BTA 09-06-95

EMBASSY OF THE REPUB;LIC OF BULGARIA

BTA - BULGARIAN TELEGRAPH AGENCY

BULLETIN OF NEWS FROM BULGARIA

JUNE 9, 1995


CONTENTS

  • [01] FOREIGN MINISTER PIRINSKI BACK FROM VISITS

  • [02] BUSINESS PRESS

  • [03] ADMIRAL MARIO ANGELI ON PfP

  • [04] PARLIAMENT RATIFIES AGREEMENT WITH INDIA

  • [05] PARLIAMENT PASSES LAW ON PROTECTION OF FARMERS

  • [06] FRANCE ENTREPRISES '95

  • [07] C. E. PARLIAMENTARY ASSEMBLY PRESIDENT IN SOFIA

  • [08] CABINET CUTS IMPORT DUTIES ON USED CARS

  • [09] COUNCIL OF MINISTERS DECISIONS

  • [10] NATIONAL COUNCIL TO ADDRESS SOCIAL AND DEMOGRAPHIC

  • [11] GREEK NEW DEMOCRACY CHAIRMAN VISITS BULGARIA

  • [12] BULGARIA, TATARSTAN TO COOPERATE IN BUSINESS


  • [01] FOREIGN MINISTER PIRINSKI BACK FROM VISITS

    Sofia, June 8 (BTA) - Bulgarian Foreign Minister Georgi Pirinski returne from Athens today. On his way back from the Republic of South Africa Minister Pirinski availed himself of his stop in Athens because of bad weather to confer with his Greek counterpart Karolos Papoulias. "I believe we agreed with Papoulias on the problems of shared interest," Pirinski said at his return. Without going into details, Pirinski expressed his satisfaction with the long conference he had with Papoulias at which the sides discussed the forthcoming official visit of Bulgarian Prime Minister Zhan Videnov to Greece. Under the healdine "Pirinski Activates Relations with Neighbours", today's "Pari" reports that the foreign ministers of Bulgaria and Greece considered a joint demarche to the UN Security Council for the compensation of Yugoemabrago-related losses and the recent shuttle of Papoulias and Greek Defence Minister Gerasimos Arsenis between Pale and Belgrade. The sides also discussed the opening of new border checkpoints along the common border. Mr Pirinski will visit Belgrade on June 19 and 20, the Bulgarian Foreign Ministry said yesterday. Towards the end of this week he will meet Romanian Foreign Minister Teodor Melescanu, next week he will visit Croatia and then receive Turkish

    Foreign Minister Erdal Inonu who is to prepare the visit of Turkish President Suleyman to Bulgaria scheduled for July 4 and 6. Commenting on his visit to South Africa for journalists today, Foreign Minister Pirinski stressed the important role that country plays in the processes of stabilization and economic recovery in that part of the African continent. In his view, the first visit by Bulgaria's Foreign Minister to South Africa after the change there opens good prospects for the promotion of bilateral relations. During his visit Pirinski signed three agreements on cooperation and an agreement on the expansion of contacts in culture, science and sports.

    [02] BUSINESS PRESS

    Sofia, June 8 (BTA) - The negotiations on a loan from the World Bank to improve water supply in Bulgaria ended; the terms of Bulgaria receiving the 98 million dollars loan (which Parliament will have to approve) are rather stiff, the financial news daily "Pari" writes, referring to Deputy Minister of Construction Daniel leviev. However, Bulgaria will not be able to resolve its severe water-supply problems without that loan, the paper was told by Leviev.

    "Cautious and gradual steps" is the underlying principle of the Cabinet's economic programme until 1998, it is noted in an extensive article "24 Chassa" carries today. The authors of the programme, including Deputy Prime Minister and Minister of Economic development Roumen Gechev, drew on the Japanese model of transition after World War II, the author of the article, banker Valentin Mollov, says.

