January Judit Ember completes her three-parted documentary film "Menedékjog" (Right of asylum) on the fate of the Imre Nagy group at the Yugoslav embassy and later in the Rumanian exile. The film is banned.

The Hungarian League for Human Rights publishes a summons in Irodalmi Újság (Literary Newspaper) in which they call for support for the memorial to be erected in the Pére Lachaise cemetery in Paris to honor the martyrs of the revolution and remember the Imre Nagy trial. Following the call from France the architect István Nyíri and the electrical engineer Gábor Németh establish the memorial Committee for Imre Nagy and His Fellow Martyrs. The samizdat publisher Magyar Október (Hungarian October) publishes Tibor Tollas's anthology "Gloria Victis", a collection of poems on the Hungarian revolution by authors from 35 different countries.

January 1. The new laws on turnover tax, personal income tax and the new passport come into force; consumer prices go up. According to official calculations the prices of goods and services purchased by the people increased by 53%.

A communiqué is issued in Budapest, signed by several hundred intellectuals, in which they condemn the Ceausescu regime and offer their solidarity to those fighting against the dictatorship. An international press conference is held at Lajos Für's home lead by Miklós Vásárhelyi in which the communiqué is made public. On January 29 a Refugee-committee is established in order to give aid to the Rumanian refugees who fled to Hungary.

January 4. For the first time in Hungary applications for a world-wide valid passport are submitted to police offices nationwide.

January 7. Daily papers inform their readers that as of January new houses and apartments can be bought or built under new terms. Allowances for new housing are increased in proportion to the social and financial conditions of the family, but bank loans will be available only for higher interest rates.

January 8. Five cities are given permission to publish an independent newspaper.

January 13. The Hungarian National Bank, the National Economic Chamber and 22 financial institutions make an agreement on harmonizing the trading of securities.

January 14. The Council of Ministers establishes the Committee for Economic Planning.

January 16. The first open meeting of the Central Committee of the Communist Youth Organization is held. The topic of the session is the challenges young people have to face for the future.

January 19. The first securities trading session takes place in the International Trading Center in Váci street.

January 20. Mikhail Gorbachev's new book, "Perestroyka and Glasnosty", printed in 25 thousand copies, is reviewed and put on display.

January 21. A joint communiqué is issued by the HSWP, the Finish Social Democratic Party and the Italian Socialist Party calling for European disarmament.

January 24. The journal Új Tükör (New Mirror) republishes the memorandum written by writers and journalists in 1955 in which they demanded the abolition administrative measures in cultural matters.

January 25. Mátyás Szurös, foreign secretary of HSWP admits that the issue of Transylvanian refugees is has sound grounds, and that immediate action will be taken.

January 26. At a press conference the Hungarian National Bank announces that - though the financial balance has improved considerably - the country's debt burden is still significant.

January 28. Open discussion is conducted on the issue of publicity, and a call is made for establishing the Publicity Club.

January 30. The Hungarian Democratic Forum (HDF) holds its public meeting in the Jurta Theater.

February György Marosán writes a short article for Mozgó Világ (Moving World) entitled "Inventory-testament". In his view "there is only one fix point" in the history of Hungary after 1945, and this is "the program of the Revolutionary Workers'-Peasants' Government issued after November four, 1956."

In response to the flood of refugees from Transylvania and inter-ministerial committee is set up to deal with the matters of refugees immigrating to Hungary.

February 1. A demonstration is held in front of the Rumanian embassy in Budapest criticizing Ceausescu's policy.

February 2. A committee for employment management is set up in the capital city. Its task will be to help unemployed people to find a new job.

February 3. Péter Várkonyi, foreign minister negotiates at the UN Center in Geneva, while József Marjai, deputy Prime Minister visits Moscow.

February 4. The Supreme Court of the Soviet Union rehabilitates Buharin and his associates 50 years after their execution.

February 5. The Democratic Union of Hungarian Germans signs an agreement with representatives of the German Democratic Republic.

February 7-10. Among others the following films are shown at the XXth Hungarian Film Festival: Gyula Gulyás-János Gulyás: "No breach of law"; Bálint Magyar-Pál Schiffer: "At the river Danube"; Ferenc Kósa: "The other man"; Sándor Sára: "A thorn under the nail."

February 8. The Danube Circle organizes a protest walk at Bem square.

February 10. Deputy Prime Minister Péter Medgyessy announces that the reorganization of the coal mines in the Mecsek, in Tatabánya and in Nógrád County producing deficit will start this year.

February 12. The Hungarian foreign spokesman holds his first press conference.

February 15. Ceremonies are held simultaneously in Budapest and Moscow to commemorate the 30^th anniversary of the Soviet-Hungarian and the Hungarian-Soviet Friendship Societies.

February 17. The People's Patriotic Front discusses issues of publicity in the press.

February 18. The Ministry of Social and Health Affairs hold a press conference about the fees to be paid for medical services.

February 19. Ákos Mester talks with Iván Darvas about his career, the years he spent in prison and the role he played in the 56 revolution in Radnóti theater. Hungarian Radio gives permission to broadcast the talk only in 1989 June.

February 20. A new corporate body is established under the name of The National Alliance of Entrepreneurs.

February 22. György Bence, István Eörsi, Ferenc Kőszeg and Vimos Sós establish the Passport Committee which intends to eliminate the remaining anomalies of the new passport regulations.

Károly Grósz receives writers at the House of Parliament.

February 23. Soviet head of state Andrei Gromiko carries on negotiations in Budapest.

Miklós Németh, secretary of the CC of HSWP visits Moscow.

February 24. Károly Grósz visits the National Association of Hungarian Journalists.

February 25. The Council of Ministers sets up an inter-ministerial committee to handle the matters of Rumanian citizens coming to Hungary.

February 29. A conference on church history is organized at Eötvös Lóránd Univeristy in Budapest on the life of Péter Pázmány.

The presidency of the National Council of Trade Unions makes public its February 26 statement in which they strongly refute any attempt "to establish organizations in opposition to the trade union movement."

The delegation of the North-Atlantic Assembly arrives in Budapest.

March 4. The Central Statistics Agency holds a press conference on consumer prices. In January the price rose by 8% with respect to December.

An international stock exchange conference is held in Budapest.

March 7. An international journalism conference on glasnosty is held in Budapest.

March 10. The Council of Ministers sets guidelines for keeping the rise of prices under control. The government spokesman states that the Council of Ministers does not recognize HDF, which was established moths before.

The homes of opposition members are searched by the police. Fliers and other printed publications are confiscated.

March 12. Sándor Gáspár, president of the National Council of Trade Unions gives an interview to the journal Képes 7): "After 1956 order was restored and it is still functioning."

March 14. Károly Grósz meets with church leaders.

The Council of Ministers sets new directives in which they state that no further centrally initiated rise in prices is to be expected for the rest of the year.

March 15. On the morning of the national holiday the police effectuate "preventive" arrests.

Some 15 thousand people demonstrate in Budapest along the route of Petőfi square - Batthyány sanctuary lamp - Lajos Kossuth square - Bem square - Batthyány square. Miklós Gáspár Tamás evokes the spirit of the 56 revolution on the pedestal of the Kossuth sculpture, the speech prepared by the arrested Gábor Demszky is read out by Róza Hodosán, and Dénes Csengey talks at the Ráday College. Several participants of the various events are arrested.

March 17. A call is made for establishing the Network of Free Initiatives (NFI). It is established on May 1.

János Kádár meets with leaders of industrial companies. In a follow-up interview he states that there is no crisis whatsoever in Hungary.

March 18. An international scientific conference opens in Győr, discussing alternative routes of reforms in Eastern Europe.

March 23. The meeting of the CC of HSWP discusses a proposal specifying the enforcement of the leading role of the party and the development of the system of political institutions. The National Conference of HSWP is summoned to meet on May 20.

March 24. It is announced that Béla Bartók's remains will be taken home from the United States in June 1988.

March 25. The Office of Information and the Office of Councils are dissolved. The Office of the Council of Ministers is set up.

March 26. The ministry of finance announces that as of April 1 the interest rate of long-term savings will be raised, and the import tariffs will be decreased.

March 30. In the Tinódi film theater thirty seven young university students and graduates establish the Federation of Young Democrats (FYD).

