremony in KOBSUTN Square. named for freedom fighter Latos Kossuth. Leader of a national government born of an explosion of unrest in the mid- 19th century. The square is remembered for the tanks positioned and shots fired there during the uprising of 1956. There will be remarks under the statue of Kossuth, then a walk to the other end of the olaza (near the entrance to parliament) for troop review and anthems. Bush will then proceed inside parliament. up a red- carpeted stairway, to a state dinner in the Hunt Room with heavy wood panel and stained glass windows on one side. Guests will be seated at a long table down the center, with Bush and President Bruno Ferenc Straub seated across from one another near the mid- point. The next jay, Bush will return for three meetings at the parliament: 15 minutes with Straub in the Munkacsy Room, named for the artist whose huge painting spans almost the full length of one wall; an 8-on-8 meeting with Straub. party leader Karoly Grosz (replaced as head of government last fall) and other government officials in the Nandorfehervar Room, with a view of the Danube; and a 6-on-8 meeting with Prime Minister Miklos OFF THE RECORD 7 FOR YOUR INFORMATION ONLY Nemeth and other officials in the Delegation Room. Bush will De staying in a large. modern quest house facility on the Buda side of the river. One of the main attractions Of Budapest is Castle Hill, site of the former royal palace. The palace, an impressive structure that overlooks the Danube from a mill on the Buda side. was all but destroved during the seven-week siege of 1944-45 and since has been rebuilt. Not far away is the Old Frison on Castle Hill. The stone prison where Kossuth was held for three years 15 still there, but the grounds belong to the U.S. government as the result of a swap for debt after World War II and the compound now serves as home for the 10 Marines attached to the U.S. Embassy. The grounds have a panoramic view of the Danube and the Budapest cityscape. Against that background, Bush will meet with about 15 students, some vigorous opponents of the government. Afterward. he will motorcade back across the river to Karl Marx University of Economic Sciences, described by U.S. Ambassador Mark Palmer as "the most radical university in the city, despite the name." The university has exchanges with some 23 American schools and the coposition movement in Hungary has drawn from its Law School faculty. Bush will speak in the main hall on street level, with nis remarks piped CO overflow crowds. Mark will not. however, be looking over Bush's shoulcer as Lenin did with Reagan at Moscow State. Instead. Bush will speak at the opposite end of the hall from the statue of Marx. At the Ambassador's Residence. Bush will meet first in the Piano Room with state ministers and a short time later in the adjacent living room with members of new colitical parties. That evening, he will return to host an outside reception for a cross-section of the Hungarian community, then will remain for a orivate ginner, The ampassador ≡ residence, by the way, was snatched up in the same post-war real estate ceal 35 the Old Prison. For those in the 0001. the Bulldog $ name LE Fredrica. THE POSSIBLE SCHEDULE: desday, July 11: 5:45 p.m.: Arrive Budapest: depart for Kossuth Square. 7:05 p.m.: Arrival ceremony in Kossuth Square. OFEN. 7:35 p.m.: Proceed into parliament. PRE-SET POOL FOR WALK. 8:00 p.m.: State dinner. POOL coverage of toasts at start. 10:00 p.m.: Depart parliament for guest house. 10:10 p.m.: Arrive guest house. Wednesday, July 12: 8:50 a.m.: Depart guest house for parliament. 9:00 a.m.: Arrive parliament for three meetings (Straub. Nemeth 6-on-8 and final expanded 8-on-8.) POOL. 11:00 a.m.: Depart for quest house. 11:10 a.m.: Arrive quest house for private time. 12:15 p.m.: Depart quest house for Old Prison on Castle Hill OFF THE RECORD 0 FOR YOUR INFORMATION ONLY 12:25 p.m.: Informal discussion with students at Old Prison. POOL coverage of view of Budapest and start of discussion. No coverage of actual discussion. 1:15 p.m.: Arrive Karl Marx University for speech. OPEN. 2:00 p.m.: Depart for Ambassador $ Residence. 2:15 p.m.: 45-minute with state ministers. POOL photo COD. 3:15 p.m.: 45-minute meeting with leaders of new political parties. POOL photo opp. 4:10 p.m.: Depart for guest house. 4:15 p.m.: Arrive for 2 hours, 30 minutes private time. NOTE: One option considered for this period was to have Bush and Baker play tennis with the prime minister and foreign minister. 6:45 p.m.: Depart for Ambassador's Residence. 6:50 p.m.: Arrive for 45-minute reception (POOL) and private dinner (CLOSED PRESS). 9:35 p.m.: Depart for guest house. 9:40 p.m.: Arrive guest house. Thursday, July 13: 8:50 a.m.: Depart guest house for Angassador 5 Residence. 8:55 a.m.: Arrive for greeting to American community (POOL). 9:30 a.m.: Depart for airport 9:45 a.m.: Arrive for brief departure ceremony (OPEN). 10:00 a.m.: Depart for Paris. FRANCE What mignt have been a simple trio to the annual Economic Summit 19 complicated in Paris by the fact chat Mitterrand descided to schedule this small gathering of Western leaders at the same time as celebrations of: (a) the bicentennial of the French Revolution and (b) the centennial of the Statue of Liberty. Although Bush was not to have formally attended the Bicentennial, lines OT iistinction have become blurred. In addition to the summit. he is now slated to attend several Bicentennial+related events. He also will hold a bilateral with Mitterrand and could schedule similar meetings with one or more other summit leaders. It might be Of interest to some that the only substantive OPEN event now on the schedule is a post-summit news conference on Bunday, July 16. ACCOMMODATIONS: The white House Filing Center will be in the downstairs (one floor below lobby level) Renoir Room at the Meridien Hotel. 