News from Bulgaria / Nov. 22, 95

From: bulgaria@access1.digex.net (Embassy of Bulgaria)

Bulgarian Telegraph Agency Directory

EMBASY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

BULLETIN OF NEWS FROM BULGARIA

CONTENTS

[01] GREEK PRESIDENT STEPHANOPOULOS TALKS

Sofia, November 21 (BTA) - Today, during the second day of his visit to Bulgaria, Greek President Costis Stephanopoulos held talks with Bulgarian Prime Minister Zhan VIdenov. After the meeting, which was attended by the two countries' foreign ministers, Stephanopoulos and Videnov met the press.

Videnov described Stephanopoulos' official visit here as new proof of the great potential of the Bulgarian-Greek relations with a view of the better future on the Balkans and of more vigorous participation in the European integration processes. We share the view that the two countries should spearhead the social, economic and political tendencies in the region, Videnov said. He expressed a hope that Greek Prime Minister Papandreou will recover soon and make his visit to Sofia scheduled for December.

Stephanopoulos described his talks with Videnov as cordial and recalled that he already met with the Bulgarian Prime Minister during Videnov's visit to Greece in June 1995. Today confirmed the good cooperation between the two countries and the need to continue and expand it, Stephanopoulos said. The talks confirmed that all political forces of the two countries will support the efforts in this respect, he said.

Both countries have European orientation, Greece as a member of the European Union (EU), and Bulgaria as a country which is headed towards an EU membership; we talked about the two countries' European orientation, Stephanopoulos said.

He went on to say that today's talks confirmed that by the year's end Bulgaria and Greece will sign important agreements which are practically drafted.

"From now on the only thing we have to do is to open new objects of cooperation which will strengthen the two countries' relations. I would like to stress that there are no obstacles, but just the opposite, all the conditions are right for promoting our relations. This statement, of which I was assured, was confirmed at today's talks," Stephanopoulos concluded.

In the morning the Greek President visited the southern city of Plovdiv, Bulgaria's second biggest city. Stephanopoulos visited the Old Town - an architectural reserve of the late 19th century. The Greek President held meetings with Regional Governor Petko Tsarev, the Mayor of Plovdiv Spas Gurnevski, Greek students who study in Bulgaria and with businessmen.

Yesterday, Stephanopoulos held talks with his Bulgarian counterpart Zhelev.

During the last day of his visit tomorrow, Stephanopoulos will address the Bulgarian Parliament and meet with National Assembly Chairman Blagovest Sendov, and Patriarch Maksim of Bulgaria.

[02] IMF MISSION TO VISIT BULGARIA IN DECEMBER

[03] BSP AND UDF ANALYSE RESULTS FROM LOCAL ELECTIONS

Sofia, November 21 (BTA) - "After the good showing of our colleagues and comrades in ideas and actions at the presidential elections in Poland, we are convinced of the prospects for dialogue and joint actions not only on a party level, but also on a state one," was one of the conclusions of the meeting of the Executive Bureau of the Supreme Council of the ruling Bulgarian Socialist Party, Mrs Klara Marinova, in charge of the public relations in the BSP's leadership told a news briefing today. "Good showing, undeniable progress of the left forces in Europe is the trend, marking the current political autumn," political scientist Miroslav Popov, member of BSP's top leadership said in connection with the victory of social democrat Aleksander Kwasniewski in the Polish presidential elections. "Bulgarian President Zhelyu Zhelev was a little hasty in announcing his intentions to run in the presidential elections in Bulgaria due in about a year," Mr Popov said. In his view, Zhelev probably relied on a possible election victory of Lech Walesa in Poland and consequent analogies that can be made with the situation in Bulgaria. "Mr Zhelev's statement about his intentions was inadvertent and premature; he should have waited to hear the results from the elections in Poland," representatives of the extra-parliamentary Nationwide Committee for Defence of National Interests and the Fatherland Party of Labour told a news briefing today. On Saturday President Zhelyu Zhelev said that he will run for a second presidential term. Analysing the results from the local elections today, the National Coordinating Council of the opposition Union of Democratic Forces (UDF) raised the issue of the upcoming presidential elections. According to UDF Deputy Chairman Alexander Bozhkov, no candidatures were discussed, because the UDF is a nationally responsible force and may only take decisions on a national forum, such as a national conference. According to Mr Bozhkov, such conference may be held already in February, 1995. "If Dr Zhelev wants support from the political forces, he should hold preliminary consultations with them and only then announce his decision to run in the elections," UDF leader Ivan Kostov said. In his view, President Zhelev had acted rather hastily. As regards the thesis, voiced by President Zhelev, that he will be supported by all democratic forces, Ivan Kostov said that no talks and political discussions have been held with the UDF on the matter. According to Ivan Kostov, the democrats in the country are in position to win, but they should not opt for the "Walesa" version in Bulgaria.

