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Chapter 200: The Gap in the Iron Curtain


The Georgian problem in the Soviet Union was on the rise, but the riots in distant Georgia were only the tip of the iceberg compared to the rest of the country east of the Iron Curtain.

Since the 70s, due to the impact of the oil crisis and other events, serious problems have begun to arise in the economies of all countries around the world, both in the capitalist countries of Western Europe and in the socialist countries of Eastern Europe.

Because of the economic downturn, all countries have seen higher unemployment rates.

Many countries have to rely on external debt to survive, especially some small countries in Europe, because of the lack of resources and the high dependence of their economies on foreign countries.

Against the backdrop of a prolonged world economic downturn, the fiscal situation of these governments is on the verge of collapse.

At the forefront of the Cold War, Hungary's financial situation was particularly dire.

Although there is no unemployment in socialist countries, Hungary is particularly dependent on foreign trade because of the lack of a complete industrial system.

A lot of things need to be imported from overseas.

But there has been a serious divergence between the constant wages and the real prices of commodities in the market.

People couldn't buy what they wanted with their wages, so the rationing system of World War II reappeared in people's lives.

If people's lives have been moving in a good direction, then people will not complain about the government.

But the key point is that people work hard, but the days are getting harder and harder.

This has made the masses question the government's ability to govern greatly.

As the de facto leader of Hungary, the first secretary of the Hungarian Socialist Workers' Party, Kadar, was anxious about the situation.

Kadar has led Hungary for more than 30 years since the October events of October 1956, when Khrushchev sent troops to crush the Hungarian opposition by force, causing bloodshed and 200,000 Hungarian refugees fleeing to Austria.

Over the course of thirty years, Kadar managed to heal the Hungarian society that had been torn apart by the events of October.

He worked hard to adjust Hungary's economic policy, hoping that Hungary would become a rich and powerful socialist country.

However, the deteriorating external economic environment has made Kadar's efforts come to naught.

Now in Hungary, many people say that Kadar is old and cannot keep up with the times.

If it weren't for economic problems, most of the Hungarian people would have liked Kadar.

Kadar is almost the most simple and approachable of the leaders of Eastern Europe, and the common people are accustomed to calling him Uncle Kadar.

During the thirty years he ruled Hungary, Kadar did not build himself a lavish official residence, he lived in a bungalow fenced off by an iron fence, the kind of house in which most Hungarians lived, his house had nothing but books, no guards, no secretary, no personal life except a gardener and janitor.

If it weren't for the simplicity of Kadar's life and decent style, how could a guy who relied on the Soviet army to help the coup d'état sit in the general secretary position rule the country for more than 30 years.

Just a few months earlier, the Hungarian Socialist Workers' Party had secretly convened a special meeting to bypass Kadar to elect a new Central Committee and Central Supervisory Council, and eight of the thirteen members of the former Politburo were defeated, including the respected Kadar.

As a consolation by the fact that Kadar had only been given the post of chairman of the Hungarian Socialist Workers' Party, Kadar's era came to an abrupt and unexpected end.

Although Kadar was reluctant to accept the party's decision, he still accepted it calmly.

However, a new leadership team began to investigate the events in Hungary on which Kadar relied when he came to power.

Re-evaluate the historical significance of the Hungarians who died during the October practice.

Kadar was very angry and aggrieved by this, and he saw it as a betrayal of socialism by the Hungarian Socialist Workers' Party.

At the same time, I am deeply saddened that I am not understood by the world.

As a small country, Hungary was definitely no match for the Soviet Union.

Kadar is very aware of this.

Therefore, at the most intense moment in Hungary, the Soviet Union brazenly sent troops to Hungary to trigger a bloody conflict.

Kadar chose to cooperate with the Soviets and abandon resistance.

His cooperation made Khrushchev very satisfied.

So in the end, the Soviet Union did not leave a large number of troops in Hungary.

On this issue, Kadar and the Polish leader Jaruzelski share a similar situation and the same political views.

It's nothing to be personally wronged.

The point is that Kadar did not want the new Polish leadership to anger the Soviet Union over the October events.

But it was unexpected by Kadar.

The Soviet side did not express any protest or dissatisfaction with the October events in Hungary.

This made Kadar feel incredible.

With Kadar's brokerage, the new Hungarian leadership began to negotiate with their neighbour Austria about repaying their foreign debt.

For Hungary today, the huge foreign debt has made Hungary's already small fiscal revenue even worse, but the economic situation is even more difficult to default on if the economic situation does not improve, because if this happens, many sovereign countries will no longer lend money to Hungary.

So even if it tightens its belt, the Hungarian government will have to pay off this foreign debt.

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Fortunately, the Austrian government was not anxious about Hungary's debts, and they actually preferred Hungary to open its borders so that Austrian goods could enter the Hungarian market, and at the same time sell them through Hungary to other Warsaw Pact countries.

Therefore, when the two countries were negotiating on the issue of debt, the Austrian representative vigorously led the negotiations on the issue of open borders.

There are more than 200,000 refugees in Austria who fled Hungary as a result of the October events.

These refugees created a severe fiscal deficit for Austria.

The Austrian side hoped that Hungary would be able to bring back the refugees.

It was promised that if the Hungarian Government could forgive the crimes of these men, it would give appropriate relief to Hungary's foreign debt to Austria.

After some discussions, the Hungarian side finally agreed to the agreement, and they were willing to open the border crossing between Hungary and Austria.

Let those Hungarians who fled their homes come back.

Austria also generously forgave most of Hungary's foreign debt.

This is a welcome event for both countries.

The Hungarian side would have liked to hear about the attitude of the Soviet Union in this regard.

Gorbachev, on the other hand, agreed that the Hungarian government would settle the matter on its own.

This was a great relief to the top of the Hungarian Socialist Workers' Party.

But what they don't know is that the actions of these two countries have finally caused a gap in the Iron Curtain that has been around for decades. t1706231537: