News from Bulgaria, 96-10-01

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From: Embassy of Bulgaria <bulgaria@access1.digex.net>

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

1 October, 1996

CONTENTS

[01] FOREIGN MINISTER PIRINSKI HOLDS MEETINGS IN NEW YORK

[02] BULGARIAN TRADE AND AGRICULTURE MINISTERS MEET EU COUNTRIES' AMBASSADORS

[03] BUNDESTAG PRESIDENT SUESSMUTH MEETS OPPOSITION LEADERS

[04] DEFENCE MINISTER PAVLOV VISITS BRUSSELS

[05] GLOBAL ENVIRONMENT FACILITY LAUNCHES PROJECT IN BULGARIA, INTERNATIONAL FIR PLANTATIONS SYMPOSIUM ENDS

[06] PRIVATIZATION IN BULGARIA

[07] TOURIST INDUSTRY REVENUES OFFSET SLUMP IN OTHER BRANCHES

[08] PRINCESS SAYAKO OPENS SEASON OF JAPANESE CULTURE IN BULGARIA

[01] FOREIGN MINISTER PIRINSKI HOLDS MEETINGS IN NEW YORK

The two foreign ministers discussed the further steps in the development of cooperation in Southeastern Europe, including the preparations for the meeting of senior representatives of the foreign ministries of the Balkan states at the beginning of next year in Sofia.

The two agreed about the expediency of coordinating the approaches and finding appropriate forms of interaction with the other initiatives from the platform of the European Union for stability in Southeastern Europe and with the US initiative for cooperation in the region. The ministers familiarized each other with some aspects of the economic and the political situation in their countries.

In the UN headquarters Minister Pirinski had a meeting with Deputy Secretary General in charge of humanitarian issues and coordinator of humanitarian aid Mr Yasushi Yakashi. They considered issues related to Bulgaria's policy in the Balkans, this country's efforts to offset its losses sustained as a result of the sanctions imposed by the Security Council. They also discussed the prospects for Bulgaria's participation in the humanitarian operations and programmes, coordinated by the UN humanitarian issues department, in critical regions in the world and particularly in the three northern provinces of Iraq.

Mr Yakashi highly estimated the meeting of the Southeastern states held in Sofia on the initiative of the Bulgarian Government. He described the meeting as a civilized way of settling the problems in the region which is in compliance with the UN's efforts to find adequate forms to face the new challenges of the contemporary world. Mr Yakashi voiced full understanding of the serious economic problems of Bulgaria, resulting from the economic sanctions and promised his cooperation in seeking suitable solutions in the framework of the UN's secretariat.

Foreign Minister Georgi Pirinski met in New York with UN Deputy Secretary General Jean-Claude Miloraine. They discussed the operation of the Department for International Economic and Social Affairs in the UN's secretariat which collects and processes economic, social, demographic and environmental information and makes analyses and projections about the development on national and regional levels in the light of the reform in the economic and social sector in the UN.

The two officials also considered the different methods for calculating the growth of the Gross Domestic Product and the prospects for their unification with view to provide a more accurate presentation of the actual state of the economic development of the respective country and region. Readiness was expressed to deepen the cooperation between the Department for International Economic and Social Affairs and the competent Bulgarian authorities as well as for offering cooperation for improvement of the methods for calculating the losses which the Bulgarian economy sustained from the sanctions against former Yugoslavia.

[02] BULGARIAN TRADE AND AGRICULTURE MINISTERS MEET EU COUNTRIES' AMBASSADORS

The meeting was scheduled after Zhan Videnov, who is ahead of the government of the ruling coalition of the Democratic Left (Bulgarian Socialist Party, Alexander Stamboliiski Bulgarian Agrarian National Union and Ecoglasnost Political Club), asked European Commission President Jacques Santer for assistance in resolving Bulgaria's grain problem, Paparizov recalled.

Trendafilov and Paparizov familiarized the diplomats with the condition of and the projections about the grain balance. "We hope that the EU will extend us a soft-term loan for the purchase of grain with a repayment term of at least three years," Minister Trendafilov said. Talks on grain import have been held with Ukraine and negotiations are under way with Kazakhstan in case the European Commission does not agree to open credit lines, Trendafilov added.

Bulgaria has already imported 130,000 tons of wheat but the grain problem has not yet been settled, the Agriculture Minister stated. Some 450-500,000 tons of bread wheat and 700,000 of animal-feed grain, of which 200,000 tons wheat and 500,000 tons maze, should be imported.

Minister Trendafilov said that 450,000 ha of land are designated for sowing in the autumn campaign of which 30,000 have already been cropped. The problem is the lack of funds. Because of the setting of a new base interest rate (last Monday the National Bank of Bulgaria raised the annual base interest from 108 to 300 percent) the Agriculture Ministry will provide a loan of 5,000 million leva instead of the projected 16,000 million leva, Trendafilov stated.

