Bulgarian Telegraph Agency (BTA), 97-01-15

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

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

15 January, 1997

CONTENTS

[01] PRESIDENT-ELECT STOYANOV TRIES TO MEDIATE IN SETTLING THE CRISIS

[02] LEFT PROPOSES EARLY ELECTIONS IN LATE 1997

[03] PRESIDENT ZHELEV ON CURRENT CRISIS

[04] POPULAR UNION READY TO SUPPORT STRIKE, BULGARIAN BUSINESS BLOC TO SUPPORT TASK FORCE CABINET

[05] STRIKERS SUPPORT OPPOSITION DEMANDS FOR EARLY ELECTIONS

[06] FURTHER PROTESTS IN SOFIA

[07] POLITICAL FORCES SPECIFY STANDS ON OVERCOMING POLITICAL CRISIS

[08] IMF READY TO CONTINUE NEGOTIATIONS WITH BULGARIA

[09] OUTGOING CABINET APPROVES 1997 PRIVATIZATION PROGRAMME

[10] TOBACCO IN EASTERN RHODOPE MOUNTAINS PURCHASED

[11] QUALITY MARK INTRODUCED FOR BULGARIAN GOODS

[12] MACEDONIAN PARTY SUPPORTS BULGARIAN OPPOSITION

[01] PRESIDENT-ELECT STOYANOV TRIES TO MEDIATE IN SETTLING THE CRISIS

Asked by reporters, Stoyanov said that his talks do not represent consultations with the major political forces on the formation of a new government, which under the Constitution is the job of the President. "Until January 22, Zhelyu Zhelev is the President and he holds the exclusive prerogative for that," Stoyanov said. "It is my duty, however, to call on to the major political forces to listen closely to the voice of the protesters, who are mainly university students and young people and then sit at the table and negotiate on Bulgaria's salvation," Peter Stoyanov said.

[02] LEFT PROPOSES EARLY ELECTIONS IN LATE 1997

It was decided to propose the holding of anticipated parliamentary elections in late 1997 and the launching of negotiations to specify their date, necessary amendments to the Electoral Act and all issues related to the preparations of such elections.

According to the participants in the meeting, the National Assembly should immediately elect a government of professionals having experience and international prestige.

The meeting decided to draw up a legislative program concerning urgent issues of the country's financial and economic stabilization. The Democratic Left leaders also vowed to ensure a civilized inauguration of President-elect Peter Stoyanov. They Left proposed joint measures to normalize the situation in the country, restore public order and prevent any acts of violence.

[03] PRESIDENT ZHELEV ON CURRENT CRISIS

On December 21, 1996 the government of Socialist Prime Minister Zhan Videnov handed the cabinet's resignation halfway through its term amidst a grave economic crisis. The resignation was accepted by Parliament seven days later. Of the last seven governments that ruled the country, the outgoing one served longest. Outgoing Interior Minister Nikolai Dobrev was proposed by the Socialists for the prime minister's office but returning from a visit to France to find violent protests outside the parliament building, President Zhelev decided not to ask the Socialists to form a new government.

"Bulgaria is on edge. The people in the streets are not just supporters of a party or a coalition but a nation that has been betrayed," says the President. He believes there are adherents of the ruling Bulgarian Socialist Party (BSP) among the protesters. The demands of the protesters are essentially economic and social and that is why the protesters are so many, says the Head of State. Dr. Zhelev further recalls in the interview that an year ago he warned what might happen if the BSP refused to change its policy.

The President is convinced that neither the incumbents nor the opposition have any control on the crowds which goes to explain the violent clashes outside Parliament. "Politicians are wrong to believe that the protests will subside. People want to see a change in the form of government," he says adding that the protests will be useful if they abide by the law and the Constitution and if public order is respected.

The new Bulgarian Constitution defines the form of government in the country but it proved inept for the transition, says Dr. Zhelev. "Bulgaria is the first post-communist state that has failed in the transition to a market economy and is about to fail in the transition to democracy," he said in this interview. At the same time he believes that the country is ready to make a much deeper change - of the form of government to a presidential republic. He also said a task-force government would be the best mechanism with a view to the introduction of a currency board. The President said he will ask the Socialists to form a second government only after the political forces agree to early general elections.

