News from Bulgaria / June 28, 95

EMBASSY OF THE REPUBLIC OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

BULLETIN OF NEWS FROM BULGARIA

JUNE 28, 1995


CONTENTS

  • [01] PRESIDENT ZHELEV: "BULGARIA MAY APPLY FOR EU"

  • [02] PRESIDENT ZHELEV BACK FROM CANNES

  • [03] DEPUTY PM KIRIL TSOCHEV RETURNS FROM IRAQ, JORDAN

  • [04] DEPUTY PM GECHEV IN MOSCOW

  • [05] ROUMEN GECHEV IN MOSCOW

  • [06] ARGUMENTS OVER LAND ACT CONTINUE

  • [07] INFLUENTIAL TRADE UNIONS PROMISE GOVERNMENT

  • [08] 109 CENTRAL BANK TAKES MEASURES TO STRIKE PYRAMIDS

  • [09] TUESDAY NEWS BRIEFS

  • [10] BUSINESS PRESS


  • [01] PRESIDENT ZHELEV: "BULGARIA MAY APPLY FOR EU"

    Cannes, June 27 - Bulgarian President Zhelyu Zhelev is in Cannes to attend a working meeting of EU leaders with the leaders of the associated countries, including Bulgaria. "In the nearest future - within several months - the Republic of Bulgaria will be able to file its official membership application at the EU, " Bulgarian President Zhelyu Zhelev said in his address to the participants.

    Zhelev said that along with the other associated countries Bulgaria took part in the drafting of the White Paper for approximating these countries' legislation to the Community Law, which was later endorsed by the EU. "Of course, the White Paper did not come to fill in an empty space. For five years now the Republic of Bulgaria has been striving to adapt its new and updated legislation to European standards, " Zhelev said. The President said that the democratic principle of division of power and the possibility for each separate power to guarantee the transition to democracy deserves special attention. This was evidenced by the role played by the judiciary in Bulgaria in guaranteeing the land reform. "The overall democratization of the country and its integration into EU, WEU and NATO are two parallel and inextricably bound processes, " Dr. Zhelev also said.

    President Zhelev stated that Bulgaria supports the international efforts for a speedier and peaceful settlement of the conflicts in former Yugoslavia. "This country is strictly observing the UN sanctions, regardless of their extremely adverse effect on its own development, " the President said. He said he hoped the EU would implement a successful policy in the region and expressed a wish for a greater EU involvement in a strategy aimed at strengthening security and stability in Southern Central Europe.

    Before the working meeting, President Zhelev attended luncheon given by French President Jacques Chirac for the countries-participants.

    [02] PRESIDENT ZHELEV BACK FROM CANNES

    Sofia, June 28 - The Cannes summit between the leaders of the European Union and the associated countries was a step towards the establishing of closer links, President Zhelyu Zhelev said on his return from Cannes late last night. Asked about the assistance Bulgaria could expect from the EU for its accession to the West European structures, Zhelev said that "Bulgaria's problems are not unique; the West also has its problems but in spite of that it might increase its assistance". The heads of state and government of the EU countries and the eleven associated countries yesterday approved the White Paper containing 11 recommendations to the countries seeking full membership in the EU.

    President Zhelev was accompanied by Foreign Minister Georgi Pirinski, who took part in yesterday's meeting of the foreign ministers of the EU countries and the associated countries. Speaking to the press after the meeting, Pirinski said that in his statement he called the visa regime applied to Bulgaria under the Schengen agreement a blatant injustice. Pirinski described as unwarranted the differentiation made by the EU between Bulgaria and Romania on the one hand, and the rest of the associated countries of Central and Eastern Europe on the other.

