MAK-NEWS 19/12/95 (M.I.L.S.)

From: "M.I.L.S." <mils@ITL.MK>

Macedonian Information Liaison Service Directory

CONTENTS

MILS NEWS

Skopje, 19 December 1995

[01] MEETING IN A CORDIAL AND WORKING ATMOSPHERE

After the meeting of the Macedonian Ambassador Tosevski and the Greek Ambassador Zaharakis by mediation of Cyrus Vance last Friday, it is decided that the negotiations are to continue on January 11 next year in New York. The announcement of the UN Secretary General Spokesman, cited by A1 TV, says:

"According to the Interim Accord signed on 13 September '95, representatives of Greece and FYROM met with Cyrus Vance, an envoy of the Secretary General, and considered different aspects on the further implementation of the Accord, especially the 5th article. The meeting was held in a cordial and working atmosphere and lasted few hours, and before the meeting, Mediator Vance had separate meetings with Macedonian and Greek officials. Both representatives responded to the Vance's invitation and agreed to resume direct negotiations on 11 January in New York".

As 'Makfaks' reports, Greek daily 'Ta Nea' says during consultations "Skopje's side' expressed moderateness and recognized the need for resolving the name issue.

[02] GREAT POTENTIALS FOR MUTUAL COOPERATION

"The potentials for mutual cooperation are great, however inevitable preparations will have to be arranged on the reactivating and development of the cooperation". This was stated by representatives of the Association of Exporters from North Greece during the visit to the Macedonian Chamber of Commerce. Greek representatives stated the visit was a proof of the interest for the re-establishment and development of economic relations between the two countries.

The Association has 800 members which makes it the most important business association in Greece. It sees the cooperation with Macedonia through the re-establishment of the trade exchange and through development of higher links of cooperation such as the formation of joint enterprises, mainly in the under-developed fields. Greek guests stated that the Salonica port is better equipped, which was not the case two years ago. The port has new price list and lower prices for the transit transport. They proposed publication of the list in Macedonia in order to acknowledge the businessmen of the prices which are not higher than those in the Burgas (Bulgaria) and Dures (Albania) ports.

Both delegations reviewed and paid great attention to the banking cooperation, and Greek representatives were informed that there are not any legislative problems for potential investors in Macedonia.

Representatives of the Greek Flight Control had talks with their Macedonian counterparts on the issues of regulation of flight of Macedonian planes over Greece as well as the establishment of regular air traffic between the two countries. They also discussed the regulation of the charter traffic. It is expected that representatives will sign a "letter of understanding" which will regulate relations between flight controls of the two countries.

[03] ACHIEVEMENT OF MILITARY BALANCE IN THE BALKANS

At the Conference of confidence measures and control of the armament in the Balkans which was held In Petersberg, it was stressed that if arms competition stops the peace in the Balkans may be certain. The Conference was attended by Foreign Ministers of 32 countries of EU, the Balkan region, the three countries that signed the Peace treaty in Paris, as well as representatives of NATO, OSCE and the Contact Group for Bosnia.

The Macedonian Foreign Minister was also in attendance. He stated that Macedonia is interested in control of the armament in the Balkans and development of good relations.

Crvenkovski underlined the recently adopted UN resolution on development of good neighbourly relations in the region, and pointed out that the withdrawal of the arms embargo may influence the balance of armament in the region. He emphasized that Macedonia has an obvious deficit in the quantity and quality of arms.

[04] MACEDONIA WILL NOT DEPRIVE ITSELF OF THE CONTINUITY OF FORMER SFRY

The issue of the succession has never been denied and all newly created states of former Yugoslavia have equal rights and duties in the field of the succession. This was stated by the President of Montenegro. Momir Bulatovic, for the BBC, saying that the Dayton agreement brought great progress in the regulations of the disputable issues.

Concerning the already announced, yet not realized mutual recognition between Macedonia and the Federal Republic of Yugoslavia, a foreign diplomat in Skopje for A1 TV stated that there is a diplomatic pressure going on to the Serbian President Slobodan Milosevic to revoke requests and ultimatums concerning the recognition and the issues of succession. Macedonia, as the diplomat said, should not deprive of its official policy on the succession and the continuity over the former federation equally with other newly created states of former SFRY. He added that he expects Milosevic to accept the recognition and not condition it with the continuity.

