News from Bulgaria / Mar 29, 96

From: bulgaria@access1.digex.net (Embassy of Bulgaria)

Bulgarian Telegraph Agency Directory

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

29 March, 1996

CONTENTS

[01] FIRST PREPARATORY MEETING FOR PAN-BALKAN CONFERENCE

[02] BULGARIA - US AGREEMENT FOR COOPERATION IN PEACEFUL USES OF ATOMIC ENERGY

By force of these accords Bulgaria and the United States willcooperate in scientific research in the peaceful uses of nuclear power, as well as in nuclear safety and radiation protection. "The agreement is a manifestation of the fact that Bulgaria meets all international requirements," Yanko Yanev said after the signing. "Bulgaria has signed similar agreements with Russia, France and Germany and is preparing such an agreement with Japan," Mr Yanev said. Asked what will be the benefits for Bulgaria, Mr Yanev gave as example the prospects for this country to receive under this agreement previously embargoed special technologies for the N-plant in Kozlodoui.

[03] PARLIAMENT RATIFIES AGREEMENT WITH GREECE ON WATERS OF MESTA RIVER

The agreement, signed last December in Sofia by the foreign ministers of the two countries Karolos Papoulias and Georgi Pirinski, provides for Greece to use 29% of the average annual flow of the Mesta River formed on Bulgarian territory for 35 years. Opposition MPs criticized the agreement yesterday as based on old data.

A UDF representative declared that the parliamentary group of the opposition "will not take part in this national treason" and the group “voted with their feet”. The National Assembly Chairman refused to revote the ratification on the proposal of the parliamentary groups of the opposition Popular Union (the Bulgarian Agrarian National Union and the Democratic Party) and the Movement for Rights and Freedoms (MRF, of the ethnic Turks).

At a special news conference later today the UDF parliamentary group issued a statement on the ratification of the agreement. It said the opposition is not against its signing. It claimed, however, that some clauses endanger Bulgaria's interests.

PGDL floor leader Krassimir Premyanov rejected the accusations of the UDF and stressed the importance of cooperation with Greece. He assured the MPs of the MRF that the parliamentary left will also support bills aimed at improving cooperation with other Balkan states, including Turkey.

Nevertheless all opposition MPs with the exception of those of the Bulgarian Business Bloc walked out in protest and returned to the debating chamber only when the parliamentary majority voted for a live TV broadcast of the sitting. "Should TV cameras determine national interests?" Ms Klara Marinova, chair of the parliamentary National Radio, Television and BTA Committee, asked the opposition MPs.

MPs of the Democratic Left said that the absence of the opposition during the discussions of the next point on the agenda - the ratification of an agreement on opening three new border checkpoints between Bulgaria and Greece - was national treason. The two agreements were signed simultaneously in Sofia.

Several MPs of the opposition said their protest was related only to the Mesta agreement. A UDF representative said that the coalition attaches due importance to cooperation with Greece and new road links with that country. The MPs continued to exchange accusations on the Mesta River agreement and the procedure of its ratification even after debates on the new border checkpoints agreement ratification began.

At the start of negotiations, Greece asked for 33% of the annual flow of the Mesta River originating on Bulgarian territory, Teodor Roussinov, Deputy Head of the Foreign Ministry's South-Eastern Europe Department, told a news conference later on. Bulgaria insisted that the agreement stipulate that the average annual natural flow will be taken as a basis, instead of the annual flow, he said.

This means that in dry years Bulgaria will not be able to make available to Greece 29% of the annual flow. The agreement does not provide for allowing Greece to use 29% every year, Roussinov said. The proportion will be fixed on an annual basis in the rules of the Bulgarian-Greek water management commission which is to meet six months after the agreement enters into force.

Bulgarian institutes have conducted studies showing that Greece's using 29% of the Mesta River will not be an obstacle to projects of the National Electric Company and other hydrolic engineering projects, Roussinov said.

The agreement protects the national interests and is a component of the long-term constructive policy of cooperation between Bulgaria and its neighbours, Greece included, Roussinov said. The parliamentary national security, foreign policy and European integration and economic committees came out with positive stands on the agreement on new border checkpoints and new road links between Bulgaria and Greece.

The new road links will foster economic growth in the borderland regions, boost transborder cooperation and reveal good possibilities for joint work with Greece on EU, PHARE and INTERREG projects, the parliamentary National Security Committee said. It will encourage the building of trans-European transport corridors IV and IX through Bulgaria, according to the economic committee. The agreement was ratified unanimously.

[04] COUNCIL OF MINISTERS' DECISIONS

Sofia, March 28 (BTA) - The Government approved today a programme for the development of telecommunications in Bulgaria between 1995 and 1998. According to Chairman of the Committee of Posts and Telecommunications Lyubomir Kolarov the programme is in compliance with the international trends in that field. The programme, which envisages licensing of certain activities, introduction of new technologies, price liberalization etc., is to be discussed in the National Assembly.

