DATE=04/07/02

TYPE=CORRESPONDENT REPORT (S)

TITLE=HUNGARY/ELECTION/RESULTS

NUMBER= 2-288425

BYLINE=STEFAN BOS

DATELINE=BUDAPEST

CONTENT=

INTRO:

With almost all votes counted, the main opposition Hungarian Socialist Party emerged as the winner in the first round of

Hungary's parliamentary elections. Latest results show that the former Communists turned Socialists overtook Prime Minister Viktor Orban's center-right Fidesz alliance with about one percent of the vote. The Socialist received just over 42 percent versus 41 percent for Fidesz. Stefan Bos reports from Budapest.

TEXT:

In a surprise turnaround from initial exit polls, the Hungarian Socialist Party beat Prime Minister Orban's center-right Federation of Young Democrats Hungarian Civic Party, also known as Fidesz.

But, speaking at his party's headquarters, the Socialist candidate, Peter Medgyessy, played down the victory, saying that supporters need to remember that there is a final run-off ballot on April 21.

Western diplomats expressed concern that to ensure his re-election, Mr. Orban may seek closer ties with ultra right wing

politicians, including representatives of the far right Hungarian Justice and Life Party, or MIEP.

But official results suggest that MIEP, which is known for its anti-Semitic and anti-foreigner statements, did not receive the

neccesary five percent to be able to enter the 386-seat Parliament.

Whoever wins Hungary's final round of voting will likely usher the former Communist country into membership in the European Union as early as 2004.

SIGNED

NEB/MEM