OVERHAUL OF HUNGARIAN DOMESTIC POLICIES EXPECTED

Created: 10/19/1956

OCR scan of the original document, errors are possible

Overha-jl of Hungarianolicies expected: eneraT overhaul and further xc-b'sraYicc of Hungarian politicalconomic policies, prcbably base? in part oo the Yugoslav model, is expected to bsgi- shortly aftsr tbe return of tho Hungarian party leaders froc Belgrade. The revised policy is being anticipated io currert efficial press and radio comment, prior to the convening cf tbe National Assembly onctober.

Actober radio broa 1 , spelled out what aay serveormat for future Hungarian policy when it praised the over-all policios of ex-prtr,ler Nagy, who was restored to party membership onctobar. The com-neotary, in effect, endorsed Nagy's belief in the need for aider political freedom and party democracy, free dobato, the restoration of legality, and the right of each country to give primary consideration to its own characteristics ir; the development ofumber of thesee already been accepted by tho regime, which may now be prepared to remove holdovers from tho now discredited Rakosi era, such as the current premier, Andras Hegedus.

ct INTELLIGENCE2

Nagy's economic policies, the radio contended, are in opposition to "excessive industrialization" and give to the "material needs of tho population." This suggests that there will be considerable pressure in the National Assembly for basic changes Id tbe Flve-Year Plan, changes which would presumably reflect Yugoslav experiments with economic decentralization and agricultural Such changes mightartial incorporation of the Yugoslav concept of workers' councils in industrylowdown, orutback, in socialization. Nagy's economic policy is the contention that draining economic commitments to foreign countries, particularly the USSR, must be reduced.