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17 JUNE 1987

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JPRS-EER-87-095

17 JUNE 1987

EAST EUROPE

CONTENTS

POLITICAL

CZECHOSLOVAKIA

Adamec Receives Czech Religious Figures

(CTK, 25 May 87)

Pope's Latin American Trip Analyzed

(Radim Drozd; TRIBUNA, No 17, 29 Apr 87) ^

Hoffmann Addresses Party Functionaries Aktiv

(PRAVDA, 20 May 87) *

International Seminar on Communist Movement Opened

(PRAVDA, 28 Apr 87)

WFTU Official on Need for Changes in ILO

(Emil Hamernik Interview; PRAVDA, 19 May 87) '

Writers Congress Closes 15 May; Kozak Reelected

(Prague Domestic Service, 15 May 87)

Economic Restructuring Placed in Wider Context

(Editorial; RUDE PRAVO, 30 Jan 87)

Briefs

PRAVDA Chief Editor Funeral 14

- a -
HUNGARY

Chief Military Censor on Censorship

(Albert Gomori Interview; MAGYAR HIRLAP, 14 Apr 87) 15

Officials Visit River Barrage Construction

(NEPSZABADSAG, 18 Apr 87) 18

Ranki's Book Revises View of Horthy Regime

(Janos Poto; MAGYAR HIRLAP, 7 Jan 87) 19

POLAND

Ethiopian Foreign Minister Received

(Marian Orzechowski; PAP, 7 May 87) 22

Defense Minister Addresses Military Council

(Longin Szczerba; ZOLNIERZ WOLNOSCI, 4 May 87) 24

WW II Communist Resistance Honored at Rally

(PAP, 16 May 87) 27

'Central Europe1Thesis Reviewed, Promotes Ties to USSR

(Adam Krzeminski; POLITYKA, No 1, 3 Jan 87) 28

'Blank Spots' in History of Relations With Soviets

(Stefan Dietrich; FRANKFURTER ALLGEMEINE ZEITUNG,

27 Apr 87) 39

Reporter on PRAVDA Anniversary Function

(Jerzy Kraszewski; TRYBUNA LUDU, 7 May 87) 41

OPZZ Committee on Price Increases, Internal Structure

(TRYBUNA LUDU, 9 Jan 87) 43

July 1985 Amendment to Trade Union Law Reviewed

(Walery Masewicz; NOWE PRAWO, No 11-12, Nov-Dec 86) 45

Briefs

DPRK Party Delegation Visits 52

Militia Commander Named 52

Air Crash Condolences Received 52

Party Appeals Commission Meets 52

Malinowski Receives Austrian Official 53

Czyrek Meets Syrian Leaders 53

Venezuelan Minister Visits Warsaw 53

New Court Judges Congratulated 53

International Book Fair Opened 54

Reservist Training in Silesia 54

- b -
ROMANIA

Briefs

UK Envoy Meets Writers Union Officials 55

Appointment of Deputy Ministers 55

Removal of Deputy Minister

YUGOSLAVIA

Outgoing Sawpy Chief Interviewed on Current Issues

(Nenad Bucin Interview; NEDELJNE INFORMATIVNE NOVINE,

26 Apr 87) ••••

56

Outdated Economic Viewpoints Ridiculed

(Zoran Miljatovic; NOVE OMLADINSKE NOVINE, 26 Apr 87) ... 65

ECONOMIC

CZECHOSLOVAKIA

Foreign Trade Role in Economic Restructuring Discussed

(Bohumil Urban; HOSPODARSKE NOVINY, No 5, 1987) &/

Crystalex Developing Details of Economic Experiment

(Eva Sadilkova, Zdenek Hoffmann; RUDE PRAVO, 24 Feb 87) 75

GERMAN DEMOCRATIC REPUBLIC

Briefs ^g

Vaccines for Madagascar

HUNGARY

Public's Views on Benefits, Poverty, Unemployment Reported

(FIGYELO, 16 Apr 87) .... *

Private Enterprise Problems Described, Terms Defined

(Maria Demcsak; FIGYELO, 16 Apr 87) •

Small Venture Operations Discussed n-,\ 07

(Peter Simsa Interview; NEPSZABADSAG, 10 Apr 87) »'

Conference on Small Ventures Discussed in Article

(Ilona Kocsi; MAGYAR HIRLAP, 13 Apr 87) öy

State Farm, Agri-Coop Workers' Earning Since 1980 Compared

(Gyimesi, Kecskes; MAGYAR MEZOGAZDASAG, 4 Mar 87) ^

Faster Development of Agricultural Production Discussed

(Gabor Magyar; PARTELET, No 2, Feb 87)

- c
Useful Bacteria in Animal Fodder to Fight E-Coli

(Jozsef Pethes; MAGYAR MEZOGASDASAG, 11 Mar 87) 103

Patent To Treat Mycosis of Ruminants Domestically, in West

(Pal Sutka, Zoltan Tresser; MAGYAR MEZOGAZDASAG, 11 Feb 87) 105

ROMANIA

Energy-Saving Measures in Chemical Fertilizer Plants

(Gheorghe Manea; REVISTA ECONOMICA, No 3, 16 Jan 87) 108

SOCIAL

CZECHOSLOVAKIA

Role of Women in Society Discussed

(Antonin Rasek; TVORBA, A Feb 87) 112

HUNGARY

Substantial Increase in Foreign Tourism in 1986

(NEPSZAVA, 2 Jan 87) ... 115

Cooperatives Need Millionaire's Service Parts to Harvest

(Laszlo Zoldi; ELET ES IRODALOM, 16 Jan 87) 117

79986
POLITICAL

CZECHOSLOVAKIA

ADAMEC RECEIVES CZECH RELIGIOUS FIGURES

LD251819 Prague CTK in English 1535 GMT 25 May 87

ttextl Prague May 25 (CTK)—Czechoslovak Communist Party Presidium member

and Czech Premier Ladislav Adamec met here today with representatives of nonCatholic churches and religious communities in the Czech Republic, representatives of the regional association of the Christian Peace Conference, led by

its chairman Milan Salajka»

Miroslav Novak, bishop-patriarch of the Czechoslovak Hussite church expressed

support forthe efforts of the Czechoslovak state for the restructuring of

society and for efforts to maintain world peace.

Ladislav Adamec expressed the conviction that this policy will be met with the

consent and initiative of the believers. He appreciated the role of the

arches and of religious organizations in the peace movement * ^£^

and on an international scale and highly ^

±äe\th

^lZ2\±trSS,r±tfrepre- association of the Christian peace conference and all church dignitarres repre

senting Czechoslovakia in various international organxzation.

/8309

CSO: 2020/99
CZECHOSLOVAKIA . POLITICAL

POPE'S LATIN AMERICAN TRIP ANALYZED

AU140756 Prague TRIBUNA No 17 in Czech 29 Apr 87 pp 8, 9

[Radim Drozd article; "On the Fringe of the 'Pastoral' Trip of John Paul II"]

[Excerpts] Pope John Paul II's 33d trip outside Italy took him to Uruguay,

Chile, and Argentina from 1-13 April. The preparations for his stay in Chile

in particular evoked surprise and speculation about the purpose of this visit

among the world publici Was it to give support to the fascist regime, was it

to contribute to criticism of Pinochet and to assist progressive forces? In

any case, even the bourgeois communications media said that this was the

pope's "most delicate" trip.

In Chile left-wing forces and the people's masses regarded the visit as an

opportunity to escalate their fight against Pinochet.

Both the right-wing opposition and a large part of the Catholic Church in

Chile understand slogans about democracy as a return to the traditional

bouregois political system, established by peaceful means—or as "Pinochetism"

without Pinochet. The pontifex's delicate visit could only contribute to

reaching this goal, even though the Vatican was preparing it as a "balanced"

trip in order that none of the sides could interpret it in its own favor.

"Violence must not become part of Christianity.,.," This is the warning of the

Catholic hierarchy, which—under a right-wing dictatorship, for instance in

Chine—unambiguously disapproves of creating unity in the fight against the

rule of terror, At the same time, in church parlance violence is not merely

armed struggle (which the Vatican had warned against in Chile), but also the

people's resolute mass actions.

In this way the visit to be paid to Chile by the top representative of the

Catholic Church was not intended to become solely a formally and diplomatically

"balanced" pastoral visit—it also had a political viewpoint. Despite the

statements that he is going to Chile to strengthen its population against injustice, the pope did not honor the suffering working people by his visit?

By his visit he honored the Catholic Pinochet, who had come to power with

the significant assistance of clericalists.
Meanwhile for the United States the Chilean dictator is the "solution" in the

fight against "communist danger"-^-although, because of the people's resistance,

his person could become undesirable. Put simply, the strategy would remain

unchanged, and only the tactics would change. And the Vatican leaves the

door open for different variations.

But by shaking hands with Pinochet the pope has considerably dirtied his

hands—which he refused to offer to a progressive priest and minister of the

Nicaraguan Government in 1983. The Vatican has thus again proved that it

cannot play its declared role as a "third force" in the world because it is

systematically supporting reaction.

Are such meetings—regardless of whether they take place in Europe or America—

really as unpolitical as the Vatican declares? Is the Vatican's represents^

tive really only the shepherd who loves the sinner and hates sin, and thus

also the unbearable social and spiritual wrongs done to ou the people by the

exploiters? Because he felt the "delicate" nature of his visit to Chile, he

stressed that "despite all burning problems, he had [as published] come to

Chile exclusively on a religious and pastoral mission," By this, however, he

dminished the significance of the speeches in which he condemned injustice as

such, even if without naming names.

The Pope also proved that in reality the Vatican is pursuing an unambiguous

class policy by telling journalists on board the plane: ",.,A dictatorship

regime rules in Chile, a regime which considers itself temporary.,.. It provides the guarantee that it sincerely wishes to return to democracy." Surely

this statement signifies unequivocal support for Pinochet, although it is

dressed in the cloak of diplomacy! He shows no such restraint with regard

to socialist countries. Because on his way to Chile he said: "It is different

in Poland, The people there are suffering because they see no way out of the

existing situation,"

Thus, the Vatican's behavior is not apolitical at all, Its stand fully corresponds to the North American conservative concept of the "struggle for human

rights." This concept regards so-called authoritarian states (for instance

Chile) as nonconstitutional, but at the same time as deserving U.S. support

because (it is said) they are not based on ideology and can change into

liberal regimes. But the "totalitarian dictatorships" in the socialist

countries, which are supported by ideology, are "unreformable," so that it

is necessary (they say) to use every means to eliminate them,

John Paul II has also showed this standpoint quite clearly in his statement

at the Catholic University in Santiago de Chile: "...You are daily subjected

to difficulties; and conditions in your country have produced a certain loss

of orientation, uncertainty. But cast aside the temptation to lean toward

atheist ideology and materialism." These words actually warn against progressive Ideology and against the notions about the country's future that correspond to it.

But the times when the church could preach without consequences about the

pastoral understanding of "dialogue," in which the word belongs only to one
side, are in contradiction to the present reality, as is the claim that it

is "totally un-Christian" to use anything but prayer in the struggle for

social justice. This is how the Vatican reacts when it condemns "liberation

theology" and its followers—the priests defending the people's right not only

to spiritual consolation, but also to social and economic changes, even weapon

in hand, The Vatican has labelled these priests "victims of Marxist-Leninist

infiltration," saying that they are contributing to disruption instead of an

effective struggle against a shocking violation of human rights; and the pope

brings with him the "message of salvation,"

In this way the leadership of the Catholic Church understandably professes

allegiance to so-called Christian humanism; under this cloak it blesses "all

brothers in Christ," It is thus again contradicting its own assurances about

the moral and "unbiased" mission of the church in the present world. Because,

face to face with victims of systematic terror, any attempt to achieve

"equilibrium" or "impartiality" means support for the dictator.

Verbal, noncommital consolidation does not help the people's masses. By providing this the Vatican merely avows the changes in those countries which it

regards as its hope. This primarily applies to Latin America, which is inhabited by approximately two out of every five Catholics in the world.

Understandably, the question crops up of whether the Vatican represents

the same "hope" for the impoverished population. The pope's recent trip

excludes an answer in the affirmative, since what was strengthened was primarily the system in which the poor are imbued with respect for the property

of others, all in the Lord's name. This is the highly political result.

The only thing left is to ask! With what policy does the Vatican have a lot

in common; and why is it hiding this? We found one answer in the magazine

DER SPIEGEL; in a 1980 issue it says? "Many nations of the Third World are

'underdeveloped' primarily because the Christian Western countries have

destroyed and exploited their culture. The pope should at least selfcritically indicate this during his trips to South America and Africa on some

occasion!" But such self-criticism would be equal to a confession of why the

Vatican organizes meticulously "balanced trips," instead of consistently defending real human rights,

/9274

CSO? 2400/289
POLITICAL

CZECHOSLOVAKIA

HOFFMANN ADDRESSES PARTY FUNCTIONARIES AKTIV

AU220841 Bratislava PRAVDA in Slovak 20 May 87 p 1

[CTK report» "Aktiv of Party Functionaries in Prague; He» Impulses for Further

Activity; Comrade Karel Hoffmann Spoke in Conclusion of the Aktiv Meeting']

rTextl Prague (CTK)---The aktiv of party functionaries in the ministerial

braches of transport, communications, trade, the building industry, medical

care! and the abides of people's control and the sphere of social insurance,

assembled in Prague yesterday [19 May]. Their meeting was chaired by Karel

Hoff^ann, C?CZ Central Committee Presidium member and Central Committee secretary.

In an extensive discussion the participants dealt with the elaboration of

the resolution adopted by the Fifth CPCZ Central Committee Session and wxth

the utilization of incentives provided by the CPSU Central Committee's January session under the specific conditions of their workplaces in the solution

of topical problems and the elimination of shortcomings which they encounter

in their daily work. Their energetic and frank exchange of views provided new

impulses for the further work of party organizations and the leading staff

under the conditions of the current development In individual ministerial

branches, and for the mobilization of forces for implementing the 17th CPCZ

Congress resolution.

Comrade Karel Hoffmann spoke toward the end of the aktiv meeting.

The topical tasks and problems connected with the restructuring of our society's

life were dealt with by Frantisek Ondrich, minister chairman of the CSSR

People's Control Committee; Miloslav Boda, CSSR minister of labor and social,

affairs: Jiri Jira, CSSR minister of communications; and other leading economic

figures and party staff members,

/9274

CSOJ 2400/289
CZECHOSLOVAKIA POLITICAL

INTERNATIONAL SEMINAR ON COMMUNIST MOVEMENT OPENED

AU051122 Bratislava PRAVDA in Slovak 28 Apr 87 p 1

[Text] Casta (CTK)—A theoretical seminar on "The International Communist

Movement and Socialism as a World Reality" opened in Casta yesterday

[27 April], It is attended by representatives of scientific and teaching

institutions attached to the Central Committee of Communist and Workers

Parties in the People's Republic of Bulgaria; Cuba; the Hungarian People's

Republic, the GDR; the Polish People's Republic; the USSR; and the CSSR.

The purpose of the 3-day event, prepared by the CPCZ Central Committee's

Advanced School of Politics in Prague and by the CPCZ Central Committee's

Department of the Advanced School of Politics in Bratislava, is to discuss

from a theoretical and practical point of view the latest congress resolutions of the fraternal countries of the socialist countries on topical issues

and problems of the contemporary international communist movement and the development of socialism. Attention is mainly focused on the role and position of communist and workers parties of the socialist countries in the current revolutionary process.

The participants in the seminar were received by Ludovit Pezlar, member of

the Presidium and secretary of the Central Committee of the Slovak Communist

Party (CPSL), yesterday afternoon. In a friendly talk he briefed them on the

tasks faced by communists and all working people in the Slovak SR in realizing

the strategy of accelerating the socioeconomic development, formulated by the

17th CPCZ Congress, He focused primarily on the topical issues of the party's

ideological work and the possibilities of further developing cooperation among

the socialist countries. The reception was attended by Jozef Sevc, CPSL

Central Committee department head,

/9274

CSO» 2400/289
CZECHOSLOVAKIA POLITICAL

WFTU OFFICIAL ON NEED FOR CHANGES IN ILO

AU251946 Bratislava PRAVDA in Slovak 19 May 87 p 6

[Interview with Emil Hamernik, head of the WFTU Department for Cooperation With

the United Nations, by Dusan Brabec: "Our Aim Is a New Character of the Tripartite System; Interview on ILO and Its Activity"; date and place of interview not given]

[Excerpts] [Brabec] At the root of the unjust solution of social issues by

the ILO lies its so-called tripartite system. Could you tell us something

about the structure of this organization?

[Hamernik] The structure of the organization is founded upon the so-called

tripartite system of representatives of governments, employers, and trade

unions. This system is based on the idea of class reconciliation, that is, on

"cooperation" between governments, private entrepreneurs, and the working

people. The very founding of the ILO was motivated by the efforts of

bourgeois governments to stop and paralyze the revolutionary movement of the

working masses influenced by the Great October Socialist Revolution. They

wanted to create the impression that the interests of these working masses

would be dealt with by an "impartial" tripartite agency. It is characteristic

that reactionary forces in the ILO continue to champion this principle in the

spirit of their reformist approaches. This also includes some reactionary

trade unions linked with the world capital. Some progressive forces in the

ILO, including the WFTU, on the other hand, seek to give the tripartite system

a new character that would reflect the changed situation in the world. That

is why the struggle is being stepped up on the premises of the ILO itself for

a qualitatively new type of relations, for asserting progressive changes within

the ILO in the interest of the working people and the workers class in particular.

Deplorably, the adaptation of ILO's structure and program to the new realities

is being impeded by a lack of will on the part of Western governments because

the situation as it is now suits them,

[Brabec] Even the most recent history confirms that some states are making

illicit use of the ILO in order to attrack the socialist countries. Is there

a way of defending oneself?
[HamernikJ The efforts of reactionary forces to misuse the ILO to attack the

socialist countries and their trade union organizations are known. However,

there exist specific arguments to counter these sallies—not only on ILO

premises but also before the world public. For example, the socialist countries

have ratified all the most important ILO conventions. The United States, on

the other hand, has ratified only 7 of these 161 ILO conventions and all of

these ratified conventions are of secondary importance. Yet representatives

of the U.S. administration like to advise and lecture others on democracy

in relation to these ILO conventions!

[Brabec] Are there at all any prospects for progressive cooperation within the

ILO framework?

[HamernikJ As I have already mentioned, our adversaries had dug their

trenches for combatting us as early as 1919, Since then they have quietly

built an organizational structure that serves their purpose and which will not

be easy to change, However, in the end life itself will compel such a change

nonetheless, This will undoubtedly be a long-term affair. Our duty is to

speed up this process of unavoidable changes as much as possible. That is

why we take every opportunity to explain to our partners the inevitability of

changes within the ILO framework,

Our negotiations are complicated and difficult because we are dealing with

representatives of trade union organizations which in Western as well as in

developing countries exert a major influence on political and public life.

We know in which direction they exert this influence. In spite of this,

the ILO is of tremendous importance to the WFTU and its member organizations.

It is irreplaceable as the venue of many bilateral talks that promote mutual

understanding and have an impact on the further development of official bilateral relations between both trade union and political organizations.

The WFTU leadership and its member federations are convinced that, in view

of its universal nature, an international organization such as the ILO should

play a more pronounced role in the struggle for peace, in the struggle of the

working people and trade unions of the whole world against the efforts of the

ruling classes of capitalist countries to shift the burden of the crisis of

their system to the shoulders of the working people. In the recent past we

have succeeded in the ILO in pushing through some initiatives concerning the

struggle against transnational monopolies:and the like, initiatives which have

undoubtedly contributed to enhancing the WFTU's prestige, and that not only

within the ILO framework,

/9274

CSOf 2400/289
CZECHOSLOVAKIA POLITICAL

WRITERS CONGRESS CLOSES 15 MAY; KOZAK REELECTED

LD151555 Prague Domestic Service in Czech 1630 GMT 15 May 87

[Excerpts] Vlasta Tilmanova reports on the course of the 3d Congress of the

Czechoslovak Writers Association which ended in Dobris today.

rTilmanova] Also speaking in the discussion was the head of the party and

government delegation to the congress, Milos Jakes, member of the Presidium

and secretary of the CPCZ Central Committee, At the beginning he emphasized

that our literature should mainly be concerned with achieving to the full

extent the greatness and needs of its time. He also concerned himself with

the conditions which society is creating at the moment for literary work.

In this connection he said,

[Begin Jakes recording] In all areas of life of socialist society, «

e

<it:ive

thinking is becoming the key to faster and more valuable development. This

is what opens great space for the discovery of the living truth by artistic

means, Also in discussion at the congresses of national assocxations and

here there questions are being pointed out. They concern the key problems

of the development of our society which one way or another influence the

social atmosphere. A black and white view of reality, replacing one halftruth with another consumerism, schematism, whether in the form of negativism of making light of the difficulties and contradictions in life, none of

this, whether it appears in literature or anywhere else, will help us in our

struggle for restructuring.

It is vital to wage a consistent war with bureaucracy, fossilization, conservatism, dogmatism, inertia, everywhere, including in culture. Bureaucracy

kills initiative, poisons the creative atmosphere. As everywhere else, in

this area also, administrative methods of management with instructions and

bans will not help. We need an atmosphere of mutual trust between the party,

state organs and cultural creation, Literature should even give inspiration

to politics and point out the problems which literature itself often sees

earlier than science. It is valid that above all you the writers will decide

what our literature will be like, In this you have a unique responsibility,

[end recording]
The participants of the congress elected new officials of the association.

National Artist Jan Kozak once again became the chairman of the Czechoslovak

Writers Association,

At the close of their session the delegates sent a letter of greeting to the

CPCZ Central Committee. In it they pledged that they wish to use their work

to help develop the socialist conviction of the people of our homeland, to

strengthen their sense of moral values and to help in the true understanding

of the age in which we live,

/9274

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10
CZECHOSLOVAKIA POLITICAL

ECONOMIC RESTRUCTURING PLACED IN WIDER CONTEXT

Prague RUDE PRAVO in Czech 30 Jan 87 p 1

[Editorial: "A Word Not Exclusively to Captains of Industry"]

[Text] "If we review the achievements of 1986, we ask—-as we must—what was

last year's contribution to the intensification program, we must admit that

the progress there was very slow." This quotation from Comrade Lubomir

Strougal's address to the statewide work conference on enforcing the

decisions of the fourth session of the CPCZ Central Committee set the tone

for all subsequent assessments and disclosure of causes of the unsatisfactory

situation and, above all, for the clarification of the ways and means for our

further work.

The documents approved and published in recent weeks have already said much

about the methods which must be expeditiously implemented and which we must

follow in our work. Why, then, had our party's Central Committee, the CSSR

government and the Central Council of Trade Unions convoked a work conference

of general directors and other executives of the production and commercial

sphere?

First, it was due to the immediate and urgent need to begin a new chapter in

our national economy and to introduce in our national economic management,

planning and organization a new program based on a more efficient division of

labor and on delegation of authority and responsibility. At this particular

time the Principles for the Restructuring of the Economic Mechanism of the

CSSR are only principles on whose basis a comprehensive document will be prepared in the course of this year; this fact changes nothing on the urgency of

which we speak and neither does the fact that a test not only of the new

factors but also of whole categories of authority and responsibility is

actually beginning.

After all, neither that nor anything else gives anybody the prerogative of

following old methods of work as before, until the moment when everything is

specified to the last letter. We cannot go on giving preference to the fulfillment of quantitative indicators of the state plan instead of focusing all

our attention on qualitative indicators. This change in fact does not need

to wait for anything more because it has been addressed on more than one

occasion in the past to our whole economic sphere. Nevertheless, when

assessing its results, we must admit that even here the progress has been slow.

11
There are questions concerning the quality of our goods and its failure to

meet the demands of our domestic market and of foreign trade. Quality is

like an iceberg—only that part which appears in the market is rated, but

little attention is paid to the conditions in which it was produced and to

the losses in the process of its production. Strict measures have been adopted

to deal with this problem; however, along with some positive responses to that

step, there are voices expressing satisfaction that this or that enterprise is

able to stay within the limits set for claims or waste. Is this a legitimate

reason for rejoicing and does it entitle anyone not to give another thought

to the possibilities and ways of achieving further improvement and higher

efficiency?

Can we continue to approve with resignation investments which, when put into

operation, fail to produce planned results? Or construction projects which

remain unfinished for a long time? Or the escalating budget costs? Or grossly undisciplined investors, suppliers and planners? Enormous funds invested

in our national economy year after year determine the future of our economy

and its standard. Even in this whole area we can no longer comply with

mediocrity—what was good enough last-year is good enough this year. Naturally,

the comprehensive document on economic mechanism will introduce new views

and demands for all investment policies, but it would be a reprehensible

waste of both time and money not to attempt to make changes right now.

One cannot regard the restructuring of our economic mechanism as a routine

task. Therefore, when discussing the Principles in the session of the

Presidium of the CPCZ Central Committee, Comrade Gustav Husak very correctly

characterized them as the most revolutionary change in the management of

our socioeconomic processes since February 1948.

The restructuring of our economic mechanism puts on our daily agenda the duty

to resolve a great variety of issues not only concerning the economic base

per se, but also the whole superstructure—in essence every sphere of our

public life.

It is no coincidence that the characteristics of our concept of restructuring

are the same as those of the restructuring program of our Soviet comrades.

The solution of key problems of our times, the central of which is a farreaching development of the most sophisticated factors of production, has long

ago reached beyond the borders of individual countries. Thorough internationalization of that effort opens the way to overcoming öf the technological lag in certain branches. However, the achievement of that goal is

primarily up to ourselves.

Therefore, the purpose of the restructuring of our economic mechanism is to

open a space for the creative forces of our society and to utilize our full

inner potential for the fulfillment of the programs approved by the 17th

CPCZ Congress for this 5-year plan and for the period up to the year 2000.

Where should we see that space? In essence, the restructuring of our economic

mechanism means more independence, authority and responsibility for our

enterprises. They must respect our public needs and priorities and made

12
independent decisions about the use of our resources and about the structure

o? our Production-in other words, about creative economic programs based on

socialist ownership. This is a powerful stimulus for creativity whxch must

find as sooHs possible support of the wide ranks of our workxngpeople,

particularly in their attitude to R&D achievements and to the changxng

demands of foreign and domestic customers.

Due to expanded factors of self-government the restructuring of our economic

mechanises undoubtedly characterized, among other things by -^antxally

higher participation of our working people xn management. Therange of the

new authority and responsibility of our enterprxses willj^XLlv imperative.

ment of tasks which makes the involvement of work teams absolutely xmperatxve,

there will be increasing numbers of issues in whose decision work teams will

participate and naturally, for whose results they .ill bear responsibility.

As Comrade Strougal reminded the work conference the resJ «^^^

economic mechanism will not only affect our industry and tr*^ *»* T^^.

a significant impact on many other branches such as

tran^0

!

ta^°n

'^

Ul

ture, services, etc. Those branches must also overcome thexr old routxne

and, in particular, the stereotype which finds it necessary to call for

changes everywhere but in one's own place of work, as well as the stereo

typeTf SSSy approving the necessary changes while in fact evading thexr

planning.

It is absolutely imperative to change the routine way of thinking because old

metnods cannot do justice to new tasks. This will make in the future and xs

making now, considerable new demands especially on our managerial cadres who

are subject to daily scrutiny by our public which judges them more severely

than it judges itself. Our time needs individuals able to give our economy

the needed push and to offer our society the best they have. Such persons

will always have full political support.

The restructuring of our economic mechanism has opened a wide area for our

political, ideological-educational and organizational work. Under the leader

SMP" °f the CPCZ's agencies and organizations and following the communxsts

personal example, a decisive battle must be waged for our people's conscxousness and creativity in every place of work.

/9716

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13
CZECHOSLOVAKIA POLITICAL

BRIEFS

PRAVDA CHIEF EDITOR FUNERAL—The funeral of Bohus Travnicek, member of the CPSL

Central Committee Secretariat, chief editor of PRAVDA and deputy of the Slovak

National Council, who died at 60 after a short serious illness, took place in

Bratislava today. Present at the ceremony in the Slovak Philharmonic Hall

with the deceased's family.were Jozef Lenart, first secretary of the CPSL

Central Committee, and Peter Colotka, premier of the Slovak Government, both

members of the CPCZ Central Committee Presidium; Jan Fojtik and Josef Hainan,

candlate members of the presidium and secretaries of the CPCZ Central Committee; Miloslav Hruskovic and Ignac Janak, candidate members of the CPCZ Central

Committee presidium and secretaries of the CPSU Central Committee; Zdenek

Horeni, member of the CPCZ Central Committee Secretariat and chief editor of

RUDE PRAVO» Viliam Salgovic, member of the CPSU Central Committee Presidium

and chairman of the Slovak National Council; and other representatives,

[Excerpt] [Prague Domestic Service in Czech 1500 GMT 21 May 87 LDj /9274

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14
POLITICAL

HÜNGARY

CHIEF MILITARY CENSOR ON CENSORSHIP

AU170727 Budapest MAGYAR HIRLAP in Hungarian 14 Apr 87 p 3

[Interview with Colonel Albert Gomori, head of the Military Censorship Department ol the Hungarian People's Army command, by Istvan Illes: "Interviewwith

the Hungarian People's Army's Chief Censor-One Must Know What To Keep Secret -

date and place not given]

[Text] In every country in the world military services are protected and care

is taken to avoid leaking information through mass communication facilities

which would violate the interests of national defense. We have prepared an

interview about our own practice with Colonel Albert Gomori, chief censor of

the Hungarian People's Army and head of the Military Censorship Department of

the Hungarian People's Army command.