    Telephone charges will be increased to meet the requirement of the banks financing the DON project for the construction of a digital telephone network in Bulgaria; the banks insist that telephone charges be adjusted on a quarterly basis, Lyubomir Kolarov, Chairman of the Posts and Telecommunications Committee, says in an interview for "Pari". In his words, the increase will not affect household users.

    The current review of Bulgaria's balance of payments shows that by May 30 1995 direct investments added up to 66.6 million dollars, "Demokratsiya" writes. The January-May trade balance shows a surplus: exports totalled 888.9 million dollars and imports 761.9 million. However, services ran a deficit: expenditures exceeded the revenue from transport, tourism and interest.

    The national carrier Balkan Airlines will receive five Tu-154 M aircraft replacing 15 outdated Tu-154 B from Russia in september this year, "24 Chassa" says citing Deputy Transport Minister Stanislav Velinov. Balkan Airlines will conclude an agreement with AUA, Austria's national carrier, on the joint operation of services between the two countries, the paper writes. A similar agreement will be possibly signed with the Russian Aeroflot.

    PHARE is expected to finance a project for the establishment of a zone for industrial development and activities (ZIDA) at Haskovo (Southern Bulgaria); the project will be carried out together with Greece, "Continent" says referring to the Ministry of Industry. The project will include environment-friendly productions, additional transport connections and raw material supplies. Investment will be made in a study for the construction of a waste processing plant.

    1,014,200 hectares of fields under wheat will be harvested in Bulgaria this year, "Douma" writes citing the Ministry of Agriculture and the Food Processing Industry. Adding the stock of 426,000 t of wheat to the 3.1 million t expected to be gathered this year, the country's bread balance will be provided for and some of the wheat may be exported.

    [03] ADMIRAL MARIO ANGELI ON PfP

    Varna, June 8,.NATO Navy Commander South Europe Admiral Mario Angeli made a high assessment of the first stage of the naval exercise "Cooperative Rescue'95" held in Bulgarian territorial waters. This is the first exercise of a NATO programme adopted late last year within the framework of the Partnership for Peace (PFP) initiative. Two more exercises of this programme are scheduled to be held in September and November 1995. The programme also provides for holding a meeting of all naval commanders of the Black Sea countries. "This exercise comes to confirm that Partnership for Peace in its naval aspects is no longer demonstration in words and manifestation of intentions, but concrete, specific and constructive work for achieving concrete goals," Admiral Angeli said at a news conference today. Admiral Angeli observed the exercises yesterday. "We saw that in the future too we may plan and hold exercises and this is the final and most important result," he said. Bulgarian Navy Commander Hristo Kontrov also expressed satisfaction with the exercises. According to him, the experience gained will be useful in implementing future tasks, such as combatting drugs trafficking, for instance. Admiral Angeli also praised the professionalism of the Bulgarian sailors. He was impressed by the record service of the missile cutters brigade commander - 28 years of which 24 on board. Only excellent sailors can give such long watches, the guest said. The NATO frigates left for Romanian territorial waters where the second stage of the exercises will be held. Now the Bulgarian sailors are preparing for the Breeze'95 and Naval Partner exercises which will be in the spirit of the PfP initiative.

    [04] PARLIAMENT RATIFIES AGREEMENT WITH INDIA

    Sofia, June 8 (BTA) - The Bulgarian National Assemmbly ratified today an agreement on the avoidance of double taxation between Bulgaria and India. The agreement was signed in May, 1994 and envisages also measures against the evasion of income and property taxes. It was pointed out in the discussions that the agreement is a prerequisite for further promotion of the cooperation between Bulgaria and India, as well as its enlargement with new forms, like direct investment in joint ventures, realization of joint projects etc.

