MAK-NEWS 11/04/95 (M.I.L.S.)

From: "Demetrios E. Paneras" <dep@bu.edu>


CONTENTS

  • [01] EBRD STARTS ANNUAL SUMMIT IN LONDON

  • [02] KINKEL ARRIVING TO SKOPJE TODAY

  • [03] GOVERNMENT PRESS-CONFERENCE

  • [04] WORKS ON BITOLA-SKOPJE POWER LINE BEGIN

  • [05] 1994, NEGATIVE ECONOMIC YEAR

  • [06] CULTURE

  • [07] MILS SPECIAL SUPPLEMENT: IN MACEDONIA, NEW FEARS OF A WIDER BALKAN WAR (The New York Times, 9 April 1995)


  • M I L S N E W S

    Skopje, 11 April 1995

    [01] EBRD STARTS ANNUAL SUMMIT IN LONDON

    In London, yesterday, the European Bank for Reconstruction and Development started its annual summit to explore possibilities for investment in former Eastern and Central Russian Republics. Today Macedonia is to present its proposal which should attract open interest, resulting from the currently implemented method of transition which is expected to yield extraordinary results. Macedonia enjoys respect from the Bank as both a credit user and also as a good business partner and participant in the accomplishment of the basic goals of this bank. A1 Television, however, reports that, because the Macedonian flag was not hoisted and the working documents did not refer to Macedonia under its constitutional name, the Macedonian delegation, led by Minister Jane Miljovski, left the official seats and moved to guest seats, after having sent a protest note to the Bank and the Bank Secretariat. A1 Television cites unofficial sources as saying the delegation might organize today's presentation in its own way instead of according to the official protocol. In his statement with Macedonian Television, Miljovski said that this unpleasant event is probably due to the recent change in the leaders of the Bank Secretariat and their lack of information. The flag used to be hoisted at the Bank and it was also included on the bank's badge.

    [02] KINKEL ARRIVING TO SKOPJE TODAY

    German Foreign Minister Klaus Kinkel will pay a one-day visit to Skopje today. He was invited by the Macedonian Government and the visit is expected to be of extreme importance for the development of bilateral cooperation, as well as for the global situation in the Southern Balkans. Kinkel will be received by top Macedonian leaders, as well as leaders of opposition parties and parties of Albanians in Macedonia. "The aim of the visit," Kinkel's spokesman said, "is to stress the interest of Germany and Europe in strengthening bilateral relations" . In regard to Greek media news of Kinkel bringing along a small package solution for the Greek-Macedonian dispute, Macedonian ambassador to Bonn Srgjan Kerim (who is in Skopje) said the information is absurd.

    [03] GOVERNMENT PRESS-CONFERENCE

    Macedonian Minister Ljube Trpevski held a press-conference yesterday to state that the $99 million World Bank credit for Macedonia was relatively easily obtained. He said the World Bank and IMF place Macedonia among the most successful countries in regard to current transition reforms. What the board of the World Bank or the IMF must decide upon in the future, Trpevski said, are the following: $24 million loan for road construction (on April 18); stand-by arrangements (May 5); the two World Bank credits (on 15 or 25 May); and Macedonia's debt to the Paris club, to be discussed in the next session on May 29. The World Bank vice-president is to visit Macedonia sometime this week. Meanwhile, at its regular session yesterday, the Government concluded that the monetary policy is being carried out as planned for the first quarter of the year. The same was said about the foreign exchange rate of the Denar and inflation measures. Furthermore, the cabinet strongly suggested lower bank interest rates, as companies are not able to make sufficient profits to cover the high interest rates. Lower interest rates would not disturb the profitable operation of banks, but will considerably alleviate the heavy burden on the economy. Government members turned down a demand by the public electricity company "Elektrostopanstvo" to allow a 50 per cent increase in the price of electricity, but approved a 15 per cent increase for summer prices.

    [04] WORKS ON BITOLA-SKOPJE POWER LINE BEGIN

    Construction works on the Bitola-Skopje long-distance power line are to begin sometime in the middle of this month. The public electricity company "Elektrostopanstvo" is the investor and "EMO" of Ohrid and "Galkon" of Turkey are the contractors. The European Bank for Reconstruction and Development approved a $22 million credit for the project. The power line will be 113.5 kilometers long and will carry power to Skopje from the power plant REK "Bitola".

    [05] 1994, NEGATIVE ECONOMIC YEAR

    Last year was not a successful year for the Macedonian economy in terms of business results. The total loss amounted to 33 billion Denars, with 9.5 billion transferred from the year before and an additional 23.5 billion loss produced in 1994 alone. This would make every second company in Macedonia a loss-producing one, increasing the number of such companies by as many as 4,000. Current losses are 4.5 times higher than the total income. Uncovered losses comprise 11.3 per cent of the economy's permanent capital. Private companies make up the highest number of loss- producing firms, but the highest losses are produced by companies with social or mixed capital. Industry, agriculture and trade make up as much as 93.5 per cent of the total loss.

    [06] CULTURE

    The French Cultural Center and the Macedonian-French Friendship Association have organized a lecture, by professor Dr. Ilinka Mitreva on 12 April at the French Cultural Center, to mark the occasion of the 50th anniversary of the death of the French writer and diplomat Jean Giraudoux.

