News from Bulgaria, 96-10-04

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

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

4 October, 1996

CONTENTS

[01] GOVERNMENT HOLDS CLOSED-DOOR SITTING

[02] COUNCIL OF MINISTERS' DECISIONS

[03] GOVERNMENT ADOPTS PROGRAMME FOR DEVELOPMENT OF LARGEST BULGARIAN REFINERY

[04] LOUKANOV: REPERCUSSIONS

[05] KOSTOV DENIES OPPOSITION INSTIGATED LOUKANOV'S MURDER

[06] PROCEEDS FROM LARGE PRIVATIZATION DEALS WILL BE CRUCIAL

[07] BULGARIA, UKRAINE: COOPERATION IN POWER GENERATION

[08] DEPUTY P.M. KONAKCHIEV VISITS FR YUGOSLAVIA

[09] TEACHERS PROTEST

[10] OPPOSITION MPs, TRADE UNIONS COORDINATE POSITIONS

[11] JAPANESE PRINCESS SAYAKO ENDS VISIT TO BULGARIA

[12] NEW ONCOLOGICAL DOCTRINE FOR IMMUNOTHERAPY

[01] GOVERNMENT HOLDS CLOSED-DOOR SITTING

The government also decided to launch an integrated information system to facilitate counter-crime efforts. The system gives all competent bodies - police, investigators and lawcourts - prompt access to the information they need. Customs offices too will be linked up.

At the closed-door sitting Interior Minister Nikolai Dobrev reported on the conditions of banks and the banking system in general. A week ago the central bank's Governing Board decided to place nine banks under special supervision.

Agriculture Minister Krustyu Trendafilov reported on the national grain balance, the grain that has to date been purchased from producers and forthcoming imports of grain.

[02] COUNCIL OF MINISTERS' DECISIONS

The project, totalling USD 1,463,000, envisages the construction of 73 houses and the necessary infrastructure. The Council of Europe's Social Development Fund will extend a loan amounting to USD 574,000. The remaining funds will come from the state budget or the Radnevo municipality.

The Cabinet today permitted the state-owned Bulgargas company, which supplies and trades in natural gas, to leave seven Bulgarian joint- stock companies. The motive for the withdrawal is the absence of income to Bulgargas. For the same reason the company will withdraw from the Bulgarian-Russian Investment Bank where Bulgargas holds 1,250 shares, Bulgargas Executive Director Peter Subev told reporters today. After two years of holding of shares in the Bank, the company has received no dividends. Talks for Bulgargas participation in joint ventures with foreign investment have begun with likely foreign partners.

The Cabinet today approved the proposal of the central banks' Board of Governors in which the bankers suggest that the effective minimum prices of bad debt bonds issued under the Act to Settle Non-Performing Loans Contracted by December 31, 1990, should remain unchanged in the fourth quarter. The prices of leva-denominated bonds at face value of 700 leva and 1,000 leva, and of dollar-denominated bonds at face value of USD 90 and USD 100, remain unchanged.

[03] GOVERNMENT ADOPTS PROGRAMME FOR DEVELOPMENT OF LARGEST BULGARIAN REFINERY

The programme provides for complete transition to unleaded petrol production, said Neftochim Executive Director Stefan Nedelchev at a news conference. At present Bulgaria produces only one type of unleaded petrol - 95 Eurosuper, which makes up between 15 and 20% of all types of petrol produced at the refinery. The programme provides for unleaded petrol to account for up to 80% of the petrol output of the refinery by the year 2000 and for Neftochim to produce only unleaded petrol after the year 2005. Thus Bulgarian production will meet all European requirements. Now the lead content in Bulgarian petrol is 0.15 g. This is relatively low, bearing in mind that in some advanced European countries like Greece, Spain and Portugal, the lead content in petrol reaches 0.2- 0.3 g," the Neftochim Executive Director said.

Diesel fuel production will also be upgraded. Now the diesel produced at Neftochim has a 0.3% sulphur content. The programme provides for reaching the European norm of 0.05% by the year 2005.

The programme provides for investment into these two productions to reach USD 40-45 million. The technology for unleading petrol was bought from a US company with which a contract will be signed in the coming five months.

The programme maps out measures for setting up joint ventures in processing propylene and ethylene, attracting foreign capital. There are two installations for these products at Neftochim but they are working below capacity because of insufficient demand. Almost USD 300 million are needed for the full loading of the capacities, an investment Bulgaria cannot afford and is therefore seeking foreign partners, Nedelchev said. "I can definitely state that Neftochim is an enterprise enjoying prestige in the oil refining business and foreign investors are showing interest in these two production," the Neftochim Executive Director said. Several foreign companies have already shown interest in the realization of these projects and tender procedures have been initiated.

From the technological point of view, Neftochim is the best enterprise in its kind in the Balkans.

The programme approved by the Cabinet today provides for the investment of USD 130 million in Neftochim by the year 2005, outside investment into joint projects.