Under amendments to a 1991 Government's Decree which the Council of Ministers adopted today, commercial banks will be able to sell freely unlimited quantities of foreign currency to local persons, departments and state-financed organisation once they have received the permission of the Finance Ministry. The procedure used so far required loan applications to be submitted both to the Finance Ministry and to the Central Bank (BNB). Today's decision of the Government cancels this complicated procedure.

The Government approved the report of the Finance Minister about the performance of the State Fund for Reconstruction and Development in 1995. The Fund granted a total of 122,908,000 US dollars loans of which 34 per cent went to the power generation, 8 per cent to transport, 14 per cent to construction, 26 per cent to industry, 14 per cent to the military-industrial complex and 4 per cent to other branches, Government's Spokesman Nikola Baltov said. So far the Fund has pooled a total of 64,700 million US dollars.

The ministers approved the suggestion of the BNB for the minimum prices of ZUNK-bonds. For the second half of 1996 the minimum price of leva-denominated bonds was set at 700 leva for 1,000 leva par and of US dollar-denominated bonds - at 90 US dollars for 100 US dollars par.

The Cabinet approved amendments to the tax rates charged within the system of Industry Ministry for licensing trade in scrap and splinters of ferrous and non-ferrous metals and their alloys. The price for a full license for processing and trade in metal scrap was raised from 14,000 leva to 40,000 leva and its validity is limited to two years. Partial license will be issued for a limited period of one year and will cost 20, 000 leva, up from 7,000 leva.

The Council of Ministers set today new limit prices for liquid fuels and natural gas to be valid in April. The mark-up ranges from 1.50 to 2.50 leva depending on the type of fuel.

The Government adopted new pricing methods for water for industrial and household uses. The new methods do not apply to geothermal waters used for heating, hothouses and irrigation. At present the water prices in the country range from 4 leva/cu m in Sapareva Banya to 23-24/cu m leva in Razgrad, Dobrich and Rousse (North-eastern Bulgaria).

A Bulgarian post-privatization fund will accumulate about ECU 45 million which will mostly come from the European Bank for Reconstruction and Development (EBRD), the Government's Spokesman said. The Council of Ministers approved today the draft agreement with the EBRD which is expected to be signed at the bank's annual meeting.

Sofia-based Gazmontazhstroy Inc. received the Government's permission to join the Bulgarian-Yugoslav Mingaz partnership. The partnership will take part in the tenders for construction and assembly works on gas and oil pipelines as well as for other projects on the territory of Yugoslavia. The Bulgarian company will contribute a 49 per cent share of the total capital.

The Council of Ministers approved today: two intergovernmental agreements for cooperation with Slovakia in quarantine and plant protection and in veterinary medicine; the trade agreement with Cyprus signed on March 12, 1996; a draft agreement with Norway for mutual encouragement and protection of investments; a draft extradition agreement with China; a Bulgarian-Romanian agreement for cooperation in health protection and medical science.

The Government will suggest to the National Assembly to give permission to an Ukrainian warship to take part in the military exercise of the Bulgarian navy "Shtorm '96" on April 10 - 20 near Varna.

The ministers gave permission to the US warship "Arthur Redford" to pay an informal visit in the port of Varna between April 8 and 11.

The ministers of foreign affairs and of trade presented to the Government today a report on Bulgaria's candidacy for membership in the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies and in the Australia Group.

[05] GOVERNMENT RECOMMENDS RECALL OF BULGARIAN AMBASSDOR TO SPAIN

[06] BULGARIA'S AUTHORITIES HAVE NOT LICENSED ARMS SALES TO RWANDA

[07] BULGARIA-TURKEY: OPTICAL CABLE LINK-UP DUE IN APRIL

Haskovo, March 28 (BTA corr.) - Time limits for the link-up of an optical fibre cable between Europe and Asia were discussed by representatives of the Bulgarian Telecommunications Company and Turkey's telecoms operator, Turktelekom, who met in the southern Bulgarian town of Svilengrad on Wednesday. Bulgaria has met all commitments related to the transboundary telecommunications ring, said Ivan Popov, Director of the Telecommunications Unit in Haskovo.

The Haskovo-Plovdiv, Haskovo - Stara Zagora, and Haskovo - Kapitan Andreevo sections of the ring were accepted by the state acceptance board last November. The cable was laid by Pirelli. The Turkish telecoms operator has to lay some 600 metres of optical fibre cable, it emerged at the Svilengrad meeting. Turkey pledged that the link-up would be effected within a month.

The opening of a digital transit traffic exchange in Haskovo (Southern Bulgaria) is a matter of days. It is part of the transboundary telecoms ring linking Europe and the Middle East. The project is financed by international financial institutions under the Digital Overlaid Networks programme.