[05] A CONCRETE POSITION ON THE ALBANIAN NATIONAL QUESTION

The leader of the Right Wing Opposition Alliance in Albania, Sabri Kodom, requested a concrete position on Kosovo and other ethnic areas of Albanians , from the Albanian Government. As 'Makfaks' reports, citing the leader's statement for 'Koha Jone', Albanians and Kosovo were not included in the Dayton agreement, and Albania and Kosovo must have identical positions on the national question of Albanians.

'Makfaks' also reports that Albanian president Sali Berisha at the meeting with the German President Roman Hertzog was promised that Germany will support the autonomy of Kosovo and the rights of Albanians. Albanian President demanded international pressure on Serbia to resume the national and human rights of Albanians in Kosovo.

[06] MILITARY COOPERATION IN PROGRESS

A high military delegation of Turkey made an agreement with Macedonian military representatives on cooperation of both armies for the next year. The agreement was signed by Generals Metin Yelchn and Yanaki Manasievski, both in charge for the training of the military staff. The Turkish delegation was also received by Macedonian Defense Minister Blagoj Handziski and the Chief of Staff of the Macedonian Army, General Dragoljub Botzinov. They talked on the possibilities of further cooperation between Macedonia and Turkey in the field of defense which is already arranged by three bilateral agreements.

Minister Handziski received yesterday the Acting Czech Ambassador in Belgrade, Ivan Bushnyak and talked on the possibilities of improvement of military cooperation between the two countries.

[07] MACEDONIAN-ISRAELI COOPERATION IN THE FIELD OF AGRICULTURE

A delegation of the Macedonian Agriculture Ministry led by Minister Ivan Angelov have talks with their Israeli counterparts on cooperation in the field of cattle farming, irrigation systems, construction of mini-farms, and the organization of centers for improvement of agriculture.

Macedonian delegation will visit several scientific and educational institutions in the field, including 'Vulkani Institute', the main Israeli center for development of the agricultural technology.

[08] HUNGER STRIKERS FROM 'CHIK' HAVE NO CONTACTS WITH THE GOVERNMENT

15 days passed from the beginning of the hunger strike of the former employees in 'Chik' Kumanovo, however the government did not respond to their requests on talks with Governmental representatives. The health condition of strikers is getting worse and, as Macedonian TV reports, doctors asked for imediate hospitalization which was refused by the strikers. The right of unemployment supplement expired yesterday to the 90% of the former employees. Only 170 persons that were employed over 25 years will continue to receive the unemployment supplement until the reemployement or retirement come to efect.

[09] 15% OF THE POPULATION IS CONCERNED BY THE DENATIONALOZATION

The Association for Protection of Interests of Owners of the Nationalized Property expressed criticism to the remarks concerning the proposed Law on Denationalization. The Association criticized the Government for being slow in the adoption of the Law as well. The Law, as it says, concerns 300.000 inhabitants of Macedonia, or 15% of the total population, so the Association insists on more frequent contacts with the Government. It also demands that the deadline on the forms delivery to former owners should be met, and the process should consider the reality and righteousness in returning the properties.

MILS SUPPLEMENT:

[10] 'THE POWER IS IN THE SMALL ENTERPRISES'

('Nova Makedonija', 18 December 1995)

The gigantic industrial enterprises are behind us, Europe and the World claim that small and medium enterprises are the future. Republic of Slovenia, for example, had 4000 small enterprises and this number has increased ten times this year. The new way of rationalizing the big manufacturing companies in this country brought to an explosion of enterprises with less than 50 employees, that make 94 percent of the total number of companies in Slovenia.

Foreign credit lines, which will be available for future Macedonian businessmen already at the beginning of 1996, are the first such resources that will stimulate the investments in Macedonia. Favorable payment terms and interest rates are much more attractive than conditions offered by commercial banks, and are exclusively intended for small and medium producing enterprises. Macedonian Government recently adopted the draft Project for Development of the Small and Medium Enterprises prepared by the Ministry of Economy, in which frames the Fund for Financial Support of the Small and Medium Enterprises and the Business-Information Center.

