President Bush met with Hungary's leaders yesterday in talks aimed at dramatizing US support for reforms undertaken by the most liberal communist regime in Eastern Europe. Bush will grant permanent ``most favored nation'' trade status to Hungary and establish a $25 million development fund for the communist country, his chief of staff said yesterday.

He planned to outline a package of investment and trade incentives for Hungary in a speech later in the day at Karl Marx University, and to meet with student critics of the government.

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