Government Eases Passport, Business Curbs : Polish Changes: Signs of the Times

There were crowds in the passport offices last week, crowds in the offices of city bureaucrats and even lines at the kiosks selling newspapers.

Long lines of people waiting are not a rare sight in Poland, of course, but in this case the queues all reflected some of the changes that are political signs of the times.

The crowds in the passport offices were a result of new regulations, promulgated by a new set of eager-to-please Communist officials running the government, that allow Polish citizens to keep their passports at home rather than apply for them at their local police stations when they want to travel.

The congestion in the city clerks’ offices was more modest--but still impressive under the circumstances--and was also a consequence of a new government regulation, this one cutting down the mass of red tape needed to start a private business. Now, in order to go into business for oneself in this state-controlled economic system, an applicant need only present a letter announcing his intention to do so.

Given the uncertainties regarding still-unrevised tax codes--which could tax private profits virtually out of existence--most of the applicants were filing for simple peddler’s permits: permission to operate vendor’s kiosks or to sell meat or vegetables door to door, for example. Optimists speculated that perhaps it was a toehold for private enterprise.

Interview With Walesa

The rush around the city’s newsstands occurred Wednesday afternoon, when the first copies of the Communist Party weekly Polityka hit the streets carrying an interview with Solidarity’s Lech Walesa. It was the first time since the martial law period of 1981-82 that the party newspaper had interviewed the leader of the banned trade union.

“That’s why we must come to an agreement,” the headline on the interview said, reflecting what appears to be the tantalizing goal of a renewed government campaign to bring Walesa and Solidarity to the bargaining table.

The fact that the interview appeared in Polityka, a newspaper formerly edited by Premier Mieczyslaw Rakowski, suggested that some elements of the Communist Party are ready to consider legalizing Solidarity. Walesa has demanded that the government clearly state its intent to legalize the union before continuing long-stalled discussions with the government.

Officially, the government maintains that discussions should begin “without preconditions.”

“The authorities will grant (legal status to) the union, whether they want to or not,” Walesa said in the interview. He added that the only question was: “Will it be by force or without, and what will be the costs?”

Reflection of New Strength

Walesa’s refusal to budge from his position reflects new strength for both himself and the union, whose key advisers sense that time may be short for the Rakowski government, appointed in September, to address the country’s deepening economic problems.

The 1988 annual inflation rate has been estimated by the government at 70% to 80%, and a new government forecast issued this week predicts a figure of 50% for 1989.

In spite of government efforts to launch economic reform measures, Poles are finding their living standards steadily declining and consumer goods in shorter supply. The government is fearful that consumer shortages could result by spring in a return to the bleak periods of 1980 and 1981, when store shelves were empty and Poles stood in long lines for bread, milk and other basic commodities.

“The crisis will be in the spring,” one government official, who spoke on the condition that he not be identified by name, said this week.

“It depends on whether society can see some hope for relief by then. If not. . . .” He paused and shrugged. “If not, then more strikes, and who could say what will happen?”

Could Capitalize on Crisis

After a year of the most severe labor unrest since 1981, authorities are fearful that a revitalized Solidarity could capitalize on the crisis with a further round of strikes this spring.

Although the government may find it impossible to make a serious impact on the troubled economy by spring, it has taken pains to suggest that change is in the wind. The move to ease travel restrictions and allow Poles to keep their passports at home was a popular stroke, one designed to signal an increased liberalism on the part of officials.

Similarly, the first small-scale private businesses will not resuscitate the economy but may indicate the government’s intention to go still further.

Government efforts to buy public tranquillity carry a high risk, according to economic analysts. In an effort to placate workers, salaries in most major industrial enterprises were sharply raised in the closing months of last year, with price increases kept at a much lower rate. As a result, inventories in state stores and warehouses have become severely depleted.

According to Deputy Premier Ireneusz Sekula, the government has been forced to adopt a budget deficit of $2.1 billion for the coming year in order to finance government subsidies, hold down prices--and continue the bid for labor peace.

Rise in Food Prices

Food price increases will be held to 12%, although other prices will rise more steeply, Sekula said.

The government’s economic planners hope the easing of rationing on gasoline and meat, as well as increasing their prices, will absorb some of the inflationary cash in the economy. But they acknowledge that the plan is not likely to enhance Poland’s position in negotiations with international lending agencies such as the International Monetary Fund and the World Bank.

Meanwhile, as the Communist Party’s Central Committee prepared to resume a plenary meeting this week, speculation increased that party leaders would attempt to hammer out a position allowing for a resumption of talks with Walesa and, perhaps, at least some limited form of recognition for Solidarity.

In the Polityka interview, Walesa seemed to sense a compromise in the wind and responded to questions in that mood.

“I repeat, we do not want to overthrow the authorities,” he said. “A compromise is in our common interest.”