MILS NEWS 01/03/96

From: "M.I.L.S." <mils@MILS.SPIC.ORG.MK>

Macedonian Information Liaison Service Directory

CONTENTS

MILS NEWS

Skopje, 1 March 1996

[01] REASONS FOR UNPREDEP IN MACEDONIA - NOT ELIMINATED

Brigadier-General Bo Wranker took over the command of UNPREDEP in Macedonia yesterday, replacing Brigadier-General Juha Engstrom from Finland. The change took place in the camp of the Nordic battalion in Skopje. The ceremony was attended by: Macedonian President Kiro Gligorov, the Commander of the Finnish Army Gustav Hegmund, the Chief of Mission UNPREDEP Henryk Sokalski, the diplomatic core to Macedonia and other officials.

In his speech, President Gligorov pointed out that: 'The presence of the UN troops in Macedonia for more than three years already has confirmed the efficacy of the idea for a preventive diplomacy.'

Gligorov also greeted the UN Security Council decision to realize the idea of an independent UNPREDEP Command in Macedonia. He said some reasons for the presence of this preventive Mission are still not eliminated.

Chief of the UNPREDEP Mission in Macedonia Henryk Sokalski viewed the independence of the Mission as an act of a political justice, that confirms the validity of the aspirations of Macedonia. 'We have never treated this country as 'former', and we have the honour to serve in a sovereign, independent and equal peace-loving member of the international community,' - said Sokalski.

Now former UNPREDEP Force Commander Juha Engstrom said the last report of the UN Secretary General, Boutros Boutros Ghali, clearly showed that conditions for ending this Mission have began to appear. Such conditions are: the mutual recognition between Macedonia and FRY and stability at the mutual border region, full implementation of the Dayton Accord and the sufficient defense power of Macedonia.

The new UNPREDEP Force Commander Bo Wranker emphasized that there is still a risk for incidents to happen at the Macedonia - FRY border, which could worsen the situation. He considers this as a possibility due to the fact that the two countries have still not recognized each other, so the border is still not clearly determined. That is why the prevention of possible incidents at the border will remain one of the main tasks of UNPREDEP, said Wranker.

[02] KOSOVO ISSUE - ANOTHER CONDITION FOR RECOGNITION

Macedonian radio yesterday informed that the European Parliament has decided to set one more condition for FRY to be recognized by the EU (besides the recognition of Macedonia) - to solve the issue of Kosovo. Previously, this has been suggested by the US diplomacy since the beginning of the year.

The current situation in Kosovo threatens to provoke a new conflict, that might expand to the neighbouring countries, according to the European Parliament. That is why it is required from Miloshevic to immediately start a negotiating process with the Kosovo leader Ibrahim Rugova and other Albanian representatives from Kosovo. Taking into account the urgency of solving these problems, the Parliament appealed to the European Commission to open its Office in Kosovo as soon as possible. The deputies also expressed their concern for the situation in Vojvodina, as there were some indications that Serbia is trying to change its ethnic structure.

Meanwhile, today's 'Nova Makedonija' informs about several explosions of bombs in different towns in Albania that followed the one of the car-bomb in Tirana. In Shkod%r, a bomb exploded in a container, and in Vlor% and in Grams explosives were thrown on a terrace, but there were no victims. Albanian police discovered about 15 kilos of explosive near Shkod%r recently, as well as Yugoslav made automatic rifle.

[03] MEETING OF THE FINNISH ARMY COMMANDER AND MINISTER HANJISKI

Macedonian Defense Minister Blagoj Hanjiski yesterday received the Chief of Staff of the Finish Army General Gustav Hegmund, the Finnish Ambassador to Macedonia, Timo Koponen and the UNPREDEP General, Juha Engstrom. Hanjiski informed on the structure and system disposition of the Macedonian armed forces, and on the activities of the Macedonian Army regarding its participation in the activities of the 'Partnership for Peace' Program, which will take place this year. Opinions on the security situation in the region and the role of UNPREDEP Mission to Macedonia were also exchanged.

