362. Report From the Central Intelligence Agency to Multiple Agencies1
SUBJECT
- Hungarian Leader Grosz on Government Restructuring, Relationship with Kadar, Political Liberalization, Ethnic Hungarian Community in Romania
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Text: 1. [less than 1 line not declassified] Hungarian Communist Party Leader Karoly (Grosz) said he planned to retain the post of Prime Minister only until he finished restructuring the government. Grosz said that among other things, he planned to “collapse” two ministries into one. ([less than 1 line not declassified] Comment: Grosz did not, however, specify which ministries.) Grosz emphasized that restructuring could not be done through the Communist Party but must he done through the Hungarian Parliament to establish the fact that the government was the supreme functioning political body in Hungary. Thus, Grosz said, he is the only one who can effect the restructuring. Queried on who might become the next Prime Minister, Grosz said merely, “You know him well.” ([less than 1 line not declassified] Comment: Grosz may have been referring either to Pal (Ivaniy) or to Miklos (Nemeth), both of whom have been suggested as possible Prime Ministers. Nemeth, who speaks perfect English, is very much pro-reform unlike Grosz, who, though he favors improving economic performance, is not a true proponent of reform.) As for other personnel changes, Hungarian Ambassador to the U.S. Vencel (Hazi) noted that he would remain in his post one more year, and that he would be replaced by the current Hungarian Consul General in New York, Gyorgy (Banlaki). ([less than 1 line not declassified] Comment: [less than 3 lines not declassified] Government Commissioner for Restructuring of the Coal Industry Lazlo (Kapolyi) had decided to accept Grosz’s offer to assume the position as the new Hungarian Ambassador to the U.S. beginning in early 1989.)
2. With regard to this relationship with former Communist Party leader Janos (Kadar), whom he replaced, Grosz commented that Kadar was getting used to his ceremonial post. Grosz added that he was trying to persuade Kadar to write a book detailing all the decisions made between 1956 and 1988, since he was the only one with that knowledge, and that he was also trying to convince Soviet General Secretary Mikhail (Gorbachev) to work on Kadar to write the book. Grosz added that Kadar’s memory is “phenomenal” and that the book, even if it was for private consumption only, would prove invaluable in pointing out “where we went wrong.” As an aside, Grosz commented that he was on good terms with Kadar, who liked him.
3. [less than 1 line not declassified] regarding possible political liberalization, Grosz noted that unlike the Czechs, the Hungarians knew how to deal with the church; Grosz added that he was on good terms with church representative Fnu (Pozsgoy), who is a member of Parliament, as is the Chief Rabbi. Grosz said that conscientious objectors would [Page 1169] henceforth be treated the same as others: Everyone in Hungary must do compulsory military service as there is no such thing as a deferment. However, Grosz stated that “We will work something out.”
4. On the subject of ethnic Hungarians in Romania, Grosz stated that if not for the serious economic decisions facing him, there would have been a “serious” conflict with Romania over its treatment of ethnic Hungarians in Transylvania. Grosz said that he would not agree to transfer the ethnic Hungarian population out of Transylvania and into Hungary for two reasons: One, he does not have the money to pay off the Romanians, as the West Germans are doing for ethnic Germans by paying Romania DM50,000 per head, according to Grosz; and two, because the land these people live on belongs to Hungary. In an aside, Grosz commented that at the recent meeting in Poland of the Warsaw Pact Political Consultative Committee, Romanian President Nicolae (Ceaucescu) complained that he only got a four day visit to the U.S.2 while Grosz managed to stay for eight days. ([less than 1 line not declassified] Comment: Grosz was clearly pleased by this comparison.)
- Source: Reagan Library, Rudolf Perina Files, Presidential Meeting with PM Grosz Hungary 7/27/1988 (7). Secret; Specat; [handling restriction not declassified]. Sent to the White House Situation Room, the CIA Office of Current Affairs, and the Department of State.↩
- Ceaucescu visited the United States most recently April 11–14, 1978.↩