March 30. Péter Medgyessy, deputy Prime Minister announces that the Council of Ministers intends to introduce real interest rates.

April 1. János Kádár gives an interview to the journal Magyarország (Hungary), also published in the soviet journal Ogonyok. Kádár evaluates the events in 1956 and his own role, and states that "Imre Nagy was not a counter-revolutionary from the beginning either."

The obligation to announce a rise in prices in advance is lifted.

April 6. Gábor Demszky, Ferencz Kőszeg, Imre Mécs, Ottilia Solt and Tibor Philipp issue the foundation statement for the Independent Legal Aid Service.

April 7. The Council of Ministers submits a proposal to the Presidential Council to modify the decree regulating the operation of cooperative societies dealing in the procurement and marketing of consumer goods.

April 8. János Kádár receives marshal Viktor Kulikov, commander-in-chief of the unified armed forces of the Warsaw Treaty Organization.

Mihály Bihari, professor of law at the Law School of Eötvös Lóránd university, Zoltán Bíró, chief research assistant of the National Széchenyi Library, Zoltán Király, editor of the Szeged regional studio of the Hungarian Television, and László Lengyel, chief associate of the Financial Research Companay Ltd. are expelled from HSWP.

April 11. The price of certain items produced by paper-industry are raised by 7.1%.

April 15. A meeting is held in Debrecen under the title "Politics and publicity."

April 20. A report prepared by an expert committee on the request of Ófalu in Baranya county states that placing radio-active waste near the village involves high environmental risks.

April 21. Mátyás Szurös delivers a talk in Balassagyarmat. He talks about issues of foreign policy, including the Hungarian-Rumanian relations.

April 22. The Council of Ministers discusses the draft of the law regulating associations. A scientific advisory committee is set up to work with the Council of Ministers.

In Austria a bill is passed by the Parliament regulating tariff reductions on Hungarian goods.

April 23-24. A two-day higher educational parliament is held in Veszprém at the University of Chemical Industry. The higher educational youth parliament decides that youth organization engaged in political activities may be formed at universities.

April 25. Károly Grósz is interviewed by Der Spiegel. Among other things he says: "In 1956 we were very close to reintroducing a multiparty system. More than 70 different parties emerged that year. Only one of them wanted socialism, and this was the one that survived."

The Hungarian State Railway Company announces that as of May 1 the price of tickets to Western Europe will be raised.

April 27. The first Hungarian ecological congress has its session.

April 28. Leaders of HSWP and the National Council of Trade Unions discuss the further development of political institutions and the relations between the party and the trade unions with a view to these changes.

April 29. The Presidential Council modifies the decree regulating the operation of cooperatives dealing in the procurement, marketing and production of consumer goods.

The committee for social and health affairs of the House holds a session in which it is stated that the issue of permitting abortion must be reconsidered and the regulations must be changed.

The first McDonald's self-service restaurant in Hungary opens in Budapest.

April 30. The Federation of Young Democrats has its general assembly in the Tinódi film theater.

May Gyula Juhász's paper entitled "National identity and Hungarian identity in the 20^th century" is published in Új Forrás (New Source). In his view "the events in October and the beginning of November, 1956 were brought to an end by troops of a foreign army, which evoked the image of the war of independence in the majority of the Hungarian public that has remained in our collective memory up to this very day."

In the appendix to the journal Medvetánc (Bear's Dance) two papers are published under the titles "Turnabout and Reform" and "Proposal for the Reformation of Publicity and the Mass Media."

May 2. The department of building of the Baranya County Council refuses to give permission to build the nuclear waste base near Ófalu.

May 4. Károly Grósz visits Great Britain.

The Council of Ministers sets up a budgetary reform committee.

May 6. The presidency of the National Council of Trade Unions discusses the preparations necessary for the new company law and the issues related to organized holidays supported by the Unions.

May 9. The meeting of the CC of HSWP makes preparations for the new law of associations.

May 9-10. The Israeli foreign minister Simon Peresz pays a two day unofficial visit to Hungary and meets with Hungarian leaders.

May 12 Mátyás Szurös, secretary of the CC of HSWP receives the leaders of ethnic minorities in Hungary.

May 13. It is announced that as of June 1 the interest rate and the premium interest of savings by private people will be raised.

May 14. By the new traffic regulations, except for through traffic on a few streets, all cars are banned from the city center of Budapest.

The Democratic Trade Union of Scientific Workers is formed in the Metro Club.

May 19. The Council of Ministers discusses the implementation of the 1987 economic plan and budget, and reviews the issues relating to the restructuring of the industry.

May 20-22. The National Conference of HSWP relieves János Kádár of his office of secretary general and elects him chairman of the party. He is succeeded by Károly Grósz. The CC and the Politburo are also renewed. The mebers of the Politburo are: János Berecz, Judit Csehák, Csaba Hámori, Pál Iványi, János Lukács, Miklós Németh, Rezső Nyers, Imre Pozsgay, István Szabó, Ilona Tatai. The secretaries of the CC are: János Berecz, György Fejti, János Lukács, Miklós Németh, Lénárt Pál, Mátyás Szurös. One third of the CC comprise new members. András Gyenes is elected chairman of the Central Supervisory Committee, Imre Somogyi becomes its secretary.

May 23. Mikhail Gorbachev sends a telegram congratulating János Kádár and Károly Grósz in their new posts.

May 24. Ronald Reagan sends a telegram congratulating Károly Grósz in his new post.

After a visit by the minister it is concluded that the building of the dam in Bős-Nagymaros is well on schedule.

May 26. The joint parliamentary work-team of the German Social Democratic Party and HSWP issues a statement expressing appreciation for the beneficial influence of economic cooperation on Western-Eastern relations.

May 27. A demonstration id held in front of the Austrian embassy in Budapest protesting against the Bős-Nagymaros dam.

June The journal Alföld (Plain) publishes excerpts of the film script "No breach of law" made by Gyula Gulyás-János Gulyás. János Nemes's paper entitled "The Rákosi documents" appears in Mozgó Világ. József Lengyel's book "Confrontation" is out.

The Journal Világosság (Brightness) organizes a roundtable talk under the title "Twenty years after..." The participants are Gábor Nemes, Rezső Nyers, Béla Köpeczi, Endre Gömöri and Miklós Almási. Comparison is made between 1956 and 1968.

June 1. The interest rate of savings is raised by 3%.

June 1-2. The secretaries of economic policy of communist parties whose countries are members of Comecon meet in Budapest for two days.

June 2. The Council of Ministers discusses issues of developing higher education and introducing a unified taxing system for entrepreneurs.

Hungary is awarded a 70 million USD loan by the World Bank to develop food industry.

June 3. The Mormon church is legally recognized in Hungary.

June 5. The Historical Justice Committee (HJC) issues a communiqué entitled "We want justice!" to mark its foundation. The statement becomes public only through Western press. The National News Agency issues a confidential news item on the foundation of HJC. The communiqué is signed by five descendants of those executed in the Imre Nagy trial and 34 convicted revolutionaries - then belonging to different parties and of various different occupations. HJC, the Inconnu group and the Network of Free Initiatives also publish a communiqué: they appeal to the public to demand that those executed after the 56 revolution be given fair burial, that a national memorial be erected and that the criminal records of those convicted in 56 be abolished. They invite everybody to attend a memorial to pay tribute to the heroes of the revolution on June 16, on the 30^th anniversary of the execution of Imre Nagy and his companions.

June 6. Károly Grósz receives Albert Vlaszov, Mikhail Gorbachev's personal representative. He is informed of the talks in the Gorbachev-Reagan summit meeting.

June 7. Because of anomalies related to the buying up of wine in the region some 2 thousand vine-growers demonstrate in Kiskőrös.

The first deputy to the U.S. secretary of state confirms in his statement that Károly Grósz has been officially invited to visit Washington.

June 8. The Association of Hungarian Architects is the first to protest against the elimination of Hungarian villages in Rumania. (In the course of this month several other organization give voice to their objection: The National Council of Trade Unions, The Communist Youth Organization, the Hungarian Academy of Sciences, the National Peace Council, and representatives of the Hungarian churches.)

June 10. A political meeting is held in Budapest on the occasion of the anniversary of the fusion of the two workers' parties.

The CC of the Communist Youth Organization establishes the Széchenyi Foundation to support young technical intelligentsia. The Council of Ministers also makes a contribution to the basic funds.