    [05] PARLIAMENT PASSES LAW ON PROTECTION OF FARMERS

    Sofia, June 8 (BTA) - Parliament today passed an Act on the Protection of Agricultural Producers. The Act provides for the setting up of a National Fund for Agriculture to extend soft-term loans to agricultural producers. Most of the Act provisions were supported by an overwhelming majority. The first article of the law says that the state should create and maintain favourable conditions to ensure sustainable development of competitive farming and maintain national provisions balances. This shall be achieved by regulating the production of and trade in primary and processed agricultural produce on the basis of a system of subsidies, prices, loans, excise and customs duties, and fees. The article further reads that the above measures seek to boost and upgrade production and ensure sustainable income for agricultural producers. The law further places the cabinet under the obligation to develop and introduce at Parliament a strategy for development of agricultural production to be used as a basis for drawing up annual agriculture development programmes. The cabinet will set protective purchase prices for primary agricultural products: wheat, maize, sugar beet, milk and meat. Protective prices shall be set on the basis of the national average production cost for the above products plus profit, but shall not exceed 85% of the average export price. A separate provision in the law envisages that the government formulate terms for trade in and processing of agricultural produce, introduce and control the observation of the foreign trade regime, which includes introduction of interim foreign trade restrictions as a way to keep up the national balance for certain products and protect Bulgarian producers and consumers. A National Fund for Agriculture will be set up under this law. Funds will be raised in the form of annual budget subsidies, privatization proceeds, export fees for agricultural produce and grant aids. The funds will go for extending loans to farmers and subsidies for certain productions, and providing protective purchase prices. They will also be used to encourage export of certain products and boost production in mountain and semi- mountain areas. Farmers under 35 years of age will enjoy preference as borrowers. Preference will also be given to projects for sustainable and environment-friendly farming. After the law was put to the vote, representatives of the parliamentary forces hailed its passage. An MP of the Union of Democratic Forces (UDF), the largest opposition force, criticized the Socialists-led majority for not taking into consideration reasonable proposals of the opposition. The MPs of the UDF believe that the law does not adequately reflect the needs of Bulgarian agriculture and will have to be amended very soon.

    [06] FRANCE ENTREPRISES '95

    Sofia, June 8 (BTA) - A trade exhibition "France Entreprises '95" will be opened on June 13 at the Sheraton hotel in Sofia, Mr Henri Fontaine, trade advisor with the French Embassy here told a news conference. This year 70 French and Bulgarian-French companies will show its products on 23 stands. This is the second edition of the exhibition, which is organised by the trade service with the French Embassy here and the business club France-Bulgaria. All last year's exhibitors are taking part again and there are many new ones, Mr Fontaine told BTA. In his view this is indicative of the interest of the French companies in Bulgaria. Mr Fontaine said that as a result of last year's exibition the participants have increased their market share and for that reason they are here again. The exhibitors include big French business groups, as well as small and medium-sized enterprizes from all sectors. The commercial exchange between Bulgaria and France reached 1,660 million French Francs in 1994, according to figures released by the French customs administration, and Bulgaria showed a trade surplus. Bulgaria's exports to France are relatively regular, 40 per cent being farm products, products of the food-processing industry, textiles and clothes. The range of imported products has been changing in accordance with Bulgaria's needs, but France has regularly been selling here chemical products and pharmaceuticals, cars, foods and end products. The commercial exchange has been increasing over the last couple of years, however not at a rate, adequate to the two countries' potentials, Mr Fontaine believes. Some 25 French companies already have subsidiaries in Bulgaria, about 20 joint ventures were set up and more than a hundred French companies participate on the Bulgarian market in various forms. Mr Fontaine described the settlement of Bulgaria's payments on its foreign debt as a major factor contributing for the promotion of the bilateral relations. The prospects for offering loans and for providing credit guarantees due to the restored confidence in the banks will further boost trade. The French investments in Bulgaria are not significant, projects have been realized at a slow pace and this is hardly encouraging for those who may show interest. Bulgarian legislation is on the whole sastisfactory, yet it is difficult to make investments for lack of financial stability and guarantees for the projects, Mr Fontaine told BTA. France ranks 9th-10th in terms of volume of investments in Bulgaria, but investments will make a significant jump if a couple of projects are unblocked. One example is the project for the reconstruction of the Sofia airport, which was won at a tender by the French company Campegnon Bernard and is currently in a standstill for administrative reasons. The B.N.P. - Dresdner Bank Bulgaria, which was licensed in November, 1994 will start operating at the beginning of July. The bank is already at the last stage of its installation and will service the financing of international transactions. Bulgaria is still little known in France and more efforts should be directed in increasing its popularity, the French trade representative believes.