[04] SIMITIS - 'NO 'MACEDONIA' IN THE NAME OF THE NORTHERN NEIGHBOUR'

'Greece does not change its attitude that the name of its northern neighbour must not contain either the term 'Macedonia' or any other derivatives from it.' - Greek Premiere Constantine Simitis said on a press conference in Athens yesterday. He announced that a Conference on economy cooperation of Greece with other Balkan countries will be held on 11 and 12 March in Thessaloniki. The Conference will be on the Government level, but Simitis did not say which countries are invited.

Greek Premiere also said the relations of his country with FRY are good, and that constant efforts are made to solve the misunderstandings they had on the issue of Thessaloniki Port.

[05] POSSIBILITIES FOR GREEK INVESTMENTS IN THE MACEDONIAN ECONOMY

A Greek business delegation arrived yesterday in Skopje to discuss the possibilities for Greek investment in the Macedonian economy. 'Makfax' agency informed that Greek delegation will have several meetings in the Macedonian Chamber of Commerce and will discuss the possibilities for cooperation in trade, agriculture, telecommunications and food industry.

[06] INTERCEDING FOR A MEETING OF BALKAN FOREIGN MINISTERS

Macedonian Foreign Minister, Ljubomir Frchkovski, yesterday received the Bulgarian Ambassador to Macedonia, Angel Dimitrov and the Special Envoy of the Bulgarian Foreign Ministry, Iordan Kozuharov. The guests handed the letter from the Bulgarian Premiere Zan Videnov to Macedonian Premiere Branko Crvenkovski, in which he suggests a meeting of Foreign Ministers of all Balkan countries. Minister Frchkovski expressed the readiness of Macedonia to further develop relations and cooperation between the two countries and wider in the region. He stressed that a Resolution on the development of the good neighbourly relations between the Balkan countries, initiated by Macedonia, has been adopted by the UN General Assembly last year.

[07] TURKISH AMBASSADOR MET WITH MINISTER FRCHKOVSKI

Macedonia Foreign Minister Ljubomir Frchkovski met yesterday with the Turkish Ambassador to Macedonia, Unal Marasli, who congratulated him for the new position on behalf of the Turkish Foreign Minister, Denis Baikal. They discussed the further activities in the development of the bilateral relations, and the current situation in the region.

[08] ELECTION OF A NEW PALIAMENT PRESIDENT

Macedonian media informed that the resignation of the current President of the Macedonian Parliament, Stojan Andov, will be verified on the 40th session of the parliament next Wednesday, probably without any discussion.

A-1 Television unofficially informed that Stojan Andov himself required his resignation not to be discussed. The same source also informed that there is a possibility for Andov to suggest a break of the session immediately afterwards, so that consultations are made for a new President of the Parliament to be suggested. Speculations are that this positions will be taken by the current Vice President of the Parliament and Coordinator of the Parliamentary Group of Social Democrats, Tito Petkovski .

A-1 Television reported that the former Macedonian Foreign Minister Stevo Crvenkovski has been appointed a Counselor to the Macedonian President Kiro Gligorov. He was not, however, given the position of a Foreign Policy Counselor, but of a Counselor for the Political System Issues, which was his duty in the first Government of Branko Crvenkovski.

[09] RECONSTRUCTION OF THE SKOPJE AIRPORT NEXT AUTUMN

Skopje Airport will be closed from 1 September till 15 November this year, when the runway will be completely reconstructed. The air traffic during this period will be transferred to the Ohrid Airport. The lighting of the Airport will also be renewed, and the area will be fenced in. The reconstruction will be made with the credit from the European Bank, in the amount of 17.8 million DM, while additional 4.2 million DM will be obtained from the state budget.