In mid-September Krustyu Trendafilov said that in order to ensure the grain balance in the 1996-97 economic year 1,200,000 ha of land should be put under wheat and 300,000 ha under barley. According to projections of the Ministry of Agriculture and Food-Processing, 1,6 million tons of bread wheat will be needed to meet the population demands for bread and bakery products until the new harvest is brought in.

Recently Parliament ratified an agreement with the United States for the delivery of grain under the GSM 102 program. Today Minister Trendafilov said that Bulbank should confirm the opening of a credit line in compliance with the agreement with the United States for grain delivery. Otherwise the deal will be frustrated, he added. Bulbank maintains the stand that the agreement with the US side represented by Swiss Bank Corporation is not favourable for the Bulgarian side, Trendafilov stated. Bulbank insists that the agreement be re-considered by Parliament, Minister of Trade Atanas Paparizov said.

[03] BUNDESTAG PRESIDENT SUESSMUTH MEETS OPPOSITION LEADERS

This morning Ms Suessmuth had a working meeting with the opposition presidential candidate Peter Stoyanov and his running mate Todor Kavaldjiev, and the leaders of the united opposition. Participating were Union of Democratic Forces leader Ivan Kostov, Popular Union co- chairpersons Anastasia Moser and Stefan Savov, MPs and the mayors of Varna, Sofia and Doupnitsa.

Bulgaria is an old European country and now, after modernization, it must become part of modern Europe and its economy, Ms Suessmuth told journalists after meeting the opposition leaders. She believes it will take great efforts by everybody. Private entrepreneurship must be given a chance, said the Bundestag President. She also said it is vital to make this nation believe in itself. Now people feel helpless and the state must help its citizens, making its first step toward modern Europe, Ms Suessmuth said in conclusion.

Later in the day Rita Suessmuth was received by President Zhelyu Zhelev. She showed interest in topical for Bulgaria problems, the President's Spokesman Valentin Stoyanov said. Bulgaria's place in Europe, the conditions for full membership in the EU and Europe's opening towards Bulgaria were on the agenda of the talks.

President Zhelev praised Germany's key role in the EU. He added Germany is Bulgaria's largest trade partner, creditor and investor. Zhelev stressed the personal merits of Ms Suessmuth in the promotion of Bulgarian-German relations and thanked for her lasting interest towards Bulgaria. The Bundestag President noted Zhelev's role during his term of office in Bulgaria's permanent efforts to join the European structures. She added Zhelev can be a guarantor of these processes in the future as well.

[04] DEFENCE MINISTER PAVLOV VISITS BRUSSELS

This morning Pavlov met with Admiral Herteller, Chief of the Belgian General Staff, behind closed doors. Later today Pavlov was received by his counterpart Jean-Paul Poncelet. They discussed the two countries' future participation in peacekeeping missions and joint initiatives. To this end Bulgaria asked for financial assistance but has no high hopes of receiving it because, as Poncelet said, the budget of the 40,000-strong Belgian army was cut down by 1,000 million francs this year.

Pavlov laid a wreath at the Tomb of the Unknown Soldier. Pavlov and Poncelet are scheduled to give a joint news conference on Monday evening.

[05] GLOBAL ENVIRONMENT FACILITY LAUNCHES PROJECT IN BULGARIA, INTERNATIONAL FIR PLANTATIONS SYMPOSIUM ENDS

The project seeks to safeguard the systems for the environmental protection management at national, regional and local level. One of the key objectives of the project is to develop comprehensive plans for diversification and development of environment-friendly economic businesses in protected sites in the park.

The Rila National Park was set up in 1992. It covers an area of 107,924 ha, of which 67,000 ha are forests and 40,500 ha are highland pastures. More than 70 varieties of plants grow in the park; it provides shelter to about 20 per cent of the species of animals included in Bulgaria's Red Book. The Rila Park hosts model ecosystems of spruce, fir, white fir, scotch pine and dwarf pine.

Coniferous forests cover about 80 per cent of the area of the Pirin National Park (Southwestern Bulgaria) which is included in UNESCO's List of World Cultural and Natural Heritage. The most valuable trees in the Pirin Park are the black firs, the oldest of which is more than 1,500 years old. There are other such trees of more than 1,000 years of age.

Experts say that the best wild fir plantations in Europe and Bulgaria are to be found in two parks, located in this country's two highest mountains, and the neighbouring areas. An international symposium on problems of fir growing ended in Blagoevgrad (Southwestern Bulgaria) yesterday. This was the first such forum in Bulgaria in which experts of the USA, all Balkan countries and other European states discussed the protection of this plant.

