Magyar Hírek, 1983 (36. évfolyam, 1-26. szám)
1983-11-12 / 23. szám
JiliU-' DAVID S CHANCES FOREIGN GOODS IN HUNGARIAN SHOPS WHAT IS THE FAIR GOOD FOR? János Nyerges is head of a department of the Ministry of Foreign Trade, and special envoy of the Hungarian government to international economic organizations. He has been the official representative of the Hungarian government in GATT ever since the country became party to the Agreement, and Vice President of thet organization since his election in the Spring of 1983. We publish sections of an interview he gave to the Hungarian Television, where he spoke about the relation between Hungary and the world economy. János Nyerges: Unless a small country has some rather special resource, such as high-standard technologies, or raw materials, in other words, unless it is in a monopoly position, from one aspect or another, it cannot influence either the market, or world trade policy. The task of the small country is to adjust. And the manner of adjustment is to try to enter into agreements, which do not leave one unprotected against the will of the stronger parties. Miklós Karácsondi: It is not a daydream, then, on our side to talk of trade policy of any kind? In any case, businessmen advise us to fill the gaps as they occur. J. Ny.: This is sound advice and they are altogether right, but those gaps do not simply occur, they have to be negotiated. M. K.: How does the fact that ice form part of an alliance system, that of the socialist co. annuity, influence our negotiation position? J. Ny.: Nobody can look on Hungary as an isolated country, thinking that here is a small country, we can do as we like with it. By being a member of an alliance system, Hungary is also a member of an economic alliance: this means, for instance, that we have a choice of markets. A small country with such a background can take up a very different position on trade policy matters. M. K.: We frequently speak up on international platforms. But how much attention is given to this? To what extent does the fact that the Hungarian economy enjoys a rather good reputation lend substance to our voice? J. Ny.: Not only the economy, but first and foremost Hungarian polities enjoy a good reputation. The relations we have established since 1956, the political atmosphere, the imposing manifestation of national unity, the predictability of Hungarian foreign policies which János Kádár repeatedly insists on: these are the sources of our credibility. In addition, we have been able to establish with oil economic reforms rational, easily interpreted, partnerships, methods that apply equally to different parties. This provides the opportunity for mutually advantageous relations with countries of other social systems. But I emphasise, the Hungarian standing is due to Hungarian politics. M. K.: And yet, when you negotiate, you probably often see yourself in the position of David, who has to hold his place confronting Goliaths. J. Ny.: Ever since I have been negotiating, I have always found myself confronted by Goliaths. I have to behave, therefore, as those who face Goliath ever did: either I have to strike him with a slingshot, or I must make an alliance with another Goliath, or I must make this Goliath understand somehow that whatever I recommend to him is also in his own interest. MIKLÓS KARÁCSONDI PHOTO: JENŐ BOROS I went into three Budapest shops chosen at random, and made a list of the goods of foreign origin I found. The list grew to such a length that I can only pick something here and there now. I discovered Indian skirts, dresses made of French material, Malaysian T shirts, Italian pullovers in a fashion shop on József Nádor tér. In a nearby delicatessen shop, I saw Bulgarian gherkins, and ketchup, Soviet champagne, Portuguese sardines, Dutch slimming biscuits, Greek lemonjuice, chocolates from the Federal Republic of Germany, cheese from Czechoslovakia, food seasoning from Yugoslavia, Cuban fruit juice, and Vietnamese tinned mushrooms. The first thing I saw in the show-window of the perfumery shop opposite was a selection of French perfumes, L’air de fleur by Nina Ricci, Diorella by Dior, lipsticks by Max Factor, Scholl sandals, and Austrian shampoos. I did not compare the ratio of these items to those, which bore Hungarian labels in any of the three shops. Naturally, there were considerably more Hungarian goods. Looking at the national average, about 14 — 15 per cent of the commodities in Hungarian shops are imported. A considerable part of these makes up for something not produced in Hungary. Coffee (as much as 33,000 tonnes a year), cocoa, tea, tropical fruit, and spices have to be imported, for these cannot be grown in our climate. Hungarian industry does not manufacture a number of consumer goods, and these are imported from socialist countries in the framework of cooperation with members of the Council of Mutual Economic Assistance. Private cars are one of these items, of which more than one million are now on the roads, and so are watches, cameras, and most of the radios and tape recorders, and some of the television sets. It is no secret, that Hungary will be forced to economize imports for quite a long time yet. The balance of payments and of foreign trade demand considerable circumspection in spending convertible currency. An economical handling of imports is not a Hungarian speciality. Hungary cannot, however, give up achieved standards of what is available in shops; thus French perfumes, Scotch whisky and American cigarettes are available, perhaps at a somewhat higher price than earlier, due to their luxury nature, and to the changes in the exchange rates. The increasing number of licence purchases, or of cooperation agreements, ensure that high-quality foreign goods, matching the genuine article in every respect, are available on -the Hungarian market. Coca Cola, Pepsi Cola, Deit, Traubi Soda, recently Fanta, and of alcoholic beverages Martini vermouths have been bottled in Hungary for many years. Nivea cosmetics, Odol toothpaste, Jet deodorants, Levi Strauss jeans, Triumph and Felina lingerie, are made in Hungary now. A few recent items: The East European manager of Philip Morris announced in Budapest that the Eger Tobacco Factory has purchased the licence for L & M cigarettes. Eger made L & M are already available in the shops. We learned from the manager of Coca Cola at the Budapest International Fair that the production of Kolynos toothpaste has already started. Pierre Cardin Hongric articles have been available since the opening of the Cardin boutique, in Budapest. LENKE ELEK Dr. László Kőrösvölgyi, general manager of the HUNGEXPO Enterprise who is responsible for the organization of fairs and exhibitions was asked the question which is the heading of this article on Hungarian Radio’s “168 hours” magazine programme on the occasion of the international autumn fair for consumer goods (BNV) held in Budapest. The doubts of the economist who asked the question started the discussion : “Even the rich countries economize under the prevailing adverse world economic conditions. In spite of that, the Fair is luxurious and elegant. Why?” László Kőrösvölgyi answered: “When a bride is getting ready for the wedding, she has to be decked out properly, for that is the only way to please. The merchant is well aware of this. That decking out was e.g. instrumental in the appearance of the skin re-vitalizer cream, Helia D, an invention of Aunt Nedecki, who also gave the world the hair-regenerating concoction Patientia.” The economist raised his next unpleasant question: “Why was it necessary to come to the Fair with this Helia, if there is not enough of it?” Dr. Kőrösvölgyi described the debut of the Helia as introductory advertising. He added: “When selling becomes harder more has to be spent on advertising.” The economist did ndt leave this unanswered either. The Western example is not in its place in this case, he retorted, since there is a buyers’ market there, while ours is a sellers’ one. László Kőrösvölgyi cut back: “The situation here, at the Fair does not in the least differ from the West, since this is an international fair, where the value judgement of the world market dominates. It is not possible to handle the technical development and commercial activities separately,” he added. ISTVÁN BALÁZS PHOTO: VIKTOR GABOR 30
