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Originally Processed With FOIA(s): FOIA Number: S; 1998-0194-F 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: Davis, Mark, Files Subseries: Subject File, 1989-1991 OA/ID Number: 13872 Folder ID Number: 13872-011 Folder Title: Karl Marx University-Hungary, 7/13/89 [2] Stack: Row: Section: Shelf: Position: G 19 2 6 5 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 National Center, Parliament and the Central Committee. Many great Hungarian leaders have also moved along this same route, among them Miklos (MEEK-losh) Nemeth (NAY-met) 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). ((PAUSE)) 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 a generation waited to honor Imre (EEMH-ray) Nagy's (NUDGE'S) courage; may a hundred generations revere it. 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, with its proud stock exchange and great opera; a time when Europe's first electric subway ran underneath the handsome shops of Andrassy Avenue. A city that rivaled Paris in its splendor Vienna in its music London in its literature. A center of learning that enlightened the world, and gave America one kind of genius in Joseph Pulitzer, and another in Bela Bartok. But for decades, this great city, this great nation, so central to the continent in every respect, was torn from Europe and the West. Today Hungary is opening again to the West -- becoming a leading light in European culture. I see people in motion. I see color and creativity replacing grey conformity. The atmosphere of Hungary is electric, alive with optimism. Your people and your leaders -- government and opposition alike -- are not afraid to break with the past, to act in the spirit of truth. And what better example of this could there be than one simple fact: Karl Marx University has dropped Das Kapital from its required reading list 3 Historians say that Marxism arose out of a humane impulse. But Karl Marx traced only one thread of human existence, and missed the rest of the tapestry -- the colorful and varied tapestry of civilization. Marx regarded Man as a hapless being shaped by impersonal economic forces. 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 daily newspaper is now sold on the streets. Commercial radio and television stations, financed by American companies, will soon broadcast everything from the news to the pop music of Huey Lewis and the News. Even more dramatic, Radio Free Europe is opening its first Budapest bureau. Along your border with Austria, the ugly symbol of Europe's division and Hungary's isolation is coming down, as the barbed wire fences are rolled into bales. 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 an early sign that Europe's division is nearing an end. And as they leave, let the Soviet leaders know they have 4 everything to gain, and nothing to lose or fear, from peaceful change. We can work together to move beyond containment, beyond the Cold War. But all of these developments, as significant as they are, pale before the fact that Hungary is at the threshold of great and historic change. You are writing a new constitution -- a Hungarian Rights of Man that will sanction democratic, multi- party elections. This is possible because brave men and women have formed opposition parties. And this is possible because Hungarian leaders are showing the ultimate political courage -- the courage to submit their names before the people. But to succeed in reform, you will need partners -- partners to help promote lasting change in Hungary. I am here to offer Hungary the partnership of the United States of America. Three vital spheres stand, out in our partnership -- economics, democratic and cultural exchange, and the environment. INVESTMENT IN HUNGARY The United States believes in the acceleration of change, not in its delay. So this our guiding principle -- the United States will offer assistance not to prop up the status quo, but to propel reform. Of course, the dead weight of the past still burdens Hungarian enterprise. There are remnants of the Stalinist economy -- huge, inefficient industrial plants; the bewildering 5 price system no one understands; the massive subsidies that cloud economic decisions -- all of this slows what you could otherwise achieve. It's an economic Rubik's Cube that defies solution. To make the transition to a productive economy will test your mettle as a people. The prices of some commodities may rise. Some inefficient factories will close. But the Hungarian government has already started to leave the business of running shops to shopkeepers and of farms to farmers. And the creative drive of the people, once unleashed, will create a momentum of its own. This will bring you a greater treasure than the riches you will create. It will give each of you control over your destiny a Hungarian destiny. Just look to the West of the Danube -- your European neighbors are forming a single market. Soon you will have the chance to trade with this new economic colossus. But, as I said, the United States will also be your partner in this transformation to a successful competitive economy. I am here to announce the following measures. First, as you know, I will propose at the Paris Economic Summit the formation of a Consortium for Poland and Hungary, to back your reforms with economic and technical assistance programs from the Summit partners. Of course, our program for Hungary will be targeted to your needs. Second, I will ask the U.S. Congress to authorize a $25 million grant to establish a Hungarian-American Enterprise 6 Foundation, a source of new capital to invigorate the Hungarian private-sector. Third, once your Parliament passes the new emigration legislation proposed by your Council of Ministers, I will inform our Congress that Hungary is in full compliance with our 1974 Trade 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 will open the door to the largest single market in the world. In the United States, the vibrancy and strength of our economy relies on the creativity of millions of small businesses. Therefore, I am pleased to note our fifth measure, the formation of the Hungarian Enterprise Group, which will match 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. The American investment company, Bear- Stern, has already 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 7 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 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 also hope this visit leads to a wider exchange between East and West, so our scientists, our artists and our environmentalists can learn from one another So that our soldiers and statesmen discuss peace and our students discuss the future. ))) ( (PAUSE) ) In such exchanges, we want to help you in your quest for a new beginning as a democratic Hungary. So 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 legal experts, among community leaders, educators and young people. We are creating dozens of fellowships to enable Hungarians to study at American universities. And we will fund endowed chairs in American studies at your universities and books -- many thousands of them -- to fill the shelves of your American Management Institute and the libraries of schools and universities across Hungary. 8 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. 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 open the global market to more Hungarians, I am pleased to announce that the Peace Corps will, for the first time, operate in a European country. And our Peace Corps instructors will come to Budapest and all 19 counties to teach English. ENVIRONMENTAL INITIATIVE To learn a language, to start a business, or to work for a candidate 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. 9 ( (Substance to come)) CONCLUSION In our economic, cultural and environmental relations, we have much to share and learn from each other. The United States is especially determined to stand by Hungary as you meet an enormous challenge. No Communist nation has yet attempted what Hungary is already doing -- to build democracy and a free market. 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. We do 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 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 10 without economic rights. Beijing practices limited economic freedom, but without political liberty. Where are political and economic liberty peacefully advancing together? In Hungary. The people of Hungary know it is not enough to let men and women purchase what they want or cast a symbolic vote. They must be allowed to say what they believe. They must be allowed to choose their government. Limited freedom, whether it is economic or political, will not provide sufficient 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. # # # Hungaran Anecdotal Information: #1. Student Elections held at the end of the school year. Student Dear + Student Body elected at end of year to serve 3 day term - only occupy offices for one day Nothing of substance transpires The elections are a tradition and serve as a method of keeping the ideas of campaigning + elections alive in a Communist atmosphere. -political awareness 2. Karl Mary University's initials are the same as the Hungarian Royal University -MKE Because of how liberal Karl Marx Univ. is, the Hungariens think the name should be changed to Hungarian Royal University A bonus point IS that non of T-shirts, stickers, banner, etc. would have to be reprinted #3. Shandor (Alexander) Petofi National Poet - -wrote athen which every Hungarian can recite At the beginning of the revolution he jumped up on the steps of the national musen and recited the 12 pts from the Austriens which became the battle cry In 1840 - march Is - killed battle of uncertain denise 4. Prince Ference Rakoczi II National hero in 18th century, wisual because he was a nobleman He used to fight using castles as forts, the enemy ended up destroying all the Castle trying to fight him which is why there are no castles in Hungary today. Transaualian Prince #5 Arpad Father of Hungrary Led the tribes to the area; the slaws acknowledged by Slaws when slows gave Apad a pail of water+ a showel of dirt signifying their independence as a "nation" 896 BC) #b. St. Steven 1 King Steven Responsible for uniting tribes into a nation. made Hungary a permanent part of Westers Europe. The Pope crowned him King and crown is still the symbol of Hungary. It shows up in a great deal of European artwork and is recognizable by the bent Crown. Sticky to talk about crown. #7. Count Szecny Founded Library. "Patron SAINT' of the intellectuals. #8. Examples of Hungary's golden ea. 100 yrs. ago Almost all the buildings in Pest were built in 1870 - 1940 Two of the most successful enterprises in the European as well as world were founded: Ganz mavag + Manfred Wienz Great examples of hungarian engineering business. who However government tookover these industries in '56 and now they are failing to the point of bankruptcy. Administration of Ronald Reagan, 1988 May 31 I ever held, Governor of California. Yes, I of standing in a line outside a prison when had served as president of my union, the someone in the crowd recognizes her as a In the last few years, freedom for the arts Remarks and a Question-and-Answer Screen Actors Guild. Yes, in that role I'd led well-known poet. She continues, "Then a has been expanded in the Soviet Union. a successful strike by the union against the Session With the Students and Faculty woman standing behind me, whose lips Some poems, books, music, and works in at Moscow State University studios. And, yes, I'd campaigned actively were blue with cold and who, naturally other fields that were once banned have for a number of candidates for office, in- enough, had never even heard of my name, May 31, 1988 been made available to the public; and cluding candidates for President. But I was emerged from that state of torpor common some of those artists who produced them still known primarily as an actor. to us all and, putting her lips close to my The President. Thank you, Rector Lo- In the movie business, actors often get have been recognized. Two weeks ago, be- ear-there everyone spoke in whispers- gunov, and I want to thank all of you very what we call typecast, that is, the studios cause of the work of the Writers Union, the asked me, 'And could you describe this?' much for a very warm welcome. It's a great come to think of you as playing certain first step was taken to make the Pasternak pleasure to be here at. Moscow State Uni- And I answered her, 'I can.' Then some- kinds of roles; so those are the kinds of roles home at Peredelkino into a museum. In the thing vaguely like a smile flashed across versity, and I want to thank you all for turn- they give you. And no matter how hard you what once had been her face." meantime, some artists in exile-the stage ing out. I know you must be very busy this try, you just can't get them to think of you director Yuri Lubimov, for example-have week, studying and taking your final exami- That exchange-"can you describe. this?" in any other way. Well, politics is a little been permitted to return and to work, and "I can"-is at the heart of acting as it is of nations. So, let me just say zhelayu vam like that, too. So, I've had a lot of time and artists who are here have been allowed a poetry and of so many of the arts. You.get uspekha [I wish you success]. Nancy reason to think about my role not just as a greater range. inside a character, a place, and a moment. couldn't make it today because she's visiting citizen turned politician but as an actor You come to know the character in that We in the United States applaud the new Leningrad, which she tells me is a very turned politician. In looking back, I believe that acting did instant not as an abstraction, one of the thaw in the arts. We hope to see it go fur- beautiful city, but she, too, says hello and people, one of the masses, but as a particu- ther. We hope to see Mikhail Baryshnikov wishes you all good luck. help prepare me for the work I do now. lar person-yearning, hoping, fearing, and Slava Rostropovich, artists Mrs. Reagan Let me say it's also a great pleasure to There are two things, two indispensable les- loving-a face, even what had once been a and I have seen perform in Washington, once again have this opportunity to speak sons, that I've taken from my craft into public life. And I hope you won't think it face, apart from all others; and you convey perform again in Moscow. We hope to see directly to the people of the Soviet Union. excessively opportune if I use the words of that knowledge. You describe it, you de- the works of Aleksandr Solzhenitsyn pub- Before I left Washington, I received many scribe the face. Pretty soon, at least for me, lished in the land he loves. And we hope to heartfelt letters and telegrams asking me to a Soviet filmmaker to explain one of them. it becomes harder and harder to force any see a permanent end to restrictions on the carry here a simple message, perhaps, but He was, after all, one of the world's greatest member of humanity into a straightjacket, creativity of all artists and writers. We want also some of the most important business of filmmakers, and so, like so many of your artists, indeed, like so many of you, belongs into some rigid form in which you all this not just for your sake but for our own. this summit: It is a message of peace and good will and hope for a growing friendship in a broader sense to all of humanity. expect to fit. In acting, even as you develop We believe that the greater the freedoms in It was during the production of "Ivan the an appreciation for what we call the dra- other countries the more secure both our and closeness between our two peoples. Terrible" when Eisenstein noted that in matic, you become in a more intimate way own freedoms and peace. And we believe As you know, I've come to Moscow to making a film, or in thinking through any less taken with superficial pomp and cir- that when the arts in any country are free meet with one of your most distinguished detail of it, which to my mind would in- cumstance, more attentive to the core of to blossom the lives of all people are richer. graduates. In this, our fourth summit, Gen- the soul-that part of each of us that God eral Secretary Gorbachev and I have spent clude the acting of a part, in his words, William Faulkner said of poets-although "The most important thing is to have the holds in the hollow of his hand and into many hours together, and I feel that we're he could have been speaking of any of the which he breathes the breath of life. And getting to know each other well. Our dis- vision. The next is to grasp and hold it. You arts-it is the poet's privilege to help man you come to appreciate what another of cussions, of course, have been focused pri- must see and feel what you are thinking. endure by lifting his heart, by reminding marily on many of the important issues of You must see and grasp it. You must hold your poets, Nikolay Gumilev, meant when Hus. he wrote that "The eternal entrance to him of the courage and honor and hope and the day, issues I want to touch on with you and fix it in your memory and senses. And God's paradise is not closed with seven dia- pride and compassion and pity and sacrifice in a few moments. But first I want to take a you must do it at once." To grasp and hold which have been the glory of our past. The little time to talk to you much as I would to a vision, to fix it in your senses-that is the mond seals. It is a doorway in a wall aban- poet's voice need not merely be the record any group of university students in the very essence, I believe, of successful leader- doned long ago-stones, moss, and nothing ship not only on the movie set, where I more." of man. It can be one of the props, the United States. I want to talk not just of the pillars, to help him endure and prevail. realities of today but of the possibilities of learned about it, but everywhere. And by As I see it, political leadership in a de- tomorrow. the way, in my many dealings with him mocracy requires seeing past the abstrac- Thank you for having me here today and for sharing your thoughts with me, and God Standing here before a mural of your rev- since he became General Secretary, I've tions and embracing the vast diversity of found that Mr. Gorbachev has the ability to humanity and doing it with humility, listen- bless you all. olution, I want to talk about a very different revolution that is taking place right now, grasp and hold a vision, and I respect him ing as best you can not just to those with for that. Note: The President spoke at 1:44 p.m. in quietly sweeping the globe without blood- high positions but to the cacophonous The second lesson I carried from acting the dining room at the A. Fadeyev Central shed or conflict. Its effects are peaceful, but voices of ordinary people and trusting those they will fundamentally alter our world, into public life was more subtle. And let me millions of people, keeping out of their way, House of Men of Letters. He was introduced shatter old assumptions, and reshape our again refer to a Soviet artist, a poet-again, not trying to act the all-wise and all-power- by Vladimir Vasilievich Karpov, first secre- lives. It's easy to underestimate because it's one of the world's greatest. At the begin- ful, not letting government act that way. tary of the board of the U.S.S.R. Writer's not accompanied by banners or fanfare. It's ning of "Requiem," Anna Akhmatova writes And the word we have for this is freedom. Union. A tape was not available for verifi- been called the technological or informa- cation of the content of these remarks. tion revolution, and as its emblem, one 702 703 might take the tiny silicon chip, no bigger monosov, knew that. "It is common knowl- forehead, he becomes bright and clever. will see children being taught the Declara- than a fingerprint. One of these chips has edge," he said, "that the achievements of And I've been trying to figure out where tion of Independence, that they are en- more computing power than a roomful of science are considerable and rapid, particu- the angel kissed you so that you should sit dowed by their Creator with certain un- old-style computers. larly once the yoke of slavery is cast off and there for so long and do nothing." [Laugh- As part of an exchange program, we now alienable rights-among them life, liberty, replaced by the freedom of philosophy." ter] have an exhibition touring your country and the pursuit of happiness-that no gov- You know, one of the first contacts between We are seeing the power of economic that shows how information technology is ernment can justly deny; the guarantees in your country and mine took place between freedom spreading around the world. Places transforming our lives-replacing manual their Constitution for freedom of speech, Russian and American explorers. The Amer- such as the Republic of Korea, Singapore, labor with robots, forecasting weather for freedom of assembly, and freedom of reli- icans were members of Cook's last voyage Taiwan have vaulted into the technological farmers, or mapping the genetic code of gion. on an expedition searching for an Arctic era, barely pausing in the industrial age DNA for medical researchers. These micro- Go into any courtroom, and there will passage; on the island of Unalaska, they along the way. Low-tax agricultural policies computers today aid the design of every- came upon the Russians, who took them in, in the sub-continent mean that in some preside an independent judge, beholden to thing from houses to cars to spacecraft; they years India is now a net exporter of food. no government power. There every defend- and together, with the native inhabitants, even design better and faster computers. Perhaps most exciting are the winds of ant has the right to a trial by a jury of his held a prayer service on the ice. They can translate English into Russian or The explorers of the modern era are the change that are blowing over the People's peers, usually 12 men and women- enable the blind to read or help Michael entrepreneurs, men with vision, with the Republic of China, where one-quarter of common citizens; they are the ones, the Jackson produce on one synthesizer the the world's population is now getting its only ones, who weigh the evidence and sounds of a whole orchestra. Linked by a courage to take risks and faith enough to network of satellites and fiber-optic cables, brave the unknown. These entrepreneurs first taste of economic freedom. At the decide on guilt or innocence. In that court, and their small enterprises are responsible same time, the growth of democracy has the accused is innocent until proven guilty, one individual with a desktop computer and become one of the most powerful political and the word of a policeman or any official a telephone commands resources unavail- for almost all the economic growth in the movements of our age. In Latin America in has no greater legal standing than the word able to the largest governments just a few United States. They are the prime movers of the technological revolution. In fact, one the 1970's, only a third of the population of the accused. years ago. Like a chrysalis, we're emerging from the of the largest personal computer firms in lived under democratic government; today Go to any university campus, and there the United States was started by two col- over 90 percent does. In the Philippines, in you'll find an open, sometimes heated dis- economy of the Industrial Revolution-an lege students, no older than you, in the the Republic of Korea, free, contested, cussion of the problems in American society economy confined to and limited by the democratic elections are the order of the and what can be done to correct them. Earth's physical resources-into, as one garage behind their home. Some people, day. Throughout the world, free markets Turn on the television, and you'll see the economist titled his book, "The Economy in even in my own country, look at the riot of are the model for growth. Democracy is the legislature conducting the business of gov- Mind," in which there are no bounds on experiment that is the free market and see standard by which governments are meas- ernment right there before the camera, de- human imagination and the freedom to only waste. What of all the entrepreneurs ured. bating and voting on the legislation that create is the most precious natural resource. that fail? Well, many do, particularly the We Americans make no secret of our will become the law of the land. March in Think of that little computer chip. Its value successful ones; often several times. And if belief in freedom. In fact, it's something of any demonstration, and there are many of isn't in the sand from which it is made but you ask them the secret of their success, a national pastime. Every 4 years the Amer- them; the people's right of assembly is guar- in the microscopic architecture designed they'll tell you it's all that they learned in ican people choose a new President, and anteed in the Constitution and protected by into it by ingenious human minds. Or take their struggles along the way; yes, it's what 1988 is one of those years. At one point the police. Go into any union hall, where the example of the satellite relaying this they learned from failing. Like an athlete in there were 13 major candidates running in the members know their right to strike is broadcast around the world, which replaces competition or a scholar in pursuit of the the two major parties, not to mention all protected by law. As a matter of fact, one of thousands of tons of copper mined from the truth, experience is the greatest teacher. the others, including the Socialist and Lib- the many jobs I had before this one was Earth and molded into wire. In the new And that's why it's so hard for govern- ertarian candidates-all trying to get my being president of a union, the Screen economy, human invention increasingly ment planners, no matter how sophisticat- job. About 1,000 local television stations, Actors Guild. I led my union out on strike, makes physical resources obsolete. We're ed, to ever substitute for millions of individ- 8,500 radio stations, and 1,700 daily news- and I'm proud to say we won. breaking through the material conditions of uals working night and day to make their papers-each one an independent, private But freedom is more even than this. existence to a world where man creates his dreams come true. The fact is, bureaucra- enterprise, fiercely independent of the gov- Freedom is the right to question and own destiny. Even as we explore the most cies are a problem around the world. ernment-report on the candidates, grill change the established way of doing things. advanced reaches of science, we're return- There's an old story about a town-it could them in interviews, and bring them togeth- It is the continuing revolution of the mar- ing to the age-old wisdom of our culture, a be anywhere-with a bureaucrat who is er for debates. In the end, the people vote; ketplace. It is the understanding that allows wisdom contained in the book of Genesis in known to be a good-for-nothing, but he they decide who will be the next President. us to recognize shortcomings and seek solu- the Bible: In the beginning was the spirit, somehow had always hung on to power. So But freedom doesn't begin or end with tions. It is the right to put forth an idea, and it was from this spirit that the material one day, in a town meeting, an old woman elections. Go to any American town, to take scoffed at by the experts, and watch it catch abundance of creation issued forth. got up and said to him: "There is a folk just an example, and you'll see dozens of fire among the people. It is the right to But progress is not foreordained. The key legend here where I come from that when churches, representing many different be- dream-to follow your dream or stick to is freedom-freedom of thought, freedom a baby is born, an angel comes down from liefs-in many places, synagogues and of information, freedom of communication. your conscience, even if you're the only one heaven and kisses it on one part of its body. mosques-and you'll see families of every The renowned scientist, scholar, and found- in a sea of doubters. Freedom is the recog- If the angel kisses him on his hand, he be- conceivable nationality worshiping togeth- ing father of this university, Mikhail Lo- nition that no single person, no single au- comes a handyman. If he kisses him on his er. Go into any school room, and there you thority or government has a monopoly on 704 705 May 31 / Administration of Ronald Reagan, 1988 Administration of Ronald Reagan, 1988 / May 31 the truth, but that every individual life is on human freedom. It comes, not from the infinitely precious, that every one of us put literature of America, but from this country, all life, which is faith. Such change will lead on this world has been put there for a It's my fervent hope that our constructive from one of the greatest writers of the 20th to new understandings, new opportunities, reason and has something to offer. cooperation on these issues will be carried century, Boris Pasternak, in the novel "Dr. to a broader future in which the tradition is America is a nation made up of hundreds on to address the continuing destruction of Zhivago." He writes: "I think that if the not supplanted but finds its full flowering. of nationalities. Our ties to you are more beast who sleeps in man could be held conflicts in many regions of the globe and That is the future beckoning to your gen- than ones of good feeling; they're ties of that the serious discussions that led to the down by threats-any kind of threat, eration. kinship. In America, you'll find Russians, Ar- whether of jail or of retribution after At the same time, we should remember Geneva accords on Afghanistan will help menians, Ukrainians, peoples from Eastern death-then the highest emblem of human- that reform that is not institutionalized will lead to solutions in southern Africa, Ethio- Europe and Central Asia. They come from ity would be the lion tamer in the circus always be insecure. Such freedom will pia, Cambodia, the Persian Gulf, and Cen- every part of this vast continent, from tral America. with his whip, not the prophet who sacri- always be looking over its shoulder. A bird every continent, to live in harmony, seeking ficed himself. But this is just the point- on a tether, no matter how long the rope, I have often said: Nations do not distrust a place where each cultural heritage is re- what has for centuries raised man above the can always be pulled back. And that is why, each other because they are armed; they spected, each is valued for its diverse beast is not the cudgel, but an inward in my conversation with General Secretary are armed because they distrust each other. strengths and beauties and the richness it music-the irresistible power of unarmed Gorbachev, I have spoken of how important If this globe is to live in peace and prosper, brings to our lives. Recently, a few individ- truth." it is to institutionalize change-to put guar- if it is to embrace all the possibilities of the uals and families have been allowed to visit relatives in the West. We can only hope The irresistible power of unarmed truth. antees on reform. And we've been talking technological revolution, then nations must that it won't be long before all are allowed Today the world looks expectantly to signs together about one sad reminder of a divid- renounce, once and for all, the right to an of change, steps toward greater freedom in ed world: the Berlin Wall. It's time to expansionist foreign policy. Peace between to do so and Ukrainian-Americans, Baltic- the Soviet Union. We watch and we hope as remove the barriers that keep people apart. nations must be an enduring goal, not a Americans, Armenian-Americans can freely I'm proposing an increased exchange pro- tactical stage in a continuing conflict. visit their homelands, just as this Irish- we see positive changes taking place. There are some, I know, in your society who fear gram of high school students between our I've been told that there's a popular song American visits his. that change will bring only disruption and countries. General Secretary Gorbachev in your country-perhaps you know it- Freedom, it has been said, makes people discontinuity, who fear to embrace the mentioned on Sunday a wonderful phrase