MAK-NEWS 30/08/95 (M.I.L.S.)

From: "M.I.L.S." <mils@ITL.MK>

Macedonian Information Liaison Service Directory

CONTENTS

MILS NEWS

Skopje, 30 August 1995

[01] MACEDONIAN GOVERNMENT HOLDS PRESS CONFERENCE

The Macedonian Government held a press conference yesterday to state the government's reaction regarding the letter of parties of Albanians in Macedonia to US President Bill Clinton. Spokesman Djuner Ismail said: 'It is a letter which is a result of a completely wrong political estimation about the situation in former Yugoslavia and comes at inappropriate time. The thesis of the letter, expressed in unsophisticated language, is not only in the function of internal political needs of these parties, but is also a repetition of thesis of a vicious Serbian policy since 1989, actually 1991, aimed at having one nation in one state, which has fortunately been totally defeated. This concept, with its integral approach can not be applied either in the Balkans or anywhere in Europe. But if the fact that such policies are defeated can teach somebody, it is obvious that it is not the case of the signers of this letter. It is inappropriate and tragically that one of the leader of political parties participating in the Government put his signature on the letter.

However, this is not the first letter nor the first expressed attitude that fails to fit in Macedonia's struggle for democracy and the treatment of minorities. Of course that this policy of the Macedonian government, which in the last few years succeeded to build up a democratic standard especially in the treatment of minorities and received a number of international verifications, will not retreat nor can be forced to by such a letter. " Regarding the Law on Local Self-Government and the possible discussion in Geneva in the presence of Gert Arens, Coordinator of the Working Group for Ethnic and National Groups and Minorities, spokesman Ismail explained that if the question emerges, Arens will be called to Macedonia to state his opinion, but whether his attitude will be accepted or not , depends on the Macedonan public opinion.

As for the Laws for Primary and Secondary Education, he said that they will provide thorough reforms in the educational system. He told reporters the Government had also discussed the information on the Gassificaton Project in Macedonia, expected to be completed by November, and start supplying six factories with gas.

Ismail also said changes have been made in Government Departments due to inefficient work. The Assistant Manager and Adviser at the Geodetic Department have been replaced, along with an assistant, the Chief Inspector, and the Manager of Veterinarian Department of the Ministry of Agriculture, Forestry and Water Industry.

[02] US TO ESTABLISH DIPLOMATIC RELATIONS WITH MACEDONIA AFTER DISPUTE WITH GREECE IS RESOLVED

According to the Athens News Agency, US presidential adviser George Stephanopoulos yesterday expressed optimism over the outcome of efforts to resolve the dispute between Greece and the Former Yugoslav Republic of Macedonia. "We believe we are making a great deal of progress on the underlying issues," Stephanopoulos told a press conference. Despite "great pleasure" from both within and outside the US, he added, Washington would not establish full diplomatic relations with FYROM until differences between Athens and Skopje had been resolved. Stephanopoulos said that the lifting of the Greek embargo against Skopje was in Athens' interest also and could have a "ripple effect" which might help reduce possible tension in the southern Balkans.

[03] PRIVATIZATION PROCESS INTENSIFIED

The privatization of enterprises with social capital is to be intensified. 44 new companies have decided to go private over the past week. About one quarter of the total number of employees in Macedonia already work in enterprises with completed privatization. Those are about 230 enterprises, the price of which is evaluated at approximately DM 596 million. Their equity capital is appraised to be about DM 363 million. About DM 30 million are to go to the Fund for Pension and Handicap Security.

Meantime, the Privatization Agency has so far approved of privatization decisions of 564 enterprises, employing 182.000 workers. The Agency presented opinion on 333 offered programs, and the government Privatization Commission evaluated decisions of another 294 enterprises. The most common model is the employee buy-in (380), followed by a managerial bye out and the sale of indivisible part of enterprises. This Fall will mark the beginning of a process of lending parts or total assests of enterprises.

[04] NO KRAINA REFUGEES IN SKOPJE, LOCAL AUTHORITIES CLAIM

Local authorities refuted the information published by Flaka e Vellazerimit on more than 50 refugees accommodated in the Skopje settlement Cair. Government spokesman Djuner Ismail stated the denial, explaining that there are several families visiting Macedonia and they do not even have a refugee status.

