News from Bulgaria / Dec 21, 95

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

Bulgarian Telegraph Agency Directory

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

BULLETIN OF NEWS FROM BULGARIA

CONTENTS

[01] BULGARIA - UN

New York, the UN, December 20 (BTA) - In a statement on cooperation between the UN and the organization for security and Cooperation in Europe (OSCE), the Bulgarian delegation to the 50th Session of the UN General Assembly hailed the deepening of interaction between the two organizations, the press office of the Bulgarian Foreign Ministry told BTA.

Bulgarian representative Hristo Halachev stressed the importance of UN-OSCE coordinated efforts in preventive diplomacy, in settling crises and in strengthening peace and security following conflicts, especially in the region of Southeastern Europe. Halachev set forth Bulgaria's stand in support of the role of the OSCE in the implementation of the Bosnia and Herzegovina peace agreement, in preventing a new arms race on the territory of the former Yugoslavia after the lifting of the arms embargo through encouraging negotiations for achieving an armaments balance between the directly involved countries and through a broader agreement on regional stability, the press release says.

Bulgarian representative Halachev also stressed Bulgaria's interest in active participation in the postwar reconstruction of the former Yugoslavia and in the development of regional economic cooperation in the Balkans. In this connection Halachev called on all states to work intensively in the spirit of the conclusions of the OSCE- sponsored seminar on Trans-European Infrastructure and Security and Cooperation in the Black Sea Region, the press release says.

[02] PRESIDENT ZHELEV ENDS OFFICIAL VISIT TO PORTUGAL

Lisbon, December 20 (BTA spec. corr. Gratsiela Ingelska) - The question when Bulgaria will become a full member of the European Union cannot be answered yet because this country must go a long way in harmonizing its legislation with European law and in restructuring its economy. This will hardly materialize before the year 2000, President Zhelev told a press conference in Lisbon today.

During a three-day official visit to Portugal which ends today, Zhelev and the attending party held talks with politicians and state officials.

The Russian Communists' election victory will hardly have a strong impact on Bulgaria, which has pursued a sovereign foreign policy for a long time, Zhelev said answering questions by the Portuguese and Spanish press. This victory, however, calls for Bulgaria's categorical orientation to both the European Union and NATO, Zhelev commented.

Zhelev raised the issue of Bulgaria's exclusion from the EU visa blacklist with President Mario Soares and Prime Minister Antonio Guteris. Bulgaria is ready to sign readmission agreements - one of the requirements for exclusion - with all countries that would like to do so, he said.

When it finally becomes a full EU member, Bulgaria will not be Portugal's rival; on the contrary, the two countries could complement each other, Zhelev said.

The issues of Bulgaria's participation in the post-war reconstruction of Yugoslavia and Bulgarian-Macedonian relations were discussed by President Zhelev in an extensive interview in the "Publico" daily of Lisbon. Zhelev stressed that Bulgaria's participation in the post-war reconstruction of the region would be a small compensation for its losses due to the Yugoembargo.

Evora, Portugal, December 20 (BTA spec. corr.) - Queen Ioanna, the widow of King Boris III, received President Zhelev and his wife at her home in Estoril. The twenty-minute conversation took place after Zhelev's official visit to Portugal at the invitation of his counterpart Mario Soares.

Zhelev declined to comment after the meeting, saying that the conversation had been private. He said it was natural to accept the invitation of the Queen Mother who made a private visit to Bulgaria two years ago.

The Queen Mother said she was very happy to have met the Bulgarian President.

After Estoril, Zhelev and the Bulgarian delegation visited Portugal's medieval capital of Evora. The Mayor and the Governor of Evora gave a luncheon in honour of the guests.

The delegation led by President Zhelev is expected to return tonight.

[03] GREEK FOREIGN MINISTER KAROLOS PAPOULIAS ARRIVES FRIDAY

Sofia, December 20 (BTA) - Greek Foreign Minister Karolos Papoulias will arrive here Friday, Bulgarian Foreign Ministry Spokesman Radko Vlaikov today told a scheduled Foreign Ministry briefing

During the visit, Bulgaria and Greece are expected to sign two bilateral accords- on the waters of the River Mesta, and on opening new checkpoints on the common border. First Deputy Foreign Minister Stefan Staikov today briefed the media on the contents of the agreements.