whose evocative refrain asks the question, selfish and materialistic, but Americans are hope of the future. Sometimes it takes faith. you have in Russian for this: "Better to see "Do the Russians want a war?" In answer it one of the most religious peoples on Earth. Because they know that liberty, just as life It's like that scene in the cowboy movie something once than to hear about it a hun- says: "Go ask that silence lingering in the itself, is not earned but a gift from God, "Butch Cassidy and the Sundance Kid," dred times." Mr. Gorbachev and I first air, above the birch and poplar there; be- they seek to share that gift with the world. which some here in Moscow recently had a began working on this in 1985. In our dis- neath those trees the soldiers lie. Go ask my "Reason and experience," said George chance to see. The posse is closing in on the cussion today, we agreed on working up to mother, ask my wife; then you will have to several thousand exchanges a year from ask no more, 'Do the Russians want a Washington in his farewell address, "both two outlaws, Butch and Sundance, who find forbid us to expect that national morality themselves trapped on the edge of a cliff, each country in the near future. But not war?' But what of your one-time allies? with a sheer drop of hundreds of feet to the everyone can travel across the continents What of those who embraced you on the can prevail in exclusion of religious princi- raging rapids below. Butch turns to Sun- and oceans. Words travel lighter, and that's Elbe? What if we were to ask the watery ple. And it is substantially true, that virtue why we'd like to make available to this dance and says their only hope is to jump graves of the Pacific or the European bat- or morality is a necessary spring of popular government." Democracy is less a system of into the river below, but Sundance refuses. country more of our 11,000 magazines and tlefields where America's fallen were periodicals and our television and radio buried far from home? What if we were to government than it is a system to keep gov- He says he'd rather fight it out with the shows that can be beamed off a satellite in ernment limited, unintrusive; a system of posse, even though they're hopelessly out- ask their mothers, sisters, and sons, do numbered. Butch says that's suicide and seconds. Nothing would please us more Americans want war? Ask us, too, and you'll constraints on power to keep politics and urges him to jump, but Sundance still re- than for the Soviet people to get to know us find the same answer, the same longing in government secondary to the important things in life, the true sources of value fuses and finally admits, "I can't swim." better and to understand our way of life. every heart. People do not make wars; gov- Just a few years ago, few would have ernments do. And no mother would ever found only in family and faith. Butch breaks up laughing and says, "You imagined the progress our two nations have willingly sacrifice her sons for territorial But I hope you know I go on about these crazy fool, the fall will probably kill you." made together. The INF treaty, which Gen- things not simply to extol the virtues of my And, by the way, both Butch and Sundance gain, for economic advantage, for ideology. eral Secretary Gorbachev and I signed last own country but to speak to the true great- made it, in case you didn't see the movie. I A people free to choose will always choose December in Washington and whose instru- peace. ness of the heart and soul of your land. think what I've just been talking about is ments of ratification we will exchange to- Who, after all, needs to tell the land of perestroika and what its goals are. Americans seek always to make friends of morrow-the first true nuclear arms reduc- Dostoevski about the quest for truth, the old antagonists. After a colonial revolution But change would not mean rejection of tion treaty in history, calling for the elimi- home of Kandinski and Scriabin about the past. Like a tree growing strong with Britain, we have cemented for all ages nation of an entire class of U.S. and Soviet imagination, the rich and noble culture of through the seasons, rooted in the Earth the ties of kinship between our nations. the Uzbek man of letters Alisher Navoi nuclear missiles. And just 16 days ago, we After a terrible civil war between North and drawing life from the Sun, so, too, posi- saw the beginning of your withdrawal from about beauty and heart? The great culture and South, we healed our wounds and tive change must be rooted in traditional Afghanistan, which gives us hope that soon of your diverse land speaks with a glowing values-in the land, in culture, in family found true unity as a nation. We fought two the fighting may end and the healing may passion to all humanity. Let me cite one of and community-and it must take its life world wars in my lifetime against Germany begin and that that suffering country may the most eloquent contemporary passages from the eternal things, from the source of and one with Japan, but now the Federal find self-determination, unity, and peace at Republic of Germany and Japan are two of long last. our closest allies and friends. 706 Administration of Ronald Reagan, 1988 / May 31 May 31 / Administration of Ronald Reagan, 1988 Young People know each other, there would never be an- Some people point to the trade disputes Thank you all very much, and da blagos- between us as a sign of strain, but they're lovit vas gospod'-God bless you. Q. The question is: The universities influ- other war. And I think that of you. I think Mr. Logunov. Dear friends, Mr. Presi- ence public opinion, and the student won- that of the other students that I've ad- the frictions of all families, and the family of free nations is a big and vital and some- ders how the youths have changed since dressed in other places. dent has kindly agreed to answer your ques- times boisterous one. I can tell you that tions. But since he doesn't have too much the days when you were a student up until And of course, I know also that you're now? young and, therefore, there are certain nothing would please my heart more than time, only 15 minutes-so, those who have in my lifetime to see American and Soviet The President. Well, wait a minute. How things that at times take precedence. I'll questions, please ask them. diplomats grappling with the problem of you have changed since the era of my own illustrate one myself. Twenty-five years trade disputes between America and a youth? after I graduated, my alma mater brought growing, exuberant, exporting Soviet Union Strategic Arms Reductions Q. How just students have changed, the me back to the school and gave me an hon- that had opened up to economic freedom Q. And this is a student from the history youth have changed. You were a student. orary degree. And I had to tell them they and growth. And as important as these offi- [Laughter] At your time there were one faculty, and he says that he's happy to wel- compounded a sense of guilt I had nursed cial people-to-people exchanges are, noth- type. How they have changed? come you on behalf of the students of the for 25 years because I always felt the first ing would please me more than for them to The President. Well, I know there was a university. And the first question is that the degree they gave me was honorary. become unnecessary, to see travel between period in our country when there was a [Laughter] You're great. Carry on. improvement in the relations between the East and West become so routine that uni- very great change for the worst. When I two countries has come about during your versity students in the Soviet Union could was Governor of California, I could start a Regional Conflicts tenure as President, and in this regard he take a month off in the summer and, just riot just by going to a campus. But that has Q. Mr. President, you have just men- would like to ask the following question. It like students in the West do now, put packs all changed, and I could be looking out at tioned that you welcome the efforts-settle- is very important to get a handle on the on their backs and travel from country to an American student body as well as I'm ment of the Afghanistan question and the country in Europe with barely a passport question of arms control and, specifically, looking out here and would not be able to difference of other regional conflicts. What check in between. Nothing would please the limitation of strategic arms. Do you tell the difference between you. conflicts do you mean? Central America me more than to see the day that a concert think that it will be possible for you and the I think that back in our day-I did conflicts, South East Asian, or South Afri- promoter in, say, England could call up a General Secretary to get a treaty on the happen to go to school, get my college edu- can? Soviet rock group, without going through limitation of strategic arms during the time cation in a unique time; it was the time of The President. Well, for example, in any government agency, and have them that you are still President? the Great Depression, when, in a country South Africa, where Namibia has been playing in Liverpool the next night. Is this The President. Well, the arms treaty that like our own, there was 25-percent unem- promised its independence as a nation-an- just a dream? Perhaps. But it is a dream is being negotiated now is the so-called ployment and the bottom seemed to have other new African nation. But it is impossi- that is our responsibility to have come true. START treaty, and it is based on taking the fallen out of everything. But we had-I ble because of a civil war going on in an- Your generation is living in one of the intercontinental ballistic missiles and reduc- think what maybe I should be telling you most exciting, hopeful times in Soviet histo- ing them by half, down to parity between from my point here, because I graduated in other country there, and that civil war is ry. It is a time when the first breath of 1932, that I should tell you that when you being fought on one side by some 30,000 to our two countries. Now, this is a much freedom stirs the air and the heart beats to get to be my age, you're going to be sur- 40,000 Cuban troops who have gone from more complicated treaty than the INF the accelerated rhythm of hope, when the prised how much you recall the feelings you the Americas over there and are fighting on treaty, the intermediate-range treaty, which had in these days here and that how easy it one side with one kind of authoritative gov- accumulated spiritual energies of a long si- we have signed and which our two govern- is to understand the young people because ernment. When that country was freed lence yearn to break free. I am reminded of ments have ratified and is now in effect. So, of your own having been young once. You from being a colony and given its independ- the famous passage near the end of Gogol's there are many things still to be settled. know an awful lot more about being young ence, one faction seized power and made "Dead Souls." Comparing his nation to a You and we have had negotiators in Geneva than you do about being old. [Laughter] itself the government of that nation. And speeding troika, Gogol asks what will be its for months working on various points of this And I think there is a seriousness, I think leaders of another-seeming the majority of destination. But he writes, "There was no treaty. Once we had hoped that maybe, like there is a sense of responsibility that young the people had wanted simply the people to answer save the bell pouring forth marvel- the INF treaty, we would have been able to people have, and I think that there is an have the right to choose the government ous sound." that they wanted, and that is the civil war We do not know what the conclusion will sign it here at this summit meeting. It is not awareness on the part of most of you about be of this journey, but we're hopeful that completed; there are still some points that what you want your adulthood to be and that is going on. But what we believe is that are being debated. We are both hopeful what the country you live in-you want it those foreign soldiers should get out and let the promise of reform will be fulfilled. In this Moscow spring, this May 1988, we may that it can be finished before I leave office, to be. And I have a great deal of faith. I them settle it, let the citizens of that nation which is in the coming January, but I assure said the other day to 76 students-they settle their problems. be allowed that hope: that freedom, like the you that if it isn't-I assure you that I will were half American and half Russian: They And the same is true in Nicaragua. Nica- fresh green sapling planted over Tolstoi's grave, will blossom forth at last in the rich have impressed on my successor that we had held a conference here and in Finland ragua has been-Nicaragua made a prom- fertile soil of your people and culture. We must carry on until it is signed. My dream and then in the United States, and I faced ise. They had a dictator. There was a revo- has always been that once we've started them just the other day, and I had to say-I lution, there was an organization that-and may be allowed to hope that the marvelous down this road, we can look forward to a couldn't tell the difference looking at them, was aided by others in the revolution, and sound of a new openness will keep rising which were which, but I said one line to they appealed to the Organization of Amer- through, ringing through, leading to a new day, you can look forward to a day, when them. I said I believe that if all the young ican States for help in getting the dictator world of reconciliation, friendship, and there will be no more nuclear weapons in people of the world today could get to to step down and stop the killing. And he peace. the world at all. 709 Administration of Ronald Reagan, 1988 / May 31 May 31 / Administration of Ronald Reagan, 1988 did. But the Organization of American powers are. And it can have no powers wipe out that amendment to the Constitu- lifestyle. Maybe we should have said, no, tion because it was an interference with the come join us; be citizens along with the rest States had asked, what are the goals of the other than those listed in that document. democratic rights of the people. The people of us. As I say, many have; many have been revolution? And they were given in writing, But very carefully, at the same time, the should be allowed to vote for who they very successful. and they were the goals of pluralistic socie- people give the government the power wanted to vote for, for as many times as And I'm very pleased to meet with them, ty, of the right of unions and freedom of with regard to those things which they they want to vote for him; and that it is talk with them at any time and see what speech and press and so forth and free elec- think would be destructive to society, to the they who are being denied a right. But you their grievances are or what they feel they tions-a pluralistic society. And then the family, to the individual and so forth-in- see, I will no longer be President then, so I might be. And you'd be surprised: Some of one group that was the best organized fringements on their rights. And thus, the can do that and talk for that. them became very wealthy because some of among the revolutionaries seized power, government can enforce the laws. But that There are a few other things I'm going to those reservations were overlaying great exiled many of the other leaders, and has its has all been dictated by the people. try to convince the people to impress upon pools of oil, and you can get very rich own government, which violated every one of the promises that had been made. And The President's Retirement Plans our Congress, the things that should be pumping oil. And so, I don't know what done. I've always described it that if-in Q. Mr. President, from history I know their complaint might be. here again, we want-we're trying to en- Hollywood, when I was there, if you didn't courage the getting back those-or making that people who have been connected with Q. Mr. President, I'm very much tanta- sing or dance, you wound up as an afterdin- great power, with big posts, say goodbye, lized since yesterday evening by the ques- those promises come true and letting the ner speaker. And I didn't sing or dance. people of that particular country decide leave these posts with great difficulty. Since tion, why did you receive yesterday-did [Laughter] So, I have a hunch that I will be your term of office is coming to an end, you receive and when you invite yester- their fate. out on the speaking circuit, telling about a what sentiments do you experience and day-refuseniks or dissidents? And for the Soviet MIA's in Afghanistan few things that I didn't get done in govern- whether you feel like, if, hypothetically, you second part of the question is, just what are ment, but urging the people to tell the Q. Esteemed Mr. President, I'm very can just stay for another term? [Laughter] your impressions from Soviet people? And Congress they wanted them done. much anxious and concerned about the des- The President. Well, I'll tell you some- among these dissidents, you have invited a tiny of 310 Soviet soldiers being missing in thing. I think it was a kind of revenge American Indians former collaborator with a Fascist, who was Afghanistan. Are you willing to help in their against Franklin Delano Roosevelt, who was Q. Mr. President, I've heard that a group a policeman serving for Fascist. search and their return to the motherland? elected four times-the only President. of American Indians have come here be- The President. Well, that's one I don't The President. Very much so. We would There had kind of grown a tradition in our cause they couldn't meet you in the United know about, or maybe the information like nothing better than that. country about two terms. That tradition was States of America. If you fail to meet them hasn't been all given out on that. But you American Constitution started by Washington, our first President, here, will you be able to correct it and to have to understand that Americans come only because there was great talk at the meet them back in the United States? from every corner of the world. I received Q. The reservation of the inalienable formation of our country that we might The President. I didn't know that they a letter from a man that called something rights of citizens guaranteed by the Consti- become a monarchy, and we had just freed had asked to see me. If they've come here to my attention recently. He said, you can tution faces certain problems; for example, ourselves from a monarchy. So, when the or whether to see them there-[aughter]- go to live in France, but you cannot the right of people to have arms, or for second term was over, George Washington I'd be very happy to see them. become a Frenchman; you can go to live in example, the problem appears, an evil ap- stepped down and said he would do it- Let me tell you just a little something Germany, you cannot become a German- pears whether spread of pornography or stepping down-so that there would not get about the American Indian in our land. We or a Turk, or a Greek, or whatever. But he narcotics is compatible with these rights. to be the kind of idea of an inherited aris- have provided millions of acres of land for said anyone, from any corner of the world, Do you believe that these problems are just tocracy. Well, succeeding Presidents-many what are called preservations-or reserva- can come to live in America and become an unavoidable problems connected with de- of them didn't get a chance at second term; tions, I should say. They, from the begin- American. mocracy, or they could be avoided? they did one term and were gone. But that ning, announced that they wanted to main- You have to realize that we are a people The President. Well, if I understand you correctly, this is a question about the in- tradition kind of remained. But it was just a tain their way of life, as they had always that are made up of every strain, national- alienable rights of the people-does that in- tradition. And then Roosevelt ran the four lived there in the desert and the plains and ity, and race of the world. And the result is so forth. And we set up these reservations that when people in our country think clude the right to do criminal acts-for ex- times-died very early in his fourth term. ample, in the use of drugs and so forth? No. And suddenly, in the atmosphere at that so they could, and have a Bureau of Indian someone is being mistreated or treated un- time, they added an amendment to the Affairs to help take care of them. At the justly in another country, these are people [Applause] No, we have a set of laws. I think what is significant and different about Constitution that Presidents could only same time, we provide education for who still feel that kinship to that country them-schools on the reservations. And because that is their heritage. In America, our system is that every country has a con- serve two terms. When I get out of office-I can't do this they're free also to leave the reservations whenever you meet someone new and stitution, and most constitutions or practi- cally all of the constitutions in the world are while I'm in office, because it will look as and be American citizens among the rest of become friends, one of the first things you us, and many do. Some still prefer, howev- tell each other is what your bloodline is. For documents in which the government tells I'm selfishly doing it for myself-when I get out of office, I'm going to travel around, er, that way-that early way of life. And example, when I'm asked, I have to say the people what the people can do. Our what I call the mashed-potato circuit-that we've done everything we can to meet Irish, English, and Scotch-English and Constitution is different, and the difference is the afterdinner speaking and the speak- their demands as to how they want to live. Scotch on my mother's side, Irish on my is in three words; it almost escapes every- ing to luncheon groups and so forth-I'm Maybe we made a mistake. Maybe we father's side. But all of them have that. one. The three words are, "We the people." should not have humored them in that Well, when you take on to yourself a Our Constitution is a document in which going to travel around and try to convince we the people tell the government what its the people of our country that they should wanting to stay in that kind of primitive wife, you do not stop loving your mother. May 31 / Administration of Ronald Reagan, 1988 Administration of Ronald Reagan, 1988 / May 31 So, Americans all feel a kind of a kinship to waited for somebody to get in front and skyscrapers after them into arrows of gold form in Pasternak's poem "The Garden of that country that their parents or their drive us. [Laughter] aimed at the arched and timeless blue." So, Gethsemane." Listen, if you will, to Paster- grandparents or even some great-grandpar- we, too, have found Moscow a city of beau- nak's account of that famous arrest: ents came from; you don't lose that contact. [At this point, Rector Logunov presented ties. A city, especially, whose pinnacles and So, what I have come and what I have the President with a gift.] spires reminded one at virtually every turn "There appeared-no one knew from brought to the General Secretary-and I That is beautiful. Thank you very much. of man's ancient capacity for aspiration, for where-a crowd of slaves and a rabble reaching out toward the light. of knaves, with lights and swords and, must say he has been very. cooperative about it-I have brought lists of names that It's a particular pleasure to be able to leading them, Judas with a traitor's kiss Note: The President spoke at 4:10 p.m. in have been brought to me from people that the Lecture Hall at Moscow State Universi- welcome you to Spaso House-a house of on his lips. are relatives or friends that know that or ty. Anatoliy Alekseyevich Logunov was considerable beauty in its own right-the "Peter repulsed the ruffians with his that believe that this individual is being rector of the university. residence of our Ambassadors to the Soviet sword and cut off the ear of one of mistreated here in this country, and they Union. During the 55 years of diplomatic them. But he heard: 'You cannot decide want him to be allowed to emigrate to our relations between our two nations, Spaso a dispute with weapons; put your sword country. Some are separated families. House has served as one of the principal in its place, 0 man.' One that I met in this, the other day, was settings for exchanges between us-ex- Toasts at a Dinner Hosted by the That's the voice. "Put your sword in its born the same time I was. He was born of changes formal and informal alike. There President at Spaso House in Moscow place, O man." This is the imperative, the Russian parents who had moved to Amer- have been some splendid moments within ica, oh, way back in the early 1900's, and he May 31, 1988 these walls. Prokofiev once conducted his command. And so, we will work together, that we might forever keep our swords at was born in 1911. And then sometime later, marvelous "The Love for Three Oranges" our sides. the family moved back to Russia. Now he's The President. Mr. General Secretary, in this very room. As wartime allies, our grown, has a son. He's an American citizen. Mrs. Gorbachev, distinguished guests and representatives met often under this roof. Mr. General Secretary, ladies and gentle- But they wanted to go back to America and friends, it's a pleasure to host all of you And Ambassador and Mrs. Matlock have men, Spaso House has, as I said, seen quiet being denied on the grounds that, well, continued the tradition of making Spaso times, yet the animated conversation of this tonight and to reciprocate, in a small way, they can go back to America, but his son the hospitality you lavished upon us yester- House a centerpiece of American culture, a evening has already done much to make up married a Russian young lady, and they day evening. While the General Secretary place to receive and talk with Soviet offi- for them. And so, I would like to raise a want to keep her from going back. Well, and I had already held three meetings cials and with people from all walks of life glass to the continued interchange between the whole family said, no, we're not going before this one began here in Moscow, each and from all parts of the Soviet Union. But our two nations and, if I may, to Spaso to leave her alone here. She's a member of of those earlier encounters took place in the there have also been quiet times in this House itself, as a symbol of our relations. the family now. Well, that kind of a case is autumn. The days were growing short, the house-unnaturally quiet times. Times May this lovely home never lack for visitors brought to me personally, so I bring it to weather ever grayer and colder. It makes when difficult relations between us meant and shared meals and the sounds of spirited the General Secretary. And as I say, I must for a bracing, delightful change to have this that this house, this huge, magnificent conversation and even the peal of hearty say, he has been most helpful and most meeting take place at the high point of house, stood virtually empty of visitors. I'm laughter. agreeable about correcting these things. spring, a time of long, light-filled days. told that it was even possible to hear the Thank you, and God bless you. And to the Now, I'm not blaming you; I'm blaming I know that Nancy found her springtime Moscow Metro rumbling past, ever so faint- General Secretary, to Mrs. Gorbachev, to bureaucracy. We have the same type of visit to Leningrad earlier today both mag- ly, deep in the Earth below. the relationship that I believe must contin- thing happen in our own country. And nificent and moving. The play of light upon Mr. General Secretary, we know that on ue. every once in a while, somebody has to get the rivers and canals added the special matters of great importance we will contin- The General Secretary. Esteemed Mr. the bureaucracy by the neck and shake it splendor of the season to a city splendid in ue to differ profoundly, and yet you and I President, esteemed Mrs. Reagan, ladies loose and say, Stop doing what you're any season. And everywhere, Nancy has have met four times now, more often than and gentlemen, comrades: I thank you, Mr. doing. And this is the type of thing and the told me, there was a sense of history, espe- any previous President and General Secre- President for the words of greeting you just names that we have brought. And it is a list cially of Leningrad's immense courage and tary. While our discussions have sometimes addressed to us. of names, all of which have been brought to sacrifice during the Second World War, been pointed or contentious, we possess an Two great nations have given the two of me personally by either relatives or close surely one of the most stirring epics in the enlarged understanding of each other and us a mandate to determine what Soviet- friends and associates. [Applause] Thank whole human story. of each other's country. On specific matters American relations should be like. Since our you very much. You're all very kind. I Here in Moscow, I've been reminded a of policy, we have made progress, often his- first meeting in Geneva, relations between thank you very much. And I hope I an- number of times during this springtime visit toric progress. And perhaps most important, our two countries have overcome a long swered the questions correctly. Nobody of a passage in a book about your country we have committed our nations to continu- drawn out period of confrontation to reach asked me what it was going to feel like to by Laurens Van der Post. Especially struck ing to work together, agreeing that silence an acceptable level from which it is now not be President anymore. I have some un- by the city's churches, Van der Post wrote must never again be permitted to fall be- easier to move forward. In Reykjavik, in derstanding, because after I'd been Gover- that when he caught his first sight of the tween us. We have agreed always to contin- Washington, and during this present visit of nor for 8 years and then stepped down, I Moscow skyline he saw "the light of an un- ue the interchanges between our nations yours, our dialog has been intense. Its most want to tell you what it's like. We'd only usually pure evening upon it. That light was because, I believe, we both hear the same important result has been the now ratified been home a few days; and someone invit- alchemical, and it transformed Moscow into voice, the same overwhelming imperative. first treaty to reduce nuclear weapons. A ed us out to dinner. Nancy and I both went a city of gold. The tops of the spires and What that voice says can be expressed in search is continuing to find a solution for out, got in the back seat of the car, and pinnacles drawing the rigid forms of the many ways. But I have found it in vivid problems relating to 50-percent cuts in stra- DOUBLE MAP SUPPLEMENT: THE ARCTIC AND ITS PEOPLES VOL. 163, NO. 2 FEBRUARY 1983 NATIONAL GEO HIC OH 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, 0 stone buildings of Pest appeared so heavy it 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 *COAL Sarospatak Tisza WIEN Donau Miskolc Kis (Vienna) (Danube) Bratislava Lillafured Tokaj Salgótarján 959m 3,146 ft Neusiedler Mts. BUKK See Cserhat Mountains NATIONALPARK Nyíregyház Mosonmagyaróvár 11015 Eger COALX AUSTRIA Esztengon 3,330 ft Gyor Vác COAL Sopron 1757 m Hatvan HORTOBAGY Kapuvár Györújbarát Tata 2,484 ft Tiszafüred. NATIONAL PARK Oroszlány Tatabánya Csomör Debrecen COAL COAL BUDAPEST Köszeg Raba Mor Vecsés COAL 704 m 2,310 ft BAUXITE Albertirsa Tisza Szombathely Székesfehervaks Szolnok BAUXITE KISKUNSAGI Bakony Veszprem Cegléd BAUXITE NATIONAL AUXITE Lajosmizse Balatonfüred, PARK Hungarian Szeghalom Oradea Zala Dunaújváros Körös Tapolca Siofok Balaton Kecskemét ROMA Zalaegerszeg BAUXITE Szárvas Szigliget Lake Hung ary Békéscsaba) Kiskunfélegyháza Paks Kiskörös Orosháza Nagykanizsa, Kaposvár Dombovár, Sió Szekszárd Zákányszék. Szeged OIL FIELD Nagyatad 682 m 2,238 ft COALX Mts. MINE Baja Macos OIL PIPELI Duna Mohacs (Danibe) CANAL KILOMETERS YUGOSLAVIA 0 STATUTE MIL DRAWN BY ISKANDAR COMPILED BY GRAHAN NATIONAL GEOGRAPHI PRUSSIA 0 KINGDOM OF RUSSIAN PRINCIPALITIES POLAND AND HOLY DUCHY GRAND DUCHY POLAND OF ROMAN- CONFED. WARSAW HOLY POLAND HOLY OF LITHUANIA OF EMPIRE THE ROMAN ROMAN AUSTRIA RHINE EMPIRE KINGDOM EMPIRE AUSTRIA EMPIRE OF AU OF KINGDOM HUNGARY KINGDOM OF HUNGARY OF HUNGARY HUNGAR OTTOMAN EMPIRE OT SERBIA OTTOMAN E NORMAN BYZANTINE EMPIRE PRINCIPALITIES EMPIRE KINGDOM KINGDOM KINGDOM OF NAPLES OF NAPLES OF NAPLES 1100 1566 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 g Invaded In the ninth century defeated the Hungarlan Army at ruler of the Habsburg dominions, the decades before 1848, after migrating from the Ural Mohács in 1526, after which the succeeded Charles III as monarch revolution led by Lajos K Mountain region. They were nation was divided under Ottoman of Hungary, ushering In 40 years of won Independence. But T converted to Christianity by and Habsburg rule. mild reform and domestic Nicholas I of Russia helpe Stephen I, crowned in 1001. stability. down the rebellion a year 226 National Geographic, February 1983 Hungary: A Different kia XCOAL trospatak. Tisza Carpathian Mountains Hungary Miskolc Kisvárda Lillafured Tokaj IN THE HEART OF EUROPE, Hungary looks to both East and West for trade and culture. As a algótarján 959'm 3,146 Mountaing member of the Warsaw Pact, it stands firmly in S. BUKK the alliance of socialist states. Yet half of its business NATIONAL PARK Nyíregyháza TOIS COAL is with non-Communist countries, and its people Eger 3,330 ft Nyírbátor have a keen taste for Western styles of living. Perhaps a million people of Hungarian Hatvan HORTOBAGY iszafüred NATIONAL PARK stock live in the United States, nör Debrecen more than 50,000 of whom 0 KM 400 fled Hungary following the 400 PEST visid 1956 uprising that was crushed ecsés FED DEM. POLAND by the Soviet Union. More REP REP OF Albertirsa Tisza than three million Hungarians GERMANY SOVIET Szolnok AUSTRIA BLOC SAGI Cegléd Hungarian Great Körös ROMANIA live in neighboring nations. The Hungarian language is HUNGAR) NAL Lajosmizse Szeghalom radically different from major ITALY ROMANIA Oradea European tongues, giving its YUGOSLAVIA kemét poets a frustrating sense of BULGARIA Szárvas isolation. Yet the warmth of ALBANIA Békéscsabar its people is translated into Kiskunfélegyháza GREECE friendship each year for a 1983 korös growing number of visitors. 