[Illes] What kind of censorship is employed in our homeland?

[Gomori] Following our liberation, censorship was abolished in Hungary.

Previously the content of all products of mass communication had been censored

according to political, religious and other considerations. Today we practice

institutional censorship only in regard to protecting military secrets,

[Illes] Is this the same in every country?

[Gomori] Yes, everywhere there is an army. If a society has secrets, and

which one does not, then the most valuable secrets are those that are connected

with defense. Apart from this, in some countries there is political censorship. This is generally denied by even the dictatorships, through journalists

work is only interrupted brutally if acute situations threaten their existence.

In our homeland the Constitution guarantees the freedom of press. Everybody

has the right to express his opinion and writings by means of the press so

long as thLe do no? violate the constitutional order of the Hungarian People's

Republic. Last year's press law helps to enforce this right and this law is

in accordance with the INTERNATIONAL Convenant on Civil and Political Rights.

[Illes] Is there any legal basis for the existence of military censors?

[Gomori] Yes, there is. The instructions of the government, the statutes of

the Ministry of Interior that apply to the protection of secrets, and the

15
internal instructions of the minister of national defense regulate our work.

According to these, all the products of mass communication—material in sound,

picture or on film and video or in published form—which contain any military

information connected with the defense of our homeland and our allies, or the

West, must be shown to the military censors before publication, except when

the author uses information that has already been published in the press.

[Illes] Yet the people's army is at present an "open" army. This is shown

by the fact that we can talk about censorship today, while this would have

been impossible even half a year ago.

[Gomori] The military leadership is aware of the importance of the press and

considers its staff as its partners. We consider it important for the civilian population to know more about the life and combat readiness of the armed

forces. We have a lot of problems that we can only solve together with the

civilians. These problems include an education in patriotic and internationalist national defense and the physical preparations for military service.

We might also mention dangerous social phenomena such as the joint struggle

against alcoholism. It is necessary for us occasionally to give a public

account of the money spent on us, The role of the military censor is increasing as a result of the increasing exchange of information, but this does not

reduce the responsibility of the chief editor, the journalists, to protect

secrets,

[Illes] Great secretiveness usually engenders mistrust, yet one cannot sit

down at the negotiating table without having confidence. In the shadow of a

universal conflagration, this is more necessary than ever.

[Gomori] This is indeed so, Confidence, "satisfactory security," can only be

obtained if we do not mislead our negotiating partners, if we provide exact

data on our military facilities and if we make on-site verification possible,

[Illes] Does this mean that the protection of secrets is an invention for

journalists?

[Gomori] The range of military secrets is constantly changing. For instance,

in the not too distant past we were tremendously protective about our facilities. Today we have nothing that has not been discussed in the press. The

global trade in weapons has also made it unnecessary to be secretive,

[Illes] What then is secret?

[Gomori] The following things» The formation of the army, its territorial

location, its supply, resupply, the details of its budget, devices under research, the operational principle of equipment systems, plans related to combat, and a lot of similar information. For the reconnaissance force, war be*-

gins in peacetime. In the event of an armed conflict, the enemy would need

every piece of information, and that is why masses of equipment is being used

to process, among other things, the cheapest source of information, the press.

Day by day they are piecing together data on a particular country's armed

forces like a mosaic. At the time we set up one of our training centers, for

16
instance, we observed that in 1 year it was possible to precisely determine its

location and task from the press, because the army is an inseparable part of its

civilian environment.

[Illes] As far as I know, we do not only protect military secrets.

[Gomori] The territory of the country is not merely a tourist attraction.

This is why one required permission to take aerial photographs and to photograph certain objects.

[Illes] Why?

[Gomori] Photographs of civilian factories, plants, power stations, railway

stations, and traffic junctions are perfectly suitable for the preparation of

diversionary groups,

[Illes] These could, however, be photographed perfectly from satellites.

[Gomori] Pictures taken from satellites serve peaceful means, basically.

The sputniks, the Landsats of the United States of America, and the French

Spots prepare agricultural, meteorological, geological, and other pxctures,

which are, of course, also analyzed by the military. These pictures mainly

show the changes of the earth and regions. In the case of military satellites, however, the statement is true, but such pictures are specxally guided

shots and very expensive. Therefore the method is used only in exceptional

circumstances. Even then there is no guarantee that the pictures will be

usable. One has to confirm the space intelligence information from other

sources, such as from land-based agents. We are aware that the protection

of some information is in vain, because it is obtained sooner or later, but

it is not a matter of indifference when and at what cost. The censor s

duty is to ensure that we, ourselves, do not provide information for a few

pennies in the press.

[Illes] Does it cost us much to maintain this protection of secrets?

[Gomori] You cannot measure this in forints. If, however, you are thinking

of how many of us are here, I can tell you that there are only,a few professional military censors who are in contact with the central mass media.

In the field, there are authorized censor officers in higher units who carry

out this duty as a kind of "moonlighting" in addition to their other milxtary

duties.

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17
HUNGARY POLITICAL

OFFICIALS VISIT RIVER BARRAGE CONSTRUCTION

AU212006 Budapest NEPSZABADSAG in Hungarian 18 Apr 87 p 4

[Text] Deputy Premier Lajos Czinege; Construction and Urban Development

Minister Laszlo Somogyi; State Secretary Kaiman Abraham, chairman of the

Environmental and Nature Protection Office of the National Assembly; and

State Skcretary Antal Kovacs, chairman of the National Water Affairs Office;

together with their leading staff inspected the Bos-Nagymaros River Barrage

System construction on both the Hungarian and the CSSR sides of the project

on 17 April,

In the course of the working visit, the officials were given information

about the situation of the construction project and reviewed the upcoming

tasks. On the CSSR side the Hungarian officials were received in the Bos

area by Slovak First Deputy Premier Julius Hanus, Forestry and Water Management Minister Vladimir Margetin, and their staff. Also present at the meeting was Bela Kovacs, Hungary's ambassador in Prague, At the meeting they reviewed the experiences gained on site,

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18
HUNGARY POLITICAL

RANKI'S BOOK REVISES VIEW OF HORTHY REGIME

Budapest MAGYAR HIRLAP in Hungarian 7 Jan 87 p 5

[Article by Janos Poto: "State and Society"]

[Text] It is a long-standing practice in academic institutions for a

researcher to submit the results of his work to an in-house critique—

before publication. That is, the new interpretations are critiqued within

a narrow, professional circle which—in our over-specialized age~at any

rate, provides a broader outlook on the subject in question.

A new book series titled Lectures at the Institute for History allows a

wider audience to peer into this sort of academic workshop, into the

historiographic workshop. From now on, the institute will regularly

organize six lectures a year concerning fundamental national issues and

questions of world history, new historical methods, etc.; the lectures as

well as the substance of discussions following them will be published in

the new series. The first volume in the series, titled State and Society

in Central East Europe Between the Two World Wars written by Gyorgy Ranki

was just published recently.

Gyorgy Ranki, in examining the relationship between the state and society,

is dealing with a timely topic. This issue is particularly timely,

as he writes in the introduction, "today since the state, in the majority

of the countries, overwhelmingly weighs on society.". And it is topical

in Hungary, especially today, when the increasingly discussed

process of democratization—formulated, on the one hand, either as the

result of or, on the other hand, as a demand— is precisely the result of this

relationship: when, to what extent, and on what topic will the state permit

society to intervene in the direction of the country and of itself

society?

As a starting point Gyorgy Ranki examines the theories of state central

Eastern Europe inherited during the period between the two world wars.

Classical liberalism—although it had lost increasingly more of its

role remained, in actuality, the dominant viewpoint in government till the

first world war—wanted to reduce the role of the state to a minimum in the

life of society. At the same, time the marxist theory of the revolutions

after the World War saw in the state only the ever present oppressive

19
organization of the ruling classes. Despite their fundamental differences

the two viewpoints are identical in that, as Ranki says, "both view the

economic role of the state as minor, both are inclined to counterpose the

political state with society, and presume, so to speak, to discover

classical development in the hegemony of society."

The war and revolutions established the absolute hegemony of the state over

society. According to the tenets of liberalism it could be expected

that with the conclusion of the war and revolutions the role of the

state would necessarily decline just as it had grown as a consequence of

these. However, in the beginning of the 1920's, the countries of

the region were in radically changed circumstances, and this fundamentally

determined the relation of state and society. Society itself had, in part,

been transformed. Social problems within society multiplied with the growth

of capitalism and the bourgeoisie and it increasingly seemed that they could

be solved only by intervention, by some kind of administrative

regulation. In addition, the state had also been transformed as a

consequence of the creation of a whole series of new nation states in the

region. And although it is true that the liberal principle of selfdetermination was dominant in their creation, it did not however play a

role in their further development. The late development and the different

traditions stemming from this predestined the region to the increased

intervention of the state in the economy and the life of society—compared to

the classical model. As Gyorgy Ranki writes, in these countries "for a

variety of reasons, the nation does not create the state but rather, to a

certain extent, it is the state that builds the modern nation.

The author then demonstrates the concrete manifestation of these trends

through the histories of three countries in the 1920's: the Austrian

Republic, Hungary, and Yugoslavia. In Austria, the framework of

political democracy was already in existence; however, state limitations on

it were also vigorously present. The political struggle of the social

democrats and the Christian democrats, in fact, strengthened the state

bureaucracy, one of the foremost insurers of the hegemony of the state.

Furthermore, in vain did the pressure of social democracy supported by

society reduce the political weight of the state while simultaneously

demanding its economic and welfare intervention into the life of society.

In Hungary, the Horthy government replaced two defeated

revolutions. From the outset, this determined the primacy of the state power

vis-a-vis society, since the aim was to reinstate the old social order. In

accordance with this, writes Gyorgy Ranki, "the overwhelming majority of

ideas...were drawn from the old authoritarian thinking, limiting liberalism".

Yugoslavia was created from multinational and -religious territories

having different traditions, and the the state was the only truly common

denominator in the new country. "Yugoslavia had to be created and ... this

could only be the task of the state which was, in part, established from above

and from the outside."

The formation i.e., the accommodation of the economies of the new countries

or those forced to adapt to new conditions in new territories also

20
increasingly slipped into the hands of the state. As a result of the 1929-1933

international economic crisis the role of the state in the economy was

strengthened or actually became determinant with the goal of «channeling the

anarchy of the bankrupt market competition toward some kind of regulated

economy." An identical path also beckoned as a solution to the societal _

problems accompanying the economic crisis. In the history of the 1930 s

two alternatives were devised to escape from the crisis: one was the Keynesian

and Rooseveltian new direction, the welfare state, which although made

government intervention a part of the official platform it did not

simultaneously also imply the total subjugation of society. The other

possibility-says Gyorgy Ranki completing his train of thought-is the

modern totalitarian state "in which the autonomous sphere of activity of

society is curtailed to a great extent or almost totally eliminated.

The tragedy of the region was that in the 1930's all three countries headed

towards the second alternative."

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21
POLAND POLITICAL

ETHIOPIAN FOREIGN MINISTER RECEIVED

LD070908 Warsaw PAP in English 0627 GMT 7 May 87

[Report on speech by Polish Foreign Minister Marian Orzechowski at 6 May

meeting in Warsaw with Ethiopian Foreign Minister Berhanu Bayeh]

[Text] Warsaw, 6 May—While greeting Minister Berhanu Bayeh, the head of

Polish diplomacy said that Poland and Ethiopia are linked by traditional

ties of friendship. At the foot of our relations there has been ideology of

Marxism-Leninism, Cooperation between our parties*-guiding forces in the

country and leading ones in society—develops favourably.

The peoples of Poland and Ethiopia are linked by the love of freedom and independence, determination to defend achievements of the working class. The

Polish nation fully supports progressive transformations in Ethiopia and the

cause of its unity and territorial integrity. We support Ethiopian revolution.

We highly assess progressive foreign policy of the socialist Ethiopia, its

role in the non-maligned movement and in the Organization of African Unity.

We are glad to see Ethiopia's growing prestige on the African continent and

worldwide,

In the recent years, forces of Imperialism did not spare us interference and

pressure intended for destabilization of our states. We live up to these

trials and experiences.

Both our countries make a major contribution to world-wide struggle for peace

and security, for elimination of colonialism and apartheid, disarmament and

building of just international relations. Just like you, we firmly condemn

aggressive, racial policy of the RSA towards black population and towards the

neighbouring countries, Orzechowski said.

While expressing satisfaction with the talks, Orzechowski pointed out that

they were sincere and fruitful, We noted with satisfaction the identity and

closeness of views on all bilateral and international issues discussed. We

expressed willingness to develop cooperation in all domains, he said.

22
We expressed deep concern over extremely complicated situation in the world,

threatening with perils, and over the adventurous policy of imperialist forces

and their winding up the spiral of armaments, particularly nuclear ones. We

were at one while stressing that it is a superior goal of contemporary times

to protect mankind from nuclear annihilation, to put an end to costly armaments and to proceed to disarmament, to prevent militarization of outer space,

to eliminate trouble spots and local conflicts, to consolidate principles of

peaceful coexistence of countries with different socio-political systems.

Poland and Ethiopia fully support constructive disarmament proposals of the

USSR and other countries of the socialist community.

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POLAND POLITICAL

DEFENSE MINISTER ADDRESSES MILITARY COUNCIL

AU070820 Warsaw ZOLNIERZ WOLNOSCI in Polish 4 May 87 pp 1, 5

[Major Longin Szczerba report: "A Program for the Future"]

[Text] The Council for Higher Military Education held another plenary session

at the F. Dzerzhinskiy Military Political Academy under the chairmanship of

Army General Florian Siwicki, PZPR Politburo member and minister of national

defense.

In the most general terms» the session discussed the main lines of modifications to the curricula in the officers' higher schools and the determining

factors and conditions of training highly qualified cadres to meet the needs

of the armed forces.

As for military education, this is now an issue with Special status and significance, one that has been tackled for quite some time now by a team of

experienced military specialists, as Army General Wojciech Baranski, director

of the Combat Training Main Directorate, stressed when discussing "The Main

Lines of Modifications."

The analyses and general conclusions which were presented to the council and

which are contained in the draft "Model System of Training Modern Commanders,"

take comprehensive account of the achievements of modern military pedagogy,

the results of long scientific research, and the lessons of teaching practice

to date. The draft in question was previously analyzed by the council and

primarily by the military specialists concerned.

Modifications to the program have been made necessary primarily by the need

to cope with the educational challenges of the 21st century, by scientific

and technological progress, and by the introduction of increasingly complicated

combat resources. These and many other reasons, as well as the realization

of the increasingly complicated teaching activities, are especially important

factors. It is also important to train young officers in commanding companies

and in organizing and conducting educational and upbringing work.

What are the main lines of the reform of educational programs? What lines of

education have been stressed by the analyses presented to the council?

24
What is primarily required of candidates to be modern soldiers is certain

predispositions and qualifications, especially a suitable intellectual and

cultural standard, a moral attitude, psychological prowess, and physxcal

fitness. Only harmony among these qualities can guarantee effective and

independent social and professional activities.

That is why the thesis about enriching general education and increasing the

importance of general subjects occupies a special place in the proposals

and solutions submitted to the council. The minister of national defense has

often drawn attention to this issue, the last occasion having been the

educational briefing of the leading military cadres in 1986.

Another task of the officers' schools is to combine professional training

more closely with general education. Attention has been drawn to the fact

that specialist military training calls for unceasing efforts to keep abreast

of the development of military science and technology.

Another equally important issue is the integration of various aspects of

training. This integration can and should be effected wherever pedagogxcal

considerations favor it.

However, even the most perfect programs will be useless if they lack the

necessary conditions for realization, that is, the internal and external

determining factors of schooling. The skills of teaching and commanding cadres,

the standards of the school infrastructure and organizations of the training

process are a component part of the teaching and educating process that

determines the training standards of graduates.

The session paid much attention to these issues, to the individual nature of

training and self-instruction, to educational practices, and to the discipline

of studies, pointing out the reasons for and the determining factors of these

phenomena.

The concepts presented, specific solutions, and proposals presented were

appraised in detail and discussed in a critical manner, which was understandable The authors of the proposals had to answer many questions on initial

examinations, graduation works, the organization of practical work in military

units, and so on.

The minister of national defense drew attention to the ever growing requirements concerning the training of young officers for service in military units

and to the determining factors in training commanders, educators, and highly

skilled military specialists.

The reform of higher education was also discussed by vice minister of national

defense, who described the issue against the background of the tasks facing

education in general and of the tasks specified by the 24th plenum and the

10th PZPR Congress.

Summing up the discussion, F. Siwicki drew attention to the status and significance of the proposed solutions and appraised the many proposals submitted

25
to the session. He stressed, among other things, that the comprehensive

education of a young officer who is trained to independently solve complicated training and upbringing tasks is an especially important commitment,

one demanded by scientific and technological progress, the needs of the

modern socialist army, and the constant necessity to strengthen the country's

defense.

F. Siwicki also drew attention to the role of the warrant officers' corps,

whose importance consistently increases, and appraised selected issues of

cadre policy, improvements in the qualifications of academic instructors,

and the recruitment of candidates for military vocational education.

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26
POLAND POLITICAL

WW II COMMUNIST RESISTANCE HONORED AT RALLY

LD162111 Warsaw PAP in English 1738 GMT 16 May 87

[Text] Warsaw, 16 May—Forty-five years are passing since the day when the

first GL (People's Guard) unit, named after Polish historical hero Stefan

Czarniecki and commanded by Franciszek Zubrzycki alias "Maly Franek" (Little

Frank) marched off into the forests of the Piotrkow region in central Poland.

This way materialized the decision of the Polish Worker's Party (PPR) to start

armed struggle against the Nazi invader, the decision which was difficult and

taken with almost no trained troops available, no financial sources and sufficient arms at hand. The first battle took place on 10 June, 1942, near the

village of Polichno in the Piotrkow region, where a monument has been erected

in tribute to the GL and AL (People's Army) military effort.

On the anniversary of the march-off at Maly Franek's partisan troops, local

people together with provincial authorities, war veterans, former commanders

of the GL and AL, PPR activists, and delegations from work establishments, held

a patriotic rally at Polichno today.

"Today we are paying homage and commemorating those sons of our nation who

marked with blood and courage the road to the free, socialist fatherland,"

said PUWP CC Secretary Henryk Bednarski. "Among the many decisions by chief

conspiracy centres in the occupied country, the 1942 decision by the PPR to

take up partisan struggle was one of the most significant ones," he said.

"Those who fought here and perished on the Piotrkow soil have left their testament—their message to the new, upcoming generations, It obligates us to defend, enrich, and develop all they had fought for and in whose name they died.

The free, socialist Poland, living in the name of peace, is the most important

essence of their testament," Bednarski said.

"Over 40 years of peace in Europe is the greatest value brought about by the

sacrifice of their lives. Mindful of the price paid by our nation and mankind, we should guard this value as firmly as wei can," the PUWP CC Secretary

stressed,

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POLAND POLITICAL

•CENTRAL EUROPE* THESIS REVIEWED, PROMOTES TIES TO USSR

Warsaw POLITYKA in Polish No 1, 3 Jan 87 pp 12, 13

[Article by Adam Krzeminski: Spiderweb In the Middle of Europe"]

[Text] Are we or are we not? — We, the inhabitants of Central Europe, we

Central Europeans. Our continent is tangibly divided politically,

economically and militarily into two parts. In the East, there are "we"

Poles, Czechs, Hungarians, Russians and Germans from the GDR [German

Democratic Republic], etc. and "they", the French, English, Americans, Germans

from the FRG [Federal Republic of Germany] , etc. live in the West. Between

"us" and "them" there is no middle ground nor is that position taken by

Austria who remind us more of "them" than of ourselves.

However, Central Europe is not dead and buried because it continues to live in

polemics and dreams, in debates and legends. Lately, the subject of

"Mitteleuropa" has again become loudly discussed as a pitfall and opportunity

for those that live in the center of our continent and on both sides of its

dividing line.

It has been said that the "European era" in world affairs went out with the

end of World War II. Geoffrey Barraclough wrote this in his "Introduction to

Modern History" and was joined by our own writers that had for years been

warning us against the supposedly excessive "Eurocentrism" of Poles. Indeed,

it is more and more often said around the world that the "era of the Pacific"

is coming. This ocean directly borders the Soviet Union, United States, Japan

and China and it is said that because one finds there the greatest degree of

economic growth and technological progress, that is where the future of the

world now lies. That is where Eurasia meets America. But what about us?

Ever since the two world powers defeated Hitler's "middle state" with (and

only with) the help of the Europeans themselves and the Nazi "Fortress Europa"

fell, there have been 40 years of uneasy peace under the shadow of nuclear

weapons and armed intervention and the traditional European powers such as

England and France have lost much of their influence around the world. The

Americans and Russian face each other not only across the Bering Strait but

28
also here across the Elbe. Across our continent, they have set up a barrier

against each other. And now what? Is that our good fortune or a catastrophe?

Are we Europeans divided by an "iron curtain" or do we nonetheless »till live

in a "common European home" with the "Europeanization of Europe within

hand's reach?

The image is neither as simple or as symmetrical as it might seem. Just what

is Europe, this peninsula with craggy coastlines and who belongs to Europe?

Le Europeans only the people that have inherited the ancient traditions of

Greece and Rome, Judeo-Christian morality, the Renaissance, the Enlightenment

and the Industrial Revolution with the beginnings of the worker's movement?

is that too narrow a definition when European history also includes the Moors

in Spain the Turks in the Balkans and the 300 years of the Mongol Khans xn

Russia? On our continent which lies open to the East and tapers off into the

West there is a mixture of the most diverse civilizations and cultures. It

is only on the political map that Europe is clearly divided into states and

Politico-military blocks. In all reality, Europe reminds one of light broken

a spectrum as it passes through a prism. The colors change from violet to

red!"ne gradually' passing into the other Can w.j d.ny the European roots of

cities like Boston in North America or Tobolsk in Siberia?

Europe's geopolitical position is not symmetrical. Of the two world powers

that have placed a nuclear umbrella over Europe, one of them, the Soviet

SnJon is part of Europe while the other, the United States is, despite

reluctance o°ard Europe, Russian has had a great literary influence on

ST« ,no„ Europe „11 Suvoro «Jt only dafeared our C-*«»£ Bar

Atlantic Ocean and Europe but where is its centei

have a center?

Fascination and Strangeness

Ihere „as already oee„ «ch d.b«. « tb. »M^of C.«.^-^ed

^^ir.ti't^in^Ä9e"hrXi.^?-1»«« •—». "

ihe Trasedy o£

29
substance because it never gave much thought to the countries between Germany

and Russia.

Kundera goes on to state that it is these countries that are the very model of

Europe in its diversity: "Central Europe wanted to be the quintessence of

Europe in its cultural diversity, a small arch-Europe and a Europe in a

reduced scale, consisting of many nations and organized according to the

principle of the greatest diversity in the smallest area". However, in

Kundera's opinion, that Central European love of diversity has always been

something alien to Russia. Indeed, Kundera points out the fascination for

Russian felt especially by Czech intellectuals but also tries to show the

differences.

"I do not know whether that world is worse than ours. Russia has a different

and greater measure of misfortune, other notions of space (so great that they

encompass entire nations), another concept of time (slowness and patience) and

another type of laughter, life and death". Therefore, Kundera interprets all

of the postwar upheavals in our country as the defense of our "westernness".

Then, turning to the "slavophile" traditions of Czech thought at the turn of

the century, Kundera sympathetically recalls the Hapsburg monarchy: "The

Austrian Empire had a great opportunity to form Central Europe into a strong,

united state but the Austrians themselves were too torn between pangermanic

nationalism and their Central European mission. They did not succeed in

forming a federation of equal nations and their failure was a misfortune for

all of Europe". I do not think that many Czechs, Slovaks or Poles would have

signed their name to such words in 1918.

Therefore, for Kundera, Central Europe has been confined to the dimensions of

"an undefined strip of small nations between Germany and Russia" whose

existence has more than once been called into question: "The Frenchman,

Russian or Englishman will not question the possibility that his nation will

survive. Their national anthems all speak of the greatness and eternal being

of their nations while the Polish national anthem begins with the words

•Poland has still not perished'". In the opinion of this Czech emigrant, the

Central European nations are not only conquerors but above all constitute a

specific culture which includes Bela Bartok, Kafka, Haszek, Musil, Broch and

from Poland, Gombrowicz, Schulz and Witkacy. This "separate cultural

structure" was not confined to just one state but was the common fate of all

of these nations and consisted of the Czech Hussites, the Hungarian

Renaissance, the Polish Reformation the Renaissance setting of the Laskis,

Frycz Modrzewski and Kochanowski. Furthermore, all of us had the Baroque

which was much the same from Salzburg to Vilno. And finally there are the Jews

who in Kundera's opinion were "the joining link, the essence of the Central

European spirit and the creators of spiritual unity". Kundera concludes that

without the Jews, thee would be no "integrating element" in Central Europe.

30
Program of Mutual Acceptance

Milan Kundera's essay has found its echo among neoconservatives on both sides

o^i^STic because it confirms their black-and-white view of the East and

West and, aside from self-pity for those "between the Germans and Russians ,

proposes nothing new aside from missing the Hapsburgs.

Moan„H1p a more creative voice can be found in a Hungarian who resides in

Budapes and p^blishe" his works chiefly in the West. A fragment from Gyorgy

Konrad's Ceam of Central Europe" read in May 1984 has now become most often

quoted in Vienna and West Berlin whenever Central Europe is dxscussed.

For Konrad, Central Europe is not the nations "betweex,Russia _.nd^^^

to save the whole continent.

therefore the most Central European nation among us .

.-„ oo„ i-hfli- rentral Europe does not have any clear borders Konrad continues to say that Central^»roPcentral Europe is the

and no one really knows where it begin.and ends J

ent

Berli

P

n t0 Rome

western edge of the East or the "i" ^*?*^"^^ provincial and and Warsaw to Athens, Central European cities are hopelessly p ^ ^

burdened with local problems and * ^ 'VF"£f„e wouid be worthy

region, as Central Europe and as a l *^" ***1^*^ To say to other Z , ui„ -«r,f0r-o«äi- We would have something or interest tu o*y u of the world's interest, we WOUJ.U t f the international

countries. It is impossible for us to become P«t^f ttie

r we like

conversation as long as we do not accept«ur ^own neighbors er> It

it or not, we can only count f or so.eth^J^g as we | We have

i^com^ did. We must

< 1 '

* 31
therefore learn the languages of our neighbors if we are to give a future to

the idea of a Central European culture".

As opposed to Kundera, Konrad does not talk about any tragedy of Central

Europe and that is perhaps because he is not an emigrant who wanders between

two worlds trying to reconcile himself to both: "the present state of the

eastern part of Central Europe does not seem to me to be something tragic and

I do not at all see us as innocent victims. We continue to be citizens of

where we live...".

For Hungarians, the basis of hope for Central Europe is mutual contacts, a

knowledge of each other's culture and evolution.

Rock and Aggregate

It is no coincidence that the two cities of Vienna and West Berlin have taken

up the debate on Central Europe and organized symposia under the patronage of

the city governments. What do the Austrians and the divided German nations

have in common with the the gravediggers of ancient Europe? Is the present

debate on "Mitteleuropa" just the latest Edition of the old longing for

hegemony or present-day hopes for unity or is it rather a return to a sense of

community among the many in the style of the old medieval German Reich, a

loose confederation of many states, rather weak militarily but great in

spirit and civilization?

Observers distrust both concepts and with good reason for as early as 1915,

the liberal nationalist Friedrich Naumann published a book titled

"Mitteleuropa" in which he proposed for Europe a federal economic union under

German leadership since up to then, Europe has always been governed from West

to East as by Napoleon or from East to West as by Russia which was the chief

director of the Congress of Vienna in 1915. At that time, Central Europe "was

just 'aggregate*", wrote Naumann in the second year of World War I "but before

our very eyes, has now become a monolith". Indeed! In 1932 in his book

"Middle Europe", Giselher Wirsing presented the problem in much the same way

in his description of the economies of Germany and the states that came into

being after 1918. However, one can see how that turned out in practice in the

example of "fortress Europa" as Goering referred to the lands occupied by the

Wehrmacht. This fortress had two capitals, Berlin which was to become the

future world capital decorated with monumental buildings, and Auschwitz in

which millions of Central European people met their fate. That is why it is

hard today for today's Germans to refer to the concept of "Mitteleuropa".

And that is exactly how Rolf Schneider, a short-story writer living in the GDR

and often published in the West just like Konrad, reacted to the idea. He

refused to take part in a Vienna symposium on "Central Europe as a shared

fatherland" which was held in June of this year and his refusal was published

in the West Berlin anarcho-ecological weekly DIE TAGESZEITUNG: "My first

argument is that Central Europe as a fatherland is, as an historical fact,

just as insubstantial as raspberry pudding. The concept naturally includes

32
the term of 'center' which insinuates the 'golden mean'. One is also tempted

Jo think of little words like mediation and intervention. Words like

'mediocrity' snicker and want to be forgotten quickly .