The Government licensed Neftochim to issue bonds. A bond issue timetable will be adopted in compliance with the Commercial Code. The bonds will be denominated in US dollars in view of attracting foreign banks and credit institutions. The parameters of the bonds will be determined by Neftochim - the size of the issue, the interest rate, maturity, etc. These parameters will be submitted for approval by the Government by next week. Neftochim will continue its negotiations with the World Bank for a credit for the investment projects included in the programme.

[04] LOUKANOV: REPERCUSSIONS

Loukanov's coffin will be laid in state tomorrow. Today his wife Liliya Gerassimova said she wished to have a family funeral. "For us his murder is a personal tragedy and not a political game. That has no place at his grave," Mrs Gerassimova said in a letter to the BTA.

The Constitutional Court today issued a declaration condemning the assassination. "Terrorism as inadmissible as a tool in political struggles, business relations and the resolution of personal and group problems," the declaration says. The Constitutional Court said that within its powers, it will firmly and resolutely support constitutional order in Bulgaria, the supremacy of law and the constitutional rights of Bulgarian citizens, and, together with other state institutions, it will safeguard peace and democratic progress in society.

The Alliance for Social Democracy (ASD) in the BSP whose member Loukanov was, and independent presidential candidate Alexander Tomov, leader of the extraparliamentary Civil Alliance for the Republic, described the murder as politically-motivated. "It is our duty to appeal for national unity, one of Loukanov's favourite ideas," said Chavdar Kyuranov, leader of the ASD. Tomov expressed his opinion that the murder was ordered by a powerful group that can afford a contract killer.

Loukanov's murder remains the top story in Bulgaria. Some of the largest dailies are running extraordinary issues. "Noshten Troud", an evening edition of the second largest morning daily "Troud", published pictures of the body in the morgue and autopsy details. In this connection the BSP press office protested "the exceeding of all human limits". "The debasement of a politician and his cruel murder cannot diminish his stature. We are horrified by this profanity. It places the authors and editors next to the physical killers," says the protest declaration.

"I am shocked by the murder of Mr Andrei Loukanov whom I knew well," said French Ambassador Marcel Tremeau who today visited Veliko Turnovo. "I fear this act will have a negative impact on Bulgaria's image abroad, something neither Bulgarians nor European countries want," the Ambassador said.

In an interview for National Radio National Investigative Service chief Boiko Rashkov said that no new facts casting light on yesterday's murder of Andrei Loukanov were established today. The investigation and the Interior Ministry are working round-the-clock but some of the hypotheses they are investigating should not be revealed to the mass media so as not to impede the investigation, Rashkov said. He added that he is surprised by some stories in the press reporting rumours instead of facts and thus misleading the public. National Investigative Service investigator told National Radio that the weapon of the murder has not been found yet, neither have the clothes of the murderer. The assassination was executed with exceptional professionalism, investigators and prosecutors claim.

[05] KOSTOV DENIES OPPOSITION INSTIGATED LOUKANOV'S MURDER

According to Ivan Kostov, led solely by the desire not to alarm people, the opposition insisted on not mentioning in the declaration that Andrei Loukanov was killed by a professional. "Professional hitmen do not kill guided by hatred fomenting for years," the UDF leader said. He called on the left-wing not to play with fire and not to look for instigators where there are none. "Democracy has nothing to do with murder," Kostov said. "The allegations that democracy brings forth hatred in the society are irresponsible," he said and recalled assassinations in the circles of the BSP's predecessor, the Communist Party, in the last 50 years.

[06] PROCEEDS FROM LARGE PRIVATIZATION DEALS WILL BE CRUCIAL

According to Gechev, the denationalization of companies with intangible assets will not change considerably the proportion between the state and private sector. This is why the Government decision for the urgent privatization of 15 large state-owned companies is a "step in the right direction".

Most companies in Bulgaria are profitable but given the current unstable economic situation and especially the drastic change of the interest rates the dividing of companies into profitable and loss-making is conditional, Gechev says. Their survival in the near or distant future depends on whether they will be able to close privatization transactions with strategic partners having acquired international reputation, the Deputy Prime Minister states.

Hundreds of millions of US dollars should be invested in most enterprises in the next three to five years for the upgrading of the equipment and facilities in order to preserve their rentability, Gechev says. This money can be provided only through privatization, he adds. The proceeds from the privatization will be enough to effect stabilization of the exchange rate, reduction of the interest rates and decrease of the public debt in all its forms, Gechev says in the interview.

[07] BULGARIA, UKRAINE: COOPERATION IN POWER GENERATION

[08] DEPUTY P.M. KONAKCHIEV VISITS FR YUGOSLAVIA

The two commission co-chairmen reviewed the progress of bilateral relations following the February visit to Belgrade of Bulgarian Prime Minister Zhan Videnov and the Sofia session of the mixed commission in March. The sides are seeking new ways to boost commercial exchange in which Yugoslavia reports a deficit. They considered opportunities for industrial cooperation, particularly in the chemical and electrotechnical industries. The two co-chairmen also exchanged views on some infrastructure projects expected to improve the links between the two countries.