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 ákányszék Szeged OIL FIELD Maros percent. LIFE EXPECTANCY: 70 years. 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 slavia Pharmaceuticals, transportation STATUTE MILES 50 equipment, textiles, medical and scientific instruments, DRAWN BY ISKANDAR BADAY COMPILED BY GRAHAM J. TRUSCOTT bauxite, corn, wheat, sunflower oil, sugar beets, wine. NATIONAL GEOGRAPHIC CARTOGRAPHIC DIVISION PRUSSIA HOLY DUCHY RUSSIAN GERMANY RUSSIAN Areas acquired by ROMAN POLAND CONFED. OF WARSAW EMPIRE EMPIRE Hungary 1938-1941 U.S.S.R EMPIRE OF THE and lost in 1945 AUSTRIA RHINE GERMANY AUSTRIA KINGDOM EMPIRE OF AUSTRIA AUSTRIA AUSTRO-HUNGARIAN, OF HUNGARY UNGARY EMPIRE HUNGARY ITALY ITALY ROMANIA ROMANIA OTTOMAN OTTOMAN SERBIA THOUSAND BULGARIA BULGARIA EMPIRE EMPIRE ALBANIA KINGDOM OF NAPLES KINGDOM OF NAPLES GREECE GREECE 1812 1914 02 1939-1945 burg Rule Napoleonic Era World War I World War II Theresa, the first female Hungarian nationalism grew in Hungary entered World War I as Hoping to regain lost lands, and the Habsburg dominions, the decades before 1848, when a part of the expanded Dual led Charles III as monarch defenseless against Nazi Germany, revolution led by Lajos Kossuth Monarchy. After defeat in 1918 Hungary entered the war on the jary, ushering in 40 years of won Independence. But Tsar Hungary lost 64 percent of its Axis side. Soviet forces were orm 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. graphic, February 1983 Hungary: A Different Communism 227 Little Paris on the Danube, as it is colorfully described, Budapest has of the Liberation Monume all the worldly charm of other major European capitals. The hills of medieval Germany in 1945. With al Buda on the river's west bank, at left, are linked to the elegant boulevards coffeehouses and concert 1 of more modern Pest on the east by eight graceful bridges. The soaring figure the city dominates the cui 228 National Geographic, February 1983 Hungary: A Different Co ma cribed, Budapest has itals. The hills of medieval of the Liberation Monument commemorates the Soviet victory over Nazi the elegant boulevards Germany in 1945. With a fifth of Hungary's population and a host of ridges. The soaring figure coffeehouses and concert halls, as well as government offices and factories, the city dominates the cultural, political, and economic life of the nation. eographic, February 1983 Hungary: A Different Communism 229 were being strengthened; that the once iron had met earlier, elsewhere: the rabbi, port- A bell sounded hand of Communist authority had been ly, in his yarmulke; the Calvinist bishop, the great chamber withdrawn from daily life, so that you might tall, elegant, a gold ring flashing on his left television and stilled forget for days that you were east, rather index finger; the burly boss of the coal mines row of tables for 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 Jána hopped aboard and rode three stops to the It was, in a way, showcase parliament: It liament, First Section Parliament Building, a neo-Gothic mass of included a leading sculptor, a leading com- Socialist Workers' stone raised at the turn of the century, a poser, leading personalities from a cross sec- In 1956, amid remnant of the Austro-Hungarian Empire. tion of interests. It had, a Western diplomat left Budapest; he With my credentials approved, I entered. It told me, no power and met only a few days Army, established was the first session of the year, and in the each year; but, he added, it had influence in led Hungary since. ornate corridors members greeted one an- the lengthier committee hearings, where a traitor with blood other and chatted. proposals designed by the Hungarian So- Hungarians seem Hungary is a small country, I was remind- cialist Workers' Party could be discussed Once while a made ed again. Among the members were people I and differing points of view expressed. need to reform the 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 sewhere: the rabbi, port- A bell sounded and we took our places in too bulky, too arcane-Mr. Kádár slipped te; the Calvinist bishop, the great chamber. In the center crouched from his seat and walked alone down a corri- d ring flashing on his left television and still cameramen; next came a dor. He is 70, above average height, neither irly boss of the coal mines row of tables for ministers; above them were fat nor thin. One shoulder seemed slightly lored, 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 sculptor, a leading com- Socialist Workers' (Communist) Party. him to be the boss of a successful agricultural onalities from a cross sec- In 1956, amid the uprising, Mr. Kádár cooperative. had, a Western diplomat left Budapest; he returned with the Soviet As I watched him disappear down the cor- and met only a few days Army, established a government, and has ridor, two of the ghosts at my side stirred. dded, it had influence in led Hungary since. In 1956 many called him They were the ghosts of two men: Mr. Kádár mittee 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, arty 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) national gn company, as rld's urers. A amber ach's 1 layers in other percent of women, pm ft). nite in ew t), where ore S.S.R. the a de, d raw for igh cost imports, 2 more -deep their 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. THE 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'ÁGYMÁNYOSI LAKOT 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." 234 (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 are gary, looking into life today. invited me back into the house to sample ares of wheat and cor the fresh pig liver, sauteed in lard, sprinkled notable eight metric t N A COLD, DRIZZLY DAY with fog with paprika; fresh brown bread, home- O But in Hungary's qt drifting across the road, I drove to made wine. But there was more: "Come into fully utilize labor, th Gyor, a city halfway between Buda- the kitchen, you must taste the sausage!" It out: It held also a sm pest and Vienna, and on into the vil- was not yet smoked, but rich with the special hunting preserve fre lage of Győrújbarát. I made inquiries until musk of freshly killed meat, pungent from Italians and West Gei I located the house of Károly and Piroska garlic and half a pound of paprika. that drew a stream of Németh. And then: "You can't leave yet, sit down In the riding school' I had come for a pig killing. In the long. again. The fresh cutlets are almost ready!" ly of horses and hay a years before World War II, Hungary was a Mrs. Németh placed on the table steaming fireplace the coat of ar mostly rural country, backward, poor. A pig cutlets, pickles, more paprika, more fresh we talked of changes killing, with its promise of food, was a great bread, more homemade wine. No man in all "We used to have E ceremony, limned by poems and folklore. Hungary ate better that morning. Mr. Vető said. "Minis That mystique remains. I wanted also to As I ate, I talked with Mr. Németh. I told termined the number learn why the markets of Hungary were so him some said that the farmers in Hungary whatever the farm sho 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 greater brandy made from the skins of grapes after "It is not certain that we have a lot of mon- "Then the approad they have been crushed to make wine. A tra- ey," he said, "but we have plenty to eat. We work out the annual pl ditional drink, he said, "to give strength to work hard, from four or five in the morning is some review by th pig killers. While Mrs. Németh got their until eight in the evening; we have time only but very rarely will 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 impo 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 the 2,500 kilograms (5,500 pounds) of corn a furnish no capital, and the pork is produced a part going to the wo year for fodder. They also now had two cheaply." The grandiose plans of the past, nuses. So people use t 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 d operative, or privately. "We sold 19 piglets abandoned-at least for a time. Vető, 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 di They owned their house and had rented work did not exist. Now, as one Hungarian general manager, I di out another that they had inherited. told me, "People are allowed to work, to Now that I am the gene 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 point afterward," Mrs. Németh said. We went out O GAIN THE VIEW of a farm man- T point people to top poi into the cold of the backyard. Men wrestled ager, I went to Tata, a town nearly 60 were traditionally lea the pig onto its side; one cut its throat. When kilometers (35 miles) northwest of Bu- working-class moven the pig was dead, the men used a blowtorch dapest. There I toured the State Farm loyal Communists. An to burn off the bristles, then hung it from a of Tata, occupying land once owned by the level of training was 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 mor As the pig was butchered, parts were tak- with a raspy voice and a countryman's way are a good expert in yo en into the basement for further processing. of cocking his head as he sizes you up. manager." Mr. Vetó, i 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 E the intestines cleaned to hold sausage; the and 7,000 ducks produce 500,000 young, Danube 40 miles upri 236 National Geographic, February 1983 Hungary: A Different Ca to make pig pudding. then the quiet parts, the 1,000 hectares of The river here marks the border with went on, Mrs. Németh lakes where carp are bred, and 1,200 hect- Czechoslovakia. It is a place to pause, to to the house to sample ares of wheat and corn, the latter yielding a seek perspective. Near here, in Roman auteed 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 was 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 but 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 and of paprika. that drew a stream of Austrian tourists. so the Romans were swept away. leave yet, sit down In the riding school's stable, smelling rich- The Magyars arrived late in the ninth cen- tlets are almost ready!" ly of horses and hay and still bearing on its tury, and here in the 11th their first Chris- on 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 wine. No man in all "We used to have a very strict system," to take the city's fortress; here in the 16th that morning. Mr. Vető said. "Ministries in Budapest de- century came the conquering Turks, who with Mr. Németh. I told termined the number of geese or ducks or ruled much of Hungary for 150 years; and the farmers in Hungary whatever the farm should have, and we had here thereafter, under the Habsburgs of dwellers; that there sometimes very low prices. The more we Austria, arose the fine baroque houses, the this 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. have plenty to eat. We work out the annual plan on the farm. There Esztergom is called Hungary's Vatican; or five in the morning is some review by the higher authorities, its great cathedral holds treasuries of gold we have time only but very rarely will they suggest some chalices, embroidered vestments, the tombs meat seven days." change. And there is no interference at all of the archbishops. I wondered: When the the farm editor of the during the year. river of time brought Communism, what out half of the pigs in "And now it is important to gain 20,000-are raised on profit. The profit is divided be- for the state. It has to tween the state and the farm, with- nd the pork is produced a part going to the workers as bo- diose plans of the past, nuses. So people use their minds, to be raised exclusively their brains." buildings, had been There was another change. Mr. for 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 when the incentive to why. When I was the deputy to the Now, as one Hungarian general manager, I did not join. allowed to work, to Now that I am the general manag- we have food, the best er, I think I'm too old. "When this social system was introduced, the point was to ap- VIEW of a farm man- point people to top positions who Tata, a town nearly 60 were traditionally leaders of the miles) northwest of Bu- working-class movement, very toured the State Farm loyal Communists. And the actual and once owned by the level of training was not that Tapping the talents of handicapped workers, the Rozmaring flower rházy family. My host important. cooperative outside Budapest has haging director, a man "Nowadays it is more important that you pioneered a unique hiring program. a countryman's way are a good expert in your field, and a good In hopes of broadening their he sizes you up. manager.' Mr. Vető, it was clear, was one opportunities, it has filled its accounting isy parts of the farm, such good expert. department with 50 disabled people. ay 900,000 eggs a year The small city of Esztergom lies on the oduce 500,000 young, Danube 40 miles upriver from Budapest: ographic, 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 It 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. n. 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? N THE PALACE OF the cardinal pri- I 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 "He expected everybody to become a mar- will stand next to that of Béla's mother. 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 million J everyone in the countryside after the such private gardens o day's work is finished at state farms animals. On these sma or cooperatives. In a field near manage to raise half of Kiskunfélegyháza a member of the Lenin third of the beef and do Cooperative sows corn with a percent of the poultry, homemade planter on the small portion and wine grapes, and 4 set aside for his private use (above). vegetables-in all, abo To supplement income, a housewife everything produced in in Zákányszék (left) raises nutrias in her Private plots have be backyard to sell to furriers, and a boy in fact, that life in som outside Szeged (right) helps harvest said to be the most com beets from his family's private plot. profitable-in the coun National Geographic, February 1983 Hungary: A Different ( fever grips nearly At least 1.5 million families keep countryside after the such private gardens or raise their own ished at state farms animals. On these small parcels they In a field near manage to raise half of all the pigs, a a member of the Lenin third of the beef and dairy cattle, 70 corn with a percent of the poultry, half of the fruit on the small portion and wine grapes, and 40 percent of the private use (above). vegetables-in all, about 30 percent of income, a housewife everything produced in Hungary. left) raises nutrias in her Private plots have been so successful, to furriers, and a boy in fact, that life in some villages is right) helps harvest said to be the most comfortable-and mily's private plot. profitable-in the country. graphic, February 1983 Hungary: A Different Communism 245 Fit for a queen: The Diósgyőr 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 Győr 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 Different C 247 Hungary: A Different Communism raphic, February 1983 (Continued from page 240) the policies of Kádár, until he slipped away to the Russian What had he learn the church itself. Of course, anyone who is side. In Eastern Europe, Mr. Kádár could is impossible to make religious fears the withering away of Cathol- clearly see, good intentions and popularity against their will; an icism, but there are many ways one can act are not enough. one to subject a peop in this situation. To be very stiff, just to re- But there was another ghost in this mat- ments. So it is our CO ject everything: That is not the only way." ter, a man whose name I would hear from tem is to be built with And so, as the perception of János Kádár time to time in Hungary, spoken as if a ver- sweat, and tears; we I has changed over the years, so, in the minds bal charm, to ward off the return of evil: Rá- people happy, not for 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 ma dressed in the regulation black suit and sil-_ II so rich and peppe HE JOURNALIST and sat in a hotel ver tie, always accompanied by two men, be eaten with sli T dining room by the Danube. Through each with a hand in his pistol pocket. brown toast; then the curtains passersby outside ap- Rákosi came to power with the Russian the house specialty, peared as silhouettes, spectral. "You Army after World War II. He destroyed op- beefsteak, smothered could call me a survivor," he said. He had position parties bit by bit, "like slicing sa- onions, paprika. My been a member of the Communist Party in lami." Then he proceeded to oppress his Hajdú, watched with 1956; in the midst of the uprising he found fellow Hungarians: "If the doorbell rang af- now and then refillir himself in the Parliament Building, a func- ter ten in the evening, you were terrified." with a white wine fro tionary of the government of Imre Nagy. The terror, the oppression helped inspire the Balaton region. Józs I pressed him: Why did Nagy, a Commu- events of 1956. Among those who served wife, Marika, operate nist, declare Hungary neutral and ask the Rákosi, and who were jailed by him and in rant Aranyhíd (Golder United Nations to help get the Russians out? jail tortured, was János Kádár. There were a contract restaurant. "He was desperate, all else had failed.' And lessons to be drawn. ample of the individua who was in the streets? Who had the guns? sat in a large book-lined office in the Par- that is now encourag Who led them? What did they want? Exact- liament Building. The man opposite had gary. I wanted to lear 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 that hours digging up every little detail. Still, we was a deputy prime minister, a member of owned by the state c don't understand what happened. It was so the politburo, soon to be secretary of the cen- south Buda, which op quick. Perhaps if it had taken more time, we tral committee. His graying hair was swept taurants and coffeehou could see what really happened. Power to- backward, his nose prominent, his shoul- rent out some to employ tally collapsed. All this in just a few days!" ders stooped as if weighted by more than a a long time with such He remembered the time after the revolt single lifetime of experience. and I had done so. The had been suppressed. "Strange things were "I have no personal reasons to say that ment, and monthly pa happening. Some came back from arrest, what happened before 1956 could be por- food and drink supplies others didn't. Ministers seemed to come trayed in clean colors," György Aczél said. The hours are long, b back from the earth. I didn't join the party He had spent more than five years in prison. ing. "Before we took O again. I had some difficult years, employ- His perceptions of the events that led to offered just beer, some ment problems." the uprising: Now we have a kitcher Why didn't he rejoin the party? A silence, "There was a group of leaders who mis- ety, everything cooked t then: "Some who were executed were party used the name of the Communist Party and the restaurant was ope members. Perhaps that is one reason. made several faults by misusing that name. now it is open to midni Among the party members executed was There were brutal deeds attributed to these just as long as people sta Imre Nagy, the man he had served. Nagy people, and I would state that the Hungar- Now their goal was t was a thickset man with a farmer's mus- ian people in 1956 were disappointed not side terrace: "If we get i tache and a schoolmaster's pince-nez. The because of socialism but because of these contracts, and then we , ghost of Nagy was often with me, especially brutal distortions." After testing individu as I walked in Budapest. He had liked to In Mr. Aczél's view the revolt had been taurants, the governmer 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 sprin was a kindly man, popular. people wishing to overthrow the socialist László Barthó, 37, wh Another who had been in the Parliament system. And so it was crushed. This is the anxious expression of Building, serving under Nagy, was János view taught in schoolbooks. wife and two children 248 National Geographic, February 1983 Hungary: A Different Co bed away to the Russian What had he learned in prison? "That it rope, Mr. Kádár could is impossible to make a people happy if it is In her dreams a young Gypsy, Gizella tentions and popularity against their will; an ideology should not be Bogdán, travels far from her village near one to subject a people to tests and experi- the Yugoslav border to the world of high fashion she finds in magazines. A other ghost in this mat- ments. So it is our conviction that this sys- tough people with a footloose past, ame I would hear from tem is to be built without unnecessary blood, Hungary's 320,000 Gypsies are slowly gary, spoken as if a ver- sweat, and tears; we have to make being drawn into the rest of society. ff the return of evil: Rá- people happy, not force them." was, some remember, a th a moon face, always BEGAN with marrow soup, ation black suit and sil- mpanied by two men, I so rich and peppery it had to be eaten with slices of thick his pistol pocket. brown toast; then I addressed ower with the Russian the house specialty, Hungarian ar П. He destroyed op- beefsteak, smothered in tomatoes, by bit, "like slicing sa- onions, paprika. My host, József ceeded to oppress his Hajdú, watched with interest, 'If the doorbell rang af- now and then refilling my glass g, you were terrified.' with a white wine from the Lake ssion helped inspire the Balaton region. József and his ong those who served wife, Marika, operate the restau- re jailed by him and in rant Aranyhíd (Golden Bridge) as nos Kádár. There were a contract restaurant. It is an ex- ample of the individual enterprise k-lined office in the Par- that is now encouraged in Hun- The man opposite had gary. I wanted to learn a little of ed in institutions; once how it worked. to read poetry. Now he József told me that the restaurant was abandon a certain salary for the risks of minister, a member of owned by the state catering company of entrepreneurship. be secretary of the cen- south Buda, which operates about 160 res- In lieu of a card he presented me with a graying hair was swept taurants and coffeehouses. "They decided to freshly printed sheet of stationery. It read: prominent, his shoul- rent out some to employees who had worked "DATACOM, Számítástechnika [Comput- eighted by more than a a long time with such companies. My wife er Technology]." He said there were three erience. and I had done so. There was a down pay- other partners in the company, that their cli- al reasons to say that ment, and monthly payments. We can buy ents were state-owned enterprises, from the re 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 an five years in prison. ing. "Before we took over the restaurant, it field, a lot of connections. Some companies the 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 ip of leaders who mis- ety, everything cooked to order. And before, state company got in trouble with a con- Communist Party and the restaurant was open only to 10 p.m.; tract. It needed a packaged program in one y misusing that name. now it is open to midnight or even 4 a.m., month, a very short deadline. No one want- eds attributed to these just as long as people stay." ed the job. They came to us." state that the Hungar- Now their goal was to build a large out- While building their business, the part- vere disappointed not side terrace: "If we get it, we will get tourist ners hold onto their old jobs. The company's but 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 W the revolt had been taurants, the government allowed it in other impossible to go on like this always. One ple wishing to reform areas, such as computer software. must choose. y, then was seized by And so one fine spring day I talked with "It's a little bit dangerous. The future is verthrow the socialist László Barthó, 37, who had the slightly hopeful. We do not know if there will be S crushed. This is the anxious expression of any man with a changes, and if so, in what direction. But the books. wife and two children who is planning to company is useful and good, and in it I feel graphic, 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 and cherished by Peter the Great, Tokaj his students; I expected an old, kindly, pos- (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 cellar in Budapest, a farm couple unpack a little supper. The standard of living in She remembers the d rural areas has steadily improved since the end of World War II, when the terrible fear that it w Communists dismantled a feudal-like system of large estates. Today every village the appearance of a is said to have electricity, though not every farmhouse has it. Mrs. Seifert pou clear and clean tasti a short woman, st diminished. "We hav gogues and prayerh greatest Jewish com rope. Perhaps 80,000 pital with 200 beds, kindergarten, a scho ters, and a kosher kito older people who ca themselves. And we ] logical Seminary, a such school remainin Europe. It has 18 stu Soviet Union, one from from the German Den The cost for all thes tions from the state, in ganizations, and the J Mrs. Seifert led m gogue, built in 1859 museum adjoining it, ject a small simple clot and the small garde Nazi legacy, a mass cube as a teaching aid. "Everything a teach- meeting rooms, a library, and an audito- think, 3,500 buried th er does is related to the teaching process." rium. Something about the auditorium With that backgro But a teacher is human like everyone else, seemed odd. It was, the official said, previ- peared good. The rena and he creates for himself as well as for oth- ously a synagogue; the new part of the build- gan after 1956. "Then ers. "I could say the reason I started to be ac- ing had been built around it. All over in our time it is not tive in this field is simply my own character. Hungary synagogues now serve such pur- somebody has written You could say it grew out of my profession. I poses. In them, if you have an imagination, a capital letter or with am an architect and an interior designer." you may hear a terrible cry. interesting if somebod Of his earnings (more than 30 million In 1944 German and Hungarian Nazis gious. What is importa 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 bega characterize the situation of other inventors perhaps 20,000 Jews remain outside Buda- By all rights, some also, I get a certain share of the sales. Of pest: not enough to keep the rural syna- should not be in Hung course, in the case of the cube, which is so gogues alive; only enough, perhaps, to guage is incomprehen popular, the profit is quite large." muster the required ten Jewish men for ser- bors, if their history has Yes, he has other ideas, new ones, and is vices in a prayerhouse. So the synagogues is their own doing. W pursuing them. Among them a book. were sold, for uses deemed appropriate. from? I talked with D The Jews of Budapest were luckier. Their Ethnographical Institu 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 Sovi ing the bauxite mines near Tapolca zis to eliminate them all, the Soviet Army "Here is the place, ju when an official led me proudly into fought its way into the city. Mrs. Ilona Sei- western Siberia: New the miners' social and educational center. It fert, secretary-general of the Central Board east, not west, of the was a fine new building with classrooms, of Hungarian Jews, was then a young girl, region was then a pin 252 National Geographic, February 1983 Hungary: A Different Co estined for a brewery cowering in a cellar with 84 other people. hunters and fishermen. They were a mix of living in She remembers the cellar door opening, the of Caucasian and Mongoloid. They are now II, when the terrible fear that it was a Fascist killer, then called the Finno-Ugric people. Today every village 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 W. ture? "Elements in our folkloric museum adjoining it, its most eloquent ob- 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 and an audito- think, 3,500 buried there," she said. illness, could locate lost or stolen goods, 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 new part of the build- gan after 1956. "Then Mr. Kádár said that that binds Hungarians together. Only 15 around it. All over in our time it is not interesting whether million people in the world speak it, the now serve such pur- somebody has written the name of God with nearly 11 million within Hungary, some have an imagination, a capital letter or with a small letter. It is not four million outside-among them perhaps cry. 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. 