Schneider of the GDR has no faith in any intellectual constructions that make

only the briefest mention of the states that partitioned Poland in the 18th

only tne ">"-« aQ-the "central states" conducted World War I on Polish

Reagan's especially radical hawk and advisor .

He later polemicl.es with Konrad who in one of his articles wrote, that the

foreign troops from all European nations.

Rolf Schneider writes: "Por us Germansthe rebelli ^\^£Z£»*

cJH«Si2fS i^s?VhUe

lafac0

t

n

t°hfat8theyvic^rV of the anti-Nasi coalition

wrr h^manitarian8

act of worldwide -^!«-"•_ *^"w^hS

ironic vein: "What do.the-Hungarians; have_to'^• ^^ *

greement which

crusaders? Hungary freed herself from him ^^Je foundation of our

"was brought about by our nations too and constitutes the to

existence" and a framework-which every "

f S

^t

1

^1st recent

after Imre Nagy and Pal Maleter we *££Z0£^e^B£cl*eB can gain

history is a select example of how this T"rone up with some sort of new

very stretched dimensions. *»*/° mi^ from the

e^e^conf^^ ^~ «**> ""

turn our backs on them .

For W1 Slider, the "»^^^^'^^S«-

countries.

A Tempting Risk

Ihe debate over "Mitteleuropa'- »as ve q .e^ta^ up by £ J..**

Sl Ceutral S^^SJ^'^S^- «^id. «—'» -oa,

33
Gyorgy Konrad's essay on Yalta and several essays of leading social democratic

politicians such as peter Glotz or West Berlin's mayor, Dietrich Stobbe. The

social democrats' concept is that "Central Europe should stand against the

opposition between East and West and act as conciliatory intermediary".

This notion aroused a sharp response from the Christian Democrats. For

several weeks, there has been a lively discussion on the subject of our

"center" on the pages of the Christian weekly, RHEINISCHER MERKUR/CHRIST UND

WELT (at one time, Adenauer's chief press organ). The Christian Democrats

have sharply criticized a book released a few months ago by a young West

Berlin Slavic expert, Karl Schloegel, titled "The Center Is Leaning Toward the

East" and which warned against deprecation of Yalta and urged readers to

rediscover the cultural landscape of Hungary, Poland, Czechoslovakia and

Northern Italy. Schloegel removes the Germans somewhat from the West and

calls the Germans "Central Europeans par excellence".

Alexander Schwan, the West Berlin political scientist, then criticized in the

Christian Democratic RHEINISCHER MERKUR the restoration of concepts which

suggest the creation of a "new concensus between East and West".

"Such ideas are an illusion and are dangerous because one of our great

political parties has fallen increasingly under their sway. Would any of the

Poles, Hungarians, or Czechoslovakians wish to follow such a strategy under

German guidance?

"Poles, Czechoslovakians and Hungarians want freedom but not at all under farflung German stipulations of neutrality. They would only feel safe with a

close connection to Western Europe and to the West in general". Continuing,

he writes: "This tempting invocation of Central Europe cannot arouse any

interest in the people of the Central and Eastern European states and the GDR

who want greater freedom...It can not only interest the communist governments,

as long as this gilding serves to tempt Germans to irritate Western Europe and

jeopardize Western European and Atlantic cooperation".

Thousands of Small Changes

For now, let us dispense with the "Polish thread" of the entire debate on

Central Europe because it requires its own separate discussion. For now, let

us look at how this idea is defended by Peter Bender, the West Berlin writer,

who has for many years followed the eastern policy of the social democrats and

is also a man who well knows Poland, the GDR and world politics. In an long

and extensive Norddeutscher Rundfunk broadcast of last summer, Peter Bender

said: "A middle Europe more exposed to the East-West confrontation and

restrictions than the rest of the continent extends from the Far North to the

Deep South. There is great interest in detente but little strength in support

of it. These are mostly weak and small countries and most of them are

restrained by their alliances. The strongest of them, the German Federal

Republic must, as a German state, proceed with special caution".

34
Bender continues to say that all must avoid independent actions. The Bonn

eastern policy will function only as long as Moscow takes the place of honor

in it. In much the same way, Poland or Hungary's contacts with the West will

develop all the better that they extend themselves to the Benelux countries,

Rome or Paris, however, the need to maintain contacts beyond the great border

is strongest among the Central Europeans because they have so many common

interests that it would be very uneconomical to leave them alone.

"If we make ourselves aware of this community of interests, then much would be

achieved by making Central Europe the leading motive for our actions. This

does not at all mean that any country would have to leave NATO or the European

Economic Community as long as Bonn is aware that it has allies outside of

NATO With regard to the unity of the continent, Central Europeans are closer

to Bonn than the Western Europeans and in many of the issues between the East

and West, Bonn has more in common with Budapest or Stockholm than with Paris

or London.

"However, the greatest opportunities can be found in small policies. Anyone

who compares today's Central Europe with that of 20 years ago will see peat

changes. There has emerged a network of economic, technical, political,

cultural and especially interpersonal bonds whose preservation is essential to

participants on both sides. The communist governments have recognized and

conformed their actions to this for a long time, partially from the demands of

their own internal policies and partially out of their own convictions.

Beyond the East-West border, nowehere in Europe can one find such strong and

diverse contacts in spite of the frequent obstructions. How *» h£tl

have led can be seen in the case of Hungary that 20 years ago wished to make

its relations with Austria a model of 'peaceful coexistence'. Since then

tnese relations have gone even further and achieved a state of normal

relations between two nations under types of regimes. Austria and Hungary

have the same relations as other states in Western Europe.

"If Central Europe can become a model, it will be according to that Pattern

set by Vienna and Budapest. Not much needs to be said but something must be

done It is not a matter of putting on a display but of keeping in mind just

what is possible to achieve as well as reaching a little for the impossible.

We mustTct slowly but achieve something concrete. We must trust o

experience that real change is sometimes brought about nearly imperceptibly

through thousands of small changes.

"Moscow and Washington must now consider the fact *%?** ^£e*j£c%>B

borders between the alliances are dependent on one another. That is a success

thafis little known and considered and one which demonstrates that Central

Europe already exists and even more so, should exist as the element linking

tL two halveVof a divided continent. Europe has been^ divided from both ends

but if it is to again grow, it will be from the center .

To clarify what he had said in his interview with ZYCIE WARSZAWY in Jablonno

Peter Bender said: "I think it would be a mistake to assume that the

35
unification of Germany is necessary to bring the other European countries

closer. I would say that the opposite is true — if the 'europeanization' of

Europe is to continue and the costly military presence of the United States

and the Soviet Union is to be reduced or eliminated, then it is necessary for

Germany to remain divided. Most or all of the other Europeans would only

agree to a reduction in the role of the great powers if they knew that Germany

were to remain divided and that German military potential would never become a

threat to anyone. Therefore, for me, the 'europeanization of Europe' requires

the continued division of Germany".

Different Dimensions

There are not many such outspoken writers in the West Germany press and some

of the Christian Democrats presently in that country's government not only

call out for unification but also claim that Germany's 1937 borders are still

valid. Even if such claims are made for purely political reasons, the subject

still forms a background for discussion of the future Europe. In addition,

some American politicians worry that Germany is "drifting" toward the East,

that West Germany's ties to the United States are weakening and neutralist

tendencies are gaining the upper hand in that country. As the present

American ambassador in Bonn recently said, they therefore try to make Germans

feel greater "security" and "national pride" within NATO. This "tempting" of

the Germans to stand against the East and the "europeanization of Europe" has

been echoed in the revisionist debate by West German Christian Democrat

historians on Nazi war crimes and their increasing references to such events

of European history as the Turkish massacre of Armenians after World War I,

the Stalinist Purges and the liquidation of kulaks.

The debate over "Central Europe" also has two sides in the Federal Republic of

Germany. On the one hand and as our mass media has already pointed out, the

shade of "Mitteleuropa" is used to reawaken old dreams about German hegemony

and to "push" the Russians out of Europe and these ideas are also discussed by

emigrants from our part of the continent and the German right wing. On the

other hand, the "debate over Central Europe" in the books and articles of

Peter Bender, Guenter Gaus, Peter Glotz and other social democrats is only a

small part of the creation of trust in Europe at the junction of the two

blocks by means of cooperation between all countries. This program not only

weakens alliances and German reunification by indirect means but the

"europeanization of Europe" also brings closer both halves of a divided Europe

in cooperation and a feeling of security under the existing structures and

treaties.

After all, this sense of "europeanization" has been obvious in Polish foreign

policy since the time of Adam Rapacki, the policy of openness in Edward

Gierek's time and Poland's foreign policy in the 1980's. It is no concidence

that Wojciech Jaruzelski refers to the concept of the "europeanization of

Europe" and has proposed the preparation of a report on the state of Europe

and the organization of a European congress in 1989 to mark to 60th

anniversary of the outbreak of World War II.

36
In Europe, no one can any longer allow diplomatic, political, economic,

cultural and social inertia. This has been proven by the revitalized

relations between Washington and Moscow regardless of whatever difficulties

they have experienced. The cards are being dealt for the next few decades and

every country, weak or strong, one must find its own place in the community of

nations. There is no sign of any great upheavals or radical change of

alliances and the future rests with slow but profound changes. In the long

run the Europe of the future will be built not by complexes, resentment,

self-isolation and suspicion but by a correct understanding of ones

opportunities, by activity and by the ability to cooperate with ones near and

distant neighbors.

This discussion cannot be complete without our own participation. Many of us

now feel that the dispute over "the center of Europe" is just a smokescreen

Tor German revisionism and that we cannot take part but must take a stand

against't. At the same time, no one can win the debate over Central Europe

because it consists of nothing more than ^»^" "* ?

r

""

bttt by

participating in it, we can at least influence the directions it takes.

We cannot forget that everyone is now trying to find a place for themselves in

the 21st century and seeking new forms of cooperation within and beyond the

existing structures. If someone sees only one dimension of the debate over

CentralEurope, let him read the book "Dialogue of Differences published in

A oVvT» Tn 1985 This is a record of the discussions between official

representative^^ of the GDR (Culture Minister Hans Joachim Hoffmann), Hungary

?cSture Minister Bela Kopaczi), Austria (Former Chancellor Fred Sinowatz) and

West Germany (Peter Glotz' member of the SPD directorate). A fragment of this

d^cussTon was published in Poland by FORUM. Our absence from these

discussions contributes nothing but prevents us from working with our

neighbors to build the future.

We must correctly and in an unbiased fashion keep up with the intellectual

We must^correct y _ because we must recover the role we once had within

r?i:^S"e Austrian and Italian journal MITTELEUR0PA

was first published in Austria and that in Vienna there has appeared the

International magazine, PANNONIA, which is edited by Austrians Hungarians

Germanfrom the GDR, FRG and West Berlin, Russians, Bulgarians, Yugoslavs and

PnlP« However Folish participation in PANNONIA is less than marginal while

the Hungarians; heedful'of the'ir image in Central Europe, have taken the

forefront of activity.

T* • VnianA the recent trend for the "europeanization of Europe" is to mean

more the lust a few^press headlines, we must tak, steps to assure our return

more the us a_tew P b also participatirig in discussions of

theluturTanTb"^Äi th. uWnging foundations of Polish security:

- that peace in Europe requires the existence of two German states;

- that the Soviet Union is the bulwark of security in Central Europe;

37
— and that Poland's internal strength and good relations with the Soviet

Union provide political and economic stability to the entire region.

It is necessary to repeat these points but it is neither good policy nor a

good understanding of the future to limit ourselves to them alone. The weak

and small countries (and we are a weak country today) must be active. Poland

also needs a good sense of imagination.

12261

CSO: 2600/351

38
POLAND POLITICAL

'BLANK SPOTS' IN HISTORY OF RELATIONS WITH SOVIETS

Frankfurt/Main FRANKFURTER ALLGEMEINE ZEITUNG in German 27 Apr 87 p 12

[Article by Stefan Dietrich: "Friendship and Sincerity—Blank Spots in Soviet

and Polish Historiography"]

[Text] Warsaw, in April—The "unshakable friendship" between the People's

Republic of Poland and the Soviet Union just recently marked its 42nd

anniversary. This is how long it has taken the official representatives of

this friendship solemnly to arrive at the insight that true friendship also

requires sincerity. The "protocol on cooperation in the area of ideology,

science and culture," signed by Gorbachev and Jaruzelski in Moscow, takes note

of the fact that there are "white spots" in official historiography. It would

be closer to the truth to speak of "dark spots" because first of all the

historical events under discussion have all been researched and secondly,

white is not really the color of shame.

It has not been forgotten in Poland that Stalin liquidated the Polish

Communist Party in 1938 (physically, too) because it did not fit into his

plans for an alliance from an ideological point of view. Nor has the HitlerStalin Pact been forgotten the most important provision of which—the division

of Poland into a Soviet and a National Socialist zone of occupation—is still

being officially denied today. And finally, the Katyn massacre and the

deportation of hundreds of thousands of Poles in the Soviet occupied areas has

not been forgotten either. For the time being, all these events are still

being euphemistically described as "white spots."

In time no doubt, the historians who have now received official party orders

to provide an "objective and precise interpretation of history from a MarxistLeninist point of view" will rid the present communist rulers of a

hypocritical view of life which has outlived its usefulness. But they will be

unable to render satisfaction for the many humiliations to which Polish

national pride has been subjected—the more so if the new openness is

perpetually accompanied by protestations of cordial understanding.

How meaningful can this entire exercise be, if the Soviet Union hermetically

seals off its borders with Poland for fear of contamination with free Western

democratic thought? During the past year, five times as many Poles (i.e.

400,000) visited the FRG than the Soviet Union. During the same time period, a

39
mere 32,000 carefully selected Russians were given the privilege of visiting

"the free West" of the East Bloc. That should now improve. But the damage

caused to the Polish-Russian relationship by the communists in particular will

not be undone for a long time. If one mentions the word "friendship" to a

Pole, he will immediately change it to "brotherhood," offering the following

explanation for doing so: "The difference between the two is that one can

choose one's friends." The ceremonial renewal of the brotherly alliance by

Jaruzelski and Gorbachev was no accident. Indeed, it marks the official

recognition of intensified cooperation between the two nations in a variety of

areas over the past year. In 1986 alone, a total of more than 20 governmentto-government agreements were signed by the Soviet Union and Poland on

economic, cultural and scientific exchanges as well as travel. Since

cooperation in all these areas is nothing new, it can only mean that there was

a great need to establish equality in the existing relationship. Thus, a

Polish cultural institute will soon open in Moscow to match the Soviet

institute in Warsaw. For months, an unprecedented propaganda campaign has been

under way to publicize the fact that more than 100 scientific institutes and

economic enterprises in both countries have been engaged in direct exchange

programs and that three joint Polish-Soviet ventures have been activated

thanks to a change in legal provisions. But proletarian internationalism still

has a long way to go to match the matter-of-factness of exchanges among the

nations of the West.

In February, Jaruzelski said it was a great satisfaction and a great

opportunity for the Soviet Union to have expressed an interest in a strong,

modern and secure Poland and that it was doing so at a time of complete

agreement on internal and foreign policy goals. "There has never been such a

fortuitous agreement in the 1,000 years of Polish history," Jaruzelski noted

exuberantly. Some of his compatriots may have gnashed their teeth at the time.

But form his own point of view, the Polish party chief was close enough to the

truth. The PZPR leadership is under great pressure to reform. If the "small

stabilization program," which was hard enough to work out, does not work, the

party will be faced with a renewed outbreak of popular unrest in 5 years at

most. The fresh winds of reforms coming from the east are just what the doctor

ordered as far as Jaruzelski is concerned. Although the just announced second

stage of the Polish economic reform program goes far beyond the

"revolutionary" restructuring program of the Soviet system announced by

Gorbachev last January, no one has tried to stay Jaruzelski's hand up to now.

To be sure, these major restructuring programs both in Warsaw and in Moscow

are just on paper thus far.

9478

CSO: 2300/276

40
POLAND POLITICAL

REPORTER ON PRAVDA ANNIVERSARY FUNCTION

AU121425 Warsaw TRYBUNA LUDU in Polish 7 May 87 p 6

[Report by permanent correspondent Jerzy Kraszewski: "PRAVDA in its 76th

Year—The Past and Today"]

[Text] Moscow—A meeting of chief editors of party newspapers of the

socialist countries concluded celebrations to mark the 75th anniversary of

PRAVDA. On reflection it could be said that this meeting was symbolic in

its character, and this reflection is prompted by the fact that the international meeting of chief editors of the communist and democratic press on

3-4 May coincided with the PRAVDA jubilee.

The meeting was a symbol because the jubilee enabled progressive journalists

from over 100 countries to exchange views on the most burning national and

international issues. Discussions were candid and open. The positions

presented in them were not always identical in details, but expressed agreement on the question of peace, disarmament, rescuing the world from annihilation, social progress, and strengthening the influence of socialism. Support

for and solidarity with the Soviet disarmament program, the USSR s peace

offensive, and the 27th CPSU Congress» policy of accelerated development and

reconstruction was expressed. This vote was representative because 115 representatives of the communist and democratic press from all continents came to

Moscow for the PRAVDA jubilee.

Of course, it is not symbols that are at stake. The two international meetings,

the bilateral and multilateral talks at the Tuesday function in the Trade

Unions House attended by Mikhail Gorbachev and the CPSU highest authorities,

and the speech made by Viktor Afanasyev stressed the problems of the present

and future.

The past, including PRAVDA's rich history, served as a point of departure when

formulating answers to the questions of what lessons history has given_to the

present times and generations, what more should be done and how, what is _

to be done to strengthen socialism and its influence, what duties progressive

-journalism has to fulfill in the struggle to preserve peace, and how to

consolidate better and more effectively the forces of progress around our ideas.

41
The present mood dominating the CPSU and the country determined this kind of

celebration of PRAVDA's 75th anniversary—a less solemn and festive but more

down-to-earth and concrete celebration. The thing is to stick to reality,

look the future in the face, clearly formulate goals, and be aware of the

scale and complicated character of tasks requiring solutions. Speaking in

the Hall of Columns of the Trade Union House, the chief editor of PRAVDA

referred primarily to the present times and to PRAVDA's share in reconstruction, not avoiding, although the jubilee might have induced him to do so,

difficult problems and obstacles that must be overcome.

I have before me two PRAVDA issues opening the 76th year of its existence.

The 5 May issue carries a photocopy of the first ever issue of the daily

printed in Saint Petersburg. The front page carries the banner "The Workers'

Daily" and all the four pages carry reports on the acute problems of those days.

On 6 May PRAVDA published an editorial on the collective guarantee of

discipline (commentary on the recent CPSU Central Committee resolution), reports

on M. Gorbachev's meeting with G. Marchais, intervening articles, the new

rubric "The Housing Problem Under PRAVDA's Control," and a report entitled

"Party Life—What Is Behind Conflicts?" These articles are sharp at times,

search for answers to urgent questions—as was the case with discussions with

foreign guests—and formulate proposals.

This was so 75 years ago, and this is so now under new conditions. PRAVDA

has always been at the forefront, and being at the forefront makes it necessary

to actively go hand in hand with the present times, to change them, and to

look the future in the face....

Chief editors of the party dailies in the socialist countries continued this

tradition.

Jerzy Majka reported on TRYBUNA LUDU plans, recalling Poles' share in the

revolution, which is one of the many historical proofs of how deep the roots

of the socialist idea are in Poland. He also spoke of the experience of our

daily in spreading knowledge about reconstruction and changes in the USSR

and of the sympathy these changes enjoy among the Polish people.

The PRAVDA meeting did not pass any resolution or any other final document

just as the international meeting of the communist and democratic press did

not. But it did give participants a chance to mutually enrich their

knowledge of common matters and to get to know and understand them better.

/8309

CSO: 2600/605

42
POLAND POLITICAL

OPZZ COMMITTEE ON PRICE INCREASES, INTERNAL STRUCTURE

Warsaw TRYBUNA LUDU in Polish 9 Jan 87 pp 1,2

[Unattributed article: "Meeting of the Executive Committee of the All-Polish

Convention of Trade Unions"]

[Text] The Thursday meeting of the Executive Committee of the All-Polish

Convention of Trade Unions, chaired by Alfred Miodowicz, was dominated by one

topic—the price increases for variety meats and milk products.

It caused numerous interventions by union organizations and the Convention

reacted to it with a letter to the premier asking the government to take

action to avoid drastic price increases.

The unionists were not satisfied with the explanation of Wojciech Prus, deputy

minister of finance, who participated in the meeting. He was asked for

example what is the legal basis for the decision that allowed enterprises to

introduce new prices, what is the scale of the increases, and what was their

effect on the lowest group of wage earners? Why were the trade unions not

told of this fact earlier and how, given this fact, should they react to the

uncontrolled price increases?

The motions made and opinions stated were reflected in the final resolution

that states, among other things, that while the trade unions support the

economic reform and the necessary departure from subsidies it cannot be done

at cost of the workers' living standards, especially the poorest group.

Thus, the Executive Committee opposed the high price increases imposed by some

directors of economic units in a bureaucratic and voluntary manner.

The Committee thinks that immediate action by the government to block the

willful prices is essential. The trade unions are against so-called

intermediate price structures and demand that price increases for basic food

products be established in consultation with the union organizations as stated

in the trade union law.

Elaborating this position, the Executive Committee applied to the chairman of

the Council of Ministers to draw the appropriate conclusions to avoid

situations that unnecessarily irritate society and to the government to

' ' . ■■ '

43 ^ •
present the trade unions with a list of proposed actions for the current year

to protect the weakest economic groups in society. It appealed to all union

organizations, plant and national, to pay particular attention to contract

prices in their areas.

The meeting of the Executive Committee of the Convention with the government

during the first quarter was also announced. The talks are to cover methods

for implementing the resolution arid decisions of the union congress and

protecting the people's living standard has been made the prime subject.

Then Jerzy Uzieblo announced that on 28-29 March 1987 the Bureau of the World

Federation of Trade-Unions, including 37 foreign delegations and

representatives of three international union organizations will meet in

Warsaw.

The work of the problem commission of the All-Polish Convention of Trade

unions and the election of its chairman also provoked discussion. The Council

of the Convention will take up these and other internal organizational issues

at its next meeting.

A number of other motions were also made, including extending the term of the

Council of the Workers' Vacation Fund, the nomination of candidates for the

Supervisory Council of the Social Security Agency by branch unions; Alfred

Owoce, chairman of the Federation of the Health Protection Workers, was

nominated to chair the council.

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44
POLAND POLITICAL

JULY 1985 AMENDMENT TO TRADE UNION LAW REVIEWED y

Warsaw NOWE PRAWO in Polish No 11-12, Nov-Dec 86 pp 3-12

[Article by Walery Masewicz: "Amendments to the Trade Union Law"]

[Excerpts] On 24 July 1985 a law was passed amending the trade union law and

other laws defining trade union rights. (1) The act, which has long been

proposed and anticipated by the trade unions, was negotiated by them during a

difficult period of disagreements and arguments at the meetings of the

commission named by the Council of State to prepare the amendments.

The promulgation of this law closes the second period in the reconstruction of

the legal regulations defining the legal status of the trade unions in Poland.

The third period consists of changes in the labor code, including those

sections and articles, that regulate the methods of cooperation of the plant

union organizations with the management of the plant.

Discussion of the proposed July law at the 70 plenary sessions of the Sejm

created an opportunity to present its general premises and the major changes

in the legislation. Deputy-reporter S. Gabrielski (2) moving for the passage

of the law in the name of the Commission for Social, Health, and Physical

Culture Policy and the Commission of Legislative Issues, noted that the

proposal aims to: a) preserve all of the current trade union rights in the

text of the law of 8 October 1982, b) broaden the rights of the union movement

in shaping social policy in the plants and the state, including restoring the

legal rights that the trade unions and the national representatives had had

earlier, c) sanction legally the organizational structure of the movement that

had developed in social practice after the passage of the law of 8 October

1982, d) guarantee the influence of the trade unions on the operation of those

state services and institutions providing services to the working people, e)

strengthen the legal status and role of the plant trade union organizations as

the most important link in the union movement, f) emphasize legally the

organic unity and interdependence of all the union functions and tasks.

The range of the changes in the legal status of the trade unions introduced by

the law of 24 July 1985 is broad. It includes both organizational and legal

problems of the union movement, rights of the individual units in the trade

unions, especially plant union organizations, and standards for the rights of

workers elected to office at some levels of the union structure.

45
1. Within the first group of questions, the amendments brought many new legal

measures. Among other things, it broadened the criteria of association in

trade unions. They have fundamental significance for the holdings and

prospects for development of the Polish trade unions. The original art 10

paragraph 2 of the law on trade unions established three, independent criteria

of association in trade unions: common employment within one branch of work,

performance of a kind employment or one occupation. This made it possible, at

least in theory, to create branch, industry, or single-occupation unions. The

July amendments added two further organizational criteria for forming trade

unions: a) the right to create one trade union for a multi-plant enterprise

regardless of the degree of organizational or financial independence of the

particular plants, affiliates, or sections of the enterprise and b) allowing

the unionizing of the workers of only a single plant.

The goal of these changes is sufficiently clear. It allows the fusion of

union organizations currently functioning within individual units of a multiplant enterprise. The community of rights and interests of the employees of

these units creates a natural bond for developing uniform tactics in union

action. Union organizations currently functioning in individual parts of a

multi-plant enterprise could, obviously, before the passage of the amendments,

cooperate in various ways; formally however, they were separate trade unions,

which led to doubling and accumulation of union tasks, complicated the

organizational structure, and reduced the effectiveness of operations.

It is difficult, however, not to notice some negative consequences of the

proliferation of criteria for association in trade unions, especially limiting

them to a single plant. The entire reconstruction of the trade unions after

the great crisis is greatly dispersed. Most plant unioh organizations still

have separate, independent union status, and the predominant federation

structure above the plant level preserves the atomization of the whole despite

efforts toward integration. '

The new version of art 6 accents the trade union's rights to cooperate with

management bodies of the plant in creating conditions favorable to the

completion of the tasks, implementing advancement, innovation,

rationalization, etc. I

i This change is supposed to contribute to the trade union's more harmonious

execution of its traitional social functions. It also aims to have the trade

unions accept greater tasks and responsibility for the state of the national

economy and the country's prospects for development.

Legal sanction for the trade union organizational structures above the plant

level that were Created by the trade unions themselves between 1 January 1983

and 10 August 1985 is the most important issue in the first group of problems

in the amendments. The amendment neither creates any new union units nor

delineates the organizational forms, realms of jurisdiction, or methods of

operation of these units that have survived their initial test in practice.

The standards of the July law are in this respect extremely brief and laconic.

Even the names of the existing above-plant-level units were not defined.

Thus, the law defines federationd of trade uhionö as "national union

46
organizations, unions of federations, or other similar union organs as

institutions if. union cooperation within ^^^,n# ;*?"%££

branches of work," the All-Polish Convention of Trade Unions,as «the national

inter-union organization." Two things ought to be noted here. First, the

legislator^ systematically respected the independence of the ^

de "nions

which is their fundamental legal principle in art 1 par 2 of the la*. This

independence includes the right to develop their own organizational structures

anftheir transfNation and8reform given changing ^^X^Z^

union movement is searching for such organizational forms that have survived

Sn^EETUt Period and can become stable. Any legislative support> of

one of the many possible organizational structures could be seen as a

Umitation of the independence of the trade unions. Sec°nd trade unions have

noticed the need to organize a congress or other union forum in

?uture that would be the only authority for establlshlng « "fj£a£j;£

structure that might be accepted. As is known, the Second All-Polish

Convention of Trade Unions has been designated such a forum.

The July amendments limited the range of their norms on structural and

organizational problems to a few regulations of elementary, basic

section or branch.

Only national union organizations can create a national inter-union

organization.

Lar*e areas of the mutual relations among individual union units, their

lurisdiction, resources, and methods of operation remain beyond the range of

tne^regulations established by law. It is assumed that these issues will be

settled by•'legal regulations" established by the trade unions themselves,

present SnaTorder of relations in trade unions cannot * <^££

transparent, logical, and coherent. There are many causes: the Peculiar

oeriod? when union structures were reconstructed, the openly-demonstrated

Willingness to reconstruct organizational conceptions of branch trade unions

aSd a desire to find new ways, the great variety of organizational forms that

the new unions adopted that were suited to their legal status.

The overall organizational structure of this movement is an issue for the

Jn,n,pJ?«te future. The trade unions have not yet completed their

reconstruction^:I the recovery of their rights and areas of operation tey

oossessed prior to August 1980. The July amendments to the trade union law

ngaTized o^lya particular stage of this process, adopting the trade unionsholdings of 1985 as the basis for legal regulation.

The version of art 5 of the law entitles the trade unions to play the role of

the legal representative of all employees in a plant, branch, or type of work,

etc This Standard continues the tradition of Polish trade union law

beginning in 1919 under which trade unions have always been the ?I «»*"£

^occupational interests, especially of those types of work whose

47
representatives formed the majority in a union but also in related types.