[04] POPULAR UNION READY TO SUPPORT STRIKE, BULGARIAN BUSINESS BLOC TO SUPPORT TASK FORCE CABINET

The Bulgarian Business Bloc (BBB) will support a task force cabinet, becuse without it Bulgaria cannot hold negotiations with the IMF, BBB leaders told a news conference on Tuesday. BBB Spokesman Hristo Ivanov said that the BSP is once again placing the partyís interests before the national interests, while the UDF is afraid from early general elections unless the President appoints a caretaker cabinet.

[05] STRIKERS SUPPORT OPPOSITION DEMANDS FOR EARLY ELECTIONS

Protest actions against the rule of the Democratic Left have been staged in many towns for several days now. The protests are organized by the UtdDF. Several smaller political parties: royalists, Social Democratic etc., the principal trade unions, students' and other organizations, initiative committees of intellectuals, have backed the demands.

A UtdDF-organized national political strike started at places on Monday with preliminary warning protests. A national strike will start on Wednesday; civil disobedience is also possible at places, the leader of the influential Podkrepa Labour Confederation Konstantin Trenchev told reporters Tuesday.

[06] FURTHER PROTESTS IN SOFIA

Hundreds of students of the Sofia higher schools flocked today for their next march, organised by the Federation of Independent Students' Unions in support of the UtdDF demands. At a meeting today the Bulgarian academic community backed the students' protests and the opposition's demands for early parliamentary elections. The rector of the Sofia University "Kliment of Ohrid" also told reporters he hopes the developments will not bring about an unlawful sit-in at the university. (There were two sit-ins at the University in 1990 in protest against Loukanov's government).

[07] POLITICAL FORCES SPECIFY STANDS ON OVERCOMING POLITICAL CRISIS

At its sitting today the PGDL also decided that the resumption of Parliament's normal work is a necessary condition for the stabilization of the situation in the country and called for the quick passing of the most important laws. The PGDL said it will take part in Parliament's sitting for the inauguration of President-elect Peter Stoyanov, who won the elections by a landslide as candidate of the opposition two months ago.

The Union of Democratic Forces (UDF, the largest opposition Force), demands that the BSP give up its mandate for forming a new cabinet. If the Socialists try to form a new cabinet, the opposition will call a national political strike. The top leadership of the UDF announced today that it still insists on the adoption of its Declaration on National Salvation by Parliament. Last week there were heated debates on the Declaration in Parliament and after it was not put to the vote, the opposition walked out, which escalated the protests against the rule of the Socialists. Among other things, the Declaration provides for Parliament to pass the acts introducing a currency board and the agreements with the international financial institutions. The provisions of the Declaration are bound to the holding of early parliamentary elections.

"We still have enough time during which this Parliament can fulfill its declared will, if it becomes common, to work for Bulgaria's salvation. We believe it is still possible to reach an agreement on Bulgaria's salvation but under a clear commitment that early parliamentary elections will be held after the taking of these measures," said UDF leader Ivan Kostov on Tuesday.

The UDF declared also on Tuesday that it solidarizes with the peaceful protests of the Bulgarians dissatisfied with the rule of the Socialists which have been going on for a week now. The UDF decided today that it will take part in the protests by boycotting Parliament. The opposition MPs will enter the parliamentary debating chamber only for the inauguration of President-elect Peter Stoyanov and to vote against the formation of a second Socialist cabinet. Kostov also said that the protests of the opposition will continue till the adoption of its declaration.

[08] IMF READY TO CONTINUE NEGOTIATIONS WITH BULGARIA

On Saturday the BTA circulated a correspondence from Washington about a meeting of the IMF and World Bank missions which discussed the situation in Bulgaria. Many papers misquoted BTA as saying that there was an "urgent meeting in connection with the events in Bulgaria". It is important to bear in mind that the meeting was not held exclusively to discuss the situation in Bulgaria and that the IMF Executive Board discussions did not result in any decisions of policy significance for this country, IMF's Resident Representative said.