81 bd Gouvion St-Cyr, telephone 4758-1230. This also will be the press hotel, with overflow at the Concorde just across the street. Both are modern hotels with shops, 24-hour room service, etc.. located past the Arche de Triomphe as one moves from the center city out to La Defense, the site of the summit talks. Needless to say, no OFF THE RECORD 9 FOR YOUR INFORMATION ONLY one with time on his or her hands should go hungry in this neighborhood. Rooms at the Meridien have been going for 1.550 francs (about $235 at recent exchange rates) a night. though that certainly could go higher around Bastille Dav. Telephone service in the filing center will be through USA Direct. Although the pre-advance party stayed at a different hotel. Ellis Kitchen of AT&T advises that data transmission should be possible from sleeping rooms (with the suitable coupling device) through USA Direct. which is accessed locally by calling 19, waiting for a second dial tone, then dialing 0011. Power is 220V requiring dual-prong adapter. In addition to the filing center at the hotel. work space for the U.S. press has been reserved at Arche de La Defense, where the formal summit sessions will be held and where the international filing center will be located. However. we have been assured that facility will be considered only as a back-up and that any official briefings by the U.S. delegation will take place at the hotel, eliminating the need to be in two places at once. THE SITES: Appropriately enough, Bush begins at the historic Palais de L'Elysee with a Bicentennial luncheon hosted by Mitterrand. From the ceremonial surroundings of the balace. he goes to the American Hospital of Paris, founded in 1910. for the dedication of a new wing that, like most everything else on the schedule in Paris, was still very much under constrcution at the time of our visit. Bush will stress cooperation in medical treatment in remarks to almost 200 people (construction schedules permitting) in the new amphitheater of the wing, which will contain a library, equipment to communicate with hospitals in the U.S. and elsewhere and parking. That night (Thursday) Busn will attend a 90-minute performance at the new Bastille Opera House. a piece of architectural avant-garde located on Bastille Square near the site where the Bastille prison was pulled down on July 14. 1739. Before the performance, the heads of delegation (the seven neads of government and the president of the EC) will gather for dedication of a plaque. Immediately afterward, Bush will present Mitterrand the key to the Bastille. which has been in U.S. hands since Lafayette gave it to George Washington. In reality. the hand-off will be only a loan. The Mount Vernon Ladies Association of the Union loaned the key to the government for the occasion. From the opera, the summit leaders will head to the Musee Orsay (Drsay Museum) for a black-tie dinner. Located on the left bank of the Seine, the museum was once an imposing railway station and hotel, abandoned in 1939 and declared a national monument in 1973 by President Georges Pompidou. who ordered it turned into a display of the art from Naooleon III's Second Empire to the beginnings of Cubism, in effect a link between the older art of the Louvre and the moderism of the Centre Georges Pompidou. More OFF THE RECORD 10 FOR YOUR INFORMATION ONLY than 4,000 works are disolayed there. There will be a reception in the main hall, then dinner upstairs for about 80 (including heads of delegations and spouses) in La Salle des Fetes. The bicentennial events continue Friday, July 14. with the Bastille Day Parade, which Bush and other foreign leaders will watch from a viewing stand on the Place de la Concorde, which was designed before the revolution and dedicated to Louis XV, a statue of whom graced the center of the area. The statue was torn down during the revolution and in its place a guillotine erected, which took care of Louis XVI, Marie-Antoinette and others. The viewing stand will be erected under the Egyptian Obelisk from the temple of Luxor, given to France in 1931. A press stand was being built across the street. After the parade, Bush will attend a garden party and lunch hosted by Mitterrand at the Ministry of Foreign Affairs and adjacent Hotel de Lassay, the residence of the chairman of the National Assembly. So ends the Bicentennial portion of the schedule. The 25th Summit of Inoustrialized Nations gets under way late that afternoon (Fridav) with ceremonial arrivais and an opening session at the Pyramide du Louvre, the I.M. Pei-designed (and controversial) glass pyramid its base a 125-foot X 125-foot square -- now used as the main entrance to the displays and walkways that provided new and badly needed space for the 196- vear-old museum in the only place available: under the Cour Napoleon. or Napoleon Countyard. The summit leaders will pose for a group ohoto outside the large main pyramid. which along with two smaller pyramids covers a large undercround area where the leaders will then proceed down a soiral stairtase to the Napoleon Locov and on to a room known as the rotunda to sit down to business at a circular table. That night, the summit leaders dather for dinner at Hotel de la Marine. the Ministry of the Navy. for dinner. They will dine in a second-ilcor room that with a balcony that looks out onto Place de la Concorde. And at some point, the leaders are expected to walk out onto the balcony