EAST EUROPEAN BRANCH NOTES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79B00864A001400010070-9
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 3
• Document Creation Date: December 16, 2016
• Document Release Date: July 20, 2005
• Sequence Number: 70
• Publication Date: April 9, 1974
• Content Type: NOTES

Approved For ReI 2005/08/03: CIA-RDP79 00864A001400010070-9
#45 EAST EUROPE BRANCH NOTES
April 9, 1974
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Austrian Bank in Budapest?
The Austrian newspaper Die Presse claims that Hungary
has officially given permission to Creditanstalt-Bankverein,
Austria's largest banking concern, to open a branch in
Budapest. If the claim is true, it would be the first
Western bank to establish an office in Hungary and a major
step towards other permanent Western business representation
in the country. The establishment of permanent Western
firms has apparently been a controversial issue in Hungary,
even though the Soviets (who supposedly set the lead)
have moved much further in this area than the Hungarians.
.Gast month's shakeup in the Hungarian leadership
was a setback to those advocating Western business represen-
tation. If the Hungarians agreed to the Austrian bank before
then, Vienna may be trying to test Budapest's intentions
in the wake of the shakeup. If Hungarian acquiescence has
come more recently, however, it clearly is an effort by 25X1
Budapest to dampen Western speculation on the meaning and
depth of the March blow to liberal strength in the leader-
ship.
Approved For Release 2005/08/03 : CIA-RDP79B00864AO01400010070-9
 Approved For Re1w a 2005/08/03: CIA-RDP79B 0864A0400010070-9
EAST GERMANY
East Berlin and Bonn Set Opening of Missions
The East and West German governments yesterday jointly
announced that they will open their permanent missions on
May 2, thus carrying out the agreement reached on March 14.
The missions are not expected to become operational until
early June.
Typical of the atmospherics accompanying formal relations
is the sharp exchange this past week between West German
President Heinemann and the East German press. In a speech
in West Berlin on April 3, Heinemann warned that despite
recent agreements, the GDR still has designs on West
Berlin. The East German press service retorted that this
remark was "a defamation of the peace policy of the GDR."
Later, by quoting the West Berlin Communist paper, it charged
that Heinemann was discharging official functions in West
Berlin, contrary to the four-power agreement.
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Approved For Release 2006908432 GIA 864A001400010070-9
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 Approved For Release 2005/08/03 : CIA-RDP79B00864AO01400010070-9
Approved For Release 2005/08/03 : CIA-RDP79B00864AO01400010070-9