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 emain outside Buda- By all rights, some say, the Hungarians first time in the modern era, it lost by a treaty the rural syna- should not be in Hungary at all; if their lan- 71 percent of its territory, much of its popu- hough, 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," 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 ghetto was frustrat- Academy of Sciences. He jabbed a finger at would take from Hungary. I liked the street- 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 city. Mrs. Ilona Sei- western Siberia: New evidence places it in a row; the Bükk Mountains, lilliputian, of the Central Board east, not west, of those mountains. The with forests, castles, pine smells, and then as then a young girl, region was then a pine forest, the people you are out of them. Iliked Gypsy musicians, raphic, February 1983 Hungary: A Different Communism 253 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. February 1983 but you must be lingering over wine and with to the Tokaj wine region in the northeast, opposite. "I've just be friends (and perhaps two of those friends are where the Great Hungarian Plain meets my daughter-180,00 falling in love; he will give her earrings, she the Carpathian Mountains. The southern We'll open it soon. W will have her ears pierced). Iliked the young slopes of these mountains have been culti- cabbage and such, 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 just 1 uncorked plum brandy from his father's held 6,000 barrels; I sampled from 14. The yard. I have a nice hor house in Vugoslavia; the old lady who lived wines varied from clear, sharp new ones to retired factory worke alone and came each day just to sit quietly sweet, old, brownish ones, some made with "Here," he said, pu and hear voices and so hold on to life. raisinlike aszú grapes. As I sipped, very con- homemade sausage, Ilike Hungarian poetry, the way it evokes tentedly, a wine company official told me bread, and a knife. G the mystery of the land, and the way tragedy that about half of the vineyards were in pri- By now I knew the runs through it as rivers, creeks, and rivu- vate hands, with 14,000 owners. Grapes re- the sausage, drank the lets of rain run through the land itself. I like quire intensive seasonal work, he said. But a secular sacrament, 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- T TIMES I was o hearts of his countrymen with this bold chal- manding handwork. A country governe lenge to life, its blows, its demands: On the way back to Budapest I stopped at adopting aspect Without father without mother another famous wine-producing center, ism and Weste without God or homeland either Eger. In the little limestone valley where the the while wrapping t. without crib or coffin-cover caves cluster, I chose one at random: per- Marxist dialectic. I wo without kisses or a lover haps because the vintner, standing at its en- might help clarify mat trance, appeared rough cut, the cave simple. I called on Dr. Eler Even on journeys with only pleasure in As he drew the wine, the vintner talked of of the Center for Valu mind, I found more ways that individual business. "It's good. I sell to the Hilton. He pest. He is a youngish enterprise is harnessed in Hungary. I went pointed out across the valley to the caves quick in word and mo Shoulder to shoulder и highest ranking Soviet o in Hungary, third from I leading military and gou officials salute the year's officer corps at a Constit Day ceremony. Since the unsuccessful of 1956, when Soviet tar into Budapest, the party controlled government h strictly supported the So Union in foreign policy, as it experiments with so reforms at home. With four Soviet divis stationed in their countr Hungarians are worried unrest in Poland may up relations with Moscow. A chalked heart (right Budapest wall-still pod the gunfire of 27 years ag symbolizes the feeling th matter what, life will go 256 National Geographic, February 1983 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 been culti- cabbage and such, and even beautiful who learns this has learned the most impor- 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 made with "Here," he said, pulling from a paper bag what. And this is more or less working. It very con- homemade sausage, a slab of fat bacon, has been working for the past 20 years." told me bread, and a knife. Glasses were refilled. There were at least two results. One 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- by the ative farms and those in the second or pri- the de- 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. I stopped at adopting aspects of Western capital- All behind the scenes." center, ism and Western socialism, and all And there was an important sociological where the the while wrapping the reforms in veils of result, a sort of healing. "Before World War andom: per- Marxist dialectic. I wondered if a sociologist II we had very strong class identities. After at its en- might help clarify matters. that war these identities were destroyed, cave simple. I called on Dr. Elemér Hankiss, director consciously and surgically, by the Commu- talked of of the Center for Value Sociology in Buda- nist Party at that time. Everybody was mor- 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, Lőrinc. 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 ZL-20-11 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 "Wi my of t ing of 8 identit can ac have b three o O Si I I S comple me at I long th - 80, the conclud circums revolut house Budap He Mr. Cake the writer, and sor in 1 has be s) long ag geous p But for Hungar work, if they cai As fo feature Hungar country very mu ficial pa od, and any feel perhaps this mea Laid-ba horses m 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 Davis PRESIDENT'S DEPARTURE REMARKS AT BUDAPEST AIRPORT July 13, 1989 LADIES AND GENTLEMEN: I WOULD LIKE FIRST TO THANK THE PEOPLE OF HUNGARY FOR THE WARMTH OF THEIR HOSPITALITY TO BARBARA AND ME. THIS HAS BEEN A VERY ENJOYABLE VISIT FOR BOTH OF US. DURING THE PAST TWO DAYS, WE HAVE BEEN MEETING WITH HUNGARIANS OF ALL WALKS OF LIFE POLITICAL LEADERS OF THE PRESENT AND, PERHAPS, THE FUTURE; STUDENTS; WORKING PEOPLE. AND I WOULD LIKE TO SAY THAT WE HAVE BEEN LISTENING AS WELL AS TALKING; LISTENING TO PEOPLE EXPRESS THEIR HOPES AND THEIR CONCERNS ABOUT THE FUTURE OF THIS COUNTRY. WE AMERICANS SHARE THOSE HOPES AND THOSE CONCERNS. THERE IS A CHINESE SAYING: "MAY YOU LIVE IN INTERESTING TIMES." AS WE HAVE so SADLY SEEN RECENTLY IN CHINA, THERE IS A LOT OF TRUTH IN THAT SAYING. CHANGE CAN BRING INSTABILITY AND INSTABILITY CAN BRING DANGER. BUT WITHOUT CHANGE, NOTHING IMPROVES, AND THIS ITSELF WILL LEAD TO CERTAIN DISASTER. HUNGARY IS ON THE RIGHT ROAD, THE ROAD OF PEACEFUL REFORM IN BOTH THE ECONOMIC AND THE POLITICAL SPHERES. IT IS THE WAY OUT OF THE STAGNATION OF THE PAST, OF THE SUPPRESSION OF THE ASPIRATIONS OF THE PEOPLE FOR A BETTER LIFE. YOU HAVE NO REAL CHOICE BUT TO MOVE FORWARD TOGETHER. THE AMERICAN PEOPLE JOIN ME IN WISHING YOU GOOD LUCK IN THIS ENDEAVOR AND IN TELLING YOU THAT WE ARE WITH YOU. GOD BLESS YOU. MarkD PRESIDENTIAL ADDRESS: KARL MARX UNIVERSITY JULY 12, 1:15 P.M. LADIES AND GENTLEMEN, DR. CSAKI (CHAH-KEE). IT'S A PLEASURE TO BE BACK IN BUDAPEST, AND I AM PROUD TO BE THE FIRST AMERICAN PRESIDENT TO VISIT HUNGARY. SOME MIGHT FIND IT IRONIC THAT I AM SPEAKING AT A UNIVERSITY NAMED AFTER KARL MARX. BUT THE FACT THAT I AM HERE TODAY IS LESS A CAUSE FOR SURPRISE THAN PROOF THAT AMERICA WELCOMES THE UNFETTERED COMPETITION OF IDEAS. THE UNIVERSITY'S PRINCIPAL TASK IS TO PROMOTE THIS COMPETITION. THAT IS THE SPIRIT THAT BRINGS US TOGETHER -- - A SPIRIT THAT GUIDED A GREAT TEACHER AT KARL MARX UNIVERSITY, WHOSE NAME WAS IMRE (EEMH-RAY) NAGY (NUDGE). ((PAUSE)) - 2 - AS HIS FUNERAL PROCEEDED IN HEROES' SQUARE A FEW WEEKS AGO, THE RISING VOICE OF HUNGARY WAS HEARD RECITING THE SZOZAT [SO-ZAT]. AND IN THIS SIMPLE, SOMBER CEREMONY, THE WORLD SAW SOMETHING MORE THAN A DIGNIFIED ACT OF RECONCILIATION. WE WITNESSED AN ACT OF TRUTH. IT IS ON THIS FOUNDATION OF TRUTH, MORE SOLID THAN STONE, THAT HUNGARIANS HAVE BEGUN TO BUILD A NEW FUTURE A GENERATION WAITED TO HONOR IMRE (EEMH-RAY) NAGY'S (NUDGE'S) COURAGE; MAY A HUNDRED GENERATIONS REMEMBER IT. WHILE HUNGARY REDISCOVERS ITS NATURAL ROLE IN THE AFFAIRS OF EUROPE, THE WORLD AGAIN LOOKS TO YOU FOR INSPIRATION. A POPULAR NON-FICTION BOOK IN MY COUNTRY TODAY IS ENTITLED BUDAPEST 1900. DR. JOHN LUKACS LOVINGLY DESCRIBES THE BUDAPEST OF MEMORY, WITH ITS PROUD STOCK EXCHANGE AND GREAT OPERA; A TIME WHEN EUROPE'S FIRST ELECTRIC SUBWAY RAN UNDERNEATH THE HANDSOME SHOPS OF ANDRASSY AVENUE. - 3 - A CITY THAT RIVALED PARIS IN ITS SPLENDOR VIENNA IN ITS MUSIC LONDON IN ITS LITERATURE. A CENTER OF LEARNING THAT ENLIGHTENED THE WORLD, AND GAVE AMERICA ONE KIND OF GENIUS IN JOSEPH PULITZER, AND ANOTHER IN BELA BARTOK. BUT FOR FOUR DECADES, THIS GREAT CITY, THIS GREAT NATION, so CENTRAL TO THE CONTINENT IN EVERY RESPECT, HAS BEEN SEPARATED FROM EUROPE AND THE WEST. TODAY HUNGARY IS OPENING AGAIN TO THE WEST -- BECOMING A BEACON OF LIGHT IN EUROPEAN CULTURE. I SEE PEOPLE IN MOTION. I SEE COLOR, CREATIVITY, EXPERIMENTATION. I SEE A NEW BEGINNING FOR HUNGARY . THE VERY ATMOSPHERE OF BUDAPEST IS ELECTRIC, ALIVE WITH OPTIMISM. YOUR PEOPLE AND YOUR LEADERS -- GOVERNMENT AND OPPOSITION ALIKE - ARE NOT AFRAID TO BREAK WITH THE PAST, TO ACT IN THE SPIRIT OF TRUTH. AND WHAT BETTER EXAMPLE OF THIS COULD THERE BE THAN ONE SIMPLE FACT: KARL MARX UNIVERSITY HAS DROPPED DAS KAPITAL FROM ITS REQUIRED READING LIST ... - 4 - SOME HISTORIANS ARGUE THAT MARXISM AROSE OUT OF A HUMANE IMPULSE. BUT KARL MARX TRACED ONLY ONE THREAD OF HUMAN EXISTENCE, AND MISSED THE REST OF THE TAPESTRY -- THE COLORFUL AND VARIED TAPESTRY OF HUMANITY. MARX REGARDED MAN AS HAPLESS --UNABLE TO SHAPE HIS ENVIRONMENT OR DESTINY. BUT MAN IS NOT DRIVEN BY IMPERSONAL ECONOMIC FORCES. HE IS NOT SIMPLY AN OBJECT ACTED UPON BY MECHANICAL "LAWS" OF HISTORY. RATHER, MAN IS IMAGINATIVE AND INVENTIVE. HE IS ARTISTIC, WITH AN INNATE NEED TO CREATE AND ENJOY BEAUTY. HE IS A LOVING MEMBER OF A FAMILY, AND A LOYAL PATRIOT TO HIS PEOPLE. MAN IS DYNAMIC, DETERMINED TO SHAPE HIS OWN FUTURE. THE CREATIVE GENIUS OF THE HUNGARIAN PEOPLE, LONG SUPPRESSED, IS AGAIN FLOURISHING IN YOUR SCHOOLS, YOUR BUSINESSES, YOUR CHURCHES. THIS IS MORE THAN A FLEETING SEASON OF FREEDOM. IT IS HUNGARY RETURNING TO ITS TRADITIONAL VALUES. IT IS HUNGARY RETURNING HOME. - 5 - VOICES LONG STILLED ARE BEING HEARD AGAIN. AN INDEPENDENT DAILY NEWSPAPER IS NOW SOLD ON THE STREETS. COMMERCIAL RADIO AND TELEVISION STATIONS WILL BROADCAST EVERYTHING FROM THE NEWS ... TO THE MUSIC OF STEVIE WONDER. AND RADIO FREE EUROPE IS OPENING ITS FIRST EAST EUROPEAN BUREAU RIGHT HERE IN BUDAPEST. ALONG YOUR BORDER WITH AUSTRIA, THE UGLY SYMBOL OF EUROPE'S DIVISION AND HUNGARY'S ISOLATION IS COMING DOWN, AS THE BARBED WIRE FENCES ARE ROLLED AND STACKED INTO BALES. FOR THE FIRST TIME, THE IRON CURTAIN HAS BEGUN TO PART. AND HUNGARY IS LEADING THE WAY. THE SOVIET UNION HAS WITHDRAWN TROOPS, WHICH I ALSO TAKE AS A STEP IN OVERCOMING EUROPE'S DIVISION. AND AS THOSE FORCES LEAVE, LET THE SOVIET LEADERS KNOW THEY HAVE EVERYTHING TO GAIN, AND NOTHING TO LOSE OR FEAR, FROM PEACEFUL CHANGE. WE CAN WORK TOGETHER TO MOVE BEYOND CONTAINMENT, BEYOND THE COLD WAR. - 6 - ONE OF THE KEY STEPS IN MOVING BEYOND CONTAINMENT IS EASING THE MILITARY CONFRONTATION IN EUROPE. TO THIS END, THE NATO ALLIES JOINED, AT THE MAY SUMMIT MEETING, IN MY PROPOSAL OF A COMPREHENSIVE CONVENTIONAL ARMS CONTROL INITIATIVE -- AN INITIATIVE THAT WOULD CUT THE NUMBERS OF TANKS, ARMORED TROOP CARRIERS, ARTILLERY, COMBAT AIRCRAFT, ATTACK HELICOPTERS, AS WELL AS U.S. AND SOVIET TROOPS STATIONED ON FOREIGN SOIL IN EUROPE -- ALL TO LOWER, EQUAL LEVELS. THE ISSUES MAY BE COMPLEX, BUT WE ARE WORKING, DAY AND NIGHT, TO GET A SOLID, HISTORIC AGREEMENT TO STRENGTHEN STABILITY IN EUROPE AND REDUCE THE RISK OF WAR. AND WE ARE DETERMINED TO GET IT SOON. THERE IS NO MISTAKING THE FACT THAT WE ARE ON THE THRESHOLD OF A NEW ERA. AND THERE IS ALSO NO MISTAKING THE FACT THAT HUNGARY IS AT THE THRESHOLD OF GREAT AND HISTORIC CHANGE. YOU ARE WRITING A REAL CONSTITUTION - - AND YOU ARE MOVING TOWARD DEMOCRATIC, MULTI-PARTY ELECTIONS. - 7 - THIS IS PARTLY POSSIBLE BECAUSE BRAVE MEN AND WOMEN HAVE FORMED OPPOSITION PARTIES. AND THIS IS POSSIBLE BECAUSE HUNGARIAN LEADERS ARE GOING TO SHOW THE ULTIMATE POLITICAL COURAGE -- THE COURAGE TO SUBMIT TO THE CHOICE OF THE PEOPLE IN FREE ELECTIONS. BUT TO SUCCEED IN REFORM, YOU WILL NEED PARTNERS - - PARTNERS TO HELP PROMOTE LASTING CHANGE IN HUNGARY. I AM HERE TO OFFER HUNGARY THE PARTNERSHIP OF THE UNITED STATES OF AMERICA. THREE VITAL SPHERES STAND OUT IN OUR PARTNERSHIP - - ECONOMICS, THE ENVIRONMENT, AND DEMOCRATIC AND CULTURAL EXCHANGE. INVESTMENT IN HUNGARY THE UNITED STATES BELIEVES IN THE ACCELERATION OF PRODUCTIVE CHANGE, NOT IN ITS DELAY. SO THIS OUR GUIDING PRINCIPLE -- THE UNITED STATES WILL OFFER ASSISTANCE NOT TO PROP UP THE STATUS QUO, BUT TO PROPEL REFORM. - 8 - OF COURSE, THE WEIGHT OF THE PAST STILL BURDENS HUNGARIAN ENTERPRISE. THERE ARE REMNANTS OF THE STALINIST ECONOMY -- HUGE, INEFFICIENT INDUSTRIAL PLANTS; A BEWILDERING PRICE SYSTEM NO ONE UNDERSTANDS; THE MASSIVE SUBSIDIES THAT CLOUD ECONOMIC DECISIONS -- ALL OF THIS SLOWS WHAT YOU COULD OTHERWISE ACHIEVE. IT'S AN ECONOMIC RUBIK'S CUBE THAT DEFIES SOLUTION. TO MAKE THE TRANSITION TO A PRODUCTIVE ECONOMY WILL TEST YOUR METTLE AS A PEOPLE. THE PRICES OF SOME COMMODITIES MAY RISE. SOME INEFFICIENT FACTORIES WILL CLOSE. BUT THE HUNGARIAN GOVERNMENT IS INCREASINGLY LEAVING THE BUSINESS OF RUNNING SHOPS TO SHOPKEEPERS AND FARMS TO FARMERS. AND THE CREATIVE DRIVE OF THE PEOPLE, ONCE UNLEASHED, WILL CREATE A MOMENTUM OF ITS OWN. THIS WILL BRING YOU A GREATER TREASURE THAN SIMPLY THE RICHES YOU WILL CREATE. IT WILL GIVE EACH OF YOU CONTROL OVER YOUR DESTINY A HUNGARIAN DESTINY. AND, AS I SAID, THE UNITED STATES WILL BE YOUR PARTNER IN THIS TRANSFORMATION TO A SUCCESSFUL ECONOMY. - 9 - LAST THURSDAY, I INVITED AMERICAN LEADERS FROM BUSINESS, EDUCATION, LABOR AND OTHER FIELDS -- TO COME TO THE WHITE HOUSE AND DISCUSS THE NEW PRIVATE SECTOR OPPORTUNITIES OPENING UP IN HUNGARY. THEIR RESPONSE WAS ENTHUSIASTIC. THIS WAS ESPECIALLY TRUE OF HUNGARIAN-AMERICANS, SO PROUD TO BE BUILDING A BRIDGE BETWEEN THEIR NEW COUNTRY AND THEIR MOTHERLAND. AS LONG AS OUR TWO GOVERNMENTS EASE THE WAY, THE PEOPLE OF AMERICA AND HUNGARY CAN DO THE REST. IT IS IN THIS SPIRIT THAT I ANNOUNCE THE FOLLOWING MEASURES. FIRST, AS I SAID IN WARSAW, I WILL PROPOSE AT THE PARIS ECONOMIC SUMMIT CONCERTED WESTERN ACTION FOR POLAND AND HUNGARY, TO BACK YOUR REFORMS WITH ECONOMIC AND TECHNICAL ASSISTANCE FROM THE SUMMIT PARTNERS. OF COURSE, OUR EFFORTS FOR HUNGARY WILL BE TARGETED TO YOUR NEEDS. - 10 - SECOND, I WILL ASK THE U.S. CONGRESS TO AUTHORIZE A $25 MILLION FUND AS A SOURCE OF NEW CAPITAL TO INVIGORATE THE HUNGARIAN PRIVATE-SECTOR. I WILL ALSO ENCOURAGE PARALLEL EFFORTS FROM THE OTHER NATIONS OF THE ECONOMIC SUMMIT. THIRD, ONCE YOUR PARLIAMENT PASSES THE NEW EMIGRATION LEGISLATION PROPOSED BY YOUR COUNCIL OF MINISTERS, I WILL INFORM OUR CONGRESS THAT HUNGARY IS IN FULL COMPLIANCE WITH THE JACKSON-VANIK AMENDMENT TO OUR 1974 TRADE LAW. NO COUNTRY HAS YET BEEN RELEASED FROM THE RESTRICTIONS OF THIS AMENDMENT. SO I AM PLEASED TO TELL YOU THAT HUNGARY WILL BE THE FIRST. ((PAUSE)) THIS ACTION WILL GIVE HUNGARY THE MOST LIBERAL ACCESS TO THE AMERICAN MARKET FOR THE LONGEST TERM POSSIBLE UNDER OUR LAWS. FOURTH, AMERICA IS PREPARED TO PROVIDE YOUR COUNTRY WITH ACCESS TO OUR GENERALIZED SYSTEM OF PREFERENCES, WHICH OFFERS SELECTIVE TARIFF RELIEF. SIMPLY PUT, THESE LAST TWO MEASURES WILL ALLOW YOU TO TAKE ADVANTAGE OF THE LARGEST SINGLE MARKET IN THE WORLD. - 11 - FIFTH, WE HAVE CONCLUDED A DRAFT AGREEMENT TO AUTHORIZE THE OVERSEAS PRIVATE INVESTMENT CORPORATION TO OPERATE IN HUNGARY. ONCE OUR SENATE PASSES ENABLING LEGISLATION, OPIC WILL BE ABLE TO PROVIDE INSURANCE TO ENCOURAGE AMERICAN INVESTMENT IN PRIVATE ENTERPRISES IN HUNGARY. THROUGH OPIC, AMERICAN BUSINESS EXECUTIVES WILL SEE FIRSTHAND THE GREAT OPPORTUNITY OF HUNGARY. PRIVATE INVESTMENT IS CRITICAL FOR HUNGARY. IT MEANS JOBS, INNOVATION, PROGRESS. BUT MOST OF ALL, PRIVATE INVESTMENT MEANS A BRIGHTER FUTURE FOR YOUR CHILDREN; A BRIGHTER FUTURE FOR HUNGARY. - 12 - ENVIRONMENTAL INITIATIVE YET ECONOMIC PROGRESS CANNOT BE AT THE EXPENSE OF THE AIR WE BREATHE AND THE WATER WE DRINK. SIX WEEKS AGO, IN MAINZ, I PROPOSED COOPERATION BETWEEN EAST AND WEST ON ENVIRONMENTAL ISSUES. THAT IS WHY I WILL ASK THE U.S. CONGRESS TO APPROPRIATE $5 MILLION TO ESTABLISH AN INTERNATIONAL ENVIRONMENTAL CENTER FOR CENTRAL AND EASTERN EUROPE, TO BE BASED IN BUDAPEST, WHICH WILL BRING TOGETHER PRIVATE AND GOVERNMENT EXPERTS AND ORGANIZATIONS TO ADDRESS THE ECOLOGICAL CRISIS. OUR SHARED HERITAGE IS THE EARTH. AND THE FATE OF THE EARTH TRANSCENDS BORDERS; IT IS NOT JUST AN EAST-WEST ISSUE. HUNGARY HAS LED EASTERN AND CENTRAL EUROPE IN ADDRESSING THE CONCERNS OF YOUR CITIZENS FOR CLEANER AIR AND WATER. NOW YOU CAN DO EVEN MORE, WORKING WITH THE WEST TO BUILD A BRIDGE OF TECHNICAL AND SCIENTIFIC COOPERATION. - 13 - ALONG THESE LINES, I AM ALSO PLEASED TO ANNOUNCE THAT THE U.S. HAS PROPOSED AN AGREEMENT BETWEEN OUR TWO COUNTRIES TO ESTABLISH SCIENTIFIC AND TECHNICAL COOPERATION IN THE BASIC SCIENCES, AND IN SPECIFIC AREAS, INCLUDING THE ENVIRONMENT, MEDICINE AND NUCLEAR SAFETY. DEMOCRATIC AND CULTURAL EXCHANGE IT IS MY HOPE THAT THIS VISIT WILL ALSO LEAD TO A WIDER EXCHANGE BETWEEN EAST AND WEST, SO OUR SCIENTISTS, OUR ARTISTS AND OUR ENVIRONMENTALISTS CAN LEARN FROM ONE ANOTHER SO THAT OUR SOLDIERS AND STATESMEN CAN DISCUSS PEACE AND OUR STUDENTS CAN DISCUSS THE FUTURE. ((PAUSE)) - 14 - BUT TO DISCUSS ANYTHING REQUIRES A COMMON LANGUAGE. THE TEACHING OF ENGLISH IS ONE OF THE MOST POPULAR AMERICAN EXPORTS. AS STUDENTS YOU KNOW THAT ENGLISH IS THE LINGUA FRANCA OF WORLD BUSINESS, THE KEY TO CLINCHING DEALS FROM HONG KONG TO TORONTO. SO TO OPEN THE GLOBAL MARKET TO MORE HUNGARIANS, I AM PLEASED TO ANNOUNCE THAT THE PEACE CORPS WILL, FOR THE FIRST TIME, OPERATE IN A EUROPEAN COUNTRY. AND OUR PEACE CORPS INSTRUCTORS WILL COME TO BUDAPEST AND ALL 19 COUNTIES TO TEACH ENGLISH. - 15 - IN SUCH EXCHANGES, WE WANT TO HELP YOU IN YOUR QUEST FOR A NEW BEGINNING AS A DEMOCRATIC HUNGARY. SO THE UNITED STATES IS ALSO COMMITTING MORE THAN $6 MILLION TO CULTURAL AND EDUCATIONAL OPPORTUNITIES IN EASTERN EUROPE. WE WILL MAKE AVAILABLE FUNDS FOR A SERIES OF MAJOR NEW U.S. -HUNGARIAN EXCHANGE PROGRAMS -- AMONG CONGRESSMEN AND LEGISLATIVE EXPERTS, AMONG LABOR AND BUSINESS LEADERS, AMONG LEGAL EXPERTS, AMONG COMMUNITY LEADERS, EDUCATORS AND YOUNG PEOPLE. WE ARE CREATING DOZENS OF FELLOWSHIPS TO ENABLE HUNGARIANS TO STUDY AT AMERICAN UNIVERSITIES. AND WE WILL FUND ENDOWED CHAIRS IN AMERICAN STUDIES AT YOUR UNIVERSITIES AND BOOKS -- MANY THOUSANDS OF THEM -- TO FILL THE SHELVES OF YOUR NEW INTERNATIONAL MANAGEMENT CENTER AND THE LIBRARIES OF SCHOOLS AND UNIVERSITIES ACROSS HUNGARY. THE UNITED STATES WILL ALSO OPEN, WITHIN THE NEXT SEVERAL YEARS, AN AMERICA HOUSE IN THE CENTER OF BUDAPEST. TODAY, THE CELEBRATED AMERICAN ARCHITECT ROBERT STERN IS RELEASING HIS DESIGN FOR THIS CENTER, WHICH WILL BE AN OPEN HOUSE OF BOOKS, MAGAZINES AND VIDEOCASSETTES -- AN OPEN HOUSE OF IDEAS. - 16 - CONCLUSION IN ECONOMIC REFORM AND DEMOCRATIC CHANGE, IN CULTURAL AND ENVIRONMENTAL COOPERATION, THERE ARE GREAT OPPORTUNITIES -- AND GREAT CHALLENGES. HUNGARY HAS A LOT OF WORK AHEAD; so DO THE UNITED STATES AND HUNGARY, WORKING TOGETHER TO BUILD A BETTER FUTURE -- A DYNAMIC FUTURE. YOUR CHALLENGE IS ENORMOUS AND HISTORIC: TO BUILD A STRUCTURE OF POLITICAL CHANGE AND DECENTRALIZED ECONOMIC ENTERPRISE ON THE RUINS OF A FAILED STALINIST SYSTEM. GIVEN THE OPPORTUNITY TO SHOW YOUR CHARACTERISTIC INITIATIVE, CREATIVITY AND RESOURCEFULNESS, I BELIEVE THAT THE HUNGARIAN PEOPLE WILL MEET THE CHALLENGE. YOU STAND ON THE THRESHOLD OF A NEW ERA OF ECONOMIC DEVELOPMENT AND POLITICAL CHANGE. - 17 - I BELIEVE YOU ARE READY TO MEET THE FUTURE. I SEE A COUNTRY WELL ON THE WAY. I SEE A COUNTRY RICH IN HUMAN RESOURCES AND RICH IN THE MORAL COURAGE OF ITS PEOPLE. I SEE A NATION TRANSCENDING ITS PAST AND REACHING OUT TO ITS DESTINY. I CONGRATULATE YOU FOR HAVING COME so FAR. LET US BE EQUAL TO THE OPPORTUNITY THAT LIES BEFORE US. LET US HAVE HISTORY WRITE OF US THAT WE WERE THE GENERATION THAT MADE EUROPE WHOLE AND FREE. THANK YOU. # # # WASH.POST:04-25-89 Hungary's Party Chief, Premier in Public Row 183p By Imre Karacs al. "Who La Telling the Truth?" asked ring to the party's policy-making Special to The Washington Post a headline in today's official Buda- body. He claimed, however, that the pest daily, Magyar Nemzet. prime minister had backed him. "In BUDAPEST, April 24-A public The rift between the two politi- the government, Miklos Nemeth did row between the leader of Hungary's cians comes at a bad time for Grosz, have such ambitions, because this is ruling Communist Party and the as advocates of radical reform within why be set up his [inner] cabinet," country's prime minister escalated the party are seeking to oust him and Grosz concluded. today as the Budapest party leader- other party leaders they perceive as But the broadcast offered no hint ship called on the two men to clarify too conservative. Grosz came in for of what sort of emergency Grosz had their recent statements on the need heavy criticism at a meeting of re- in mind and left listeners confused to introduce a "state of emergency in formists a week ago in the town of about the extent of his support. Ne- the economy." Kecskemet, and a campaign was meth's reaction was swift. "The The row erupted Saturday, when launched to convene an emergency prime minister has authorized us to in a casual comment to young party party conference with the power to declare that he never. had any such members, party chief Karoly Grosz oust him. ambitions," Budapest Television's said he had recently tried to per- Budapest Radio today broadcast a evening news program announced. suade the party's governing Politbu- recording of Grosz's Saturday re- For good measure, Nemeth tele- ro to declare a "state of emergency marks, in which he said, "I see the phoned Budapest Radio today to con- in the economy." He claimed he had situation ripe for the introduction of firm his position, saying he was so lost a vote on the matter in the 11- a state of emergency in the econo- opposed to Grosz's idea that he man Politburo, but that Miklos Ne- my" but added that this would not be voted against him in the Politburo. meth, the prime minister and a Po- a "military move." Nemeth's remarks appeared to litburo member, had supported him. needs to be slowed down here." put him on a collision course with When Nemeth heard about "A few weeks ago, my own Polit- Grosz, whose backing was respon- Grosz's remark, he telephoned Hun- buro voted against this suggestion of sible for his rapid rise from the mid- garian television and angrily denied mine, so I did not submit it to the dle ranks of the party to his present that he ever favored Grosz's propos- Central Committee." he said, refer- position as government leader. N.Y.TIMES:04-25-89 HUNGARIAN TELLS OF DEMOCRATIC AIM High Aide Disavows Marxism and Cites Plans for New Parties and Pluralism 1830 By HENRY KAMM Special to The New York Times BUDAPEST, April 24 - An impor- tant Government and Communist Party official told a group of reporters, most of them Westerners, today that the establishment of genuine democ- racy was Hungary's main goal. The official, Gyula Horn, said his country's top priority was "to institu- tionalize pluralism and establish a real role for Parliament." Mr. Horn said another goal at the top of the leadership's agenda was to adopt the European tradition of maximum political freedom. He said there was no difference between "bourgeois and so- cialist criteria for democracy and human rights." Mr. Horn holds the title of State Sec- retary in the Foreign Ministry and is a member of the party's central commit- tee. Diplomats consider him the right hand of the party's General Secretary, Karoly Grosz, in dealing with the major Eastern and Western powers in Hungary's efforts to gain support as it navigates through grave economic, so- cial and political difficulties. Speaks at Italian Meeting Mr. Horn spoke at a news conference held in connection with a congress of Italy's Radical Party. The party, which represents anti-establishment views similar to West Germany's Greens, is holding its convention here in recogni- tion of Hungary's recent progress away from orthodox Communism. The Hungarian official spoke with considerable candor of the need for change. "The end result must be of revolutionary nature," he said. "Any attempt at undermining reform would be counter-revolutionary." He said the Hungarian socialism that is the object of the present liberaliza- tion campaign was not Marxist. "In fact, we discredit the ideas of Marx," Mr. Horn added. He listed as the three main criteria of socialism equality of opportunity, democracy and solidarity among social strata and on the interna- tional scene. "The relationships of the ownership of property are not an indispensable feature of socialism," Mr. Horn said. Mr. Horn said that in 1949, with a pluralist structure in place, "we liqui- dated it." He continued: "For decades, this made impossible the enforcement of democracy. All that we did is that we called 'socialist democracy' that which in a real sense was not democracy but a party and state monopoly." PERSPECTIVES ON EASTERN EUROPE Reformers Are Asking: Where Do We Go From Here? 183 The latest Hungarian reform was a so-called "re- sion with a new, ideological Iron Curtain, falling not form workshop" that recalled the great open forums of this time across Europe as a whole but dividing the By Eric Bourne Czechoslovakia's 1968 Prague Spring. They were communist area itself. On one side are Hungary and short-lived. These, however, are different times. Poland (backed by the Soviet Union), on the other East It was a communist "workshop," called by the Polit- Germany, Czechoslovakia, Romania, and Bulgaria. A EVOLUTION is in the air in the East bloc. R buro's two most forward-looking and articulate mem- conflict of words begins to flow across this new curtain In the Soviet Union, perestroika is surely break- bers, Rezso Nyers and Imre Pozsgay. Also attending the as much as over the East-West divide of old. ing revolutionary ground. Mikhail Gorbachev's workshop were three other members and 500 lower- People in all these nations know only too well the policies of restructuring are undoing most of what was ranking officials and party members, plus some promi- system's inefficiencies. But only the Poles and the Hun- established during the Stalinist period and much too of nent noncommunist intellectuals. garians have challenged it. The rest have yet to stir, and Lenin's revolution of 1917. It was a unique occasion. There was an electrifying their regimes are doing everything they can, however Poland's extraordinary accord between a communist debate bluntly postulating a "peaceful" split in the repressive, to ward off threats to the system. regime and the independent trade union Solidarity is party itself. Two-thirds of the present membership Gorbachev certainly approved but he did not initiate nothing short of a Polish revolution. (780,000). it was said, should form a "reform party, the Polish accord, nor prompt the Hungarians to go flat Events in Hungary, however, transcend everything. leaving the rest to preserve -- if they could - an ortho- out for the multiparty system. In each case change was Russians, after unprecedented elections, and Poles, dox Communist Party to compete for power with all the forced on local leaderships by deteriorating internal after their agreement, seemed to take a pause to pon- other pluralist groups. conditions and similar forces must in time propel the der: "And where do we go from here?" But Hungar- reluctant ones toward change. ians, both within the party and outside it, are in a hurry. 'W HERE do we go from here?" Indeed It is all part of what former French President Valéry In the last year they have had a nonstop round of Market economies and democracy alone Giscard Estaing has just termed "the post-cold-war legislative reform and won liberties more sweeping cannot solve these East-bloc crises. Even period" which West and East enter together with a than envisaged by the failed revolt of 1956. Yet there is with Western help, more hardship, not less, must be mutual responsibility. no slackening of demand. Most recently, the Politburo endured by the Hungarian public before the benefits Discerning East European reformers see it 100 as a was cleansed of four members whose reform credentials from reform policies begin to accrue. situation in which the West can best help. not by talking were either suspect or lukewarm. The nine-member Meanwhile, with all the changes. one urgent ques- glibly about "reversing" the Yalta agreement, but by body is now in the hands of the "revolutionaries." tion remains. That question - boldly acknowledged in seeking a process of adjusting a mischievous wartime Mr. Gorbachev, promoting democracy in the Soviet Budapest and feared just as much in Warsaw is simply agreement to the needs of the the contemporary world. Union, sedulously invokes Lenin. It is doubtful, how- whether stability and social patience can be maintained This adjustment, they say, would encourage reform ever, if the latter - could he offer an opinion - would that long. anywhere in Eastern Europe, without disturbing super- endorse everything done in the name of perestroika. Events meanwhile also are creating an added dimen- power balance and trust. TIMES 04-26-89 Goodbye 178/1830 and Ciao to Soviet Tanks in Hungary By HENRY KAMM 50,000 of its troops from Hungary, East So tolerant were the Soviet efficers Special to The New York Times Germany and Czechoslovakia. At the that they appeared to take a bewil- KISKUNHALAS, Hungary, April 25 same time, Mr. Gorbachev said the dered pleasure in the unexpected pres- Soviet Union would demobilize 500,000 ence of llona Staller, a member of the - The Soviet Union began today to carry out Mikhail, S. Gorbachev's of its total armed personnel and deacti- Italian Parliament of Hungarian birth, premise to withdraw some of its mili- vate 10,000 tanks. who has become known throughout Eur tary forces from countries of the War- The departure today, believed to be rope by reverting at public occasions to the first in any of the three affected her former professions of strip-tease sawPact. Thirty-one heavy tanks of the 13th countries, was staged by the Soviet artist and pornographic-movie actress. Guards Armored Division were loaded command in Hungary for maximal Miss Staller is in Hungary for a con- onto flatbed cars at a rail siding outside publicity. gress that the Italian Radical Party, this provincial town 90 miles south of Foreign reporters and television which she represents, is holding in Budapest and left in the direction of the crews, mainly from the West, were Budapest. Col. Boris Y. Adamenko, Sovie Ukraine. warmly greeted by English-speaking deputy chief of staff of the southern freaking at United Nations last Dec. officers and allowed to clamber over group of Soviet forces, raised no objec- 7, NEW Gorbachev, the Soviet leader, the tanks and railroad cars, photo- tion when Miss Staller, wearing a pledged that Moscow would withdraw graphing at will. wreath of wilted flowers in her long blond hair, distracted attention by pos- ing and mugging beside him into the cameras as he made the official an- nouncement of the departure. At the command of Italian photogra- phers, Miss Staller released a white dove of peace at the side of the train, only to watch the frightened bird tum- ble into the fatal treads of a moving tank. Only 18 soldiers accompanied the T-64 main battle tanks, armed with 125- millimeter cannon, to the Soviet Union. The withdrawal of troops is to begin next month. By some time next year, more than 10,000 Soviet soldiers are to have left Hungary. Western military experts estimate the number of Soviet troops in Hungary at between 62,000 and 70,000. The tanks that left today are the first of 450 to be withdrawn from the country. an era of our relations with Western Europe is closed." WASH.POST:05-03-89 - Interior Ministry official Andras Kovari CZECHOSLOVAKIA Vienna Hegyeshalom AUSTRIA Sopron Koszeg Budapest HUNGARY Szentgotthard YUGOSLAVIA 0 100 MILE S ASSOCIATED PRESS Hungariam troms roll up wire fencing that has separated them from Austria for 20 years. It replaced a mine field. BY CLARICE BORIO-THE WASHINGTON POST Hungary Tears 183/173 Down "Iron Curtain' With Austria Reuter expansionism. "From Stettin in the Baltic to Tri- Hungarians feel much better that we no longer este in the Adriatic," Churchill told an audience have such an old-fashioned border with the HEGY ESHALOM, Hungary, May 2-Hunga- in Fulton, Mo., "an iron curtain has descended West," he said. "It will help Hungary's interna- ry begam a synbolic dismantling of the "Iron Cur- across the continent." tional relations." tain" that hasdivided Europe for four decades as Reformist Minister of State Imre Pozsgay said While Hungarians have been able to travel it started to remove a barbed-wire fence on its in October that the fence had become outdated abroad freely since Eastern Europe's most lib- border with Austria today. historically, politically and technically. Disman- eral passport law was introduced last year, Aus- "With the dissmantling of this barrier, an era of tling began in the no man's land near this small tria has mixed feelings about the dismantling of our relations with Western Europe and partic- town on the main road between Budapest and the fence. ularly Austriais closed," Interior Ministry official Vienna and at three other points: Koszeg, So- In Vienna, Foreign Ministry spokesman Wal- Andras Kovai told a news conference. pron and Szentgotthard. ter Greinert said Austria regarded the move as a The 20-year-old barbed-wire barrier replaced Journalists watched as soldiers with sledge- "very positive sign." But Austrian government a mine field hid after the Communist takeover of hammers disconnected the alarm system. lifted sources fear that other East Europeans, espe- Hungary in the late 1940s. six-foot posts and rolled up wire. cially Romanians now flooding into Hungary. be- The phrase "Iron Curtain" was coined by for- The head of the border guards. Col. Balazs cause of ethnic strife, could use Hungary as an mer Britishgrime minister Winston Churchill in Novaky, said he hoped the entire 150-mile fence easy transit route to the West by simply walking a 1946 spech discussing the dangers of Soviet would be removed by the end of 1990. "It makes into Austria. TIMES 05-04-89 ESSAY I William Safire Salami Tactics BUDAPEST "Political change without basic W hat a weird May Day: First, economic change," says Miklos Vaso- hardly anybody came to the rhely, last surviving leader of the Communist Party parade. 