and view the final Bicentennial gala from behind culletproof glass. On Saturday, the formal summit talks open in a 35th-floor conference room in Arche de La Defense, an arch-shaped office building at the center of a huge new development about 4 kilometers from the Place de la Concorde. The leaders will meet on the top floor, between the two sides of the arch, in a room that was nothing but concrete. steel and ductwork when last visited but was supposed to be decorated with artwork and made to lead out to steps that would take the leaders to a spot offering an expansive view of Paris. That night, back to the Louvre for dinner in a foyer known as Pyramdon, located under one of the two smaller pyramids on the mezzanine level of the Pyramide du Louvre. The dinner is expected to be followed by a tour of the OFF THE RECORD 11 FOR YOUR INFORMATION ONLY ancient walls of Paris, the 12th-century stone walls uncovered during excavation for construction of the pyramid complex. On Sunday, the Bushes will attend services at the American Cathedral of Paris, headquarters of the Convocation of American Episcopal (Anglican) Churches in Europe, at 23 Av. George V. The Rev. James R. Leo is dean of the church. The Bushes are expected to arrive through a side entrance and will sit in a front pew for the 30- to 45-minute service. After that: more summit talks at Arche de La Defense, reading of the joint communique at the arch by Mitterrand, Bush news conference at the Meridien and a final black-tie dinner of summit leaders at Elysee Palace. THE SCHEDULE: Thursday, July 13: 12:35 p.m.: Arrive Orly Airport. 12:45 p.m.: Depart for Elvsee Palace. 1:10 p.m.: Bicentennial luncheon. POOL. 3:00 p.m.: Arrive American Hospital of Paris for remarks at dedication of new wing (OPEN) and possible visit with patient(s) (POOL). 4:00 p.m.: Arrive Elvsee Palace for meeting with Mitterrand. Arrival and POOL photo opp. 4:30 D.M.: Depart for Ambassador's Residence for 2 hours. 10 minutes private time. 6:45 p.m.: Depart for Bastilie Opera House. 6:55 p.m.: Arrive to be met by minister of culture; escorted upstairs to dedication/plaque ceremony (POOL) and key to Bastille exchange ceremony (POOL) before proceeding to performance. 8:45 p.m.: Depart for Musee "Oreav. 3:55 D.M.: Arrive for black-tie dinner. PRE-SET POOL or platform for outdoor arrival. Inside POOL photo opo. Remarks only by Mitterrand. 11:00 p.m.: Depart for Ambassador's $ Residence. 11:30 p.m.: Arrive Ambassador S Residence. Friday, July 14: 9:45 a.m.: Depart residence for Place de la Concorde. 9:50 a.m.: Arrive for Bastille Day Parade. Possible POOL near reviewing stand. 11:45 a.m.: Depart for Ambassador 5 Residence for 60 minutes private time. 1:00 p.m.: Arrive Ministry of Foreign Affairs for garden party/reception. Coverage TBD. 1:30 p.m.: Walk with Mitterrand to Hotel de Lassay. 1:40 p.m.: Arrive Hotel de Lassay (through tented walkway) for luncheon. POOL of arrival walk-up. 3:15 p.m.: Depart for Ambassador's Residence for 75 minutes private time. OFF THE RECORD 12 FOR YOUR INFORMATION ONLY 4:40 p.m.: Depart for Pyramide du Louvre. 4:55 p.m.: Arrive to honors, group photo. PRE-SET POOL from camera platform lining arrival path after Bush arrives last. Inside PRE-SET POOL for walk down into main hallway. POOL in three waves at top of meeting in the rotunda for opening session. 6:45 p.m.: Depart for Ambassador's Residence for 85 minutes private time. 8:25 p.m.: Depart for Hotel de la Marine. 8:30 p.m.: Arrive for reception in Diplomatique room and dinner in Des Amiraux. POOL photo opp at top of dinner. 10:35 p.m.: Arrive back Ambassador's Residence. Saturday, July 15: 9:35 a.m.: Depart residence for Arche de la Defense. 9:50 a.m.: Arrive for restricted session, plenary session, working luncheon and olenary session. No coverage. 5:05 p.m.: Depart for Ambassador's Residence for 45 minutes private time. 6:10 D.M.: Depart for Pvramide du Louvre. 6:25 p.m.: Arrive (PRE-SET POOL) for dinner. POOL coverage of walk upstairs from informal working session. POOL coverage of top of dinner. 9:45 p.m.: Depart Louvre for Ambassador's Residence. 10:00 p.m.: Arrive residence. Sundav, July 16: 8:30 a.m.: Depart residence for American Catnedral. 8:45 a.m.: Arrive for Sundav services. Possible no coverage. 9:30 a.m.: Depart for Arche de Le Defense. 10:00 a.m.: Meeting with heads/ministers/sherpas. POOL. 1:00 D.M.: Working luncheon. NO coverage. 3:00 p.m.: Plenary session. POOL. 5:20 p.m.: Reading of communique by Mitterrand. POOL. 5:55 p.m.: Depart for Meridien Hotel. 6:05 p.m.: Arrive for news conference. OPEN. 6:50 p.m.: Depart for Ambassador's Residence for 50 minutes orivate time. 7:50 p.m.: Depart residence for Elysee Falace, 7:55 0.m.: Arrive for black-tie dinner. POOL. 10:00 p.m.: Depart for Ambassador's Residence. 10:05 p.m.: Arrive residence. Monday, July 17: 8:35 a.m.: Depart residence for Orly Airport, 9:05 a.m.: Depart for The Netherlands. THE NETHERLANDS OFF THE RECORD 13 FOR YOUR INFORMATION ONLY As now configured, this will be a mere 25-hour stop, taking place slightly more than two months after the collapse of the center- right coalition government headed by Prime Minister Ruud Lubbers. who will be under challenge in September elections. The schedule has been compressed some from its original form and could be revised even further as the trip approaches. ACCOMMODATIONS: The White House Filing Center will be in the Europa Hotel at Zwolsestraat 2. 