00:00:01    Dear viewers, The archive of the Hungarian Television preserves an
00:00:05    interview by Antall József that was never seen, heard by our viewers. In September 1990,
00:00:11    he was unable to speak on the screen because of a TV president's decision.
00:00:18    However, after the first hundred days of the Antall government, the recording before the
00:00:23    municipal elections testifies to the fact that the Prime Minister addressed the Hungarian people.
00:00:29    Accurate, analytical, warm words, both asking for and giving trust.
00:00:36    But some strange political intent came between them. The recording is still much more than
00:00:43    some kind of historical curiosity. Its validity still applies today and perhaps it can still,
00:00:50    in hindsight, help us in understanding and orientation. Not only with regards to
00:00:54    Joseph Antall's personality, but also in our own destiny.
00:01:02    - I know that there are enormous difficulties, I know
00:01:09    that there are serious financial problems for Hungarian families,
00:01:14    I know how bitter inflation is, how difficult it is
00:01:23    for many families, pensioners, seniors to not be able to buy very often
00:01:29    the most important items necessary to sustain life. We know all this
00:01:37    and no use any violent means are needed to convey these
00:01:45    rumors to us, these facts, we are aware of them.
00:01:54    I think that we Hungarians should think, as many times in history,
00:02:03    about what is around us. It wouldn't hurt to compare
00:02:10    it to the situation in the neighbouring countries. It wouldn't hurt to look a
00:02:17    little beyond our borders. We were often accused of only
00:02:23    turning inwards, only starting with some kind of Hungarocentric view,
00:02:28    the problems of Hungary and that is not what this is about.
00:02:36    We need to see what happened in this entire region,
00:02:42    what happened in the camp that was created around us in
00:02:48    the last decades under the leadership of the Soviet Union.
00:02:55    It is not just a Hungarian problem, it is not just Hungary's
00:03:01    internal crisis, it is the crisis of a system of things, and we are now experiencing
00:03:08    this extremely serious crisis as part of a system of things.
00:03:15    There are complete economic, social, political, ethnic conflicts and
00:03:21    crises in the Soviet Union. This means that the Soviet Union,
00:03:29    our most important
00:03:36    trading partner in recent decades, which has defined the structure
00:03:42    of the entire Hungarian economy, which has forced a model on us,
00:03:50    if you will, which has made the country part
00:03:56    of this Soviet and Comecon market, has collapsed or collapsing.
00:04:03    But the countries around us also collapsed. You can see the Polish, Czech,
00:04:11    Romanian, Bulgarian example. In fact, we can see the internal difficulties of Yugoslavia as well.
00:04:17    And we can see the former territory of the German Democratic Republic,
00:04:24    the eastern half of today's united Germany, the serious problems it faces
00:04:31    when the eastern part of Germany has been indirectly supported by
00:04:37    the Federal Republic of Germany, and it was, in a sense,
00:04:44    a lurking, hidden member of the European common market. Everywhere, everywhere,
00:04:51    these countries are in serious crisis, not only in Hungary,
00:04:58    and under such circumstances, we cannot say anything other than that Hungary is,
00:05:05    of course, part of this crisis, of this serious situation.
00:05:13    This heritage is mentioned so many times,
00:05:17    these days and it sounds like an excuse to many today, consequently,
00:05:23    any talk of it is no longer welcome. People say not to talk about
00:05:29    he past, only about the present and the future.
00:05:34    But we cannot talk about the present, because this heritage is not firmly in the past,
00:05:40    this heritage is our present, and unfortunately this heritage, this present, determines the
00:05:46    difficulties of the future. It must be said that Hungary's
00:05:53    economic structure means an obsolete structure that is
00:05:59    simply not compatible with the world at the end of the 20th century.
00:06:06    The collapse of the Soviet Union happened, too,
00:06:11    due to the serious internal crisis of the Soviet Union and the failure
00:06:15    of the Soviet Union to keep up with the Western world and with developed industrialised countries.
00:06:22    Hungary has accumulated 20 billion in debt over the last decades.
00:06:31    Out of this 20 billion-dollar debt, the actual investment is
00:06:37    just over $4 billion. The rest is debt rolled before us,
00:06:43    and interest is derived from newer borrowings.
00:06:48    Under these circumstances, we must deal with this serious crisis.
