MAK-NEWS 05/01/96 (M.I.C.)

From: "M.I.C." <mic@ITL.MK>

Macedonian Information Centre Directory

CONTENTS

SKOPJE, JANUARY 5, 1995 (MIC)

[01] GOVERNMENT RECONSTRUCTION POSSIBLE

"In a true parliamentary democracy, the permanent questioning of the functioning, success or responsibility of the executive power is a completely legitimate approach. Of course, we have some matters in our practice that have nothing in common with the parliamentary democracy, functioning "under the table," various speculations and intrigues, all with the aim of creating the nervous feeling of constant pressure, or to attract attention.

In any event, I was convinced this past period that the survival of the Government depends very little on the speculations, or someone's aspirations for changes in the relations of the political forces, and much more on its actual functioning, on what and how we do," Prime Minister Branko Crvenkovski stated, among the rest, in his interview for the weekly "Puls."

Prime Minister Crvenkovski assesses, nevertheless, that "it's more a question of a crisis of the coalition, than a government crisis." In regard to the possibilities of coalition break up, and even a division in the party he is leading, the Social Democratic Alliance of Macedonia (SDAM), Crvenkovski says: "If there are such people who want to test that, the best way will be for them to try. Let them withdraw from the government coalition and let them try to pull out half of the SDAM parliamentary group. I don't need such tests, but if there is someone with different calculations, if he is sure in himself and his estimates, let him play the game to the end."

In discussing the work of the Government, Prime Minister Crvenkovski announces the idea about a reconstruction as quite possible.

As regards the period following the assassination attempt on President Gligorov, Crvenkovski emphasizes: "The assassination attempt itself, beside taking President Gligorov's life, was aimed, among the rest, at creating political destabilization, strong political unrest and conflicts. Luckily, that did not happen.

It was below the level of elementary taste to see the legalization of the combinations surrounding possible successors, new presidential elections, new balance of political powers, and even new parliamentary elections, which would lead to a new composition of the legislative and executive power."

In the interview for today's edition of "Puls," Prime Minister Branko Crvenkovski discusses some other current events in the past political year, the challenges in the new one, the upcoming negotiations with the European Union, as well as his belief in the favorable perspectives of the Republic of Macedonia in this year.

[02] GLIGOROV RECEIVES ACESKA

The President of the Republic of Macedonia Kiro Gligorov received Ljubica Aceska, irregular and plenipotentiary ambassador of the Republic of Macedonia to the United States of America, yesterday, before leaving for the U.S..

In the talks, President Gligorov emphasized the lasting interest of the Republic of Macedonia in the constant advancement of the relations and the cooperation between our country and the U.S. on a political and economic plan, as well as all fields of mutual interest.

The Republic of Macedonia has a high regard of the position of the U.S. for support of the independent development and stability of the Republic of Macedonia, which also presents an important contribution to the peace and stability in the region.

[03] MACEDONIAN-GREEK TALKS TO RESUME

The Greek Foreign Ministry announced yesterday that the permanent Greek representative to the UN Hristos Zaharakis and Macedonian ambassador Ivan Toshevski are due to discuss the "controversial question regarding the name of the neighboring country" in New York, on January 11.

Makfaks reports that the spokesman of the Greek Foreign Ministry Kostas Bikas stated that the talks that will be led in the presence of the international representative Cyrus Vance will stay within the framework of the Interim Accord, signed between Athens and Skopje.

[04] SUGGESTED NON-RECOGNITION

The leadership of the Democratic Party of the Serbs in Macedonia and the Association of the Serbs and Montenegrins in Macedonia sent an open letter to Serbian President Slobodan Milosevich on December 26th, last year, asking him, i.e. FRY, "not to recognize FYROM until the constitutional position of the Serbs and Montenegrins is settled, i.e. until they are equalized with the rights of the other entities in FYROM."

[05] BANKS CONTINUING WITH SAME POLICY

At the last parliamentary session, directly before the New Year holidays, the MEPs gave a green light to the Government proposal to continue with the policy according to which foreign currencies "trapped" in banks will be issued only for standard use, like in the past two and a half years.

What's new in the changes and supplements to the Law on deposited foreign currency savings is that the companies that owe money will be able to repurchase their debts from the Agency for financial recovery with "trapped" foreign currencies, and in cases of death in the family, 1,000 DEM will be issued in cash.