June 12. Talking at the meeting of commanders of the Workers' Militia Károly Grósz says that if necessary, "administrative measures" will be taken against the opposition.

June 13. William Verity, secretary of trade is hosted by Károly Grósz.

The presidency of the National Council of Trade Unions announces that Sándor Gáspár, chairman, and Tibor Baranyai, first secretary requested retirement.

June 15. The Congress of the United States holds a memorial session commemorating the 30^th anniversary of Imre Nagy's death.

In place of the dissolved Office of Councils the College of Councils is set up. Károly Grósz becomes chairman of the new body.

June 16. A conference on world economy is held in Washington. Hungary is represented by Miklós Németh.

On the 30^th anniversary of the execution of Imre Nagy and his companions a symbolical gravestone is inaugurated in section 44 of the Pére Lachaise cemetery, Paris for Imre Nagy, Géza Losonczy, Pál Maléter, Miklós Gimes, József Szilágyi and all those executed after the revolution (designed by László Rajk jr.; built by Ernő Nagy). Speeches are delivered at the grave by Tibor Méray, Ferenc Fejtő, chairman of the Hungarian League for Human Rights, Gilles Martinet, on behalf of the French Socialist Party, Caludio Masrtelli, on behalf of the Italian Socialist Party, Pierro Fassiono, on behalf of the Italian Communist Party, Miklós Vásárhelyi, a fellow convict, Jenő Surjánszky, on behalf of the rebels. - In the evening a memorial ceremony is held in the great hall of the Musee Social addressed by Erzsébet Nagy, Pál Lőcsei, Arthúr Kárász and, on behalf of the World Organization of Hungarian Freedom Fighters, Alajos Nagy. Aliz Halda reads out the call made by the Historical Justice Committee.

Independent groups hold a commemoration at various places in Budapest. Sándor Rácz and Jenő Fónay make a speech in section 301 of the Rákoskeresztúr cemetery, Gáspár Nagy recites one of his poems, then Imre Mécs and László Hegedus read out the names of the 244 people executed who are known for sure to rest in section 3January The commemoration in the cemetery and the several hundred participants are not harassed by the police. The celebrating people can not get near Heroes' square, so most of those already gathered together walk to the Batthyány-Imre Nagy sanctuary lamp, though there they also run into a police cordon. Some of the roughly 200 people present place flowers at the foot of the lamp, walking along a double cordon of police forces. Speeches are prevented by the police, and they start breaking up the crowd by using gas spray and batons. Several people are arrested. Then the demonstrators listen to the speeches of János Kis and Imre Mécs in front of the television building in Szabadság square, and then, chanting Imre Nagy' name, march to Vörösmarty square, where the police breaks up the crowd by force. At 19:30 some 300 people attend the memorial mass in the Franciscan church in Mártírok street.

On the 30^th anniversary of the Imre Nagy trial issue No 24 publishes an interview made by Sándor Szilágyi with Miklós Vásárhelyi on the trial.

June 18. The Wall Street journal publishes an article remembering Imre Nagy, entitled "Imre Nagy Remembered" on the occasion of the Burial in Paris.

Árpád Göncz writes a letter to Károly Grósz concerning the events on June 16. In it he reminds Grósz of his historical and moral responsibility, asking him to distance himself from earlier methods not only in words but in deeds as well.

June 21. The meeting of the National Council of Trade Unions elects Sándors Nagy its new general secretary. In his speech Károly Grósz mentions the need to change the relationship between the Council of Ministers and the Trade Unions.

The contents of letters exchanged between HSWP and the Rumanian Communist Party become known. The Hungarian party makes it clear that the situation of the Hungarians in Rumania are of vital importance for Hungary, and proposes a meeting between the foreign secretaries of the two parties.

June 21-22. A two-day international conference is held in Budapest on world economy organized by the Financial Times.

June 22. Marshal Viktor Kulikov, commander-in-chief of the unified armed forces of the Warsaw Treaty Organization comes to visit Budapest. He is received by Károly Grósz.

The mortal remains of Béla Bartók start the journey to Hungary.

June 23. The CC of HSWP discusses the modification of the electoral Bill.

June 24. 60 thousand Hungarians go on a pilgrimage to Darázsfalva in Burgenland to participate in the mass celebrated by John Paul II.

Károly Grósz responds to Árpád Göncz's letter. In his view the situation is seen very similarly by both of them, but the way-out is sought in different directions. He also says that he cannot deny 42 years of the communist past, he only wants to do away with the distortions and the crimes.

June 27. 70 to 80 thousand people protest in Budapest in Heroes' square against the demolition of villages in Rumania. The Rumanian embassy refuses to take the petition written by the organizers of the demonstration.

At a meeting of the national presidency of the Patriotic People's Front Károly Grósz brings up the possibility of reconsidering the role of the Front.

June 28. The Politburo of HSWP discusses the 1989 national economic plan, then reviews the issues concerning the building of the dam at Bős-Nagymaros and the possibility of establishing local youth organizations at universities and colleges.

László Paskai is ordained archbishop of Esztergom in the Vatican.

In Rumania, as a response to the Hungarian objections to "reorganizing the structure of settlements" in the country, the general consulate in Kolozsvár is shut down.

June 29. The summer session of the Parliament commences. In place of the retired Károly Németh Brunó Straub F., member of the Academy of Sciences is elected president of the Presidential Council. Three new ministers get into the Council of Ministers: Imre Pozsgay becomes minister of state, Kálmán Kulcsár minister of justice, and Tibor Czibere minister of culture. The new speaker of the House is István Stadinger. The House discusses the implementation of the 1987 budget and the program for reshaping the structure of industry.

June 30. The economic and trading agreement signed earlier by Hungary and the European Economic Community is approved in Brussels.

July The journal Nagyvilág publishes a passage from Ilja Ehrenburg's work "People, years, my life" in which the author describes in detail the chronology of events taking place in Hungary in 1956 based on the information received from the soviet news agency, TASS as well as his own personal opinion.

July 1. At the end of the summer session of the Parliament a committee is set up to work on the draft of the new constitution. A communiqué is issued to renounce the abolition of villages in Rumania.

The resolution issued by the Central Committee of the Rumanian Communist Party states that further nationalist and counter-socialist activities took place in Hungary supported by official approval.

The World Bank and Hungary signs an agreement for a loan of 200 million USD for the program adjusting the structure of industry, and another one of 50 million USD to fund the plan for technological development. To place restrictions on the peculiar ways of "granting credits" common between Comecon countries, the Council of Ministers cuts off the special state subsidies for products of "strategic importance" intended for socialist export.

After modifying the relevant laws in Austria, Hungary can now enjoy Austrian tariff preferences.

The Hungarian Polling Institute is established.

July 2. Károly Grósz says he is still willing to accept the invitation received as Prime Minister to visit Bucarest in order to carry on direct negotiations about the deepened conflicts concerning the plans to reorganize settlement structure. He stresses that Hungary still does not intend to revise the borders shaped after World War II, and does not intend to request any mediation on the part of international organizations to resolve the differences, but it would hinder relaxation of the tension between the two countries if the relationship between two neighboring countries in Central Europe deteriorated permanently.

July 3. The price of cigarettes goes up by 14%, the price of beers by 13%. According to the Council of Ministers this is the only way to fund the extra costs necessary for health care and for increasing family allowance.

July 4. István Huszár is the new first secretary of the Patriotic People's Front, after his predecessor, Imre Pozsgai is appointed minister of state.

The Czechoslovakian and the Hungarian foreign ministers meet in Komárom. They both emphasize the importance of Leninist policy towards the national minorities.

July 5. At the meeting of the defense ministers of the Warsaw Treaty Organization in Moscow all the participants support the reduction of strategic arms by 50%. Károly Grósz and Mikhail Gorbachev meet in Moscow. They agree that the Hungarian and soviet reform ideas show similarity in a number of points.

July 6. US president Ronald Reagan conducts negotiations with marshal Sergei Ahromejev, soviet chief of staff. They set up a joint committee in order to prevent dangerous military incidents.

Deputy minister of finance László Békesi says the Hungarian state finances will collapse in a year or two if instead of major reforms only minor modifications are made in the budget.

July 7. Sándor Nagy, the new general secretary of the National Council of Trade Unions states that the right to strike must be regulated in the new law for trade unions in preparation, specifying precisely the ways and the framework of going on strike so that no political overtones should arise.