2587 VJ in The Hague/Scheveningen, telephone 070- 512651, telex 33138, fax 070-506473. Scheveningen is a resort town on the North Sea coast that blends into The Hague at the edges. The hotel 15 100 meters from a snop- and cafe-lined boardwalk and beach and across the street from a large indoor shopping complex. Overflow press not accommodated in the 174- room Europa will be housed nearby at the Carlton Beach. The Europa went for about $75 a night during the pre-advance, though at a special embassy rate. The Kurhuis, a comolex that includes a hotel. restaurants and a casino. is next door and is where the official delegation and staff will stav. There is an excellent Indonesian restaurant, the Ramed Mas, in this area, as well as a number of grill rooms along the boardwalk. For those who crave something closer to home (in spirit if not actual taste). there is a Tex-Mex place next door to the Indonesian place. for which not a single member of the pre-advance team could vouch. The Europa also boasts "real American" dishes at its own New Orleans Ribhouse, though a Louisiana-born foreign servuce officer who has dined there seemed to believe New Orleans had had its name taken in vain. AT&T service at the filing center will De through USA Direct. Standard USA Direct service in available over hotel ohones (dial 06. wait for second dial tone and then key in 122- 9111) and offered clear and quick voice communication during our stay, but balked at data transmission. Ellis Nitchen of AT&T 8310 this technical matter would be pursued and hopefully corrected. Again, that should affect only filing from the room and not from the filing center. AC is 220/240 V requiring standard сно-рлола adapter. The currency is the guilder, convertable at just more than 2-to-1 for U.S. dollars. THE SITES: Bush will arrive at Schiphol Airport, the main airport serving Amsterdam, where he will be met by Queen Beatrix and Prince Claus. Beatrix is the titular head Of state and succeeded to the throne in April 1980 on abdication of her mother. Queen Juliana. She delivers an annual statement of government policy from a raised throne in Ridderzaal, a high- ceilinged room in the parliament building where the counts of Holland once met. The motto on the throne: "Je Mainiendri' 11 OFF THE RECORD 14 FOR YOUR INFORMATION ONLY will maintain. After a 20-minute drive through the Duton countryside, along the main highway between The Haque and Amsterdam, Bush will go into a round of official meetings with Lubbers and other government leaders. On arrival at parliament. which comprises the First and Second chambers. Bush will proceed to the second-floor Treveszaal, or Truce Room, the site OT talks that led to a temporary halt to hostilities in the 80-year war (1568-1648) for independence from Spain and the room the Cabinet now meets every Fridav, for a 10-on-10 meeting. His next stop is Catshuis, the official residence of the prime minister, a large white country house with dark green trim, fronted by a pond with ducks and swans, for a working lunch at a long table in the Garden Room, which is used for Cabinet meetings in the summer and opens out to a patio and large garden/backyard. The house, by the way. is named for Jacob Cats, a Dutch lawyer, Doet and writer who built the original house on that site in the 17th century. Weather permitting, Bush and Lubbers will step out to the garden before the lunch for a photo. After lunch, Bush will motorcade 25-30 minutes to the town of Leiden for the only OPEN event of his stay in The Netherlands: a speech on shared values and American-European ties at The Pieterskerk. the Church of St. Peter, a huge cathedral built around 1500 that rises some 95 feet in the main vault. Leiden was chosen for its historical value: the Pilgrims, driven +rom England DY religious dissent, resided there for 11 years before their voyage to America in 1620. A Pilgrim Fathers Documents Center remains 10 Leiden and Bush 15 expected to be taken on a private tour of Pilgrim records and other artitacts after delivering his speech from a podium at the west wall. under the nuge pipe organ first butlt shound 1550 and reconstructed 90 years later. Alternate site: the opposite side. with his back to the choirscreen and east window. Beatrix. Lubbers, members of the American community and Council of Ministers and other official quests are excected to be on hand in an audience that could number as many as 1,500. That night, Bush will attend a state dinner at Nordeinde Palace. the Daie vellow. recently renovated "working palace" used for government offices and official functions. Up a white marble staircase (CNN's IS Wendy Walker, immortalized in the last pre-advance report and still pleasant after all these years, notes the ceiling is done in the same artistic fashion as the one in her bedroom). the Bushes will pose with Beatrix and Claus in the Balcony Room for a photo, then will move into the ballroom for dinner at one long main table and five connecting tables. The queen is expected to have a toast at the top, though there was some question as to whether coverage would be permitted. The final events in The Hague will occur at the ambassador's residence, along diplomatic row, where the artwork on the walls includes a collection of four Andy Warhol prints of none other than Queen Beatrix. Portraits of John Adams and John Qunicy Adams hand there as well. noting the fact that both served as ambassadors to The Netherlands (John Adams OFF THE RECORD 15 FOR YOUR INFORMATION ONLY assignment there in 1782 was the first of a U.S. ambassador anywhere in the world) and presidents. There will be back-to-back meetings, first in the Blue Room and then in the Green Room, with members of Lubbers' opposition and other members of the First and Second chambers. If the logistics can be worked out, Bush will address members of the American community and embassy staff in the backyard. If not, that event (the last one before heading to the airport) will be held in a small courtyard at the embassy. THE SCHEDULE: Monday, July 17: 10:30 a.m.: Arrive Schiphol - POOL of arrival ceremony. 