MILS NEWS 29/05/96

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From: "Macedonian Information Liaison Service" <mils@mils.spic.org.mk>

CONTENTS

[01] GLIGOROV VISITING FINLAND AND SWEDEN

[02] MILJOSKI: 'STANDS OF MACEDONIA AND EU ARE GETTING CLOSER'

[03] MACEDONIAN DELEGATION AT NATO MEETING

[04] INTERCEDING FOR CONTINUATION OF MACEDONIAN-GREEK TALKS

[05] HOLBROOKE: 'MACEDONIAN-GREEK RELATIONS CRUCIAL FOR THE STABILITY OF THE REGION'

[06] GREEK AND GERMAN COMPANIES ASK FOR A BIGGER COOPERATION WITH MACEDONIAN ENTERPRISES

[07] MACEDONIA-UKRAINE ECONOMIC COOPERATION DISCUSSED

[08] ALBANIAN OPPOSITION DEMONSTRATED

[09] DISPUTES ABOUT THE LAW ON TERRITORIAL DIVIDING

[10] REACTIONS TO THE LAW ON BROADCASTING

[11] VMRO-DPMNE AND DP WILL ATTEND THE PARLIAMENT SESSION

MILS SUPPLEMENT

[12] 'The Wheel Is Moving Slower' ('Vecer', 29 May 1996)

MILS NEWS

Skopje, 29 May 1996

[01] GLIGOROV VISITING FINLAND AND SWEDEN

President Gligorov is going to meet with President of Finland Marti Ahtisari and Finnish economy representatives in Helsinki. During his one-day stay in Stockholm, Gligorov is going to meet with Swedish Prime Minister Joran Person, and will be received by the King Gustav XVI.

[02] MILJOSKI: 'STANDS OF MACEDONIA AND EU ARE GETTING CLOSER'

Macedonian delegation proposed some compromises, such as to have the region (to which regional cooperation refers) defined as a South-Eastern Europe, and to make the internal develpment results as conditions for the joined membership.

They also asked for the visas regimes between Macedonia and EU to be simplified. All the proposals are going to be discussed by the European Commission very soon.

Macedonian Vice Prime Minister Jane Miljoski, who is in charge of these negotiations, yesterday stated for Macedonian Radio that there were chances to overcome the differences and that the stands of both parties were getting closer. According to him, the final version of the Agreement will be known after another negotiating round next month.

[03] MACEDONIAN DELEGATION AT NATO MEETING

[04] INTERCEDING FOR CONTINUATION OF MACEDONIAN-GREEK TALKS

Around 300 delegates from 39 countries are participating in the work of the Assembly, and Macedonia is represented by a three-members delegation.

[05] HOLBROOKE: 'MACEDONIAN-GREEK RELATIONS CRUCIAL FOR THE STABILITY OF THE REGION'

[06] GREEK AND GERMAN COMPANIES ASK FOR A BIGGER COOPERATION WITH MACEDONIAN ENTERPRISES

Besides selling German products, these companies, mostly members of the German-Greek Trade and Industry Chamber, are also interested in supply of Macedonian products. According to the announcement of the German Embassy in Skopje, they are especially interested in textile, construction materials, vegetables, steam boilers, fire prevention chemicals, etc.

[07] MACEDONIA-UKRAINE ECONOMIC COOPERATION DISCUSSED

They stressed possibilities for establishing joint ventures and for a joint appearance at third markets, as well as the need to sign a bilateral Investment Protection Agreement.

[08] ALBANIAN OPPOSITION DEMONSTRATED

'France Press' agency reported that two leaders of the Social-Democratic Party had been attacked during the demonstrations.

Macedonian Radio reported the statement of Kastriot Islami of the Albanian Socialist Party that dispersing the demonstrators was a beginning of the dictatorship in the country after the 'coup d',tat', which happened the day before yesterday. He said that some opposition leaders had been beaten by the police, and that many opposition parties members had asked for a refuge in the Socialist Party headquarters. Islami warned European countries that if they continue to support this regime, Albania will become unstable, which could affect the region.

