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Presents an address by the Assistant Secretary for European and Canadian Affairs before Harvard University's Kennedy School of Government, Boston, Massachusetts, February 1994, concerning the problems and promise of Central and Eastern Europe. The 15 countries that comprise Central and Eastern Europe; Economic problems; Discontent with economic hardship brought on by democratic institutions; What the United States is doing to help.

Focuses on the move toward capitalism in Eastern Europe following the collapse of communism. Overview of the region's economy; Shifts to market economy in the region; Capitalist ideas exported by the U.S. to Eastern Europe; Challenges facing the region in moving to a capitalist economy.

The article focuses on the rise in the growth of the industrial sector in Eastern Europe. Many of the U.S. companies currently doing business in Budapest are considering establishing operations in other Eastern European countries such as Czechoslovakia and Poland. In General Electric's deal to purchase 50%-plus one share-of Tungsram, the Hungarian light-bulb manufacturer, the plan is to export 40% of the bulbs to Western Europe. Guardian Industries, a glassmaker based in Northville, Michigan, recently purchased 80% of a Hungarian glass factory. Guardian plans to export about half of the plant's production to Western Europe.

Reports on the return to work of furloughed federal employees following a partial government shutdown, meeting of 200 economic ministers to bolster trade and investment in Eastern Europe and check clearing by the Singapore Clearing House Association.