OMRI DAILY DIGEST
No. 14, 21 January 1997

KWASNIEWSKI PROMOTES REGIONAL COOPERATION IN BUDAPEST. In a two-day
visit to Hungary, Polish President Aleksander Kwasniewski said that
Poland, Hungary, and the Czech Republic would form a close-knit group as
they approach EU and NATO membership, international and Hungarian media
reported on 20 January. Those three countries "should hold regular
consultations on presidential, prime ministerial, and ministerial levels
in the near future," Kwasniewski said. Hungarian President Arpad Goncz
echoed Kwasniewski's views, saying: "We are not competitors but
strategic partners on the road leading toward NATO and the European
Union." -- Zsofia Szilagyi

HUNGARY UNDER FIRE FOR EXCESS AGRICULTURAL SUBSIDIES. The United States,
Australia, Argentina, and New Zealand will file a joint complaint
against Hungary for oversubsidizing its agricultural exports, Reuters
reported on 20 January. The four countries will formally request that
the World Trade Organization establish a panel at the next meeting of
the organization's dispute settlement body. They accuse Hungary of
providing export subsidies in excess of its Uruguay Round commitments
and claim it plans to extend subsidies from six products to more than
300 products, including grain, meat, dairy products, fruit, and
vegetables. Earlier, the Hungarian Ministry of Industry and Trade had
tried tince the complaining nations that it was using erroneous
data when it agreed to reduce state subsidies. All five nations are
members of the Cairns Group of agricultural exporter nations, formed in
1986. Hungary is the sole European member. -- Zsofia Szilagyi

[As of 12:00 CET]

Compiled by Tom Warner