    [03] DEPUTY PM KIRIL TSOCHEV RETURNS FROM IRAQ, JORDAN

    Sofia, June 27 - Iraq's USD 1, 512 million debt to Bulgaria and the signing of protocols of intent between the two countries were the highlights of the visit to Baghdad by a Bulgarian government delegation which ended yesterday. Today's talks in Amman discussed economic and trade relations between Bulgaria and Jordan, Deputy Prime Minister and Minister of Trade and Foreign Economic Relations Kiril Tsochev said upon his return from Jordan tonight. The Bulgarian delegation, headed by Tsochev, included Industry Minister Kliment Vouchev and eleven more government representatives, as well as 35 representatives of state organizations.

    In Baghdad the Bulgarian delegation was received by the entire Iraqi cabinet. The purpose of the visit was the holding of the 22nd Session of the Joint Bulgarian-Iraqi Committee on Economic, Scientific and Technological Cooperation. The talks focused on Iraq's debt to Bulgaria and made a review of bilateral relations in the period between the two sessions of the Committee. The USD 1, 512 million debt does not include interests on it which will be specified further on after the lifting of the embargo against Iraq, Tsochev said. The 21st Session of the joint Bulgarian-Iraqi Committee was held in May 1994 in Sofia.

    The Iraqi side confirmed its readiness for settling its debt to Bulgaria after the lifting of the sanctions, Tsochev said. It was agreed for the Iraqi debt to be repaid by oil deliveries the timetable of which will be specified further on, he added. In response to a question by "Daily News", Tsochev said that the issue of the lifting of the embargo was not discussed. The Iraqi side did not raise this issue at any of the meetings, he stressed. Citing the Iraqi News Agency, the world news agencies reported that the Bulgarian deputy prime minister called on the UN to lift the sanctions and stressed the importance of a speedy settlement of this issue. The talks were calm and mutually acceptable and the Iraqi side did not exert any pressure on Bulgaria for raising the issue of the lifting of the embargo before the competent organizations. He denied having made statements for the local news agency. Bulgaria is strictly observing UN Resolutions 678 and 715, Tsochev stressed.

    The meeting with Iraqi President and Prime Minister Saddam Hussein discussed bilateral relations. "The meeting with Saddam Hussein, which continued for an hour and fifteen minutes, did not discuss political issues, " Tsochev said. The two sides dwelled on Iraq's wish for Bulgaria to become one of Iraq's main partners. Saddam Hussein said that Iraq has met all requirements of the UN Security Council and the UN Sanctions Committee related to Resolution 678 (Paragraph 22) and Resolution 715.

    The two countries' industry ministries signed a protocol on industry and technology, setting up two working groups. They will be working on projects and the transfer of know-how and technologies, paving the way for the signing of contracts after the embargo is lifted, Tsochev said. Speaking about the projects agreed during his visit, Tsochev mentioned two hydroelectric power stations with a capacity of 300 MW each and power lines with a capacity of 132 kV worth an estimated 100 million dollars, which will be built in Iraq by the state- owned Electroimpex and Energoimpex.

    Tsochev said the visit to Baghdad was somewhat belated and should have been made last year. "We have not let a chance slip by, but anyway, inactivity is against Bulgaria's interests, " he said. "From what we saw in Baghdad, we can draw the conclusion that the longer the sanctions are enforced, the better Iraq will organize its potential to manage on its own, " Tsochev said. Ministers Tsochev and Vouchev agreed that "Bulgaria must get its money back, but it must also offer cooperation to Iraq". The development of relations between the two countries also depends on external factors such as the treaty between Syria and Israel, the elections in the United States and the international situation in which the lifting of the sanctions would be considered, Tsochev said, answering a question.

    Earlier today in Amman the Bulgarian delegation met with the Jordanian Crown Prince Hasan, Prime Minister Sharif Zaid Bin Shaker, the Minister of Industry and Trade Basam as- Saket and the Minister of Energy and Water Resources Samih Darwaze, as well as with the Chairmen of the Jordanian Chambers of Commerce and Industry. Trade between Bulgaria and Jordan totals 30 million dollars in the proportion 27 million to 3 million with a trade surplus for Bulgaria, Tsochev said. This is insufficient according to the two sides, which will seek possibilities to expand trade and economic contacts between Bulgaria and Jordan. Tsochev stressed that the Jordanian officials expressed a markedly positive attitude towards Bulgaria. In late October 1995 an international conference will be held in Amman at which Bulgaria will have high-level representatives, Tsochev said.