In one of the committees of the Patriotic People's Front it is suggested that the newly established social organizations should be allowed to engage in political activities in case they wish to do so.

According to the statistics of the Central Statistics Agency in 1987 1.9 million people lived under the social minimum set at 3,840 HUF, while the income of 600 thousand people did not even amount to the subsistence level of 2,850 HUF.

July 9. The Serbs living in Kosovo and Crna Gora hold demonstrations in the Vojvodina Autonomous Province of Yugoslavia against the alleged Albanian nationalism. There is a lot of talk about the demonstrations being aimed at Hungarians.

Decades after their death the party membership of the former soviet leaders (e.g. Buharin, Rikov) is restored in Moscow.

July 11. Károly Grósz gives an interview to the American journal Newsweek, in which he says: "The demonstration on June 16 instigated fascist propaganda, chauvinism and irredentism. (...) Signs of a civil war were emerging in 1956, and military intervention by the West was impending. The military action taken by the Soviet Union prevented this from happening." He states that it was right to bring Imre Nagy to court, because "a prime minister should not violate the laws and the constitution."

Mikhail Gorbachev arrives in Poland for a four-day visit. The joint communiqué stresses the similarity between the reform policies of the two countries.

July 13-14. The meeting of the CC of HSWP adopts the more radical program for reshaping the economy of the country. This involves the application of market-oriented measures (liberation of import, devaluation of the forint, the transformation of the price and wage system, predicting that 80 to 100 thousand people may lose their job). They consider it to be justified that the right of assembly and the right of public meeting be regulated by law. It is the first time that the meeting is broadcast by the Hungarian television.

It is officially announced that 6,178 Rumanian citizens appealed for a permission to reside in Hungary in the first half of the year. The Council of Ministers sets up a special fund to provide financial support for them.

The relevant committee of the Parliament is informed that a unified tax for entrepreneurs will be introduced in 1989.

July 15. There is a two-day summit meeting in Warsaw attended by the leaders of the member states of the Warsaw Treaty Organization. The issued document acknowledges for the first time that the socialist countries have military advantage in a number of fields.

July 16. The interest rate of several types of loans for private people given by the National Savings Bank is raised for the second time in half a year.

July 18. The Hungarian forint is devalued by 8% with respect to convertible currencies.

July 19-30. Károly Grósz takes a round trip in the United States. On the first day of his two-week visit he talks with businessmen from Chicago. On July 22, speaking in San Fransisco, he says it is quite possible that foreign companies will have a chance to establish companies in Hungary even with 100% foreign ownership. On July 24 he states in New York that Imre Nagy and his companions will not be rehabilitated by the Council of Ministers, but "if the families so wish, they can be buried under appropriate circumstances." He meets with several hundred Hungarian living in the US, most of whom left Hungary in 1956. His statements concerning Imre Nagy and his trial evokes deep indignation. On July 26 in Washington, DC he points out that maintaining the one-party system in Hungary is not an issue of principle, but political pluralism can also be achieved in the existing system. On July 27 Ronald Reagan receives him in Washington. The host thinks it is encouraging that Hungary can now see that without political changes the economic reforms will not meet with success.

July 19. One of the main awards at the Karlovi Vary Film Festival is won by Sándor Sára's "Thorn under the nail", which sheds light on the abuses of authority by leaders in Hajdú-Bihar county.

July 21. Jichak Samir Israeli Prime minister receives István Szabó, memeber of the Politburo of HSWP who visits Israel as an expert on cooperative societies. István Szabó states that Hungary made a grave mistake when it broke relations with Israel.

July 22. In the presence of American observers the first SS-20 middle-range missiles are destroyed in the Soviet Union.

July 25. Eduard Shevarnadze soviet foreign minister announces that some details of the military budget will be made public soon. At the same time he suggests that military industry should be placed under civil control. In his view "the fight between political systems" is a thing of the past.

The price of gas is raised by 2 HUF per liter, the price of diesel fuel by 1.3 HUF.

July 26. The presidency of the National Council of Trade Unions writes a letter to the Council of Ministers in which they criticize the government for demanding more and more efforts on the part of the population in order to balance the budget. The trade unions complain that they were not consulted before the new price and interest rate measures affecting a large number of people were introduced.

July 28. The Council of Ministers responds to the criticism by the National Council of Trade Unions. They are still willing to negotiate the trade unions on comprehensive issues, but not on minor details like the devaluation of the forint or the cut-back on state subsidies.

The Communist Youth Organization believes that it can no longer take the burden of representing the interests of all young people, therefore it intends to establish the National Council of Hungarian Youth which could integrate the different youth organization, including the Communist Youth Organization.

July 30. Hans-Dietrich Genscher, foreign minister of West Germany meets Mikhail Gorbachev in Moscow to prepare Chancellor Helmut Kohl's visit scheduled for October.

In his message to the Hungarian people US president Ronald Reagan expresses his confidence that there will be a good chance to develop bilateral relations between the two nations.

August 2. In Szigethalom, in the presence of representatives of the Hungarian People's Army and the soviet southern army group, the village community is assembled to discuss the request of the local people to reduce the noise caused by military routine flights and other environmental damages.

August 3. The ministry of trade anticipates that the shortage of paper supplies will be over by November or December, which was caused by the fact that the Soviet Union reduced its scheduled paper export to Hungary by 700 thousand tons. (Later this amount, on Hungarian request, was modified to 500 thousand tons.)

Under the agreement made between HSWP and the Soviet Communist Party Hungarian scholars are granted the possibility to study the documents related to the Hungarian emigrants living there and those concerning the activities of the Communist International.

By the decision of the ministry of industry the miners will receive their usual loyalty bonus in 1988 too; earlier it was said that there was no money available to cover this cost, and therefore some were thinking of going on strike.

August 4. Gyula Borics, secretary of the ministry of justice says in a statement that the ministry will revise the regulations which placed the former 1956 convicts at a disadvantage. Károly Grósz says that "for humanitarian reasons" the Hungarian citizens executed for their role in 1956 might be given a proper burial.

August 6. In the first half of the year consumer prices rose on the average by 16.5% in Hungary. The price of food products, energy and clothing was 20% higher than a year before. According to the Central Statistics Agency the inflation rate reached 80% since 1980.

August 9. The Politburo of HSWP confirms that it is in Hungary's interest that the agreement concerning the reduction of traditional armed forces be extended in its first phase to the troops stationed in Hungary. The body urges that humanitarian and human right issues be given more emphasis in the cooperation between socialist countries.

After Szigethalom the residents of Százhalombatta are given a promise that no more routine flights will be made from the Tököl air base on weekends and holidays; moreover, flights will be stopped even in weekday afternoons.

August 10. The UN requests Hungary to send - for the time being for 6 months - 15 representatives to join the military observer group overseeing the cease-fire between Iraq and Iran.

György Marosán jr. becomes the new government spokesman in the rank of deputy minister. At the meeting of the Council of Ministers 10 new committees are set up in order to work on the revision of the constitution.

The formerly confidential budget of the Union of Pioneer Movement and that of the Communist Youth Organization are made public. In 1987 61% of the almost 1.5 billion forints available for the two organizations came from government sources.

August 11. Because of the building of the dam at Nagymaros the river Danube is diverted into a temporary bed at Visegrád.

August 12. The revision of the constitution begins.

August 13. András Hegedüs, former Prime Minister of Hungary gives an interview to Képes 7. He says: "in my view 1956 was a national uprising, initiated not by revolutionaries, but rather by the nameless mass of national resistance. It was this resistance that later gave rise to the national uprising." Képes 7 begins to publish passages from Hegedüs's book entitled "Under the Spell of History and Power" which is to appear soon.

As part of the St. Stephen memorial ceremony the Saint Right Hand is taken to Székesfehérvár and placed in the Nagyboldogasszony cathedral. On the 950^th anniversary of the death of the founder of the Hungarian state László Paskai, archbishop of Esztergom celebrates a mass in the presence of several thousand pilgrims in Fehérvár.

August 15. Another small church, the Hungarian Islam community is given official recognition.

August 18. President Brúnó Strub F. receives archbishop Colasuonno who participates in the ceremony on the anniversary of St. Stephen's death as the personal envoy of the Pope.

