Bulgarian Telegraph Agency (BTA), 97-01-20

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From: Embassy of Bulgaria <bulgaria@access1.digex.net>

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

20 January, 1997

CONTENTS

[01] PETER STOYANOV: NEW BULGARIAN PRESIDENT

[02] GAS DELIVERIES FROM RUSSIA AGREED

[03] KOZLODOUI'S UNIT ONE TO BE RESTARTED

[04] DOLLAR JUMPS AGAIN

[05] FORMER BULGARIAN KING URGES POLITICAL CONSENSUS

[06] ROZWADOWSKI OF IMF ON BULGARIA'S FINANCIAL STATE

[07] ANTI-GOVERNMENT PROTESTS GO ON

[08] INTERIOR MINISTRY ADDRESS

[09] OPPOSITION URGES IMMEDIATE EARLY ELECTIONS

[10] PRESIDENT ZHELYU ZHELEV: DIFFERENCES AMONG POLITICAL FORCES REMAIN, ELECTIONS ONLY WAY OUT

[11] NEW PRESIDENT - SPEECH

[12] NEW PRESIDENT PETER STOYANOV TAKES OATH

[13] LEFT'S NOMINEE FOR PREMIER UNVEILS ANTI-CRISIS PROGRAMME

[14] ALCOHOL AND CIGARETTE ADVERTISEMENT RESTRICTED

[15] PANORAMA OF FRENCH CINEMA IN BULGARIA

[01] PETER STOYANOV: NEW BULGARIAN PRESIDENT

Stoyanov has repeatedly said he favours full membership of Bulgaria in the European Union and NATO while promoting relations with Russia. He has lined up the support of leading European politicians. In a letter to the president-elect in November 1996, US President Bill Clinton noted Stoyanov would be inaugurated a day before himself and expressed his expectations the two will closely cooperate over the next four years.

As early as his election campaign, Stoyanov said that he will seek a consensus on this country's major problems. During the last few days, which have seen a deepening of the political crisis, he reaffirmed this position and said he would mediate between the major political forces in the search for a solution to the crisis. Stoyanov called on both the ruling BSP and the opposition to carry on negotiations and reach a compromise. He said if no agreement was reached by January 22, he would exercise his presidential authority to achieve this goal. "Today the salvation of Bulgaria is not simply a slogan. The political game is over, because Bulgarians have run out of patience," Stoyanov said in an address last Sunday in the wake of surging mass protests.

According to Stoyanov, the national ideal of Bulgaria today is an economically strong and politically independent state. "Our strategic task is not only to overcome the crisis, but also to catch up with the fastest developing former Eastern Bloc countries," he says. According to him, Bulgaria should also seek to promote mutually advantageous cooperation with Russia, Ukraine and other former Soviet republics.

Peter Stoyanov was born in May 1952. He graduated in law from Sofia's Kliment Ohridski University and practiced as a lawyer for 15 years, specializing in civil law. Stoyanov was deputy justice minister in the UDF cabinet. He entered politics after the downfall of the communist regime.He is married, with two children. An amateur musician, member of the Beatles generation (as he himself puts it) and athlete - a former player for Plovdiv's Lokomotiv volleyball team - Stoyanov lined up for his campaign the support of famous musicians, singers, actors and national team soccer players. During the campaign, he had an unprecedented marathon of meetings nationwide.

On the road to the presidency, he scored three victories. He first won the nomination of the largest opposition force, the UDF, in competition with three candidates. Next Stoyanov defeated President Zhelyu Zhelev in a US- style all-opposition primary. Thirdly, Stoyanov defeated Left candidate Ivan Marazov at the second round of the presidential elections. According to surveys, Stoyanov was Bulgaria's most popular politician in late 1996.

[02] GAS DELIVERIES FROM RUSSIA AGREED

Under the Yamburg Agreement, signed between the USSR and Bulgaria in 1986 and expiring in 2010, this country has been receiving 3,340 million cu m of natural gas annually in repayment for investments made in the development of the Yamburg gasfield and construction work carried out on the pipeline on Russian territory. After settlement of this debt in March 1997, Bulgaria will continue to receive the same annual volume of gas until 2008, payable at international market prices in convertible currency. The Bulgargaz delegation left the Russian capital on Friday but the negotiations will continue in February and the sides will also sign an agreement on gas transfers.

Agreement was reached on the delivery of 1,200 million cu m of Russian natural gas to Bulgaria at 1996 prices, i.e. prices lower than the market ones. Gazprom agreed to deliver the quantities planned for the entire year in regular portions between January and May. After May the gas will be supplied on commercial basis and at market prices. For the next stage of the negotiations, Bulgargaz will have to present government guarantees, letters of credit or Western bank guarantees. The Russian side motivated this requirement by problems it has had with some other countries.

