East bloc / cold war surplus : getting a lift from moscow : hungary hopes to transform former soviet air bases into commercial ventures, with western help.

BUDAPEST, Hungary — Trying to cash in on one of Eastern Europe’s few immediate peace dividends, Hungarian officials are seeking Western partners to transform former Soviet air bases into

regional airports, air freight terminals or aircraft service centers. A government call for leasing proposals on seven sites being abandoned by the Soviets, including one just south of

Budapest, signals the start of an aggressive campaign to make Hungary an important civil aviation crossroad between East and West. Air transportation authorities say representatives of major

aircraft manufacturers such as Boeing and Lockheed have expressed keen interest in the site near Budapest as a potential manufacturing or maintenance center for jetliners they hope to sell

to the emerging East European and Soviet markets. International air cargo movers are reportedly eyeing the same site, the Tokol air base on the Danube River, as a major transit center for

refrigerated goods. Detailed descriptions of the sites and facilities still in Soviet hands are to be made available next month, said Defense Ministry spokesman Gyorgy Keleti. But the task

of identifying exactly what is being offered is proving difficult, as the Hungarians don’t know themselves what the Soviets will leave behind. During four decades of military occupation,

Soviet troops made some substantial improvements in the Hungarian properties they controlled, including what are reportedly modern runways and hangars. Moscow has demanded more than $800

million for its “investments” in Hungary, and last month it sent negotiators to Budapest to press its bid for compensation. The Hungarians have, in turn, accused the Soviets of grossly

polluting the bases they occupied, spilling fuel into soil and ground water and littering practice fields with live ammunition. Both sides agree that Hungary has an uncontested claim to the

actual real estate. But Budapest argues that the environmental damage should even the score for any structural improvements made by the Soviets. “Hungary is not willing to pay for those

improvements that were of military significance but have little or no commercial value,” such as bunkers, shabby barracks and surveillance equipment, Keleti said. Negotiations are

continuing, but neither side is sure how soon they will be able to agree on the compensation issue. There is a June, 1991, deadline for the Soviet pullout. The standoff requires some skilled

poker-playing on the part of the Hungarians. Bids to lease the facilities won’t be opened until Dec. 4, so the Ministry of Transportation doesn’t yet know details of the projects being

proposed. The Tokol base has runways long enough to handle any aircraft, and its location on Csepel Island in the Danube River gives it good access to shipping throughout Central Europe,

Keleti said. Another of the bases, near the eastern city of Debrecen, has already been turned over by the Soviets and is being used as a regional airport by the national airline Malev and a

new domestic carrier, Danube Air. But vast areas of the Debrecen base remain unused and open to development. The bases would need major investment to be brought up to the comfort standards

demanded by international air travelers, so Western airlines are expected to continue using Budapest’s two-terminal Ferihegy Airport for all passenger traffic. “We don’t want to discourage

any offers, but the bases are probably more suited to manufacturing and cargo handling than passenger service,” Keleti said. MORE TO READ