    [04] DEPUTY PM GECHEV IN MOSCOW

    Sofia, June 27 - "The aim of my visit is to hold talks with Russian business officials and familiarize them with Bulgaria's economic situation and investment conditions, " Deputy Prime Minister and Minister of Economic Development Roumen Gechev told BTA before his departure for Moscow today. Mr. Gechev will discuss with representatives of private and state-owned Russian companies the prospects for establishing joint ventures in special production, food- processing, cosmetics and pharmaceutical industry. The visit will also address the issue of preserving the good markets which Bulgarian goods have traditionally enjoyed in Russia. "We shall also discuss the opportunities for joint entry into third markets, which is extremely important, particularly for special production output, " Gechev said. Mr. Gechev's meetings with Russian ministers of finance and of foreign economic relations have been confirmed and the Bulgarian Deputy Prime Minister is convinced that these will not be his only meetings with Russian ministry officials he will have.

    The Bulgarian business delegation includes CEOs of some 35 leading state-owned and private enterprises from the heavy engineering industry, chemical and pharmaceutical industries, power engineering and special production industry. "The program of the delegation includes meetings with members of the Russian Union of Industrialists and Entrepreneurs, as well as with the Union's Chairman Arkadii Volskii, " the Economic Development Ministry Spokesman said. "Bulgarian and Russian private and state-owned business representatives are expected to sign concrete agreements, " he said.

    "The parties will continue their talks on easing the two countries' trade relations through liberalization of customs regulations, " said Russian Ambassador here Alexander Avdeyev, who was at the airport to see Gechev off. Avdeyev did not rule out the possibility that the Bulgarian delegation may encounter certain difficulties due to the current situation of the Russian cabinet. Mr. Avdeyev believes, however, that the ministry officials with whom Gechev will meet, will remain in the cabinet.

    [05] ROUMEN GECHEV IN MOSCOW

    Moscow, June 27 - Roumen Gechev today met Russian Deputy Prime Minister and Minister of Economic Development Evgeni Yasin. Mr. Gechev brought to the fore the question of the high import duties Russia charges for Bulgarian-made goods. The Russian Minister of Economic Development for his part was particularly interested in Bulgaria's experience in curbing inflation and implementing a stringent financial discipline. The two cabinet ministers voiced their readiness to work for the promotion of bilateral cooperation on a new basis.

    An emphasis was laid on the preservation of Bulgaria's niche on the Russian market. Ways of promoting small and medium-sized business was also on the agenda, as Evgeni Yasin said there is favorable economic and lending environment for its development.

    The second meeting of Bulgarian and Russian business circles started at the Bulgarian Embassy here later today. Participating were over 150 representatives of Russian companies in the sphere of construction, industry, banking and trade, as well as officials of the Russian legislative and executive, the cabinet press office further said.

    [06] ARGUMENTS OVER LAND ACT CONTINUE

    Sofia, June 27 - A week after the Constitutional Court invalidated 19 of the Land Act amendments, arguments over the Act are still going on. The amendments had been moved and adopted by the Socialist-led parliamentary majority.

    After a meeting of the leadership of the Union of Democratic Forces (UDF), floor leader Yordan Sokolov voiced before journalists the Union's protest at yesterday's meeting of National Assembly Chairman Blagovest Sendov with the President of the Constitutional Court Asen Manov. The UDF sees it as an attempt at interfering with and exerting pressure on the work of the Constitutional Court, which is to draw up the reasoning behind its decision today. "This is a very dangerous signal and we protest against such conduct, " Sokolov said.

    After the Court announced its decision, Constitutional Court Justice Georgi Markov said the earlier provisions would remain in force in place of the invalidated texts.