[04] AMBASSADORS OF NATO MEMBER-STATES MEET UDF LEADERS

Sofia, November 21 (BTA) - "The NATO member-countries are ready to give guarantees for Bulgaria's security," Ivan Kostov, Chairman of the Union of Democratic Forces (UDF) said today after his meeting with the ambassadors of the NATO member-countries. According to Kostov, NATO member-states agree that the alliance should expand eastwards. "It emerged from today's talks with the diplomatic representatives that Bulgaria may become something like a second or a third echelon in world politics due to its hesitant position," he stated. At the meeting UDF handed the ambassadors copies of a memorandum of the Union, dated November 14, 1995. In the document UDF insists that Parliament includes in its agenda the discussion of a draft decision for Bulgaria's accession to NATO. US Ambassador to Bulgaria William Montgomery described the meeting as useful and UDF position as interesting. The meeting was attended by the ambassadors of Germany, Italy, Portugal, USA and Turkey, the consuls of Belgium and Spain and a representative of the French embassy. British diplomats did not attend the meeting as the British Ambassador to Bulgaria and his deputy are away. Representatives of the Greek embassy were also not present because they were busy arranging the current visit of Greek President Costis Stephanopoulis to Sofia.

[05] BULGARIAN AND RUSSIAN EXPERTS DISCUSS THE SAFETY

The two countries' experts will discuss the drafting of a new program for testing the serviceability of the rectors' metal casings. The tests on the casings are likely to start in spring when Kozlodoui's Unit One will be switched off. Two months ago the G-7 ambassadors sent a demarche to the Bulgarian Government urging it to not to re-start Unit One, the plant's oldest reactor, for safety considerations. However, the Government set the reactor in operation saying that it is essential for the country's power supply. The reactors are re-started with a permit from the Committee for Peaceful Uses of Atomic Energy.

"The tests of the reactors' pressure vessels is important for the future decisions of experts," Viktor Sidorenko told BTA. The Russian specialists said they are ready to discuss the safety of the oldest reactors with their colleagues from Western Europe.

Today the leadership of the Atomic Energy Trade Union, which is affiliated to the National Trade Union, insisted on separate financing for the atomic energy and the establishment of a fresh nuclear fuel fund. According to the trade union members, the demarche of G-7 was prompted by purely commercial motives.

[06] THREE BULGARIANS FACE CHARGES ON DEATH OF SRI LANKANS

Sofia, November 21 (Ani Parmaksizian of BTA) - The National Investigative Service completed the investigation on the death of 18 Sri Lankians, found in a Bulgarian registered IFA-truck near the Hungarian town of Gyor in July. Three Bulgarians will be brought to trial. The 18 Sri Lankans died from suffocation, and the other 19, who were released by the smugglers, are alive. Plamen Trifonov, driver of the truck and President of the "Daks" company dealing in freight forwarding, was charged with having killed more than one person while driving a motor vehicle. Under the Penalty Code the crime entails between 5 and 15 years of imprisonment. On leaving Bulgaria the truck was found to be automatically sealed and perfect customs clearance. Trifonov said that he was stopped in the vicinities of the Romanian town of Timisoara by two persons who threatened him into taking the immigrants in the truck. Trifonov claims that he was in the driver's cabin and did not even see how many persons went into the truck. Trifonov confesses that the Sri Lankans knocked and cried all the way and he stopped several times to let them breathe. Near the town of Gyor he found that he was carrying dead people, got frightened and fled back to Bulgaria. Trifonov is the only defendant on the case, who was detained despite the appeals for his release. The other two, Georgi Yordanov and Emil Yonov, were released on bail. They will face charges for illegal border crossing. The two allegedly were not connected with Trifonov. Yordanov alone went to the venues of Sri Lankans and promised transfer from Bulgaria to Romania for 500 US dollars per person. The smugglers used boatman Yonov, who charged 1,000 leva (about 15 US dollars) per person. The investigation was launched promptly after the tragedy was reported. It has been carried so far by the National Investigative Service (the counterintelligence) and the Central Service for Organised Crime Control headed by General Georgi Lambov, Secretary General of the Interior Ministry. Soon after the event the Interior Ministry reported that it uncovered involvement of an international organisation for illegal smuggling of people "Route Far East", which had a transfer ring through the Balkans for Western Europe.