This principle remained in force in a somewhat altered form even after the

enactment of the trade union law of 1 July 1949. It lost its meaning after

August 1980 as an unavoidable result of the division of the united branch

union movement and the formation of three trade unions that used varying

criteria of association and different organizational structures. Union

pluralism became a fact that had to be taken into consideration by the

commission named by the Council of State to develop a proposed new trade union

law. The two or three trade unions in a plant could no longer have the

privilege of representing all the employees even if one of them could pretend

to the title of the representative, significant, influential union. The trade

union law was enacted in an unusual, unique situation in October 1982."A

careful observer of events stated, not without some amazement, that the law's

text contained a regulation developed by the above mentioned commission whose

language made each union in a plant the representative of the interests and

rights only of its members and that these unions could form a common

representation which, however, would be the representative only of that

portion of the employees who were associated in the trade unions.

The July amendments do not definitively settle the pluralism versus monism

issue, though they do establish two legal measures: 1) they maintain the

principle that only one union organization can operate in a plant; 2) they

accord all units in a union structure, and thus also the plant union

organizations, the legal status of the representative of the interests and the

defenders of the rights of all workers in the unions area of operations.

During the transition period, at least in practice, there is no contradiction

between the social functions of a trade union as an association of people

united especially for the common defense of their own group interests and

rights and the status of the union as the legal representative of the

interests of all the employees.

The July amendments that broaden the trade union rights, especially their

plant units, constitute the second basic group of this law's provisions. They

give the amendments a distinctive character and direction. This group

includes new, innovative regulations and alterations of regulations of old

problems already sanctioned by law. First among the latter are the new

control and supervision functions of the trade unions. The trade unions have

been social auditors since their founding. Rarely, however, has the range,

methods, and resources for supervision been legally institutionalized.

The July amendments make the trade unions: a) the social supervisor of the

working and living conditions, of the observance of the law, security, and

work safety, and of the distribution of housing units available through the

plant; b) the supervisor of the distribution of sanatorium assignments; c) the

controler (programing,, supervising, disciplining) of the activities of other

bodies of social supervision, i.e. social inspection of work; d) a participant

in the supervision of the operations of the State Work Inspectorate, the

Social Security Agency, and the Workers« Vacation Fund.

The provisions broadening the rights of the plant union organizations are of

fundamental significance. They chiefly make up the justification for the

statement that the goal of the amendments was to strengthen the role and

48
significance of the plant union units. The minor influence of the trade union

on the administration of the plant social and housing funds was one of the

faults of the law of 8 October 1982 and for many workersit was proof of the

denigration of the union and the discrimination against it in relation to the

worker self-managements.

This inequality was somewhat modified by the appropriate practice of

cooperation of the self-managements and trade unions. The well-known

recommendation of the Sejm Commission on Enterprises' Workers SelfManagements and the former Social Consultation Commission suggested that the

self-managements were obliged to consult the trade unions on the Principles

governing the distribution of the enterprise's awards and premiums and the

assignment of plant housing and social construction. The form of the

statement in which the trade unions were to express their position was not

defined. There was, however, no doubt that the statement was a consultant s

opinion.

The semantic layer of the technical legal terms in art 30a of the amendments

leaves no doubt that the condition of agreeing with the plant organization on

how to use the social and housing funds gives this organization the right to

participate in these decisions. It also leaves no doubt that the <*•<*»*»» "

these matters, whether they are made individually or by the resolution of a

group, although they are externally statements of the administrative bodies,

are in fact dual, mutual decisions because of the obligatory agreement upon

the actions to be taken.

A few observations on other issues included in the second group of the July

amendments. The former rights of the national interunion organization to

exceptional appeal to the Supreme Court on issues of labor law and social

security was restored. At present this right belongs to the All-Polish

Convention of Trade Unions which has become one of the many bodies developing

the judicature of the state courts on labor issues. This right has not been

limited to cases of exceptional appeal in the interests of a worker,

oensioner, or retiree. One should hope that cases of exceptional appeal to

the detriment of workers will be deviations in the Convention's practice. The

Convention has been authorized to appeal to the Supreme Court for decisions on

guidelines on labor law, social security law, and so-called legal questions.

The trade unions have been empowered to conduct economic operations for profit

that is to enlarge the union funds for implementing its statutory functions.

All types of economic activity (production/sales, services, etc.; are

included. The principles for conducting such activities are set out in

separate regulations. (4)

Among the third group of amendments, two issues deserve attention:

strengthening the special legal protections for union activists and the new

regulations covering their material status during service in office.

Before the amendments, art 39 pt 1 of the labor law guaranteed the union

activists' job. Their defense was weaker than that of the workers on the

workers' council of the self-managements. The new standard in this area

consists of six changes.

49
1) The establishment of a legal prohibition preventing the employer from

terminating the work contract (including cooperative work contracts and

removal of workers employed under so-called acts of nomination) while they are

serving as a member of the board of the plant union organization or for a year

after their term of office.

2) The exclusion of the effects of a legal firing made before election to the

board of the plant union organization, if the end of the dismissal period

would fall within the term in office.

3) Allowing termination of a work contract during the protected period when

the whole plant is liquidated or the worker becomes eligible for a pension for

first or second class invalids.

M) Maintenance of the right of the employing body to terminate immediately the

work contract during the term in office whether for reasons for which the

worker is responsible (see art 52 of the labor code) or not responsible (art

53 of the labor code). If the plant union organization is part of a

federation or other national union organization, the right to terminate the

contract also depends on the prior statutory agreement of the appropriate body

of this organization.

5) Extension of the particular legal protection to so-called shifting

terminations, if the termination moves the worker to new but poorer working

conditions or wages.

6) Special legal protection is also given to those workers who hold elected

office in the statutory bodies of the union federations (or their national

union organization) and the All-Polish Convention of Trade Unions. This is an

innovation in Polish labor law.

Determining whether the range of the legal protection of the worker's job is

sufficient or remains insufficient is certainly a subjective process. Applying

objective criteria developed by comparing Polish legal measures with those of

analogous or similar measures in other countries, one can judge it to be

optimal.

The amendments also contained highly controversial measures. They cover

issues of wages for workers performing duties of the elected offices on the

boards of plant union organizations. The original text of art 32 par 2 of the

trade union law granted leave without pay and the right to services due to

employees, except for the contracted wages, to individuals elected to the

boards of plant union organizations. This provision was criticized by the

union activists because it prevented many elected members of the plant union

organizations from performing their mandated function for lack of union funds

to guarantee even their,previous level of wages. It was supported, however,

by reasons of a higher order. Especially the principle1 of the independence of

the trade union from the employer or their interrelationships. This

independence, conceived complementarily, has many aspects: organizational,

programmatic, personal, and financial. The last means that among other things

that no influence on the union activities is admissible, especially on its

statutory bodies, through financial pressure, through subsidies from the"

employer, by union leaders receiving material benefits from the employer, etc.

50
Although the new measures on wages for individuals freed from occupational

labor while holding office in a plant union organization alleviates the

financial difficulties of many, especially small organizations, they still

contradict the model of trade union legal order in the law of 8 October

1982. This fact casts a shadow on the generally positive nature of the

measures in the amendments to the trade union law of 24 July 1985.

FOOTNOTES

1. DZIENNIK USTAW No 35, Item 162.

2. ZWIAZKOWY BIULETYN PRAWNO-ORGANIZACYJNY 1985, No 9, p. 321.

3. See K. Bialoskorski: »Principles for the Conduct of Economic Activities

by Trade Unions and Taxing Trade Unions for These Activities," ZWIAZKOWY

BIULETYN PRAWNO-ORGANIZACYJNY No 3 1985.

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51
POLAND POLITICAL

BRIEFS

DPRK PARTY DELEGATION VISITS—Warsaw, 11 May—A working delegation of the

Korean Workers' Party CC, led by deputy head of its foreign department Kwuon

Min Dzun [name as received], visited Poland at the invitation from the PUWP

CC, The delegation had talks at the PUWP CC foreign department on inter-party

cooperation, visited the 7Radom voivodship, met with the first secretary

of the PUWP voivodship committee prus, went to see the Kozienice power plant

and a military open air museum of the First Polish Army. [Text] [Warsaw PAP

in English 0030 GMT 12 May 87 LD] /9274

MILITIA COMMANDER NAMED—Warsaw, 15 May—Acting on the motion of the minister

of internal affairs, the president of Poland's Council of Ministers named Gen

Zenon Trzcinski to the post of commander-in-chief of the Civil Militia. Since

December 1981, Trzcinski, 53, has held the post of deputy commander-in-chief

of the Civil Militia. He vis a PUWP member, [Text] [Warsaw PAP in English

2056 GMT 15 May 87 LD] /9274

\ -

AIR CRASH CONDOLENCES RECEIVED—Warsaw, 15 May—Wojciech Jaruzelski, Zbigniew

Messner and Marian Orzechowski continue to receive further cables with condolences after the crash of Polish airline "Lot" plane. Cables were received

from? First Secretary of the Communist Party of Cuba CC, Chairman of the Council of State and Government Fidel Castro Ruz, Secretary General of the Workers'

Party of Ethiopia, Chairman of the Provisional Military Administrative Council,

Commander-in-Chief of the Armed Forces of Socialist Ethiopia Mengistu Haile

Mariam, President of the Hellenic Republic Khristos Sartzetakis, Chairman of

the Council of Ministers of the Italian Republic Amintore Fanfani, Minister of

Foreign Affairs of Canada Joe Clark. [Text] [Warsaw PAP in English 1854 GMT

15 May 87 LD] /9274

PARTY APPEALS COMMISSION MEETS—Warsaw, 11 May—The Appeals Commission of the

10th PUWP Congress held its second plenary meeting here today. During the

meeting presided by PUWP CC Political Bureau member Kazimierz Barcikowski, the

commission discussed the experiences and conclusions stemming from its hitherto work and that of regional appeals bodies. The commission received 686 appeals, most of them (510) during the 10th PUWP Congress, or soon after its

conclusion, The biggest number of appeals (327) concerned decisions of ex^

pulsion from the party, and the remaining 178—continuity of party membership,

90 people appealed from decisions on striking them off the membership list,

and 81 appealed from party sanctions applied towards them. Nearly half of

52
appellants are people who were expelled from the party ranks for moral and

political reasons, others appealed from the decisions and sanctions for violation of party norms or corrupt practices. Barcikowski said that the appeals

submitted to the commission should have been first discussed in basic party

cells to which appellants belonged or belongs. The presidium of the Commission

also held its meeting today. [Text] [Warsaw PAP in English 2016 GMT11 May 87

LD] /9274

MALINOWSKI RECEIVES AUSTRIAN OFFICIAL—Warsaw, 18 May—Sejm Speaker Roman

Malinowski received here today Premier of the lower Austria Government

Siegfried Ludwik. The two discussed Polish-Austrian relations, with particular regard to the role of parliamentary cooperation, Siegfried Ludwik, who is

vice president of the Austrian People's Party and Roman Malinowski, in his

capacity of chairman of the United Peasant Party, touched upon the question

of contacts between the peasant parties of the two countries. The talk was

attended by Austrian Ambassador to Poland Andreas Somogyi. [Text] [Warsaw

PAP in English 0530 GMT 19 May 87 LD] /9274

CZYREK MEETS SYRIAN LEADERS—Damascus, 18 May«r-Jozef Cryrek, a member of the

PUWP CC Political Bureau and PUWP CC secretary is staying in Damascus on an

official visit of friendship at the invitation of the Ba'th Arab Socialist

Party. Czyrek met with assistant secretary-general of Ba'th 'Abdallah al-Ahmar

and next held a meeting with the party and government leadership of Syria,

Today Czyrek visited the martyr city of Qunaytra which was razed to the ground

by the Israeli occupier. Czyrek'also met with the commander of the 27th replacement of the Polish contingent of the UNDOF disengagement observer force

LtrCol Roman Gralewski, He also held a talk with Syria's Vice President Abd

al-Halim Khaddam. [Text] [Warsaw PAP in English 2212 GMT 18 May 87 LD] /9274

VENEZUELAN MINISTER VISITS WARSAW—17 May—Deputy Minister of Foreign Affairs

of Venezuela German Nava Carrillo paid an official visit to Poland between

14 and 17 May. The Polish side expressed recognition for efforts aimed at

finding a peaceful solution to problems in Latin America, in which Venezuela

actively participates within the Contadora Group and the support group. The

Venezuelan side approaches with recognition Polish peace initiatives, especially to the recent proposal on the reduction of armaments and increasing confidence in Central Europe put forward by President of the Council of State

Wojciech Jaruzelski. Both sides expressed satisfaction over the hitherto relations between both states and confirmed their will to continue joint efforts

to expand cultural exchange and cooperation in the field of science, technology

and to animate trade and economic contracts. Deputy Minister Nava Carrillo was

received by Polish Minister of Foreign Affairs Marian Orzechowski, [Text]

[Warsaw PAP in English 1726 GMT 17 May 87 LD] /9274

NEW COURT JUDGES CONGRATULATED—Warsaw, 20 May—President of the Council of

State Wojciech Jaruzelski today handed nomination acts to newly appointed

judges of the Supreme Court at the Belvedere today. Under a resolution of

14 May the Council of State named 118 people to the Supreme Court for a new

five-year term, Adam Lopatka was named first president of the Supreme Court,

Wojciech Jaruzelski passed on cordial congratulations to the newly appointed

judges. The Supreme Court has an important role to play in securing the

53
stability of the state and in safeguarding its interests through concern for

the security of citizens and their feeling of equality under law, Wojciech

Jaruzelski accentuated. Following the nomination ceremony the president of '

the Council of State met with the authorities of the Supreme Court. Pointing ;

to the high rank of the Supreme Court Wojciech Jaruzelski stated that it ''

should be expressed both in the highest quality of judicial decisions and the

personal moral authority of the judges who are entrusted with solving the key

issues concerning various aspects of the life of the state and its citizens,

[Text] [Warsaw PAP in English 1928 GMT 20 May 87 LD] /9274

INTERNATIONAL BOOK FAIR OPENED—Warsaw, 20 May—The 32nd International Book

Fair opened in Warsaw today with over a thousand publishing companies from

various countries taking part. PUWP CC Political Bureau member, vice president

of the Council of State Kazimierz Barcikowski opened the fair. Publishers are

presenting over a hundred thousand of the latest book titles from Austria,

Belgium, Bulgaria, China, Czechoslovakia, Finland, France, Greece (taking part

for the first time), India, Yugoslavia, Cuba, the Democratic People's Republic

of Korea, Mongolia, the GDR, the FRG, Romania, Switzerland, the U.S., Hungary,

Great Britain, Italy, the Soviet Union and West Berlin, Big international organizations such as the UN and the CMEA as well as the Palestine Liberation

Organization are also presenting their publications. There are 58 Polish

publishers at the fair too. Among the foreign participants in the Soviet

"Mezhdunarodnaya Kniga" publishing house put an especially rich and comprehensive book presentation on display. The exhibitions from the GDR and

Czechoslovakia rank among the biggest. [Text] [Warsaw PAP in English 1745

GMT 20 May 87 LD] /9274

RESERVIST TRAINING IN SILESIA—The national defense minister has been observing

the training of reservists at the training ground of the Silesian Military

District. The training of technical and repair subunits» evacuating combat

vehicles, firing centers and signal offices—that is the purpose of today's

exercises. In action are reservists who completed military service several

years ago. Now they are perfecting their capability as soldiers. The training

was observed by National Defense Minister Army General Florian Siwicki. The

training ground is not the only place of training. A detached subunit, in

which there are also reserve soldiers, repaired agricultural machinery. The

value of the soldiers* help was assessed at 3 million zloty. The national

defense minister thanked the soldiers for their work and attitude during the

training. [Text] [Warsaw Television Service in Polish 1730 GMT 15 May 87]

/8309

CSO: 2600/605

54
ROMANIA POLITICAL

BRIEFS

UK ENVOY MEETS WRITERS UNION OFFICIALS—On Friday, 15 May 1987, Mr. Hugh

Arbuthnott, ambassador extraordinary and plenipotentiary of Great Britain

in Bucharest paid a working viiit tb the Writers Union. The guest met with

Dumitru Radu Popescu, president of the Writers Union of the Socialist Republic

of Romania. Mr. Kevin McGuinnjiss, Cultural Attache of the Embassy of Great

Britain in Bucharest, Ion Holbjm, Secretary of the Union and Professor

Andrei Banas took part in the Meeting. Aspects of the development of

relations of cooperation.between writers of the two countries were discussed.

[Text] [Bucharest ROMANIA LITJERARA in Romanian No 21, 21 May 87 p 2] /8309

APPOINTMENT OF DEPUTY MINISTERS—The President of the Socialist Republic of

Romania decrees that the following comrades are appointed deputy ministers

of the machine building industry: Violeta Caldarusa and Stelian Necula.

[Excerpts] [Bucharest BULETINUL OFICIAL in Romanian Part I No 21, 13 May 87

p 2] /8309

REMOVAL OF DEPUTY MINISTER—The President of the Socialist Republic of v

Romania decrees that Comrade Dan Vicentiu Constantin is relieved of his

position as deputy minister of foreign trade and international economic

cooperation. [Excerpts] [Bucharest BULETINUL OFICIAL in Romanian Part I

No 21, 13 May 87 p 2] /8309

CSO: 2700/218

55
YUGOSLAVIA POLITICAL

OUTGOING SAWPY CHIEF INTERVIEWED ON CURRENT ISSUES

Belgrade NEDELJNE INFORMATIVNE NOVINE in Serbo-Croatian 26 Apr 87 pp 19-22

[Interview with Nenad Bucin, chairman of the Federal Conference of the SAWPY,

by Jug Grizelj: "Who Needs an Indulgent SAWP"; date and place not given]

[Text] Known until recently only to the Montenegrin public, the name of Nenad

Bucin (born in Kotor, 1934) has suddenly become a surprisingly attractive

"media" name in Yugoslav political life since last May when he was elected to

a 1-year term as chairman of the Federal Council of the SAWPY. A skillful and

persuasive communicator, frank and spontaneous, comprehensible to everyone,

and determined "not to take criticism" from anyone because of the position he

holds, he has attracted the attention of the Yugoslav public and especially of

those reporting on the meetings Bucin has taken part in—it is never boring

when he is there. Bucin is no enfant terrible of Yugoslav politics, neither a

"dissident" nor an "assassin." He simply thinks that as a holder of political

office he has a duty to speak openly and to put all the questions which are of

interest to the rank and file of the organization which he represents in the

Federation.

What follows is an interview with Nenad Bucin 20 days before his term expires.

[Question] So this year has passed, in a few days you will "abdicate." How

do you feel about it?

[Answer] First, for me at least the most recognizable feeling as the term is

about to expire is that I am glad and relieved that it is coming to an end. I

am also happy in the knowledge that there were relatively few issues I did not

respond to and that I tried to "raise" quite a few of those issues which were

bothering me at various points.

But it is somewhere here that the content ends, and we get to the partial

satisfaction or indeed even disappointment with what I and others achieved....

I am deeply dissatisfied with the actual attitude of responsible individuals

and bodies toward the Socialist Alliance, that real degree of politicalideological obfuscation over its role in society. The fact that such

misunderstandings exist, even among members of the bodies of the SAWP, can

only add to the discouragement....

56
If any one of the triad: the government—the party—the SAWP, needs an

indulgent and »adaptable" Socialist Alliance, including the people in it, then

let the primary thing for us be to ask why they want that, not how we are to

meet that demand! And the tales about the «fitness" of the Socialist

Alliance, about its presumed ambitions to partnership and parallelism, begin

at precisely the moment when it fails to satisfy the ambitions and whims we

have referred to.

[Question] Give us an example of that demand for indulgence and obedience on

the part of the Socialist Alliance—at your high level?

[Answer] They have been beyond number. For instance, the chairman of the FEC

comes and reports to the Presidium of the SAWPY, and this is done verbally,

some 15 important measures in the "new package," you cannot even remember what

those 15 measures have been, nor do you have a chance to write them down, much

less reflect on them, but they still expect—on some basis, actually on the

basis of inertia over many years, that the SAWP will immediately "offer full

support" to the measures. Then I, say, move that we do not immediately

furnish our "unreserved support" to this proposal of measures which were

supposed to be adopted the next day, but on the contrary maintain a certain

critical distance and wait for the outcome of the first verification of the

soundness of these measures in the assembly debate and then possibly get

behind them." But certain comrades immediately jump up and say: Are we in

favor of our government or aren't we, do we belong, or are we in opposition,

what is there to wait for, let us give our support. Then I probably add that

in the Western democracies the government sends new bills even to the

opposition parties at least 48 hours before they are presented in parliament,

and the answer I am given is this: So there, in the end you want to be in

opposition, and I say: No, the Socialist Alliance must preserve a critical

distance; it simply does not have the authority to issue a blank check of

confidence. Moreover, the Socialist Alliance has an oversight function under

the Constitution. But it does no good at all! And it is more or less always

that way Will it always be?

[Question] What is the "internal" lesson you take from this term of office,

and what will you be doing next?

[Answer] Lesson? In any case it is not "don't lean out the window." Since I

have not been afraid of conflicts, opinions, or anyone's vanity. What I fear

most is the opportunism which a man must sooner or later be inclined to

himself, that is simply the way it happens. It is not for nothing that people

say that the worst is not when they beat you, but when they beat you and also

explain that it is for your own good.... And then in this year that I have

been chairman there are questions that we have raised here, issues important

to Yugoslavia, but this is usually the situation you get: no one is against

your raising that particular question, everyone is "in favor," everyone pats

you on the shoulder, but in the end it turns out that all those important

issues are dropped from the agenda. It would be easier if one heard

counterarguments in answer to his arguments; the most difficult thing is when

your arguments are followed by a loud and echoing silence in which you are

completely ignored.

57
Aside from that, I take it hard when we cannot agree—not on the essential

issues, but even on marginal matters. I have been noticing that more and more

we arrive at a consensus on the basis of what the minority wants. You tailor

a consensus to the opinion of one-eighth; but if you have five out of a total

of eight "in favor," then you will not get what you want. There will be some

"sagacious assessment" and "at the right moment" it will be best for us to

concur in the view of that single one, so that then seven-eighths adopt the

"consensus" position of that one-eighth.

[Question] Have there been questions in the past year on which you have

raised your hand "in favor" or when you as the "spokesman" conducting the

meeting have dictated conclusions which you opposed with all your being? If

there have been such situations, and judging by your answers so far there have

been, why did you not resort to resignation?

[Answer] Perhaps that is the most important reason why I am feeling relief as

I wait for my term of office to expire. Yes, I have been in that situation on

several occasions when I could have resigned, but then that is a thing which

in our country is still completely "up in the air"; some people will say that

"you are running away from the battle," others that you are "avoiding your

responsibility," still others that you are "calling attention to yourself,"

and finally those who say that you are a "traitor to our cause." However, the

most important practical reason that I did not resign in situations when I

deeply disagreed with the decisions being made and which I would sign—is the

belief that unfortunately no one's conscience would be awakened, nor would my

resignation nor anyone's resignation have an effect on anyone's future

actions! This has not been achieved even by considerably more drastic moves

in our recent past, nor even by cases of self-destruction. I understand that

in our society as resignation must become an individual act of one's integrity

when a man is unable to accept some decision, when there is no "extraordinary

situation" why he should burden his conscience and make a pretense of unity

when it does not exist.

[Question] Probably that is why it is our situation that "nothing can

surprise" us except Kosovo, snow in January, 130-percent inflation, over 1

million unemployed, a debt running to $20 billion, and the like. Isn't this

because we confuse historical goals with day-to-day goals, and since

historically we are in the right as a movement, we then think that we are

infallible in every individual decision as well? Probably that is why we

receive a request to rehabilitate someone who in the past said the right thing

and we accused him or condemned him and threw him out of the party the way

they take out a molar without anesthesia.

[Answer] It is obviously a question of our commitments being way out ahead of

our specific solutions. We have proclaimed that proceedings are to be open to

public scrutiny, but in fact we nurture exclusiveness, secrecy, mystery, and

this suits us very well, since it seems to us that we have eliminated the

vacillation in society—at least for a moment. We have also made certain

fateful moves in strictly exclusive ways wrapped in secrecy, so that when in

the parliament a delegate asks in public how big the government's debt is, he

gets a secret answer from the bureaucracy, and that "only for personal use,"

58
as though he had asked it out of personal curiosity. Unfortunately this is a

natural characteristic of any bureaucracy: It is worth adding to this our

Balkan sloppiness, and so it turns out, here is an example, one among many,

that our debts were for a long time a secret only to our own citizens, and

indeed even to those who keep our official records and statistics, when the

whole world knew about them.

[Question] There was a time earlier which will be remembered by anyone who

has a long memory and has been working for a long time when we had strong

propaganda arguments: we were building socialism as social justice and social

programs, and this was a message that gave warmth to entire generations.

Today when in many respects we are no longer a model to the world, nor indeed

even to ourselves, we go on singing the same old song, we are the best, we are

the most humane, we are the most self-managing, we are the most lawful....

How do you explain that?

[Answer] How? That reminds me of that joke from Cetinje: A young man goes

up to a girl who is sitting down and asks her to dance, and he is surprised by

how tall she is and so just to make conversation he asks how tall she is.

When her answer confirms his horrifying estimate "with the naked eye" of the

great difference between them, he blurts out: Well, you know, that's how tall

I am, too, but I'm having an off night!

So, our "off night," our tardy confrontation with the truth, is not a bit less

painful than that of the young man. Which is probably why many people

stubbornly avoid such unpleasant and traumatizing confrontations—trying to

sleep through them. The flight from unpleasant truth, from the "moment of

terrible truth," is particularly harmful when it becomes a manner, especially

a manner in, say, politics or education. In this case the loss is not

measured in physical indicators alone....

We cannot get away from this on the wings of the slogan about "relying on our

own resources," which means that we would turn our gaze (at least covertly, to

someone else's accumulation and "sweet" credits, but only if from a very young

age we get it into the head of every Yugoslav that we are poor and not

excessively rich as we have been saying for decades, and that various

conveniences and pleasant things in life can be obtained only by work and

knowledge, indeed by a great deal of work and a great deal of knowledge.

[Question] Now comes a question which cannot be avoided: What is the SAWPY

Presidium, which you head, doing to get an answer from the government to the

question of when inflation will be dropping?

[Answer] Our capabilities, as we like to say, are inexhaustible in many

respects, including our susceptibility to inflation. Both in this "joke" and

in some reality that would mean that we still have room to go in that

direction. In the actual case, we did in fact put exactly that question

recently: How long is this inflation going to last, and what specifically is

being prepared so that it will be lower from now on? But even that was a

waste of time.

[Question] But how about that oversight role of the Socialist Alliance?

59
According to its constitutional function, for instance, the Socialist Alliance

has made various proposals of changes in basic enactments in our well-known

public discussions. Often, however, those public discussions have grave

limitations: You are free to engage in discussion only "from here to here,"

"nothing is acceptable" that comes before or after, and then you have what is

referred to as the "summing up of the discussion," and then it turns out that

we all agree on everything. Did you talk about that during the year?

[Answer] Several times. We are all disturbed about the direction in which

those public discussions of ours are going. Discussions which are one of the

foundations of democracy in the definition of our political system.

Unfortunately, we are behaving more and more like bad scientists who set up

some hypothesis—which they then cover with "indubitable evidence" in the

style of "cross my heart." Wasn't the discussion following the 13th Meeting

the best example of how our public discussions end up? When we "summed up"

all of those truly nationwide, open, critical, and well-intentioned criticisms

which were made throughout Yugoslavia, then what went before the Central

Committee was difficult to recognize; above all for those who participated in

that debate: so much had been filtered out, rinsed out, washed out, and

combed out.

It is even a question of whether that is the greatest failure of these public

discussions of ours? Is it not still worse when we in the structures—in a

closed room—mull over some proposal for 3 or 4 years (as is now the case with

amendments to the Law on Associated Labor), and then give a period of a few

months for the workers to debate them, half of which is in the summertime when

no one is at work!? Later we will nicely "sum up" all of that, and we will

refer to the solutions as "the result of a plebiscite." As a matter of fact,

those public discussions of ours have become very painful, and then we have

become so clever that even when someone refutes what we say in these public

discussions—we turn it around as though it had supported our hypotheses.

This is the only reason why today you can no longer fill a single auditorium

for any public discussion regardless of what the question is. People say:

Why should we discuss it when the end result is not going to be affected.

[Question] One gets the impression that the Socialist Alliance, although

timidly, has nevertheless concluded in the recent past that so-called

alternative ideas are not any kind of tragedy and that they should be listened

to and examined.

[Answer] To tell you the truth, I am amazed that more alternative ideas do

not spring up. We have all become sick and tired of one-mindedness, of

"plebiscite support," of applause, of turning to left and right, and that is

why we have so much lethargy and apathy. I think that alternative ideas are

the most natural thing in the world, and we should be overjoyed that these

ideas are emerging. When you take a little closer look, most of these ideas

follow the line of our commitments, and when you look more carefully at our

reactions, it seems that what worries us the most is, first, that these ideas

do not come from us, "from the movement," or that we are too old and oldfashioned to understand them.

