337. Report From the Central Intelligence Agency to Multiple Agencies1

660658.

SUBJECT

  • Planned Changes in Hungarian Exit Visa Policy

[3 lines not declassified]

Text: 1. [less than 4 lines not declassified] As of 1 January 1988, any Hungarian citizen with at least 100 U.S. dollars in his bank account will be eligible for an exit visa to any Western country. [less than 2 lines not declassified] This action is being offered as a “concession” to the Hungarian populace in order to lessen the unease resulting from the imposition of tax reforms, also planned for 1 January 1988. [less than 1 line not declassified] the Hungarian Government hopes that the populace will perceive this relaxation of travel requirements as a counterweight to the increased financial burden that the tax reform will bring.

2. ([less than 1 line not declassified] Comment: [less than 1 line not declassified] this easing of exit visa restrictions is a “smokescreen,” in that the average Hungarian citizen will find it difficult to acquire the stipulated 100 U.S. dollars (approximately 5,000 Hungarian forints). However, the Hungarian Government feels it must implement the proposed exit visa plans because of its concern that the planned tax reforms, coupled with the declining standard of living for the average Hungarian, could lead to public demonstrations.)

  1. Source: Reagan Library, Rudolf Perina Files, Hungary—Substance 1987 (4). Secret; [handling restriction not declassified]. Sent to the Director of the National Security Agency, the Department of State, the Department of Defense, the Department of the Treasury, the White House Situation Room, and the CIA Office of Current Operations.