1956 freedom fighter revolt still resi- Then the party leader, at an open dent in Hungary, "merely gives us town meeting, was asked what hap- the freedom to complain about what pened to the borrowed $18 billion that we cannot do anything about." has become an intolerable debt bur- That old hero understands what the den. Finally, the state television gave newest class of power jockeys cannot equal time to panels run by the nas- grasp: For a nation to prosper, cent opposition parties. proprietorship must be personal. This Is this the wave of the future? I came can range from farmers owning their to Hungary because it is advertised as own cooperatives to entrepreneurs "the hole in the Iron Curtain," the na- owning their companies. tion in Eastern Europe supposedly What Hungary shows is great ac- slipping out of the Soviet orbit. tivity without underlying action. To project this image, Hungarian 'A new stock market opens without border guards this week ostenta- tiously chopped down barriers along the Austrian border, handing out snippets of barbed wire as souvenirs. This was an example of baloney tac- Hungary tics, an updating of the salami tactics by which the Communist regime WOOS the sliced away its coalition partners at the start of the cold war. Although West. Hungarians are free to travel, no Soviet dissident can slip into Hungary and then across to the West without papers issued in Moscow. a base of money convertible across Other changes, though surface- borders; a handful of sentimental deep, are real. Communists are joint ventures offers only the illusion preparing to share power in a coali- of serious business. The nation that tion government after free elections, lost seven out of its last seven wars is and insist they are even willing to risk cunning enough to survive, but has ouster. In the past year, Hungary has produced no recent figure capable of embraced South Korea, which needs leading it out of loserhood. ties to Communist nations as much as The current leadership is eager to Budapest needs capitalist invest- play host to George Bush, who visited ment; next month Hungary will nor- this country as Vice President in 1983. malize relations with Israel. Our activist Ambassador here, Mark And the evils of the repressive past Palmer, is a young pro clued in to the are being exhumed. The bones of Imre new-breeze Eastern Europe strategy Nagy, the patriot who was executed laid out, like Poe's purloined letter, in three decades ago and dumped in a Mr. Bush's speech in Hamtramck, mass grave, will be reburied in honor Mich. My guess is that the President on June 16, the anniversary of his ex- will expound his doctrine in Poland ecution. Some officials worry that this and Hungary in mid-July, just after may trigger a new uprising. the Paris economic summit meeting. Nobody can measure the depth of I hope he delays his decision until latent violence because of the huge June 16; let's see how this regime, so gap between the political wrangling fearful of what it calls the aftermath at the top and the real misery at the of anarchy, reacts to the big Nagy bottom. Inflation is betraying aged demonstration. Having made the pensioners; newly marrieds have no wrong decision on wheat subsidies to place to live; poverty afflicts one per- the Soviet Union, Mr. Bush may take son in five, and many workers drag the right road on aid to Hungary: In- themselves to two jobs to survive. stead of lavishing Government loans To avert revolution, Communist on the central bank to prop up sys- leaders explain that gradual, peace- temic failure, as the Japanese and ful change was blessed by Mr. Gorba- Germans have done, we should let U.S. chev; they tell me he assured them business take its risk and wish it well. only last week that the Brezhnev doc- If and when the U.S. President gets trine was dead, that Hungary can find here, he should ask: Why does Hun- its own middle way provided it does gary spend 4.5 percent of its G.N.P. on not make an embarrassing fuss. its army, compared with Western Eu- But such assurances are ripples on rope's 3 percent? He may find the Hun- the deep current of events. A system garians willing to cut back from based on state ownership and central 120,000 to 70,000 troops in a hurry. Hun- control is bound to fail, and cannot be gary offers a parallel in the change we patched or "restructured"; it cries see in the Soviet Union: ferment with- out for replacement. out focus, old wine in new bottles. :05-08-89 Hungary Tears Down a Fence H UNGARY's dismantling of bors. Hungary's relations with Ro- nist Party and Solidarity could be a barbed-wire fence sepa- mania are particularly tense. Ro- transformed, he says. rating it from Austria manian refugees flow its way. The Soviet Union, for now, ap- takes a little more iron out of a cor- In July, George Bush will recog- pears willing to let things proceed. roding "Iron Curtain." It's a sym- nize the new openness in the East, The Poles may be encouraged that bolic act, but the symbolism is with stops in Hungary and Poland perestroika has now embraced a lim- poignant. as part of his first European tour as ited right to strike for Soviet union- Budapest is lurching toward po- President. Leaders in both coun- ists. Not long ago, that would have litical change. Its once-monolithic tries will doubtless use the occasion been considered an ideological ab- Communist Party shows signs of to ask for greater US help with surdity in the "workers' state." But splitting into factions (long a Marx- their economic reforms. wildcat strikes have been occurring ist-Leninist no-no), with the most Poland is almost as gung-ho for anyway under Mikhail Gorbachev: liberal reformers wielding the bulk change as Hungary is. Party leader the shift favors reality over ideol- of power. A new constitution is on Wojciech Jaruzelski admits that as- ogy. the horizon. incorporating checks pects of socialism haven't worked in Hungarians busily redefining and balances and doing away with Poland. Arm in arm with Lech their politics retain memories of the Communists' "leading role." Walesa, head of the Solidarity trade 1956 and the Soviet invasion - Free elections are promised for union he once banned. General triggered. they recall. by talk of next year. Jaruzelski is striding into a new era leaving the Warsaw Pact. Still. Mr. Hungarians look West for their of elections and multipolar politics. Gorbachev has given his blessing to role models these days. The social The country's redesigned parlia- reform in Hungary and Poland. But democracy of Sweden. Finland. and ment - with all seats in the new even he could be shocked by what Austria - not Soviet-style social- upper house and a third of those in the future holds. ism - is the object of emulation. It the lower chamber freely elected - Just as important as the Soviet was only logical that the fence come will have a decisive say in crucial response is the response of average down. economic reforms. Hungarians and Poles. Can a some- Ironically, the highest partitions Jacek Kuron, a Polish activist what cynical. economically in Eastern Europe now are those and political theorist. has said the strapped populace be rallied behind between the reformist socialist goal is "an entirely new political ge- reform? The coming election cam- states. Hungary and Poland. and ography," with new alignments and paigns will provide at least a partial their hard-line communist neigh- new antagonists. Both the Commu- answer to that important question. Hungary and Refugees: a Historic Reversal 1831 ernments could do 110 more than arrangements prevail today in han- Since World War II. Hungary has the largest mumber of those arriving agree to resettle those Hungarians dling movements of people out of been considered In the West a are ethnic Hungarians, the welcome By Dennis Gallagher who Ded. the USSR and Eastern Europe. refugee-producing country. With has extended to ethnic Romanians Besides the obvious political im- As with the Hungarian uprising the trend toward liberalization, as well plications this event had for "East- in 1956, Hongary's signing of the Westein governments are reassess These cuttent developments in HIRTY-THREE years ago, West" relations, the massive exodus refuger convention has important ing the situation. Austria. for C.X- Hungary, like those in 1956. are 1110 T an abortive effort by Hun- of Hungarians into neighboring political implications for relations ample, only approves I percent of inentous. They signal that: garians to loosen their ties countries had an enormous impact within the East bloc as well as be- Hungarian applications for asylom. Within the context of glassmost to the Soviet Union led to the flight on the international refuger sys- tween the East and West. The Foreign navel for Hungatians is and perestroika, East-bloc countries of more than 200,000 refugees to tem. The UN High Commissioner now relatively casy. Early last year, can chart varied courses and ach the West. On March 14, 1989, the for Refugees, created in 1951, was exit visa requirements write abol- challenge each other in internet Hungarian government became the floundering with almost no re- Even more dramatic ished and new passports, valid lot tional forums. first Warsaw Pact country to accede sources and a mandate that was five years, were issued. On Nov. 7. East bloc governments can than its more open to the United Nations Convention about to expire. UNHCR was re. 1988, the anniversary of the revolu- adopt policies that afford new her. and Protocol Relating to the Status suscitated when, over the opposition attitude toward travel is tion of 1917. some 100,000 Hungar- dom. for people to exit their comp. of Refugees. This event - largely of the USSR, a General Assembly Hungary's receiving of ians exercised their freedom In trav- tries. unreported - is historic. resolution was passed on Nov. 9. el abroad and went to Vienna, Socialist countries perhaps When the 1956 Hungarian upris- 1956, authorizing UNHCR to co- refugees from Romania. primarily to shop. the USSR itself may join the in- ing was put down by Warsaw Pact ordinate international assistance to Even more dramatic than this ternational refugee system. forces, the message was crystal clear Hungarians. more open attitude toward travel is Without doubt these develop- that the USSR would not tolerate New diplomatic and organiza- events also signal an important Hungary's receiving of refugees ments present significant chal- independent political developments tional arrangements were formed to change in the evolution of the in- in particular, refugees from a neigh- lenges to Western and Eastern gov- in Eastern Europe. Underestimat- handle the Hungarian exodus. Aus- ternational reluger system. boring socialist country, Romania. ernments, as well as too the ing the Soviet intent, Washington tria, Italy, and Yugoslavia, countries No country in Eastern Europe Further, Hungary has formally ex- international refugee regime. Un- had encouraged dissent within Hun- on the periphery of the East bloc, has adopted glasnost with more for- pressed its concerns about human like the developments in 1956, how. gary, repeatedly broadcasting on became countries of first asylum vor than Hungary. Karoly Grosz Mr- rights abuses in Romania by calling ever, they are to be celebrated Radio Free Europe to the "libera- from which arrangements were placed longtime leader Janos Kadar on the UN's Center for Human rather than condemned. tionists" that "America will not fail made by governmental and non- in mid-1988 and announced sweep- Rights to investigate them. you." But when actually confronted governmental organizations to re- ing economic and political reforms To date. more than 80,000 Ro- Dennis Gallagher is executire director with Soviet military resolve to re- settle refugees to other Western En- soon thereafter. In Hungary, the manian citizens have been given of the Refugee Policy Group. a nonpofit tain control over Hungary, the Unit- ropean countries, as well as to the word "liberalization" is now on ('V- refuge in Hungary. There is every policy research institute based in Wash. ed States - and other Western gov- US, Canada, and Australia. These erybody's lips. prospect that more will come. While ington. 05-09-89 Hungary's Janos Kadar Retired From Party Posts Kadar Loses Titles as Health Deteriorates Mihaly Jasso, head of the Buda- By Imre Karacs Special to The Washington Post pest party committee, reported over the weekend that doctors BUDAPEST, May 8-Janos were trying to send Kadar for a Kadar, the grand old man of Hun- rest-to the Crimea in the Soviet garian politics who once was hailed Union-but said Kadar did not want as the most liberal Communist lead- to go. Kadar is believed to be afraid er in Eastern Europe, lost all of his of dying in Soviet exile, as his no- official titles tonight when he was torious predecessor Matyas Rakosi retired from the Central Committee did in 1971. and relieved of his post as Commu- Kadar, in the twilight of his life, nist Party chairman for health rea- appears haunted by other ghosts sons. from the past. His role in the exe- JANOS KADAR The decision by the Central Com- cution of several of his colleagues in health reportedly failing mittee ended weeks of speculation the 1950s has become clear as of- about Kadar's fate. ficial veils on contemporary history truly committed to reforms" Since his dismissal nearly a year are being pulled back. emerged. ago at a special party conference, On Saturday, the government Today, despite resistance from Kadar, who will be 77 later this daily Magyar Hirlap published a Grosz, Central Committee mem- month, has suffered a severe dete- document implicating Kadar in the bers agreed to convene an extraor- rioration in his health. execution in 1949 of the communist dinary conference on new party Until recently, party leaders had politician Laszlo Rajk, the most fa- statutes, election strategy and per- sonnel issues. seemed prepared to wait for their mous victim of the Stalinist show The date of the conference-on- chairman to die in office. But they trials in Hungary. ly the second of its kind since appeared to grow more alarmed at Meantime, Grosz himself ap- 1957-is to be fixed later this the worsening state of Kadar's peared to be coming under pressure month. The conference is expected mental condition. from reformists to step down. Re- to provide the venue for a clash be- The position of party chairman, cent remarks by the general sec- tween Grosz and reformists led in essentially powerless, had been cre- retary about the need for a "state of the Politburo by Imre Pozsgay. ated for Kadar when he was re- emergency in the economy" have This group argues that Grosz is placed as general secretary by proved to be the last straw for a liability in the multiparty elec- Karoly Grosz. many party members. tions that are to be held next year The post had entitled the former At the weekend, dissatisfaction for the first time in over 40 years. leader at least to attend Central with his performance burst into the The latest opinion polls appear to Committee meetings and deliver open as delegates to two regional support that view. speeches. party conferences called for his dis- Even with opposition parties in The elderly leader's often ram- missal. A party cell in the city of complete disarray, the polls show bling, incoherent remarks, howev- Gyor, in west Hungary, took the that the Communists would win er, were becoming an embarrass- unprecedented step of withholding only 36 percent of the vote if the ment to other party members. members' dues until a "leadership elections took place tomorrow. WASH. TIMES 05-10-89 KEN-ADELMAN 250\183p ast Europeans remain un- E abashed fans of America, Awaiting Moscow withdrew one division from Hungary. which remains bitter over even if West Europeans the suppression of its 1956 revolt. don't. American allies may Mr. Gorbachev assures Hungarian receive President George Bush blandly at the end of May, but our Bush in historians access to Soviet doc- uments relating to that squalid supposed adversaries will welcome event. We'll see if that happens. him warmly in July when he visits Poland and Hungary. Meanwhile, Hungarians long for There Mr. Bush will feel as much affection as Soviet President Mi- Hungary a total Soviet withdrawal. not being particularly martially inclined. khail Gorbachev feels on his forays After all. Hungary has lost seven out into Western Europe. of its past seven wars. Its foreign How topsy-turvy things Euro- would allow privately owned and op- policy begins to edge out of the pean seem nowadays! erated media. A Western news outfit mold. Hungary is the first commu- As the first U.S. president to visit should pony up $1 million for the nist country to recognize South Ko- postwar Hungary. Mr. Bush will ex- worthwhile endeavor. rea. and soon will recognize Israel. perience things that startle the eyes Other businesses have gone pri- Socially. the place is experiencing and amaze the senses. The pace of vate. There's even an embryonic what Jonathan Edwards would call a change there is breathtaking. the stock exchange. In a few years. half "great awakening." A genuine civil tempo exhilarating. the Hungarian economy may be in society is being reborn. Religious. Hungary is a remarkable little private hands. cultural and social groups like the country brimming with talent. Most And in foreign hands. Wholly Boy Scouts sprout up independent of U.S. nuclear scientists on the Man- foreign-owned enterprises are al- state or communist control. hattan Project were born in Hun- lowed and outside capital flows in. gary. as were four-fifths of the hy- Japanese own 40 percent of Hungar- Politically, the picture is dicey. A drogen bomb inventors. Such raw ian securities, with the twin "tigers" recent Communist Party poll found talent is budding on its own soil. of South Korea and Taiwan close be- that it would muster only 30 percent hind. of the vote in a free election. More Recently a Radio Free Europe re- than 40 political organizations have porter downing drinks with the boys Still. the Hungarian economy begun organizing. The splendid Na- spotted a policeman beating some- faces humongous foreign debt and a tional Endowment for Democracy, one outside a Budapest bar. He declining; living standard. For the U.S.-government-sponsored helps dashed to the scene to record the first time since 1952. per capita in- local training in political and labor happening. come fell last year. It took a toll: the tactics. Finding himself in the reporter's country's suicide rate tops the nightmare. with a hot tale yet no way world. A key moment in Hungary's metamorphosis comes a month be- to transmit it. he gutsily rushed to veryone admits Marxism is fore Mr. Bush arrives. On June 16. the state-owned station. Could he beam his story to RFE headquarters E dead. Hungary's prime min- the 33rd anniversary of his hanging ister said last month. "The and being ditched in an unmarked in Munich? model of a party state has hit a dead- mass grave. the bones of Imre Nagy. Though RFE had been deemed the devil incarnate. permission was end street and has proved to be in- prime minister during the 1956 up- granted. His story was sent to Mu- capable of making further head- rising. will be reburied with honor nich and broadcast back the next way. For three decades. the mere men- Caught between the widening dis- tion of Mr. Nagy's name was forbid- morning into Hungary. where It cre- ated a sensation. The new breed of integration of the East European den. This year. three biographies on bloc and increasing integration of him have already been published. investigative reporters queried authorities. who mumbled lame ex- the West European community. The real crunch comes later If Hungary looks West. Many there free elections are held. the commu- cuses. Though lacking an independent seek community membership. nists will have to share power. which press. Hungarian journalists act in- First may come back-door associ- means further withering away of dependently "It's SO funny to see TV ation through Austria. Its border the Marxist state. In a historic first. speaking the truth." an intellectual with Austria is the first part of the they could lose the Interior or De- quipped. The government says it "iron curtain" to come down. Hun- fense Ministry. or lose power alto- garians shear the barbed-wire gether. fence. selling snippets as souvenirs. That seems inconceivable now Ken Adeiman IS a nationally syn- Soviet forces are again on the But then again. what's happening in Hungary seemed utterly preposter- ated columnst. march. but outward bound this time. ous-rust last year. TIMES 05-13-89 Hungary AT A GLANCE History and Politics POLAND Prague Part of the Austro-Hungarian CZECHOSLOVAKIA Empire, Hungary proclaimed itself SOVIET AUSTRIA an independent republic at the UNION Vienne end of World War 1 in 1918. During Debrecen World War II. it allied itself with Germany until its leader, Adm. L Balaton Budapest Nicholas Horthy, a nationalist, HUNGARY tried to reverse course and was Szegede RUMANIA arrested by the Germans, who oc- cupied the country. Soviet troops Denube overran Hungary, and in 1948 a YUGOSLAVIA Communist regime consolidated control. Miles Belgrade River even tomorrow. This is a reality." The uprising of 1956 and its 0 100 This reality, he continued, imposes brutal suppression with Soviet tanks shocked the world and were The New York Times/May 15, 1988 the need for electing, even under a multi-party system, a party committed viewed as a historic turning point for the Soviet bloc. Hungary was now dominate the economy. In to socialism. Only the Communist led for three decades by its party 1982 the Kadar regime began in- Party has a clearly socialist program. chief, Janos Kadar, who was troducing measures to decentral- If any of the new political groups came ize the economy and encourage to power, there was a risk of radical originally a supporter of the 1956 revolt. His regime tried and exe- private enterprise. The changes change. initially led to a rapid improvement "In 10 or 15 years, after two or three cuted Imre Nagy and others in- volved in it. Before Mr. Kadar him- in the standard of living. More re- normal elections under a multi-party self was ousted a year ago, hav- cently, stagnation set in. system, there won't be any threat of changing the system as a whole," he ing lost his taste for bold eco- nomic action and in failing health, said 'But in May 1989, there is only one he led Hungary to a level of eco- party, and this party could lose an elec- The Land and People tion." nomic well-being and personal freedom unmatched in the Soviet The official said the party did not orbit. Hungary covers nearly 36,000 want to preserve its power "by admin- square miles, little more than the istrative means or military force." In- state of Maine. Its population of stead, the aide said, it wants to negoti- just over 10 million includes small ate with the opposition a formula simi- The Economy minorities of Germans, Slovaks lar to that worked out between the Pol- and others. and the official lan- ish Government and its opposition. In Until World War II, Hungary was guage is Hungarian (Magyar). The elections next month, the Polish Com- mainly an agrarian society. but in- Danube is the country's only sig- munist Party reserves for itself 38 per- dustries, construction and mining nificant freight-moving waterway. cent of the seats in a newly created lower chamber of Parliament, while the vote for the upper house would be unrestricted. pressed pleasure at receiving Presi- "We create a situation in society, a The aide said the Grosz leadership dent Bush here in July. placed the insti- mechanism of checks and balances, so did not favor creating a bicameral par- tution of a multi-party system in the that every day we would be able to re- liament but wanted to propose to the context of creating confidence among port on actions and results and check opposition a system that would guaran- the Western lending institutions and whether there is coincidence between tee the Communist Party, at least in private investors that Hungary must intent and results." the first multi-party elections, enough convince of its credit worthiness. Mr. Grosz made clear that he had no members to be able to prevent the In the view of Hungarian critics and intention of presiding over a loosening formation of a non-Communist govern- defenders of the regime, as well as dip- of his party's hold over the country by ment. lomats from East and West, Hungary's allowing the proposed checks and bal- "The first elections won't be real economic plight. its declining standard ances to develop quickly into a method "elections," he conceded. He said their of living and rising inflation, even more of transferring power. goal must be "to preserve stability for than Mr. Gorbachev's liberalizing inno- 'The Leading Role' the life of one parliament." or five vations in the Soviet Union, are the principal motives for the transforma- "I think a party is a damn fool if it years. The first "real elections," the tion under way. doesn't try to play the leading role," he aide said, might be held in 1994 or 1995 said. "Why does that party exist if it at the earliest. Mr. Grosz cited the country's need doesn't have that ambition? Secondly, 'A Possible Putsch?' for $8 billion in Western capital over the next five years to modernize its ob- tell me, to whom should we transfer The Grosz aide said that the party solescent, stagnant economy, as well as power? Can you name a force that has was certain of winning 40 to 45 percent its present debt of more than $15 billion the kind of constructive program not in the voting that he expected to be held to Western creditors. In Parliament on only for the management of the crisis this year or next. The party leadership, Wednesday, Prime Minister Miklos resulting from our debts but also to he said, favored a system similar to Nemeth announced that Hungary draw up a new social system? that of West Germany's Parliament needed to borrow $2.5 to $3 billion "If we are unable in a period of six to every year for debt service. eight years to acquire through political efforts the confidence of society that proportional representation, with part With this in. mind, the party chief of the votes applied to individual candi- said: "We need to have the trust and we need to carry out our program, then we deserve to lose its faith.' dates and the rest to a central pool for confidence of the financial institutions each party. as well as private investors." The party chief said that although he However, the opposition groups have was sincere in proposing to create a To Strengthen the Money system that would eventually allow the rejected a round-table meeting at To achieve this, he said, Hungary party to be voted out, he foresaw no which they and the ruling party would loss of power. work out a formula. Instead, they have must strive to make its currency. the proposed a "rectangular table," at forint. at least partially convertible, so which the opposition would jointly con- that foreign investors can repatriate New Communists front the Communists on the opposite profits. He continued: side. They have also said they want to 'The other element of creating confi- dence is political reliability and stabil- Strategy Is Based negotiate only with Communist repre- sentatives who are ready to accept far- ity. because nobody would invest in a place where they had to fear civil war On Realism reaching changes. Meanwhile, the mood among those breaking out the next day or have on who have long struggled for a more lib- "their minds a fear that those commu- A senior aide to Mr. Grosz explained eral regime is exemplified by a round- nists' will change their minds and in the party's strategy in a separate inter- robin question a magazine is putting to five years nationalize it. view. He said the leadership believed writers known for their critical views. "To create safeguards, we try to that there was no choice but to pre- It is: "Where will you be in case of a shape the political system, the political serve the Communist system. Alluding possible putsch?" superstructure in such a way that its to the Soviet role in Hungary's fate. he Gyorgy Konrad, the best-known of operation would give guarantees for said: "This part of Europe became such writers, said, "Even if it is a bit of preventing events like that. One of the part of the socialist world. We can irony or mockery, it gives you some- main ways of doing that is the estab- change this, but not today. Perhaps not thing quite near to a shiver." lishment of a multi-party system. What do we seek by that? It is the following: we put our own party under social con- trol by taking it out of the existing mechanism, which is a one-party sys- tem. L.A. TIMES 05-18-89 Much Is Ending in Hungary but Not Communist Rule By JEFFREY KAYE ernment to move toward a free-market and MITCHELL KOSS 1830 economy. But adopting capitalist features has proven to be a mixed beg. Hungary has Almost every week in Hungary another instituted stock-ownership and licensed symbol of the old-style East Bloc collapses. half a million entrepreneurs. At the same Within the past month the Soviets began to time, austerity measures such M cuts in withdraw their troops, Hungarian soldiers subsidies have resulted in a 20% annual started to dismantle the physical manifes- inflation rate and pushed one-fifth of tation of the Iron Curtain-an electronic Hungary's 10.6 million people below the fence at the Austro-Hungarian border- poverty line. In addition, the country faces and deposed party leader Janos Kadar, the large-scale unemployment as state-run man the Soviets installed to rule the industries are put on the auction block. country after the 1956 uprising, was Although Hungarians may be hurt in the stripped of all formal ties to the Communist pocketbook by such radical changes, they leadership. don't seem to be backing away from the These changes come in a year in which Communist Party. Opinion polls indicate Hungary has already made more than that the most popular political figure is also token moves toward democracy, steps that the man spearheading many of the reforms, could theoretically allow the defeat of the Imre Poragay, a member of the Politiburo. Communist Party in free elections prom- So far, the Hungarian public seems to ised for 1990. But it would be a mistake to have little interest in alternative politics. assume these moves will inevitably lead to The 30,000 or so opposition activists are an end to Communist rule. mainly intellectuals and students. One To the contrary, a case could be made dissident leader, environmentalist Judit that the faster Hungary's movement to- Vasarhelyi, complained that the opposition ward democracy, the better the chance is being hurt by the nimble theft of its ideas that the Communists will prevail. and slogans by the Communists. She Under its Communist government, Hun- worries that the relatively unsophisticated gary is rapidly moving toward a peaceful opposition could be outmaneuvered by a realization of the same demands for which party with long experience in steering hundreds of its people died in the failed public opinion. anti-Soviet