117

S u b m i s s i o n

for the Politburo of HSWP

Following the Israeli aggression on 5 July this year, the governments of the Arab countries submitted the following requests to the government of the Government of the Hungarian People’s Republic (through their embassies):

United Arab Republic: vehicles, medical equipment and devices, machinery, basic materials, consumer goods, and telecommunications and  military equipment (submitted on a list) totaling an amount of 7 million Egyptian Pounds (982 million HUF).

Syrian Arab Republic: weaponry (anti-tank and anti-aircraft), wireless telecommunications devices, tanks, aircraft, armored vehicles, gas masks and 100 pieces of UM-2 amplifiers. No value was specified.

After studying the possibilities of fulfilling the submitted requests for aid the expert committee set up by Government Decree No. 3212/1967 proposes the following:

1./ United Arab Republic

We propose to offer the military equipment listed in Appendix 1 as non-refundable aid in the amount of 2.5 million rubles (100 mln) along with HUF 20 mln for packaging, transportation, etc costs.

In addition, the Government of the HPR has already offered – as emergency aid –HUF 2 mln, and the National Organization of Trade Unions HUF 100 thousand, primarily in medication.

On the basis of the list submitted by the Government of the UAR we propose to offer the following items from our foreign trade commodity reserves as loan (for a period of 5–7 years) under the 15 million Egyptian Pound (clearing value) credit line agreement made between the governments of the HPR and the UAR in February 1966 on economic cooperation.

Note: the UAR’s credit portfolio is currently HUF 240 mln, of which about HUF 50 mln is outstanding this year.

2./ Syrian Arab Republic

We propose to offer RUB 1.6 mln (HUF 65 mln) in military equipment and war supplies listed in Appendix 2 in order to satisfy their request as non-refundable aid along with HUF 15 mln for maintenance, packaging and transportation costs.

In addition, the Government has offered HUF 1 mln and the National Organization of Trade Unions HUF 100 thousand in medication as emergency aid.

We note here that we have recently concluded an USD 492 thousand (HUF 30 mln) credit line agreement for 5 years with the Syrian Arab republic for the supply of various military goods.

The Technological Foreign Trade Company has made an offer to provide war supplies worth USD 1 million and 65 thousand (HUF 65 mln).

3./ Iraq

A general request was submitted for any kind of economic and financial aid. We do not propose to fulfill a request like this.

4./ Jordan

HUF 500 thousand in tents, conserved food and medication has already been offered by our Government as aid. We have not received a direct request yet. We do not propose to provide any further aid at this point.

In sum:

HUF 32 mln of this in ammunition must be returned to the Defense Ministry by the military industry and the budget of the Defense Ministry must be amended to include the Hungarian forint amount of the above over the plan.

The transportation, maintenance and packaging costs (ca. HUF 35 mln) must be covered by the state budget.

If the proposal is accepted, we believe the Foreign Ministry should communicate the position of our Government to the United Arab Republic and the Syrian Arab Republic. Concurrently with this communication it should ask for their opinion on the place and time of the negotiations on the details. The negotiations would be conducted on behalf of the Hungarian People’s Republic by a delegation consisting of representatives of the Ministry of Defense and the Ministry of Foreign Affairs headed by the Deputy Minister of Trade.

The negotiating delegation should be authorized to conduct talks on the following issues, which have not been raised so far in any concrete way:

1./ Providing equipment for getting production going or increasing production under the above mentioned clearing EGP 15 mln government-provided credit line

(These opportunities include, e.g.: prompt delivery of vehicles, aggregators, compressors, machine-tools, etc. )

2./ Aid for training various skilled-workers and technicians for 100–150 people and for one year.

3./ 2–3 year moratorium on the loan recovery (roughly HUF 50 mln per year) or some part of it which is due under the 1967 credit line agreement.

4./ Providing HUF 3 mln in food supplies as aid (canned food, cheese, butter, etc.)

Budapest, 11 July 1967.

(Dr Ervin Jávor)

Appendices:

No. 1.

No. 2.

No. 3.

Appendix 1

MILITARY EQUIPMENT TO BE OFFERED TO THE UNITED ARAB REPUBLIC

Total of all these items: HUF 99,269,000, that is, RUB 2,481,000.

Appendix 2

MILITARY EQUIPMENT TO BE OFFERED TO THE SYRIAN ARAB REPUBLIC

Total of all these items: HUF 64,868,000, that is, RUB 1,621,000.

Appendix 3

I N F O R M A T I O N

on the aid to be provided for the UAR by the socialist countries

(based on the report of the Embassy in Cairo)