The agreement on the waters of the River Mesta is an outcome of many years of negotiation, Staikov said. It provides for Bulgaria to make 29% of the annual flow of the river available to Greece. The Bulgarian National Assembly decided in February 1990 to utilize 75% of the flow on Bulgarian territory. Staikov said the agreement due to be signed would not override the parliamentary decision, with experts estimating 10 to 15% of the water used in Bulgaria flows back into the river.

The annual flow and the specific amount of water to go to Greece will be calculated on the basis of a seven-year discharge average, Staikov said. He quoted the Minister of Territorial Development and Construction Doncho Konakchiev as saying the agreement will remain in force for 35 years. At the opening of the negotiations, Bulgaria favoured a term of 30 years and Greece 50 years.

The conclusion of the agreement will allow the two countries to make longer-term estimates and plans for the use of the River Mesta, the deputy minister said, adding that the step is also a result of Bulgaria's association with the European Union.

The other accord due to be signed provides for opening new checkpoints and roads between the two countries. It would set a 1998 deadline for the two sides to build or upgrade the sections on their territory of the E-85 road, between Haskovo and Kurdjali in Bulgaria and Komotene and Alexandroupolis in Greece. Over the same period, the two countries should also develop the necessary infrastructure. The border intersection and the location of the checkpoint should be specified by a joint commission within six months of the treaty's entry into force.

The end of 1998 is also the deadline for building and opening a checkpoint linking Gotse Delchev and Hadjidimovo in Bulgaria and Drama in Greece. The treaty also provides for building the necessary roads and infrastructure and for additionally specifying the site for the checkpoint.

Under the agreement, another checkpoint should be opened on the road linking Plovdiv, Smolyan, Roudozem and Zlatograd in Bulgaria and Xanthe in Greece, by the end of 1999.

The accord would require the joint commission to study the feasibility of a railway linking Dimitrovgrad, Momchilgrad and Podkova (Bulgaria) and Komotene and Alexandroupolis (Greece); it should report the results to the two Governments within a year of the accord's entry into force. If the commission finds the scheme feasible, a protocol agreement will be appended to the accord, Staikov said.

This accord is important for Bulgaria for many reasons. It would smooth the way to free movement in border area, helping implement a bilateral accord on Bulgarian seasonal workers in Greece and promoting economic relations between Greece and Bulgaria. It also has a key role in regional and transregional cooperation, with some of the checkpoints being elements in larger infrastructure projects, Staikov said. He added that the accord is significant in terms of Bulgaria's top priority - integration into Europe.

Staikov recalled last week saw the closing in Athens of another two bilateral agreements: on seasonal employment (legalizing Bulgarians seasonal workers), and on readmission of illegal Bulgarians.

These four accords constitute a breakthrough in bilateral relations, solving problems facing residents in border areas and opening up opportunities to bilateral cooperation as a whole and to Bulgaria's integration into European structures. They are a step forward in building confidence in the Balkans, and an example of constructiveness in the search of specific solutions, Staikov noted.

The Greek Foreign Minister will visit Bulgaria a month after Greek President Costis Stephanopoulos. A visit by Greek Prime Minister Papandreou scheduled for December has been cancelled.

[04] ROMANIAN INTERIOR MINISTER IN SOFIA

Sofia, December 20 (BTA) - Romanian Interior Minister Ioan Doru Taracila arrived on a two-day official visit here today, said the Bulgarian Interior Ministry. The Romanian guest is here at the invitation of his Bulgarian counterpart Lyubomir Nachev.

The two Interior Ministers will review the implementation of a bilateral cooperation agreement with a view to improving the interaction between the two establishments in the combat against crime and identifying opportunities for coordinating the activity along the common border. During the visit the sides are expected to sign a protocol, a follow-up to the cooperation agreement, that will specify the fields and measures for expanding cooperation between the two countries' Interior Ministries.

[05] SERB ENVIRONMENT MINISTER IN BULGARIA

Sofia, December 20 (BTA) - At the invitation of Environment Minister Georgi Georgiev, Serb Environment Minister Jordan Aleksic today arrived on a three-day official visit here.

The official talks between the two ministers begin tomorrow morning. They will discuss a long-term programme for cooperation between the two ministries, in connection with the protection and management of the waters of the River Danube and other border rivers. The two delegations will discuss the work of the national centre for the environment and sustainable development, and issues of biodiversity.

