Democrats Call for More Aid to Poles, Hungary

Senate Democrats, angered by what they see as a timid response by President Bush, are preparing to pass legislation to force the Administration to provide substantially more aid to Poland and Hungary.

The bill, which is likely to be introduced today by Sen. Alan Cranston (D-Calif.) and approved this week by the Senate Foreign Relations Committee, would authorize a wide variety of assistance ranging from food airlifts to debt rescheduling.

Democrats drafted the legislation in response to what Senate Majority Leader George J. Mitchell (D-Me.) described Monday as Bush’s “ambivalence and hesitation and timidity” in dealing with Poland and Hungary.

“The Bush Administration seems almost nostalgic about the Cold War and the rigid superpower relationship that divided the world into two hostile and isolated camps for 40 years,” Mitchell said in a floor speech unusually critical of the President.

‘An Almost Passive Stance’

“Instead of encouragement and engagement, the Administration has adopted an almost passive stance,” he added.

Mitchell said the United States must do everything possible to make certain that the new Solidarity-dominated Polish leadership succeeds where the Communist government failed and to reward the government of Hungary for allowing thousands of East Germans to go to the West.

During his visit to Poland last June, Bush promised $100 million in assistance for private enterprise and $15 million to clean up the air and water in Krakow. But it was later revealed that the program called for only $10 million in spending during fiscal 1990, which begins Oct. 1.

Last week, the President sought to quiet congressional complaints by offering Poland $50 million in new emergency food assistance. It would bring current U.S. food aid for Poland to $108.4 million.

And Monday, he notified Congress that he intends to allow Hungary to export up to $110 million worth of goods to the United States each year duty-free and will seek congressional approval to make permanent Hungary’s temporary status as a most favored nation in trade with the United States.

But none of these moves were sufficient to mollify Senate Democrats, whose proposal would provide $400 million a year for Poland and Hungary. House Democrats are expected to come up with a similar plan.

Most Senate Democrats are expected to support Cranston’s legislation. Among other things, the proposal calls for:

-- Appointment of a second U.S. official to coordinate all support, both public and private, for the East Bloc nations.

-- $300 million a year for three years to create an enterprise fund to support selected projects in Poland and $75 million a year for three years for an enterprise fund for Hungary.

-- Loan guarantees from the Overseas Private Investment Corp. for Poland and Hungary, and duty-free exports to the United States.

-- $11 million for scientific and educational exchanges, medical assistance and help in building democratic institutions.

-- $5 million for labor reforms, $20 million for environmental protection programs, $25 million to help modernize Poland’s telecommunications system and $3 million for Peace Corps activities in both Poland and Hungary.