News from Bulgaria / May 2, 96

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

Bulgarian Telegraph Agency Directory

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

2 May, 1996

CONTENTS

[01] AUSTRIA SUPPORTS BULGARIA'S EUROPEAN ORIENTATION

The Bulgarian side was extended a proposal to consider concrete projects for cooperation in the sphere of power generation on the basis of Austria's position which rejects nuclear power generation so that the sides conclude a bilateral agreement on the exchange of information on the situation of nuclear facilities. Experts will discuss possibilities for easing of the visa regulations and the problems related to the movement of people arising from the Schengen Agreement, Vranitzky said after the meeting.

Austrian companies show particular interest in the opportunities for participation in the rehabilitation of the Bulgarian State Railways; there are concrete opportunities for cooperation in telecommunications and transport infrastructure, Vranitzky said further. According to the Austrian Chancellor, this is why, despite Bulgaria's difficult financial situation, it will be possible to intensify economic relations. Austria will thus help Bulgaria, which is an associate member of the European Union (EU), in its future negotiations for full EU membership, Vranitzky said.

Videnov familiarized the Federal Chancellor with the political and economic situation in Bulgaria in the run-up to the presidential elections. The Bulgarian premier described the relations between Bulgaria and Austria as traditionally good ties that cover all spheres and emphasized Bulgaria's interest in the Austrian experience as a participant in the processes of European integration.

Vranitzky reportedly accepted Videnov's invitation to visit Bulgaria in the near future.

Bulgaria will do its best to intensify the Bulgarian-Austrian political contacts, Videnov said. He stressed that Bulgaria's participation in the processes of European integration and this country's accession to the European economic, political and security structures is a key and indisputable priority of its foreign policy. Mentioning Bulgaria's name in the context of other integration formations is not appropriate, to which effect this country has made an official statement, Videnov said. Bulgaria believes and hopes that the European integration processes will be carried out quickly and without the emergence of new dividing lines in Europe, Videnov said.

After his talks with Videnov today, Austrian Federal President Thomas Klestil expressed his support for Bulgaria's efforts for integration into the European structures.

Responding to a question by a BTA correspondent, Klestil said that not only he, but the Austrian government as well, believe that, being a new EU member, Austria should become a connecting link for its Central and East European neighbours, adding that under neighbours he means not only the countries that have a common border with Austria, but Bulgaria as well. Klestil went on to say that Austria supports all types of European cooperation, including that within the framework of the Central European Initiative where Bulgaria will be soon admitted as a full member. The Federal President said that Austria has been informed about Bulgaria's application to join the EU. Austria is famous for its active support for EU's expansion, Klestil said.

The Federal President said that Austria can give its support for Bulgaria through setting up of joint ventures - an area in which the Austrian side has good expertise. Austrian firms set up 12,000 joint ventures in neighbouring countries, Klestil said, adding that the process should expand beyond Austria's immediate neighbours. This could help Bulgaria on the difficult road to transition to a market economy as well as in meeting the criteria for EU integration, the Federal President said.

According to Videnov, the talks with Klestil paid special attention to the issue of the Central and East European countries' membership in the EU. "Austria is Bulgaria's third biggest partner and among the biggest investors in this country; however, there is a great amount of untapped opportunities in terms of economic, political and cultural cooperation. Bulgaria and Austria can implement the all-European priorities and their bilateral cooperation in an efficient way," Videnov said.

Later today after his talks with the Federal Chancellor, Videnov told journalists that the financial stabilization of Bulgaria this year is the major task of the Bulgarian government.

"It was clear from the very beginning that last year, this and next year would be the most difficult for the payments on Bulgaria's foreign debt. And yet Bulgaria will be able to make the foreign debt payments due this year," said Videnov. He also said that closing down loss-making state-owned enterprises and reaching an agreement with the International Monetary Fund and the World Bank this summer are vital for avoiding a financial instability. "It is the government's major task this year and the efforts we take should bring success," said the Bulgarian Prime Minister.

Today Videnov also visited the Austrian Parliament and met Heinz Fischer who chairs the National Council, the lower house of Parliament. The Austrian side expressed its firm believe that the European Union should expand mostly to include Central and East European countries, Bulgaria being one of them.

The hosts were interested in Bulgaria's foreign policy priorities and the measures the government has taken for the financial and economic stabilization of the country. Fischer agreed with the view expressed by the Bulgarian Prime Minister, that Bulgaria is pursuing an independent foreign policy and will not be influenced by the trends drawing new dividing lines in Europe.

The irreversible expansion of the EU is a necessary and unquestionable process, said Videnov. He believes it is likely that in 1998 Bulgaria, together with the other EU membership applicants, start membership negotiations. "We know, however, that the course and finish of the negotiations will differ," added Videnov.

Later in the day Fischer gave an official dinner for the Bulgarian Prime Minister and the delegation accompanying him.