    On his return from Athens on June 20, Prime Minister Zhan Videnov said that in spite of the Constitutional Court's ruling, the Socialists were satisfied because they had halted the enforcement of the former act which Videnov described as damaging to Bulgarian agriculture. Zhan Videnov added that the parliamentary group of the Democratic Left would shortly come up with new amendments.

    [07] INFLUENTIAL TRADE UNIONS PROMISE GOVERNMENT

    Sofia, June 27 - "The trade unions have remained the only operating institution of the civic society in Bulgaria, " Prof. Krustyo Petkov, leader of the Confederation of Independent Trade Unions in Bulgaria (CITUB) said at an all-national rally held here today under the slogan "No to Poverty - No to Restoration!". This is the joint rally in five years of the two most influential trade unions in Bulgaria - the CITUB and the Podkrepa Labor Confederation, Prof. Petkov said, stressing the political significance of the fact that people of different political opinions have come to protest against the policy of the Socialist Cabinet (the rally was also attended by other trade union and pensioners' organizations). The rally was 7, 000-8, 000-strong and some of the participants had arrived from the country by bus.

    The Bulgarian Government should give up its futile right-wing monetary transition to market economy which has been continuing for more than five years now, Petkov said. The incomes of Bulgarians dropped 3-fold in four years; 57% of the population is living in poverty and 25% in extreme destitution, he said. This rally is proof that the trade unions in Bulgaria are still alive; it is an early warning to the Government which may be in for a hot autumn if it does not change its incomes policy and anti-trade union attitudes, the CITUB leader said. His words were received with chants: "Unity!", "Resignation!" and "Down with the BSP!"

    "We are not optimistic and we do not believe the Government has a clear strategy in its social policy; so far its actions have only deepened the problems, " Podkrepa leader Konstantin Trenchev, Vice President of the International Confederation of Free Trade Unions (ICFTU), told journalists during the rally. "We reserve ourselves the right to act according to the circumstances in the autumn, " he said commenting on Petkovs words.

    The rally was in support of a proposal sent by the CITUB and Podkrepa a week ago on incomes policy and protection till the end of 1995. The two trade unions proposed that social gains be exempted from aggregate income tax and wages funds be legislatively deregulated. They insist that the National Council for Tripartite Cooperation (NCTC) coordinate new methods for determining the actual inflation rate, the poverty line and the subsistence minimum in this country and for bringing the minimum wage in direct interrelation to the latter.

    Another proposal is that the Government freeze as of July 1 the prices of energy sources, communications and postal services at their present level till the end of the year. According to the two trade unions, the Cabinet's program opens the road to a new, unjustified and inadmissible impoverishment of the population. The Bulgarian Teachers' Trade Union is also taking part in the rally raising specific demands. The teachers demand an improvement of the situation of children in Bulgaria.

    The National Statistical Institute announced a 11.4% inflation for the first quarter of 1995 while CITUB experts set the inflation rate during that period at 20.03%. Official statistics is drawing a favorable social picture and prospects while ordinary people are feeling the devaluation of their incomes daily, CITUB leader Prof. Krustyo Petkov told "Troud" today. A sociologist by profession, he criticized the methods by which the Government forms the consumer basket.

    The CITUB and Podkrepa are demanding a change in the incomes policy without specifying how and at the expense of what this is to take place, Social Affairs Minister Mincho Koralski commented in "24 Chassa" today, calling part of the demands absurd. Koralski criticized the attitude of the CITUB and Podkrepa to the pro-governmental, according to them, LFUOB. He sees hysterical aspects in the statements of the trade unions leaders for the mass media.

    Today the largest opposition force - the Union of Democratic Forces (UDF), supported the rally of the two trade unions. "We support all forms of protest against the rulers, " UDF deputy leader Alexander Bozhkov said. UDF leader Ivan Kostov stressed, however, that the demands of the trade unions are justified but somewhat overdue. In a cable to the rally, the Democratic Alternative for the Republic also expressed support for the demands of the trade unions.

