World Notes CZECHOSLOVAKIA

A joke making the rounds in Prague has a group of people, among them Czechoslovak Finance Minister Vaclav Klaus, asked to identify an upturned bottle top. All except Klaus give the expected answer. The Minister, who proposes radical reforms that would cut deeply into living standards, pauses only briefly before answering: "It's a pan for frying steak."

While Klaus' plans are less drastic than the wags imply, he has a reputation for toughness. President Vaclav Havel himself has long argued that Klaus' shock therapy is too severe and would produce civil unrest.

But Havel's moderation suffered a setback last week when Klaus easily defeated the President's candidate to become the new chairman of the Civic Forum alliance. Although aides admitted the vote was a blow to the President, Havel's response was statesmanlike. He invited Klaus for a beer and called in the press to photograph them drinking happily together.