    [07] C. E. PARLIAMENTARY ASSEMBLY PRESIDENT IN SOFIA

    Sofia, June 8 (BTA) - The President of the Council of Europe's Parliamentary Assembly Miguel Martinez, who is on a three-day visit to Bulgaria, held talks today with Chairman of the National Assembly Blagovest Sendov and with Foreign Minister Georgi Pirinski. Mr Martinez discussed the big challenges before the Council of Europe in connection with its enlargement, the incerased role of Bulgaria in that process and the conflict in Bosnia and Herzegovina. Among the candidates to join the Council of Europe is Bulgaria's south-western neighbour Macedonia, which Mr Martinez visited before coming to Sofia. Mr Martinez said that he had considered in greater detail Russia's possible membership in the C.E. with Mr Sendov. Macedonia's and Russia's full membership in the C.E. were also on the agende in his talk with minister Pirinski which lasted much longer than scheduled. With Minister Pirinski Mr Martinez exchanged views on issues he considers very important, among them the war in Bosnia and Herzegovina. Mr Martinez asked for detailed information about Bulgaria's position on that issue and if Bulgaria believes that the European institutions should participate in a more active way. Asked by a reporter about the role of the Council of Europe in the resolution of the conflict in Bosnia, Miguel Martinez said that the developments in Bosnia are threatening the principles and norms they want to establish in Europe and that the C.E. would like to take a more active and more efficient actions for its settlement. After the talks Mr Martinez expressed his wish to see Bulgaria among the signatories to the Framework Convention for the Protection of National Minorities. After his talks with the Chairman of the Bulgarian Parliament Mr Martinez said that the convention has been signed by already 26 states and that Bulgaria is among the countries which observe the rights of the minorities. Mr Martinez discussed the same issue with Prime Minister Pirinski. Mr Martinez discussed with Parliament Chairman Sendov some more issues concerning the security in Europe and Bulgaria's "total and global participation in that process." He told reporters he is particularly concerned about Bulgaria's efficient participation in all European institutions. Mr Martinez was pleased to say that Bulgaria has made a progress in democracy, in the protection of human rights and that he was left with the impression that this country is experiencing economic recovery. Mr Martinez invited the Chairman of the Bulgarian Parliament to visit the E.C. Parliamentary Assembly.

    [08] CABINET CUTS IMPORT DUTIES ON USED CARS

    Sofia, June 8 (BTA) - The Council of Ministers today decreed a 40 per cent reduction of import duties on used cars. The new customs duties do not apply to buses and trucks because such vehicles are manufactured in Bulgaria, Finance Minister Dimiter Kostov said. The Cabinet's decision amended a 1993 government decree which more than trebled duties on imported second-hand cars. Since the beginning of 1995, the import of old cars in Bulgaria has dropped 90 percent from previous periods, Mr Kostov noted. "This amendment of the tariff treatment is intended to restrict used car imports rather than ban it altogether, as was the case so far," the Finance Minister said.

    [09] COUNCIL OF MINISTERS DECISIONS

    Sofia, June 8 (BTA) Today's sitting of the cabinet approved a package of intergovernmental draft agreements on mutual protection and promotion of investments and gave a go- ahead to the launch of negotiations to that effect with Moldova, Algeria, Bahrain, Croatia, Brazil and Ireland.