Of course, there are also ideas that are planted, but this is easy to

60
recognize, isn't it?! It would be muoh better for us to go out to meet these

new ideas and to "suck them" into the Socialist Alliance. All the parties in

the world are scrambling today for young people, for the ecological and other

movements, but this bothers us. And then we also put the question: Is this

on the line of self-management and socialism? At the same time we behave

according to all the rules of hypocrisy: It does not bother us that in the

League of Communists of Yugoslavia we often have eight opinions, eight ideas

stored on eight government-party shelves, we have become accustomed to adopt a

consensus even in the party, and we regard this as unity "concerning that

minimum on which we can reach maximum agreement...." But what we allow in the

League of Communists we do not allow to ordinary citizens! We are afraid of

spontaneous ideas, although without doubt this is the most natural milieu in

which alternative ideas should grow. Then we pin labels on these ideas, we

condemn them, we attack them.... I repeat, since in our society there is

always a danger that someone will take you the wrong way—there is a need to

fight certain ideas, there is truly a need to recognize what is not along the

line of our basic commitments, but the fight should be waged with arguments,

above all with arguments. However much they might seem to smack of

"efficiency," of irascibility, of self-confidence and force, the

administrative measures are always an expression and reflection of

uninventiveness, weakness, uncertainty, and a state of confusion.

[Question] Now that you have mentioned name-calling, does it seem to you that

once again we are in a phase of augmented production of domestic enemies on

all sides?

[Answer] A few days ago I attended a meeting of reserve military officers

where we learned about the basic elements of the upcoming exercises in social

self-protection. We were told that during the exercise "four internal enemies

would be operating." I then made the remark: Why so few, why only four? A

majority understood me quite well, and there was even a bit of laughter.

I tell this anecdote in order to support the assertion about the hasty and

immoderate production of enemies. It somehow turns out that our external

borders are secure, that we have few if any enemies outside^, but within our

borders they are all over the place. I think, of course, that this is a case

of deliberate craftiness on the part of the political bureaucracy, which wants

to avoid the greater wave of criticism which must inevitably come as a

consequence of the crisis or of the mistakes which we have made and are

making.

But on the other side from these producers of enemies, I think, first, that

the absolute commitment of the immense majority of Yugoslavs is to socialism

and self-management, that is, that it is patriotic, and that precisely at this

moment we have a greater need to have a still larger wave of criticism than,

say, a new installment of international credits. It is absolutely

incomprehensible to common sense for people to say that our domestic enemies

are "better organized than we are," that they are "operating more

deliberately" and are "quite cleverly infiltrating all the pores of our

society...."

61
I w/oüld say that the facts are the other way around:!

We politicians are

deeply in debt to the citizens and to the working people. We have created a

climate in almost all small communities, in work organizations, where no kind

of/criticism any longer has a chance to make its way. We immediately work it

over, dislocate it, find some hostile angle in it, and then we push the person

even to the edge of survival. And that is how we arrived at the argument that

the laws are something binding on everything except politics, which is above

the law, since it is supermoral and superethical.

[/Question] We have not noticed that the (Presidium of the SAWPY has discussed

the campaign in a segment of the world press which has distorted the purport

of Branko Mikulic's last interview and all of Europe was for days reading in

/their newspapers that Yugoslavia was going \,q bring out the armed forces

(against its workers.

[Answer] We did not talk about that, but I see no reason why I should avoid

[giving you an answer to that question. One cannot help but note that all the

European "cradles of democracy" have no great reservations about resorting to

force whenever things don't go right in global and constitutionally guaranteed

commitments. This story about our resorting to force is probably a

consequence of a basically colonial attitude toward the Balkans—and toward

' "those people out there on the border with Asia" who have "always been

carrying out putsches." So probably the story about how Yugoslavia thinks of

resolving its domestic problems with the strength of the armed forces could

fall on fertile soil even with European intellectuals.

I will tell you something which I deeply believe and which cannot be

otherwise: There is not a single one of our conceptions, not even such a

fundamental conception of society as the system of nationwide defense and

social self-protection, that is Cither premised upon repression of our own

people or the workers, but rather everyone sees that citizen and worker as the

sole object of protection and, of course, as the protagonist of that

protection. The survival of Yugoslavia's fundamental values is bound up with

the value of that person and it does not stand above him. That is to say that

our point of departure is that the citizen will defend the values of his

society and his private life insofar as he holds those values dear. We do not

count on other motives of defense, and we are not entitled to. In that sense

any use of force on the domestic scene is a nonsensical "indictment," and so

this can explain why our media reacted so sensitively to the interpretation

that our armed forces would go into the streets to "suppress strikes" and

"chase dissenters."

[Question] Just two more questions about current affairs: In the last

meeting of the Presidium you finally "came out in favor" of nuclear power

plants. What is the meaning of the conclusion that you will seek information

from the FEC? Second, 3 months ago NIN sent an open letter to the Federal

Conference in which it proposed a sharp and radical reduction of socially

owned automobiles. What happened to that initiative? Has our question gone

stale?

[Answer] Nuclear power plants: We resolved to call upon the FEC to fully

inform the public about everything that has to do with carrying out the

62
program for construction of nuclear power plants. Just like the delegate of _

the Federation of Yugoslav Youth (which put that question in the name of young

people), and also we who "forwarded" it to the FEC were motivated by a desire

and objective need to remove all the veils of mystery and mystification from

this question. If we possess the information, only then will we be in a

position, each in his own way (the,last congress of the SSOJ, for example,

opted for a national referendum) to make a determination on this issue.

Calmly and reasonably, I hope, without unnecessary emotional charge and

exclusiveness, with full respect for the judgment of scientists and

professionals....

Socially owned automobiles and the proposal by NIN: At the May Meeting of the

Presidium of the SAWPY Federal Conference we will approve the text of the

letter replying to NIN. Do not expect me to answer "other people's letters,"

especially before the "person addressed" (the Presidium of the SAWPY Federal

Conference) has drafted a response.

[Box, pp 20-21]

A Front Without a Front

[Question] Yugoslavia has a population of 22 million, about 15 million of

which are members of the Socialist Alliance, while there are approximately 2

million members of the League of Communists. However, when you look at the j

forums of the Socialist Alliance, the situation seems to be the other way J

about: Here there are mostly members of the League of Communists, especially j

at the higher levels, and a negligible number of "others," i.e., of the

people, and these are mainly a few "progressive peasants" or "a priest who is

on our side." For years, not to say decades, the Socialist Alliance and the

party have sworn that they would change that ratio. Are you or your comrades

in the Presidium aware of how paradoxical this is?

[Answer] I do not know to what extent various officials are conscious of

this: some are not. Obviously: some people see this, but as if to say:

Why should I be the one to straighten out the crooked Drinaj and then there

are people who are not at all disturbed by the fact that we have a general

staff without an army, possibly with units attached to the staff, we in the

trade unions and young people.... Here is my explanation as to why that is

possible: We go about things in that way because it is possible, we do it

because that is easiest for us. In terms of formal law and on paper we drive

democracy to a level of perfection, we are able to send every decision through

all the forums and bodies to vote on, and why should we insert here any

"nonparty people," say, in the Yugoslav Assembly, in the republic assemblies,

in the federal government, or the republic or provincial governments, or the

Federal Conference of the SAWP?! After all, if we had those «people" in \-

"those places," then we would have to make explanations, we would have to

argue, we would have to fight for our views and to support them with

arguments. So the attitude is this: Stick with it as long as it works, and

when it can no longer be done that way—my meaning is that this is how some

people think—then we will change and carry out our commitments.

63
[Question] Fine, that is an explanation as to why it is so, but how did we

arrive at that? Do you have figures on how things stand with the

representation of non-Communists in other socialist countries in Europe, in

the front or in the parliaments?

[Answer] That is in fact what cannot be explained. After all, we are the

only socialist country in Europe which achieved its own liberation, the party

members headed that movement, but the entire people participated, we did not

have foreign tanks that brought us freedom. So where do we get this mistrust

of those same people? It is a fact that in our bodies of government,

especially above the opstina level, in all the delegate bodies, party members

comprise 90 percent or more, while in certain East European countries the

percentage of party members in parliament, in the government, or in regional

government authorities is no higher than 20. Of course, once again I do not

intend to be a slave to numbers. After all, I know that the masses not

belonging to the party and nonparty interests are not visibly emancipating

themselves in those countries on such a scale. Nevertheless, it is

interesting for the purpose of analysis.

This arithmetic of ours, along with many other things, is one reason why the

Socialist Alliance, which has such great authority and tasks assigned it in

the SFRY Constitution, has so little weight and influence with people: the

non-Communists look like favorites, observers, a cheering section....

7045

CSO: 2800/204

64
YUGOSLAVIA POLITICAL

OUTDATED ECONOMIC VIEWPOINTS RIDICULED

Belgrade NOVE OMLADINSKE NOVINE in Serbo-Croatian 26 Apr 87 p 3

[Commentary by Zoran Miljatovic? "Little Leftist Foxes"]

[Text] "...The direct satisfaction of the needs of the people is the fundamental aim of production, is what makes production socialist. Hence the concept of an autarchic centralistic planned economy, which is supposed to produce only what is necessary for the people; all exports, and imports, are a

loss. To establish such production to satisfy needs, a plan is necessary, and

planning involves superseding market arrangements for labor."

These are not the reflections of an orthodox economist from the East of the

time when Georgian tea was the favorite beverage. The quote is from a commentary on a paper recently delivered at Kumrovec as part of the preparations

for our own ideological plenum. The conference was organized under the

auspices of the LCY CC presidium, the paper under discussion was by Dzemal

Sokolovic of the Faculty of Political Science in Sarajevo, The critique by

the Economics Institute of Zagreb goes on to say that "such a comprehensive

totalitarian vision of society's economic arrangements is difficult to find

in literature with pretensions to seriousness, nor can it be called Stalinist, not even the most radical Stalinist theories went so far, especially not

Stalin himself." According to Sokolovic, socialist consumption must also be

guided by common needs and not individual needs. Modesty in the satisfaction

of needs must be a feature of such consumption. Such consumption requires a

new man, who will not only be unable to choose what and how much to consume

but must constantly and consciously aim at reducing personal consumption. And

so forth, and so forth.

Sokolovic was not isolated. One more introductory speaker, docent Dusan

Sabolovic of the Faculty of Economics in Zagreb, joined him. Aside from the

resignation of several participants at the conference, the majority did not

respond to these remarks.

The modern thesis of the "danger from the right," although no one has ventured

to define the "right" with precision, has evolved in recent months to the point

where the "right" is everything that is hostile—ultraleftist, ultrarightist,

more left, more right,.,. This very interesting play on words, transformed

into a "theory," may be more of a tip to Freudian psychotherapists than a

65
reflection on ideology or day-to-day politics. The fact remains that, in our

"encirclement by enemies," we have not been paying much attention to those "a

little more to the left," much less bringing them before the courts, least of

all naming and unmasking them. Reconciled with the idea that dogmatism is a

necessary transitional evil, an occasionally charming "firm-hand" limitation,

and that the battle ought to be waged on some other plane, we have apparently

been "hunting the wolf while the foxes are leading the circle dance," At the

invitations-only conference at Kumrovec( something of that came out into the

open but was then hushed up (largely successfully) by a combination of silence

and efforts to minimize what was said.

One thing is certain» someone acting in the name of the LCY CC presidium invited these economists to the conference, at which they in effected directed

the discussions. Documents from the conference, along with other discussions

conducted as part of the preparations for the ideological plenum, will be included in thickish books. Like it or not, everything is sort of official.

The 24-hour defenders of the system have not spoken out on this point. The

preservers of the purity of our children's consciousness have not risen to

protect the undefended against such lecturers. There is no uproar in the

press. We devote to this variety of a totalitarian vision of socialism only

a little astonishment and ridicule. At most. At worst'—quiet acquiescence.

Dogmatism is most difficult to defend rationally in economics, since simple

figures refute it. If dogmatism manifests itself today in economic thinking,

imagine what things must be like in other segments of social thinking and

action.

As far as the economy is concerned, the situation is similar. Why economic

laws are difficult to plant on our soil, despite so much advocacy, is unclear

to only a few naive or blind individuals

/9274

CSO. 2800/215

66
CZECHOSLOVAKIA ECONOMIC

FOREIGN TRADE ROLE IN ECONOMIC RESTRUCTURING DISCUSSED

Prague HOSPODARSKE NOVINY in Czech No 5, 1987 pp 1, 4

[Article by Eng Bohumil Urban, CSSR Minister of Foreign Trade: "Meeting World

Criteria of Efficiency and Quality: Foreign Trade in the Restructuring of the

Economic System"]

[Text] Every day in the international marketplace the overall economic

performance of the Czechoslovak economy is subjected to rigorous comparisons

and tests of its efficiency. Long-term developments have resulted in tougher'

competitive conditions abroad, which has forced us to look for rtew ways to

manage and increase the effectiveness of our participation in the international

division of labor. The evaluation performed at the 17th CPCZ Congress confirmed

that we must take steps to revamp our economic system as it relates to foreign

trade. The major objectives of these changes are contained in Principles for

Restructuring the Economic System of the CSSR, which has been approved by the

CPCZ Central Committee presidium and the Federal Government [the text is

included as a supplement to this issue of HOSPODARSKE NOVINY].

Restructuring our entire economy, including its foreign trade sector, is a long

range objective that will be fully implemented only during the Ninth 5-Year

Plan. To speed up the process and to test the feasibility of some of the

proposed changes, selected experiments will be conducted during the Eighth

5-Year Plan. This testing of proposed new elements of the economic system

will occur under the auspices of the Comprehensive Experiment in Increasing

the Independence and Responsibility of Economic Entities for Effective Development, a program that was formulated by the State Planning Commission.

Principles for the Improved Management and Organization of Foreign Trade was

developed based on the Experiment, and is the subject of this article.

b

Our economy is already open to the rest of the world to a significant extent,

and should become more open in the future. Nevertheless, standards of efficiency and quality that are normal oh world markets are not being transmitted to

our domestic economy to a sufficient degree by our economic system. This is

evident in several areas of comparison with industrially advanced countries.

Our rate of application of R&D findings to the product innovation cycle is too

low. We make inadequate use of international R&D cooperation, and do not take

füll advantage of opportunities for production cooperation and specialization.

We are too slow to change the structure of our economy, our gains in labor

productivity are too low, and our economy cannot react flexibly enough to

changes in external conditions'.

67
The result in a number of sectors has been a gradual weakening of the

competitive position of our economy in world markets and a consequent decline

in the efficiency of our foreign exchange. Changing this situation will

require the use of all the tools of economic policy (planning, pricing policy,

currency, exchange rate and hard currency policy, industrial and commercial

policy, incentive systems, etc.) and will require us to allow world standards

to exert a greater influence on our capital replacement process.

We naturally view the most important tasks to be the development of cooperation

with our partners in the socialist countries, with whom we conduct most of our

foreign trade. The new demands of socialist markets in recent years have

pointed to the need to improve,those economic mechanisms that have a direct

impact on increasing Czechoslovak participation in socialist economic integration (mainly by setting up direct ties between economic organizations), and

the development of production cooperation and specialization, primarily with

CEMA. member countries.

We must also proceed in developing links between production enterprises and

the foreign trade sector. When formulating our plans we must implement as

much as possible demanding efficiency criteria based on world standards of

labor productivity rather than our own. We must also adjust wholesale and

procurement prices in relation both to socially necessary costs and world

price levels, so that these prices better reflect world developments and the

efficiency of our exports.

This means that it will be necessary gradually to strengthen the independence

and authority of economic production units [VHJ] and firms, to increase their

accountability for improving managerial efficiency, for implementing the

findings of R&D, and for reacting more flexibly to changes in foreign conditions.

Simultaneously we wish to improve the actual commercial work of our foreign

trade organizations, improve their flexibility, and make better use of nontraditional forms of work in foreign markets.

Improving the economic system in all the above areas is of vital importance

and must take precedence both in terms of resource allocation and time to the

choice of appropriate organizational structures within which the improvements

will be implemented. Mere organizational changes that are not accompanied by

other supporting measures (especially pro-export programs) throughout the

economic system and in economic policy, cannot produce the desired results.

This has been clear from the results of ongoing experiments in the organizational association of the foreign trade and the production sectors.

A More Flexible System ,

The Federal Ministry of Foreign Trade [FMZO] has drafted measures to take effect

in 1987 which apply to the foreign trade operations of the entire economy

(including modified forms applying to those organizations participating in the

Experiment). The purpose of these measures is to create improved conditions for

68
meeting the Eighth 5-Year Plan targets in foreign trade, to improve the

efficiency of foreign trade relations, and to develop direct ties among

organizations.

To facilitate the development of direct relationships in international R&D and

cooperative production work with both socialist and nonsocialist partners,

production and other organizations have been given exclusive authority and

responsibility for developing such relationships. The only condition is that

organizations entering into a direct relationship may not make any commitments

that would conflict with long range Czechoslovak obligations stemming from

existing trade agreements, annual protocols, or other international negotiations.

Foreign trade organizations will support the establishment of these direct

relationships, participating at the request of research or production firms

as a facilitator, providing professional services and operational assistance.

The FMZO will evaluate the overall economic efficiency of these direct relationships and their impact on the growth rate and structure of trade relations,

especially related to socialist countries.

Analyses have shown that the current way of applying financial and economic

mechanisms to foreign trade, based as it is on a planned relationship between

domestic and foreign prices, does not react flexibly enough to common structural

changes (both in terms of goods and territories) in foreign trade. The current

technique also does not react flexibly enough to exchange rate and price

fluctuations, which cannot be predicted reliably when formulating annual plans.

The result is that many of these mechanisms act in a way that discourages

exports and inhibits needed changes in the structure of exports.

In the interest of more flexible decisionmaking that would better serve the

meeting of the export objectives of economic policy we have suggested retaining

the broad outlines of the current system, while allowing it to function much

more flexibly. Production sectors now have the authority to make necessary

adjustments among their constituent VHJ (and the VHJ among their subordinate

firms) as long as they comply with certain constraints regarding the product

mix designated for export and the planned financial relationship of the sector

to the state budget.

These changes have eliminated certain administrative procedures related to

exports that have been shown to be our least effective. These measures lose

their economic justification once the proposed financial and economic mechanisms

for foreign trade are implemented. Eliminating this paperwork, furthermore,

does not significantly change the conditions for making these export deliveries.

For exports which do not meet efficiency criteria, and especially sublimit

exports, production sectors must demand from their VHJ and enterprises (in

cooperation with foreign trade organizations) the development of programs that

will speed up increases in technicoeconomic sophistication, quality, and other

factors that influence export efficiency.

69
The current importing system is very administration-intensive, making it

impossible to take advantage of concentrated orders abroad, which would gain

us more favorable pricing and payment terms (along with lower administrative

requirements). This would in turn allow us to make more effective use of

imports to support commercial and political interests. Proposed systemic

changes, therefore, are focused on more effective procedures that will make

our importing system more realistic and flexible.

Hard currency incentives for production organizations and foreign trade

organizations [0Z0] to fulfill and exceed export targets and to improve export

efficiency are undoubtedly among the most important mechanisms for motivating

export suppliers to meet their targets for exports to nonsocialist countries,

while also permitting them to modernize and add to their export product lines.

New regulations governing these incentives were issued in 1986, based on the

principle of differentiated rates. The regulations have not been very effective in part because the rates are too low, meaning that they do not offer

sufficient incentives. We have therefore recommended an increase by a factor

of two in the existing rates. In contrast also to existing rates. In contrast

also to existing regulations we have proposed an increase by a factor of two

in hard currency incentives for the importing of turn key capital equipment.

Resources obtained in this way pan be used to modernize &nd update product

lines under established guidelines.

More Effective Organizational Structure

The Comprehensive Experiment provides for the implementation of measures

designed to improve the economic and in some cases organizational integration between production and foreign trade. This involves production firms

include within the Comprehensive Experiment and pertinent 0Z0.

These measures involve the implementation of principles and programs to

strengthen the economic independence and accountability of selected organizations for their long range economic performance, including their performance

in foreign trade.

We expect that these new measures will increase the adaptability of organizations to the changing requirements of domestic and foreign markets, including

unexpected fluctuations on world markets. They should speed up the production

of those products that can be sold effectively on foreign markets and facilitate changes in the organizational integration of production with domestic and

foreign trade.

In the area of planning, organizations participating in the Experiment will

receive new binding tasks (in conjunction with an appropriate 0Z0 for exports

and imports in foreign prices or in the form of a standard of hard currency

performance (which might include organizational responsibility for collected

funds).

70
Additional ways to integrate production with foreign trade will be explored

in the interest of improving the organizational structure of management. For

instance, participating organizations might be permitted to contract with a 0Z0

dealing in the requisite commodities for exporting its products as an agent;

or to develop, at pertinent foreign trade organizations, groups directly

dependent on organizational performance to export the products of organizations

involved in the Experiment; or to set up offices of foreign trade organizations

as separate entities on the premises of participating firms. These branch

offices could be involved in either imports or in exports.

The FMZO has developed several new programs for linking up production firms

with foreign trade organizations that are also based on the above principles.

In the engineering sector we have proposed placing all activities of the

Skodaexport 0Z0 under the management of the Plzen Skoda VHJ (the Federal Ministry of Metallurgy and Heavy Engineering).

It has also been decided to bring the Pragoinvest 0Z0 under the management of

the Prague Ceskomoravska Kolben-Danek VHJ with its existing commodity base

(with the exception of gas industry integration projects in the USSR, currently

being handled by the firm SIMEX, which will be placed under the management of

the Strojexport 0Z0). The Sigma VHJ will also be left its independence to

conduct foreign trade activities.

The following measures have been instituted under the Federal Ministry of

General Engineering: the existing agency relationship in the export öf passenger cars and tractors has been expanded to include the further division of

foreign trade activities among the Motokov 0Z0 and production firms (the Mlada

Boleslav Automobile Plants, national enterprise, and Agrozet), mainly in the

areas of commercial and technical services, service, deliveries of spare parts,

improving price cooperation, and cooperation in managing ownership positions

abroad.

To improve the integration between production and foreign trade in one

commodity the decision was made to transfer from the Strojexport 0Z0 to the

Martin Heavy Engineering Plants VHJ the exporting of construction and roadbuilding machines, fork lift vehicles and other products from the product line

of the Martin works. This means that the current authority of the Martin Works

to conduct foreign trade has been expanded to include the importing of special

purpose machines for its own use. The Strojexport organization will still

handle imports for other sectors.

In line with the policy of improving the links between production and foreign

trade, during 1987 an office of Strojimport will be set up to handle the

exporting of turnkey projects and equipment related to machine and forming

tools at the Prague Plants for Engineering Machinery. An office will also be

established at the Elitex VHJ to handle exports of turnkey projects and textile

machinery. Similar offices will also be set up under the Omnipol 0Z0 to

coordinate the exporting of aeronautical technology for the Aero VHJ, and

71
within the Omnia OZO for exporting machinery and equipment for the protection

of bearings at the Povazska Bystrica Anti-Friction Bearing Plants VHJ.

During 1987 we will be looking into the feasibility of systemic 'and economic

measures including different types of agency relationships, in an attempt to

expand our foreign trade in consumer durables through the Mercuria and the

Omnia OZO.

With regard to the Federal Ministry of the Electrotechnical Industry the Decision

was made to retain the current authority to engage in foreign trade activities,

and to expand authorization to include the entire product line of Stara Tura

Chirana VHJ and the Prague High Voltage Engineering VHJ. Responsibility for

exports and imports related to the components base for electronics and electronic subassemblies passed from the Kovo OZO to the Roznov Tesla VHJ. On

the other hand the agency relationship between Kovo and Brno Tesla will be

retained and expanded. These changes mean that the responsibility for exporting about 29 percent of engineering exports to socialist countries and 22 percent of these exports to nonsocialist countries will now be the responsibility

of production branches of the engineering sector.

A More Favorable Export Climate

The foregoing proposals for integrating foreign trade operations with production

under the Comprehensive Experiment will facilitate the assurance of the tasks

of the Eighth 5-Year Plan and help to create the conditions for speeding up the

growth rate of the national economy. We consider the main objective to be

improving the export incentives of the current economic system beginning in

1987 and to implement differentiated forms of economic and organizational

integration between engineering sector production and foreign trade operations.

This groundwork will make it possible to formulate priority programs for the

Ninth 5-Year Plan.

The Comprehensive Experiment assumes that appropriate forms of economic and

organizational links between foreign trade and production will also be tested

in nonengineering firms and VHJ.

The refinement and application of the principles of the Comprehensive Experiment

is drawing upon the positive experiences gained from the 1982-1985 experiment

in improving export efficiency at firms exporting lines of goods manufactured

primarily from domestic raw materials. This experiment involved mainly the

glass, costume jewelry, and porcelan industries.

One may also assume that organizations such as the Czechoslovak Musical Instrument VHJ, Bratislava Rempo, Prague Unicoop, Bratislava Unicoop, Prague Imex,

Intergeo, Czechoslovak Filmexport, Czechoslovak Television, etc. will retain

their authorization to engage in foreign trade. A new authorization to engage

in foreign trade has been granted to the Prague Supraphon VHJ (under the

Ministry of Culture of the CSR). This permission covers only records, with

this item being taken away from the line of the artia foreign trade organization.

72
In the agro-food complex our objective will be to adjust the position of the

Koospol 0Z0 in a way that will allow this organization to satisfy completely,

within the context of exchange and cooperative programs, its export and import

requirements as an independent, self-managing entity. A further objective is

for this organization to organize cooperation among firms of the agro-food

complex and firms engaged in foreign trade in order to develop export resources

and assure imports of necessities and services, including the procurement of

licenses to help develop the food and agriculture sector.

Multilateral Commercial Activity

With more direct relationships to be established, more and more VHJ will be

turning to the services of Transakta. The Federal Ministry of Foreign Trade

is creating within the Transakta foreign trade organization a capability for

providing flexible services to all interested parties (mainly smaller organizations) concerning exports, imports, cooperation, introducing new products, etc.

We are aware that even in the commercial work involved in foreign trade we must

be seeking constantly new techniques and work methods. We are reminded frequently

that in foreign trade today there is no substitute for trading practices that

have not been traditional with us. We have therefore proposed the establishment

of trading companies as part of the proposed changes. Specifically, the FMZO

will establish a small trading organization staffed with highly qualified

professionals whose mission will be the organization, coordination and execution of trading operations, (primarily parallel trade, imports linked to

exports, profitable and reprocessing operations, working on issues related to

imports from third world countries, collections, etc.) according to the

requirements of the foreign trade and production sectors.

To achieve the desired quality, flexibility and responsiveness in cooperation

between 0Z0 and production firms (from information flows through the execution

of joint pro-export programs) about 40 0Z0 branch offices will be set up in

engineering sector production firms, with another 40 or so to be established at

nonengineering production organizations.

More Effective Conceptual Management

The complicated and contradictory evolution of external politico-economic

conditions and their impact on our economy requires that our participation in

the international division of labor be conceptualized and managed effectively.

This is further necessitated by the fact that the initiative and responsibility

required of the khozraschot sphere will be increasing with regard to implementing foreign economic relations, including direct relationships, and the further

fact that, within the context of the existing conceptual experiment there will

be increasing variability in the types of potential relationships between

production and other organizations domestically and in foreign markets.

For these primary reasons we must maintain and improve the operational quality

of the state foreign trade monopoly as operated through the FMZO, in effective

73
cooperation with coordinating agencies of the state sector. This will involve

mainly the conceptualizing and execution of a unified national foreign trade

and commercial policy for the CSSR in relation to individual countries and groups

of countries, and international economic organizations, and the management of

the basic proportions (scope, goods and territorial structure) of trading to

meet the needs of our national economy. We will also be making increased use

of appropriate tools of planned management, economic regulations and mechanisms,

rational efficiency criteria and incentive systems to implement these programs.

Central agencies will continue to monitor the formation of external and internal

conditions for developing progressive forms of international economic cooperation (R&D cooperation, production specialization and cooperation, joint ventures

and direct relationships), the development of trade in services, and the utilization of nontraditional commercial techniques.

One of the main objectives of the central management of foreign trade remains

the assurance of unity of conduct by all Czechoslovak economic entities in

relation to their trading partners, especially in the execution of pricing

policy and in the area of commercial work. This is a matter of promoting the

interests of the entire national economy and of preventing undesirable mutual

competition, as well as the establishment of conditions for conducting the

foreign commercial activities of all economic entities on the basis Of legal

permits issued by the CSSR FMZO (without regard for the sector to which an

entity belongs), and controlling compliance with these laws.

We are also aware that improving export competitiveness and efficiency by

our processing industries and engineering sector will depend on achieving a

substantial increase in the growth rate of the technico-economic sophistication

and quality of our products. This in turn depends on a number of other important

factors, and not by a long shot only on making some organizational changes

related to the relationship between production and foreign trade. Economic

measures, including new economic forms for the integration of production with

foreign trade, are of particular importance for increasing the impact of foreign

market conditions on our own domestic capital replacement process.

We will not make any significant progress in meeting the demanding tasks

related to structural changes and the effectiveness of our participation in the

international division of labor without a considered, yet systematic improvement

in our economic system, in the organization of our foreign trade, and in our

actual commercial activities. Moreover, this is the only path open to us if we

are to realize our overall strategy of speeding up the socioeconomic development

of our economy.