    [07] MILS SPECIAL SUPPLEMENT: IN MACEDONIA, NEW FEARS OF A

    WIDER BALKAN WAR

    (The New York Times, 9 April 1995)

    With the United Nations scaling back its forces in Croatia and a resurgence of fighting in Bosnia, fears that the Balkan conflict will move south into Macedonia have been renewed. Internal ethnic conflicts and a worsening economy in Macedonia add to the anxieties about political stability in this new nation. With the likelihood that a war here would draw in neighboring countries, the United States has contingency plans to send as many as 1,500 more American soldiers to join the 550 already here as part of a United nations force which was sent two years ago. Moreover, the United States and other Western countries, worried about the economic discontent, are looking the other way as Macedonia conducts trade with Serbia in open violation of UN sanctions. Macedonia is considered one of the biggest violators of the sanctions. At the same time, out of deference to Greece, the Clinton Administration has not established full diplomatic relations with Macedonia. This would contribute significantly to political stability, diplomats and Macedonian leaders say. Greece has imposed a blockade on Macedonia, its northern neighbor, in a dispute that centers on who has the right to use the name. But the greatest threat to peace, diplomats and analysts say, is President Slobodan Milosevic of Serbia, the most powerful leader in what remains of the former Yugoslavia, who has also refused to recognize the independence of Macedonia and considers it to be southern Serbia. A war would almost certainly be set off, analysts say, if Mr. Milosevic increased the repression of ethnic Albanians in the Serbian province of Kosovo, which borders onto Macedonia. That would draw in the country of Albania, the large Albanian population here and the neighboring countries that have fought over Macedonia before. Earlier in this century, Turkey, Bulgaria, Serbia and Greece all battled for dominion over Macedonia, which was carved up after the Second Balkan War in 1910. Eventually the greatest part became a republic in Tito's Yugoslavia. It declared its independence in November 1991. Greece objects to the use of the name Macedonia and to Skopje's use of a bursting sun in the country's flag. Both of these, the Greeks contend, have been part of their heritage from the time of Alexander the Great who was a Macedonian. "If it were not so damaging to us, it would be funny," Hari Kostov, Macedonia's Deputy Foreign Minister, said about the Greek position and their blockade. A European diplomat who insisted on anonymity said of the Greek policy, "It is totally irrational." Under the blockade, Macedonia, a landlocked country of 2.2 million people and the size of Vermont, has lost access to the Greek port of Salonika on the Aegean. Now raw materials and exports must make a tortuous and far more expensive journey via Bulgaria or Albania. It costs $50 more a ton to bring oil in through Bulgaria, Mr. Kostov said. To avoid passing on these increased costs to consumers, the Government has reduced customs duties on oil, which is costing it $100 million in revenues a year, Mr. Kostov said. He also cited a refrigerator manufacturing company that imports parts from Italy and sells the finished refrigerators in Western Europe. It is now operating at a loss because of the increased transportation costs. "There has been a real failure of leadership, not only by the United States, but by the European Union" to get the embargo lifted, said a senior UN official in the region. The international sanctions against the former Yugoslavia compound Macedonia's economic problems. Before Yugoslavia was dismembered, Serbia was the major market for Macedonia's finished goods and agricultural products. The sanctions have cost Macedonia $3 billion over three years, Mr. Kostov said. The country's total budget this year is $1.2 billion. To mitigate the effects of the Greek embargo, The United Nations and Western governments are ignoring the wide-scale sanction violations by Macedonia. "We are looking the other way," a Western diplomat said. Several hundred trucks a week cross into Serbia, a UN military officer said as he surveyed the line of trucks at the border crossing at Djeneral Jankovic, 10 miles from Skopje. Still, the economy continues to decline and social unrest looms. Under conditions laid down by the International Monetary Fund, Macedonia must make 25 state enterprises profitable by the end of the year or close them. Only a few are likely to make it, Mr. Kostov said, which could leave 25,000 people unemployed. In recent weeks, workers have held demonstrations in two cities to protest the economic conditions, and more protests are planned. "It will be a fantastic opportunity for demagogues," said Vladimir Milcin, a theater director and the executive director for Macedonia of the Soros Foundation, which supports democratic institutions in former Communist countries. Demagogues here range from strident Macedonian nationalists to Albanian separatists to advocates of unity with Serbia. "It mainly depends on America," Mr. Milcin said when asked how political turmoil could be averted, expressing a view widely held here. European diplomats and Macedonian leaders say that what is needed is not so much for the US to send more troops as for it to grant full diplomatic relations. "It would be a clear message to other countries of the region that Macedonia is an internationally accepted state and that the US stands behind its territorial integrity," the Prime Minister, Branko Crvenkovski, said in an interview. But American officials say Washington will not send an ambassador until there has been a substantial resolution of the dispute between Greece and Macedonia. Mr. Crvenkovski said Macedonia is willing to compromise on the flag, but his Government is adamant on continuing to use the Republic of Macedonia as its name. Greece is just as insistent that the name be changed, diplomats from several countries said. If peace is to be preserved, the Macedonian Government must also treat its Albanian population more fairly. Long discriminated against here, Albanians constitute the country's largest ethnic minority - 23 per cent of the population according to a recent census, which is generally considered accurate though Albanians claim they are 40 per cent of the population. The Government has made some efforts on behalf of Albanians. State television has programs in the Albanian language. Primary and secondary schools teach in Albanian, and at the national university in Skopje, where the student body is less than 3 per cent Albanian, places are now reserved for Albanians. The Government drew a line, though, when ethnic Albanians tried to establish their own university earlier this year in the town of Tetovo. The Government argues that Macedonia cannot support a university for every minority group, and it is concerned that it would be a political training ground for separatists. The police descended on Tetovo to close the university. In an ensuing clash with protesters, one ethnic Albanian man was killed. Most of the discriminatory policies against the Albanians are a carry-over from the Communist era, but the Government has been slow to change them. "There is a lot of room to do more" for the Albanians, Prime Minister Crvenkovski said. On the broader question of whether Macedonia was the next flash point, he said "the risk is not to be underestimated." He compared watching Macedonia to a game of Russian roulette - "maybe it will go of, maybe it won't."

    (end)

    mils-news 11 April '95


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