00:06:56    In Hungary, with debt. More and more unexpected
00:07:03    difficulties have come. It means that we could not
00:07:09    improve the Hungarian infrastructure. As we made this huge sum of debt,
00:07:16    we couldn't build our modern transport system, our telephone network,
00:07:23    our school system, all that we need to provide for a
00:07:31    new economy as a means of pulling it ahead. This has not happened,
00:07:38    and now Hungary's crisis is also serious because we have serious shortcomings in this area.
00:07:47    But it also has to be said and it has to be said openly
00:07:54    that Hungary has been put artificially in a better state for the Hungarian
00:07:59    population over the last decades, the country has been put in a better
00:08:04    living conditions than it could have guaranteed for the goods it produced
00:08:09    as it could have done on the basis of its economic results. Now,
00:08:16    however, a new situation has emerged, these resources have been clogged,
00:08:22    we have lived up to our reserves, and we have received the
00:08:29    legacy of accumulated debts and the obsolete industrial structure. And so comes the newest and latest
00:08:38    plagues that our neighbours have suffered by crashing,
00:08:43    the Soviet market being able to absorb less, our industrial production
00:08:49    falling by 10 percent... This also means that in some
00:08:56    industries we can point to a decrease of up to 30 percent,
00:09:02    and under these circumstances we must continue to move forward.
00:09:09    But I could also talk about the fact that the obsolete industrial
00:09:15    structure, the outdated car park, the structure of our industrial
00:09:20    production consumes twice, three times as much energy as
00:09:24    in the case of a modern industrial country. Therefore, we consume much more energy
00:09:30    than is considered justified on the basis of the products produced.
00:09:37    So you can simply check this if you look at what a Western
00:09:45    minivan consumes or what the used, aged car park owned by
00:09:53    Hungarian car owners consumes,
00:10:00    but the same can be said about our factories. For us, however, this amount of energy we are
00:10:08    using is causing very serious problems throughout the country, throughout the national economy.
00:10:15    I think that this is also where we should talk about what the oil
00:10:23    price increase means for Hungary, what the situation means.
00:10:28    Two factors need to be pointed out. One is that the Soviet Union
00:10:34    has promised only 80 percent of our orders this year.
00:10:41    On the other hand, what we need to replace must be replaced at increasing world prices.
00:10:51    So this also means that the country's economic life will be
00:10:56    seriously damaged in the coming time, and that serious damage has been caused so far.
00:11:04    However, the only thing we cannot
00:11:09    say in itself is that in Hungary we only have the economic disaster
00:11:18    and only the obsolete industrial structure.
00:11:26    That is why we reveal this and why no one has ever concealed what a
00:11:34    serious inheritance we have received. The country is in
00:11:41    such a serious state that we cannot agree with those
00:11:50    who are trying to discourage the population permanently,
00:11:58    turn it against the government, turn it against the political
00:12:09    forces who are doing everything they
00:12:15    can to keep the country in
00:12:21    balance so that we can maintain
00:12:27    our national economy at all. I would like to stress that when
00:12:37    we talk about the damage caused by state property and the obsolete
00:12:45    industrial structure in Hungary, when we talk about what Comecon means
00:12:52    to the country and how seriously it affects our situation, we also
00:12:59    have to talk about what foreigners, foreign economic professionals and
00:13:05    foreign politicians say, that Hungary is the most promising country in
00:13:12    the former Communist bloc. I wonder why they say so and
00:13:20    why is there in Hungary so much pessimism and why political forces
00:13:27    emphasize it here in public, why they are almost cheering and happy
00:13:36    to report all negatives and negatives, when the relevant economic circles,
00:13:44    the significant financial circles, significant political circles,
00:13:49    governments talk about positive phenomena and praise the
00:13:55    Hungarian development. I think it's enough for anyone to
00:14:01    hear the government's statements. All you need to know is what they say
00:14:09    about us and it's clear that they
00:14:15    don't have a pessimistic opinion about our future.
00:14:21    The spread of small and medium-sized enterprises in Hungary is considered encouraging.
00:14:28    It is safe to say that 50 percent of the foreign capital
00:14:36    in the entire Eastern European region was invested in Hungary.
00:14:44    Are Western countries, Western financial circles
00:14:49    who see Hungary fit for this, those who distinguish us
00:14:56    from the surrounding states, all of them stupid, do they have no self-interest?
00:15:04    Every day I meet representatives of the international banking world,
00:15:10    international business circles, leading statesmen and all of
00:15:15    them consider Hungary's future to be encouraging. Well, then,
00:15:21    what's good is it to instill bitterness into this country,
00:15:28    into public opinion, in our present grave situation.
