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MILS: News from the FYROM, 97-08-15

Macedonian Information Liaison Service Directory - Previous Article - Next Article

From: "Macedonian Information Liaison Service" <mils@mils.spic.org.mk>


CONTENTS

  • [01] `UNPREDEP' FORCES COMPONENT TO BE DOWNSIZED (?)
  • [02] `PRIVATIZATION REDEFINED' - NO, THANK YOU
  • [03] A `SHOTGUN WEDDING' OR PURE LOVE?
  • [04] MUCH ADO ABOUT NOTHING.
  • [05] `ILINDEN PARTY ANIMALS' RELEASED FROM PRISON
  • [06] EU TEXTILE TREATY: `DELAY WILL NOT BE DAMAGING'
  • [07] `FINANCIAL TALES': HOW IS OUR BUDGET DOING?
  • [08] WORLD BANK GRANTS CREDIT TO `TETEKS'
  • [09] BLACK MARKET BETTER STOCKED AND ERGO TOLERATED
  • [10] HIGH NOON - A FINAL DECISION OR A STRIKE OF ALL TRUCK DRIVERS.
  • [11] `IT IS TIME TO JOIN FORCES'
  • [12] INSTEAD OF ONE-WAY TRAFFIC - A BOULEVARD
  • [13] THE NATIONAL STRATEGY ON THE LONG-TERM ECONOMIC DEVELOPMENT OF THE REPUBLIC OF MACEDONIA: THE INDUSTRIAL SECTOR - PART 10

  • MILS NEWS

    Skopje, 15 August, 1997

    [01] `UNPREDEP' FORCES COMPONENT TO BE DOWNSIZED (?)

    Concordant to the latest Report on `UNPREDEP', submitted to the UN Security Council by Secretary-General Kofi Annan on 28th May 1997:

    `(22.) Internally, economic and social problems continue to pose a significant threat to the country's integration and long-term stability and further exacerbate inter-ethnic tensions. These internal problems give rise to the question of whether the current mandate of UNPREDEP is relevant to the present situation and, as my predecessor has stated, whether it can be implemented with fewer resources. Taking into account the new developments, it seems advisable to pursue the implementation of the Council's decision to start, as of 1st October 1997, a two-month phased reduction of the military component of UNPREDEP by 300 all ranks, bearing in mind the conditions prevailing over that time in the region. In the meantime, I have requested my Special Representative and the Force Commander to continue to explore the most practical options for flexible redeployment of the Force in the remaining months of the mandate taking into consideration the situation in the region and the mandate of the Force.

    (23.) As the international community's involvement in the region will be necessary for some time to come, and given the request by the authorities of the host country to maintain an international presence, I have instructed my staff to begin intensive consultations with the host Gvt., other international organizations and interested Member States on the type of international presence that would be most appropriate for FYROM after 1st December 1997. The results of these consultations will be reflected in my report preceding the termination of the current mandate of UNPREDEP on 30th November 1997.'

    These are some of the observations of key relevance to our country made by the Secretary-General, which basically condition the above mentioned reduction and sustainability mode on the overall situation in Macedonia and the region. As regards the former, Annan expressed his concern about the drawback in inter-ethnic relations over the past 3 months only augmented by recent events at Tetovo and Gostivar - whereas the latter has been assessed as more positive, owing to such successful programmes as the `PFP' (within NATO) or Phare (within the EU). Annan once again highlighted the endeavours made by his Special Envoy Cyrus Vance in connection to the name-issue, as well as the achievements of all UNRPEDEP components and their cooperation with host- nation structures in all sectors and inter-governmental organisations (e.g. OSCE).

    [02] `PRIVATIZATION REDEFINED' - NO, THANK YOU

    Slovenia has lodged a protest with succession mediator Sir Arthur Watts due to the possible privatization of Slovenian assets in FR Yugoslavia (provisions to this purpose are rumoured to be contained in the Privatization Act). The formal note of protest is to reach Sir Watts via diplomatic channels by Monday. This `redefined' notion of privatization would not only mock all negotiations conducted so far, but also unacceptable in the eyes of any international institution, Slovenian officials claim.

    [03] A `SHOTGUN WEDDING' OR PURE LOVE?