9276/12851

CSO: 2400/179

74
CZECHOSLOVAKIA ECONOMIC

CRYSTALEX DEVELOPING DETAILS OF ECONOMIC EXPERIMENT

Prague RUDE PRAVO in Czech 24 Feb 87 p 1

[Article by Eva Sadilkova and Zdenek Hoffmann: "According to the New Rules"]

[Text] Novy Bor (from our correspondents)—"The rules for applying the comprehensive experiment in increasing independence and responsibility in

economic organizations for effective development was already approved on

9 February. This completed the center's role and now everything depends on

us." These are the words with which the general director of the Novy Bor

Crystalex plant, Eng Frantisek Arnost, opened a council of enterprise and

plant directors of that VHJ (economic production unit) on Wednesday,

18 February.

"We still have to take care of only the specific establishing of norms and

concluding contracts with the Skloexport foreign trade enterprise and the

State Bank. But this is not stopping us from going on to the next stage in

applying the experiment, which is describing the tasks for the enterprises

and plants. We plan on completing this work by the middle of March and

by the end of that month we must have ready the specific rules of application

in the individual enterprises and plants and then the most demanding task

awaits us: introduction of the principles of the experiment into the basic

accounting centers, the operations, workshops, and separate work areas."

Not Just Higher Authority

The Crystalex economic production unit, its enterprises and plants, together

with the Jablonec costume jewelry factory are the first to begin working in

accordance with the rules of the experiment. Other VHJs will gradually join

in so that they too will take much better care than so far of the quality of

the goods manufactured, their rapid turnover and innovations, so that they

will not produce for the warehouse, but will put out only products in which

customers at home and abroad have great interest. In addition to these important duties, the experiment brings increased authority and greater independence,

but also responsibility for economic development.

It is certainly not a simple task in any way to implement the new rules in

practice and to begin working in accordance with them. In Crystalex they

know that writing out the principles in full down to the last khozraschet

75
unit completes the period of preparations and the experiment is taking off at

full speed. According to the preliminary estimates, this should be 1 July of

this year.

At first glance, this time frame seems a long way off, but considering the

extent of the preparations for application of the new system it is not

possible to shorten the schedule. "We have to get everyone thinking in

terms of the experiment," stated comrade Arnost. "It is necessary for them

to understand its substance, the new tasks and duties, and the priorities

as well which are connected with the new management. Only thus is it ^

possible to ensure the contributions which we all are expecting from it.

Everything Cannot Come From Above

"Already now, during the preparations," as comrade Arnost further emphasized

at the directors' meeting, "it is necessary to put an end to the passivity

which earlier was routine. Everything cannot come from above. We need

initiative without orders and directives. Anyone who waits is making a mistake. You plant directors who do not have analyses of the long-term development and an analysis of exceptional influences on management results will have

considerable problems in further application of the principles of the experiment in your assigned sectors."

Export to socialist and nonsocialist countries in freight prepaid prices,

profit, and the status of supplies in relation to output are designated as

important indicators for the evaluation of plants. But what interests the

majority of the employees is obviously the value set on their work, the level

of wages. According to the rules of the experiment, this will depend during

work mainly on the results of each khozraschet unit. Higher evaluation is

possible even when the VHJ as a whole can figure on only a 3.2 percent growth

in wages, including the increase in employees who are finishing trade training

schools. The entire planned growth in average monthly wages will, so to

speak, depend on savings in labor and effective utilization of the workplaces .

"It is possible that some of you are thinking, 'Where can we find any more

untapped resources for more effective work'", comrade Arnost said, among other

things, at the directors' conference. "There are opportunities everywhere

and we also have them. For example, in more effective utilization of overtime or otherwise in gradually reducing it by better work organization, smooth

movement of material, etc. It is necessary to make better use of the services

of the service units which will be billed to each center and will reduce its

economic results."

At the end of the meeting the general director emphasized that now, much more

than in the previous period, it will depend on the specific management work

of the people who occupy the supervisory positions in the individual

khozraschet units. It will also be seen whether they are up to the work,

which will be substantially more demanding. "When the plant is losing money

and the earnings are lower, it could happen that the employees chase them,

and that of course includes each one of us sitting here, out of the job.

76
Is Everyone Up To It?

So far the supervisory employees enjoy the full trust of their people. Vaclav

Stepanek, glassworking foreman from plant 02 Novy Bor, confirmed this for us.

"We believe that we can all handle the experiment. We expect a lot out of it.

For example, more room for creative work. We are interested in manufacturing

only such glass goods as will sell well and for which there will always be a

great demand. As far as it is possible, we want to produce still more

effectively, so there will be more resources left over for us to set up

housewares or so that we can save in auxiliary labor and achieve greater

productivity of labor arid thus higher earnings as well."

There are not fears about applying the experiment on the part of the chief

of the combined production centers, Rudolf Kriesche, either, who is

responsible for one of the basic khozraschet units with more than 100

employees. He has been working in the glassworks for 38 years now. In

response to the question of what to expect from the experiment, he answered,

"Mainly a change in people's thinking and their approach to the work, frugal

handling of the glass, s vings, and increasing the quality of the work. This

is the basis for success and repeat orders from abroad depend on it, which

save us expenses in preparation and actual production. Earlier, claims and

penalties for not meeting schedules cost the entire enterprise. Now they

show up mainly in the management of the khozraschet unit which is guilty.

The consequences are felt mainly by those who are directly responsible.

And, in my opinion, that is proper. It can happen that problems also arise

in applying the rules of the experiment. It depends solely on us as to

how we handle them and whether we solve them rapidly, on the run, so to say,

so that this affair, from which we expect a lot, is successful. So that it

brings benefits to us, but mainly to the entire national economy."

6285/9716

CSO: 2400/164

77
GERMAN DEMOCRATIC REPUBLIC ECONOMIC

BRIEFS

VACCINES FOR MADAGASCAR«r~A relief shipment containing measle vaccine put to»-

gether by the Solidarity Committee and the GDR's UNICEF National Committee,

was handed to representatives of the Health Ministry of Madagascar in

Antananarivo on 14 May, The shipment, which was finanoed from donations of

the GDR population, is sufficient for the Immunization of 10,000 children.

It supports a vaccination drive which is now being carried out in Madagascar

together with the UN Children's Fund (UNICEF), [Text] [East Berlin NEUES

DEUTSCHLAND in German 16/17 May 87 p 5 AU] /9274

CSOJ 2300/286

78
HUNGARY ECONOMIC

PUBLIC'S VIEWS ON BENEFITS, POVERTY, UNEMPLOYMENT REPORTED

Budapest FIGYELO in Hungarian 16 Apr 87 pp 1-4

[Article: "Who Should Receive Subsidized Vacation?"]

[Text] The dilemma facing the official in charge of union-sponsored recreation is like a model of our social problems: who should receive the vouchers

that entitle the bearer to reduced-rate vacations? Those who perform well on

the job, or those who perform a lot of social work and make their mark in

public life? Or those who by virtue of their financial and social situation

are in particular need for reduced rates, such as large families, or small

families with a single head of household? Low income families, or the

disadvantaged, regardless of reason? So then, who should receive reducedrate vacation vouchers? Everyone should receive it. And the abundance of

eligibility criteria makes a socially just distribution of the vouchers simply

impossible. The dilemma of the official in charge of recreation is one of the

fundamental, so far unresolved problems of our social policies. How does the

citizenry view this situation—how does public opinion assess these matters?

On two occasions the Mass-Communication Research Institute [TK] surveyed the

public's view of social service deliveries, ranging from nurseries to

pensions. The surveys were conducted in 1982 and 1984. A recently published

voluminous work by Robert Angelusz, Lajos Nagy and Robert Tardos contains the

survey results. Heretofore, attention paid to this subject was less than what

it should have been, and hopefully, since the actual survey took place, the

institutional system and practice related to our social policies has been

scheduled for renewal. Thus the volume's significance.

Reverting to the dilemma exemplified in the introduction: already in 1982 the

population sample felt that social services should be provided primarily to

the poor and to those living under adverse conditions. But the number of

respondents who felt that good work performance also merits this kind of

assistance was barely smaller than the number of those in the first category.

79
(Note: in theory, from the viewpoint of social service assistance,the best

workers cannot belong to the disadvantaged group. I repeat: in theory

only--if our compension and related incentive systems at the workplaces would

function as they should ...)

A glance at earlier research data reveals that from the viewpoint of allocating social services, need played an increasing role, while the role of

work-related merit had a diminishing significance. The causes of this changed

outlook may be sought in immediate, personal experiences, and may be related

to the appearence of the more or less publicly acknowledged problem cluster

called domestic poverty. What was hardly noticeable in the seventies became a

recognized fact in the early eighties: poverty does exist in Hungary. This

fact is acknowledged and recognized more readily, more unequivocally primarily

by the intelligentsia, and by those who enjoy good living standards. It is

recognized to a lesser extent by those living under adverse conditions with

low levels of educational accomplishments. (The latter group refrains from

dealing with the issue of poverty not only because of the meaning of that term

in the traditional context, but also because of the term's ideological

implication. And let us add here: perhaps also because of a sense of pride

... j

But the researchers kept insisting: if poverty exists nevertheless, what are

the causes of poverty? The responses were highly characteristic of the

respective periods in which the questions were asked. In the early and mid

80's there was a general view by which poverty could be decisively attributed

to personal reasons (e.g. alcoholism, vagrancy, wasteful consumption,

criminal lifestyle). But compared to earlier surveys, already in 1984 a

significant number of respondents felt that poverty may be traced not only to

personal characteristics, but also to causes of a societal scope. (And behind

this shift in public opinion one may discover the problems of the unskilled

and the uneducated, of those who reside in economically and otherwise backward

settlements, of families with a large number of dependents, and even of those

disadvantaged by virtue of family origins.) We should repeat: although

motives of a societal scope have appeared, a large part of public opinion

continues to relate poverty to deviations from the perceived societal norm.

Correspondingly, by the mid 80's, a majority felt that while the poor and

those living under adverse conditions ought to be helped by governmental

social policies, those who deserve support by virtue of their work and conduct

at the workplace should also be helped. A more detailed analysis of the

research data demonstrates that it is mostly the inactive individuals, and

among active individuals the young, skilled physical workers who stress the

need for the allocation of social benefits according to work accomplishments,

rather than on the basis of need. In other words, recalling the example

described at the outset, it is the best of the workers, and as such, in theory

the best paid workers who should be the primary beneficiaries of reduced-rate

recreational vouchers, rather than those who cannot afford recreation and

relaxation without such vouchers.

80
Minimum Pension

There is yet a third group within the larger context of who and for what

reason should be supported by social services. Those belonging to this group

claim that no one should be supported for any reason, because—and they quote

the findings of the TK researchers—"everyone should be able to succeed

according to his abilities and his diligence". And quite interestingly,

paralleling a decline in the standard of living and a reduction in real wages,

this group has increased, even if not significantly. In 1982, 12 percent of

the respondents belonged to this group. In 1984 this group constituted 14

percent of the respondents.

Having viewed the overall picture, let us examine some areas of social policy

and the related public opinion characteristic.

The pension issue does not affect most people, nevertheless it is one of the

most charged issues. This is so because disparity between pensions on the one

hand, and the increasing rate of inflation on the other is the greatest, and

because the living conditions of a large majority of retired persons is

unquestionably deteriorating as compared to those of any other social

stratum. This deterioration has assumed such proportions that the pension

issue became a focal point of public concern. Citizens simply cannot

understand why pensions do not assure minimum levels of subsistence to a

significant part of this stratum, even though a pension is a well-deserved

reward for a life's active work, and has been paid for in advance by

everyone. And this fact called society's attention—suspicious attention—not

only to retired persons, but also to all the problems of the aged. How should

one assess the worth of social policies, and as part of these, the worth of

the social security institution? And no matter for what reason, by now these

policies are forced to acknowledge the legitimate concerns of retirees,

nevertheless appear to be impotent to provide relief. Just as they are

impotent regarding the social problem of the aged who had been cast into some

of the most difficult life situations ...

Almost half of the survey respondents now feels—and one wonders: could they

be wrong?—that retirees "barely make out with their pensions", while previous

prevailing opinion held that a majority of retirees lives under acceptable

conditions. Why this change in view? Well, because during the early eighties

for example, a majority of the respondents felt that the minimum pension

should be 2380 forints. Two years later the minimum amount viewed as adequate

was 2870 forints, and just how could have pensions increased by 500 forints

during those two years? We should also state—and this is not negligible

either--that the 20 percent increase in pensions deemed by public opinion to

be the necessary minimum can be correlated not only to the price indexes of

those two years, but also to the estimated increase in minimum family

subsistence levels. Public opinion holds that between 1982 and 1984 the

so-called minimum family subsistence level--the amount of money on which a

family can "barely make ends meet"—has risen by 13 percent, from 5340 forints

to 6040 forints. (As a matter of personal opinion suffice it to say that this

calculation appears to be extremely cautious and very optimistic, even if one

considers prices and wages of three years ago ...)

81
Preserving the purchasing power of pensions has been an increasingly difficult

problem for years. Lack of progress in this respect is being sensed, known

and verified by the citizenry. In 1982 almost half of those polled deemed the

situation of retirees as "very difficult", while two years later more than 70

percent felt that way. It should be emphasized that most respondents were

within the active working age group.

All this suggests that a large majority of the population feels that retirees

constitute the most important target group for social policies. (Once again a

personal note: could it be, perhaps, that some self-interest may be discovered

in the shaping of public opinion? We should not believe for a moment that

freeing ourselves from aging family members and relatives is a general trend

in our society. It is untrue that those of active age do everything in their

power to get rid of their parents. Who would not benefit greatly from the

presence of a retired grandmother or grandfather in today's rapid pace of

life, even if that pace was accepted only by virtue of necessity. Well, but

living in one large family—if a large family can at all coexist in the

pre-fabricated boxes of residential developments which we are told are modern

and comfortable-it does make a difference if the retired family members

contribute to, or alternatively, strongly diminish and consume the family

income. And this is so only because most pensions are insufficient to provide

for the retirees' own subsistence.)

The conduct manifested by the former workplaces of today's retirees could make

a significant difference. Aside from a few exceptions, retired life is

monotonous. But it could be made colorful if, for instance, former employers

would offer off-season recreation to their former employees. An apparently

insignificant gesture—but at least it would be a gesture ...

How Much Supplement To What Kinds Of Families?

A different subject: family supplements. More than half of the respondents

felt that the costs of upbrining a child should be paid for "primarily by the

parents, and to a lesser extent by society also". One-fifth of the respondents says that most of these expenses should be covered by the parents, but

the number of those who settle with a 50-50 family/state share of contributions toward the upbringing of a child is also significant. The latter

opinion is characteristic regarding families with several children, nevertheless the same group also expressed the traditional perception that stresses

the exclusive responsibility of parents.

In spite of this polarization in opinion, the essence is that almost 70

percent of the respondents felt that family supplements should cover a larger

share of the costs of child upbringing. And again there emerges a dilemma in

the context of social policies: who should receive larger family supplements?

Those who have many children? Single parents who bring up their child? Or

everyone, who receives family supplement as of today, including families with

one child only? Generalized views hold that those living under the most

difficult conditions--i.e. families with many children and single parentsshould receive larger family supplements than what they receive at present.

It is interesting to note that almost half of the respondents who have one

82
child—a disproportionately large percentage as compared to the rest of the

survey population—justified the idea that those living under difficult

conditions should receive higher family supplements.

The TK's latest public opinion search regarding social policies took into

consideration job placement difficulties as well as possible unemployment.

Forty-two percent of those questioned—mainly young people at the beginning of

their careers--responded by sayind that "there are people in Hungary who have

difficulty finding a job". This view assumes a diminishing significance as

the age of respondents increases. It was the intelligentsia, and to a far

lesser extent the physical workers who recognized job placement as a problem.

Job Placement Difficulties

The researchers also wanted to find out the context in which job placement

difficulties are being envisioned by various individuals. Most respondents

mentioned the lack of appropriate workplaces. The term "appropriate" should

be understood as a workplace in the immediate proximity of the respondents'

residence. And only somewhat fewer respondents felt that only the vagrants,

the wanderers, and those who avoid work were faced with job problems. A large

majority does not recognize job placement as a problem even at the start of

careers.

There are more clouds on the future horizon, however. Fifty-four percent of

the respondents stated that one must count on facing job placement problems.

The Budapest intelligentsia holds a more relaxed view in this respect—it is

those who live and work outside of Budapest who count on substantially

increasing job placement difficulties.

And this issue leads to the assessment of the possibility of unemployment.

Forty percent of the respondents firmly stated that in the coming years there

will be short-term and long-term unemployment. Once again the vagrants were

recognized as the high risk group, but already in 1984 there emerged two

important motives: the liquidation of enterprises and related dismissals, and

reductions in workforce.

Not even three years have passed since a small-circulation periodical

distributed among a tight group of professionals first called attention to the

possibility of unemployment and detailed the related counter-active measures.

The study evoked confused silence. At that point in time in Hungary we were

simply unable to handle even the idea of unemployment. Public opinion at

large may still be characterized by that confusion. As one of our earlier

writings indicates, employment offices are incapable of maintaining accurate

records of available manpower because surprisingly, so many do not admit to

that office their being unemployed. (Persistence, pride? ...)

Ashamed About Unemployment

All this is worth mentioning only because the TK researchers discovered a

similar phenomenon, one that may be viewed only through an analysis of

semantics. A majority of the respondents does not consider as unemployed

those who become unemployed by virtue of the liquidation of their enterprise,

83
those who have been dismissed from their workplace and are unable to find a

job, those embarking on a career, and those who are unable to find a position

commensurate with their qualifications. Similarly, public opinion does not

consider a housewife as unemployed, one who would like to find a job but

cannot find one. As an aside we may mention that official terminology does

not recognize the terms "unemployed" or "unemployment" either. Instead they

are talking about "people who are finding new jobs" and those who "anticipate

to find jobs" ...

In this context the researchers queried the respondents as follows: "suppose a

workplace is being closed down and the workers are out of jobs. How should we

provide for these workers?" Most respondents said that they should be assured

of an appropriate job elsewhere. Only a very few held the view that those

affected should have a job secured already prior to the closing down of the

workplace, and even fewer believed that unemployment compensation and

retraining were solutions, and alternatively, that securing a new job should

be the individual concern of each affected person.

In the statistical allocation of responses the uniformly rigid rejection of

unemployment compensation and of re-training is most remarkable.

After drawing a sketch of the various aspects of social policy and of related

public views, the researchers attempted to isolate various thought-processes

that characterize public opinion. There are some who may be classified as

restrictive types. These are the most stringent ones, because in emphasizing

the prevalence of accomplishments they find little excuse for the sanctioning

of social assistance to even the narrowest group of indigents. In contrast to

this group there are those willing to level on the basis of societal considerations even if to the detriment of the principle of achievements. The other

two opposing types are the traditional "paternalists" who believe that one

should help those who deserve it. The "welfare" types also stand on grounds

of achievement principles, these, however would not argue the need for the

delivery of social assistance to social strata which are in the active period

of their lives yet found themselves disadvantaged. It is perhaps interesting

that respondents with higher educational qualifications who enjoy favorable

financial conditions could be classified as "restrictive" or as "welfare"

types. Those having less favorable financial conditions were either "paternal ists" or "levelers".

In other words, doing justice that pleases everyone, i.e. following a rational

practice of social policies, would be difficult even if the social service

delivery system would be made to function in a more unified, less sporadic and

more consistent manner. The fact that the needs and recommendations expressed

through the survey will not be abided by social policy-makers raises concern.

But before beginning to worry about the seemingly hopeless uncertainties of

policy-makers, we should realize that they too know that the above described

views of social policy are the residual remnants of a practice that was hasty,

and even in our days is overly forced, one that disregards the rationale of

economics. And this is one reason why renewal, the reform of social policies,

including institutional reform cannot wait much longer.

12995

CSO: 2500/316

84
HUNGARY ECONOMIC

PRIVATE ENTERPRISE PROBLEMS DESCRIBED, TERMS DEFINED

Budapest FIGYELO in Hungarian 16 Apr 87 p 6

[Article by Maria Demcsak: "Equal Conditions ixr Competition"]

[Text] Official policy statements continually confirm the need for private

enterprise, yet mutual distrust between entrepreneurs and economic management

has not decreased. As a matter of fact it appears to have gained strength

these days. The private sector feels that it has been cheated. The positive

stance taken at high levels assumes a contrary meaning at lower levels of

implementation. Tax and social security burdens continue to increase year

after year, and the unfavorable special tax that has a discriminatory character is higher than ever.

Countless official forums and documents have dealt with the fact that managerial disturbances relative to the private sector stem largely from ideological

confusion, and in part from human envy disguised as ideology. Neither the

existance of a private sector, nor the role of enterprise in a socialist

economy is clear-cut. (This confusion was reflected in the broadly based

Fall, 1986 debate on the pages of FIGYELO.)

In light of economic and legal regulatory gaps and contradictions, the

impatience and sensitivity of small enterprises is understandable. We are at

the threshold of tax reform which is bound to produce great changes in the

financial condition of small enterprises. This, in turn will influence the

choice of organizational forms.

What should be their guidepost? What can small enterprises count on in the

future?

An excellent opportunity presented itself last week for raising these questions and receiving answers. A three-day conference billed as "The Role of

Small Enterprises and Undertakings in a Modern Economy" was jointly sponsored

by the Scientific Association for the Machine Industry [GTE], the Scientific

Society for Organization and Management [SZVT] and the Small Business Section

of the Hungarian Chamber of Commerce. University department chairman professor dr Tamas Sarkozi addressed the controversial issues that attend the legal

85
framework of small enterprises, and related urgent tasks. At the outset dr

Sarkozi clarified what may and what may not be viewed as an enterprise.

Economic work collectives [GMK], partnerships and civil law associations

[PJT], small cooperatives, as well as the state-owned small enterprises are

independent, truly small enterprises. State-owned small enterprises operate

like small cooperatives. The traditional small tradesman, small merchant,

enterprise workers' business partnerships [VGMK], specialized groups and

contractual operations are treated differently. One must clearly separate

from small enterprises the autonomous infra-groups, because those are not

truly enterprises. (This, however, does not mean that such groups must be

abolished.) Regarding specialized groups linked to cooperatives the aim is to

strengthen their features of association.

The most problematic aspect of present regulations is the total misunderstanding of the status of certain private sector organizations as legal persons,

according to Sarkozi. The socialist sector today cannot be distinguished from

the private sector in their respective contexts of being legal persons. A

legal person is no more than an organization viewed separate from its

members. Recognition of GMK-s as legal persons would unavoidably call for

capital accumulation that cannot be distributed among members, and this would

hardly be favored by GMK members.

The purpose of economic policy is to integrate the private sector into the

economy. This purpose is being fully contradicted by prevailing practice,

since there are no forms of association which would enable the linking of the

state sector with the private sector. Domestic small enterprises cannot

establish loose relationships with foreigners. The institution of unlimited

and universal liability simply places an obstacle in the way of capital

investment. Small enterprises should be given an opportunity to accept

limited risk, and to establish organizational forms that limit their liability.

Present rules prohibit the formation of limited partnerships. A limited

partnership is no more than an organizational form in which general partners

are liable to the extent of the entire capital investment, while limited

partners are liable to the extent of their share of capital investment. This

amounts to no more than a recognition, a sanctioning of the silent partner

relationship. , Such recognition and sanctioning of course, would acknowledge

the right to secure income without work, which would then require the development of an appropriate control and taxation mechanism.

To bridge the problem that stems from the misunderstood concept of the legal

person, GMK's should be permitted to become part of limited liability companies or of stock corporations. Ten to twelve flexible forms of association

would permit the modern, monetary regulation of small enterprises.

This was not the first conference in which new forms of association were

discussed, of course. Dr Sarkozi was confident regarding the preparatory

stages of the new legal provisions. One fact must be recognized clearly,

however: the independent, individual regulation of small enterprises cannot

become a reality without a comprehensive modernization of economic management.

12995

CSO: 2500/316

86
HUNGARY ECONOMIC

SMALL VENTURE OPERATIONS DISCUSSED

AU231103 Budapest NEPSZABADSAG in Hungarian 10 Apr 87 p 5

[Interview with Peter Simsa, chairman of the small venture department of the

Hungarian Chamber of Commerce, by Kätalin Bossanyi» "Being in Competiton"—

date and place not given]

[Excerpts] "The Role of Small Companies and Ventures in a Modern Economy" is

the title of a 3-day conference that began yesterday [9 April] in Budapest at

the headquarters of The Trade Union of Workers in Agriculture and Forestry,

where almost 300 small entrepreneurs, the representatives of research institutes and interested people from large enterprises are present. The conference has been organized by the Academic Federation of Engineering, the Hungarian Chamber of Commerce, and the Academic Society of Organization and Management,

The number of the various small ventures—companies with civil rights, business partnerships, enterprise workers' business partnerships, specialized

groups, and small cooperatives—increased to more than 41,000. The rate of

increase was 11 percent, while the rate of terminating business operations

was 6-8 percent. According to the data given by the Supervisory Main Department of the Ministry of Finance, the net income of small cooperatives went

up from 20;2 billion forints to 64.6 billion forints, and the final balance

went up from 3,5 billion to 7.8 billion. The net, that is taxed, income of

other small ventures that are not independent legal persons increased by 4,6

percent. This was in addition to a 12,7 percent average increase in price

income per entity. For analysis purposes, one has to take into account that

in the same period taxation increased by an average of 8 percent.

[Bossanyi] Desite the good results you have had at the Vertikum Small Cooperative, of which you are also the chairman, you are feeling somewhat low

economically. How far does this condition apply to small ventures generally?

[Simsa] Unfortunately, this feeling can be considered a general one. By now

most of the small entrepreneurs have become somewhat insecure, This is not so

much the result of stricter economic regulators and constantly increasing tax

burdens since these could be acceptable if their effect were consistent.

Rather, it is the result of these measures being discriminatory. One of the

best examples of this is the extra tax, which has been disadvantageous to the

87
great majority, This tax was supposed to curtail enterprise workers'

partnerships, but other small cooperatives were hit by it without differentiation. At the same time, disregarding the principle of neutrality in competition, this tax did not affect private tradesmen, retailers, and agricultural

cooperatives. As a result of this and other measures, small entrepreneurs feel

their existence endangered. More precisely, contrary to declared principles,

they do not feel they are necessary for society and the economy.

[Bossanyi] How often are businesses subject to financial control?

[Simsa] At the beginning of small ventures, there was an unwritten agreement with the tax authority that, in order to help development, less control

would be carried out in the first 1^1 and 1/2 hear. However, this was not

kept, In addition to tax controllers, there have been regular checks by the

price office or the local council, and frequent checks have also been done by

the people's controllers, I consider these steps to show a lack of economic

and social tolerance and an action of impatience toward the development of

various economic processes,

[Bossanyi] These checks and disagreements are mainly due to the fact that

businesses are assumed to have an astronical income. What is the truth here?

And in any case, whar are entrepreneurs spending their money on?

[Simsa] I again refer to the documents of the Ministry of Finance: Last

year the average untaxed incomes of small ventures ranged between 3,500 and

93,000 forints. If you look at the business outputs, I would not even say the

top level was "astronical." Especially because taxes progress very fast

above a certain level. This is the main reason, and not the entrepreneurial

willingness, that small ventures switch over to short-term interests and invest only part of their income in their businesses.

In my view, if the economic policy wants to increase competition in the

future and to increase the number of market forces, then it must create a

real neutrality in competition, and do this in addition to formulating tax

rates according to the operational sizes of ventures.

[Bossanyi] When in competition chances are similar, this also requires an organizational neutrality. It seems, however, that from the viewpoint of entrepreneurs, the present organizational structure is rather under strain,

[Simsa] Indeed, if you look carefully at an organizational structure consisting of seven steps and apply it to private tradesmen and large enterprises

alike, then this system would justify the establishment of a new organizational

category. This category would be similar to i limited companies and general

partnerships and would be located between group ventures and small cooperatives.

This category would eliminate the shortcomings of the present organizational

system, which at the moment still hinders private persons entering into joint

ventures with legal persons, Although it would be precisely in these communities where innovation pools could be created as R&D organizations around

large enterprises, which could become the basis for a more efficient technological development, With a more sensible labor distribution.

/9274

CSOJ 2500/357 88
HUNGARY ECONOMIC

CONFERENCE ON SMALL VENTURES DISCUSSED IN ARTICLE

AU221418 Budapest MAGYAR HIRLAP in Hungarian 13 Apr 87 p 5

[Article by Ilona Kocsi: "Are They Still Poor Relations? A 3-Day Conference

on Small Ventures,-They Are Not Supplementary and Secondary"]

[Text] "The future of small ventures depends on the direction in which the

continuation of the reform is continued. We have to decide whether we want a

modern economy, If we do, small-scale organizations will play a considerable

role in such an economy. What is it that gives capital its nature, where does

property cease to be socialist and become capitalist?"—these and similar conclusions and questions were voiced at the 3-day conference on small ventures

held last weekend. The atmosphere at the conference was rather high-pitched,

but that was because many people felt that their existence as small entrepreneurs was threatened as a result of the ever increasing taxes....

Small ventures are*the poor relations of the Hungarian economy—one of the

speakers said. The "parents" accept their existence, but they often mistreat

them and very rarely pet or pamper them. The countervalue tax [ellenertekado]

that was imposed only on certain forms was mentioned most frequently as an

example of the above-mentioned mistreatment, and all speakers called this

discrimination. On top of this, ever since this tax was imposed, its size

has been repeatedly increased. There is some hope in the fact that, according

to the news, this type of tax will cease as of 1988.