[05] MAAK DEMANDS CEASE OF NEGOTIATIONS WITH ALBANIANS

MAAK-Conservative Party emphasized yesterday that it is against any negotiations between the Macedonian Government and representatives of minorities in the country, under the mediating efforts of Gert Arens. Unless negations are abandoned, the party will demand that all out-of- parliament opposition parties be included in the negotiations.

[06] FRENCH TOWN PRESENTS CHILDREN EMBASSY WITH A BUS

The Children Embassy "Megjasi" of Skopje yesterday received a school bus adapted for science excursions, as an aid to Skopje citizens, sent in by the French town of Vo-An-Volen. The Mayor of this town Moris Sarier personally handed over the present.

[07] MAPS WITH MACEDONIAN FRESCOES AND ICONS

The publishing house Zumpress promoted yesterday maps of the edition "Macedonian Cultural Treasury", presenting Macedonians frescoes, icons and wood carvings. The maps contain about 20 photographs and accompanying texts.

MILS SPECIAL SUPPLEMENT:

[08] TAX CORRECTIONS AN ADDITIONAL BURDEN ON ECONOMY

(Vecer, 30 August 1995) Because of the week points of previous tax regulations, the Macedonian Government introduced corrections in the turnover tax base, to provide an additional funds to fill in the emptied budget. In the long run, the fact that taxes will from now on be collected as soon as goods are imported should put a stop to illegal economy in the country. The introduction of a Value Added Tax, on the other hand, is a reflection of efforts to establish a consistent taxation system using a model implemented in Western countries, in order to deal away with all possible ways of tax evasion.

But, what companies see at a first glance of the Government- suggested draft- law implies certain potential negative impact of the law.

"The obligation to pay taxes as soon as products leave our factory will increase our tax expenditures several times during the year. To be precise, we will be forced to set aside 300% more funds than before, unlike so far when we did not have to give money in advance, being tax exempted upon a statement for further sale. The new changes will also make calculating tax obligations more complex, because it is only in theory that it seems easy to tax your own production," says Dimitar Pejcinovski, marketing manager at pharmaceutics-producing Alkaloid of Skopje.

Mr. Pejcinovski says that Alkaloid is capable of gradually accepting all major changes in the economy. But such a drastic measure is bound to affect our company, he says.

The suggested changes will also have negative impact on the financial situation in the textile industry. The first reaction of Tetex of Tetovo, addressed to the Chamber of Commerce, was that of protest against the new, too short legal deadline of 45 days within which all producers will have to pay taxes regardless of whether they have collected for their products or not. This particular textile company sell its goods with a grace period of 90 days or on consignment. Tetex also asks that the law clearly states exactly when tax expenditures will be returned to the producer in cases of exports. Since the textile industry operates mostly on loan deals, the company suggests that no changes are made in this direction.

The oil corporation Makpetrol of Skopje, according to which paying of taxes immediately after importing the oil in the country will mean less turnover funds, which will lower the possibility of storing extra quantities of oil. Saso Lekic, financial manager at Makpetrol, says that this could negatively affect the market supplies. But, the problem is in the tax itself, which is 235%, because the oil tax base is not the importing but the sale price. Another problem may also appear when already paid taxes will have to be returned, when oil is purchased by state departments at beneficiary prices.

The Craftsman Association of Skopje sublimes the previous stated points. They ask to be exempted from income tax, as their line of work will otherwise completely extinguish. The other suggested change to have taxes paid before collection for products, is also unacceptable to them.

Makedonija Tabak of Skopje has a different opinion on the issue. As Director Straso Nelkovski explained, the suggested changes correspond with regulations in developed countries, although it will mean a decrease in production. Due to the obligation to pay taxes within 45 days, contracts will only be made with reliable partners. So far, Makedonija Tabak limited collection deadlines to 35 or 45 days, but about 20 -30% of the buyers still used to fail to meet it. The introduction of control coupons on each cigarette pack, along with a reinforced customs control, Nelkovski says, will establish order in the sale of cigarettes. The initial financial difficulties will not be an insurmountable obstacle, he assures.

(end)

mils-news 30 August '95