10:45 a.m.: Depart for The Haque 11:55 a.m.: Arrive parliament for Treaty Room meeting. POOL. 12:50 p.m.: Depart for Catshuis 12:55 p.m.: Arrive for working lunch. EXPANDED POOL. 2:35 p.m.: Depart for The Pieterskerk, Leiden. 3:00 p.m.: Arrive for speech. OPEN. 4:00 p.m.: Depart for Nordeinde Palace. 4:25 p.m.: Arrive for B hours, 30 minutes private time. 7:55 p.m.: State dinner. POOL photo. Tuesday. July 18: 7:35 a.m.: Depart palace for Ambassador's Residence. 7:45 a.m.: Arrive for one-on-one (POOL) and breakfast with political leaders and parliament members POOL). 7:77 a.m.: American community greeting. POOL. Bush should arrive at Schiphol Airport (outside Amstergam) in time for a brief departure ceremony (with Beatrix present) and an 11:30 a.m. departure, which would place him DRCK at Andrews around 2 p.m. EDT. Norm Sandler/UPI Services of Mead Data Central PAGE 2 10TH STORY of Level 1 printed in FULL format. Copyright (c) 1989 The New York Times Company; The New York Times April 16, 1989, Sunday, Late City Final Edition SECTION: Section 4; Page 3, Column 1; Week in Review Desk LENGTH: 981 words HEADLINE: THE WORLD; There's a Demand for Instruction in Democracy BYLINE: By JAMES M. MARKHAM DATELINE: PARIS BODY: CAN Hungary in the 1990's pull off what Spain did in the 1970's: peacefully transform a one-party dictatorship into a parliamentary democracy? During a visit to Madrid last November, the Hungarian Communist leader, Karoly Grosz, intensely quizzed Prime Minister Felipe Gonzalez about the secrets of the Spanish democratic success story. Since then, curious Hungarian officials have been shuttling to the Spanish capital to learn more, and last week a Spanish delegation was in Budapest, discreetly proffering advice. At a time when bankrupt dictatorships are seeking exits from impasses of their own creation, would-be reformers are pondering historical models that might ease the transitions to more open societies. In Warsaw, Adam Michnik, an architect of the newly legalized Solidarity movement, says that Poland has three choices: descend into anarchy; resort to a more demagogic dictatorship with empty populist slogans, which he calls the Iranian style, or become like Spain, 'with both sides realizing that the only solution consists in a process leading to democracy.' The search for democracy blueprints is not limited to Europe. In Tunisia, the Government of President Zine al-Abidine Ben Ali has made tentative plans for a conference of specialists from countries as varied as Spain, Hungary, Mexico and the Philippines to compare experiences and draw practical lessons. In China, Communist theoreticians are studying Malaysia, Thailand and Japan for clues to building what they sometimes call ''a democracy with Asian characteristics. But Cyril Lin, an authority on East Asia who teaches at Oxford, suggests that the leaders of China, which lacks democratic traditions, merely want ''a transition from a totalitarian to an authoritarian system. Outside Asia, the Spanish model remains the most compelling one, and not only for Latin American nations like Argentina or Mexico that were once Spanish colonies. After the violent failure of heroic rebellions and upheavals in East Germany in 1953, Hungary in 1956 and Czechoslovakia in 1968, Eastern European innovators see Spain's gradualist transition to full democracy as an alternative to bold but doomed leaps to freedom. Comparisons across Europe's ideological divide are hazardous, since it is not clear that reform-minded Communists like Mr. Grosz want to run the high risks of introducing a free-wheeling parliamentary system. And when Spain began its PAGE 3 (c) 1989 The New York Times, April 16, 1989 march to democracy, it had the backing of democratic neighbors, who promised it and Portugal membership in the European Community. Poland and Hungary, by contrast, are in the Warsaw Pact and have Communist neighbors like East Germany and Czechoslovakia whose rulers are profoundly hostile to the direction they are taking. Troubled Economies In addition, Spain in 1975 was relatively prosperous, with a capitalist economy and a broad middle class. Poland is an economic basket case, and Hungary, while better off, is also saddled with debt and a Communist command economy not yet transformed by new market mechanisms. In Poland and Hungary, moreover, innovators feel that democratic institutions must be put in place rapidly in case Mikhail S. Gorbachev's reforms in the Soviet Union are defeated, or fail. Spain moved briskly to democracy: Only 19 months after Franco died in 1975 the country had its first free parliamentary elections. In 1982, the Socialists, whom Franco defeated in the Spanish Civil War, swept to power in a landslide. Mr. Walesa's chances look less promising than those of Mr. Gonzalez in 1977. Elections to a two-chamber parliament will be held in June in Poland, but Communist candidates will be guaranteed 38 percent of the seats in the lower house. A powerful new office of president, chosen by Parliament, has been created as a counterbalance to the new influence offered to the non-Communist opposition. In Hungary, where the opposition is much weaker, the Communists will retain a built-in majority in elections to be held next year. Franco's single party, the Falange, collapsed once Spaniards were given the vote. This must give Communist leaders like Mr. Grosz pause when they contemplate truly free