Do small-scale economic organizations have a future? The uninitiated would

believe this to be a useless question, since practice and the experience have

given a clear, positive answer to this question in the Hungarian economy, too.

There has been a sudden increase in this economic sphere since 1982 and there

is no other area of the economy with such spectacular development and clear

success. According to some estimates, today half-a-million people are active

in the second economy, and if we also count family members we can even talk

about 1.5 million people. It is also true that a lot of criticism is also

directed against these organizations. The financial or legal authorities often

claim irregularities and sometimes even crime in the activity of these organizations, and economic politicians [gazdasagpolitikusok] complain that entrepreneurs do not behave as real entrepreneurs should, that they do not invest

capital in the venture, and that they want to get rich in the shortest possible

89
time. ' But the majority of these accusations are also true of the state sector. Is this what makes the future insecure?

Yes, this does, too; but the causes hidden behind the explicit declarations

also contribute to this feeling. Why are small ventures still called the

second or ancillary economy when many people work here as their main job and

risk their property? And they are not working here to supplement their income

through a second job. The old names prove that an old concept continues to

exist, although progress would definitely require another approach. Many

people claimed—among them Tamas Sarkozy, professor at the Karl Marx Economic

Science university—that the strict separation of forms of property is an

unnecessary hindering factor, A uniform economy could be created precisely

if possibilities arose for private ventures and state enterprises to establish

joint ventures, or even joint firms. Why could an enterprise workers' business

partnership not be transformed into an association with limited responsibility? Legal regulations do not allow this at present, However, greater investments are needed in order to make ventures become real ventures. But unlimited

and corporate responsibility represents a disproportionally high degree of

risk, a risk that goes beyond rational limit, "This is a primitive means of

credit protection that hinders capital investment. The Hungarian economy needs

solutions that limit risk and responsibility,"

Of course, the possibilities open to capital investments are not clear-cut

either. If one joins a small venture as a member and also invests money in

the venture, then this is a praiseworthy decision. If, however, one does not

actually join a small venture but remains only a "silent partner," that is,

one lends money for interest or financial returns, then this is already a punishable act. Therefore, many people take up alibi work, for example cleaning,

just to avoid being punished by those who strictly control legality. Does a

small entrepreneur exploit people? In his lecture, university lecturer Peter

Szirmai brought up extremely sensitive questions, signaling by this that it

would be the task of ideologists to provide theoretically well-founded answers

to the questions put by practice. If an entrepreneur participates in production

himself, then he is not an exploiter, and if he only directs production, then is

he an exploiter? What number of employees lead to this dilemma? And what if

the members of a small venture are not employees but partners? Is there no

exploitation then? How many pigs make capitalism? Three, six, sixty? There

is some kind of background somewhere, because regulations limit the number of

employees or, for example, the number of beds in a small hotel. Is it possible

to exploit a little and a lot? But if employees are exploited, then why do

they want so much to join the workers' business partnership? Why do they not

go into the socialist sector?

The extreme but suggestive questions and examples aimed to illustrate that

small entrepreneurs were craving for a clear-cut position and clear-cut regulations. They would go into ventures and would also invest money, but they

fear that they will cross the invisible boundary where they will be called

capitalists. And then they had better limit their activity and their desire to

grow.

90
Of course, and this was also mentioned by many people at the conference, the

small ventures' choices are really determined by the large ventures. If

venture and risk continue to be mentioned mainly in connection with the private sector, there will hardly be chances for further development. If the

major part of the economy is ruled by traditional organizations that are unable

to become flexible, it is impossible to maintain a small island on the long

term, an island characterized precisely by flexibility and a readiness for

ventures. As a rule, the larger ventures strangle the smaller ones. If small

ventures operate only beside large-scale organizations and the mobility and

possibilities of the two spheres are strictly delimited, all this cannot be

a good, lasting solution. The same scope for maneuver should be given to large

and small ventures, because they are part of the same economy.

The protection of interests still has not been ensured—someone mentioned—

and this would be important, mainly because through this the private ventures

would be able to better integrate themselves into the economy. After all,

these small firms can be as socialist as the big ones, since they operate

within the same economic milieu. It is a pity to force them to the periphery

of the economy. Contrary to all the preliminary forecasts, mass production

did not force small-scale production and special professional skills out of

the market in the developed industrial countries either. Smaller but very

modern economic units are able to operate efficiently there. It is not by

accident that the large firms surround themselves with hundreds of small

ventures. Without this, quick and flexible reactions and efficient production

are inconceivable there, Why would things be different in Hungary?

As for the future, not everyone at the conference was pessimistic. Janos

Palotas, co«-chairman of the Hungarian Chamber of Commerce, for example,

firmly declared the following? "The future of small ventures is economically

and politically guaranteed. Although I myself do not see how, this Is still

an economic policy necessity." Or let us quote Anna Szakacs, head of a

department at the Finance Ministry, who said that small ventures might review

a new impetus with the introduction of the tax reform next year. The strict

separation between the private sector and the socialist sector will cease

because--although with some special differences—the same regulations will

apply everywhere,

/9274

CSO? 2500/357

91
HUNGARY ECONOMIC

STATE FARM, AGRI-COOP WORKERS1EARNING SINCE 1980 COMPARED

Budapest MAGYAR MEZOGAZDASAG in Hungarian 4 Mar 87 p 3

[Article by Gyimesi and Kecskes: "Wages and Earnings"]

[Text] In the Sixth Five-Year-Plan, the efficiency of enterprise management,

the possibilities provided by the regulatory system, and the labor supply of

the farms worked jointly in determining the wages and earnings. The

increasingly stringent economic regulators, the tax burdens on the

enterprises, the increasing production costs, the decreased supply to the

labor force, the tightening of money supplies to be used for enterprise

development were not to the advantage of enterprisal interests in wage and

earnings management.

Although the new earnings regulations, in effect since 1 Jan 1985, offered the

possibility of a choice to agricultural enterprises, nevertheless, the

desirable harmony among production, size management of the labor force and

earnings did not fully materialize. While the outflow of wages and earnings—

similarly to the other economic sectors—increased beyond the projected rate,

production and the enterprisal yields derived from it (the sum reduced by the

taxes on the profit) were below expectations. However, there was a balance

between the specific production indices calculated at current rates and

nominal earnings.

Increasing Differences

Among the two principal large-scale economic groups in agriculture, the volume

of wages and income between 1981 and 1985, on the average, underwent a more

moderate increase in the agricultural cooperatives (5.1 and 6.5 percent,

respectively) than in the state farms and combines where the volume of wages

increased by 6.8 percent and of the incomes by 7.3 percent.

The increase in wages and incomes in the agricultural enterprises was

accompanied by increases in taxes paid in proportion to the wages and budgeted

as expenses, on the one hand, and by the increased tax burdens on the realized

profit, the increased taxes associated with income regulation, on the other

hand. The income regulation taxes (combined sum of the wage development

92
payment, production cost and share tax, and the progressive profit tax)

increased from 112 million to 460 million in the state farms and from 250 to

2,033 million in the agricultural cooperatives during the five years.

The social security contribution, budgeted as expense, increased from 1.1

billion to 3.0 billion forints in the state farms and from 3.8 to 10.5 billion

forints in the agricultural cooperatives between 1980 and 1985.

The average wages and average incomes of workers in their main occupation also

show smaller or larger variations and scatter among enterprise groups, fields

of activity and counties. This stems not only from existing differences in

production level and technical-technological equipment but also from the ratio

of principal activities within the agricultural enterprises, the correct or

incorrect selection of the newly introduced income regulation options and the

elaboration of work force management and structure.

Among workers in the two forms of enterprise, the existing differences in

average wages and average incomes were more moderate in the early 1980s,

nearly half of the 1985 figures. In the state farms and combines, the average

monthly wage was 484 forints higher while the average monthly income was 515

forints higher than in the agricultural cooperatives, in 1985.

The specific amount of non-wage payments (shares)—computed per 100 forints in

wages—increased by 50 percent in the state farms and, more modestly, by

barely 20 percent in the agricultural cooperatives during the time period

under study. For the two enterprise groups, this index still remains larger in

the cooperatives but the 1.34 forints difference, paid per 100 forints in

wages in 1980, was reduced to merely 21 fillers by 1985.

The difference between the average wage and income conditions of blue collar

and white collar workers underwent a gradual increase from 1980 on, in favor

of the white collar workers. Among the physical laborers employed in

agricultural enterprises, there are fewer better qualified and, consequently,

higher paid workers than in other branches of the economy. In both enterprise

forms, physical laborers received about 70 percent of the income of white

collar workers.

White Collar and Blue Collar Work

In the two enterprise groups, there were greater differences between the

income of white and blue collar workers in the state farms and combines in

spite of the fact that the agricultural cooperatives have a lower ratio of

skilled workers among their physical laborers. In the latter, hardly more than

one-third of the physical laborers are skilled in contrast to the 44 percent

ratio of skilled physical workers employed on state farms.

The average monthly earnings data of the white collar workers according to

their position reflects the differences among the individual levels of

management and staff positions. The earnings of managers primarily responsible

for the success of enterprisal management increased significantly more than of

middle and lower level managers. During the period under study, the income of

people in higher leading positions increased from 7,818 forints to 13,313

93
forints (70 percent) in the state farms and combines and from 6,908 forints to

11,057 forints (60 percent) in the agricultural cooperatives. The earnings of

middle-level managers are about two-thirds of the earnings of high level

managers. This difference can be explained by the steadily increasing amount

of bonuses which can be given to those in leading positions since the wage

differences used to be much smaller.

The increase in the earnings of the administrative and managerial staff of

agricultural cooperatives occurred approximately at the same rate as for chief

managers. In state farms and combines, however, the increase in the earnings

of this level of workers fell below, by about 7 percent, that of the chief

managers.

The wage and earning conditions of the members and employees of agricultural

cooperatives underwent a peculiar change. During the 1970s, compared with that

of the members, employee earnings were characteristically higher. The

difference amounted to as much as 10 to 15 percent. Since 1980, the earnings

of employees increased more moderately and, as a result, the process that

characterized earlier times was reversed. Already by 1985, the active members

were earning more, by about 10 percent..

In the state farms, combines and in the agriculutural cooperatives—within and

also among the enterprises—there was an increased differentiation in earnings

—and, within them, also in bonuses dependent on productivity. The difference

between individual earnings increased year by year. The spread is especially

wide in the agricultural cooperatives where, derived from the different

natural endowments and productions structures of the enterprises, there are

also great differences in the level of management quality.

In the agricultural cooperatives, the difference between the highest and

lowest annual earnings was nearly 72,000 forints; it was somewhat more

moderate at the state farms and in the combines.

Labor Force Structure Conforming to Natural Endowments

Wage expenditures and the uniform share basis, introduced since 1985, are the

primary financial sources of increases in earnings. It has greatly promoted

the independence of enterprises in the utilization of their financial

resources and funds. However, at quite a few agricultural enterprises,

independence led to certain funds (for example amortization funds) being used

for other than the designated purposes. These were used to increase their

workers' earnings, in some cases to finance the income tax, thereby declining

even a minimal chance for development and modernization. At the same time, the

enterprises were encouraged last year to tie the payment of wages and earnings

to their achievements by the tightening of income regulation options.

In the first year of the Seventh Five-Year-Plan period, compared with 1985,

there was a further decrease in the number of people employed by both

enterprisal forms and a moderation in the amount of wage and income outflow.

Based on preliminary data, at state farms, there was an average increase of

wages by 6 and earnings by 6.5 to 7 percent. The same data are a few tenths of

a percent higher for agricultural cooperative enterprises. It may be expected

94
that the differences in income among the individual forms of enterprises will

become more moderate in the subsequent years of the plan period; within a

given enterprise, however, the spread of worker incomes may be further

widened. The income regulation option chosen thoughtfully as the most

appropriate one, given the characteristics of an enterprise, and a labor force

structure that conforms to the enterprise profile are the primary conditions

for effective production by the enterprise.

2473

CSO: 2500/332

95
HUNGARY ECONOMIC

FASTER DEVELOPMENT OF AGRICULTURAL PRODUCTION DISCUSSED

Budapest PARTELET in Hungarian No 2, Feb 87 pp 70-75

[Article by Gabor Magyar, deputy minister of the Ministry of Agriculture and

Food Industry]

[Text] The food industry fulfilled its Sixth Five-Year-Plan in spite of the

fact that the ecological and economic conditions of production turned out less

favorable than expected. Thanks to the fulfillment of the plan, the

population's food supply was insured and the export sector contributed

somewhat more than planned to the increase in foreign currency income. It is

true that, because of a decrease in prices, this was only possible by

increasing the quantity of exports. The sector increased its contribution to

the national income primarily through increased and more effective production.

In spite of fulfilling the goals of the Sixth Five-Year-Plan period, problems

and tensions have also arisen in some areas of the food economy. The increase

in production and improved effectiveness in the large agricultural enterprises

was not accompanied by increased income. During the past five years, the

prices of industrial materials and equipment, used in agriculture, increased

by 32 percent while the prices of agricultural products increased by only 22

percent, resulting in a decreased profitability of their production. The total

of the various subsidies was not increased while, at the same time, the budget

payments of agriculture were doubled. In the final analysis, the incremental

increase in income produced by the enterprises was diverted.

The gradual decrease in profitability made the fate of certain sectors, and

the narrowing of investment resources their development, questionable. In some

of the enterprises, the replacement of used equipment fell behind primarily in

the area of basic activities while, in animal raising, the "liquidate it"

approach became prevalent. As a consequence, already by 1985 there was a

decrease in animal stocks and animal goods production. Our situation was also

made more grave by the fact that industrial production, which earlier had

undergone a dynamic development and had supplied a decisive part of increased

profits, was also slowed down at the agricultural enterprises.

In addition to the tight economic environment, the problems were also

increased by the drought which had affected agricultural production for four

consecutive years. During the earlier years, it was mainly the middle of the

96
Great Plains that was affected while last year—although to a different

extent—the drought was extended to include also the Transdanubian and

Northern parts of the country. Drought damage afflicted mainly crops but the

consequentially higher price of fodder also increased the costs of animal

raising.

The years of drought and difficult agricultural conditions also had an

unfavorable effect on the actions and approaches by the chief managers in

agriculture. The relatively young but already highly experienced specialists

found it difficult to endure the sudden halt in the formerly dynamic progress,

the lack of success caused by the momentary decline. The discouragement was

fundamentally manifested in the slackening of technological discipline.

Because of the drought that has afflicted agricultural production for four

years straight, the world market situation that has become more unfavorable

year by year, and the increasingly difficult economic conditions, the question

arose in many minds whether the food economy will be able to fulfill the goals

of the Seventh Five-Year-Plan which was given statutory force based on the

resolution of the XIII. Party Congress. In more refined wording, the question

is whether agricultural production can be put back on the track of the Seventh

Five-Year-Plan. The answer is an unequivocal yes, however, its realization

requires great effort.

Thus the Seventh Five-Year-Plan for agriculture and the food industry started

from a rather unfavorable base. There was a timely recognition of the

undesirable trends by the government and certain counter measures were taken

through the framing of regulations. In the interest of relieving tension and

accomplishing the yearly goals of the plan, considerable incentive measures

were taken in certain areas. In order to improve the profitability of the

cattle sector, the producers are receiving milk-price support. In the swine

sector, the large scale and small scale purchase price was raised. To raise

interest in the production of broiler chicken, a periodic surcharge was

introduced. In order to counteract the cost increases, the purchase price of

coleseed and spice paprika was raised and, in corn production, a tax benefit

based on crop acreage served to enhance production incentives for the

enterprises.

In response to the incentive measures, a positive balance characterized the

relationship of the sector to the budget, for the first time since 1979.

Measures were taken to improve the situation of poorly endowed enterprises, to

promote the industrial supply activity of agricultural enterprises and also to

activate developments.

In response to last year's regulatory modifications—in spite of less

favorable weather than expected—agricultural production has moved away

somewhat from its 1985 low point. Although the gross production value of the

agricultural sector is behind the planned value for 1986, nevertheless, it

will be higher than the year before. During the past year, supplementary

activity advanced faster than basic activity although it did not reach the

planned level as yet.

97
With the exception of rice and sunflower, every crop was damaged by the

prolonged drought, most extensively the grain crops. Production losses are

significantly lower for corn while rice and sunflower benefited outright from

the warm, sunny weather. Vegetables sustained moderate damage. Grape and fruit

crops were damaged mainly by the early spring frosts.

In animal raising, it was possible last year, in part, to halt or to slow the

decline in stocks that began in 1985. Nevertheless, the unfavorable trend

continues in certain sectors. For example, in cattle raising, the decrease in

total cattle and cow stocks was slowed compared with last year—milk

production is expected to meet demands while meat cattle production will

certainly continue to decline. Compared with the year 1985, there was a

significant increase in swine stocks and there was also a dynamic increase in

fowl production. During the first half of last year, there was a thorough

review of sheep raising and subsequently measures were taken although their

favorable effect cannot be felt as yet.

In organizing this year's production, we must endeavor to provide the

conditions for achieving the mandates of the Seventh Five-Yeat-Plan period. We

can achieve this only by a circumspect definition of the work to be done, in

tune with economic demands, and by laying a realistic foundation for the goals

of sector development. The demands from agrarian production remain unchanged:

the food supply of the population should be uninterrupted; international

obligations should be fulfilled; the possibilities of the convertible market

should be exploited; quality factors in a broad sense should result in an

improved income producing capacity.

In 1987, the agricultural sector must achieve a 4.5 to 5.5 percent production

increase. In plant growing a more forceful, in animal raising a more modest

growth is needed. The enterprises must develop their complementary activities

at a more rapid rate than last year. In the food industry, production increase

must be projected sector by sector, adjusted to basic material production and

in tune with demand. In both sectors, we count on a net production that

exceeds last year's gross production.

In plant cultivation, the advancement of grain production continues to be a

special production policy task, to produce the 15 to 16 million tons of grain.

Consequently, the area seeded with corn must be increased by 30 to 40 thousand

hectares, compared with the area harvested last year, in order the achieve a

50 to 60 percent ratio between the amount of bread grain and corn production.

Sunflower is the third largest crop area where we count on a cultivation area

and average yield that correspond to last year's. In sugar beet cultivation,

the supply of domestic demand is the goal. A decrease in the cultivation area

of fibrous and mass fodders, and an increase in their level of production is

expected.

With respect to horticultural products, fresh vegetables, in addition to

satisfying domestic and export demands, the needs of the processing industry

must be more extensively supplied this year. Large enterprises, which are

better suited for mechanization, should cultivate primarily the basic products

for the canning industry while small growers should cultivate vegetables which

require more extensive manual labor and smaller areas.

98
In the grape growing and viticulture sector, the goal is to maintain last

year's production level. When planting grapes, the large enterprises should

strive for quality improvement because this is the only possible basis for

increasing the average yield and marketing security. The grape growing and

wine enterprises should initiate the development of marketable products and

changes in product structure. They should pay more attention to the making of

lower alcohol content and alcohol-free products.

In fruit cultivation, accomplishment of the planting spelled out in the medium

range plan and modification of the unfavorable variant structure which evolved

in previous years is the task. The long range requirements of the domestic

market and the processing industry are about 1.6 to 1.7 million tons of total

product including a more favorable ratio of apple types. For species with high

manual labor requirement—hard kernel fruits and berries--the increased

integration of small enterprises should be encouraged.

In animal raising, the plan projects an increase in dairy production and a

moderation of the decline in meat cattle raising. Correspondingly, the cattle

stock will undergo a small increase while a more dynamic growth is desirable

in the high-meat-content breeding stock. In swine raising, we expect a

continuation of the favorable process that began last year and the goal is a

noticeable increase in meat-swine production. The growth in the breeding stock

and improvement of its quality is also promoted by placing 80 to 100 thousand

pregnant sows into small enterprises. In fowl raising—in view of the

projected domestic and foreign market demands—we plan a continued dynamic

production increase although more moderate than last year. In the sheep

sector, as a result of the measures taken, we expect a turn-about in growth

with respect to both quantity and quality.

In the interest of fulfilling the goals of the current year, several

professional and economic measures have been and will be taken in order to

provide for the material and technical-biological production requirements as

well as for increased enterprisal and personal incentives.

Fortunately, the production of the biological foundations required for plant

cultivation—species, hybrids, seeds--was not impaired by the drought and,

consequently, they are available in sufficient amounts and in good quality to

the enterprises. The demands can be fully satisfied with the exception of a

few of the most recent variants.

For the increased production tasks, through socialist and World Bank

acquisitions currently in progress, the machine procurement funds for

enterprises will be more favorable than last year, making it possible to

satisfy their needs in a more differentiated manner. Agricultural enterprises

which do not have enough money will be allowed, through a governmental

decision, to rent machines valued at 350 million forints from the Agroker

enterprises. ' '

The first of the World Bank programs, the intensive grain production program,

was completed, and was accomplished at a rapid rate, last year; the plant

cultivation development program, encompassing the development of several

99
sectors, was started this year; it provides the possibility for advancing the

mechanization and technical-technological level of various field and vegetable

crops, melioration, and liquid chemical fertilization.

The chemical fertilizer use of the enterprises was stagnant in 1986 and,

according to the calculations, the utilization of chemical fertilizers,

measured in terms of the active ingredients, was about 400 thousand tons below

the planned amount. In addition to the drought, the deleterious practices of

soil restitution, which evolved mainly because of financial constraints, are

also responsible for last year's crop yields having fallen below planned

levels. For crop production to be returned onto the track of the Seventh FiveYear-Plan, one of the essential requirements is the management of nutritives

as well as a moderate rate of advancement in melioration. Where the conditions

are satisfactory, the enterprises combine irrigation and rice planting as well

as modernization with the melioration. This year, by expanding irrigation,

production security must be provided at a higher level than before. In this

context, the initiative by the KITE [Corn and Industrial Crop Growing

Cooperation] of Nadudvar, involving irrigated corn growing, can be considered

very promising.

In order to improve the profitability of crop and vegetable growing, primarily

we did not increase the state purchase prices but rather we lowered the price

of chemical fertilizers, one of the most important means for production

increase, on the average by 11 percent. The same goal is served by the support

provided for lime application and melioration investments. An incentive for

expanding the storage area is provided by lowering the stock-piling tax in the

case of chemical fertilizer and grain storage construction. The measure

whereby the per hectare tax allowance was increased from 800 to 1,000 forints

is aimed at increasing the area seeded with corn. Enterprises which plant the

promoted variants of apple are also receiving state support.

In animal raising, the 1986 modifications in regulations proved to be

sufficient merely to halt the unfavorable processes but not to cause a

production upswing. Therefore, this year's measures of an economic type—

raising the price of milk, meat cattle, fattened swine, meat chicken and wool,

state support for investments in machine equipment and for the development and

modernization of animal raising establishments—serve to improve the

profitability of production, to provide for greater initiatives in

development, primarily in technological modernization, to provide financial

recognition for the work done under unfavorable conditions by laborers on

animal farms, and furthermore, to improve the production situation on

household plots and in subsidiary establishments. This year's measures of an

economic type and regulation modifications were published at the end of July

last year in order to give the agricultural establishments time for

preparations.

From 1 January of the current year—in view of the unfavorable labor

conditions—workers employed in the cattle, swine and sheep raising, and

fishery sectors can be given a workplace bonus by the enterprises. The bonus

serves as a better financial recognition for physical laborers who work

unusual shifts and for managers directly supervising their work as well as for

the relaxation of wage tensions appearing at these workplaces.

100
The measures taken in the interest of greater profitability in animal raising

are also an incentive to small producers for raising animals. Raising the

price of animals and animal products—because of their large proportion in

small-scale production—is increasing their incomes more than the average.

Their willingness to raise animals is certainly also helped by the fact that

the limit on the tax free sale of animals is to increase from the current 150

thousand forints to 300 thousand forints.

From last year's central regulations, the authorities expected that the

enterprises will develop greater momentum in the advancement of production.

The situation, also confirmed by some of the above data, shows that this did

not occur in every desired area and the income producing capacity increased in

only some of the enterprises. This also indicates that the majority of the

enterprises are having financial problems. Even the number of those

enterprises is decreasing which had been steadily among the leaders of the

pack in earlier years while many among tl^ average managers can not even

simply reproduce their results.

The more recent central measures certainly serve the further resurgence of

production but their favorable effect will be notably felt only 2 to 3 years

from now. Naturally, the economic situation, management circumstances and

physical endowments of the enterpises are greatly varied. It follows that

overcoming the difficulties and leaving behind the problems as soon as

possible cannot be conceived without a critical evaluation of the situation of

the enterprises and a targeted definition of the tasks. The authorities kept

their material resources and the interests of the economy in mind when

developing the conditions for management of the enterprises, but it is mainly

up to the local managers how they exploit them. It is true that not all

enterprises have enough money to buy a sufficient amount of fertilizer, obtain

machines and start with some larger construction projects but the amount of

money to be spent on production development—in view of the central measures—

is not reduced but is increasing. This increasing sum should be spent

everywhere on what provides the fastest and highest returns.

The level of agriculture in our country can even today be safely compared with

that in many capitalist countries. It is a mistaken belief to conclude from

the decrease in agricultural production over the past two to three years that

there is no need to increase agricultural production. Such and similar

utterances were unequivocally answered at the November session of the Central

Committee where it was recommended that the 1987 agricultural production be

increased by 4.5 to 5.5 percent and, in subsequent years, the development

projected in the Seventh Five-Year-rPlan was deemed desirable. These were

looked upon as goals in spite of the difficulties with marketing abroad. It

cannot be debated that, hearing and reading about the difficulties involving

agricultural product export^, when it comes to developing the enterprises, the

managers of many agricultural enterprises look at the characteristics of

foreign markets as they decide how much to produce from the individual goods,

which branches to develop more forcefully, etc. It is correct to take into

account foreign market demands, but this should be done not with respect to

the amount of production but in the interest of better marketing, that is,

improving quality and expanding the selection of goods.

101
It is true that the enterprises had marketing problems for certain of their

goods in previous years but, in more recent years, the government contributed

much toward improved security of production. It spent large sums on the

development and expansion of processing enterprises as well as storage and

cooling capacities. The purchase of the products of both large scale and

household enterprises is contractually assured and, therefore, production

increases projected in their plans are in their interest.

In past years, there were problems with the maintenance of the balance in our

economy—also for the agricultural enterprises mainly because of the decrease

in their resources for development. There was a decrease in the income

producing capacity of the agricultural and food industrial enterprises, and

the production of certain goods declined. But is it not an indication of the

vitality of the large agricultural ehterpises that, in spite of the many

problems, the income level of their members and employees was protected? This

is a great accomplishment even if there was a slight decrease in the communal

wealth of a few enterprises. Thus it is not by chance that the mood and well

being of the agricultural and food-industrial workers is satisfactory. This is

advantageous from the aspect of fulfillment of the annual goals because our

economy can count on the workers in agriculture and the food industry. It must

also be emphasized, however, that in certain enterprises the situation is

untenable where the level and effectiveness of production are not increasing

while the incomes are. It may well be that it is unpopular to mention this in

front of the enterprises' workers but it must not be ignored.

The enterprise and workshop managers, and members of the party organization

should let their voices be heard and they should strive to inspire, in their

enterprises, a mood ready for action whereby the majority of the workers would

respond with conviction to the greater demands. In addition to persuasion,

several other tools are available to the enterprise managers for inspiring

more disciplined and effective work habits. They should apply more boldly the

proven method of material incentive and call to account more courageously the

sloppy workers who shortchange the community. The employment and application

of advanced technology cannot be open to debate. This does not belong within

the purview of democracy at the workplace. They should appoint at the head of

the worker collectives foremen who do not allow undisciplined behavior and

T'equire putting in the stated hours of work as well as intensive effort.

The decision by the government to improve the economic conditions of

management and to provide a material-technical basis for production,

furthermore, the ordinances by the ministry, are improving the production

conditions at agricultural enterprises in the interest of providing a

foundation for achieving this year's economic plans and fulfilling the FiveYear-Plan; but the enterprises must take advantage of these possibilities

mainly in the interest of their members and workers.

2473

CSO: .2500/335

102
HUNGARY '.' ECONOMIC

USEFUL BACTERIA IN ANIMAL FODDER TO FIGHT E-COLI

Budapest MAGYAR MEZOGAZDASAG in Hungarian 11 Mar 87 p 18

[Article by Jozsef Pethes: "Pro- Instead of Antibiotics"]

[Text] A new initiative was reported recently by the scientists, manufacturers

and field experts at a conference held at the Monor State Farm. A bacterium,

Streptococcus faecium, was the central subject of the lectures. We could

already have heard and read about the use of this microorganism in fodder,

mainly from foreign sources. ,

In Hungary, the "career" of the bacterium started only in 1983 when a joint

Swedish-Hungarian enterprise was formed with the participation of the Monor

State Farm, the Grain Trust, Medimpex and the Swedish firm, Medipharm. One of

the important goals was the biological preservation of fibrous and mass

fodders, activities which are documented by products such as Silaferm,

Monosil, Monosil plus and Monomays. These preservatives contain only

biological materials such as bacteria, enzymes and vitamins, perhaps also

carbohydrates. Nearly all products contain the lactic acid bacterium called

Streptococcus faecium which occurs in every animal species.