Topenergy, a fifty-fifty private joint venture between Bulgarian and Russian companies in May 1995, has been described by Bulgarian government officials as a "front-runner" in tenders which the Bulgarian Government has to invite by January 29, 1996. The successful bidders will be granted two 35-year concessions: one for the existing network which pipes gas to Turkey, Greece, and Macedonia, and another one for the planned new transit lines to Serbia. Sofia has said it is planning to negotiate on initial payments in natural gas with the existing lines concessionaire. Gazprom, which owns 50 per cent of Topenergy, may well enter the concessions race on its own. Gazprom President Rem Vyakhirev is expected in Bulgaria later this month.

[03] KOZLODOUI'S UNIT ONE TO BE RESTARTED

Unit One was shut down last May and samples were taken from the metal casing and were tested. On December 5-6 the supervisory bodies of the European Commission, Westinghouse, Siemens and Russia's Kurchatov Institute concluded the metal casing was in good condition and said the Unit may operate until the end of its design life in the year 2004. Kozlodoui's oldest reactor, Unit One, was brought on stream in 1974.

[04] DOLLAR JUMPS AGAIN

[05] FORMER BULGARIAN KING URGES POLITICAL CONSENSUS

[06] ROZWADOWSKI OF IMF ON BULGARIA'S FINANCIAL STATE

It is not so important whether Bulgaria will anchor its currency to the German mark or the US dollar, he said. To him, what matters is the level which the lev will be fixed at. The criteria should be the the competitiveness of Bulgarian goods on the external markets, full backing of the money supply, inflation rates, fixing the exchange rate of the lev at its market level.

To the IMF Resident Representative, the 1997 national budget should prioritize the protection of social gains and the assistance to the most vulnerable groups of the society. The IMF backs the idea launched by Bulgaria's major trade union amalgamations, to set up extrabudgetary social funds that would accumulate foreign aid, Mr Rozwadowski said. He said that the prices of energy sources and raw materials should not be controlled and fixed centrally but formed on market principles.

The IMF and the World Bank are for acceleration and transparence of privatization in Bulgaria, Mr Rozwadowski said. The flow of domestic and foreign investments should also be increased, he pointed out, specifying however, that this would require not only macroeconomic stability but many other measures in the area of agrarian reforms and the social sphere and, foremost of all, political stability.

[07] ANTI-GOVERNMENT PROTESTS GO ON

The Socialist Party wants to negotiate a new socialist government and refuses to concede failure, said Ivan Kostov, leader of the Union of Democratic Forces, at a united opposition rally in Sofia on Friday. Protestors chanted "Never" in response. Kostov said the opposition expected the Left to forego the opportunity to form a second cabinet and show it was aware of the infinite trouble it had caused to the Bulgarian people. The UtdDF will not betray the people who have taken to the streets to defend lawfully their interests, Kostov said. Students staged their sixth march in the afternoon, blocking streets in central Sofia and chanting "We won't stop until the victory".

Strikes and protest actions organized by the trade unions are going on nationwide. After a working meeting, the National Trade Union Council stated its position against a new socialist government, and in favour of the formation of a caretaker government and early parliamentary elections in an acceptable time frame. The Podkrepa trade union, the Promyana Association for National Trade Union and Citizen Action, CITUB, the national students' protest committee and the organizing committee of the academic community, which are members of the Trade Union Council, said they were resolved to carry on their protests and strikes until their demands were met.

The Government Press Office, consolidating reports from various ministries, announced that out of an aggregate staff of 301,388 in the 466 industrial enterprises checked, a total of 5,173 were on strike. Of these, 1,307 stopped work effectively and 1,307 staged token protests. Of the strikers, 5,169 raised political demands. The effective strike action at the Stomana Iron and Steel Works in Pernik on Friday inflicted damage estimated at 117, 000 leva. No strike action was taken in any of the 81 chemical industry companies checked, the press release says. None of the companies within the system of the Ministry of Energy and has stopped work. No effective strike actions have been taken in the transport system, no roads are blocked, the road bulding companies, rail and air transport are not striking either.

The Regional Administration of the Region of Sofia put the total number of protestors within the territory of the region on January 16 and 17 at approximately 8,000. Out of a total of some 20,000 students, between 3,000 and 4,000 have so far taken part in protest actions, according to the press release.

[08] INTERIOR MINISTRY ADDRESS

"Let tomorrow be a day for celebration; a march before and during the ceremony would bring back the spirit of protest and darken the festive mood, " the leader of the opposition Union of Democratic Forces (UDF) Ivan Kostov said during meetings with students. "Let squares around Parliament remain calm," the general coordination committee of trade unions and student organizations said in an address whose text was sent to the BTA. The address invites people to a celebration at 10 a.m. on January 19 of the inauguration of the new President. A concert will be held at 4 p.m. in the square in front of the Alexander Nevski Cathedral, a site of daily protest rallies of the opposition.