    `SAMSUNG should not be concerned of the Gvt.'s offering the privatization of FENI to any other international investors such as the German `Krupp' concern. It is uncontentious that negotiations (to which they possess the exclusive rights) are to be completed by the end of September - as outlined in the Statement of Trust and Intent, signed this March. After this deadline, however, other interested parties will obtain a hearing too. The issue of FENI's debts is quite clear as well: they have been transferred to the state long ago, changed into an investment and thus the state has practically become the owner of the metal-production facility - ergo gaining the right to negotiate its future. The Gvt. needs to shed light onto relations between the FENI mines and the FENIMAK consortium', stated Transport and Communications Minister Adbulmenaf Bedhzeti, who used to head the Macedonian negotiation team (its present head, Development Minister Adbulmenah Neziri, is currently taking his annual vacation).

    `Samsung' representative Yung-Ho Shin assessed the Gvt. decision to offer the `FENI' project to other international companies as well as an `obscure move' yesterday, motivated by the interest of German concern `Krupp' to join the game. One of the most contended issues also lies in the differing estimates on `FENI' assets compiled by both sides, which has been denoted as `quite normal when one is selling and the other one is buying, with the subtle difference that in the case of FENI the objective is not its selling/purchase but a transfer of governance - a pre-privatization measure', states Bedzheti. Another `trip wire' is the ownership status (Is `FENI' a nationally-owned enterprise or not? Consortium members incl. state and private companies.) and its debts assessed to app. 300 million $. These have formerly been federal, now they are national and `Samsung' has never chosen to discuss this issue - neither does it intend to do so.

    [04] MUCH ADO ABOUT NOTHING.

    .. appears to be the proper characterization of party and organisation feedback with regards to proposed employee rights curtailing - if one is to trust the words of Gvt. Spokesman Zoran Ivanov who aired his `.astonishment with the `cry wolf' attitude assumed by most political parties', in spite of the fact that these proposed measures - which are still not final and whose draft-version has not seen the light of day so far - do yet need to be discussed during a Gvt. session.

    [05] `ILINDEN PARTY ANIMALS' RELEASED FROM PRISON

    Yesterday afternoon Dragan and Kire Nikolovski (Prilep) and Vancho Sichkov, Gjorgji Sarakinov, Simeon Georgiev and Stojan Efremov from Shtip have been released from the Municipal Penitentiary of Bitola. This follows the release of Valentin Kitanov (Shtip) four days ago. All of them are facing charges on violating the honour and repute of the Republic of Macedonia. At present the only one detained on the same grounds at Bitola is Icho Gavrilov (Kadino Selo - Skopje) who will appear at the Elementary Court of Krushevo on 20th August.

    [06] EU TEXTILE TREATY: `DELAY WILL NOT BE DAMAGING'

    The premature implementation of the Textile Export Treaty between the EU and Macedonia, which `de facto' began on 1st August, did obviously catch our country with `its breeches down' - at least in the opinion of our textile producers. The latter are highlighting the difficulties emerging upon attempting to procure prerequisite documents in order to obtain an export permit at the Ministry of Economy. This dept. has also commenced the issuing of these permits a `wee bit too late.'

    Under-Secretary Jani Bogoevski ascribes this to the fact that `neither side has ratified the treaty so far, but we have agreed to start its implementation ahead of time in order to keep any damage for our textile producer at a minimum level. Thus the Gvt. has received the EU approval on this time schedule on 28th July, while the Ministry suffered a delay in issuing the necessary export permits.' The Ministry however claims that this did not have any negative impact upon our industry, as well as that only certain categories of producers required a permit. With regards to the ratification of this treaty, the Gvt. is to compile the corresponding legal act as soon as possible and the Parliament is then to vote on it during its next session.

    [07] `FINANCIAL TALES': HOW IS OUR BUDGET DOING?

    So far everything has been progressing as planned, i.e. till yesterday a total 55% of all budget revenues (assessed to amount to 44.5 billion denars this year) have been collected. This also applies to the acquisition rate of VAT funds (app. 55%), luxury goods tax (59.7% or 6.6 billion denars). In contrast to this under-achievement reigns within the revenue tax category (38% or 2.4 billion denars), customs duty (48% or 3.3 billion denars). The Ministry of Finance has been very explicit that meeting the demands of budget beneficiaries depended on the daily inflow of funds. Thus at the moment waiting periods of 60 days are no uncommon phenomena.