A study is under way for the speedy laying of an optical fibre cable through Haskovo, Kurdjali and the Makaza Pass, which is to link Bulgaria and Greece. "Bulgaria will have communications up to European standard, good international links and foreign currency receipts," Popov said.

[08] IMF RECOMMENDS BANK REFORMS

According to the source, banks in Bulgaria should be reduced from 50 to 20, of which five state-run and fifteen private. State banks would keep 72%, and private banks 28%, of the assets.

The IMF recommends to transform the State Savings Bank into a commercial bank over five years, and, if the banking system is stable, phase out the 100% deposit guarantee. Two state-run banks will be significantly trimmed and will merge, probably also absorbing the Vitosha Bank for Agricultural Credit.

Six banks would be liquidated. One should turn into debt- collection agency, lose its licence, and later on possibly become an investment bank.

Small private banks would be consolidated, leaving about six banks or bank consortia. The IMF report emphasized this scenario is recommended rather than mandatory. The authorities may choose to only use the overall idea.

[09] DRAFT INDUSTRY LAW PROVIDES INCENTIVES

A draft law on industry, developed by the Industry Ministry, provides for tax and customs incentives for new product development. The law provides for additional financing for new products and technology, which the government is not in a position to provide, "Troud" writes, commenting on the law. The incentives would help raise additional income for the government, "Troud" writes. The only objections come from the Finance Ministry which protests the loss of revenue. "Effective legislation suppresses investment and hampers industry, which the draft law corrects," argues Pavel Marinov of the Industry Ministry.

[10] “OFFICE 2000” INTERNATIONAL FAIR

The fifth international exposition of office, bank and hotel equipment is held in Sofia from March 25-29. Taking part are 70 Bulgarian and foreign companies making and trading in furniture, office automation, and computer networks and software.

Foreign companies are attracted by the opportunity to establish closer contacts with Bulgarian makers and distributors of office automation.

The Bulgarian market has the right orientation; Bulgarian traders know what they want and appreciate the quality of products regardless of their price, said representatives of the Greek company Leontaridis. According to them, Bulgaria should put in place legislation on trade.

One of the problems of this year's edition is that the price per unit of exhibition space has remained unchanged from 1995, says Chavdarova, which reduced the host country's receipts. Bulgaria will benefit most from attracting businessmen who wish to gain a foothold in the Bulgarian market, Chavdarova stressed.

Bulgaria is represented by several state-owned companies which hold a monopoly, as well as by smaller private companies. Interestingly, state-run companies act as dealers for renowned international companies.

The number of foreign companies at the fair has increased over the years. As a result, more contracts have been signed between Bulgarian and foreign businessmen, participants said.

A national seminar on "Computers in Management" was held in conjunction with the fair.

[11] GOVERNMENT SPOKESMAN'S STATEMENT ON POSSIBLE VISIT OF FORMER KING SIMEON

According to the Bulgarian Constitution, the legislation of all democratic states and the generally accepted principles of international law, nationality unequivocally means a stable political and legal connection between a natural person and the State expressed in the totality of mutual rights and obligations, Baltov said in his statement.

This norms and principles apply to the specific case at hand - the rights and obligations of Simeon Saxe-Coburg-Gotha. On June 11, 1991 the Bulgarian State issued a foreign passport to Simeon Saxe- Coburg-Gotha, citizen of Bulgaria. The passport was issued to Simeon Saxe-Coburg-Gotha in his private capacity, after he filed an application, specifying his occupation as "consultant", and the place of his permanent residence as Madrid, the Government Spokesman said in his statement. At the same time, with his statements for the press and with his activities of late, Simeon Saxe-Coburg-Gotha has gone beyond the sphere of private law, undertaking ever more energetically acts which come within the scope of public law, it is said in the statement. In an interview for the French weekly L'Action Francaise Hebdo" of February 8, 1996, reproduced in the "Korona" paper on February 9, Simeon Saxe-Coburg-Gotha states that the 1946 referendum which led to the establishment of a republican form of government in Bulgaria has "no validity", that he has "advocated the advantages of constitutional monarchy" all his life, that Bulgaria could become a "crowned democracy" and that Simeon "has always been King Simeon", the statement goes on to say.

In 1991 the Grand National Assembly categorically reaffirmed the republican form of government and regulated the state system, the Government spokesman recalled.

Simeon Saxe-Coburg-Gotha's statements and actions are obviously unconstitutional as they violate one of the articles of the Bulgarian Constitution according to which "no individual shall usurp the expression of the popular sovereignty", Baltov said.

That is why there is every reason to expect that Mr Saxe-Goburg- Gotha will make a clear public statement categorically declaring he is a loyal citizen of the Republic of Bulgaria who observes and respects the Bulgarian Constitution and the country's laws, including the republican form of government and the state system established with the Constitution of 1991, the Government spokesman said in conclusion.