August 19. In Székesfehérvár, at the ceremony held to commemorate the foundation of the Hungarian state, the president of the Presidential Council states that a new constitution is needed which regulates the relationship between citizens and those in power in a straightforward, clear fashion.

August 20. Independent Hungarian groups send a letter to representatives of the Czechoslovakian civil right movement on the 20^th anniversary of the soviet invasion. On behalf of the Committee for the Administration of Justice the letter is signed by Sándor Rácz and Miklós Vásárhelyi.

In front of the basilica in Budapest tens of thousands of people attend a mass to remember the 950^th anniversary of the death of the founder of the Hungarian state. Archbishop László Paskai announces that the Presidential Council and the Council of ministers are going to invite the Pope to visit Hungary.

August 22-23. People take part in a sitting strike to protest against the demolition of villages in Rumania.

August 23. The second communiqué of the Historical Justice Committee denounces the rough measures taken by the police on June 16 and welcomes certain promises given by the Council of Ministers (the burial of Imre Nagy and his companions, eliminating the disadvantageous legal treatment of 56-ers, acknowledging the need to do research on 56). They demand that the full list of all victims executed, killed or died in prison be made public, their graves be marked, the bodies be identified, and section 301 be put in order. They take upon themselves the task of making the necessary preparations and finding a tombstone appropriate to the one requested by István Angyal in his will. The Committee sets up three sections, one for historical, one for legal, and one for reverence matters.

August 23-24. Miners at the István pit of the Mecsek Coal Mines go on s strike because of uncertainties concerning their loyalty money. After negotiating with government commissioner László Kapolyi, minister of industry Frigyes Berecz and deputy Prime Minister Péter Medgyessy, the workers are promised to get at least as much bonus money in 1988 as they received in 1987. This has been the first strike since the fall of 1956.

The first test-tube baby is born in Pécs.

August 25. As of October the pension of those over 70 years of age will be raised by 2% or at least 100 forints. The calculation of sick-pay will also change. The Council of Ministers envisages that in 1989 the personal income tax brackets will be modified in accordance with the change in consumer price index.

Ilona Tatai, member of the Politburo of HSWP states that Hungarian companies can not be obligated to produce their goods and export them involving a deficit even if inter-state agreements require such action, since it is the state that has to take responsibility for these agreements.

The workers in the Mecsek Coal Mines do extra shifts over the weekends to make up for the loss of production as a result of the strike.

August 25-28. Opposition organizations and leading opposition figures meet in Balatonszárszó to discuss current political, social, economic and national minority issues. Sándor Rácz gives "a special history class" to several hundred young people on 1956.

August 26. Imre Nagy, secretary of the CC of the Communist Youth Organization believes that because of the unfavorable political and social forecasts none of the essential program points of the 1984 resolution of HSWP concerning young people will be implemented. In order to facilitate real discussion many urge that the Federation of Young Democrats should be legalized.

August 28. Károly Grósz and Ceausescu meet in Arad. There talks end with no apparent results.

August 29. On Hungarian invitation leaders and disarmament experts of NATO and WTO meet in Budapest to discuss issues of European traditional arms.

August 30. László Major, spokesman of HSWP says: the Rumanian leaders accepted the idea of a meeting between top level leaders in 1989, and that a joint declaration should be made at this meeting on the nationality issue. The Rumanian party is willing to extend economic cooperation and agrees to send its representatives to the newly summoned joint cultural committee. A joint committee will examine the situation of Rumanian citizens staying in Hungary.

September The journal Világosság publishes a roundtable talk held under the title "Crisis and self-knowledge" (the participants are: Domokos Kosáry, Gyula Juhász, Rezső Nyers).

The literary journal Nagyvilág publishes a chapter from George Orwell's 1984. Gábor Mocsár's memoir entitled "At every times" is published which recollects the days spent at the editorial office of Szabad Nép (Free People) in 1956 October.

September 1. According to János Berecz HSWP should enforce its leading role not through power but rather using ideological tools. The secretary of the CC also says in Nádudvar that public feeling has recently deteriorated significantly, which was on a positive route after the May national party meeting.

September 2. An international conference on the retaining dams on the river Danube opens in Budapest organized by the Danube Circle, the World Life Fund for Nature and the International Rivers Networks. The participants provide examples to show how a large dam can damage the environment, and urge to suspend the building of the dam at Bős-Nagymaros immediately.

Imre Pozsgay, minister of state says that high politics should show tolerance in judging the newly formed societies in the country, and the local councils should get rid of the bureaucracy that is quite common in dealing with such matters.

September 3. The Hungarian Democratic Forum is transformed into a democratic, intellectual-political movement, an independent social organization. Its founding charter is issued in Lakitelek. The founders think the multiparty system is inevitable in Hungary, but for the time being they do not wish to turn the Forum into a political party; however, they do intend to run in the parliamentary and the local elections.

September 4. János Berecz announces: HSWP has established contacts with HDF. According to the secretary of the CC HDF mainly includes writers who had little possibility within the Association of Writers to voice their opinion in matters of national importance.

Imre Miklós, secretary of state carries on talks in Israel on the issue of renovating the synagogues in Hungary. He is received by Prime Minister Jichak Shamir.

September 6. HSWP decides to set up ad hoc committees in order to study the ideological issues related to the development of socialism.

The Moving Picture Democratic Trade Union is formed as the autonomous labor organization of workers working in the film industry.

September 7. The Council of Ministers suggests that all those convicted for their role in the 1956 events be given accorded amnesty. It is also said that the Bős-Nagymaros dam must be built, though in case a referendum should decide otherwise, the Council of Ministers will abide by the decision.

September 8. Hungary expresses its intention to join the protocol of the Civil and Political Agreement Document of UN - says László Kovács, deputy foreign minister in Milan, speaking at a conference organized on the anniversary of the Universal Declaration of Human Rights.

September 9. Károly Grósz pays a two-day visit to the German Democratic Republic. In the course of the discussing economic matters he urges to increase the role of market forces within Comecon.

September 10. The ministry of justice intends to speed up the process of working out the new conception of the constitution so that the draft version be in accord with the law of assembly and the law regulating public meeting just underway.

The discussion forum of HDF sends a letter to members of Parliament, asking them to support the call to stop building the dam at Bős-Nagymaros, or to bring in independent experts to revise the whole plan. The meeting of HDF is also attended by the chairman of the National People's Party.

September 12. A FYD delegation meets with minister of state Imre Pozsgay. Pozsgay says no compromise is to be expected on two major issues at the anticipated meeting between HSWP and representatives of alternative organizations, one of them being the Imre Nagy case and 1956, the other the issue of Hungary's foreign relations with other socialist countries.

Some 20 thousand people take part in the demonstration in Budapest against the building of the Bős-Nagymaros dam. A petition is handed over to Károly Grósz and Brúnó Straub F. in the House of Parliament in which it is emphasized that a democratic solution to the problem could be grounds for political consensus in the future.

The Bős-Nagymaros committee of the Patriotic People's Front and other social organizations complain that certain organizations organize demonstrations against the dam under the name "Nagymaros Committee".

Miklós Német, secretary of the CC states that one fundamental point of the Hungarian economic program is the reorganization of ownership structure. The essence of it is to develop working forms of social ownership as well as giving equal rights and status to private and personal ownership.

September 13. Hungary opens a permanent office in Seoul, and South Korea in Budapest. In addition, the two countries agree to start negotiations in order to regulate their relations and to establish diplomatic relations.

In a letter to the UN Károly Grósz suggests that the protection of national minorities and the preservation of minority cultures should also be included in an international agreement, since the declaration of human rights does not cover these rights.

September 15. A communiqué is released by the Hungarian New March Front providing a basis for social renewal. In its statement the Front, established in the spring - adopting the left-wing patriotic credo of the 1938 March Front -, says that the system of political institutions must be reformed, the role of the party must be reconsidered, and HSWP need be openly supervised. The members of the new front are, among others, Rezső Nyers, Szilárd Újhelyi, Zoltán Király, Mihály Bihari, Miklós Vásárhelyi. The Hungarian Academy of Sciences sets up a committee to investigate what advantages and disadvantages will be faced if the dam at Nagymaros is not built.

September 16. Former prisoners of the labor camp establish the Recsk Alliance, an organization to represent their interests.