elections. On the other hand, Spain's first democratically elected Prime Minister, Adolfo Suarez, emerged from the Falange, and today he heads a centrist party that will probably form a coalition with the Socialists after next year's elections. Paul Preston, a British expert on the Spanish transition, said one of its lessons was that ''the longer a dictatorship has lasted and the nastier it is the more likely it is that the opposition will relinquish its demands for revenge. He added, ' ' Any improvement is worth going for, and you get the kind of broad consensus that was the key in Spain. Raul Morodo, a Spanish politician and author, was more blunt. ''The key factor in the transition was fear, and fear produced the consensus,'' he said. Spaniards feared a return to the anarchic bloodletting of the civil war; they were determined not to let it happen again. King Juan Carlos feared the anti-monarchist sentiments among the newly legalized Socialists. The military feared a purge, and the left feared the military. By turning its back on old scores, and on its own blood-stained history, Spain achieved the transition. Similar fears are alive in Eastern Europe now. ' ' When you in the West think of the 1956 Hungarian revolution, you think of brave Hungarians battling Russian tanks, said an East German Communist in a moment of candor. 'We think of Communists being strung up from the lamp posts. EXIS® NEXIS® EXIS® NEXIS Services of Mead Data Central PAGE 4 (c) 1989 The New York Times, April 16, 1989 Yet Eastern Europe is creating transition models of its own. ''The Polish model?'' laughed Eugeniusz Smolar, head of the British Broadcasting Corporation's Polish section. ''It's that you can strangle the Government and prove to the Communists that they are not able to govern without you.'' GRAPHIC: Inaugurating democracy: King Juan Carlos of Spain congratulating Felipe Gonzalez after he was sworn in as Prime Minister in 1982 (United Press International) SUBJECT: HUNGARY -INTERNATIONAL RELATIONS- SPAIN NAME: MARKHAM, JAMES M GEOGRAPHIC: HUNGARY; SPAIN diplomats But in Paris, although lauu- U.S. and WP ing the elections and the increase in and Who tices in many countries. A28 WEDNESDAY, JUNE 14, 1989 free speech in the Soviet Union, Romania Sealing Border R Poland and Hungary, have urged It will also gauge the success of to ma BUDAPEST-Romania is stringing barbed in a wire and digging antivehicular ditches along its Hungarians to Honor Havel U. border with Hungary in what observers inter- Sharp Opposition Rhetoric Unio pret as a move to stem the flow of defections. rights serving four months for supporting The official Hungarian news agency MTI The Associated Press opposition rallies. At the time he comp quoted border guards as saying that a seven- Opens Talks on Hungary Vote BUDAPEST - A cultural cen- was sentenced, thousands of Hun- many foot fence has been erected along 90 percent ter will stage a literary evening on Tuesday featuring excerpts from garian students staged a protest in ping have & of the border. By Imre Karacs men, now officially described as works by Vaclav Havel, the Voeroesmarty Square, in down- exit ai Several thousand Romanians of Hungarian Special to The Washington Post "martyrs" and "victims of a political Czechoslovak playwright who is town Budapest. The press agency said the literary many descent have fled across the border in recent banned in his native country, the months claiming that they were being perse- BUDAPEST, June 13-Ignoring show trial," will be attended by gov- evening was being jointly spon- "If ernment officials. state press agency MTI reported sored by the Association of Hun- cuted by Romanian authorities. pleas for a gentle start in talks with wher The result of the defeat of the Monday. Earlier this year, Hungarian garian Writers, Hungarian radio their the ruling Communist Party and an uprising was an "uncompetitive and the Kossuth Club. It will fea- Abr: newspapers sharply criticized the ture works by Mr. Havel that have GI Pleads Guilty to Spy Charge assortment of Communist-led or- economy, an impotent society, mass jailing of Mr. Havel, who was re- N not yet appeared in Hungarian. FULDA, West Germany-A U.S. service- ganizations, Hungary's opposition poverty and demoralization", Konya cently released from prison after cize coalition used its first live appear- man who was once described as a model sol- said. "The crisis is the crisis of the ma' ance on prime-time television to system. It cannot be resolved with- ob launch a scathing attack on the "dic- in the present structure of power." cel tatorship" of the past 40 years. fr Seizing communist terminology, The opening round of talks, Konya said "people's power" would aimed at establishing ground rules have to be recovered by free elec- for the first multiparty elections tions. "Power is based on people's since the Communists consolidated sovereignty," Konya said. "The peo- power in 1948, ended today in Bu- ple's will must be expressed at dapest's parliament building. The open-ended, free elections." parliamentary elections are due no Mindful of recent events in Chi- later than mid-1990. na, the opposition is eager to force "The tasks of three unfulfilled the party to relinquish its grip over Photo Copy Preservation Hungarian revolutions will now the security apparatus. "The armed have to be carried out by peaceful forces must not be said to solve po- means," said Imre Konya, the litical conflicts under any pretext," spokesman of the Opposition Round Konya said. He called for the dis- Table, as the coalition calls itself. bandment or strict control of the "On June 16, our nation remembers