OMRI DAILY DIGEST
No. 72, 11 April 1996

SLOVAK PRESIDENT VETOES TERRITORIAL ADMINISTRATION BILL. Michal Kovac on
9 April refused to sign the law on Slovakia's territorial
administration, which would divide the country into eight regions and 79
districts, Slovak media reported two days later. The opposition has
sharply criticized the law, particularly Hungarian minority deputies,
who fear that together with anticipated changes in the electoral law, it
could negatively affect their parliamentary representation. Hungarian
officials have said the bill contravenes the Slovak-Hungarian treaty.
Kovac was mainly concerned about the provision that Bratislava would no
longer have the status of an independent region. He asked that the law's
implementation be delayed from 1 July 1996 to 1 January 1997. -- Sharon
Fisher

AUSTRIAN CHANCELLOR IN SLOVAKIA. Franz Vranitzky visited Slovakia on 10
April to receive an honorary doctorate from Bratislava's Economic
University, Sme reported. "I consider politics the antithesis to slogans
of populism and nationalism..., which arouse fear and uncertainty,"
Vranitzky said. He added that "as long as political reforms are
concentrated only on introducing legal norms, the application of
technical know-how in the economy, and the administration and management
of modern political parties, there is a danger that democracy and the
fundamental needs of citizens will be overlooked." Vranitzky told Slovak
Prime Minister Vladimir Meciar that he considers it "very important"
that Slovakia is among the first group of countries admitted to the EU.
Vranitzky and Meciar also discussed a trilateral meeting--to include
Hungarian Prime Minister Gyula Horn--scheduled for July in Slovakia. --
Sharon Fisher

GERMAN DEFENSE MINISTER IN HUNGARY TO DISCUSS NATO. Volker Ruhe has said
that NATO membership is not conditional on the deployment of nuclear
weapons or the stationing of foreign troops on the territory of future
member states, Hungarian media reported on 11 April. Following talks
with his Hungarian counterpart, Gyorgy Keleti, in Budapest, Ruhe also
said that NATO plans to reduce its defense capability in the near future
and thus it may be the case that no nuclear weapons will be deployed in
states that prefer to remain nuclear-free. Commenting on Romanian
Defense Minister Gheorghe Tinca's concerns about NATO expansion (see
OMRI Daily Digest, 10 April 1996), Ruhe said neither the EU nor NATO is
capable of admitting all Eastern European states at the same time. He
said he would ask Tinca to clarify his position. -- Zsofia Szilagyi

ROMANIAN ELECTIONS TO BE POSTPONED? Ioan Gavra, deputy chairman of the
Party of Romanian National Unity, has pointed out that the Hungarian
Democratic Federation of Romania's decision to take the new law on local
elections to the Constitutional Court means local elections cannot be
held in late May or early June, Radio Bucharest reported. General and
presidential elections will also have to be postponed, since the
constitution stipulates that at least six months must separate local and
other elections. In a related development, Dinu Zamfirescu, a leader of
the Liberal Party '93, denied that his formation will join the pact
recently concluded between the Social Democratic Union and the Party of
Civic Alliance for the local elections. Meanwhile, a Romanian Senate
commission on 10 April voted in favor of lifting the parliamentary
immunity of Corneliu Vadim Tudor, leader of the extreme nationalist
Greater Romania Party. The plenum will now have to vote on the issue. --
Michael Shafir

[As of 12:00 CET]

Compiled by Jan Cleave


OMRI DAILY DIGEST
No. 71, 10 April 1996

U.S. CONGRESSMAN TIES SUPPORT FOR ROMANIA TO EXCLUSION OF EXTREMISTS
FROM GOVERNMENT...Tom Lantos, in Bucharest on 9 April, said he is ready
to help Romania obtain most-favored-nation status and join NATO--on
condition that "no extremist party" is included in Romania's government
after the fall elections, Reuters and Romanian media reported. Lantos
was speaking after meetings with Foreign Minister Teodor Melescanu,
President Ion Iliescu, and Defense Minister Gheorghe Tinca. Radio
Bucharest cited Lantos as saying he is ready to offer help to Budapest
and Bucharest to reach an agreement on the basic treaty, but he added
that he is sure this will not be necessary since the two sides will
reach an agreement by themselves. He also said Romania has to improve
its record of treating national minorities and singled out the issue of
the Hungarian-language university in Cluj. -- Michael Shafir

...WHILE FUNAR CALLS HIM "ENVOY OF HUNGARIAN IRREDENTISM." Gheorghe
Funar, chairman of the Party of Romanian National Unity (PUNR), said in
a declaration broadcast by Radio Bucharest that Lantos's visit was aimed
at pressuring Romania into signing the basic agreement with Hungary
under conditions advantageous to Budapest. He called Lantos, who is of
Hungarian origin, "an envoy of Hungarian irredentism." The PUNR is still
a member of the ruling coalition, although the main coalition partner,
the Party of Social Democracy in Romania, has said it intends to end its
alliance with Funar's group. -- Michael Shafir