[09] DISPUTES ABOUT THE LAW ON TERRITORIAL DIVIDING

Liberal Party deputies presented their stand that the number of 111 municipalities in Macedonia was too big, and suggested it should be reduced to 50 - 60. Their opinion was that the Law should be passed in three phases. Socialist Party representative supported the stand to reduce the number of municipalities, while PDP representative suggested for those places that would not like to become municipalities to be allowed to remain within the current ones.

Commission members of the Social-Democratic Alliance, however, fully supported the concept of the Law.

The same Law was discussed at the session of Town Assembly of Gostivar, and was rejected with an explanation that it was not in accordance with Articles 11 and 15 of the Law on Local Self-Government. Instead of the suggested eight municipalities on the territory of Gostivar, the Town Assembly members considered it would be better to have six and to keep the suburbs of the town within Gostivar municipality. It was concluded that in case the Government and the Parliament reject these requests, the Town Assembly would schedule a referendum for a new territorial dividing.

[10] REACTIONS TO THE LAW ON BROADCASTING

Macedonian Television yesterday commented the Article 7 of the Law, which read that a broadcasting tax would be introduced for financing this area. The tax would be 4% of the net average salary in the Republic, which would be included in the electricity bills, as part of the state budget. Macedonian TV commented that this is contrary to the reducing of the influence of state on the media, and that it was opposite to the freedom of information flow. The Law, according to Macedonian Television, could bring to a direct involvement of the state and political parties in the journalist profession. Instead, MTV suggested a separate independent fund to be established, out of the state budget, which was a recomendatuin made by European radio-experts on the basis of western experiences, but which was not taken into consideration by the drafters of the Law.

[11] VMRO-DPMNE AND DP WILL ATTEND THE PARLIAMENT SESSION

Leader of the Democratic Party Petar Goshev stated that the government was in this way trying to present itself as a democratic one, one which would like to hear those who initiated the action. He said the goal was, in fact, to involve the initiators in the discussion, which is not in accordance with the Constitution. The Constitution obliges the Parliament to make an automatic decision for scheduling a referendum, immediately after the number of the signatures is officially announced. He also said that the government was trying to present itself as a legitimate one. It was, acording to him, trying to make it look that there had been a communication with the opposition, which was not true.

Goshev concluded that there has been and would be a communication only about the early elections initiative, which would be supported by a Democratic Party representative in the Parliament on 4 June.

MILS SUPPLEMENT

[12] 'The Wheel Is Moving Slower'

('Vecer', 29 May 1996)

Industrial production in Macedonia during the first quarter of 1996 had increased for 1.1% in comparison with the same period last year. It is certainly a positive fact, and proves that the stabilization of the market conditions, supported by the macroeconomics policy, has brought to positive changes.

Macedonian economy last year had stopped the downward moving of its production for the first time in the last ten years and a production growth took place in certain production branches, although a small one. The 13.5% growth in January this year in comparison with January 1995 was especially encouraging.

The current situation in the industrial production is, however, warning. Because after the spectacular start of the year, the tempo became slower in the following months. The initial encouragement seems to have lessened, as it was realized that the total production growth was due to the over 500% increased production of the Skopje Oil Refinery after the blockades were lifted. Also, it is indicative that the decline of production had continued in the two thirds of the industry.

The reasons are well known: the difficulties in re- establishing the former business relations; administrative obstacles in products exporting; the unfair competition with the liberal and illegal import; weak economy liquidity, etc.

The last reason listed comes from the fact that stopping the fall of the total industrial production is not followed by certain financials effects. On the contrary, the financial strength of the enterprises reduces daily.

The economy is faced with a critical level of non-liquidity, which brings to a prominent lack of turnover means, and the consequences can easily be guessed.

This year's macroeconomics policy involves some alleviations for the economy. The data, however, show opposite results.

For example, the economic subjects had put aside 15,5 million denars for public expenses in the first three months of 1996, which was 6% more than last year. Also, the interest rates and insurance expenses had been increased from 1% to 2%.

Therefore, the development ambitions and needs of the economy are still stuck in non-investing, and the investment in every second municipality of the Republic are at the zero level. It will remain the same until the enterprises have too much debts, have not development means, nor support from the domestic banks. They have only one thing left to do: to endure until the announced foreign finance aid becomes operational for productive investing, i.e. for realisation of the development projects that many enterprises already have or are preparing them.

(end)

mils news 29 May, 1996

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