country's various security forces. the most recent heroic event. The "Only this way can the fear living in revolution of 1956 was crushed by people be loosened. Only this way the Soviet army," can the silenced-not silent-ma- On Friday, June 16, Hungary will jority become a community of po- re-inter Imre Nagy, the prime min- litically active citizens." ister executed after the anti-Soviet uprising, and four of his closest col- leagues. The funeral of the five I Services of Mead Data Central PAGE 5 16TH STORY of Level 1 printed in FULL format. Copyright (c) 1989 The New York Times Company; The New York Times January 23, 1989, Monday, Late City Final Edition SECTION: Section A; Page 1, Column 4; Foreign Desk LENGTH: 1646 words HEADLINE: VOICES OF THE PARTY FAITHFUL: SEARCHING FOR A PATH IN A NEW ERA; Across a Divided Europe, An Ideology Under Siege SERIES: COMMUNISM NOW: WHAT IS IT? - In the Words of the Faithful - Second of three reports BYLINE: By JAMES M. MARKHAM, Special to the New York Times DATELINE: PARIS, Jan. 22 BODY: For a diminishing band of Communist believers in Europe, Mikhail S. Gorbachev - a riveting prophet, a Russian Jeremiah - holds out the promise of revitalizing a decaying system of belief. But the scattered Communist faithful no longer share a single set of beliefs. On both sides of Europe's ideological divide, Communists still share a dogged faith in the future. When confronted with the desolate catalogue of repression and penury that has flowed from the Bolshevik Revolution over the last seven decades, the convinced Communist in Prague or Paris counters that it will all be redeemed by a happier tomorrow. European Communists cultivate the comforting long view, the ability to see the bewildering twists and turns of history not as capricious riddles but as elements of a larger and ultimately benevolent design. They will recall that 19th-century capitalism was a brutal affair, enriching and enfranchising a few, exploiting many others, and that if capitalism turned more benign this century it was out of the need to compete with Communism's aspirations. The capitalist West is often seen as rich and dynamic, but unjust and decadent, too. But Mr. Gorbachev would seem to mark the end of the conviction that Communism will triumph through cataclysmic upheaval. Rather, the historical race between capitalism and Communism has been given an open-ended extension; for many, the goal is nowhere as important as the route taken. Many Roads, Many Views The routes have become confoundingly numerous. Correspondents of The New York Times interviewed 20 Communists throughout Europe, East and West. From the voices in the interviews, it is hard to tell what an Italian Communist, hardly distinguishable in ideology and impulses from a Scandinavian Social Democrat, has in common with an East German who warns direly that parliamentary democracy could lead to civil war. [Eleven voices, pages A10-A11.] Innovators in countries like Hungary are trying to disentangle themselves from the dead weight of EXIS® NEXIS XIS® KIS Services of Mead Data Central PAGE 6 (c) 1989 The New York Times, January 23, 1989 Stalinism and are flirting with political pluralism, while in Rumania, ideologists sing the praises of a capricious monarch-dictator. In Yugoslavia, a disillusioned Slovenian Communist suggests that Sweden might as well be considered a Communist state, since ''Communism''' has virtu-ally no meaning any more. The idea of distinctly national roads to Communism has been accentuated since Mr. Gorbachev took over in 1985. There is no universally accepted ideological canon anymore. - although the young Karl Marx and the Italian Antonio Gramsci are studied by Communists seeking democratic roots in their own movements. So as Mr. Gorbachey borrows some of the central elements of ''bourgeois democracy'' - market mechanisms and, at least in limited form, parliamentary representation -he would seem to be flirting with heresy. Yet many of the Communists interviewed said they thought he had taken a bold and long overdue turn on the dialectical highway. Disruptive but Invigorating This verdict is far from unanimous. Hard-line Communists in East Germany or Rumania see their positions threatened by the Gorbachev experiment. Western European Communists like Georges Marchais, the French party chief, don't want too much glasnost shining on their tightly run bureaucracies. East and West, Mr. Gorbachev is a disruptive, if invigorating, influence. Izvestia, the official Government newspaper, has criticized the French Communists for being too stodgy, and in Portugal and West Germany, party dissidents have challenged leaders, hoisting the banner of Gorbachevism. Jiri Hajek, who was in Alexander Dubcek's Prague Spring Cabinet in 1968, said he still believed in socialism's dreams of security and rights for all, despite Stalin and Stalin's successors. Asked if he was still a Marxist, he answered: ''For me, Marxism is what Newton's physics is for a mathematician. Maybe Gorbachev with his changes is a kind of Einstein.' But in the fast-moving societies of the capitalist West, Marxism has lost the intellectual prestige it attained after the war through thinkers like Sartre. It is quaintly archaic today to be a Marxist in Paris. Non-Communists may regard the Soviet Union as a political and economic catastrophe, morally disqualified by Stalinism. But with history as a yardstick, the Communist is quick to recall that Russia was a primitive, predominantly agricultural country before the Bolsheviks seized power, and that Stalin frog-marched it into the industrial ranks. ' ' I know what it's like to try to build socialism