    The IMF reacted by demanding the observing of the order of disbursement in this context. One of the `most patient' customers is the Ministry of Education - esp. with regards to maintaining educational facilities. At present obligations from January are being settled, while scholarships and bursaries are being disbursed at a more regular pace: May is the month being wrapped up there. So far, the top candidates for the `debtors' prison' are the MOD (owing funds since February), while the Ministry of the Interior is in a much better position. Particular attention is being paid to the sustaining of social programmes, the forwarding of benefits to laid-off and redundant workers. Thus just in July 1997 the inflow of public revenues has increased by 43% in comparison to June.

    And yet the question of `to have nor not to have' a complete national budget remains open - as this also depends on the outcomes of the newly-implemented economic measures. Initial data on this is due towards the close of this month, since the final deadline on paying withheld payroll contributions at a 70% discount rate expires on 31st August. This will then determine whether a rebalancing of the Budget will be necessary.

    [08] WORLD BANK GRANTS CREDIT TO `TETEKS'

    The World Bank has approved a 2.5 million $ credit for Tetovo-based textile producer `Teteks'. The loan is termed with a repayment deadline of 5 yrs., following a grace period of 2 and a half years. The papers are to be signed these days to facilitate the implementation of the first tranche of funds which - as `Teteks' Deputy General Director Ismailaki Emurlan states - are to be `invested into new equipment and restructuring of the production process. This will eventually enlarge the product range and quality standards.' Ergo providing greater security for the 4 700 employees of this company. Similar progarmmes have already been conducted and more have been designed and submitted to appropriate Gvt. and banking structures. Such ventures have an inevitable impact on export quotas, which have amounted to 12.5 million $ in revenues by this July. The sum to be reached by the end of 1997 is 19 million $, this would represent an increase of 10% compared to last year.

    [09] BLACK MARKET BETTER STOCKED AND ERGO TOLERATED

    `The HEPTANON crisis forced me to go to the black market and buy one tablet for 70 denars, though you can get it for 15 denars at some private chemists' if you have the connections. A bottle of 40 drops costs 1 400 denars and if you have the money you can buy what you want and as much as you want. Eight months ago I was on a daily dosage of 10 tablets, now I'm down to 4. I don't even think of going back to heroin, though its quality is first-rate these days, they say.' These are the words of a 19-year-old who has been doing drugs for three years - an adequate reflection of one of the worst crises in the health sector so far.

    At present it is cheaper to use heroin (500 denars for one shot), than `Heptanon.' The last reserves should be used up by Monday, and the imported shipments from the Netherlands will have to pass international controls in Vienna first (at the Board for Narcotics and Toxic Substance Supervision). Health Minister Petar Ilievski attributes this crisis to the fact that new importers (`Alkaloid' and `Pliva') needed to be found after `Replek' had terminated its contract. Private suppliers are also not allowed to sell `Heptanon' or `Methadone', while the Gvt. is keen to ensure that they do not sell anything else without prescription either - and the police is denying having confiscated any `Heptanon' supplies. Thus the black market seems to be tolerated by everybody: form the patients who really do not have a choice to the police who have `no comment.'

    [10] HIGH NOON - A FINAL DECISION OR A STRIKE OF ALL TRUCK DRIVERS.

    ..seems to be the reader's digest version of recent dealings between the Independent Trade Union Organisation of Truck Drivers (`Makamtrans') and the Ministry of Transportation and Communications. The former aired their demands at yesterday's protest in Bitola, attended by hundreds of the endangered truck driver species from Bitola, Prilep and Kavadarci. Requests incl. adherence to old procedures while negotiations with the Ministry are in progress (outcomes due on 20th August) in connection to the distributing of TIR labels. Should this not be the case, truck drivers from all over Macedonia are to assemble at Bitola on 21st in order to set a date for a mass demonstration.

    [11] `IT IS TIME TO JOIN FORCES'

    Is the opinion of WMC (Geneva) figurehead Vlado Ralev who has been exposed to severe `incoming' barrages for launching the initiative to join both World Macedonian Congress, as well as accusations by the leadership of his own organisation that he is preparing the ground for his political career. In response to this Ralev stressed that this was `merely an initiative, not a decision. so far the cake has not been sliced up and many organisation issues remain to be clarified.' He urged the `piqued' members of the Geneva WMC to consider the essence of this initiative and then pass the appropriate decision.