[09] OPPOSITION URGES IMMEDIATE EARLY ELECTIONS

The rally was joined by marches from Sofia's Lyulin, Ilinden, Krasna Polyana and Vuzrazhdane districts. Students walked the streets of Sofia hand in hand, forming a human chain and chanting "Down with the BSP", "Elections", "Red Trash" and "We Want to Live". Rallies were also held in a number of cities nationwide.

[10] PRESIDENT ZHELYU ZHELEV: DIFFERENCES AMONG POLITICAL FORCES REMAIN, ELECTIONS ONLY WAY OUT

Zhelev expressed a regret that the positions of the political forces did not come closer after the second round of talks on the formation of a new government which ended Saturday. "At the end of the first round I was hoping that this would happen, and a compromise would be reached," he also said. He quoted the example of the Bulgarian Business Bloc (BBB) which supported a new Socialist government at the first round, and is now categorically opposed to such a government. The BBB now favours a task- force cabinet or a cabinet of experts. "The second round of consultations showed that views are growing farther apart, under pressure from the people outside who adamantly oppose a BSP cabinet," Zhelev also said. "The people believe the Left should relinquish its right and agree to speedy early elections." President Zhelev said he will continue to seek a compromise. He also said it would be better if the next government is mandated by his successor Peter Stoyanov, who will work with it. According to Zhelev, the BSP showed it cannot govern. "The sooner it realizes this fact and agrees to speedy elections, the better for the country," the President said in conclusion.

[11] NEW PRESIDENT - SPEECH

"I am convinced that this country needs early parliamentary elections and a new civil covenant. It needs elections which will bring more harmony to society and allow the government to carry out painful but vital reforms, together with the people flooding the streets and people that have stayed home," Stoyanov said. He said that before achieving these goals, the major political forces should reach an agreement on market reforms and on steps to deal with the crisis, such as introduction of a currency board, financial stabilization and structural reform.

Now people expect to get what they didn't in 1990- "real market reforms, opportunities for individual advancement, motivation to work in Bulgaria, responsible politicians and a clear idea of where we are and where we want to be now, next year, in ten years and in the 21st century," Stoyanov said. This means those plundering the country and abusing power should be punished, said the new President.

He expressed a belief that Bulgarian society and Bulgarian politicians should pursue an open, sincere dialogue on all issues. "It is unacceptable for Bulgaria's future to be decided at round tables or midnight meetings of dubious legitimacy. The important issues should be resolved by the National Assembly, the Government and the President, in full view of the public," Stoyanov said.

"The last few days have helped us see something I had a glimpse of during the election campaign- a new will for change in Bulgaria. This is what brought people out into the streets. The Bulgarian nation was patient enough to demand the change as late as now, but it made its demands especially categorical," Stoyanov said, adding this is a challenge to the political elite. "We have no time, we have to make the right choice and opt for a Europeanstyle civilization, express our will and lay the groundwork for integration into the European Union and NATO," Stoyanov said, drawing lengthy applause.

"We may be seeing the economy decline; yet the good news is that the people's morale is rising. We will find no better new beginning for the shattered Bulgarian democracy," Stoyanov went on to say. According to him, the people in the streets have shown politicians what to do. "They are there because they are desperately poor, and they are poor because the last few years have seen only the simulation of reforms, coupled with corruption and a haughty neglect of public opinion. People will go back home when we show that we get their message," Stoyanov said. According to him, two things have been made impossible by the latest developments - "neglect of what is happening around us, and decisions based on political bargaining alone." The public covenant needed today is not between party and party, but between the people of Bulgaria and their rulers, Stoyanov stressed.

He admitted that when he decided to run for the presidency a year ago, he had a lot of doubts. "What gave me the courage to run was the conviction I am a free, and at yet committed, manfree of the prejudices of the past and committed to the problems of the present and the future. This allows me to say I'll do my best for politics to be decided in a way that will give the people of Bulgaria confidence and self- respect," Stoyanov also said.

"With the economic and political crisis deepening, I should perhaps feel more insecure than ever. Yet I feel more confident than ever, because I've seen the strength of our people and feel sure of Bulgaria's bright future. I believe I'll preside over a new Bulgaria, with a new type of thinking and a new will, Bulgaria of the 21st century, where I would like us to step together," Stoyanov said in conclusion.

[12] NEW PRESIDENT PETER STOYANOV TAKES OATH

After 12 days of protests against the government of the Left demanding early elections, their organizers- the opposition and trade unions- called on citizens to come to the streets not to protest but to celebrate the inauguration. Stoyanov and Kavaldjiev won the elections last November on the ticket of the united opposition. Hundreds of people were gathering in front of Alexander Nevski since early morning. Security around Parliament was enhanced. No incidents occurred.