This material contains strategy elements which start from the realistic possibilities of Macedonia, because of the financial and other limits of the country. An Expert Group from the Ministries of Labor and Social Politics, of Economy, of Finances and of Legal Affairs, have this task to make more realistic proposal, incorporated with the macroeconomics. Project is based on experiences of the developed foreign countries and countries in transition.

Assistant Minister of Economy and member of the Expert Group of the Central European Initiative for small and medium enterprises, MA Marija Zarezankova - Potevska, says that there are infrastructure institutions in the foreign countries, including banks that offer credits and warranties, as well as other institutions that help in educational and consulting areas.

The restructuring process of Macedonian economy, especially the industry, with the reorganization of the big companies into smaller productive enterprises, can already be felt in Macedonia with all its positive and negative effects. 'We need a support', says Zarezankova - Potevska, 'as it is not an easy task to create an investment program. Somebody might need a single machine to start working. That is why we should help those people to obtain both educational and financial help. The quality of the products should also be improved, international standards should be accepted so that the world welcomes Macedonian high quality products.

Ministry of Economy will have a complete control on these activities to stimulate the development of small and medium enterprises, as well as private shops. The financial power is another issue.

In case the Government has not enough resources to credit small businesses, new credits from foreign finance institutions are expected to be approved. The reactions of the domestic representatives from this area are positive.

Most of all because nobody has offered such funds up till now. The so-called German credit of 10 million DM, enriched with 10 million DM from the Government has the returning period of three to eight years and 6 to 18 months grace period. During the grace period only the annual interest rate of 9 percent will be paid, and maximum amount of a credit is 150.000 DM. Except for forming of the small and medium enterprises, this credit, which will be given through 'Almako Banka', will be possible to be used for buying off the firms for sale, as well as for reconstruction of the production.

The credit of 40 million DM from European Bank is announced to be given in February 1996, from which 30 million will be possible to be used in 1996, and the rest 10 million in 1997. This credit has a return payment period of 18 months, LIBOR interest rate plus 3,2 percent margin (about 9 percent annually). It will be given through 'Stopanska Banka', which will receive 10 million DM, the same as 'Makedonska Banka'; through 'Almako Banka' with 6 million and 'Export-Import Banka' with 4 million DM. Those who will submit investment programs for manufacturing agriculture products, for transport and for half - manufactured products, will have the priority in obtaining this credit.

'The state', says Zarezankova - Potevska, 'must understand how important this development of smaller enterprises is. 90 percent of the companies all over the world are such, and 70 percent of the employees work in them. Such enterprises are a link in the chain of economy subjects that produce final products, and everywhere the small ones work for the big ones. Our project includes creating a data bank, as we even do not know that something is produced here. This bank would include the innovators, as well, to help them produce their innovations here instead of outside the country.'

At the moment, Ministry of Economy is a coordinator of three other projects for help to small and medium enterprises. The first and the greatest one is from the US Agency for International Development, which would last 18 months, with a possibility to be extended. The aim of this project, according to Zarezanovska - Potevska, is to give an educational support to small business enterprises, mainly intended for private firms, although the Ministry makes efforts to include the still not privatized big companies.

These days a Business Resource Center will be opened in Skopje, an introduction to the Information Center which will be opened by the Ministry of Economy. There is already a list of potential foreign investors interested in Macedonia.

The second project is from the British Government 'Know-How' Fund, which will start in 1996 and will contain of two phases. First, a national strategy for development of small business enterprises, and which is more important, two more regional centers in Ohrid and Tetovo - Gostivar region, in fact, a net for supporting the development of these firms will be formed. This is also a project of educational and consulting help. The last project is of the Northern Rajna Westfalia, the reintegration program of which has been changed in a so-called program for providing a self- existence. It will last for 27 months and will also offer financial support. Ministry of Economy will be included in determining the priorities and the credits given will be from 30 to 40 million DM, regarding Skopje and its surroundings, not only for Romas, but for all other citizens. One of the conditions to be fulfilled is that a Macedonian institution which would multiple this fund, should take over the activities and resources. This is required by the USA fund as well, says Zarezanovska - Potevska, which is the reason why we are trying to form a national agency for development of small and medium enterprises.

The Government should definitely work on intensifying the development of small businesses, mostly from the aspect of the expensive and, very often, unacceptable for the small businessmen, bank credits.

(end)

mils news 19 December 1995