György Fejti, secretary of the CC of HSWP says pluralism can also be implemented within a one-party system.

The ban on over 5 thousand books is lifted in the Széchenyi Library, which were earlier pronounced to be adversary literature and thus closed for the general public.

György Marosán jr. government spokesman says the Council of Ministers does not intend to hold a referendum on the Bős-Nagymaros issue, but he thinks it was a grave mistake that no detailed information was given to the public earlier.

September 17. Rezső Nyers and Szilárd Ujhelyi talk about the endeavors of the New March Front. Ujhelyi says the 56 issue is still unresolved, and takes Imre Nagy's role in the events to be progressive.

Brúnó Straub F., president of the Presidential Council says the multiparty system must be reconsidered for the long-term development of Hungary.

Several hundred women demonstrate in the Danube bend against the dam.

Kálmán Kulcsár, minister of justice says a political decision is needed for a law regulating the function of HSWP and the other political parties and for making public the documents of the fabricated trials held after 1945.

The central party newspaper of North Korea sharply criticizes Hungary and South Korea in its article for establishing a permanent office in their respective capitals.

Hungarian sportsmen win 11 gold, 6 silver and 6 bronze medals at the 24^th Olympic Games in Seoul.

September 19. Historian Miklós Szabó states in his lecture presented at the open session of the temporary council of the Network of Free Initiatives that no real turn can be achieved without the rehabilitation of 1956 and the introduction of a multiparty political system.

September 20. László Maróthy, minister of environmental protection and management of water supplies argues for the Bős-Nagymaros dam by saying that stopping the construction works would incur more costs than its completion.

After three decades of exile the poet György Faludy visits his home.

September 21. After a trade board meeting between the unions and the Council of Ministers it is announced that 1.3 billion HUF will be used to raise wages in several branches of the economy and in certain sections of public services. The measures involve 150 to 170 thousand people, including worker of the postal service and the press. The National Council of Trade Unions wanted a comprehensive wage and price packet, but the Council of Ministers did not regard it as a viable possibility. The trade unions still maintain their demand for higher wages.

September 22. The Council of Ministers sets up the National Interest Reconciliation Council (NIRC) with a view to harmonizing the interests represented by the trade unions, the Economic Chamber, the National Federation of Tradesmen, The National Association of Cooperatives and the National Council of Cooperative Farms.

Mátyás Szurös, secretary of HSWP visits Bucharest. in the course of the negotiations it becomes evident that the position of the Rumanian party with respect to the issue of the refugees and to the reopening of the consulates has not changed at all.

September 23. HDF and the Network of Free Initiatives welcomes György Faludy at a literary evening in the Jurta Theater.

Csaba Hámori, member of the Politburo of HSWP and first secretary of the CC of the Communist Youth Organization says communist society is a utopia because the road leading to such a society has not been paved yet, and that the direction adopted by the country earlier misses the target anyway. He believes that confidence enjoyed by the new party leadership is beginning to wear off.

September 25. Passages from Lajos Kassák's diary written in 1955-56 are published in Új Tükör.

12 Hungarians from Transylvania appeal for political asylum at the Hungarian embassy in Sophia in order to be able to travel to Hungary.

September 26. An agreement of cooperation in trading and economic relations is signed by Hungary and EU in Brussels, Hungary being the first socialist country to sign a contract like this. The agreement specifies for a period of 10 years ahead how EU will cut back on quota restrictions applied for Hungary.

September 27. The advisory board working for HSWP announces that last year - for the first time since 1957 - membership in the party decreased by 73 thousand.

September 28. University students in Szeged go on a token strike for urging the renewal of higher education.

The István Bibó Memorial Committee is established.

September 30. The Presidential Council passes an executive order on "pardoning all those convicted for crimes committed between October 23, 1956 and May 1, 1957." The pardon is not extended to those who were convicted for capital treason, espionage, or for crimes involving moral turpitude.

The Workers' group of FYD issues a call for attending a "Matryrs' Day" memorial ceremony at the Batthyány sanctuary lamp on October 6, 1988, paying tribute to all the martyrs of Hungarian liberal thought.

3 thousand university students demonstrate in Budapest against the Bős-Nagymaros dam.

The Hungarian Catholic Episcopacy requests the European Parliament to put on the agenda of its next session the scheme of restructuring the settlement system in Rumania.

Hungary gives indication that it is ready to start negotiations with Albania to restore diplomatic relations.

End of September The net debt of Hungary amounts to 10.3 billion USD.

October The journal Kapu publishes the list of names of the former prisoners of the Recsk labor camp, and the list of those convicted and executed or those who died in prison after the 56 revolution.

In his study entitled (Nation, left, right" published in Forrás Pál Bodor analyzes the effects of the 56 revolution on national consciousness.

László Levendel's essay "The cure for a country" appears in the first issue of the journal Liget: "1956 is an especially determinant stage in the medical history of the nation."

October 1-2. The first congress of FYD.

October 3. The main Austrian contractor takes possession of the construction site of the dam at Nagymaros.

October 4. The CC of HSWP states that party members can also join alternative organizations which function by law, accept the socialist order and the international commitments of the country.

In a letter to the European parliament the National Ecumenical Council of Churches expresses its concern for the policy of Rumania towards national minorities.

October 5. By unanimous decision the Parliament passes the company Act which enables private persons to form limited liability companies or share companies - employing no more than 500 people.

October 6. Contrary to earlier plans the Parliament does not cast a vote on profit tax for entrepreneurs because the representatives believe they there is no reliable information on the deficit of the budget. Minister of finance Miklós Villányi promises to recast the document by November, and at the same time indicates that state finances are in a much worse state than seen by the public.

It is announced in the Vatican that John Paul II will pay a visit to Hungary in a year or two.

Memorial meetings are held at the Batthyány-Imre Nagy sanctuary lamp.

October 7. In spite of wide-spread protest the Parliament votes for continuing the building of the Bős-Nagymaros dam. The votes are cast not by name but by standing up.

October 9. The draft program of the CC of the Communist Youth Organization announces a new type of socialism. It points up that the Stalinist control should not be restored, but restoration of capitalism would not be the right direction to follow either.

The National Peace Council, together with several other peace organizations, proposes that alternative military service should be introduced as of 1989.

October 11. István Huszár, general secretary of the Patriotic People's Front states that HSWP will continue to have a leading role in the Front, but we will have to allow for the possibility that other social organizations and movements will want to have a word in matters of the organization.

October 12. The Alliance of Hungarian Scouts is established.

Rumanian president Nikolae Ceausescu, speaking in the Hungarian pavilion of the Bucharest Fair, says there is a chance to implement the agreements made between the two countries, especially in the field of economy.

October 14. Representatives of the Endre Bajcsy-Zsillinszky Society, The Federation of Young Democrats, The Network of Free Initiatives and the Historical Justice Committee issue a communiqué in which it is announced: on October 23 - following the original route - a demonstration procession will take place. The plan for the demonstration will be reported to the police in advance.

The National Council for the Reconciliation of Interests holds its statutory meeting. The Communist Youth Organization, the National Alliance of Tradesmen, ?? and the National Alliance of Entrepreneurs complain that they are excluded from the Council.

Supporters of the Danube Circle and other alternative organizations launch a campaign to collect signatures in order that a referendum should be called in the Bős-Nagymaros case.

October 17. Documents that have been banned for many years before can now be used for research purposes at the Institute for Party History.

Stopping over in Budapest on his round trip in Eastern Europe American deputy secretary of state John Whitehead explores the situation, the political and economic reforms underway in Hungary.

Based on the Stockholm agreement to strengthen confidence military observers from 12 capitalist and 6 socialist countries are also present at the military maneuvers involving 17 troops in Transdanubia.

October 18. According to the chairman of the National Planning Office the deficit of the budget will amount to 40-50 billion forints in 1989, and since no more burden can be thrown on the population, companies will have to pay more tax on their profit.

Two members of the Politburo of HSWP, János Berecz and Rezső Nyers believe the Hungarian political leadership is not worried about the introduction of a multiparty system but rather by the anarchy that might follow such a move.

October 19. The Budapest Main Police Office acknowledges the notice given by five organizations concerning the planned demonstration for October 23.

Leaflets of the Polish Solidarity movement appear in Budapest under the title "Hungarian Brothers", calling for a fight against communism.