[07] NO BREAD SHORTAGE EXPECTED, AGRICULTURE

Sofia, November 21 (Ekaterina Kazasova of BTA) - The Ministry of Agriculture and Food Processing is going to demand extension of the ban on the exports of wheat and wheat products until the next harvest. The decision was taken at a collegium of the Agriculture Ministry and will be moved to the Council of Ministers. It was necessitated by the failure to fulfill the Government's quota for bread supply to the non- productive population by 1.1 million tonnes, Agriculture Minister Vassil Chichibaba explained. According to figures, released by the National Statistical Institute, in 1995 wheat production added up to 3.523 million tonnes. Experts believe that this quantity will adequately meet the needs until the next harvest. According to their estimates, in addition to 1.1 million tonnes allocated for the urban population, another 350,000 tonnes are needed for seeds, 500,000 t for flour production and 930,000 t for the animal growing. The remaining 500,000 t were earmarked for exports. The problem, however, arises from the fact that instead of filling the Government's quota, the companies chose to keep the grain for export, which is due to the sharp differences between grain prices on the home and on the international market. The average purchase price is 5-6,000 leva/t on the home market, while on the international markets it reached up to 200-250 US dollars (1 US dollar currently exchanges for some 66 leva) this summer. This made some of the 39 state-owned and 24 private companies who were assigned to fill the Government's quota, choose to export the grain. Instead of the 500,000 t, whose export was approved by the Government, the companies have so far sold abroad about 610,000 t, according to figures of the General Customs Administration. Some of the companies, which received state subsidies to purchase the grain, resold it to other companies. In this way the state subsidies for one and the same amount of grain went to two companies instead of one. At the same time, although about 1 million t have been purchased from the Government's quota on paper, the actual amount is as little as 915,000 t. After the inspections of the Agriculture Ministry, the companies will be sanctioned and subjected to prosecution, the Minister of Agriculture said. There is currently a shortage of 185,000 t for an adequate bread supply to the urban population. By extending the ban on grain exports, the Ministry of Agriculture expects that the grain, which a number of merchants wanted to export, will be brought to the market. The problem is familiar as it arises every year. According to some experts, the reason is to be sought in the fact that the Ministry relies on administrative measures, rather than on market principles. In their view the problem is to be settled through the development of a mechanism, one that would align for the companies the possibility to export with the amounts they have provided for the Government's quota. This mechanism may be included in the new principle of grain purchase, which is currently drafted by agriculture experts. None of the experts, however, would give details before the principle is approved by the Council of Ministers. "We shall allow no bread shortage in the country," Agriculture Minister Chichibaba pledged. In his view, special schedules for the usage of the grain from the Government's quota will be introduced so that to guarantee supply on the home market. According to Minister Chichibaba, there are also enough possibilities to regulate bread prices. One of them, in his view, is to use the compensation fund and pay the companies the differences between the purchase price of grain and its current price. Even now, however, flour prices significantly differ from the projections of the Agriculture Ministry experts. Interest payments on debts will additionally appreciate flour. It is probably for that reason that noone would undertake to predict how much the bread in Bulgaria will cost in the spring.

[08] BUSINESS PRESS

Sofia, November 21 (BTA) - "24 Chassa" writes that the discount house of the Multigroup economic and financial conglomerate distrained the output of the Vratsa-based Himko state-owned chemical plant as of mid-November. This step is connected with the cession of Himko's outstanding debt to Bulgargas, that Multigroup bought last year, the daily says. The incumbent government annulled the cession but the court of arbitration with the Bulgarian Chamber of Commerce and Industry ruled it is effective. Industry Minister Kliment Vouchev told "24 Chassa" negotiations on the problem with Multigroup are upcoming.

"24 Chassa" writes a sitting of the Board of Directors of the Stara Zagora-based DZU disc files producer, that started yesterday, is expected to replace CEO Ivan Zhizgov. According to "Troud" Zhizgov was relieved of his office yesterday. This daily also writes that Industry Minister Vouchev yesterday endorsed the investment of USD 190,00 for the development of Pont Peripheral, a DZU affiliate based in the US in which the Bulgarian state interest is 64%. This amount is expected to get the company going after a several months' break, "Troud" writes.

Japanese experts are visiting the Maritsa-Iztok thermo-power plant (this country's biggest thermo-power plant situated in Southern Bulgaria), the press says citing a press release of the National Electricity Company. The experts are studying the possibility for replacing the oldest power unit of Maritsa-Iztok and are expected to file a report to that end by June. The project was launched on financial aid made available by the Japan International Cooperation Agency.

DM 70,000 were extended under the Transform programme of the German government, for opening an office to manage the loan of the World Bank and the European Bank for Reconstruction and Development for rehabilitating the Bulgarian State Railways, "Continent" writes.

Bulgarleasing has invested in this country a total of USD 250 million, "Douma" says. 64% of the Bulgarleasing capital belongs to Bulgarian and foreign companies and 30.3% to Consolid Commerce. CEO Dimiter Tadurukov is quoted as saying at an event marking the 10th anniversary of the setting up of this partnership, that it will soon grow into a holding company.