uprising of 1956. In contrast to Right now, opposition groups are offer- last year, when dissidents were still being ing little alternative to the party's program arrested. the government has now legal- of radical reform. Rather than staking out ized freedom of association and assembly. clear ideological territories at this point, Organized opposition groups have been the various opposition organizations are allowed to form and begin recruiting propounding a vague potpourri of political members for transformation into legal thought. Gaspar Miklos Tamas, a leader of opposition parties. Going far beyond Po- the League of Free Democrats, told us, half land's leaders in democratization, Hunga- in jest, that his party follows the "two great ry's government is rewriting its constitu- traditions of liberalism, one of which is tion. a move that it claims will guarantee known in the United States as liberalism. development of a multiparty democracy. The other of which is known in the United In the three weeks we were on assign- States as conservatism." ment in Hungary this March for PBS's In order to outflank the party, some "The MacNeil/Lehrer NewsHour," we saw opposition groups may be forced to move the organizing conventions of three nas- further to the right. But such postures are cent opposition parties, the Social Dem- likely to backfire and play into the Com- ocrats, the League of Free Democrats and munist Party's hands. As a nation accus- the Democratic Forum. We also reported tomed to full employment and social wel- on the largest anti-government demon- fare faces unemployment and inflation, stration since 1956-an event the gov- opposition parties that project Milton ernment not only facilitated by declaring Friedman-like values are not going to be the day a legal holiday. but also legitimized popular with voters. by devoting extensive coverage to it on The Communist Party has built up a state-run television. degree of trust with the Hungarian people Hungary's reforms were not forced by by delivering the highest standard of living the opposition. Rather, the government in the East Bloc. Even though Hungary's implemented radical reforms because of an consumerist proclivities are being eroded economic crisis: Hungary can no longer by the government's reforms, no credible afford to maintain welfare state socialism. alternative is emerging with a well-devel- Having been forced by circumstances to oped political platform. Unless it does, act. Hungary's Communist Party moved voters are likely to see the Communist quickly to seize the initiative, proclaiming Party as a reliable force of moderation. itself a "party of reform" and trying to keep the public's attention on democratization Jeffrey Kaye, a senior producer at KCET- instead of on the painful privatization of the TV in Los Angeles, is a correspondent for economy. PBS "The MacNeil/Lehrer NewsHour." Western banks. owed more than $18 Mitchell Koss is a producer for KCET: billion, have obliged the Hungarian gov- national productions department. In Hungary, the Political Changes TIMES 05-16-89 Are Tempered by Economic Fears 1838 By HENRY KAMM Special to The New York Times BUDAPEST, May 14 - In an atmos- The announced economic changes, phere of increasing freedom of expres- hich still await definition and enact- Within the ruling party, whose lead- sion, Hungarians are looking forward agent, foresee elimination of the state ers all owe their rise to the former Gen- subsidies that make consumer prices eral Secretary, Janos Kadar, installed to a possibility that after 44 years of attificially low and protect jobs by by Moscow as It put down the revolt, Communist rule the party may permit keeping alive unproductive enter- "Hberals" and "conservatives" can be free elections that could one day drive prises. Identified by the view they have it from power. The economic plight of the average adopted on 1956. But, deflating hopes held by many in Hungarian has not reached the poverty The 55-year-old Mr. Pozzgay, in the West and few in this nation of skep- that has become common to many whom non-party liberals as well as re- tics, Karoly Grosz, the Communist Poles and Yugoslavs. But the standard form-minded Communists place their of living, long among the highest in the best hope for leadership, has Identified leader, said in an interview that it would be six to eight years before the Communist world, has suffered steady himself with the opinion that the rising attrition through the 1980's. was an authentic national movement. party would run the risk of being Consumption is declining, and the Mr. Pozsgay has built a reputation ousted by the voters. Government acknowledges that it will for enthusiastic support of the innova- Hungary is heading toward multi- continue to do so until the projected tions of Mikhail S. Gorbachev, the party politics under official promises changes bring about an upturn. Soviet leader. to convert the Communist system, Stock Market in Embyro A National Uprising? modeled on the Soviet Union's, into a The central statistics office reported Within the party, Mr. Pozsgay is a more democratic society and freer that in the first quarter of this year loner, not in close contact even with economy. food prices were up by 13.8 percent others committed to renewal. This in- This prospect" excites those who over the same period last year, cloth- cludes Mr. Nyers, his 66-year old Polit- value above all freedom of expression. ing prices by 19.4 percent and services buro colleague, who was the architect by 13.9 percent. of the economic changes of the late It does not cheer the majority, which is While little has been done to ease the 1960's. They were halted and Mr. Nyers more concerned with growing eco- nomic hardship. pressure on most Hungarians, the Gov- ousted when the "Prague spring" The Communist Party, led by Mr. ernment this year introduced the eye- aroused Soviet opposition to all similar catching device of creating the first movements. Grosz since last May. has dictated stock exchange in Communist Europe. Hungary's fate since 1945, eliminated Because foreign investment capital is Mr. Grosz, 58 years old, who through- all other parties and built a centralized not rushing into Hungary, it has done out his political life represented strict economy that is mired in such crisis virtually no trading. Communist orthodoxy, first adhered to that the party concedes that salvation "It's embryonic,' said George Soros, the view that 1956 was a "counterrevo- an American of Hungarian birth, who lution." As the significance of the issue must come from the West. heads the Quantum Fund, a mutual in the power contest rose, however, he Aware of the need to make Hungary fund. Mr. Soros is here to mark the fifth moved to a centrist position. Mr. Grosz more acceptable to the West, the party anniversary of the cultural and educa- engineered a compromise in which the has yielded to demands for recognition tional foundation that he finances. 1956 events were said to have begun as of the principles of political pluralism Despite the far-reaching changes a "national uprising" and degenerated and civil liberties and the creation of a taking place, the public mood is unex- into "counterrevolution." mixed economy with wide private own- cited, with little of the enthusiastic In what many Hungarians saw as a ership and a determining role for mar- mass participation that marked the gratuitous act intended to use the 76- popular movements here and in Poland year-old Mr. Kadar to deflect blame ket forces. from today's leaders, the party this Because of skepticism about Mr. in 1956. the "Prague spring" of 1968 and the Polish Solidarity movement of month cast him into virtual disgrace. Grosz's commitment to profound 1980-81. Pronouncing him physically and men- change. many Communists believe tally ill, it completed his downfall, that internal challenges to his leader- 'Dissidents' Now Lionized begun when Mr. Grosz replaced him a ship are likely to remove him before "There is fear and apathy," said Fer- year ago. It expelled him from the Hungary holds its first free parliamen- enc Koszeg, a leader of the Alliance of honorary post of party president and Free Democrats, a group that grew out membership on the central committee. tary election. of the dissident movement that spoke Mr. Kadar's consent to Hungarian Mr. Grosz suffered a significant and printed critical views long before it participation in the Soviet-led invasion political setback when on Friday the became permissible. "They don't be- of Czechoslovakia in 1968 is one of the Cabinet suspended work on the Hun- lieve that the organizations can be ef- charges now laid against the former garian section of a multibillion-dollar fective. There is even a suspicion that leader in the columns of the press and hydroelectric power project on the they are movements of intellectual on the air. Danube north of Budapest and hinted elites, not attached to the masses." at abandonment of the dam within two With exceptional civic courage, a months. As late as May 1. the party small group of dissidents, as they were New Parliament chief reiterated his support for the called until recently. had over the years asserted their civil liberties and joint Czechoslovak-Hungarian enter- preached them to the nation through Election May Come prise. which has financial backing illegal publications, often seized. and from Austria. meetings in private homes, frequently In November Advocates of change favor for the top raided by secret police. Now their jobs two Politburo members identified views are being proclaimed not only in Many Hungarians look forward to more convincingly than Mr. Grosz with new. unofficial dailies and weeklies but the expected parliamentary elections, the modernizing movement. They are also in the official press. which a few perhaps as early as November, as the Imre Pozsgay and Rezso Nyers. months ago denounced or ignored first step toward dislodging the Com- Four of the political parties that them. munist Party from power. This is not a were dissolved by the Communists four Writers and philosophers who less view shared by Mr. Grosz. his advisers decades ago have come back to life, than a year ago, under the same re- or his associates, even some in whom and new political organizations that in- gime. experienced the force of police liberals place faith to transform the au- tend to constitute themselves as par- truncheons on their backs now find tocratic party into a democratic body ties have been legally formed. Only one themselves in demand for talk shows ready for power-sharing or even a and university symposiums, contribu- change of rule. of the reborn or new groups claims more than 4,000 members. tions to the press and the right to pub- In a 90-minute interview in his spa- lish their books in translation, cious office at party headquarters in Mechanisms are being prepared that Pest on the left bank of the Danube, are to lead this year or next to a law es- overlooking the green hills of Buda tablishing the rights of parties, parlia- New Politics across the river, Mr. Grosz defined his mentary elections and the framing of a view of a multi-party system and made more democratic constitution. clear that he regards the replacement Defining 1956 of Communist government by another New Economics Is the Touchstone party as a long-term prospect at best. The General Secretary, who ex. Amid Decline, At the center of the intense reexami- nation of the past, fraught with present Brave Hopes day political significance as Commu- nist leaders compete in an unacknowl- edged power struggle, is the uprising of The main concern for the majority of 1956, its crushing by the Soviet Army Hungarians is the steadily declining with the help of Hungarian suppor' standard of living, and to them the con- and the execution of its leader, Imre stantly echoing word "reform" means Nagy. mainly the threat of an end to Govern- ment subsidies, with unemployment 05-23-89 Hungarian Asks Direct US. Aid To Industry By Frank Swoboda Washington Post Staff Writer The spokesman for Hungary's fledgling independent trade union movement yesterday urged the Bush administration to bypass the government and provide direct aid to private industry as a way to speed political and economic reform in the communist-bloc nation. Tibor Vidos, spokesman for the Democratic League of Trade Unions, said the current govern- ment has already squandered $18 billion and still has been unable to cope with the nation's economic problems. The $18 billion is the total amount of Hungary's current foreign debt, which it received in the form of government aid and loans from commercial banks and international lending agencies. Vidos said Hungary has no internal sources of capital to fuel an eco- nomic recovery. President Bush is scheduled to visit Hungary in July, at a time when the nation's economy is in a state of crisis and the ruling Communist Par- ty IS in the midst of an internal strug- gle to reform itself. At the same time, nearly a dozen independent political parties are jockeying for support in next year's elections. Vidos said the United States should promote the development of small and medium-size businesses with direct investments that bypass the communist government. He said Hungarian law allows compa- nies with fewer than 500 workers to receive aid directly from foreign investors. In the long run, Vidos said, the only real hope for the Hungarian economy is to get rid of the Com- munist Party. But he conceded that would take a long time. He said he looked to the party reform movement-the Reform Circles-to help guide the country through its economic transition. Vidos came to Washington last week to negotiate some direct aid of his own. He has been meeting with U.S. labor officials to discuss both financial aid and technical as- sistance to help the independent unions organize new members and administer their operations. The Democratic Trade Union of Scientific Workers was formed just a year ago this month and Vidos said that he and other organizers of Hungary's first independent trade union have had little experience operating or expanding a union. He said independent trade unions in Hungary represent only about 10,000 workers in the scientific, teaching, and journalistic fields. Although the new trade unions represent a low percentage of the Hungarian work force, Vidos said "our public acceptance is very good. We say things in a different way" than people are used to hearing. WALL ST.J. :05-24-89 Bulletin: We Won! The Free World is reeling from too make sure the Soviets understand that much success. Students in China the costs of backsliding will be high. carry around a replica of the Statue of As the President put It in Texas two Liberty and sound like Patrick Henry. weeks ago, the U.S. task is now "to The Polish regime sits down with convince the Soviet Union that there Lech Walesa and recognizes Solidar- can be no reward in pursuing expan- ity. The Baltics agitate for Independ- sionism; that reward lies in the ence from Moscow, while Mikhail evolution of the Soviet Union toward Gorbachev proposes unilateral arms an open society." cuts in Europe. Nowhere is this clearer than in Eu- And in Washington, there's dis- rope, where the critics want Mr. Bush may. All of these happy developments to "respond" to every new Soviet ini- are beside the point, moans the na- tiative. Mr. Bush is urged to negotiate tion's political community, because away NATO's last nuclear weapons: George Bush somehow isn't "doing instead he's keeping his eye on the something" to win "the public-rela- Warsaw Pact's dominance in conven- tions" war. Bring back Mike tional forces. On Sunday, he cited the Deaver! pact's nearly 12-to-1 advantage in The moans are heard from all po- short-range missile and rocket litical sides, left and right. though launchers, and more than 2-to-1 ad- they may have been captured best by vantage in main battle tanks. columnist David Broder. who this While much of Washington swoons week compared Mr. Gorbachev to at Mr. Gorbachev's nuclear gambits, Gandhi and JFK. By contrast. he in Geneva the Soviets recently pro- added. President Bush seems "rooted posed conventional-arms reductions in the past." clinging to old "ideolo- that aren't very far from NATO pro- gies." posals. Mr. Bush may want to explore Perhaps Mr. Broder thinks one of these ideas before he removes the last those outmoded "ideologies" is the de- nuclear weapons that protect U.S. mocratization that Mr. Gorbachev troops from surprise attack. keeps endorsing. Or maybe he's refer- Others-even conservatives-want ring to the free press and free speech Mr. Bush to propose some grand deal that the Chinese demonstrators de- that would pull U.S. troops back from mand. The last time we checked. the NATO in return for Soviet withdrawal man repudiating 70. years of his na- from Eastern Europe. Of course. once tion's history was Mr. Gorbachev. not the U.S. withdraws, it is probably George Bush. Perhaps it simply would gone for good. Mr. Gorbachev, or his be easier to say that Mr. Gorbachev is successor, can return in a few now following in the footsteps of Ron- months-at a cost in Western opinion. ald Reagan. to be sure. but he can still return. Mr. Washington's problem is that it Bush's task would be to ensure that won't claim victory. While the late Soviet withdrawals are permanent, 1970s saw. U.S. setbacks from Afghani- which means that troops also are de- stan to Angola to Central America. mobilized back in the U.S.S.R. the late 1980s have brought reversals As for political imagery. the one on nearly every front. Ronald Reagan thing Mr. Bush might profitably do rebuilt U.S. defenses, gave Stingers to more of is talk about the yearning for the Afghans, heralded free markets, freedom sweeping through the Com- and unleashed Western science upon munist world. His remarks about space-based defenses in a technologi- China's demonstrations have seemed cal race the Soviets couldn't possibly pinched for such a mammoth cry for win. Despite a setback or two when freedom. He could do worse than re- Congress resisted, containment plus peat every week or so Ronald Rea- the Reagan Doctrine worked. If the gan's clarion call for liberty at Mos- Cold War is over. the West has won. COW University last year. Yet now the same people who It is Mr. Gorbachev who is moving fought Ronald Reagan want George our way and the Communist system Bush to embark on a new if ambigu- that is failing rather than our own. If ous global strategy. Little wonder the Soviets tear down the Berlin Wall, that he's cautious. favoring what he why should the West feel compelled to called in a speech on Sunday "a delib- respond? We didn't want it built in the erate, step-by-step approach to East- first place. The Soviets have to move West relations." or stagnate: George Bush can stand Mr. Bush's task is to consolidate pat. resist complacency, and welcome and extend the Reagan victory. to defecting communists to the West. By evoking such symbolic departures from Soviet Eastern Europe Tests dominance, Hungary and Poland are sounding deep echoes in the consciousness of other East Europeans, a risky game in a region where nationalist feelings have al- Diverging Paths ready ignited two world wars. The stakes for the West are also considerable. As Events the East bloc that exemplity the The Limits of Liberalism they applauded the Warsaw accords, officials on both movement toward liberalization in some sides of the Atlantic recognized that the danger of popu- countries and againstit in others lar uprisings could jeopardize even the modest changes Mr. Gorbachev has favored. Czechoslovalda, January 1989, 1838 Should the United States and its European allies, as Playwright Vaclav Havel and dozens of other ment continued control of the essentials like the military former Secretary of State Henry A. Kissinger has sug- opposition leaders imprisoned In drive to state By JOHN TAGLIABUE and security apparatus and, despite some loosening, the gested, seek to negotiate a new arrangement for the re- growing dissent, press. Moreover, the new powerful office of president gion under which the West would guarantee the continua- will most certainly fall, by consent of the Communist tion of the Soviet sphere of influence in exchange for Hungary, March 1989: WARSAW Party and Solidarity, to Gen. Wojclech Jaruzelski, who guarantees that the Soviets will not interfere with the Tens of thousands march in Budapest to mark HE sweeping new measures announced last week T has ruled Poland since 1981 and who declared martial growth of freedoms in the region? Or should the West in Poland demonstrate once again how rapid the anniversary of 1848 papular uprising put down law in December of that year in what turned out to be an continue a policy of encouraging liberalization in the na- pace of change has become in parts of the East with Russian help. Official permission for unsuccessful effort to crush Solidarity once and for all. tions on a country-by-country basis without offering Mos- bloc - more rapid than in Moscow and fast march is part of liberalization that Includes: enough to generate new debate in the West about how far So far, the changes in Poland and Hungary seem cow reassurances that could prove to be unnecessary concessions? Certainly, this route would cost the West legalization of non-Communist parties. It should go in encouraging political transformation in aimed at producing a kind of grand coalition in which Communists will keep the leading role for the moment, the least and be least likely to offend. Eastern Europe. The Polish measures, which legalize the Poland, April 1989: Solidarity trade union and introduce changes in virtually but will cede ever larger chunks of influence to other par- The West's Credits After year of labor unrest, Government signs every area of political, cultural and economic life, are ties. In Hungary, the Government has approved laws In any case, Western countries must decide whether accords with Solidarityrestoring union's legal certain to broaden the ideological gap in the Soviet bloc. permitting political parties, though it is not clear how much power - If any the Communists will share with to provide substantial financial assistance to Poland as It status and providing for first open elections On one side are Poland and Hungary, lurching ever them, and allowed the formation of independent trade struggles toward a less restrictive society. Last week, aince World War II. more fitfully, prodded by severe economic difficulties, unions. the Bush Administration was reported to be seeking new down the path of change. On the other are East Germany, East Germany, February 1988: Still, appetites once whetted will not easily be satis- credits for Poland from American and international Crechoslovakia, Rumania and Bulgaria, which accept Dissidents arrested and others exced fied. And as Hungary in 1956 and Czechoslovakia in 1968 lending institutions. But little money is available in the neither the need for experimentation nor its desirability. Indeed, the ink on Warsaw's pact was hardly dry demonstrated, liberalization creates its own momentum, West for largess toward East Europe. stepped-up harassment of embryonic Hungarian leaders who have visited Moscow recent- opposition. Government criticizes changesion when an East German newspaper fired a broadside at rapidly overtaking more modest concessions and height- ening the risk of unrest If rising expectations are not met. ly, including Prime Minister Miklos Nemeth, have other Communist bloocountries, including the Communists who favored such suspect commodities as competing political parties and independent trade As though sensing the enormity of the problem, the Soll- brought back the message that Moscow blesses what Soviet Union: unions. "This is not socialism," the newspaper said, "and darity leader Lech Walesa last week offered to travel to Budapest is doing and views the country as a laboratory of change. Similarly, Poland's Government spokesman, Rumania, March 1989: it will certainly not develop from this." Moscow "to seek understanding for the Polish reforms." Jerzy Urban, returned from Moscow and offered assur- House arrest and interogation of several The East German jibes identified Moscow with War- 1956 Reconsidered ances that the Soviet Union would no longer Interfere in former Communist Party officials who objected saw and Budapest. But Poland's new order is also likely In their efforts to gain greater legitimacy and sal- internal Polish affairs. Indeed, he said, "they now bend to razing hundreds ofvillages and relocating to test the outer limits of what Moscow itself is willing to vage the vestiges of authority, the Governments in Po- over backward to avoid the impression of meddling." peasants, Including thousands of ethnic accept. land and Hungary have made concessions to revived na- If all that sounded too good to be true, there were Though advisers to Mikhail S. Gorbachev, the Soviet Hungarians and Germans. tional feelings. The Government of Hungary has debated also ominous signs. Hungary's leader, Karoly Grosz, re- leader, have given assurances that their East bloc allies the potentially explosive matter of whether the events of turned from Moscow after Mr. Nemeth to tell Hungar- Bulgaria, January 1989: have the right to choose their own road to socialism, 1956 constituted a popular uprising, as most Hungarians lans that Mr. Gorbachev, who has tried to lay the Brezh- Three leaders of emerging human rights group relaxing if not revoking the Brezhnev doctrine that as- serts Moscow's right to intervene militarily, the changes believe. Moscow and the Hungarian Communists have nev doctrine to rest, had cautioned against allowing arrested after group'sco-founder is endled. of last week had many Poles and other East Europeans always asserted that It was a counter-revolution. The events in Hungary to give rise to conditions like those in Crackdown occurs asGovernment pays lip Polish Government recently rejected what for 45 years Czechoslovakia in 1968. Shortly thereafter, Pravda wondering how Moscow would respond If a government service to Soviet-stylechanges. chose a path away from Communism. was the official version of the wartime execution of thou-' warned of a rise of nationalism and "anti-socialist" feel- For the moment, the prospect of that happening does sands of Polish officers, asserting that Stalin's security Ing in Hungary. The message was aimed at Budapest, not appear large. The Polish changes assure the Govern- police, not the Nazis, were the killers. but Poles heard It clearly, too. Hungarian Shoppers Beat a Path to West, Buying in Vienna 773) 1830 By Robert J. McCartney Washington Past Foreign Service WASH.POST :04-10-89 VIENNA-A gray-baired Hun- The mass shopping trip illus- The two states are cooperating spree. brought $160 million into Viennese merchants' garian metron in a threadbare over- trated a broad-based heightening of in building a hydroelectric power coffers, the city's Chamber of Commerce said. coat stood on the main: shopping cooperation in the last two years station at Nagymaros in Hungary to The numbers of Hungarian shopping trips have soared street of this Austrian capital with between two countries that are par- dam the Danube River, which links since Jan. 1, 1988, when the Budapest government grant- bags of bananas and high-quality coffee unavailable in her hometown ticularly well suited to experiment their capitals. Austria is underwrit- ed all Hungarians the right to hold passports. It also in- of Gyor, 65 miles southeast of here. in lowering the barriers between ing the project. with debt-burdened creased the quantity of Hungarian currency that holders capitalist and communist states that Hungary to pay its portion with can exchange-at favorable rates-for such western cur- She was on her first trip to a city have divided Europe since World electricity. Construction is under rency as Austrian schillings. Austrians visiting Hungary that once had served as ber par- way despite charges of harm to the provide the schillings. ents' capital, under the old Austro- War II. Hungarian Empire. Hungary has one of the most ecology. "Ninety-nine percent of my business is with Hun- change-oriented leaderships in the Vienna and Budapest have sched- garians," said Wolfgang Chroma, 30, co-owner of an elec- Her daughter, 13, clutched a boxed radio-cassette player, with Warsaw Pact, at the forefront of uled a joint international exhibition in 1995. Billed as the tronic appliances store. efforts to relax controls on the first East-West world's fair, it is titled "Bridges to the Some visitors load several washing machines, personal which she said she planned to listen economy, travel and internal polit- Future." computers or other appliances onto trucks, and resell to Michael lackson tapes. At $140, it cost about $50 less than at ical debate. It hosts 65,000 Soviet Budapest plans soon to tear down the last electronic- them in Hungary. But most come with families or other home the rare ocasions when troops, fewer than either of its ally nionitored fences and watchtowers along the border, one is Surbale there. more strategically located allies, Hongurian Foreign Minister Peter Varkonyi told his Aus- small groups for one big purchase, such as a television East Germany and Czechoslovakia trianvounterpart, Alois Mock, in February. set, and for odds and ends such as hair spray. The two were among 300,000 to the northwest. Hungary long ago removed the mines along the border Despite this week's publicity over what headlines Hunganium shoppers who flocked to Austria, although thoroughly that-caused occasional injuries in the 1960s. Its border called Vienna's "Hungarian boom," official figures show guards normally do not shoot at people trying to slip Austrians made about 10 times as many visits to Hungary Vienna at the start of last week in capitalist and with a western-style what the Interior Ministry called parliamentary democracy, is offi- across the frontier. in 1988 as did Hungarians to Austria. The two countries' relationship has deep roots. "We Austrians made 7 million visits to Hungary last year, the biggest mass crossing of Cen- cially neutral. Its foreign policy tral Europe's most porous East- since it regained independence in have 400 years of common history" in the empire, Pap frequently for inexpensive hunting trips, spa cures and 1955 has been clearly pro-western, Gabor, a Hungarian who is the technical representative in other vacations. They also go for bargain prices in the West border. Budapest of the American corporation Polaroid, said East Bloc for dairy products and meat, and dental work The Hungarians came to avoid an import tax increase that took effect while it has sought to use its posi- here. His boss works in Vienna, and he visits often. and other services. An Austrian woman said she pays tion as the West's most forward On April 1, Hungary's Cardinal Laszlo Paskai attended $2.50 for a visit to the hairdresser in Budapest-and sev- Saturday, and to take advantage of outpost in Central Europe as a the funeral here of the Austro-Hungarian Empire's last eral times that much in Vienna. last Tuesday's national holiday Austria's easternmost province of Burgenland eati- marking Hungary's liberation from bridge to the East Bloc. Foreign surviving monarch, Empress Zita. She was deposed with the Nazie in 1945. The influx of Ministry officials said Vienna seeks Emperor Karl as the empire collapsed in November 1918 mates that it loses $60 million in sales each year as a re- now to strengthen ties with Hun- at the'end of World War I. The remnants became Austria, ault of its residents' shopping in Hungary. cars and buses caused 40-mile traf- fic backups along the highway be- gary as a way of encouraging liberal Hungary, Czechoslovakia, and parts of Yugoslavia, Poland For Hungarians, the biggest obstacle to travel here has policies favorable to western inter- Romania and Italy. become their shortage of hard currency. Overall trade twean Vienna and Hungary's cap- ests. has decreased since 1985 because of the shortfall. ital, Budapest, 130 miles away. In the 1800s, the Austro-Hungarian partnership in Asked why the products they purchased in Austria leading the empire was frequently troubled by Budapest's were scarce or more expensive at home, the woman from independent-mindednes and nationalism. "Our relations Gyor smiled brightly and answered, "because of [Hun- with Hungary are better now than