on 14 ounces of bread,' said Enrique Lister, a Spaniard who helped dig the Moscow subway. ''Even today my opinion about Stalin is that he'll go down in history as a great revolutionary.' Forgiving and Explaining Much Ambivalence toward the Stalinist legacy -yes, there was terror, but it served the larger goal of laying the groundwork of socialism -appears to be an inevitable component of the Communist belief system. So too is the habit of PAGE 7 (c) 1989 The New York Times, January 23, 1989 confession, which discounts ''errors'' like the Soviet-led invasion of Hungary in 1956 as part of the revolutionary learning process. Asked if they had ever been ashamed to be Communists, party members on both sides of the Yalta divide said yes. Older ones recalled the shock of Nikita Khrushchev's speech in 1956 denouncing Stalin's tyranny; younger Communists, notably in the West, tended to cite the 1968 invasion that stamped out Czechoslovakia's quest for ''Communism with a human face.'' But elsewhere the explaining-away habit is deeply ingrained. The nepotism of North Korea is brushed off and the country's economic gains are extolled; likewise, the attempt by Mao Zedong's wife, Jiang Qing, to take power in China is lightly dismissed with the statement that the party found and fixed its own mistakes. East German Communists portray the Berlin wall as a defense against subversive depredations from the West. Czechoslovak party members can in the same breath endorse the imperative for democratic change and denounce Dubcek for opening the door to 'reaction'' in 1968. In many ways, it would seem easier to be a Communist in Western Europe, a selfless toiler for the millennium, than in Eastern Europe, where Communists are a privileged caste presiding over a ramshackle system that has failed to deliver prosperity, not to mention political freedom. In the West, the Apostolic View In the West, Communists face political hostility but draw comfort from a circle of comrades locked in the same uphill struggle. They see themselves as apostles of a higher moral order, fighting for the underdog against an exploitative system. By contrast, party members in Eastern Europe are often despised by the people they govern. In Communist Europe, the 'workers'' -for whom the state nominally exists - frequently feel alienated and embittered, and in Poland they have fueled a revolt. But in capitalist societies, Communist convictions can give blue-collar workers a sense of dignity, purpose and incorruptibility. In a Paris suburb, Jean-Pierre Quilgars, a 33-year-old machine-tool worker, said the party had 'brought me friends, a way to reflect on both political and personal life.' ''It has permitted me to have confidence in myself and believe in myself, he said. ''I couldn't think of not being a Communist. It's my life. Bickering Among the Believers Despite such dedicated followers, Western Communist parties continue to lose electoral support as blue-collar jobs are eliminated, shrinking the proletariat that Marx predicted would rise up to overthrow capitalism. In Spain, a party that spearheaded the underground struggle against Franco collapsed into a squabbling sect in the decade after the dictator's death; other parties operate at the outer margins of obscurity. In the late 1970's, the patchwork doctrine of 'Eurocommunism'' seemed to be covering the ancient rift between Communism and Social Democracy, but it fell apart, largely because of resistance from the French Communist Party. Today, EXIS® NEXIS® LEXIS® NEXIS® Services of Mead Data Central PAGE 8 (c) 1989 The New York Times, January 23, 1989 French Communists say they do not trust Socialists, that Socialists want to manage capitalist society and Communists want to transform it. Martin Jacques, editor of the British Communist Party's lively journal of theory, Marxism Today, speculates that his own party may not have a future as an independent organization. But he savors the paradox that Marxism Today is at the same time exercising an enormous influence on the autonomous British Labor Party, which, he says, ''is not very good at thinking.' In decline, Communists draw hope, and solace, from Communist-inspired struggles in the third world; the training of cadres from the third world is still a major task in an ill-defined global subdivision of labor. One of the proudest legacies of the European Communists is the justified conviction that they played a vital role in accelerating the decolonization of Africa and Asia. Nostalgia for the Days of Zeal Even so, many Communists seem to have lost their missionary zeal, and the humiliation of Afghanistan has contributed to a reluctance to export revolution to the third world. Mr. Gorbachev conveys the disquieting impression that the Communist parties of Western Europe and the third world do not figure very highly on his list of priorities. There is a gnawing sense that the great deeds and struggles lie in the past, not in the future. A poignant note of nostalgia was struck by former Communists like Daniele Billitteri, a 36-year-old editor in Sicily. ''I have suffered so many disappointments, said Mr. Billitteri. ''But I think that having been a committed Communist has given me something that no one will ever be able to take away from me, something that I believe is important for any man: a capacity for indignation and rebellion. NEXT: Third world and the United States. TYPE: Series; Interview SUBJECT: COMMUNISM (THEORY AND PHILOSOPHY); SURVEYS AND SERIES NAME: MARCHAIS, GEORGES; MARKHAM, JAMES M; GORBACHEV, MIKHAIL S GEOGRAPHIC: EUROPE; EUROPE, EAST; EUROPE, WEST; UNION OF SOVIET SOCIALIST REPUBLICS (USSR) LEXIS® NEHI