    The cabinet agreed to sign agreement on avoidance of double taxation and tax evasion with Portugal. Today's sitting decided to propose to Parliament to ratify intergovernmental agreements on mutual protection and promotion of investments with Georgia and Ukraine.

    The cabinet approved a bill of amendments to the Environment Protection Act to provide for the setting up of a national environment fund. The fund will manage the proceeds from debt-for-environment swaps. The cabinet ministers further approved the results of the negotiations with Switzerland for a debt-for-environment swap deal.

    The cabinet will ask a term for launching negotiations with the European Bank for Reconstruction and Development on a credit to finance the setting up of an exchange for fresh fruit, vegetables and flowers in Bulgaria. The Bulgarian side will negotiate for a US$ 35 million.

    The cabinet okayed a programme for admitting Cambodians at the Georgi Benkovski Higher Military Aviation School of Dolna Mitropoliya, Northern Bulgaria, for paid training in 1995. It further decided that Bulgaria offer repair services for Cambodian aircraft against payment.

    At today's sitting of the cabinet, Dencho Georgiev, head of the Bulgarian side of the working group on Bulgaria's accession to the World Trade Organization, briefed the ministers on the results of the bilateral negotiations held to date. The hearing was prompted by an upcoming sitting of the working group scheduled for June 23.

    The cabinet decided to propose to Parliament to okay the holding of multinational naval exercises codenamed Cooperative Partner'95, to be held in the Varna Bay on September 11-16 under the Partnership for Peace programme.

    The cabinet will also propose to Parliament to approve the participation of 11 foreign ships in the Breeze'95 military exercises in Bulgarian territorial sea on August 2 - 14.

    Today's sitting approved a National Budget Preparation Bill. The preparation of the budget has to date been regulated by an Act passed in 1960 that no longer corresponds to the social, economic and financial environment in the country, said Finance Minister Dimiter Kostov. A new element in the budgetary policy will be making budgetary projections. The bill envisages that budget loans aggravating the budget deficit could be extended only with Parliament's approval.

    The cabinet today passed unified requirements for acquisition of degree in medicine, dentistry and pharmacy. Students in higher schools in the above fields will be admitted after written admission exams in biology and chemistry. The curriculum will cover six years for medical students, five years for dentistry students and four years and a half for pharmacy students and will include unified obligatory theoretical and practical courses.

    [10] NATIONAL COUNCIL TO ADDRESS SOCIAL AND DEMOGRAPHIC

    Sofia, June 8 (BTA) - The cabinet today decided to set up a National Council on Social and Demographic Matters to operate with the Council of Ministers. Deputy Prime Minister and Minister of Regional Development and Construction, Doncho Konakchiev said the cabinet will treat on an equal footing the National Council on Social and Demographic Matters (NCSDM) and the National Council for Tripartite Cooperation (of government, employers and trade unions). NCSDM will be chaired by Deputy Prime Minister Svetoslav Shivarov; it will coordinate the actions of ministries and departments on demographic and social issues, and will interact with the National Council for Tripartite Cooperation without replacing it or duplicating its activity, Svetoslav Shivarov said. The new council comes to replace the Interdepartmental Council on Inter-ethnic Affairs set up in 1994. The setting up of the NCSDM offers public organizations an opportunity to concert their activity and cooperate with the bodies of the executive in addressing specific problems, said Shivarov. NCSDM will work in compliance with cabinet-approved regulations. It will be open for non-government organizations and societies, that are representative on a national level, which presupposes registration at court and statutes setting forth goals of national significance.