The symposium took place at the regional Forestry Directorate in Blagoevgrad. Fir plantations cover fifteen per cent of the Directorate's territory, or about three per cent of the total fir plantations in Bulgaria. Participants in the symposium visited resorts and natural reserves in Southwestern Bulgaria to see fir plantations.

[06] PRIVATIZATION IN BULGARIA

The selection of companies for the cash privatization priority list is based on three principal criteria: size, investor interest and potential buyers capable of investing and ensuring revenues in three or four years, Privatization Agency Executive Director Vesselin Blagoev said.

The Privatization Agency is now giving priority to large enterprises, payments on which may start in the next few months. Part of the revenues will go directly to the Finance Ministry for meeting this country's needs, Blagoev said in an interview for "Pari".

The Privatization Agency holds tenders for licensed business appraisers for its privatization projects and the appraisal process itself can take quite some time, especially if the enterprise has several sites, different technological chains, large warehouse premises, numerous credits, pledges, mortgages, etc.

A minimum of 35,000 million leva of assets will be denationalized by the end of this year. Assets worth over 9,000 million leva were sold under liquidation deals alone. The deal for the Plama oil refinery (a leading enterprise on the liquidation list) alone resulted in the privatization of 8,000 million leva worth assets.

Sixteen enterprises of different sectors have been put up for urgent privatization. These include the Sodi-Devnya chemical works, Agropolychim-Devnya, Chimco-Vratsa, the shipyard in Rousse and the dockyard in Bourgas. Blagoev said he expected at least five offers for Sodi. Negotiations will be held with all bidders from one to two weeks in two rounds. If no agreement is reached on an acceptable price there may be a third round. Other large enterprises on the list are Intransmach Sofia, and Balkancar.

[07] TOURIST INDUSTRY REVENUES OFFSET SLUMP IN OTHER BRANCHES

The revenues from the state sector are expected to be around 20,000 million leva, according to Committee of Tourism experts. This is 59% up from 1995. Direct revenues from tourism totalled 15,000 million leva in the first nine months. The number of foreign tourists was 17% more than in 1995. The overnights were 20% more than last summer. Germany remains number one on Bulgaria's Black Sea resorts. It is followed by tourists of Central and Eastern Europe who were 70% more than last year, the Scandinavian countries and other regions.

Larger investment into upgrading existing tourist facilities contributed considerably to the favourable results. In 1996 tourist companies invested 2,600 million leva of their own funds which is 54% more than last year. The Golden Sands, Albena and Roussalka resorts attracted most of the foreign investment. Club tourism has been developing at these resorts for a second year now and tour operators are showing considerable interest. The German TUI, Neckerman and ITS firms are emerging as the largest investors.

"From survival tactics, the tourist industry proceeded to the formulation of programmes for the development of the branch," Velev said. Over the past year its market policy gave priority to recovering positions on traditional markets and winning positions on new tourist markets.

For the first time Bulgaria will make a comprehensive presentation of its tourist industry at the Travel Market in London this November. The PHARE programme extended ECU 1.5 million for marketing research and tourist advertisement in 1996. Some ECU 600,000 are for new tourist advertisements and a national advertising campaign. The sum is small compared to that spent by Bulgaria's competitors in the region but larger than in previous years.

[08] PRINCESS SAYAKO OPENS SEASON OF JAPANESE CULTURE IN BULGARIA

The Princess said that her interest in Bulgaria, which prompted the present visit, was aroused mainly by this country's lasting cultural values which are well known not only in Japan but in the world as a whole. "I know that Bulgaria is the kingdom of voices, one of its songs has been sent in space, its icons and the murals in the Boyana Church are unique, it has impressive achievements in sports," Princess Sayako said and wished closer relations between the two countries.

The guests were first addressed by Japan's Ambassador in Sofia Yoshihiro Jibiki and by Bulgarian Deputy Minister of Culture Georgi Konstantinov. The ancient tea ceremony was performed by students from a Sofia secondary school and 30 masters of tea who came from Japan specially for the occasion. Being the most important guest, Princess Sayako received the first cup of tea. The ceremony was attended by National Assembly Chairman Blagovest Sendov, his deputies Ivan Kourtev and Yunal Lyutfi, Deputy Prime Minister Roumen Gechev, the presidential tandem of the Democratic Left, Prof. Ivan Marazov and Deputy Foreign Minister Irina Bokova, MPs and other officials. Democratic

Today Her Highness visited the National Museum of History. Later she met with representatives of the Japanese community in Sofia in the residence of the Japanese ambassador. Early in the afternoon Princess Sayako had a meeting with the leaders of students of Japanese at the St Kliment Ohridski.

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