ROMANIAN DEFENSE MINISTER FORESEES "ARMS RACE IN REGION." If Hungary
were granted NATO membership before Romania, there could be an arms race
in the region, Romanian Defense Minister Gheorghe Tinca said in an
interview with the Hungarian daily Magyar Hirlap on 9 April. Tinca also
suggested that instead of competing for NATO membership, the two
countries should accelerate talks on the pending basic treaty, improve
bilateral relations, and promote the so-called historic reconciliation.
Hungarian Foreign Minister Laszlo Kovacs responded that Hungary is
neither in a race to improve its military arsenal nor competing for NATO
membership with any country. He added that Hungary would like to see its
neighbors join NATO as soon as possible because that would improve
bilateral relations and the situation of ethnic Hungarian minorities. --
Zsofia Szilagyi

[As of 12:00 CET]

Compiled by Jan Cleave


Thursday, 11 April 1996 Volume 1, Issue 326


REGIONAL NEWS
_____________

-------------------------------------
HUNGARY WILL NEVER START AN ARMS RACE
-------------------------------------
Hungary will not start an arms race with its neighbours if it is
accepted into NATO before them, Defence Minister Gyorgy Keleti
said on Wednesday.  Romanian Defence Minister Gheorghe Tinca, in
a newspaper interview published on Tuesday, said that accepting
Hungary into NATO before Romania could lead to an arms buildup
because it would alter the balance of power in the region.  Ruhe
said it would be virtually impossible for all of the countries
that want to join NATO to enter at the same time.  The German
minister is on the final day of a three-day official visit.


> ---------------------------------------------------------
LEGAL CORNER: SLOVAK PRESIDENT REJECTS ADMINISTRATION LAW
> ---------------------------------------------------------
President Michal Kovac on Wednesday refused to sign a state
administration law which has aroused opposition from leaders of
the country's Hungarian minority.  But Kovac said he was
returning the law to parliament because Bratislava would no
longer enjoy the status of an independent region and would loose
special financial support, rather than because of worries raised
by the Hungarian community. The law would divide the country
into eight regions and 79 districts, instead of the present
three regions and 38 districts, with Bratislava as a fourth
region.  Leaders of the 600,000-strong Hungarian community, who
voted against the law when parliament passed it last month, say
the new districts would weaken the minority's voting power by
splitting it into several new districts.

But, Interior Minister Ludovit Hudek, whose ministry has been
chiefly instrumental in drafting the law, said it had been drawn
up to decentralise state  administration and bring greater
contact with the population.  However, the real reason for the
law may be something known in American political slang as
gerrymandering, where the new districts are being created to
ensure a large number of coalition majorities in future
elections.  Regardless of the reason, Parliament can override
Kovac's veto with a new majority vote, although the opposition
could challenge the law in the constitutional court.


BUSINESS NEWS
_____________

> --------------------------------------------
GERMAN INVESTORS SAY HUNGARY MOSTLY POSITIVE
> --------------------------------------------
German investors see good prospects in Hungary for 1996 but worry
about inflation and the black economy, a survey of the
German-Hungarian Industrial and Commercial Chamber showed.  Of
German 100 firms surveyed in February, 88 percent expected
business turnover to rise in 1996.  The business outlook differs
according to sectors.  Firms in the service sector regard
prospects as good and construction industry companies also post
rising orders. But, companies manufacturing and distributing
consumer goods primarily in the food industry, are suffering
from falling real incomes.  Drugs makers see their situation
unfavourably as Hungary continues to clamp down on social
spending.  The companies mentioned macroeconomic stabilisation
and growth in certain sectors, as well as the still relatively
low wage costs, as factors which favourably influence the
market.  Figures, released by the Chamber, estimate that German
exports to Hungary in 1996 will rise to 8.2 billion marks and
imports will reach 6.8 billion marks.


> -----------------------------------------
HUNGARY TO TRY TO NARROW RUSSIA TRADE GAP
> -----------------------------------------
Hungary will intensify its efforts to sell more goods in Russia
to reduce its huge deficit in bilateral trade, the Ministry of
Industry and Trade said on Wednesday.  The trade gap with
Russia, where Hungary buys most of its crude and natural gas
supply and important basic materials, widened to $1.018 billion
last year from $939 million in 1994,  Hungary's overall trade
deficit amounted to $2.6 billion in 1995. Total trade with
Russia rose to $2.662 billion last year from $2.553 billion in
1994.


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