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HUNGARY CZECH COMPROMISE PRAGUE Czechoslovakia Oct 25 With an announced spirit of good will the Czecho sloviakian cabinet met today to formulate a reply to the latest compromise territorial demands from Hungary The new Budapest proposal which reduces the previous Hun jgarian claims somewhat was backed by a I sharp statement by Hungarian Premier Bela Imredy who announced at his capitol Hun ¬ gary still hopes for a peaceful settlement of the problem on the basis of the Munich principle Otherwise the Hungarian govern ment is determined to enforce its just case 1 jwith all means at disposal of the nation Imredys assertion drew an official declara j i tion from Prague that Czechoslovakia in the i territorial negotiations Will show good will from the start to solve the problem in 1 such a spirit that a basis of permanent good i relations between the two countries will be j created thereby