[10] HIGH NUMBER OF INNOVATIONS IN MACEDONIA

Macedonian Institute for Protection of Industrial Property, during the last two years, has registerd 712 patents, 137 industrial designs and 38 319 trade marks. The patent library of the Institute has almost 3 million patents at its disposal. The Institute offers the possibility for a patent to be registered in 80 countries from all around the world simultaneously, with the international Agreement called 'Patent Cooperation Trading'.

The Manager of the Institute said such a number of innovations is high for even much more developed countries than Macedonia.

[11] EXHIBITION ON THE 100 ANNIVERSARY OF THE OLYMPIC GAMES

The exhibition 'Athens 1896 - Atlanta 1996', organized by the Macedonian Olympic Committee on the occasion of the 100 Anniversary of the Olympic Games, was opened yesterday in the Museum of Macedonia. Amongst other displays, all the trophies and photographs of Macedonian athletes that participated in the Olympic games are exhibited. The exhibition will be presented in several other places in the country.

MILS SUPPLEMENT:

[12] FOREIGN INVESTMENTS AND THE TAX SYSTEM IN THE REPUBLIC OF MACEDONIA

The system-based implementation of the elements of the market economy in the Republic of Macedonia, is particularly focused on the foreign investment and the special regulations and benefits on that basis. By this kind of implementation we try to provide for secure investments and opportunities to attract and retain foreign capital in our country.

About the Law on Profit Tax

A profit tax payer is a legal or physical person performing registered activity, that is not a resident of the Republic of Macedonia, for the profit gained from business activity in the territory of the Republic.

Tax Rate

According to the Law, the profit tax is 30%.

Tax Deductions and Exemptions

The taxpayer has the tax base deducted for the amount of the profit invested in new investments (reinvested profit) in the Republic, but up to 30% at most from the tax base in their branch.

The taxpayer that has invested an amount of the profit in economically undeveloped communities (mountain areas, border regions and compact undeveloped districts) has the tax base deducted for the amount invested.

The profit tax liability of the legal or physical person performing a registered activity, that is not a resident of the Republic of Macedonia, is deducted for the corresponding amount of the profit that belongs to him/it on the basis of the amount invested in the first three years.

The proportionate amount of the profit that belongs to the taxpayer - non-resident of the Republic of Macedonia for the first three years is determined for all the investments (new investments) as a profit share, from January 1, 1994 on.

The taxpayer has the tax liability deducted for the amount of the profit (resources) invested in preserving the environment and nature, as well as in the international sport which is of an importance for the Republic.

The term 'resources' used for preservation of the environment and nature means resources used for equipment, appliances and instruments for reducing and measuring the air and water pollution and land contamination; introducing clean technologies and construction of stations for public and industrial water cleaning; installing air pollution preserving filters; recycling; collecting and depoting waste or dangerous materials, etc.

The amount of profit invested in international sport which is of importance for the Republic is proved by submission of an appropriate documentation by the competent authority for the physical culture.

Taxpayer's Liabilities

The profit taxpayer - non-resident of the Republic of Macedonia, draws up a tax balance for part of the profit he/it gains from business activity in the territory of the Republic of Macedonia, on the basis of accounting records he/it keeps for agencies and other forms of performing activities in the Republic of Macedonia.

Profit taxpayers that do not have accounting records for the profit gained in the territory of the Republic of Macedonia, determine the amount of the profit gained in the territory of the Republic of Macedonia in proportion with the share of the amount of the wages paid to the workers employed in the Republic of Macedonia in the total monetary stock of the wages paid to the workers employed in the Republic of Macedonia in the total monetary stock of the wages paid to the entities for the period for which the profit tax liability is determined.

When Can the Transfer of the Resources Be Carried Out?

The transfer of the resources on the basis of profit can be carried out after appropriate evidence for the payment made on the basis of the profit gained in the territory of the Republic of Macedonia is submitted to the Public Revenue Office.

An evidence (note) for the profit tax payment is issued by the bearer of the payment whom with the taxpayer has a giro- account.

(to be continued)

mils news 1 March 1996