These days, the banks will start writing in the interest in the foreign currency accounts, while the interest on the so-called "trapped" foreign currency deposits will share the same fate as the interest on the basic deposits.

[06] NEW LAW ON ROAD TRAFFIC

The new Law on road traffic, adopted at the last parliamentary session last year, comes into effect today.

According to this law, every road transporter must possess a licence, which requires him to have a certain number of vehicles, special parking space and a bank guarantee of 20,000 DEM.

Transporters have been given a year to conform to the new law.

[07] AVERAGE SALARY - 8,751 DENARS

According to the data of the Bureau of Statistics, the average wage in the country in October 1995 was 8,751 denars. In the economic sphere, it is somewhat lower (8,508 den.), while in the non-economic, it is 9,445 denars. The highest salaries in the economic sphere are in the financial-technical services (12,768 den.), and in the non-economy, the highest average is reached in the organs of the state administration, the political parties and the state-owned companies (9,818 den.).

Otherwise, 29.1% of the workers did not receive any salaries in October, 25.2% in the economy and 3.9% in the non- economy.

MACEDONIAN PRESS REVIEW:

[08] "VECER": REALITY FOR STABILITY

The principles of reality and expansionism are the basic elements on which the majority Macedonian businessmen base their expectations from the state's economic policy for this year, pointing out, i.e insisting that their proposals and requests be given more influence than in the past years. Even more so seeing they share a common view with the Government and other state organs that the necessary possibilities and conditions, and before all, the need to implement the started reforms of the economic system, exist.

The essence of the businessmen's expectations is expressed by the president of the Macedonian Chamber of Commerce Dushan Petreski, who feels that the measures of the economic policy should provide the means to realize the future economic activities, implying, the support of the programs that provide market verification and profitability.

"It is not possible for us to do business without an appropriate long-term strategy in the sector of foreign economic relations," Petreski points out, noting that the marginal treatment of that question in the past year has led to negative results, i.e. to an express deficit in the goods exchange on a global plan, and thereby, which is quite logical, the companies that are partially or entirely export-oriented, were hit the most.

On the other hand, it has already become a tradition for the economy to complain about the dealings of the disloyal foreign competition. Therefore, this time as well, it stands for the protection of its own production, not from a position of closing the domestic market, but in order to prevent the import of goods of bad quality and that do not comply with standards. In this context, although some doubt the sincerity of this stand, the businessmen are for the protection of the citizens as consumers, through institutional forms, from the export paranoia that produces bad quality, the lack of spare parts and other anomalies from a business aspect.

The director of the mine "Buchim" Vancho Chifligarec links the realistic foreign-trade strategy with the real exchange rate of the domestic currency in comparison with the foreign ones, however, that would not be like that for the exporters and other economic subjects that take part in the international economic relations, provided they are not less burdened with customs tariffs for spare parts. Furthermore, according to Chifligarec, the projected increase in imports requires the stimulation of the exporters, and the crediting of the investments in the normal interest policy.

The director of the chemical plant "Jugohrom," Jovan Srbinovski has some similar opinions. He feels that the situation in the Macedonian economy can improve, stressing that, at least in conditions of transition, support with long-term credits is a priority need. He insists of interest rates that are applied in the world, and not on the chronic disease to add percentages that have no economic justification.

The top man at OHIS Jordan Kuka views things from a different angle. He feels it is necessary for the state administration to reorganize itself in order to adapt to the objective circumstances and problems in the economy, i.e their rehabilitation. If they do not function properly and efficiently, Kuka reckons, they will continue to slow down the infiltration of the new economic system in all the pores of the economy, which has been already confirmed in practice as a deviance.

These partial views and expectations lead to the conclusion that the priority attention of the macroeconomic policy in the Republic should be dedicated to production and exports. In effect, that is contained, to a considerable extent, in the Government's projection, and there is no doubt that it is the basic prerequisite for overcoming the problems and establishing economic stability in the state. Consequently, although it may sound ironic, this kind of approach will tighten the valves that let the conflict fluids between some state institutions and business associations flow through, which unnecessarily preoccupies the public's attention and is of no benefit to anyone.

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