00:15:33    It is safe to say that are whining about the total
00:15:42    destruction of agriculture in Hungary. At a time when there are
00:15:48    real problems with drought, when we are doing everything we can to bring in feed and under
00:15:54    the most favourable conditions. Every day we are in contact with European and other
00:16:02    international organisations and financial circles to reach Hungary for preferential feed imports.
00:16:09    In these circumstances, I received official information today with the Ministry of Agriculture
00:16:16    that the cultivation of the land is better this year
00:16:22    by 20 and 30 percent than in the same period last year.
00:16:29    This means that the Hungarian peasantry, which also sowed in 1944,
00:16:36    when the war, the front approached, is still aware of the fact,
00:16:43    - and our agricultural experts are clearly aware of it - that autumn
00:16:48    works must be carried out. And the question of how privatisation,
00:16:55    the solution to the land issue, will develop is not affected by
00:17:03    the completion of agricultural work, because in agriculture whoever sows must
00:17:09    reap it. As a result,
00:17:15    if anything happens and the Hungarian Parliament adopts any kind of law
00:17:22    to solve the Hungarian land issue, it is certain that no one,
00:17:28    whether community or individual, will suffer so much damage that they
00:17:34    will not be able to recover their invested work and fixed assets.
00:17:41    But if the Hungarian people know that, then let us not try to hammer
00:17:47    these rumours on and spread about us that we do not work and there is
00:17:53    going to be a disaster in agriculture. But I could tell you something else.
00:18:00    I can say that in Hungary, in the field of privatisation,
00:18:08    in small businesses and in all the areas where we are talking about
00:18:16    the recovery of economic life, there is a serious result.
00:18:24    The state asset agency, which is in fact a state asset fund,
00:18:31    which places those state-owned companies on the market
00:18:36    making rapid progress. It has been assessed and the
00:18:43    number of applicant interested in buying
00:18:50    formerly state-owned companies is very high. I ask why
00:18:57    anyone can say to us that we are not doing privatisation properly,
00:19:05    with insufficient speed. The British Prime Minister is
00:19:11    not exactly among the defenders of state property and the
00:19:16    opponents of privatisation. He himself stated that he felt
00:19:22    that the privatisation process in Hungary was progressing well.
00:19:28    What do some people think of the pace of privatization? In Britain,
00:19:34    some sectors were state-owned and it took years to implement privatisation.
00:19:42    The same was said by the French Finance Minister or
00:19:47    the privatizer of the former French nationalised industry.
00:19:52    Last time, the German Secretary of State for Economic Affairs said that the government's privatisation
00:19:58    policy was appropriate, modern, both at its pace and in its nature.
00:20:03    So all of this shows that this government's activity
00:20:09    does find recognition. At the same time, we must take
00:20:15    appropriate financial measures. We must ensure that the market,
00:20:22    the emerging market economy, which we consciously call a
00:20:28    social market economy based on the teachings of Professor
00:20:34    Erhard and Minister of Economy, is implemented with
00:20:41    measures that ensure the establishment of the institutional
00:20:48    system of a market economy, from the stock exchange to the
00:20:55    banking system, and all the institutions that belong to it,
00:21:02    just as Parliament or government are part of the political systems.
00:21:09    We also need to establish a
00:21:15    way to ensure that monopolies can be broken down,
00:21:22    to ensure proper competition, since a market economy without
00:21:27    conditions of competition is worth nothing. We need to ensure competitive conditions
00:21:34    and legal settlements necessary for that because that pushes prices down and,
00:21:40    of course, to reduce inflation. But we also have to take
00:21:47    into account the budget. The budget of a state
00:21:52    is regulated by law. So what Hungary's budget today in
00:21:58    1990 is what the previous Parliament approved and which is binding on us.
00:22:07    While the previous government may have made a deficit of HUF 54
00:22:14    billion in the previous year, our government can only make
00:22:19    one of 10 billion forints, because the agreement with the International Monetary Fund requires this,
00:22:27    but it is also in our own interest. This means, however,
00:22:33    that if we do not conclude this, and if we do not keep it,
00:22:39    then Hungary's financing will become impossible, there are no more opportunities, we are no longer creditworthy,
00:22:45    so we must keep it. Today, this must be maintained,
00:22:50    meaning that the budget cannot be exceeded and that the
00:22:56    budgetary framework cannot be extended as a elastic.
00:23:01    This has to be said because any occupational branch,
00:23:08    every social class, every sector, everyone has a legitimate claim,
00:23:15    everyone is underpaid, every occupational branch, if we make a comparison,
00:23:23    is at a disadvantage compared to the developed countries,
00:23:30    but also to ourselves. No one's questioning that.