    [11] GREEK NEW DEMOCRACY CHAIRMAN VISITS BULGARIA

    Sofia, June 8 (BTA) - No matter which party rules over Greece, the New Democracy or PASOK, this country will not change its positions in relation to Bulgaria, Chairman of the Greek New Democracy party Miltiades Evert said at a meeting with President Zhelev today. Mr Evert, who arrived here this morning on a nine- hours visit, said that Greece will continue to support Bulgaria in its efforts to join the European structures, including those that could provide guarantees for this country and for the Balkans, President's Spokesman Valentin Stoyanov told reporters. Mr Evert said he cannot understand Russia's concern about the possibility for states like Bulgaria, Macedonia and Albania to join NATO. In connection with possible strategic developments, Russia should be concerned rather about the possibility for former Socialist states of Central Europe to join NATO, Mr Evert said. The Bulgarian President and Mr Evert discussed also the problems of the infrastructure in the Balkans. Mr Zhelev familiarized the guest with his view that improved roads and telecommunications will facilitate the contacts between the Balkan nations, as well as between the Balkans and Europe and will in this way guarantee the stability in the region and the avoidance of risks of new conflicts. The Chairman of the Greek New Democracy party was received by Prime Minister Zhan Videnov. The Greek politician emphasized that his country is highly interested in settling all problems with Bulgaria. According to Mr Evert, the promotion of traditional cooperation between Bulgaria and Greece will be based on respect for each others' interests. He said that Bulgaria is Greece's most important neighbour. Prime Minister Zhan Videnov emphasized that there are no political problems between the two states and that they should join efforts to settle issues concerning security in the region and economic cooperation. The two officials discussed the priority fields of the bilateral relations and identified among them infrrastructure, telecommunications, commercial exchange and investments. The two sides shared a common view that Bulgaria and Greece should continue to be a factor for security and peace in the Balkans. Mr Evert was also received by National Assembly Chairman Blagovest Sendov and by Foreign Minister Georgi Pirinski.

    [12] BULGARIA, TATARSTAN TO COOPERATE IN BUSINESS

    Sofia, June 8 (BTA) - Bulgaria and Tatarstan today signed an agreement on cooperation in economy, trade, science and technology. The document was signed by Tatar Prime Minister Farid Muhametshin, who is on an official visit to this country, and Bulgarian Deputy Prime Minister and Minister of Trade and Foreign Economic Cooperation Kiril Tsochev. The sides also signed a protocol of intent on the implementation of the above agreement. Signing the agreement, the two countries' governments undertake to provide favourable economic and financial conditions for setting up joint ventures and establishing direct contacts between Bulgarian and Tatar companies and organizations. Settlements will be effected in US dollars under an effective accord on trade and settlements between Bulgaria and the Russian Federation, that includes Tatarstan. The two countries will set up a joint venture for production of cigarettes, Tsochev said. There are also plans for cooperation in the chemical industry, power production, production of synthetic rubber, transport, trade in nitrogen fertilizers, medicines and wine. Tatarstan is a traditional buyer of Bulgarian-made cigarettes and wine, stressed Tsochev. The agreement provides a legal groundwork for expanding the bilateral business cooperation, the Tatar Prime Minister told a news conference. He stressed that there are opportunities for a steep rise of the commercial exchange. The bilateral trade in 1994 amounted to US$ 20 million, 5% of Tatarstan's foreign trade. Kiril Tsochev said the two countries have no reciprocal liabilities. Today saw the signing of a cooperation accord between the Bulgarian Ministry of Trade and Foreign Economic Cooperation and the Tatar Ministry of Foreign Economic Cooperation. Today the Tatar Prime Minister was received by Bulgarian Prime Minister Zhan Videnov, said the government Press Office. They exchanged views on the measures the two countries' governments will take to specify the agreements, signed during the official visit of Russian Prime Minister, Victor Chernomyrdin in Sofia. Being a republic within the Russian Federation, competent to sign international agreements, Tatarstan considers its relations with Bulgaria as extremely promising, said Farid Muhametshin. The Prime Minister of Tatarstan also met with National Assembly Chairman, Blagovest Sendov. They discussed prospects to enlarge contacts between the two countries' parliaments.


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