"I swear in the name of the Republic of Bulgaria that I will observe the Constitution and laws of the land, and that all my actions will be governed by the interests of the people," were the words which Stoyanov and Kavaldjiev said, one after the other. The new President was congratulated by National Assembly Chairman Sendov, his predecessor President Zhelev, outgoing Prime Minister Videnov and MPs.

For the first time in Bulgarian history, there will be continuity- Zhelev will step down, and Stoyanov will take over, on Thursday, January 22, when the term of the former expires. The official beginning of the new President's term is the day he takes oath. The ceremonial change of a President, who has representational powers, happens for the first time in Bulgarian history and marks the beginning of a new tradition. Regardless of the economic crisis and heightened public tensions in the last few days, the act of the transfer of power should be accompanied by the appropriate festivities, President Zhelev's chief of protocol Hristo Cholakov told BTA. He expressed a regret the Bulgarian ceremonies will lack the fireworks and parades inseparable from the US or French tradition.

[13] LEFT'S NOMINEE FOR PREMIER UNVEILS ANTI-CRISIS PROGRAMME

Nikolai Dobrev stressed he had put forward his anti-crisis programme for discussion, suggestions and criticism to the Executive Bureau as well as to prominent figures, but declined to name them. There is not much latitude for manoeuvres now, said Dobrev, who believes a fast, unconditional introduction of a currency board is the key to financial stabilization. Real market conditions for all companies with a state holding are also a must if stabilization is to be achieved.

Other requirements according to him are stabilization of the banking system through faster liquidation of banks under special supervision, capital adequacy, a higher minimum capital requirement of up to 5,000 million leva, and setting up a debtcollection agency to service state-owned banks in receivership.

The programme envisages a new fiscal policy based on much higher tax collection rates, a higher tax threshold, tax breaks to small and family businesses, and taxation of all taxable incomes. Expenditure should be cut down to equal revenues, the state apparatus should be minimized by removing its parasitic component, and incomes in education and healthcare should be restructured, said Dobrev.

A new agreement for external assistance is also included in the programme, which rules out a moratorium on external debt service payments.

The restructuring of the economy requires the immediate closure of all enterprises slated for liquidation; massive privatization and new- style management of state-owned companies, free of white-collar workers and parasites. Measures are planned to promote small and medium-sized business, restructure production and broaden the export potential to ensure smooth external debt servicing, Dobrev said.

The document also deals with the incomes and savings of members of the public, as well as with the social protection of groups hit worst by the crisis.

Corruption is the hallmark of transition and we must pool efforts to cut off its head, Dobrev said. Speaking about muchneeded legislation in this area, he singled out a law on civil servants.

Dobrev stressed he strongly opposed strong-arm tactics and always put understanding first. "I have already said the protests are just and I will not use force against hungry people who protest justly," Dobrev said. Impoverishment is shocking: wages in the state-financed sector dropped by 69 per cent in 1996 and its employees are below the poverty line, he said. "I am fighting the tendency of adventurists, criminals and organized groups to head this just protest," Dobrev stressed.

Opting for early elections amidst confrontation means the election campaign will not be tolerant and fair; it will involve settling of accounts and the germ of confrontation will be passed to the next parliament, said socialist leader Georgi Purvanov. It is very likely that the country will end the crisis and achieve political stability with a politician like Nikolai Dobrev, which is our opponents' worst bugbear, Purvanov said, answering a question. Dobrev said: "We may rethink our position when our opponents convince us that what they suggest is better for Bulgaria."

[14] ALCOHOL AND CIGARETTE ADVERTISEMENT RESTRICTED

Trade in transplants will be banned under the amendments. The law regulates the cases and the conditions for taking ograns for transplantation. Exports of organs and tissues is not permitted except to countries with which Bulgaria has signed international agreements for exchange of organs and tissues. The debates on the bill will continue next week.

[15] PANORAMA OF FRENCH CINEMA IN BULGARIA

There will be just one show of Cyril Collar's film "Wild Nights", holder of 4 Cesars (the French equivalent to the Oscar awards) and of the jury's grand prix at the festivals in Turin and Anger. The film, whose premiere will be in May, will be distributed in Bulgaria by director Peter Popzlatev. On the programme is also "A Discrete Hero" starring Mathieu Kassoviz and Jean-Lewis Traintignan, "Fanfan," starring Sophie Marceau, "The Brides of the Second Year," with Jean- Paul Belmondo and "Subway" with Izabelle Adjani and Christophe Lambert.

The public will also see four Gerard Oury's comedies, two of which feature Burville and Louis de Funes - "The Squit" and "The Grand Promenade". Oury's two new films, "The Decamp" and "Phantom with a Driver" featuring Pierre Richard and Filip Noiret will mark the closing of the panorama. The Cinema House, which is on a symbolic strike, offers tickets at a little lower prices and special discounts for students.

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