00:23:36    But the question is, is there any way to get past it? No. This is simply not possible
00:23:45    at the moment and should be taken into account when drawing up next year's budget.
00:23:53    This is why it is the greatest irresponsibility to take
00:24:00    advantage of our social tensions as a result of our economic
00:24:06    situation for political purposes. Believe me, this is a government,
00:24:12    and I can safely say that this is a government coalition that is
00:24:18    definitely sensitive socially, sensitive in terms of what we would
00:24:24    do to raise people's standard of living and make the most of it.
00:24:32    But by irresponsiblely disrupting the financial balance,
00:24:37    it can only lead to inflation, if inflation continues to increase,
00:24:45    then the further increase in wages would be in vain,
00:24:52    those benefits would be in vain. We do everything by
00:25:00    being aware of social problems, taking into account tensions
00:25:05    in order to save the most vulnerable, in order to stretch out the social
00:25:14    net knowing that unemployment, which has been accelerating,
00:25:18    is really inevitable. We need to provide unemployment benefits to the unemployed
00:25:26    and to ensure re-training. But if some groups of interests
00:25:33    or social groups were to be given such special preferences or even
00:25:41    given special benefits, then we would not be
00:25:47    able to achieve anything. Our only way is to focus
00:25:54    on breakout points in economic development that allow us to
00:26:02    boost Hungarian economic life. To this end, it is necessary to
00:26:09    ensure that we increase the number of private economies, businesses.
00:26:15    To this end, we create a basis for living conditions through the involvement of foreign capital.
00:26:26    I think that if you are aware that in order for the Western
00:26:33    business circles to enter Hungary, in order for the working
00:26:38    capital to come in, in order to boost Hungary's economic life,
00:26:44    you need to have confidence in Hungary in the first place.
00:26:51    Trust must be gained, and I can safely say that
00:26:56    there has never been such trust in Hungary as there is today.
00:27:03    Government leaders, industrial leaders of economic
00:27:10    powers look to us with confidence. Business circles look at the
00:27:17    country with absolute confidence, and believe that the government, which, although accused of not
00:27:24    having and distributing a manifesto for government
00:27:31    (those accusing us will do so even if we have one in
00:27:38    book form), has gained confidence. It is safe to say that Hungary
00:27:46    enjoys undivided trust both in business and banking circles
00:27:53    and among various political forces. I ask why we have to discredit
00:28:03    ourselves from the inside, undermine this trust,
00:28:08    whose interest it is to fight against it. The other is stability in addition to trust.
00:28:19    Only then will there be an economic rise in this country.
00:28:25    The only way for the country to break out of this crisis is
00:28:31    if there is stability here. Without stability,
00:28:36    there will be no ascension. I can say that if there is
00:28:43    no confidence inside and outside, and if there is no economic
00:28:48    and political stability in Hungary, then we are lost. This stability
00:28:55    can only be achieved, in accordance with our real potential,
00:29:05    through parliamentary work
00:29:13    and the solidarity of society as a whole
00:29:22    and agreement on the main issues. All those who undermine stability
00:29:31    out of power-motivated or individual ambition for party policy purposes
00:29:39    will destroy the country. Therefore, I ask everyone
00:29:47    to have confidence in us, give us the opportunity to carry
00:29:56    out the task we have received and to ensure stability
00:30:05    because everyone who considers promising made clear that they have
00:30:13    confidence in the government, have confidence in our future.
00:30:19    The question is whether stability can be maintained in this country
00:30:27    - we cannot maintain stability because political forces are encouraging
00:30:35    Hungarians to go on strike or demonstrate party political or power interests,
00:30:42    and in doing so they are destroying the country. I believe that I can safely say
00:30:51    that we need national public burdens, that everyone should help us
00:30:59    carry out the tasks ahead and bridge this crisis with patience
00:31:07    and solidarity with each other. I ask no more confidence from the
00:31:15    people of Hungary than we have received from the governments of
00:31:20    the world's leading countries in the past and for the future,
00:31:25    than the leading business circles and banking circles which encourage Hungary
00:31:30    to emerge from this crisis, and I can even say that there is the
00:31:36    best chance of getting away from it. The journey will be difficult until then,
00:31:43    there will be many trials ahead of us, and there will be many bitter hours
00:31:50    when we will feel bitter because of the disadvantages we have suffered,
00:31:55    nevertheless there is a way out, and the government will work to
00:32:01    that end and will do everything in its power. Thank you for listening.