Monday, Jan. 14, 1991

GRAPEVINE

By DAVID ELLIS

VACLAV HAVEL

Czechoslovakia's President bluntly told his citizens to expect bitter hardship: "What a year ago seemed to be a dilapidated house is in fact a ruin." As the country rapidly moves to free markets, he admitted, "inflation will grow despite all measures designed to curb it."

With reporting by Linda Williams