    The ruling Bulgarian Socialist Party (BSP) does not agree with the demands of the trade unions, BSP leaders said at a briefing today. We cannot deregulate working wages when 80% of the production facilities are state-owned, said Nikola Koichev, chairman of the parliamentary Social Economic Policy Committee. According to him, it is impossible to exempt social gains from aggregate income tax. He agreed, however, that the method for determining the inflation rate may be changed. He also agreed that 80% of Bulgarians are living below the poverty line and that this category includes all pensioners and the majority of those employed in production.

    [08] 109 CENTRAL BANK TAKES MEASURES TO STRIKE PYRAMIDS

    Sofia, June 27 - The Board of Governors of the Bulgarian National Bank (BNB, the central bank) divested six financial houses of the right to carry out banking transactions as part of the measures undertaken by the BNB for regulating the financial market and against financial institutions operating as pyramid schemes, the BNB Board of Governors announced. Today it came out with a special statement on the so-called financial pyramids.

    An amendment to the Penal Code, which entered into force on June 5, criminalizes the carrying out of bank transactions as line of business without a license from the central bank. So far such actions, posing a high risk for the public, were not incriminated by the Banking and Landing Act, the statement says. As a result, the BNB was forced to combat a crime without having the necessary instruments.

    The lack of explicit legislative regulations still allows the existence of various pseudo-financial institutions imitating investment activity, including by issuing quasi securities, the statement says. Since under the Penal Code the activities of financial pyramids constitute fraud, the competent bodies - the court, the prosecution and the police, should take the respective preventive measures and lodge claims for their winding up in compliance with the Commercial Code, the BNB statement says.

    Only banks and financial houses licensed by the BNB can take and manage funds from persons and enterprises, the BNB recalls. That is why the BNB does not feel responsible for the recent financial scandal sparked by the collapse of six pyramids in Varna (on the Black Sea) last month, which sank the savings of some 70, 000 depositors. The ruined investors appealed for legislative and administrative measures and threatened with civil disobedience if the Government and Parliament do not take measures for compensating the depositors.

    [09] TUESDAY NEWS BRIEFS (Sofia, June 27)

    Union of Democratic Forces' leader Ivan Kostov and his deputy, Peter Stoyanov, are leaving for Germany on June 28 to meet with senior members of the Christian Democratic Union.

    UDF deputy leader Nadezhda Mihailova today voiced the Union's protest at the first steps taken by the new management of national television. Videos of a UDF seminar in Lovech were aired on the late night news instead of in prime time. The UDF calls for strict enforcement of the national television statutes. "We want only what we are entitled to, " said Mihailova, stressing that the UDF would insist on hearing the new media bosses' plans for the future. Parliament elected the new bosses of national television and radio and BTA last Friday.

    The Bulgarian Socialist Party is drafting Bills on the national media, it became known at the Socialists' briefing today. Spokesperson Klara Marinova said the BSP set great store by the professionalism of the bosses of the national electronic media and was against the use of partisan and administrative criteria in their election. According to Marinova, the Bills on the national media meet the European standards of freedom of speech.

    The parliamentary group of the Movement for Rights and Freedoms (MRF) today prepared a question to Interior Minister Lyubomir Nachev about police measures against incidents involving Muslims supporting Fikri Sali, the chief mufti dismissed by the government, it was announced after a meeting of the parliamentary group today.

    The MRF has worked out proposals about the Local Elections Bill. If the ballot papers are white, the Movement will propose that the symbols of parties and coalitions be printed on them to avoid mistakes.

    An Aeroflot aircraft today flew winter clothes, antibiotics and disposable syringes worth 2 million leva to the quake victims on Sakhalin Island, the Civil Defense said.

