RFE/RL NEWSLINE
Vol. 1, No. 39, 27 May 1997

ESTONIA SCORES HIGHEST ECONOMIC FREEDOM RATING AMONG FORMER
SOCIALIST BLOC. An
international study of economic freedom puts Estonia in 52nd position among
115 countries worldwide and in top place among former socialist bloc
countries, ETA reported on 26 May. The survey, entitled "Economic Freedom of
the World 1997," was based on 17 indicators, including finance, tax
collection, private property, inflation, and foreign trade. It notes that the
strongest point of the Estonian economy is free trade and also mentions that
foreign currency accounts can be opened, restrictions on business activity are
few, and income tax is low at 26%. On a scale of zero to 10, Estonia was
awarded 5.6 points. Of the former socialist bloc countries, Lithuania followed
with 5.5 points, the Czech Republic with 5.2 points, and Hungary with 5.1
points.

RUSSIA OFFERS MiG FIGHTER JETS TO HUNGARY. A visiting Russian delegation, led
by Deputy Prime Minister Vladimir Bulgak, has offered MiG and Sukhoi fighter
jets to Hungary, the daily Nepszabadsag reported on 27 May. The previous day,
Russian Deputy Foreign Minister Anatolii Ogurcov told a Budapest press
conference that Hungary is Russia's second largest trading partner in the
region after Poland, with Russian-Hungarian trade totaling $2.5-2.7 billion
annually. The delegation intends to negotiate the payment of the former Soviet
Union's debt to Hungary and is expected to meet Industry, Trade, and Tourism
Minister Szabolcs Fazakas and Prime Minister Gyula Horn. Last week, in a sales
drive, U.S. aircraft producer Lockheed Martin Corporation displayed F-16 jet
fighters in Kecskemet, saying purchase would allow the Hungarian air force to
improve cooperation with NATO. Also last week, Defense Minister Ferenc Vegh
said Hungary will have to buy new aircraft if it is invited to join NATO.

HUNGARIAN PRESIDENT CONTINUES ROMANIAN VISIT. Arpad Goencz and Romanian
counterpart Emil Constantinescu on 26 May unveiled a monument commemorating
Hungary's executed premier, Imre Nagy, in Snagov, near Bucharest. Goencz told
a joint session of the Romanian parliament the same day that his country
viewed Romania's joining an enlarged NATO as "vital" for its own interests. He
said he hoped the Romanian parliament will approve draft legislation submitted
by the government, which meets many of the Hungarian minority's demands,
RFE/RL's Bucharest bureau reported. Earlier, the two highest officials of the
Council of Europe--Secretary-General Daniel Tarschys and Parliamentary Assembly
President Leni Fischer, who are attending meetings of the council in
Bucharest--held talks with the two presidents. They noted that Goencz's visit
is an important step toward democratic stability in Europe.

CE PARLIAMENTARY ASSEMBLY MEETINGS IN BUCHAREST. Walter Schwimmer,
vice-chairman of the judicial and human rights committee in the Council of
Europe's Parliamentary Assembly, says Romania must further improve its human
rights record. Schwimmer spoke on 26 May in Bucharest, where the assembly's
committees are holding their summer meetings. He said the Penal Code's
provisions on punishment for homosexual acts must be changed. He also said
detention conditions must be improved in Romania's prisons, the passage of
legislation on the return of property confiscated by the communists should be
accelerated, and the government should launch a resolute campaign against
racism, xenophobia, and intolerance, RFE/RL's Bucharest bureau reported. The
committee's chairman, Gunnar Jansson, said Romania has made progress in the
treatment of ethnic minorities, but problems remain with the Roma minority.
These, he said, are "all-European rather than specifically Romanian" problems.

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