October 20. Following the resolution of the CC of HSWP - also supported by the trade unions - the Council of Ministers also decides to opt for that alternative of the different variants of economic policy for 1989 which - though involving more effort and hardship - promises to bring quicker results.

The ministry of culture puts an end to the instruction of scientific socialism at Hungarian higher educational institutions. Instead a new subject entitled "Political theory" is introduced.

October 21. The government spokesman says the minister of justice has already submitted the plan for the burial of Imre Nagy and his fellow martyrs. This means that all those executed must be given a worthy burial.

The Budapest Main Police Office bans all demonstrations planned for October 23. In spite of the ban the organizers decide to hold the demonstration.

According to the presidency of the National Council of Trade Unions every worker should be given a minimal pay rise guaranteed by the state.

The decision made by the Council of Ministers simplifies the process to give permission for abortion as of 1989, but the money to be paid for of abortion will be doubled.

October 22. The Hungarian Democratic Forum calls its members through television in the evening to stay away from the demonstration on October 23. As a result, the Endre Bajcsy-Zsillinszky Society, the Federation of Young Democrats, the Network of Free Initiatives and the Historical Justice Committee are forced to call off the peaceful demonstration.

October 23. The day of the 32^nd anniversary of the revolution. Despite massive police presence small groups do get together at various places in the city (Batthyány square, Technical University, Bem square, Váci street, etc.). The opposition organizations send a letter of protest to Prime Minister Károly Grósz. In the evening a memorial meeting is held in the Jurta Theater attended by several hundred people where a documentary is performed edited by the Committee for the Administration of Justice. The meeting closes by the speech of Miklós Vásárhelyi, chairman of the Committee.

October 24. Hungary is the first country in the Eastern block where the Human Rights Committee of UN can conduct investigations, if need arises.

October 25. It is announced that as of January 1, 1989 an unemployment benefit will be introduced in Hungary, for the Council of Ministers anticipates 50-100 thousand jobless people for 1989.

The permanent office of South Korea opens in Budapest.

October 26. North Korea repeatedly criticizes the agreement made with the Seoul government, because it treats South Korea as a sovereign country.

According to nationality organizations 400 thousand people in Hungary declare themselves to be members of some national minority.

October 27. The Headquarters of the National Border Guards proposes that the technical sealing on the Western borderland should be removed.

October 28. In an interview given to Magyar Hírlap Károly Grósz says the events in 1956 involved, first and foremost, a counter-revolution, therefore it is allowable to mark it as an outstanding day to be remembered. He confirms that he will quit the office of Prime Minister at the end of November. He stresses that he is not content with the work of the Council of Ministers, though the implementation of the stabilization program is getting on well.

The Alliance of Hungarian Resistance Fighters and Anti-fascists hold a comradeship meeting. They commemorate "the tragic events that took place 32 years ago." The 56 section of the Alliance calls all its members to participate in the demonstration supporting socialism on November 4, "paying tribute to the memory of the martyrs of the counter-revolution."

More than 60 thousand teachers demand in a statement authenticated by signatures that the issues of education should be put on the agenda of the parliament.

October 29. With an aim to protect the right for free speech and public opinion the Publicity Club is declared established.

October 30. The Endre Bajcsy-Zsilinszky Society issues a communiqué in which everybody is invited to attend the memorial service at section 301 on November 6.

Demonstrations are held in 28 cities of 17 countries all over the world to support the demand that a referendum must be called on the issue of Bős-Nagymaros. In Budapest a torchlight procession is held to protest against the dam.

November After 32 years the Kossuth Publishing House publishes the speech given by Hrushchev at the 20^th congress of the Soviet Communist Party.

November 2. The first issue of the journal Hitel publishes István Csurka's article entitled "Sunday, October the twenty-third."

The deed of foundation of the Hungarian Democratic Forum is made public in which one of the aims of the organization is specified as follows: "to initiate and support a realistic evaluation of the country's history after 1945, especially the period of coalition government and the 1956 revolution (national uprising)."

The Democratic Alliance of Hungarian Gypsies is established. Among its main objectives is having gypsies acknowledged as an ethnic minority.

November 3. Károly Grósz visits Austria. The general secretary of HSWP says the Hungarian Post, especially its telephone service branch, will partly be transformed into a private company in order to develop the infrastructure serving production in the country.

In Szombathely the first modern digital telephone center is installed with a capacity of 100 thousand phone lines, which Hungary bought from Austria.

November 4. HSWP, the Communist Youth Organization and the Workers' Militia hold a joint memorial meeting in Köztársaság square, commemorating the defenders of the party headquarters and the establishment of the Revolutionary Workers-Peasants' Government. In his speech János Barabás, secretary of the Budapest Committee of HSWP describes 1956 as a series of events starting out as a democratic popular movement with an aim to renew socialism, and eventually turning into a counter-revolution.

Károly Grósz says in the Austrian House of Parliament the office of president must be introduced in Hungary as well.

The Council of Ministers decides that in the course of the coming 4 years state subsidies for companies will be cut from 130 billion forints down to 40 billion per year.

Sándor Nagy, secretary of the national Council of Trade Unions states the unions refuse to accept the rise of prices and the cuts in real wages planned for 1989, and that the discrepancy between their views and those of the government is still significant.

November 5. At its discussion forum the New March Front urges to implement democratic socialism in the country.

HDF supports the initiative that in order to prevent the demolition of villages in Rumania every Hungarian village and city should choose a sister city or village in Transylvania.

November 7-8. A memorial meeting is held on the activities of the Budapest Revolutionary Police Division in 1967-57. In his speech János Berecz states one of the most important lessons of the 56 crisis was that socialism is not possible without the support of the people.

November 10. The draft of a new law regulating public meeting, approved of by the Council of Ministers, makes it possible, among other things, to establish political parties.

In his talks in Budapest Alexander Jakovlev, member of the Politburo of the Soviet Communist Party believes socialism does not exclude a multiparty system, but this has to be decided in each country with a view the country's own conditions and characteristics.

November 11. The Frencz Münich Society is established, which attack HSWP from the left.

The State Wages and Labor Agency proposes that the planned unemployment benefit should be paid only for a period of one year and only to those who have been in a job for at least two years. On the contrary, the trade unions insist that every jobless person should be entitled to the benefit as part of their civic rights.

November 12. Alexander Jakovlev, member of the Politburo of the Soviet Communist Party meets with László Paskai in Esztergom and invites the archbishop to visit Sub-Carpathia, the home of some 200 thousand Hungarians

November 13. The Network of Free Initiatives is turned into the Alliance of Free Democrats (AFD). In their communiqué they declare, among others, Anna Kéthly, István Bibó, Imre Nagy and Ferenc Donáth to be the intellectual predecessors of the alliance. They regard the three Hungarian revolutions, 1948, 1918 and 1956 as setting and example and a standard to be followed.

November 15. According to the Politburo of HSWP the new information law becoming effective in 1989 needs to regulate free speech and free press as a basic civic right.

Gyula Horn, secretary of the foreign ministry takes part in the session of the General Assembly of the North-Atlantic Treaty Organization in Brussels, the first official representative of a WTO member country to be invited since NATO was established. Gyula Horn states Hungary is ready to make it military budget and data public in the framework of the disarmament process

In Budapest the police use force to break up a demonstration of 300 people organized by alternative groups in spite of police ban close to the Rumanian embassy.

The Constitutional Council finds it violating the law that according to a decree by the Council of Ministers pensioners who spend more than 90 days abroad will not receive their due.

Mátyás Szurös, secretary of HSWP believes that the introduction of the multiparty system in Hungary will not be decided by HSWP but rather by the development of social institutions.

The Association of Writers refuses to accept the invitation of the Council of Ministers to participate in the social committee that will oversee the works at the Bős-Nagymaros dam.

A meeting is held in the Jurta theater in memory of the 1^st anniversary of the Brassov workers' riot.

November 17. The planned modifications of the Labor Code gave rise to sharp dispute between the wage authorities and the National Council of Trade Unions.

János Nagy, ambassador to Vienna believes it is quite feasible that Hungary will reduce its military force and have part of the Soviet troops stationed in its territory ordered home as a unilateral gesture to promote disarmament.

November 18. The independent Smallholders' Party announces its reestablishment in Budapest. Its new chairman is Tivadar Pártay, its general secretary is Dezső Futó.