Doncho Konakchiev said he was authorized by Prime Minister Zhan Videnov to state that the Bulgarian government will support Yugoslavias bid to restore its membership in European economic structures, adding that it is a major precondition for the further development of bilateral relations.

[09] TEACHERS PROTEST

In most schools protest actions were token. According to data of Podkrepa's Strike Committee, teachers of about 600 schools went on effective strikes for an hour, while one-day effective strikes were organized in 100 schools. In some population centres teachers declared they will go on an indefinite strike if they do not receive their wages for previous months.

In an interview on the national radio today, Education Minister Ilcho Dimitrov said that he justifies the teachers' protest and that he does not have the right and does not wish to ban them. Dimitrov appealed to teachers not to disrupt the teaching process during the difficult school year ahead. He described the actions of Podkrepa's Teachers' Trade Union as a political act which is directly connected with the presidential race. He said that the Education Ministry is doing its best to ensure the due payment of teachers' wages.

[10] OPPOSITION MPs, TRADE UNIONS COORDINATE POSITIONS

Participating in the meeting, that lasted for more than two hours, were the leaders of the Confederation of Independent Trade Unions in Bulgaria (CITUB), the National Trade Unions, the Association of Democratic Trade Unions and the Community of Free Trade Union Organizations in Bulgaria, and the deputy leader of the Podkrepa Labour Confederation.

The participants in the meeting were unanimous that public protests before and after the presidential elections are a normal phenomenon unless they violate the effective laws, reads a communique issued after the meeting. The participants also agreed that the incumbent government does not have a potential to lead the country out of the crisis. They believe it is unfeasible for the sitting Parliament to appoint a government capable of handling the crisis.

The UDF and trade unions will contact each other on a regular basis before and after the elections. The participants in the meeting vowed to concert the principles of a new governance of the country in the name of preserving statehood, life, health and living standards of Bulgarians, reads the communique circulated after the meeting.

[11] JAPANESE PRINCESS SAYAKO ENDS VISIT TO BULGARIA

My time was limited but visiting historical sites I got to know your tradition-rich culture and the memory of these visits will last in my heart, Princess Sayako said in a statement released by the Japanese Embassy in Sofia before her departure from the country.

I was deeply impressed that in spite of the difficulties they live through, Bulgarians are still smiling and cordial, the statement also says. The Japanese Princess further expresses her satisfaction with the cooperation of the Japanese volunteers working in this country, with the Bulgarian side.

Princess Sayako says she keeps in her heart memories of all country she has visited and she is happy that there is now another country she feels close to. The Princess has visited nine countries since 1974, Bulgaria being the last.

Princess Sayako hopes that her Bulgarian visit will help further understanding and friendly relations between the two countries.

In her statement the Japanese Princess thanks President Zhelyu Zhelev, Prime Minister Zhan Videnov and all Bulgarians for their hearty welcome. During her visit to Bulgaria the guest visited the universities of Sofia and Veliko Turnovo, Northern Bulgaria, the National Museum of History and other places of interest. She also opened the traditional Days of Japanese Culture in Bulgaria due to continue till December 6.

[12] NEW ONCOLOGICAL DOCTRINE FOR IMMUNOTHERAPY

This is one thesis in his report to an international breast cancer conference in Sofia from September 26 to 28. The report was entitled "Reasons for Reassessment of the Current Oncological Doctrine and the Approval of a New Concept of an Oncological Doctrine for the Immunotherapy of Tumors".

After the conference the Bulgarian press run sensational reports of a Bulgarian that found a cancer medicine.

It is not a question of a cancer medicine but of a proven possibility for regeneration of cells responsible for the immune system in patients with malignant tumors, his team concluded following in vitro lab tests and developing experimental models.

Dr Manev and his team used a biologically active filter to remove antigenes produced in the spontaneous disintegration of a malignant tumor as a result of chemical and ray therapy, the former told BTA.

Tests are now being developed for the clinical testing the created immunological complex. Eleven teams have been formed to run clinical tests for a year and patent the studies in the next six months, he said.

The new doctrine does not reject the achievements in oncology so far but suggests an individual approach and a rearrangement of approaches in cancer treatment.

A Centre for Immunotherapy and Ummunoprofylaxis was set up in 1995 to work out the new doctrine. The Centre is affiliated with the Ecoimmunodeficiency Control Humanitarian Health Foundation, set up in 1991 and chaired by Dr Manev. It employs 47 highly-qualified specialists, including professors and associate professors of immunology, genetics and oncopharmacology.

A national charity campaign will be officially launched on October 4 to support the clinical implementation of the concept, Dr Manev said. Bulgarian and international institutions will be asked for financial assistance.

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