    [12] INSTEAD OF ONE-WAY TRAFFIC - A BOULEVARD

    The long-awaited introduction of one-way traffic on `Ilindenska' St. will not occur. Instead the city fathers have decided to make the street `bigger, better, faster' by turning it into a four-lane boulevard. Already installed traffic lights and signs are to be `recycled' i.e. used elsewhere and the funding is to remain the same: construction contractors owing the city money will do `hard labour.'

    [13] THE NATIONAL STRATEGY ON THE LONG-TERM ECONOMIC DEVELOPMENT OF THE REPUBLIC OF MACEDONIA: THE INDUSTRIAL SECTOR - PART 10

    The resuscitation of existing facilities would include the adaptation of machinery to running of natural gas, which is to substitute liquid fuels. This may particularly be the case with respect to the production of cement, bricks, roof tiles, porcelain and ceramics. The processing of nonmetal raw materials and decorative stone is to be marked by an improvement in produce variety and quality; by introducing products with a design and standards valued both in the country and abroad. In this context, the production of construction materials would be tailored to suit the needs of the contemporary construction business in order to secure fast and high~quality work while bearing in mind ecological factors.

    5. In case of Timber Industry the revival of existing facilitates should concentrate of improving the design and quality of final product in order to increase their competitiveness. This will require production specialization as well as the organizing of small ~ scale serial production. To achieve this particular attention will have to be dedicated to the organization of marketing, modelling, economic propaganda and sales.

    6.The branch covering Textile and Leather goods, though of low profitability, due to its high labour intensity and prevailing dependence on export, belongs to the principal sectors to be submitted to reconstruction and the modernization of current technology. Due to the fact that the textile and leather industry in Macedonia employs about 25% of the labour force, it is abundant in multifarious products and a favourable ground for private initiatives. The production of textile yarns and fabrics, of final textile products, leather and fur goods, of leather footwear and accessories, is marked by low capital intensity, low energy dependence, high labour intensity, by the possibility of depression and an extreme export orientation. This may be entailing vital incentives to restructure and even set up new minor processing facilities in order to improve the completion of products and manufacture goods in demand both here and absurd.

    The modernization of existing facilities is a priority issue, particularly with respect to textile industry where old technology and equipment ~ in addition to the necessity to tailor production to fit the needs of the market ~ are felt in particular. This is complemented by the course ownership transformation is adhering to, in order to improve organisation and governance in the business sector. Textile and lather goods production is expected to evolve via increasing international cooperation in all domains. The resuscitation of the alkali sector within textile industry is to enrich the variety of products ( yarns of higher numeration), increase product quality and standardization concordant to international market criteria, etc. It has been assessed that the new facilities will be constructed in this sector of textile industry over the next five to seven years, which is why part of the synthetic fibers will continue to be imported as reproduction materials. In addition to the revival existing capacities, the production of finishing textile goods is to promote the small business sector.

    Concordant to present conditions, the reconstruction of existing facilities within the alkali industry for manufacturing leather goods and footwear should focus on increasing production in order to meet the demands of the economic sector and the domestic market. Besides this it should concentrate on improving fur export and the trading of fur goods and other products. Bearing in mind the insufficient amount of raw materials available and the high dependence on export, one cannot expect to witness the expansion of production facilities within the alkali segment of leather goods and footwear industry very soon. The modernization and updating of leather footwear and accessoires` production should be achieved via upgrading existing facilities and increasing the application of creative components, such as design, modelling, marketing, etc.

    7.The development of the Agro-Industrial Sector embodies an attractive part of the economy of the fact that it procures food for the population, in addition to generating incomes and engaging the labour force productively. A modernizing of facilities for the production of flour and bakery products will be conducive to the enlarging of product variety and product quality in order to meet the growing demand imposed by consumers. Following global nutrition trends and introducing new products which may be exported are only a couple approaches to achieve this. As regards flour production, i.e. the raw material basis and the utilization of existent facilities, the further constructing of new enterprises would not prove economically viable. Reconstructing and updating facilities for the processing of vegetables and fruit should focus on introducing new technological procedures and an ~ septic packaging method.

    Based on these grounds it will be possible to master more sophisticated processing methods and enrich the range of products with frozen or dry vegetables and herbs/seasoning; fruit extracts, aromas and colourings; fruit milkshakes, tea blends, etc. The resource foundation and export potential in terms of organic food pose a challenge as regards the expanding f vegetables and fruit processing facilities, through the establishing of small ~ scale processing plants adaptable to market demands.

    (to be continued...)

    mils news 15 August, 1997


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