Following an unprecedented provocation the Rumanian authorities expel Károly Győrfi, Hungary's trading counsel in Bucharest from Rumania. Hungary raises objections in the case.

November 18-19. The Communist Youth Organization holds its national meeting in Székesfehérvár. The organization decides that it will continue to function as the youth organization of HSWP in strong strategic alliance with it but without direct party control.

In its programmatic congress the Federation of Young Democrats demands a constitutional state.

November 20. The Hungarian Jewish Cultural Society is established.

November 21. Dante Fascell, chairman of the foreign committee of the American House of Representatives conducts negotiations in Budapest. The Hungarian leaders emphasize at the meeting that Hungary would prefer to be awarded the status of most favored nation by the legislation not only for one year every time.

Deputy Prime Minister Péter Medgyessy announces that company taxes must be increased because of the serious economic situation.

November 23. One day before the session of the Parliament Imre Pozsgay says that the introduction of the multiparty system lies with the determination of the society rather than with the Council of Ministers.

Nationwide demonstrations are held at universities and colleges demanding the improvement of financial and material conditions, the development of self-government and academic freedom.

November 24. The Historical Justice Committee issues a communiqué in which it calls the family of those executed after 1956 to exercise their right and demand that they may bury their family members properly.

November 24-26. The House of Parliament elects Miklós Németh Prime Minister of Hungary. Károly Grósz remains to be general secretary of HSWP.

The chief counsel of the Rumanian embassy is expelled from Hungary. Rumania objects to the decision.

November 25. János Kádár's article "The party of Hungarian communists is seventy years old" is published simultaneously in the November issue of the Soviet journal Communist and the Hungarian journal Magyarország. After October 23, 1956 ... "the participants of the events and their actions gradually took on a counter-revolutionary character. By-passing every legal move, disregarding the Council of Ministers, the Presidential Council, Imre Nagy made his decisions to abandon the people's democratic revolution within a closed circle."

Imre Pozsgay announces that HSWP initiated a dialog with the alternative organizations.

November 27. The national Council of Hungarian Youth Organizations is established, which urges a dialog among the organizations representing young people in the country and intends to represent the standpoint of 29 different organization in discussions with state, political and governmental bodies.

November 28. At the meeting of the Council of Ministers and the National Council of Trade Unions it is decided that pensions, child care allowance and family allowance will be raised in two phases in 1989; people working in health care and public education will be given a centrally funded rise in wages. In order to relieve the burden on people general secretary of the national Council of Trade Unions urges further reduction of military spending, the extension of major investments in time and a cut down on subsidies for companies producing deficit.

November 29. At the party meeting in the Budapest sports stadium Károly Grósz states that there is a class-struggle going on in Hungary, and if "adversary, counter-revolutionary forces" can not be counterbalanced, then "anarchy, chaos and - do not entertain illusions -white terror will dominate the country." He stresses that the one-party system must be maintained because "it has naturally evolved in the course of history." János Berecz, speaking at a forum in Tatabánya, says that "there is a revolutionary crisis in Hungary at present."

The Independent Smallholders' Party, The Natinal Peasants' Party, The Party of Hungarian Communists and the Social Democratic Party of Hungary announce their foundation.

December The 20^th, the last issue of Magyar Füzetek (Hungarian Notes) is published in Paris, the whole issue being devoted to the political crisis in Hungary.

December 1. By the decision of the Council of Ministers central wages control will be maintained only at institutions financed by the state budget as of January 1989; within the sphere of free market economy the Economic Chamber and the trade unions will have to negotiate the upper limit of wages.

December 2. The Hungarian National Bank intends to issue a 5,000 forint banknote within two years.

December 3-4. The István Széchenyi Students' Study Circle and Social Sciences Club organizes the first scientific conference on the 1956 revolution at the University of Economics. The lectures presented at the conference are: György Litván "On the Imre Nagy group"; András Hegedüs "Trends and tendencies within the Party of Hungarian Workers"; András Hegedus B. "The Petőfi circle"; László Varga "The chronology of events", Endre Bilecz "Bibó in 56"; István Csurka "How a writer remembers"; Sándor M Kiss "Violations of the law by the Security Police" (Államvédelmi Hatóság); Iván Pető "An economic overview"; Bálint Magyar "1956 in the rural country"; Sándor Rácz "Evaluating the workers' councils of 56"; Imre Mécs "Impeachment after 1956"; Miklós Szabó "An intellectual overview".

December 5. It is approved of by the Council for the Reconciliation of Interests that in the future any agreement affecting wage-earners can only be made with the consent of the Council of Ministers, the National Council of Trade Unions and the Economic Chamber. At the same time the Chamber sets a veto on the motion put forth by the trade unions for fixing the minimum of wages.

December 6. The Communist Youth organization organizes a demonstration on Margaret island demanding reforms in housing policy and more social security, after having been denied permission by the police to hold the demonstration in front of the House of Parliament.

December 7. The Council of Ministers and the Communist Youth organization agree to set up a committee to investigate the housing situation.

December 8. Defense minister Ferenc Kárpáti believes that some 25% of the Soviet troops stationed in Hungary may be affected by the unilateral reduction of armed forces announced by Mikhail Gorbachev. At the same time he states: the Hungarian military budget will be 17% less in real value in 1989 than in 1988.

A campaign to collect signatures is launched in the Józsefváros district of Budapest in order to recall representative Miklós Vida, because at the Fall session of the House he also voted for a closed session when decision was made on the Bős-Nagymaros issue.

Representatives of the Federation of Young Democrats and those of the Communist Youth Organization meet officially for the first time.

December 11. The chairman of the Price Agency says consumer prices rise by 16% in 1988, a 1% higher rise than envisaged.

December 13. Prime Minister Miklós Németh believes that the Hungarian political reforms will eventually lead to a parliamentary democracy similar to those in Western countries. In his interview given to Newsweek he touches upon the issue that it might take as many as four years before the economy becomes stable.

December 14. Hans-Dietrich Genscher, foreign minister of the federation of German Republics visits Budapest to assess the status of reforms in Hungary. It is announced during his visit that a Hungarian consulate in Munich, and a German one in Pécs will open in 1989.

Hungary and Austria officially submit their application for jointly organizing the 1995 World Fair.

December 16. Károly Grósz says that everybody will have to make extra efforts in their own field of life because without it the economic situation will not improve after 1990 either. He asserts that HSWP does not intend to share power but rather it wishes to involve allied forces in the exercise of power.

The decree is abated which stipulates that Hungarian citizens must have legally owned hard currency worth 3,000 HUF when crossing the borders of the country.

The water of the river Danube is pumped into a temporary bed at Visegrád.

December 18. Rezső Nyers says for the first time in public that HSWP should keep its unified nature and make use of the positive features of social democratic movements.

December 19. The Democratic League of Independent Trade Unions is formed.

The National Council of the Patriotic People's Front rejects the draft of the election bill because they think it is a nonsense to specify the new election system before the new constitution is passed.

Several alternative organizations demand at a mass-meeting in Vörösmarty square that a Constitutional Assembly should be elected to replace the present Parliament. At the same time 2,500 people hold a demonstration in Budapest because of the crisis in public education.

The Economic Chamber believes that speeding up the process of selling state-owned property would do good to the budget.

Frigyes Berecz, minister of industry acknowledges on behalf of the Council of Ministers that it was a mistake to support the coal-mining program.

December 20. The Parliament declares March 15 to be a legal holiday.

It is announced that representatives of the Parliament not belonging to any pparty wish to set up a parliamentary group of their own.

December 21. After a lengthy debate the Parliament passes the 1989 budget, but contrary to what the Council of Ministers proposed, instead of 6% it decides on levying a one-time 4% profit tax. To compensate for the missing 5 billion forints the defense budget and subsidies for social organizations will be reduced.

December 22. By the compromise agreed on at he meeting of the National Interest Reconciliation Council the minimum level a wages remains to be 3,000 HUF in the first half of 1989, but as of June 1 it will be raised to 3,700 forints.

December 30. The Presidential Council acquits 120 people from legal disadvantages for their deeds in 1956.

December 31. Miklós Németh gives an interview to the Japanese news agency Kyodo: Personally he could imagine forming a coalition with any party whose principles are not antagonistic with the foundations of socialist order, but in his view the situation is not mature yet for such a coalition.