[06] PARLIAMENT INCREASES BUDGET DEFICIT FIGURE

Sofia, December 20 (BTA) - Budget deficit may be increased by no more than 9,200 million leva, reads an Act amending the 1995 National Budget Act passed at second reading in Parliament today. The budget deficit amount before the adopted amendments was 48,750 million leva or about 5.8 percent of the gross domestic product. "The deficit will be financed by an additional issue of state securities and will not cause a growth of inflation," Finance Minister Dimiter Kostov said.

The need to rehabilitate the Economic Bank and Mineral Bank necessitated additional interest payments on the internal borrowing to the amount of more than 9,000 million leva. This was cited as the main reason for the deficit increase. High interest level in the first six months of the year and the adopted scheme for budget deficit financing through state securities against the background of adverse monetary market conditions were the other reasons for the deficit growth, according to the Cabinet.

The passage of the amendments was preceded by heated debates in the parliamentary committees which were later transferred to the debating chamber. The opposition's proposal to fix the amount of the bonded loan in the National Budget Act was voted down. Under ministerial decrees state securities of the worth of more than 58,000 million leva were issued for the rehabilitation of the two banks, Ivan Kostov, Leader of the Union of Democratic Forces said. In his view in order to become legalized these funds should be included in the budget. The suggestion to provide 100 percent subsidies for the municipalities from the central-government budget was also rejected. So far they have received only 90 percent of the budget allocation. Finance Minister Kostov said this was due to the fact that 1995 inflation was lower than expected. "The budget appropriations were made at a projected inflation of 45 percent while the general level of prices will not exceed 33 percent by the end of December," he stated. According to him, to grant the full amount of subsidies would mean to additionally exceed the budget deficit and pump up inflation.

[07] BULGARIA'S TSBANK, JUGOBANKA NEGOTIATE CREDIT LINES

Sofia, December 20 (BTA) - TSBank of Sofia and Jugobanka of Belgrade negotiated credit lines to guarantee trade between companies of the two countries. TSBank Chairman Nikolai Zlatev and Milos Milosavlevic, Director General of Yugoslavia's largest foreign trade bank, today signed an agreement reestablishing correspondent relations between the two banks after a break because of the Yugoembargo and increasing the volume of settlement operations.

This is the second agreement signed by Jugobanka after the lifting of the sanctions, Milosavlevic said. The first was signed ten days ago in Macedonia. Negotiations for the third agreement are starting in Bucharest tomorrow.

The two banks will provide export guarantees for deals between Bulgarian and Yugoslav companies. Each project will be considered regardless of the amount of the agreed credit lines. The two bankers said the subject of the agreement were short-term (three- or four-month) commercial credits of several million dollars. "We hope to do a good job so as to reach and even top the pre-sanctions level of trade," Zlatev said.

Before the war Jugobanka was a correspondent of six Bulgarian banks. TSBank top managers were the only Bulgarians invited to the celebration of Jugobanka's 40th anniversary in October. The banks will support contacts between companies of the following sectors: chemicals, pharmaceuticals, agriculture, ready-to-wears, woodworking and paper.

TSBank and Jugobanka may also support companies participating in large infrastructure projects in the region. This will have to wait until Yugoslavia reaches an agreement with the IMF and the EBRD. Western Europe has shown clearly that it is interested in the development of infrastructure in the Balkans, Milosavlevic said. According to him, the international financial institutions will certainly co- finance the projects. "We will take advantage of our trading position here and will take part both in the financing and servicing of external credits for the projects," Zlatev said.

[08] BULGARIA, YUGOSLAVIA SIGN PROTOCOL ON TELECOMS

Sofia, December 20 (BTA) - The Chairman of the Bulgarian Posts and Telecommunications Committee Lyubomir Kolarov and the visiting Yugoslav Minister of Transport and Communications Zoran Vujovic today signed a letter of intent. After two days of talks, the two government members reached an agreement on setting up a Balkan telecommunications pool, the coordination of steps for integration into European telecommunications structures, and the use of high technology for building and expanding telecommunications links between Bulgaria and Yugoslavia, Kolarov told the media.