they were under the garian Communist leader] Karoly Grosz." She did not re- empire," the Austrian Foreign Ministry official said with a spond when asked to explain further and would not give chuckle. her name. On Mariahilfer Street in the heart of Vienna's retail district last Monday, Hungarian families lugged television sets, stereos and videocassette recorders. The two-day .MON. :04-11-89 Hungary: It's America' to Refugees 183p tries would be close to war if they husband and wife, so one of the Hungary is acting on its own In weren't restrained by the Soviet pair makes the journey to Buda- mid-March it became the first By Anne Underwood Union," says a Western diplomat pest legally and waits for the Warsaw Pact country to join the Special to The Christian Science Monitor in Budapest. other to sneak across the border 1951 Geneva Convention on ref- BUDAPEST As Hungary prepares to dis- later. Even if the couple meet up ugees. The Hungarian govern- mantle its fences along the border in Hungary, they know there are ment hopes that as a result, it will F she has any regrets about with neutral Austria, the Roma- large numbers of friends and fam- soon start receiving aid from the I leaving Romania, Maria Boc- nian government is strengthening ily - sometimes their own chil- United Nations High Commis- zoni doesn't show them. its barricades against its socialist dren - that they may never see sion for Refugees. It also hopes A year after claiming refugee neighbor. Recent arrivals say Ro- again. the UN will put pressure on Ro- status in Hungary, she and her manian border guards shoot on Communications back home mania to let citizens join their rel- husband have found jobs and a sight and have installed a tripwire are not easy. Letters arrive atives abroad. two-room apartment. Half their on the border. opened, if they arrive at all. It can If the refugees of Hungarian rent is paid by her husband's fac- "The Iron Curtain is coming take five or six hours to get a origin find life difficult at times, tory. Her son is able to go to down between Hungary and the telephone line to Romania, and the situation is bleaker for those college - something he was un- West," notes Istvan, a volunteer then sometimes the operator of Romanian ethnic background. able to do in Roma- working with the refugees. "It is misconnects the call. For them, arrival in Hungarv is nia because of quotas going up instead between Hun- "Even if you get through," not a homecoming. Most sav they for the 1.7 to 2 mil- gary and Romania." says Mrs. Boczoni, "you are not want to move on to a third coun- lion ethnic Hungar- For most of the 26,000 refu- free to talk because you know in- try. Some hitchhike to the Aus- ians in that country. gees, life in Hungary is an im- formers in Romania are listening trian border dozens of times in "This is our provement. The grocery stores to the conversation and recording the hope that the car the are America," says Mrs. are stocked with real meat and everything." riding in will not be checked. Boczoni. vegetables instead of the pictures Although the refugees can "We want to go to the West, It's been more or plastic models of food that are easily obtain residence permits, maybe to Germany," savs Adri- than a year since often found on shelves in Roma- they cannot become Hungarian anna, pointing to her husband Hungary began ac- nia. There is electricity all day citizens because of a bilateral and daughter, Melinda. They cepting refugees long and heating during the agreement between Hungary and have lived for the past eight from Romania - as- winter. Romania forbidding dual citizen- months in a concrete high-rise tonishing the world The vast majority do not have ship. Gabor Bagi, head of the For- that was leased by a church group by the image of peo- to contend with the culture shock eign Ministry department that to house as many as 280 refugees. ple fleeing one War- that faces most of the world's ref- deals with Romania, says Hun- Adrianna's family shares the com- saw Pact country to ugees. Eighty-five percent are of gary is weighing the conse- munal kitchen with a dozen other another. The refu- Hungarian ethnic origin and al- quences of withdrawing from the families. In their one-room apart- gees keep coming - ready speak the language when agreement. ment, the only decorations are by the thousands, they arrive. They know the cus- some shriveled balloons and a fleeing what they say toms and traditions, and many of E have raised the citi- W sheet of gift wrap taped !0 the is constant persecu- them have relatives in Hungary zenship issue with wall. tion. Within the So- who will lend a helping hand. Romania, but they Still, most refugees have few viet bloc, where "fra- But there are problems. "Fam- refuse to talk," he says. "They regrets. ternal" conflicts ily reunification is our biggest continue to hold us responsible "In Romania, they used :0 re- never used to sur- headache," says Maria Vince of for the refugee flow instead of fer to the Hungarians as ix-gor, face, the exodus is a the Hungarian Red Cross. asking themselves why people are 'the homeless people,' savs Ist- hot issue. The Romanian government fleeing the country.' van. "Here no one says we are "The two coun- will not give passports to both a Failing bilateral solutions, homeless." :04-12-89 INTERVIEW Hungarian Premier: Reform Is Risky, Painful and Vital 183 honor on June 16, the anniversary of his execution. (restructuring) began here in the late 1960s, it has had Many Hungarians seem to welcome this swirl of uneven effects. "Without political reform," says By Ned Temko political change. One woman says she has long wanted Nemeth, "economic reform was a little bit one-sided." Staff writer of The Christian Science Monitor to become a teacher, but can't bring herself to endure Mr. Gorbachev, 100, has excellent reason to wish BUDAPEST the ponderous history courses needed for the degree. Hungary well. Nemeth has displayed a frank readiness Under the present system, she explains, "they don't to confront issues of perestroika that most Soviet reform- W HEN Miklos Nemeth was eight years old, his dare ask any question more recent than 1956. It's ers have dared not address. Of course, Nemeth says. native Hungary tried to opt out of Soviet-style because they scared of the answers they might get." there is the risk of free-market problems, like inflation communism. The Soviets answered with Now, she hopes, that will change. and unemployment, in any serious move to let the tanks. The prime minister, Imre Nagy, was executed. Kalman Kulcsar is a longtime lawyer and academic market sort out decades of state-decreed inefficiency. Now, Mr. Nemeth has become prime minister. "His- who, as Hungarian justice minister, is writing the new "We have to live with this side-effect." he says. torical socialism is not practical, not useful for society," constitution. Hungary, he explains, has throughout his- The solution, he suggests, is Western-style social he said in a Monitor interview. Hungary needs free tory been influenced both from the Fast and West. The democracy. Will it work here? No one, presumably, will elections, a multiparty system, a free-market economy. Western influence, he says with apparent satisfaction, want to know more urgently than Gorbachev. And few "We need more pragmatism and less ideology." now seems poised to reassert itself. people can be more keenly interested in Gorbachev's And this time, he is convinced, Moscow will answer political longevity than the Hungarians. not with tanks, but with thanks. Soviet leader Mikhail T HE new law, to be submitted to a popular Nemeth plays down the link between the pace of Gorbachev, says Nemeth, has told him so. referendum early next year, will drop the tradi- Soviet perestroika and the prospects for reform in Hun- These are heady days in Hungary, even by the tional East-bloc provision for a "leading role" gary. Regardless of what happens in Moscow, he said, standards of perestroika (restructuring) and glasnost for the Communist Party, he says. It will provide for a there was simply "no other possibility than to go fast (openness). The communist-run parliament has en- judicial court - and for a system of checks and balances and to take this [reform] route." dorsed the idea of multiparty elections: A new constitu- among the various branches of government. But another senior official, in an informal chat, is tion, enshrining this and other reforms, is being drawn For reformers like Mr. Kulcsar and Nemeth, one more circumspect. He, like Nemeth, suggests that re- up. The party has named a committee to take a new catalyst for change is simple pragmatism. The old sys- forms in both the Soviet Union and Hungary have look at Hungarian history: One member has already tem has won gradual, grudging acceptance since 1956, progressed too far to be completely reversible. But, he reclassified the 1956 "counter-revolution" as a popular but not the grass-roots enthusiasm needed to ensure adds, smiling, "I wake up every morning wishing that uprising, and Nagy's remains will be reburied with prosperity and stability. Although economic perestroika all goes well for Mr. Gorbachev." N.Y. TIMES 04-13-89 Hungary Ousts 4 Conservatives in a Party Shuffle 183p By JOHN TAGLIABUE the chief ideologist, Janos Berecz, and The decisions, reached after a spe- Special - The New York Times Janos Lukacs, the party's senior ad- clal full session of the Central Commit- WARSAW, April 12-The Hungarian ministrator. tee, elevated two new members into Communist Party shuffled its senior A Visit to Moscew the Politburo, the party's highest rul- leadership today, dismissing the par- ing body, but reduced the overall size ty's chief ideologist and three other The moves were significant, coming from 11 members to 9. The new mem- conservatives on the Politburo and pro- only days after a visit to Moscow by the bers were Mihaly Jasso, the 53-year- moting two advocates of change. party's General Secretary, Karoly old leader of the local Budapest party The moves, approved after a day of Grosz-who-rose to power at a special organization, and Pal Vastagh, the 43. debate within the Central Committee party congress last May, and the an- year-old leader in Csongrad, in eastern of the Communist Party, come at a nouncement of broad liberalizing Hungary. time of stepped-up social and political changes in Poland. Warsaw and Buda- -change They left the core of leaders pest are among the Eastern-bloc capi- Advocates of Change representing the most liberal tenden- tals most agreeable to political and Both men, but notably Mr. Vastagh, a cies, including Imre Pozsgay and economic changes like those that have university lecturer who recently reor- Rezso Nyers, in place. The ousted con- been undertaken throughout the Soviet ganized the Csongrad party structure, servatives on the Politburo included Union. are numbered among advocates of change. A Western diplomat said by tele- phone from Budapest that the moves were seen as necessary to restore the solidity of a party that has been shaken as it struggles to lead Hungary out of serious economic stagnation and main- tain the initiative as alternative politi- cal groups increase. A Concillatory Path Hungarians reached in Budapest said that Laszlo Major, the party spokesman, asked by an interviewer on state television whether the decisions reflected serious breakdown of party unity, replied, "No, no, that is not the case." In excerpts from a report to the com- mittee by Mr. Grosz that were pub- lished in the final statement of the com- mittee meeting and reported by the Hungarian press agency, the party leader sought a conciliatory path. He asserted that while "political, ideologi- cal and organizational" problems had arisen in party ranks, "renewal and development processes had also ap- peared." In the last 18 months, party member- ship has dropped by 100,000, to 780,000 members. The decisions came amid in- creased calls for party unity and action against factions within the party oppos- ing change. Review of Activities In February, the party ordered a full review of its activities and personnel after serious public disagreement among its top leaders. The spark for the differences was afforded by a de- bate over how to define the 1956 events in Hungary, in which Soviet forces crushed the Hungarian uprising. Be- neath the surface, however, what split the leadership was differences over the pace and scope of change. A Compromise View At a Central Committee meeting later that month, the party endorsed a compromise view of the 1956 events, ruling that what began as a legitimate uprising had degenerated into a revolt against the Communist system. But the party leadership appeared to accept the consensus at that meeting that Hungary's economic crisis and politi- cal uncertainties made an open leader- ship split unacceptable. Also dismissed from the Politburo were the Health Minister, Judit Cse- hak, and Istvan Szabo, often identified as a representative of the conservative farm lobby. WASH.POST:04-17-89 Rough Roads Workers Paradise Change Will Create Hardships for Those Who Sought It Most 183 By Jackson Diehl lab United Workers' [Communist] Washington Post Foreign Service Party. I think we will aptil Hip GDANSK, Poland-Nine years after they first seem destined to how transtuous the party will split up. For Kuron, philoso Adam i draped their gates with the banners of Solidarity, the fordes that will rend both sides 10 Michnik and Leszek Kofakowaki, workers of the Lenin Shipyard won their battle this pieces while encouraging danger- 1 and other theorists of the Polish month for independent labor unions and radical political ous currents of populiam and na- opposition, the new wave of change in Poland Yet Solidarity's activists have failed tionalism. As this political upheav- ) change represents the triumph of to get the due pledge that matters most to the workers: al moves forward, millions of ped- that when democracy comes, they will still have jobs. a political formula they began to ple will be dislocated by the ECO- elaborate in the 1970s. Their pro- The huge ard here is bankrupt and, even if some nomic uprooting of socialism as of the 9,000 lebs can be saved, the workers' future posals came in the wake of the inefficient state factories are would remain bleak. As a result of the economic pro- failed attempts at revolution gram that the government and opposition have agreed closed down, prices are ruthlessly against the Communist system in on, all the workers will see their living standards sink raised and vast welfare structures Eastern Europe, such = the Hun- and many will face unemployment and poverty. are replaced with competitive garlan uprising of 1956, ## well as Thus it is that the workers who started Poland's markets. the defeat of efforts by llberal struggle for change now threaten to boycott the histor- The goal of the emerging part- Communist leaders to introduce ic elections for a new parliament and freely elected sen- nerships between the Communist reform from above, most notably ate that their movement achieved. "We are simply try- and opposition elite here and in during the 1968 "Prague Spring" ing to save our skins," Alojzy Szablewski, the yard's Hungary is to ensure that the In Crechoslovakia. veteran Solidarity leader, said of the boycott, aimed at transition remains both peaceful forcing the government to keep the yard open. and orderly enough to be tolerated Broken Monopoly The crisis at Solidarity's birthplace at its moment of by Moscow. Yet. keeping the The Polish dissidents urged the vindication is a sign of the tensions and contradictions peace will require persuading construction of independent, non- large parts of society-among violent movements by citizens into them workers who lose their a "civil society" that would effec- DISMANTLING COMMUNISM jobs-that their sacrifices will tively break the Communist mo- benefit the nation and their chil- Second of three articles nopoly on social organization and dren. set the stage for a negotiated pro- cess of change. To avoid a violent built into the new wave of change beginning in Eastern Splitting Up revolution, Kuron and Michnik Europe. In a shift unimaginable before Mikhail Gorba- chev came to power in the Soviet Union, the Commu- If the process succeeds, neither argued, the ruling Communists nist leaders of Poland and Hungary have embraced Sol- the shipyard nor Solidarity will would eventually accept a partner- survive in anything like their ship with independent groups that idarity's ideals and planned a would organize a gradual, peaceful peaceful evolution away from the present form. Moreover, workers evolution to a more democratic who could move the world in Communist system. 1970, 1980 and 1988 by striking system. The new era of transition differs Solidarity's effort to begin that fundamentally from the reform will never again enjoy SO much process failed in 1980-81, and So- relative political power. economic programs attempted in Eastern viet pressure eventually prompted privilege and social prestige in Europe over the last 20 years— the Polish army to suppress the and now adopted by Gorbachev for their country. Marx's proletarian union. Yet, as the new partnership the Soviet Union. Its aim is not to dictatorship. in some ways per- between opposition and govern- versely realized in the Poland of repair the Marxist-Leninist sys- ment in Poland was formally tem of economic socialism and the 1980s. will be replaced by the sealed this month, the interior one-party rule, but to abandon It in professional and business classes minister, Gen. Creslaw Kiszczak. that dominate western economies everything but name, replacing it who lost a seven-year battle to and the voters who will elect pol- with a market economy and form liquidate the movement, paid the of government modeled after iticians to parliament. dissidents a special tribute: Po- "Someone said to me: 'Well, in land's "reformed sociopolitical sys- those of neutral European states such as Sweden, Finland and Aus- four years Solidarity will win the tem," he said, "is to rest on the elections and the Communists will idea of civil society." tria. As the final document of the be out,' dissident Jacek Kuron Although Hungary's indepen- "round table" accord signed by the wrote in a recent essay. "But that dent and opposition movements Polish Communist leadership is a kind of thinking that supposes are not nearly as large as those of bluntly put it. "This is the begin- that our present situation will still Poland, the party leadership in ning of the road toward parliamen- exist in four years. And our whole Budapest also has adopted the Pol- tary democracy." chance lies in the supposition that ish model, opening talks with op- The new evolution offers the along the way we will create an position groups about a negotiated promise to Poles and Hungarians entirely new political geography, process of change. The two cour.- of gaining the personal freedoms, favoring political stabilization. so tries have developed similar aims economic prosperity and, eventu- that in four years we won't have and even similar timetables: each ally. the real national sovereignty Solidarity running against the Pol- plans a shift to a parliamentary denied them since the division of system through partially demo- Europe in 1945. And yet the pro- cratic elections. Poland will hold cess also involves a crisis of tran- its elections in June, while Hun- sition, creating risks and hardships gary is due to hold its vote early unimagined until now by many of next year after allowing time for those who have fought to initiate new political parties to organize. the change. The Communists would initially be Over the next few years, the guaranteed control over govern- new partnerships between the rul- ment, in part through the institu- ing Communists and opposition tion of a powerful presidency, but forces in Poland and Hungary would yield to free competition by a range of political parties in the mid-1990s. Both Hungary and Poland plan to allow independent and apposi- tion media In the next year, as well WASH.POST:04-17-89 as trade unless. Local government will be Catholic parties. Although they have signed 1 commitment to free strengthened and elected demo- lies in the military and police. parliamentary elections in 1993, cratically while courts will be senior Communist officials are al- OPZZ leaders, topped by party made more independent from the Politburo member Alfred Mio- ready hedging on the pledge, say- party. Meanwhile, econotitic man- ing it is "only a goal. dowicz, are already seeking to un- agers will be trying to shift the "In fact, no dne knows what the dermine the political alliance be- economy to a free market system in which state ownership would situation is going to be like in tween the party leadership and three of four years, no one has any opposition with populist appeals to frustrated workers. idea of how the next elections will Ballic 0 50 Some politicians in Hungary and work," said Michnik. "The idea of MILES Poland now edict that the ruling the Communists is clearly that Gdansk E they will save themselves through parties will eventually split into at GER. Warsaw, least two parts, a hard-line Com- SOVIET this reform process and that they POLAND UNION will win the next elections." munist organization and 1 progres- give Social Democratic party. In Indeed, perhaps the greatest CZECH. Hungary, the Ferenc Munnich So- challenge of the transition to the clety, a group of hard-line Com- AUST new system will be the effort by Budapest munists, already embodies one of HUNGARY the ruling parties in Poland and the trends, while a fledgling Social ROMANIA Hungary to remake themselves Democratic Party is seeking to Black entirely. YUGO. attract the right wing of the ruling Sea Learning Politics Socialist Workers' Party. THE WASHINGTON POST The split in the Communist par- "We have to become a real po- ties will be accompanied by a litical party," said Janos Berecz. breakdown of the opposition into operate on equal terms with co- who until last week was the chief myriad factions that will then have operatives, foreign investors and ideologist of the Hungarian party. to rebuild and ally themselves po- private entrepreneurs. Unemploy- "In the past, our basic role was to litically under conditions of open ment, together with stock mar- control economic production. The electoral activity. The process is kets, will soon appear in both problem was how best to influence already well under way in Hunga- countries. the bureaucracy. Now we have to ry, which nourished only two What will remain of Eastern aim at the citizens. because they broad dissident trends in the Bloc socialism as it has been are the voters. We have to enter 1970s and 1980s but in the last six known since 1945? In Hungary, a into disputes and discussions at months has seen the creation of a vague list of ideals will be written the grass roots and have toierance dozen or more competing noncom- into the constitution. "The consti- for people who shout back." munist parties. many of which are tution will define some values," In theory, Polish and Hungarian further divided by internal splits, explained Istvan Degen, a staff party leaders would like to change In Poland, where Solidarity cre- official of the Hungarian Socialist the profile of their party member- ated an alliance between intellec- Workers' (Communist) Party Cen- ships, bringing in real organizers tuals and workers in 1980 that tral Committee, "such as social and politicians to replace police- claimed to represent the aspira- care as a basic position. not to give men and bureaucrats. and estab- tions of Polish society as a whole, up the possibility of full employ- lish a system of internal democ- many intellectuals and youth have ment as a goal, and the dominance racy rather than issuing orders already split off into separate po- of public ownership, which doesn't from above. Yet in practice, such a litical groups such as the Freedom mean state ownership. After all, if three people start up a company, shift means attacking the positions and Peace Movement. Although that's already public ownership." and privileges of tens of thousands Solldarity remains a powerful sym- In Poland, chief party ideologist of people now employed as party bol. even the union's most loyal managers in factories or in state supporters expect that it will lose Marian Orzechowski was asked by administration. or holding power- much of the rest of its political an interviewer recently, "What ful positions in the huge military activists and may organize only 30 guarantees do people have that the party is not going to give up and security apparatus. to 40 percent of workers. one by one the values and goals In Hungary. the task will be rel- In addition to differences of per- implicit in socialism?" atively easier, because the Hun- sonality or tactics, powerful eco- "There are no such guarantees." garian party retains a large corps nomic forces are changing the po- Orzechowski promptly replied, of intellectuals and political pro- litical landscape in Poland and fessionals, including a number of Hungary. The new economic sys- adding, "because some of the professed Social Democrats, who tem will soon create a class of af- things said by Marx, Engels or strongly favor radical reforms. In fluent private businessmen whose Lenin are no longer true in the Poland. however, repeated purges interests will differ sharply from world today." and upheavals in the Communist those of workers. Even among In private, some party officials party. particularly after 1981, workers, there will be divisions concede that the only check that will prevent Hungary and Poland have had the effect of stripping it between winners in the white-col- close to its core of 900,000 mem- lar professions. who will see their from reverting entirely to West- ern-style democracy in the 1990s hers in the military. security and wages and affluence rise sharply economic apparatus. where the under the new system, and blue- will be the need to maintain ties to Moscow. The party. they say, may average age is 46. collar workers. who will be pushed need to keep control over military After a battle stretching over down the social scale. and foreign policy for an extended several months. Polish Communist Where once East European SQ- leader Wojclech Jaruzelski was cieties were polarized between period to guarantee Warsaw Pac: able to force the overall plan for supporters and opponents of Com- commitments. while economic pol- reform in the country through the munist rule, now they will be icy must be handled in a way that does not radically disrupt trade Central Committee. with about aligned in a more Western fashion with the Soviets. one quarter of its members oppos- according to greater or lesser sup- ing him. port for private enterprise, indus- In Poland, the prospect of full trial development, social welfare democracy is particularly ques- Populist Appeals and environmental protection. tionable because of the likelihood "Until now the political battle has that any Moscow-ailied communist Yet in practice, the Polish party been about whether our countries party would receive only a fraction has already split, with the leader- ship of the Communist-run trade were going to be totalitarian or of the votes in free elections if democratic." said Michnik. "Now forced to run against nationalist or unions established in 1982, known by their initials as the OPZZ, strongly opposing the new pro- gram with the tacit support of al- 3q3 WASH.POST:04-17-89 taught workers' children for free-and made less money-will set up lucrative, and expensive, private clinics and schools. Ironically, the new political sys- tem won by workers' strikes will have the effect of stripping work- ers of much of their disproportion- ate power. By shifting the sources of power from Communist factory organizations and unions to voters and parliaments, the reform pro- cess will probably create political coalitions that, unlike the party, can force the new austerity on. workers and ignore their strikes. A Role for Union In Poland, Solidarity leaders see a role for the union in acting as a bridge between the political re- formers and the workers, nego- tiating the factory closings, price increases and wage restructuring SO that the process moves forward but is bearable for workers. "If Solidarity is going to survive and enjoy mass support, the market reform that Solidarity supports will have to have very strong lim- its," said Ryszard Bugaj, a leading opposition economist. "It must be done with the brakes on. and the whole question will be how much to have the brakes on. There has to be the appearance of an elite that arbitrates between various social groups and the economic policy." Yet both in Poland, where Sol- we will have a completely different landscape, and there will be a dif- idarity's support among workers is ferentiation among the democratic ebbing, and in Hungary, where groups." industrial workers are largely un- Above all, the challenge of the organized, there is a danger that transition to this new system will workers who feel unrepresented be in managing the decline of the in the new political system and biggest losers in the reform pro- besieged economically will rebel. cess: blue-collar industrial work- A repeat of the Hungarian uprising ers. For decades these workers of 1956 or the violent clashes be- have been pampered by Commu- tween workers and troops in Gdansk in 1970 could throw the nist rulers. granted the highest wages and benefits and catered to entire process of change into dis- with free social services and sub- order in Poland and Hungary or sidized food. In Poland, workers prompt Soviet intervention. have also acquired enormous po- "To succeed, we need to be able litical power, making them capable to reach out to people and offer a of halting price increases-or minimum of hope," said Bronislaw bringing down governments- Geremek, one of Solidarity's top with their strikes. strategists. "We need to convince Yet, as the continuing crisis at them that if they accept hardships the Lenin Shipyard portends, one now, they will be rewarded with a of the first steps of the economic dignified and decent life in the fu- reforms in Poland and Hungary ture. Our greatest problem is that will be to close down or radically SO many people now, after all the scale back the operations of inef- failures of recent years in our ficient state-run heavy industries. country. have no hope. We have to Hundreds of thousands of workers find a way to give it to them." will experience unemployment for NEXT: The environmental crisis the first time. Those who remain will be forced to work much hard- er as Western companies and pri- vate investors buy into state firms and insist on major changes in job rules. Meanwhile, workers will see their real wages pushed down while many other groups in society soar ahead of them. Doctors and teachers who once treated and WALL ST.J. :04-20-89 The Hungarians Take Themselves Public Stock Exchange Finds Few Buyers After Budapest Bond Crash By BARRY NEWMAN 1831 waits for bids. The dealers stt. "We are donkeys!" be says without be- Staff Reporter of Tax STREET JOURNAL "Any demand?" asks the woman. ing asked a question. "All bonds cheat the BUDAPEST-With the Cold War wind- "Does anybody want to buy? Any trade? people. The companies don't lose. For ing down, this might be the right time to Who's buying? them, inflation comes in handy. means buy into an underperforming communist Mr. Jarai bends toward the Americans they pay back less! They profit, and we tank stock. and whispers, "Everybody wants to sell. are kaput." New tank orders have declined sharply Nobody wants to buy." from a year ago, market analysts here Regaining Investor Confidence "You mean you mean these are of- say, turning at least one unnamed low-mul- fers for sale and and no buyers?" says The stock exchange hopes to do better tiple maker of Hungarian tank-chassis into Richard Furlaud. Mr. Furlaud, who is in the Investor-confidence department. a prime takeover target for a shrewd port- chief executive officer of Squibb Corp., Hungarians, always ready for calamity, follo investor with staying power over the seems to find this hard to Imagine. still carry a few billion dollars worth of medium term. "Any offers? Any bids?" the woman pocket money. Inducing them to invest It "This company didn't realize that the says. A dealer raises a finger; it's a trade requires a law, due this year, that will in- army wouldn't need more tanks," says at last. Everybody smiles. A flashbulb troduce such comforting movelties as au- Zsigmond Jarai, the pin-striped, 37-year- pops. Mr. Peterson still looks puzzled. dits and annual reports. The law could also old chairman of the Budapest Stock Ex- "Do you have a debt-rating system lead some companies to issue shares, even change. "Now it's looking for some new in- here?" he asks Mr. Jaral. when they aren't about to collapse. vestors. They can buy very cheap." "No, not yet. Just in case, investment bankers. rating Mr. Jarai tips the tank unit as a not "Then how do investors take Into ac- agencies, accountants and brokers are all prospect for repositioning into shipping count risk?" setting up shop. The first brokerage house containers. A buyout feeler. he confides, "They can't," Mr. Jaral says. "This Is off the mark, a firm called Co-Nexus, has may soon fax in from an unspecified a problem. I think in a few years we will opened a swanky office with gray couches, player in the U.S. "They can reorganize have a rating system." gray carpets and red telephones. the company, change the management for Mr. Peterson smiles politely. "I'm a conservative capitalist and Americans," he says. proud of it," says Bela Jansco. A 68-year- The challenge: "We have to get them to Salvation in Equities old with white-blond hair and gold-rimmed understand the Hungarian investment sys- Pressed for time, he and the other glasses, he owned a seat on the old Buda- tem." Americans leave before the action moves pest Stock Exchange. His commissions Entitled to Sell from bonds to stocks. They don't miss dried up in 1948. much. Not a share trades. "It seems the That seems easy enough. Since Jan. 1, "We had 90 years of history," he says. supply side is going a little ahead of the de- any company in Hungary has been entitled "It's different now. We must persuade cli- mand side," says Mr. Jarai. But these are by law to sell any number of shares to ents. We must explain everything. So far. anybody. Marxism's other big market early days, and few in this country doubt nobody is interested." But then he flushes that socialism's salvation lies in equities. with enthustasm and adds: "The fact that maker, China, has eased off on stocks and A stock market, the Hungarians have bonds since a recent drop in the ideological shares are on sale is a great advance for indicators. But Hungary advises a blanket realized, is an ingenious device for moving our ideology." "buy." And investors here can span the money around. It can supplant central On the assumption that Mr. Jansco and planners in much the same way the steam spectrum now from socialist worker to his future competitors do eventually in- capitalist raider. engine supplanted mules. An ideologue spire a trade or two, the stock exchange is Still, a communist stock market does may fear the rise of a class that gets rich rushing to get ready. Advisers are piling in have its inconsistencies. Even the most cutting coupons. but Hungary's managers from London. Milan. and the World Bank. flexible of the East Bloc's reform-driven have other worries. They are losing subsi- Soon, a tender will go out for the computer dies. They need cash. hardware. And the search is on in Buda- nations may take five or 10 years to iron them out. Hungarians are hard put to ex- "Of course, some people are against all pest for a trading floor. this," Mr. Jarai says. "They are the ones plain. for instance. how it is that a com- Unfortunately, the old stock exchange who lost money when the bond market pany owned by the people can go public. building isn't available; it was seized by crashed." Among companies that do, an unnervingly Hungarian television. But Mr. Jarai has large proportion are close to going bank- For those who missed it, the Hungarian his eye on another place. It's a big. empty rupt. Or SO it's said, since an outside inves- bond-market crash took place in October of room at Karl Marx University. 