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ACTION EUR-25
INFO OCT-01 ISO-00 CIAE-00 DODE-00 PM-07 H-03 INR-10 L-03
NSAE-00 NSC-07 PA-04 RSC-01 PRS-01 SPC-03 SS-20
USIA-15 AID-20 EB-11 FRB-02 TRSE-00 XMB-07 OPIC-12
CIEP-02 LAB-06 SIL-01 OMB-01 STR-08 CEA-02 DRC-01
/173 W
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R 201216Z MAR 74
FM AMEMBASSY BUDAPEST
TO SECSTATE WASHDC 1016
USDOC WASHDC
LIMITED OFFICIAL USE BUDAPEST 0654
E. O. 11652: N/A
TAGS: ETRD, HU
SUBJECT: HUNGARIAN PRESS TREATMENT OF US-EE GTRADE
RELATIONS AND SZITA VISIT TO US
COMMERCE FOR BOWDEN (BEWT)
1. HUNGARIAN PRESS HAS GIVEN CONSIDERABLE ATTENTION TO
THE US VISIT OF INTERNATIONAL ECONOMIC RELATIONS
INSTITUTE PRESIDENT JANOS SZITA. ALL DAILIES WITH EXCEPTION
OF NEPSZABADSAG NOTE SZITA'S VISIT WITH AMBASSADOR EBERLE,
CHAMBER OF COMMERCE PRESIDENT BOOTH, AND MENTION THAT WHITE
HOUSE DINNER GIVEN IN SZITA'S HONOR BY OMB DIRECTOR ASH.
MOST EXTENSIVE COVERAGE, AS USUAL, APPEARS IN ECONOMIC
DAILY VILAGGAZDASAG WHICH DEVOTED MARCH 16 LEAD ARTICLE
TO EAST-WEST TRADE CONFERENCE HELD IN NEW YORK FROM
MARCH 11-15, AND SZITA'S SPEECH AT THIS CONFERENCE. SAME
ARTICLE QUOTES EXTENSIVELY FROM REMARKS BY ACTING BEWT
DIRECTOR BOWDEN ADVOCATING THE NEED FOR AN EARLY
GRANTING OF MFN TO COMMUNIST COUNTRIES AND CITING EFFORTS
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MADE BY SECRETARIES KISSINGER, SCHULTZ AND DENT TO
FIND A SATISFACTORY SOLUTION TO THIS QUESTION.
2. COMPANION ARTICLE MARCH 16 VG REPORTS ASSURANCES
GIVEN BY NEW EXIM BANK PRESIDENT CASEY THAT DESPITE RECENT
RULING BY GAO AFFECTING EXIM CREDITS TO COMMUNIST COUNTRIES,
THERE WOULD NOT BE A STOP IN FLOW OF "NEEDED FUNDS" CONNECTED
WITH ALREADY APPROVED LOAN PROJECTS. SAME ARTICLE NOTES
POSSIBILITY OF COMPROMISE ON TRADE BILL WHICH WOULD PERMIT
ADMINISTRATION TO GRANT MFN TO THE SOVIET UNION AND OTHER
COMMUNIST COUNTRIES -- WHILE GIVING CONGRESS A MUCH EXPANDED
ROLE IN AUTHORIZING EXIM CREDITS TO THESE COUNTRIES.
3. COMMENT: PRESS TREATMENT OF SZITA VISIT, DEBATE SURROUNDING
TRADE BILL, AND QUESTION OF EXIM BANK CREDITS REFLECT CON-
TINUING INTENSE HUNGARIAN INTEREST IN NORMALIZING COMMERCIAL
RELATIONS WITH US AND SUBSTANTIALLY INCREASING VOLUME OF
BILATERAL TRADE. THIS EXTENSIVE PRESS COVERAGE HAS ALSO
HELPED TO INCREASE UNDERSTANDING OF COMPLEXITIES OF MFN
ISSUE AND MOST CONCERNED HUNGARIAN OFFICIALS, WHILE HOPING
FOR EARLY FAVORABLE ACTION, DO NOT NOW EXPECT MFN QUESTION
TO BE RESOLVED IN 1974.
4. EMBASSY WOULD VERY MUCH APPRECIATE RECEIVING REPORTS ON
SUBSTANCE OF DISCUSSIONS BETWEEN SZITA AND USG OFFICIALS.
PEDERSEN
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