The IMF's position towards Bulgaria is remains the same and it is ready to continue the negotiations, and since the situation is very urgent, we shall be as quick as we can, Mr Rozwadowski said. Reports that IMF views the ending of the street demonstrations as a condition for resuming the negotiations do not correspond to the truth, it became clear from Mr Rozwadowski's words. The only condition which the IMF sets for its mission to come to Bulgaria is the availability of a Government, he said.

[09] OUTGOING CABINET APPROVES 1997 PRIVATIZATION PROGRAMME

The programme includes a list of 138 enterprises which will not be denationalized. The list includes ore and mineral mines, the Black Sea ports of Varna and Bourgas, the Danubian ports of Rousse, Lom, and Vidin, the Varna, Bourgas and Plovdiv airports, the Navigation Maritime Bulgare, the Bulgarian River Shipping Corporation, Balkanton recording company, the National Electricity Company, Bulgarian Posts Ltd., as well as other companies of the national transport infrastructure, water supply and sewerage, special production, territorial cadastre, and free trade zones. Twenty-two companies of the military-industrial complex have been placed under a three-year privatization moratorium.

The state will retain a majority holding in 89 strategic enterprises which include the Bulgarian Telecommunications Company (BTC), a number of pig- breeding farms, mills, meat packers, car plants, construction companies.

Privatization deals of 113 firms are to be approved by the cabinet itself. The list includes the BTC, Balkancar Holding, Kremikovtsi metallurgical plant, the Stomana-Pernik steel producer, major companies of the pharmaceuticals sector, the Neftochim oil refinery, the Chimko- Vratsa chemical plant, as well as a number of trading companies.

Privatization Agency figures put total privatization proceeds in 1996 at 59, 900 million leva.

[10] TOBACCO IN EASTERN RHODOPE MOUNTAINS PURCHASED

The cabinet-set minimum purchase prices of tobacco from the 1996 harvest were 15.2% higher than those in 1995. Despite the markup, however, purchase prices of Bulgarian tobacco are considerably lower than those in neighbouring countries, Deputy Chairman of the parliamentary Agriculture Committee Hassan Ali said. He said that tobacco purchase prices in Greece are set at six to seven U.S. dollars, in Turkey - three to four U.S. dollars and as little as one U.S. dollar in Bulgaria.

Tobacco crops are grown on 2% of arable land in Bulgaria and generate 30% of its foreign currency revenues. The 1996 tobacco harvest amounts to about 45,000 t.

[11] QUALITY MARK INTRODUCED FOR BULGARIAN GOODS

The document was signed on Tuesday. The Industrial Association will draw up a procedure for assessing the quality of the product applying for a quality mark. Only the 13,000 members of the Industrial Association can have their products marked. The first producers to get the quality mark will be named in late March and publicized on the Internet. Twelve producers have already filed applications. They include manufacturers of detergents, foods and household appliances, among other. Further control on the quality of the products will be exercised by the Industrial Association and the Federation of Consumers. The mark will be revoked whenever the quality is found to have worsened.

The aim of this step is to reduce the sale of goods failing to meet the quality standards and goods that are dangerous for consumers. The measure will help the combat against fake goods now flooding the market.

The two organizations will also set up a public committee on the implementation of the WTO agreement on trade-related aspects of intellectual property rights to which Bulgaria acceded in October 1996.

[12] MACEDONIAN PARTY SUPPORTS BULGARIAN OPPOSITION

In a special statement IMRO-DPMNU expressed concern over the latest developments in neighbouring Bulgaria, as well as hope that a solution will be found through dialogue in the spirit of European democratic traditions. The Macedonian opposition organization believes the rising tide of democracy sweeping through the neighbouring countries cannot be stemmed. The party says the last vestiges of communism will finally exit from the political scene and the disastrous consequences of its rule will be eliminated.

IMRO-DPMNU is the first political force in Macedonia to take an official stance on the latest events in Bulgaria. The Macedonian authorities and media have been making guarded comments on the protests, although the acute political crisis is followed closely. Some sources explain this wariness with concern that the wave of protests in the Balkans may cross the Macedonian border.

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