1987, when something else caused a dis- tor has no way of finding out. traction in New York. To recap: In 1984, Maybe this is why Peter G. Peterson the bond market opened; yields were 11%, looks puzzled. Mr. Peterson, former chair- inflation 7%. A few hundred thousand peo- man of Lehman Bros., is an investment ple bought. Three years later, with yields banker who heads the Blackstone Group, still at 11%, the government issued an in- specializing in mergers and acquisitions. flation forecast of 15%. A few hundred Now he sits against the blank wall of a thousand people sold. windowless room, in a row of touring Prices therefore dropped. Rudely sur- Americans with similarly puzzled looks. prised by this, the crowds have since They have come here, to the stock ex- thinned in the lavish bond-buyers' hall of change, to watch some stock get ex- Budapest Bank. Marble columns, brass changed. Mr. Jarai stands to one side, ex- chandeliers and reassuring beeps from plaining. computer terminals haven't done much for A woman at a microphone first recites customer relations. a list of bonds. At narrow black tables, 25 On a weekday morning, one sad man dealers from the state's banks sit mute. studies the gold-lettered list of bond prices Each time the woman reads a name, she on a board at the hall's grand entrance. :04-22-89 Radical Economic Pribatization of State-Owned Companies Proposed Before Karacs that could liabe up annually with the BUDAPEST- high level Hum- Soviets would then insist garian government committee has market quality to match the drafted a far-reaching three-year The government's economists program that would abandon step- the Soviet Union would be by-step economic reforms in faver of to pay compensation. radical measures such as factory "I have talked to three prominent closings, privatization of state-owned Soviet economists-[Oleg] Bogomo- companies, budget cuts and the lov, [Leonid] Abalkin and [Abel] stimulation of private enterprise. Aganbegyan," Akos Balassa, a mem- The draft program also calls for ber of the Hungarian government switching trade with the Soviet reform committee, said in an inter- Union to a dollar basis within two to view, "and they have all described five years, and negotiating for asso- the idea [of hard-currency trade]-bs ciate membership in the European conceivable." The idea also was dis- Community. cussed by Prime Minister Miklos The 115-page document was pre- Nemeth during his recent trip to pared by the government's Econom- Moscow, and the Soviets were said ic Reform Committee, set up last to be impressed by the potential of year under Rezso Nyers, a senior gaining a great deal of hard currency Cabinet minister and a member of at the outset. the Communist Party's Politburo But for Hungary, Balassa ex- who was the father of Hungary's plained, the initial flow of dollars- to 1968 economic reforms. Moscow would be offset by the The document is remarkable for long-term prospect that "Hungary its pessimism about the prospects could become a bridge" for trade for change within the Soviet Bloc: "It "between the West and the Soviet would be an illusion to expect rapid Union," attracting Western firms positive change. since even in the that seek to tap the potential Soviet Soviet Union the transformation of market. the internal economic mechanism is The draft program foresees that by expected to be rather a slow and the end of 1992 the infrastructure of contradictory process, and several the domestic market would be in Comecon countries do not support place, with stock exchanges to help any changes." Comecon is the East- the flow of capital into the country. em Bloc's trading organization. State-owned enterprises would be The document notes that Moscow split up, turned into joint-stock com- has given Hungary carte blanche to panies or sold to private individuals implement internal changes, "provid- and foreign capitalists. ed the reforms do not fundamentally By that time the first steps would alter our alliance commitments." But have been taken to make the domes- the rest of Eastern Europe, the com- tic currency, the forint, convertible, mittee's report warns, is likely to be- and Hungary would be seeking associ- come a disaster zone where "the ation with the European Community. emergence of new focal points of cri- The government plan envisions a sis or the deepening of old crises form of associate membership, with cannot be excluded." Hungary undertaking to "adapt to the The solution for Hungary, the au- internal rules and norms of the Com- thors argue, is to make drastic cuts mon Market" while the EC would al- in its trading ties with the East, low Hungarian goods free entry. while maintaining its membership in The government intends to unveil Comecon. and to reintegrate into the program next month, and until the world market. then changes could still be made. But The program offers two alterna- government sources are confident the tives for switching trade with the Communist Party, whose final seal of country's largest export market, the approval is required before the plan Soviet Union, to a dollar basis. Ac- can be submitted to parliament, will cording to the first version, dollar raise no objections. trade with Soviet companies should Opposition to the program is more be introduced in 1991, virtually likely to come from abroad-from overnight. The second alternative Hungary's Communist allies and from sees a gradual, five-year transition Western creditors. concerned over to dollar trade. the need for additional credits on top Although Hungary currently has of a current foreign debt of about an annual trade surplus of 150 mil- $13.5 billion. While the document lion rubles (about $240 million at of- mentions no figure, Balassa said Hun- ficial exchange rates) with Moscow, gary would need a modernization loan thanks to the unrealistic pricing of between $1 billion and $1.5 billion mechanism that operates within Co- to implement the huge structural mecon, economists here estimate changes the program would entail. wouldn't qualifs 40 2 (c) - usually Hn r any now one Y R wainer - Few weels yo Bish signed I YR Waner -we DONTWANT SYR, BECAUSE it WOULD HURT THEM. House votel down 5 yR MONDAY, AUGUST 28, 1989 A13 Jim Hoagland English Spoken-in Paris? That Day Is Coming PARIS-Even in an era when Communist the calculation that Germans, Spaniards, Danes- dictators use their powers to promote demo- and others would continue to choose English as cratic elections, when Republicans preside over their primary foreign language and. turn to huge budget deficits and HUD scandals in French as a a respectable second choice. Washington, when the greenhouse effect and "The integration of Europe is changing the temperature inversions scramble the weath- way history is taught and culture is perceived in er-even then, Americans should be able to these countries. We can be less nationalistic" count on a few time-tested verities: Like Mike and more open to cooperating with other na- Tyson's left jab, ants at a picnic, the French tions, Allais said. "In France, as a result of two being snooty and defensive about their lan- World Wars, history was taught in a very guage and culture. But another fixed point of the international landscape is on the move. The French are beginning to recognize that the sun has set on "It is a dangerous thing their linguistic empire. They increasingly see that language is an important weapon in the for the educated classes commercial wars raging around the globe and that the tongue profiting from this is not theirs. of important countries President George Bush put it-bluntly this summer in Budapest in announcing the dispatch of Peace Corps English-teachers to Eastern not to speak foreign Europe for the first time. "English is the lingua franca of world business, the key to clinching languages." deals from Hong Kong to Toronto. Learning English would "open the global market to more -Maurice Allaiso Hungarians," Bush said Not too long ago, Bush's contention (not to nationalistic way." This is no longer necessary mention his syntax) would have been derided, or desirable. satirized or ignored by French intellectuals and I had expected Allais to provide provocative politicians. Now, any number of Frenchmen will insights about his country; I had not expected tell you that Bush is absolutely right. And they him to provide them about my own. But Ameri- will tell you so in English if you don't speak cans should consider the contrast drawn by this French. That is news, as any monolingual sympathetic and perceptive foreign observed; American who has visited Paris before this between Europe and the United States. change began will tell you. The concern expressed in Le Monde, Allais On the day Bush was speaking in Budapest, told me, was prompted by a recent trip abroad his point was being echoed here by Maurice during which he was stunned by the extent to Allais, the 1988 Nobel laureate in economics. which "educated people in Japan, in Canada Writing in Le Monde, the Paris daily, Allais told the United States do not speak French or any his countrymen that it was time to adjust to the Photo Copy Preservation other foreign language. It is a dangerous thing economic and scientific realities created by the for the educated classes of important countries growing dominance of English in the world not to speak foreign languages. We are heading today. into an era of greater mutual incomprehension Allais is a well-known figure in France, and among peoples, when demographic trends are not just because of his Nobel for economics, the destabilizing many countries, when Latin Amer- first ever to a Frenchman. A few weeks before ica is economically unstable, when communist the October stock market crash in 1987, he societies are unstable, when we may be on the published several articles warning of the "insta- edge of chaos." bility" of financial markets and the dangers Allais sees the growing acceptance of English investors faced. Since then, when Allais writes, as having negative feedback for Americans who people listen. no longer feel any pressure to learn foreign He is now warning the French that they have languages. "What strikes me when I visit Amer" to accept and try to exploit the secondary rank ica is that it seems much more nationalistic that France commands as a linguistic power if than ever. And I am struck by the degradation they are to avoid a broader intellectual crash. of English in public use, in newspapers or in By agreeing to publish more in English. and speeches. It is as if the American people feel achieve wider international recognition, intel- they can afford to be indifferent to their lan lectuals can preserve "French thought," as op- guage." posed to the French language. This Luther- As Bush noted in his Budapest speech, for esque schism between French thought and eigners today are not indifferent to Englishr French language would have been branded They are eager to learn English and other heresy even a decade ago. Today, it wins Allais foreign languages and to use them correctly; support. and expressively as a passport to fuller and The Allais plan also includes European trea- better lives. That is true today even for the ties to require university graduates to learn two French. foreign languages. He would graft these trea- It is a desire that every American should ties onto the European integration process in share. Maried. PRESIDENTIAL ADDRESS: HUNGARY DEPARTURE STATEMENT JULY 13, 8:35 A.M. I WOULD LIKE FIRST TO THANK OUR HOSTS, AND THE PEOPLE OF HUNGARY, FOR THE WARMTH OF THEIR HOSPITALITY TO BARBARA AND ME. ((ACKNOWLEDGE LEADERS)) I WAS THE FIRST VICE PRESIDENT OF THE UNITED STATES TO VISIT YOUR COUNTRY SIX YEARS AGO. BUT NOW I AM ESPECIALLY HONORED TO BE THE FIRST AMERICAN PRESIDENT TO HAVE COME TO THIS BEAUTIFUL LAND. - 2 - DURING THE PAST TWO DAYS WE HAVE MET WITH HUNGARIANS FROM EVERY WALK OF LIFE. I SAW ((TURN-OUT NUMBER)) HUNGARIANS TURN OUT AT KOSSUTH SQUARE, A REMINDER OF THE SACRIFICES OF HUNGARY'S PAST. AT PARLIAMENT, I MET WITH THE POLITICAL LEADERS OF THE PRESENT - -- LEADERS WHO HAVE THE COURAGE TO CALL FOR AN HISTORIC ELECTION. - 3 - AND AT KARL MARX UNIVERSITY, I SAW THE HOPEFUL FACE OF HUNGARY'S FUTURE AND ANNOUNCED A SERIES OF AMERICAN ACTIONS TO ENGAGE MY COUNTRY MORE DEEPLY IN THAT FUTURE. AND THROUGHOUT, I FELT A DEEPENING OF THE FRIENDSHIP BETWEEN THE AMERICAN AND THE HUNGARIAN PEOPLES. - 4 - IN JUST A MOMENT, WE WILL LEAVE FOR PARIS FOR AN ECONOMIC SUMMIT WITH WESTERN LEADERS. THIS WILL BE AN HISTORIC MOMENT FOR EUROPE, FOR THE NATIONS OF THE ECONOMIC COMMUNITY ARE MOVING STEADILY TOWARD ECONOMIC INTEGRATION IN 1992. AND THIS SHOULD MEAN MORE THAN JUST A VAST TRADE OPPORTUNITY FOR HUNGARY. As YOUR ECONOMY MODERNIZES, YOU WILL PLAY AN EVER GREATER ROLE IN THE EVOLUTION OF A NEW EUROPE -- A EUROPE THAT IS WHOLE AND FREE. - 5 - WHILE IN PARIS, WE SHALL ALSO CELEBRATE THE INDEPENDENCE OF THAT NATION AND THE DECLARATION OF THE RIGHTS OF MAN. BUT THESE RIGHTS ARE NOT FRENCH, NOR ARE THEY AMERICAN. You ARE PROVING, HERE IN THE HEARTLAND OF EUROPE, THAT THE RIGHTS OF MAN ARE THE PROPER BIRTHRIGHT OF US ALL. THANK YOU FOR YOUR WARM WELCOME, GOD BLESS YOU, AND GOD BLESS HUNGARY. # # # Services of Mead Data Central PAGE 2 16TH DOCUMENT of Level 1 printed in FULL format. Public Papers of the Presidents Remarks to Students and Faculty at Karl Marx University of Economics in Budapest, Hungary 25 Weekly Comp. Pres. Doc. 1084 July 12, 1989 LENGTH: 2458 words Mr. President and Mr. Prime Minister and Mrs. Nemeth, ladies and gentlemen, Dr. and Mrs. Csaki, it is a great pleasure for Barbara and me to be back in Budapest. And I am very proud to be the first American President to visit Hungary. Some might find it ironic that I am speaking at a university named after Karl Marx. [Laughter] If you don't find it ironic in Hungary, try it on for size in the United States. But the fact that I am here today is less a cause for surprise than proof that America welcomes the unfettered competition of ideas. And I understand that 50 or so of the faculty from this great university have been as either students or teachers in the United States of America. And that is a very good thing for my country, and I'm glad you came our way. The University's principal task is to promote a competition -- an unfettered competition of ideas. And that is the spirit that brings us together: a spirit that guided a great teacher at Karl Marx University, whose name was Imre Nagy. As his fu neral proceeded in Heroes Square a few weeks ago, the rising voice of Hungary was heard reciting the "Szozat" [patriotic poem]. And in this simple, somber ceremony, the world saw something more than a dignified act, an act of reconciliation. We witnessed an act of truth. It is on this foundation of truth, more solid than stone, that Hungarians have begun to build a new future. A generation waited to honor Imre Nagy's courage; may a hundred generations remember it. While Hungary rediscovers its natural role in the affairs of Europe, the world again looks to you for inspiration. A popular nonfiction book in my country today is entitled = Budapest 1900." Dr. John Lukacs lovingly describes the Budapest of memory, with its proud stock exchange and great opera, a time when Europe's first electric subway ran underneath the handsome shops of Andrassy Avenue. A city that rivaled Paris in its spendor, Vienna in its music, London in its literature, a center of learning that enlightened the world and gave America one kind of genius in Joseph Pulitzer, another in Bela Bartok. But for four decades, this great city, this great nation, so central to the continent in every respect, has been separated from Europe and the West. And today Hungary is opening again to the West, becoming a beacon of light in European culture. And I see people in motion - color, creativity, experimentation. I see a new beginning for Hungary. The very atmosphere of this city, the very atmosphere of Budapest, is electric and alive with optimism. Your people and your leaders -- government and opposition alike -- are not afraid to break with the past, to act in the spirit of truth. And what better example of this could there be than one simple fact: Karl Marx University has dropped "Das Kapital" from its required reading list. Some historians argue LEXIS® NEXIS® LEXIS® NEXIS® Services of Mead Data Central PAGE 3 25 Weekly Comp. Pres. Doc. 1084 that Marxism arise out of a humane impulse. But Karl Marx traced only one thread of human existence and missed the rest of the tapestry the colorful and varied tapestry of humanity. He regarded man as hapless, unable to shape his environment or destiny. But man is not driven by impersonal economic forces. He's not simply an object acted upon by mechanical laws of history. Rather, man is imaginative and inventive. He is artistic, with an innate need to create and enjoy beauty. He is a loving member of a family and a loyal patriot to his people. Man is dynamic, determined to shape his own future. The creative genius of the Hungarian people, long suppressed, is again flourishing in your schools, your businesses, your churches. And this is more than a fleeting season of freedom. It is Hungary returning to its normal, traditional values. It is Hungary returning home. Voices long stilled are being heard again. An independent daily newspaper is now sold on the streets. Commercial radio and television stations will broadcast everything from the news to the music of Stevie Wonder. And Radio Free Europe is opening its first Eastern European Bureau right here in Budapest. Along your border with Austria, the ugly symbol of Europe's division and Hungary's isolation is coming down, as the barbed wire fences are rolled and stacked into bales. For the first time, the Iron Curtain has begun to part. And Hungary, your great country, is leading the way. The Soviet Union has withdrawn troops, which I also take as a step in overcoming Europe's division. And as those forces leave, let the Soviet leaders know they have everything to gain and nothing to lose or fear from peaceful change. We can - and I am determined that we will - work together to move beyond containment, beyond the Cold War. One of the key steps is moving beyond containment is easing the military confrontation in Europe. To this end, the NATO[North Atlantic Treaty Organization] allies joined, at the May summit meeting, in my proposal of a comprehensive conventional arms control initiative, an initiative that would cut the number of tanks, armored troop carriers, artillery, combat aircraft, attack helicopters, as well as United States and Soviet troops stationed on foreign soil in Europe --- all to lower, equal levels. The issues may be complex, but we're working, day and night, to get a solid, historic agreement to strengthen ability in Europe and reduce the risk of war. And we are determined to get it soon. No, there is no mistaking the fact that we are on the threshold of a new era. And there's also no mistaking the fact that Hungary is at the threshold of great and historic change. You're writing a real constitution, and you're moving toward democratic, multiparty elections. And this is partly possible because brave men and women have formed opposition parties. And this is possible because Hungarian leaders are going to show the ultimate political courage: the courage to submit to the choice of the people in free elections. But to succeed in reform, you'll need partners partners to help promote lasting change in Hungary. And I am here today to offer Hungary the partnership of the United States of America. Three vital spheres stand out in our partnerships: economics, the environment, and democratic and cultural exchange. LEXIS® NEXIS® LEXIS® NEXIS Services of Mead Data Central PAGE 4 25 Weekly Comp. Pres. Doc. 1084 The United States believes in the acceleration of productive change, not in its delay. So, this is our guiding principle: The United States will offer assistance not to prop up the status quo but to propel reform. Of course, the weight of the past still burdens Hungarian enterprise. There are remnants of the Stalinist economy - huge, inefficient industrial plants and a bewildering price system that is hard for anyone to understand, and the massive subsidies that could economic decisions - all of this slows what you could otherwise achieve. It's an economic Rubik's Cone that defies solution. To make the transition to a productive economy will test your mettle as a people. The prices of some commodities may rise. Some inefficient businesses and factories will close. But the Hungarian Government is icreasingly leaving the business of running the shops to the shopkeepers, the farms to the farmers. And the creative drive of the people, once unleashed, will create momentum of its own. And this will bring you a greater treasure than simply the riches you create. It'll give each of you control over your own destiny -- a Hungarian destiny. And as I said, the United States will be your partner in this transformation to a successful economy. Last Thursday at the White House, I invited leaders from business, education, labor, and other fields to come to the White House and discuss the new private sector opportunities opening up in Hungary. And their response was enthusiastic. This was especially true of Hungarian-Americans, so proud to be building a bridge between their new country and their motherland. As long as our two governments ease the way, the people of America and Hungary can do the rest - the people can do the rest. And it is in this spirit that I want to announce the following measures. First, as I said in Warsaw, I will propose at the Paris economic summit concerted Western action, for Poland and Hungary, to back your reforms with economic and technical assistance from the summit partners. Of course, our efforts for Hungary will be targeted to your needs. And second, I will ask the United States Congress to authorize a $25 million fund as a source of new capital to invigorate the Hungarian private sector. I'll also encourage parallel efforts from the other nations of the economic summit. And third, once your Parliament passes the new emigration legislation proposed by your Council of Ministers, I will inform our Congress that Hungary is in full compliance with the Jackson-Vanik amendments to our 1974 trade law. No country has yet been released from the restrictions of this amendment. So, I am pleased to tell you that Hungary will be the first. And this action will give Hungary the most liberal access to the American market for the longest terms possible under our laws. Fourth, America is prepared to provide your country with access to our Generalized System of Preferences, which offers selective tariff relief. Simply put, these last two measures will allow you to take advantage of the largest single market in the entire world. And fifth, we've concluded a draft agreement to authorize the Overseas Private Investment Corporation OPIC we call it - to operate in Hungary. And once our Senate passes the enabling legislation, OPIC will be able to LEXIS® NEXIS® LEXIS® NEXIS® Services of Mead Data Central PAGE 5 25 Weekly Comp. Pres. Doc. 1084 provide insurance to encourage American investment in private enterprises in Hungary. Through OPIC, American business executives will see firsthand the great opportunity of Hungary. Private investment is critical for Hungary. It means jobs, innovation, progress. But most of all, private investment means a brighter future for your children, a brighter future for Hungary. And yet economic progress cannot be at the expense of the air we breathe and the water we drink. Six weeks ago, in Mainz, I proposed cooperation between East and West on environmental issues. And that is why I will ask the United States Congress to appropriate $5 million to establish an International Environmental Center for central and eastern Europe, to be based right here in Budapest, which will bring together private and government experts and organizations to address the ecological crisis. After all, our shared heritage 15 the Earth. And the fate of the Earth transcends borders; it isn't just an East-West issue. Hungary has led eastern and central Europe in addressing the concerns of your citizens for cleaner air and water. And now you can do even more, working with the West to build a bridge of technical and scientific cooperation. Along these lines, I am also pleased to announce that the United States has proposed an agreement between our two countries to establish scientific and technical cooperation in the basic sciences and in specific areas, including the environment, medicine, and nuclear safety. It is my hope that this visit will also lead to a wider exchange between East and West 50 our scientists, our artists, and our environmentalists can learn from one another; 50 that our soliders and statesmen can discuss peace; and our students -- God bless them -- can discuss the future. But to discuss anything requires a common language. The teaching of the English language is one of the most popular American exports. And as students, you know that English is the lingua franca of world business, the key to clinching deals from Hong Kong to Toronto. So, to open the global market to more Hungarians, I am pleased to announce that the Peace Corps will, for the first time, operate in a European country. And our Peace Corps instructors will come to Budapest and all 19 countries to teach English. And in such exchanges, we want to help you in your quest for a new beginning as a democratic Hungary. So, the United States is also committing more than $6 million to cultural and educational opportunities in eastern Europe. We will make available funds for a series of major new U.S. -Hungarian exchange programs -- among Congressmen and legislative experts; among labor business leaders; among legal experts; among community leaders, educators, and young people. We are creating dozens of fellowships to enable Hungarians to study at American universities. And we will find endowed chairs in American studis at your universities, and books - many thousands of them -- to fill the shelves of your new International Management Center and the libraries of schools and universities across Hungary. And the United States will also open, within the next several years, an American House in the center of Budapest. Today the celebrated American architect Robert Stern is releasing his design for this center, which will be an open house of books, magazines, and video cassettes -- an open house of ideas. LEXIS® NEXIS® LEXIS® NEXIS Services of Mead Data Central PAGE 6 25 Weekly Comp. Pres. Doc. 1084 And 50, in conclusion, in economic reform and democratic change, in cultural and environmental cooperation, there are great opportunities and great challenges. Hungary has a lot of work ahead, and so do the United States and Hungary, working together to build this better future dynamic future. Your challenge is enormous and historic: to build a structure of political change and decentralized economic enterprise on the ruins of a failed Stalinist system. And given the opportunity to show your characteristic initiative, creativity, and resourcefulness, I believe that the Hungarian people will meet the challenge. You stand on the threshold of a new era of economic development and, yes, political change. And I believe with all my heart that you are ready to meet the future. I see a country well on the way. I see a country rich in human resources - rich in the moral courage of its people. I see a nation transcending its past and reaching out to its destiny. I congratulate you for having come 50 far. And let us be equal to the opportunity that lies before us. Let us have history write of us that we were the generation that made Europe whole and free. Thank you all. God bless each and every one of you. Thank you very much. Note: The President spoke at 1:35 p.m. in Aula Hall at the university. In his remarks, he referred to Bruno Straub, President of Hungary's Presidential Council; Prime Minister Miklos Nemeth; Csaba Csaki, rector of the university; and Imre Nagy, former Hungarian Prime Minister and leader of the 1956 uprising against Soviet domination of Hungary. Prior to his remarks, the President participated in a discussion with students at the Old Prison on Castle Hill. LEXIS® NEXIS® LEXIS® ® NEXIS® Services of Mead Data Central **** * 6 PAGES 224 LINES * * 4:36 P.M. STARTED 4:37 P.M. 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