Hungarian Communist Leader Replaced

BUDAPEST, Hungary--Janos Kadar, the hard-line leader of Hungary's Communist Party since 1956, was removed from his post yesterday and succeeded by reform-minded Premier Karoly Grosz.

Kadar, 75, who had been expected to resign as general secretary, was named to the largely ceremonial post of party president. The changes were announced after a three-day national party conference.

Word that Kadar would get the newly-created post of party president came over national radio after hours of debate in which a prominent party official said there was a struggle over who would lead the nation's Communists.

Reformers who backed Grosz appeared to have emerged as the decisive winners after months of struggle between advocates of change and the backers of Kadar.

The 57-year-old premier becomes party leader with a revamped Politburo trimmed of aging apparatchiks. Imre Pozsgay, a leading advocate of reform, and Reszo Nyers, the father of Hungary's economic restructuring in the 1960s who was dropped from the Politburo in 1972, were appointed to the ruling body.

The announcement that Kadar was no longer party leader was greeted with long, enthusiastic applause by almost 1,000 delegates at the conference.

Delegates at the national conference had criticized Kadar, openly called for "new faces" and made clear that party ranks are split between old guard Kadar-backers and reformers who hope for more change from Grosz.

Grosz on Saturday told delegates that the party must break free of "ideological prejudices" if economic and political reforms are to succeed.

In his last speech as party boss yesterday, Kadar blamed egoism and pessimism for Hungary's economic and political crisis in an emotional speech.

He defended the principles that have guided him as party leader since 1956, but did not spell out any concrete measures for the future.

Kadar's speech was sprinkled with anecdotes, peasant proverbs and jokes. He focused on the need to revitalize Hungary's stagnating economy by eliminating corruption, increasing efficiency and allowing workers a greater voice in decisions.

The address was in sharp contrast to his opening speech on Friday, in which he denounced reformist efforts as threats to single-party rule.

In yesterday's speech, he blasted "loosening" of social morals and the spread of egoism. Kadar said hard times were ahead and asked his countrymen to understand that recently imposed austerity measures were necessary.

Inflation in Hungary reached 18.5 percent in the first quarter of this year, and its gross foreign debt has mounted steadily to a current $18 billion. Many Hungarians have complained about austerity measures imposed to curb inflation.

Reformists say economic reforms will fail without sweeping political changes.

Throughout his 75-minute speech, Kadar faced a nervous and restless audience which, unlike other party meetings, applauded him only after he finished his remarks.