Miklos Nemeth

Miklos Nemeth, a Harvard-trained economist, was appointed Wednesday to succeed Communist Party leader Karoly Grosz as premier. Veteran economic reformer Reszo Nyers, like Nemeth a member of the ruling Communist Party Politburo, was named to the newly created post of minister of state for the economy. The new appointments, to be approved by Parliament today, were announced at a news conference by Gyoergy Fejti, secretary of the Communist Party's policy-setting Central Committee.

Miklos Nemeth, a Harvard-trained economist, was appointed Wednesday to succeed Communist Party leader Karoly Grosz as premier. Veteran economic reformer Reszo Nyers, like Nemeth a member of the ruling Communist Party Politburo, was named to the newly created post of minister of state for the economy. The new appointments, to be approved by Parliament today, were announced at a news conference by Gyoergy Fejti, secretary of the Communist Party's policy-setting Central Committee.

Hungarian Prime Minister Miklos Nemeth said the Soviet Union agrees that there is no reason to keep troops in Hungary and that negotiations will begin soon on withdrawing them. Nemeth said Hungarian and Soviet officials will meet in Budapest soon to work out the details of the withdrawal.

This East Bloc nation, which has just dumped a Communist constitution, is seeking to become the first Warsaw Pact member of the Western-aligned Council of Europe. After talks Friday with Prime Minister Miklos Nemeth and other Hungarian leaders, the council's parliamentary assembly president, Anders Bjorck, said Hungary will formally apply Nov. 16.

Japan offered today to extend Hungary an assistance package that includes $500 million in credit plus technology and managerial expertise to help the country with economic reforms. The offer was announced by an aide to visiting Japanese Prime Minister Toshiki Kaifu after he met with his Hungarian counterpart, Miklos Nemeth.

Prime Minister Miklos Nemeth said Friday that Hungary will slash its armed forces by up to 25% in the next two years, scrapping many offensive weapons and regrouping them away from its western frontier. He also announced a shake-up in the defense command, replacing the army chief of staff and dismissing three deputy ministers. The cuts in hardware and personnel are on top of a 9% reduction announced last January.

The government today bowed to grass-roots pressure and agreed to consider a national referendum on a hydroelectric dam scheme on the Danube. The multibillion-dollar Nagymaros dam being built with Austrian financial backing and expertise has been strongly criticized in Hungary and abroad. Hungarian environmentalists have collected more than 130,000 signatures calling for a referendum.

Hungary and the Vatican formally ended more than 40 years of estrangement today by restoring diplomatic relations. Hungary is the second Warsaw Pact country to resume ties with the Holy See. Poland did so last July. An accord reestablishing the ties, which were severed after World War II, was signed at Hungary's Parliament by Prime Minister Miklos Nemeth and Vatican Secretary of State Cardinal Agostino Casaroli.

Premier Miklos Nemeth said today that Hungary will slash its armed forces by up to a quarter in the next two years, scrapping many offensive weapons and regrouping them away from its western frontier. He also announced a shake-up in defense command, replacing the army chief of staff and dismissing three deputy ministers.