Zhan Videnov's working visit ends this evening after a report he will deliver at the Austrian Industrial Association on "Bulgarian Foreign Policy Initiatives in Southern Europe and Creating A Favourable Climate For Foreign Investors", to be followed by a dinner with representatives of Austrian business circles. The delegation will fly back to Bulgaria immediately after.

[02] HUNGARIAN DEFENCE MINISTER STOPS OVER IN BULGARIA

The Hungarian Defence Minister made a several hours' stopover on his way back from Cyprus to Hungary.

He met his Bulgarian counterpart Dimiter Pavlov and discussed with him issues pertaining to NATO's expansion. Hungary should become member of the North Atlantic Alliance by all means, the Hungarian Defence Minister told journalists. He briefed Dimiter Pavlov on the reforms under way in the Hungarian army. Hungary will reportedly import 100 tanks from Belarus and Russian-made combat equipment worth a total of 240 million US dollars.

The two countries' Defence Ministers agreed that working groups this year pay visits to the partner country exchange expertise on military cooperation.

[03] U.S. INSTITUTIONS DONATE USD 1,900 FOR CHAPEL

[04] POLITICAL CONSULTATIONS WITH LATIN AMERICA

[05] ROUMEN GECHEV MEETS WORLD BANK, IMF OFFICIALS

In mid-1996 at the latest Bulgaria is expected to sign an agreement with the World Bank on the Financial and Enterprise Sector Adjustment Loan (FESAL), to be followed by an agreement with the IMF on stabilizing the financial sector in Bulgaria. The World Bank is ready to extend an additional 90 million US dollars that have already been approved but not yet utilized, to financially assist the programme for the liquidation of loss-making enterprises and solve related social problems. This reportedly emerged during Gechev's talks with World Bank Director for Southeastern Europe Kenneth Leigh and IMF Director for Europe Massimo Ruso. The Bulgarian Deputy Prime Minister stressed that both the Bulgarian government and the World Bank are aware of the social implications of structural adjustment.

As regards the recent leap in the US/lev exchange rate, the representatives of the international financial institutions said that 90 leva is a realistic price of the US dollar and praised the policy of the central bank against intervening in the market using the foreign exchange reserve. Roumen Gechev also said that World Bank and IMF missions will visit Bulgaria by the end of this week.

Today Bulgarian Deputy Prime Minister Roumen Gechev left for New York for the final stage of the session of UN Commission on Sustainable Development to be attended by around 50 ministers of finance, economy and the environment.

[06] PARLIAMENT CHAIRMAN SENDOV'S MEETINGS

The guest showed interest and was informed of the difficulties facing Bulgaria during its transition to a market economy and in the process of democratization. Sendov also spoke about the first signs of stabilization and the progress of mass privatization. Bulgaria was highly praised for hosting the annual meeting of the European Bank for Reconstruction and Development. The sides expect the upcoming meeting in Sofia of the foreign ministers of the Balkan countries, which will be held on Bulgaria's initiative, to produce results, Parliament's press office said.

Parlaiment Chairman Blagovest Sendov met today Mr Kurt Wilmer, member of a team of US media experts visiting Bulgaria. The meeting was attended by Ms Rose Likins, charge d'affairs of the US Embassy in Sofia.

Mr Wilmer set forth some considerations on the Radio and Television Bill and presented a document systematizing impressions of the bill. The remarks are actually recommendations which are in line with universally recognized international principles in the field of the mass media and mass media legislation, said the experts who later met members of the parliamentary Radio, Television and BTA Committee.

[07] EDUCATION MINISTER ILCHO DIMITROV WRITES TO SILVIO BSERLUSCONI

The letter was provoked by Berlusconi's statement quoted by the BBC that a victory of the Left in Italy would make Italian schools "Bulgarian", i.e. anti-democratic.

"In your insinuation I see prejudice or traces of the abhorrent arrogance of the West towards the East - an integral part of European civilization," Dimitrov wrote. To him, this attitude is the worst obstacle nowadays to a genuine European Union and it strengthens the division achieved through the new Berlin Wall, referred to as the "Schengen wall" in the letter.

Academician Dimitrov stressed that the Bulgarian school is equal to the European paragons and does not suffer by comparison.

Ilcho Dimitrov said that though the Italian words "Mafia" and "fascism" are used in the Bulgarian language, Bulgarians never use them as synonyms to "Italy", "Italians" and "Italian". Dimitrov recalls that fascism originated in Italy and its history there was longest; it played a disastrous role in European history before and during the Second World War. Anti-fascism was born in Italy and after the war Italian politics contributed extensively to parliamentary democracy.

Given its important role in the history of mankind and the contemporary world, Italy is in a position to inspire hope, instead of causing disappointment, Dimitrov wrote to Berlusconi. The Bulgarian Education Minister believes that along the way to a genuine European Union countries must not only become equal in economics, politics and culture and tear down the new "Berlin Walls" which divide and oppose them to one another, but they must also get to know each other and develop a sense of mutual respect.

[08] 120th ANNIVERSARY OF APRIL 1876 UPRISING STATEMENT BY PRESIDENT ZHELYU ZHELEV