This microorganism decomposes carbohydrates into lactic acid and in turn the

stomach pH is lowered. The low pH is not advantageous to an infectious,

dangerous bacterium, Escherichia coli. Regrettably, most diseases and losses

among young animals are caused by E. coli, prevention being the only defense.

One method is to introduce S. faecium into the organism because this lactic

acid bacterium reproduces faster than does E. coli.

According to statistical data, 1.6 to 3.9 million piglets succumb annually in

our country. These are enormously high numbers! What causes these losses?

Developmental anomalies, lack of milk, lowered viability, traumas and, in 35

percent of the cases, gastroenteritis, edema and ehterotoxemia caused by E.

coli. These diseases can be prevented mainly with feeding methods, by

administering antibiotics with the feed.

The feeding of antibiotics has long been a controversial subject because the

health of people is at stake. There are an increasing number of people in

Western Europe who do not want to consume food products containing drug

residues or chemical compounds. Stores selling health food products free of

103
drug residues are mushrooming; there is one already even in Budapest. An

increasing number of countries restrict or oppose the feeding of antibiotics

because this is what the market already demands. Japan, for example, by next

year will prohibit the purchase of animals treated with antibiotics. Since

Taiwan is significantly affected, it had contacted the Swedish Medipharm firm

and they formed a mixed joint enterprise.

Is it possible that, sooner or later, the Hungarian firms and agricultural

enterprises will also be forced by the market to use antibiotic-free fodder?

At any rate, the Monor State Farm already took the first step toward feeding

methods which protect the health of both animals and man. The bacterium

producing plant was built in 1983 and its capacity has increased by 50 percent

since then. The preparations containing S. faecium are manufactured at the

grain industry's concentrate factory, in Kecskemet, fortunately in amounts

increasing year by year. In addition to preventing the diseases caused by E.

coli, these also further the growth of young animals and result in improved

fodder utilization.

The Lactostarter piglet feed supplement is popular, 80 percent of it being

used by household plot farmers. It is thought-provoking why its spread is less

rapid among the large agricultural enterprises. Perhaps because most of them

are pledged to some production system whose food supplements they buy. At any

rate, the Agricultural Combine of Boly, after several years of observations

and experiences, has switched to the Lactostarter feed supplement for piglets.

Streptococcus faecium is the ingredient in Monospray which can be used to

protect 2 to 3 day old piglets while Pigefermet can be fed up to an age of 100

days. Bovifermet is recommended for calves, also up to 100 days old.

Hopefully, the Monor conference will be followed by action since we are still

at the very beginning of the use of probiotics. Technical equipment is needed

for its production, new feeding technologies must be developed and it would

also be good to listen to the practical experiences of several enterprises.

Namely, there was no discussion involving the cost of these preparations and

whether their use is in the interest of the agricultural enterprises.

2473

CSO: 2500/332

. 104
HUNGARY ECONOMIC

PATENT TO TREAT MYCOSIS OF RUMINANTS DOMESTICALLY, IN WEST

Budapest MAGYAR MEZOGAZDASAG in Hungarian 11 Feb 87 p.15

[Article by Drs Pal Sutka and Zoltan Tresser: "Combating Fungus Infection of

Ruminants"]

[Text] Fungus diseases occupy an increasingly important place among the animal

health problems of large-scale animal raising enterprises. Next to the

diseases caused by the toxins of fungi, the greatest problem is presented by

mycoses (inflammations caused by fungi) involving the internal organs. Their

pathogenesis is less understood, their diagnosis is rather difficult and they

cause significant losses in large-industrial animal raising. This is

especially true of diseases caused by members of the Candida family, belonging

to the order of yeasts.

Candidosis, a disease caused by Candida quilliermondii and afflicting entire

stocks, was first observed in ruminants in 1959. Its pathogenetic abilities

were demonstrated earlier in individual cases of cattle abortions and

inflammations involving the womb or the udder. In 1968, Dr Pal Sutka was the

first to isolate the Candida quilliermondii fungus from the organs of breeding

bulls examined in Hungary because of spermatogenetic disturbances. At the

time, in the course of pathogenetic screening for infectious-type diseases, 59

bulls from 4 artificial insemination stations were examined and, among the 59,

Candida quilliermondii strains were isolated from the organs of 35 breeding

bulls sorted out for slaughter. In the afflicted breeding bull stocks, the

principal effect of the disease was irreversible disturbances in

spermatogenesis and, because of the thwarted breeding plans as a result of the

rejected breeding bulls, it caused significant losses.

Done with the permission of the Ministry of Agriculture and Food Industry, the

results of screening tests involving 5 enterprises in 2 counties revealed

that, among the 211 cows selected for elimination because of abortion,

infertility, persistent oestrus, agalactia and inflammation of the udder, 45

percent were infected with the Candida quilliermondii fungus. Among the cows

found to test positive by the screening, the random mycological and

histological tests, performed after disposal by slaughter, confirmed these

results.

105
Based on the tests and on literature data, it can be stated that ruminants and

man are the most susceptible to the infection produced by Candida

quilliermondii. The candidosis of cattle and sheep is caused mainly by the

Ingestion of mass fodders infected with the fungus. A destruction and

elimination from feeding of fodder found to be infected on the basis of

laboratory tests on mass-fodder, and occasionally on grain fodder, has been

unattainable to this day. From the standpoint of human therapy it is

noteworthy that, in the infected animals, meat and milk can also be

occasionally infected with Candida quilliermondii.

The Changes

Based on the results of epidemiological observations, the mycological and

pathohistölogical study of the organs and attempts at infection, the symptoms

and the pathogenesis of candidosis involving the internal organs of cattle and

sheep, caused by Candida quilliermondii varietas quilliermondii, became known.

In breeding bulls and breeding rams, in addition to excretion of the Candida

quilliermondii fungus in the semen, often irreversible changes occur in the

different organs (for example: orchitis, epididymitis, infarcts in the renal

cortex, abscesses in various organs such as the liver, and inflammatory foci

in the brain).

In bulls, prolonged spermatogenetic disturbances, and decreased spermium

concentration and volume of the ejaculate can be observed, becoming aspermic

later (the ejaculate contains no sperm). Special attention should be paid to

the extremely great capacity of the fungus for spreading. Therefore, it can

reach the most varied internal organs very rapidly through the blood stream.

The development of local processes is dependent on the virulence of the fungus

and the resistance of the organism. The survival of the fungus in deep-frozen

semen stored in liquid nitrogen indicates that the infection is also spread by

insemination. Particular attention should also be paid to the fact that

treatment of the infected,, diseased animals with antibiotics results in an

increased severity of the fungal infection.

In cows, in the case of Candida quilliermondii infections demonstrated by

immunobiological, mycological and pathohistölogical tests—mostly accompanied

by definitely good general condition—the gradual development of the following

changes can be noted: appearance of reproduction-biological disturbances, in

spite of an optimal feed supply, in the form of symptomless oestrus, abortion,

prolonged infertility and chronic inflammation of the udder; milk production

disturbances: quantitative reduction of milk production, agalactic

disturbances; in the red blood cells, there is an accumulation of

protoporphyrin resulting in a decreased oxygen supply with the consequential

development of metabolic disturbances.

New Possibilities

Up until now, no specific Candida quilliermondii antigen was known that would

have made possible the diagnosis of infection during routine veterinary

examinations. This was made possible by a globally unique Hungarian patent

which contains the biotechnological manufaturing process of such preparations

106
and the utilization of these products in the diagnosis, prevention and

treatment of the fungus infection.

The patent was purchased by the Petofi producer cooperative in Dunavarsany

exclusively for veterinary use. The contract signed with the discoverers

includes the patent and also the marketing of the product. License to

manufacture and market the product was bought by the Biove company operating

in France, for the Common Market countries. So far it was registered and

accepted in 12 countries: Canada, Australia, New Zealand, Japan, Great

Britain, France, GDR, Netherland, Luxemburg, Belgium, Switzerland and the

United States. Manufacture of the product was already started in France.

According to French studies, the extent of fungus infections is nearly

identical with the Hungarian data. On one of the farms, a Holstein-Friesian

cow with an 11-thousand liter genetic background proved to be infertile after

three attempts at insemination; after treatment with the drug, 12 embryos were

obtained 9 of which proved to be viable and transplantable.

The preparations, made by biotechnological methods, whose experimental

production is currently in progress in the laboratory of the producer

cooperative in Dunavarsany, make a rapid diagnosis possible. Infection with

Candida quilliermondii is determined at the site, that is, at the animal

raising establishments, by means of intradermal tests and in the laboratories,

by means of the serological testing of blood serum samples.

The Advantages of Treatment

The economic advantages of treatment and the use of preventive measures are

demonstrated in the following. The rejection ratio is decreased. In cows and

heifers, the oestrous cycle becomes normal, there is a decrease in the number

of abortions, the infertility ratio and the number of udder inflammations,

milk production increases, the period between two calvings is shortened and

the sperm index is improved thereby decreasing further expenses. The public

health value of the milk is improved. In the breeding males, the spermatogenic

disturbances of very valuable breeding animals cease and the sperm of infected

animals becomes suitable for deep freezing again after treatment.

The use of these preparations is judged extremely important in the field

distribution of another new biotechnological procedure, embryo

transplantation. By decreasing the rate of infection in donor and recipient

animals, the efficiency of embryo transplantations can be significantly

improved. The Embryo Transplantation Agricultural Society—active since 1981

within the framework of the Petofi TSZ in Dunavarsany, which accepted the role

of initiator for the introduction of embryo transplantation in large-scale

agricultural enterprises —is also planning to start the experimental use of

the preparations against Candida quilliermondii fungus infection in the course

of its activities. According to results of available studies, the efficiency

of the embryo transplantation method is expected to be increased by about 10

to 15 percent with the use of the new immunobiological preparations.

These are facts and possibilities whereby the relevant losses in animal

raising can be considerably lowered and which justify the epidemiological

survey of this fungus infection also on a global scale.

2473

CSO: 2500/246

107
ROMANIA ECONOMIC

ENERGY-SAVING MEASURES IN CHEMICAL FERTILIZER PLANTS

Bucharest REVISTA ECONOMICA in Romanian No 3,16 Jan 87 p 10-11

[Article by Gheorghe Manea, "Energy Consumption—A Criterion for Modernizing

Chemical Fertilizer Plants"]

[Text] Compared with other products, chemical fertilizers can be considered

energy-intensive because during their production, one to two equivalent tons

of petroleum are consumed for each ton of the active ingredients of fertilizer

produced. In addition to the energy consumed in production, there is also the

energy consumed in obtaining the raw materials (.3 equivalent tons of

petroleum per ton of phosphate for example), the energy used in transporting

the raw materials as well as the energy used in transporting, storing and

applying the finished product.

Thus one can see why there is such concern in our country to reduce the

consumption of energy used in production at every industrial plant. Hence, in

special programs at every combine and chemical enterprise, measures are

specified for direct reductions (in energy consumption by improving processing

technologies and in making use of thermal flows in production) as well as

indirect reductions (making use of by-products of reactions, noble gasses, the

hydrogen and oxygen of residual carbon, calcium carbonate, phosphates etc.),

exploiting reusable energy resources (including urban heating) or obtaining

finished products requiring less consumption as, for example, liquid chemical

fertilizers.

In general, chemical fertilizer production worldwide not only must consider

the high level of energy consumption but also the rapid reduction of certain

natural resources, market factors (reduced prices because of less demand in

developed countries and the financial straits that many developing countries

urgently needing chemical fertilizers for their agriculture find themselves

in) and the ecological restrictions in the use of chemical fertilizers in

certain countries. The degree to which these factors affect the production of

chemical fertilizers in a given country may vary, but their presence is,

general, a fact of life in the area of chemical fertilizers, and has forced in

their production, a new stage in the development of technology. Wide ranging

research—designing improvements in production technology, creating new types

of chemical fertilizers for agriculture, new forms of conditioning these

fertilizers—are current activities intended to contribute effectively to the

reduction of energy and raw material consumption. At the same time,

interdisciplinary research looks to promote nitrogenizing inhibitors of

108
fertilizers in the soil, and to put into production new varieties of organomineral fertilizers and biofertilizers.

Such concerns are evident in our country as well: ICECHIM [the Central

Institute for Chemical Research], the Craiova Research Central and the

Institute of Engineering Technology and Design for the Chemical Industry are

pursuing programs to diversify products, to improve technologies and to set up

production lines for organo-mineral chemicals. These steps are in keeping

with the worldwide trends to adapt the chemical fertilizer industry to the new

demands of technology and agriculture as well as to the need to conserve

energy. As an example of the effects of this concern, the specialized

literature in the field makes mention of producing nitrous fertilizers in very

large granules and thereby obtaining a 1000 kilogram increase in the harvest

of corn when compared with the same dosage applied in granules of the normal

size (1-3 mm). Increasing the efficiency of chemical fertilizers at the

consumer level implicitly brings with it a relative energy savings

proportional to the increased yield.

The changes forced by the new demands on the chemical fertilizer industry are

approached differently from country to country depending on resources, the

potential of research and development sectors required to modernize the

production infrastructure and maintain it at world standards for technology

and economic performance, and policies and strategies for developing

agriculture. In this regard, the following adaptations to chemical fertilizer

production can be made:

--reducing production as a function of the country's own resources or to an

acceptable profit margin (this is a more or less general characteristic of

industrially developed countries);

—modernizing the technical processes, machinery and industrial equipment.

Romania is in this competition; the IPROCHIM process for producing phosphate

fertilizers, by virtue of its technical characteristics, meets modern

standards (product 96-981 with an energy consumption of 83 kWh per ton of

P205).

There is a net distinction between activities to improve production

technologies, machinery and equipment and activities to modernize per se. By

relying simply on improvement activities (which those in the chemical

fertilizer industry perform on a routine basis) one cannot achieve the drastic

cuts in technological consumption that are demanded by the fierce competition

between industrial plants, the obligation to be economically efficient given

today's market conditions and the maintenance of an energy to final product

cost ratio within efficient limits. The rapidity of technological advance has

convinced some industrially developed countries that it is more advantageous

to modernize existing installations and extend their production capacities

than it is to invest capital in new plant construction.

One of the indices which separates improvement activities from those of

technological modernization is energy consumption. Any activity undertaken in

this arena must result in at least a 25 percent reduction of energy

consumption to be considered a part of production modernization. Reductions

under this amount are part of routine improvements of production technology.

Thus when we speak of activities to reduce specific energy consumption by

109
production modernization we mean: Energy integration of the production plants

(sulfuric acid production facilities have achieved energy independence);

energy integration of production installations at industrial complexes;

territorial energy integration to make use of recoverable energy resources at

thermodynamically reduced levels; and using intermediate energy flows at

ammonia synthesis plants to generate electrical energy. Modern methods of

«generation reduce electrical energy costs and have a positive effect on the

energy efficiency of the plant; the use of recoverable energy resources with

reduced thermodynamic parameters (in agriculture, fish breeding, urban

heating, drying processes in local industries, sterilization processes in the

food business etc.) could reuse 20 to 30 percent of the primary energy

resources consumed in producing chemical fertilizers. For our country this

would mean that about 1.2 to 1.8 million equivalent tons of petroleum could be

effectively (and thereby efficiently) used in the national economy.

—A relative reduction of energy consumption by: using as raw materials in

the synthesis of ammonia the by-products of other industrial processes such

as: hydrogen from coal carbonizing gasses, nitrogen from plants that separate

oxygen from air in steel foundries, carbon monoxide from converters in

metallurgy and so on; making use of by-products from the fertilizer synthesis

process (for example, the non-reacting hydrogen which represents about 20

percent of the total used in the process); integrating production (ureamethanol) or reintroducing hydrogen, after purification, in the synthesis

process (a summary inventory of the volume of hydrogen in the Romanian economy

demonstrates that about two billion Nmc of residual hydrogen could be used as

an alternate source of raw material for the synthesis of ammonia); wide-scale

promotion of liquid instead of solid, granulated fertilizer which would

realize a 20 percent savings in total energy consumption; increasing the value

of fertilizer usage by improving efficiency at application (new varieties of

fertilizers for pastures and hay, horticulture, forests, rice fields, legumes

etc.); and placing phosphate production facilities in countries rich in the

appropriate natural resources to avoid transporting the 70 to 80 percent

sterile material contained in phosphoric rock.

—Making ammonia plants more flexible so they can use a wider range of raw

materials (the distillates of heavy petroleum, natural gas, lignites etc.)—

this is a condition for ensuring continued production independent of the

geopolitical conditions involved in obtaining natural resources. Interesting

in this regard is the experience of an international company in building a

plant for synthesizing ammonia that uses coal as a raw material. By

gassifying the coal (to obtain the mix of carbon monoxide and hydrogen—the

raw material in obtaining ammonia) it produces thermal energy, the use of

which leads to the idea that the production of ammonia could be viewed as a

by-product of a plant designed to chemify coal.

For our country, the measures which appear to be opportune for adapting the

chemical fertilizer industry to the evolutions appeariny in international

practice can be summarized as follows:

—Selecting technologies that can be modernized and eliminating the old plants

and technologies that can no longer be modernized (from a technical and

economic standpoint.) ^Standardizing technologies and plants to minimize the

required financial investments.

110
--Obtaining the technologies, machinery and equipment necessary for

modernization.

--Maintaining technical and economic performance at world standards for

modernized plants (this includes programs for basic research.)

—Energy integration of plants and industrial complexes in regional planning

to make full use of recoverable energy resources in the national economy.

Building model units to use recoverable energy resources in heating

agricultural greenhouses, in intensive fish farming, in cultivating

phytomasses, soil-heating, urban heating, drying processes etc. These model

units could establish technical and economic benchmarks and could serve as

demonstrations to rapidly expand the practice of using recoverable energy

resources.

—Continuing the process of modernizing product lines toward those types and

varieties that consume less energy (liquid fertilizers, mixed instead of

complex fertilizers, organic-mineral fertilizers etc.).

—Promoting various forms of international cooperation in technology (and thus

making full use of our own experiences) to optimize results obtained and

minimize redundant research.

In conclusion, the complex modernization of plants that produce chemical

fertilizers in our country (the production infrastructure and production

structure) is a particularly important activity with the energy criterion,

which obviously falls under the heading of economy, influencing the breadth of

the modernization process.

12280

CSO: 2700/200

111
CZECHOSLOVAKIA SOCIAL

ROLE OF WOMEN IN SOCIETY DISCUSSED

Prague TVORBA in Czech 4 Feb 87 p 4

[Article by Antonin Rasek: "A Problem Called Woman"]

[Text] A round-table discussion about the working and living conditions

of working women ended without any new insights and apparently also slightly

out of focus with the conclusion: family is the foundation of the state,

and family is overburdened.

Perhaps we should feel gratified with the fact that some institutions, in

this particular instance the TES—the Institute of Metallurgy and Heavy

Engineering—are tackling women's problems even at times other than the

celebration of the International Women's Day, that programs for sociological

research are being planned and implemented, and that proposals specifying

needed improvements in the situation of our working women are being prepared

for our top decisionmaking bodies.

However, let us go back to the so often repeated truth that family is the

foundation of the state. Its importance will be magnified if we confront

its existence with the nature of our social structure. The state is built

and society is represented mainly by vertically arranged structures. In

the final analysis, their function is projected in the most fundamental horizontal structure—namely, family, which of course bears that burden with

increasing difficulty, as shown by survey and experience.

Here is the root of many of our problems—beginning with children's upbringing,

through their training for their future vocation, up to the safeguarding of

the biological continuation of our nations. Because many vertical structures do not provide the best possible conditions for families, in the end

women must bear the heaviest burden.

If we take a critical look at the postwar period, we may see that in many

ways we have not advanced our concept of woman as a work force. On the other

hand, we stress her function as mother. Woman's problem is then viewed as

a conflict between her role as worker and as mother.

In my opinion, the theory of a conflict between woman's role as a work force

and as a mother is not only fallacious but in many respects misleading because

112
women do not function solely as workers and as mothers but also as wives,

family members and friends: they are engaged in work which benefits our

public, in leisure activities, and so on.

From this point of view the theses that women may find self-fulfillment only

in the work process does not sound quite tenable. By that I do not int

at all to deny its vital importance, for example, for women's equality.

Nevertheless, woman's true fulfillment and self-fulfillment stem from the

best possible combination of her roles. That depends essentially on her value

orientation and—in terms of the work process—on the degree of her professional qualifications. For highly qualified women work may be, and often is,

the main source of self-fulfillment, while for others it is no such thing.

Those who were able to study the performance of women employed in those

branches of industry where women predominate, can hardly think otherwise than

that such work is basically nothing more than economic necessity.

Just as invalid are the conclusions of many sociological surveys that, as

compared with men, such routine, dull jobs suit women perfectly well because

they allow them to ruminate about the upbringing of their children, about

their relation to their husbands, or about housework. After all, this is a

matter of necessity. Therefore, if we really want to help our women workers,

we should first of all automatize their work. It is not enough to install

advanced machinery; women should be retrained to work at such jobs. Unfortunately, thus far we have preferred men for such work.

The theory that woman's role as mother conflicts with her role as worker has

another negative aspect: it silently ignores—and thus, also weakens—

man's role as father, which seems most essential in a situation where women

have taken over several branches, organizations and institutions involved in

children's education. The male factor cannot vanish from children's upbringing. The negative consequences are disturbing especially in technology

and innovation as one of the sources of our economic intensification.

However, it does not mean at all that the family burden should be shifted from

woman to man. This is no rhetorical warning but a simple fact. Some years

ago sociological research noted serious disproportions in the amount of

women's and men's free time—naturally, to women's disadvantage. Since then

women's leisure time has increased—to the detriment of men for whom it

decreased. That is not an encouraging fact if we consider at this point that

the average age of men in our country has declined to 67 years, although I

would not want to allege that it is the only—though it may be the most

relevant—reason.

Thus, it seems that in many ways the solution to women's working and living

conditions has exceeded the bounds of women's issues and that we no longer

can apply only partial remedies. Although, for instance, in terms of household furnishings with durable goods we are among the most advanced countries

in Europe, we are still painfully lacking a really comprehensive program to

take drudgery out of housework. For illustration: our production of semiprepared and canned foodstuffs amounts to 20 servings per person per year,

although we need at least 10 times that amount. Not only do we lack

113
appropriate facilities, but the high cost of food processing puts such

products out of reach of families with several children. Increased prices

of dry-cleaning and housecleaning returned some of those chores back to

households; despite many successful achievements of dining services in enterprises only half of the employees are benefiting from them; moreover, there

are problems with food services for older students of elementary and

secondary schools, with meal services for retired persons, etc.

In many respects all those problems of working and living conditions are

trivial and may prevent us from more profound contemplation of women's selffulfillment and genuine equality which certainly does not mean any imaginary

catching up with men or imitation of men, but the development of women's most

intrinsic characteristics. However, that is already another story.

9004/9716

CSO: 2400/159

114
HUNGARY SOCIAL

SUBSTANTIAL INCREASE IN FOREIGN TOURISM IN 1986

Budapest NEPSZAVA in Hungarian 2 Jan 87 p 12

[Article: "Foreign Tourism Increased Significantly in Our Country"]

[Text] During the past year the number of foreign tourists visiting

our country increased by 9 and 1/2 percent: according to the balance

totaling the data for the eleven month period domestic and foreign

travelers crossed our borders 46.8 million times.

During this period nearly 15.5 million foreign tourists visited our country

or traveled through our country. The overwhelming majority—almost 11

million 700,000 visitors—were from socialist countries. In accordance with

tradition most of the visitors to our country were from our neighbor to the

north although, the the number of visitors from Czechoslovakia declined.

And similarly there were less tourists from Rumania. In contrast to this,

the number of travelers from Yugoslavia and Poland increased

considerably—by 55 and 56 percent respectively. Now, for the first

occasion the tourist traffic from the Soviet Union has increased

dramaticallyj we received nearly 12 percent more tourists from the

Soviet Union than before. Nine percent more tourists from the GDR sought

out our country than in the previous year.

The number of tourists from capitalist countries visiting our country

grew significantly; their total almost equals to nearly a quarter of the

total incoming traffic. More visitors than ever before—2.Z million—were

from Australia, and ever more tourists from France, Holland, that is,

Danes choose our country as their travel destination. The sudden decline in

the number of tourists from FRG in the second half of May and first weeks of

June made its effects felt in the formation of tourist traffic. Nearly

820,000 arrivals from FRG were recorded which 4.4 percent below last

year's level. However, the greatest level of decline was among the

transatlantic travelers. The decrease in the number of tourists from America

and Canada visiting the Old World was observable throughout Europe.

The number of American tourists visiting our country declined by nearly 30

percent.

115
The tourist traffic for the entire year—according to preliminary

indicators—has surpassed all previous years: it reached the 48-49 million

threshold.

As a result of expansions and seasonal organizational changes at the border

crossing points on the Hungarian side—with the exception of the

crossings at Sopron and Parasztpuszta which again proved to be limitedtravelers, on average, had to wait less than 30 minutes. Greater

congestion was an impediment to tourist traffic only on the stretch of

territory bordering Rumania, at Nagylak and Biharkeresztes, and in the

beginning of December travelers going abroad experienced one to two hour

delays at the Hegyeshalom border crossing point, on the Austrian side.

9956

CSO: 2500/176

116
HÜNGARY ' . SOCIAL

COOPERATIVES NEED MILLIONAIRE'S SERVICE PARTS TO HARVEST

Budapest ELET ES IRODALOM in Hungarian 16 Jan 87 p 12

[Article by Laszlo Zoldi: "Agile Millionaires"]

[Text] I read with amazement the report in last week's issue of ELET ES

IRODALOM by Jozsef Bellai. I was not astounded that the Pinter Works is

standing and expanding, not even that the jack-of-all-trades of Kecel outdoes

the technically well-founded state enterprises. What captured my attention was

that he openly accepts himself. He lives the millionaire's existence with a

worker's consciousness and is almost proud of the fact that he is a good,

taxpaying citizen.

It was not always like that. I know the region since my childhood, I had seen

millionaires—more than one in Soltvadkert, for instance—but they seldom

bragged about their wealth, their inventiveness, or their morality as a

taxpayer. It occurred to me that being a millionaire seemed by no means

unusual in the fifties and sixties. In almost every village, there have been

jacks-of-all-trades and entrepreneurs who were known to be millionaires by the

locals. In my native village, Dunapataj, everyone knew Mr David, the dour

jack-of-all-trades who repaired with extreme ease any car, threshing mashine,

perhaps even tank; at any rate, there was no technical problem that would have

gotten him. Or later, in Kiskoros, everyone knew about Andi Farkas, the soda

water delivery man and hauler, that it is worth while to approach him with

ideas; it pays. What is thought-provoking in the phenomenon is that

millionaires of the eighties are not secretive, opinions about them are also

completely different from what they were just ten-twenty years ago. It is also

attested to by the film entitled "The Millions of Uncle Koszo."

Film? Short film. Report, a slice of life, altogether eighteen and a half

minutes long. He has been all over the country, its director, one of the most

experienced reporters, Jozsef Csoke, has participated in a great number of

audience get-togethers. Morahalom, the site of the filming, is hardly a few

tens of kilometers away from the settlements, mentioned above, between the

Danube and Tisza rivers. The organizational ability of the peasant with a

sixth grade education, his business—I am searching for the word, but there is

no better expression—genius, have long been known. Namely, Dezso Koszo

discovered that the suddenly inflated machine pool of the TSZs and state

agricultural enterprises was left without a supply of parts: the partners in

the neighboring countries did not consider it their main duty to renew the old

117
tractors, combines and other power machines. The entrepreneur turned salesman

looked around the country and, in the junkyards, he found thousands of

discarded but perhaps still usable parts. At home.he set up a storeroom and

workshop, and the business was on its way. During summertime, the buyers of

hard pressed agricultural enterprises followed on each others' heels. Soon

after a CB phone was acquired, Mr Koszo no longer merely extinguished the

fires but he also developed the system of continuous parts dealership.

Meanwhile, he got rich, of course.

His story resembles uncannily the sour cherry pit entrepreneur—known from

editorials—whose attention was caught by another contradiction in short

supply management (he paid dearly for it). The difference is that Dezso Koszo

was not denounced to the police. The TSZs and state enterprises could not

harvest without him and the locals also have put up with his neat house,

quality car and tourist travels to faraway countries. They put up with it

because this millionaire was clever: he not only paid taxes galantly but also

shared some of his profits with the village community. Exciting film sequences

show the fish pond system which was a childhood dream of Mr Koszo and now,

here it is, realized with his money, for the good of an agricultural

association. And when the council president turned to him for help, he

willingly assumed half of the expenses: the village bath was increased in size

at once. The culmination of the short but very effective film report comes

wBen the childless, altruistic millionaire reveals that he arranged in his

will—hopefully he did not make any changes in it since—that, after his

death, a foundation should take care of the needy young and old who have

difficulty moving because of some physical disability. It is now that we see

the leading character in full reality. He "travels" in a hand propelled wheelchair. Some fifty years ago, he caught a cold and his legs became paralyzed.

Indeed, he climbed up from the very bottom of society.

The method of bringing out the essential point is a bit disturbing, the author

could have revealed it earlier. In my confusion I am thinking: is It possible

that the most agile man of our reform is an essentially Immobilized peasant

citizen?

2473

CSO 2500/246 END

118
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