Vujovic today met with Bulgarian Deputy Prime Minister Doncho Konakchiev. The two observed that opportunities are opening up for expanding bilateral economic ties. The suspension of sanctions on Yugoslavia is of key importance for the development of telecommunications and transport, the Yugoslav minister told BTA. A fibre-optic link between Sofia and Nis should be established by mid-1996, he also said.

Deputy Prime Minister Konakchiev expressed support for projects for the post-war reconstruction of Yugoslavia, and for its readmission into the UN and other international organizations.

[09] BUSINESS PRESS

The third tender for licensing oil and gas probing and production will be launched at the end of 1996, "24 Chassa" says. The tender was to be announced already this summer, but experts believe it was delayed because the Government has yet to pass the legislation on subsoil resources.

The constituent meeting and concert of the "National" bank will be held on December 26, most dailies write. The bank was established by several world-famous Bulgarian football players and other athletes. The application for licensing will be filed with the National Bank when the bank collects one-fourth of its capital. Shares of nominal value of 100 leva are already on sale, former BNB Vice Governor Emil Hursev, who is on the new bank's constituent committee said yesterday. "National" will start operating on a capital of 500 million leva.

Two powerful private business conglomerates are ready to start cutting barges into scrap iron, "Douma" says, quoting Industry Minister Kliment Vouchev. According to the Minister, there are large amounts of scrap in the country which can solve the problems of the "Stomana" iron and steel works in Pernik, which is facing grave difficulties with scrap supplies. According to the Bulgarian Branch Chamber "Feniks Resurs", the country's scrap reserves are almost depleted.

The financial daily "Pari" publishes the Programme for Voucher Privatization, which was adopted by the National Assembly yesterday.

[10] FOREIGN INVESTMENT IN 1996 PUT AT $1,200 MILLION

Sofia, December 20 (BTA) - Foreign investment in Bulgaria in 1996 may hit $1,200 million, according to the Foreign Investment Agency (FIA). Cash privatization proceeds are projected at $389.5 million, loans and concessions at $380 million each, greenfields investment at $60 million, and investments in joint ventures at $16 million. These figures would be feasible if the Government shows the will and carries out the deals in progress, FIA President Daniela Bobeva today told a briefing. Foreign investment in 1995 has totalled $850 million.

The FIA study was presented Wednesday afternoon before an interdepartmental council on foreign investment chaired by Deputy Prime Minister Roumen Gechev. The report, which was assessed in positive terms, should be extended with a study of joint ventures, the Government Press Office announced.

A National Statistical Institute study shows only 6% of foreign investment in this country is in machinery and equipment. Foreigners keep 69% of their money in cash, 36% of which in lev deposits. The top 60 companies have been reinvesting profits and expanding, statisticians say.

It is small businesses rather than large companies that find investment climate in Bulgaria favourable; large investors have been held back by unclear legislation and high taxes and customs tariffs, Bobeva said. Only 7% of foreign companies identify racketeering as a problem.

[11] RALLY AGAINST DISMISSAL OF 7 NATIONAL RADIO JOURNALISTS

Sofia, December 20 (BTA) - Journalists of different media today staged a rally in front of the national radio building in protest at the dismissal of seven journalists of the Horizont Programme several days ago. A sign-in was launched, calling for the resignation of National Radio Director General Vecheslav Tounev and accusing him of "unethical conduct and compromising the reputation of national radio". It was announced that a Free Speech Forum had been set up to protect the Bulgarians' right to be informed.

"If the Bulgarian Socialist Party (BSP) continues to exercise censorship over national radio, we shall have to inform the European Commission, the European Court of Human Rights and the Council of Europe's Committee of Ministers that the European Human Rights Convention is being violated," the opposition Popular Union, a coalition of Agrarians and Democrats, said in Parliament today. The Popular Union voiced its support for the seven radio journalists dismissed on Monday. They were among those who signed a protest declaration on November 21 claiming that there was censorship at the radio.

In a statement sent to BTA today Radio Svishtov joined the protest actions in support of the fired journalists, describing their dismissal as a gross infringement on the freedom of speech.

Members of the parliamentary group of the Bulgarian Business Bloc (BBB) today made a declaration in support of Director General Tounev. "There is no reason why the BBB parliamentary group should strip Mr Tounev of its confidence. Personnel policy at Bulgarian National Radio is fully within his powers and demands for his resignation are an unacceptable form of external pressure aimed to solve personnel problems by purely political means," the declaration said.