§ Mrs. GormanTo ask the Secretary of State for Trade and Industry what information he has on measures implemented by the Hungarian Government to establish a law of contract and property rights and on further measures planned by the Governments of Poland and Hungary.
§ Mr. RedwoodHungarian law on contract and property rights is embodied in the 1959 civil code (as amended). Other relevant economic and legislative measures recently adopted in Hungary include the law on economic associations, the law on foreign investment, the transformation law and the law on the protection of state assets. As far as we are aware, no fresh legislation in this field is currently planned. Ministers recognise the need to make long leases available to inward investors.
We understand that Poland is currently drafting new legislation on the law of contract and on property rights in conjunction with a privatisation bill. But the process is at an early stage. The present law of contract is, we understand, governed by the civil code of 23 April 1964 (as amended). Expropriation of property is governed by a special act, published in 1985 in the state gazette. We are led to believe that this will shortly be amended.
Companies considering investment in Poland and Hungary are welcome to consult my Department's east European branch or the commercial sections of our embassies to obtain fuller details of relevant legislation.