    Parliament Chairman Blagovest Sendov today met with Mrs. Helene Carrere d'Anchos, Deputy Chair of the European Parliament's committee on foreign policy, security and defense, who is visiting Sofia. "Bulgaria's integration into the European structures... can take real dimensions on certain conditions, " said Mrs. Carrere. She showed interest in Bulgaria's development during its transition to democracy. Today she met with Parliament Deputy Chair Nora Ananieva, the leaders of the committees on foreign policy and national security, Socialist floor leader Krassimir Premyanov and the leaders of the parliamentary group of the Popular Union. Tomorrow Mrs. Carrere will be meeting with UDF floor leader Yordan Sokolov and the leaders of the parliamentary groups of the MRF and the Bulgarian Business Bloc. Mrs. Carrere is a professor at the Paris Institute of Political Science and has been interested in the processes in Eastern Europe for years.

    Three military lawyers from Ankara visited today for the first time the Sliven Military Court under the 1995 military technical cooperation program between Bulgaria and Turkey, said the Sliven Military Court Chairman, Colonel Gerdjikov.

    Nikolai Koev was appointed today as head of Parliament's Public Relations Office. Koev is a long-serving journalist of the Bulgarian News Agency and a former correspondent in Moscow, Belgrade and Skopje. He replaced Milen Vulkov who was elected director general of BTA.

    An international consortium on the safety of units three and four of the Kozlodoui nuclear power plant will be working at the plant from today until the end of the week. Representatives of the Committee on Peaceful Uses of Atomic Energy and of the plant will be taking part in its work.

    A round-table discussion of "Democracy and Effectiveness: In Search of the Bulgarian Model" opened in Sofia today. It is organized by the Association of Educational Psychologists as part of the sixth national conference of the Association.

    Bourgas Beer and Interbrew of Belgium signed a partnership contract today. Interbrew bought a 67 per cent stake in the Bourgas brewery two months ago, pledging to invest 19.7 million dollars within five years.

    [10] BUSINESS PRESS

    Sofia, June 27 - Great Britain intends to resume financing and providing guarantees for its exports and investment to Bulgaria, which were suspended after Bulgaria declared moratorium on its foreign debt payments in 1990, Chairperson of the Bulgarian Foreign Investment Agency Daniela Bobeva said yesterday. The report was made after a visit of a Bulgarian delegation to London on June 21 - 24, "Standart News" says.

    Bulgaria will set up a trade center in Kuwait, says "Continent". According to the daily, yesterday the President of the Union of Bulgarian Industrialists Krustyu Stanilov and a representative of the Kuwaiti big private business signed a protocol and accords for joint activities. Through these accords, Bulgaria will seek to regain its markets not only in Kuwait, but also in the Persian Gulf states.

    The dailies report about yesterday's decision of the Governing Board of the National Bank of Bulgaria (BNB) to deprive from banking licenses six finance houses. The finance houses which held licenses to operate as non-banking finance institutions have performed banking activities without the BNB's confirmation in writing.

    Bulgarias exports to Bavaria amounted last year to 150 million Deutschemarks while its imports were 147 million Deutcshemarks, "Standart News" quotes as saying the executive director of the Bulgarian-Bavarian Trade Bank Mr. Bouchet.

    280 foreigners have gone hunting in Bulgaria since the beginning of the year, "Douma" says, quoting Stefan Baichev, head of Hunting and Fishery Department and Side Activities with the Forestry Committee. According to the daily, the international hunting tourism in Bulgaria has a history of 30 years and used to earn some 4-5 million US dollars for the country every year.

    The Novorossisik-Bourgas-Alexandroupolis oil pipeline and the significance of Bulgaria and the Black Sea town of Bourgas were on the agenda of the second national discussion in Bourgas at the end of last week, attended by representatives of the oil industry from Bulgaria and Russia, businessmen and chiefs of interested companies, "Continent" says. A headline in the daily says that the new oil-handling port in Bourgas will cost 82 million US dollars.

    The first consignment of 18 second-hand German trams has arrived in Sofia, "Continent" says, quoting Director General of the Sofia City Transport company Nikolai Kambourov. Under the contract a total of 46 trams will be delivered to Bulgaria. The trams were purchased through the "Bulgaria" insurance and reinsurance company, which was allowed to advertise on the cars in exchange.


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