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Yugoslav Daily Survey 96-04-23

Yugoslav Daily Survey Directory

From: ddc@nyquist.bellcore.com (D.D. Chukurov)

23 April 1996


CONTENTS

[A] YUGOSLAVIA - ROMANIA

[01] ROMANIA, YUGOSLAVIA INITIAL INTER-STATE AGREEMENT ON FRIENDSHIP

[02] YUGOSLAVIA, ROMANIA URGE CONSISTENT IMPLEMENTATION OF BOSNIA ACCORDS

[B] YUGOSLAVIA - RUSSIA

[03] DEPUTY FOREIGN MINISTER RECEIVES HIS RUSSIAN COUNTERPART

[C] FINLAND - YUGOSLAVIA

[04] FINLAND NORMALISES RELATIONS WITH YUGOSLAVIA

[D] THE REPUBLIKA SRPSKA

[05] PRIME MINISTER MEETS WITH WORLD BANK OFFICIALS

[E] YUGOSLAVIA - ECONOMY

[06] MONETARY STABILITY IN YUGOSLAVIA


[A] YUGOSLAVIA - ROMANIA

[01] ROMANIA, YUGOSLAVIA INITIAL INTER-STATE AGREEMENT ON FRIENDSHIP

Bucharest, April 22 (Tanjug) - The Foreign Ministers of the Federal Republic of Yugoslavia and Romania, Milan Milutinovic and Teodor Malescanu, initialled on Monday an inter-state agreement on friendship, good-neighbourliness and cooperation for a 20-year period.

The Presidents of the two countries will sign the agreement in Belgrade soon. The agreement, which defines the issue of sovereignty and borders, lays foundation for modern political, economic, cultural and scientific cooperation between the two countries. The document also defines the position of the ethnic Romanian community in Yugoslavia and the ethnic Serb community in Romania. The two communities have always been a bridge of cooperation and friendship between the two countries.

Milutinovic said that the agreement was comprehensive and very important for the future cooperation between Yugoslavia and Romania.

The agreement expresses both peoples' interest and the fact that Romania supported and solidarized with Yugoslavia during the worst moments of crisis in the former Yugoslavia, Milutinovic said. Yugoslavia highly appreciates this stand, he added.

Milutinovic met with Romanian President Ion Iliescu. In a brief statement after the meeting, Milutinovic said that he and Iliescu had discussed the comprehensive Yugoslav-Romanian relations.

The Yugoslav Foreign Minister met with Romanian Senate President Oliviu German and discussed the strengthening of inter-parliamentary cooperation between the two countries.

Milutinovic urged the creation of legal and other conditions for increasing local border trade and traffic and possibilities that the Romanian and Yugoslav citizens cross the common border without passports.

Milutinovic was also received by Speaker of the Romanian Parliament's Chamber of Deputies Adrian Nastase.

[02] YUGOSLAVIA, ROMANIA URGE CONSISTENT IMPLEMENTATION OF BOSNIA ACCORDS

Bucharest, April 22 (Tanjug) - Yugoslav Foreign Minister Milan Milutinovic said that Yugoslavia and Romania believed that a consistent and full implementation of the Dayton peace agreement on Bosnia-Herzegovina was a priority.

Yugoslavia highly appreciates Romania's objective and constructive efforts for a peaceful, lasting and just political solution in the former Yugoslavia, Milutinovic said at the end of his one-day visit to Bucharest.

Milutinovic said that Belgrade appreciated Romania's readiness to urge Yugoslavia's speedy reintegration into the United Nations, the Organization for Security and Cooperation in Europe and international financial institutions and regional integrations.

The promotion of good neighbourly relations is in the interest of all countries in the region and Europe and it can be successful only if all regional countries participate in it on an equal footing, Milutinovic said.

According to Milutinovic, both sides agreed that the international community had to have an unbiased approach to all sides in Bosnia-Herzegovina.

We agreed that such an approach was necessary also in the implementation of the basic agreement on Eastern Slavonia, Baranja and West Srem (the Srem-Baranja region), he said.

Yugoslavia and Romania support international efforts for a speedy securing of funds for Bosnia's reconstruction, call for their equal distribution and believe that the timely holding of democratic and fair elections in Bosnia-Herzegovina is important for the stability and final success of the peace process, Milutinovic said.


[B] YUGOSLAVIA - RUSSIA

[03] DEPUTY FOREIGN MINISTER RECEIVES HIS RUSSIAN COUNTERPART

Belgrade, April 22 (Tanjug) - Deputy Yugoslav Foreign Minister Radoslav Bulajic on Monday received his Russian counterpart Nikolai Afanasyevski who arrived on a several-day working visit to the former Yugoslavia.

The two ministers exchanged views on the present and future activities on promoting bilateral relations and cooperation, the Yugoslav Foreign Ministry said.

It was noted that the cooperation between the two countries proceeds in a satisfactory manner, thanks largely to the accelerated process of providing legal bases for agreements in key areas, especially in economic relations.

Afanasyevski was informed about the latest developments in the former Yugoslavia and activities of the Federal Republic of Yugoslavia in the peace process and overall stabilization of the situation in the Balkans.


[C] FINLAND - YUGOSLAVIA

[04] FINLAND NORMALISES RELATIONS WITH YUGOSLAVIA

Oslo, April 22 (Tanjug) - Finland on Monday re-established full diplomatic relations with the Federal Republic of Yugoslavia.

A statement issued by the office of Finnish President Martti Ahtisaari said Helsinki had taken the decision in accordance with the policy defined by the European Union, Finland being its member.

The decision resulted from the situation following the signing of the Dayton peace agreement for Bosnia-Herzegovina as well as by full normalisation of relations between Belgrade and Skopje, the statement said.


[D] THE REPUBLIKA SRPSKA

[05] PRIME MINISTER MEETS WITH WORLD BANK OFFICIALS

Pale, April 22 (Tanjug) - Prime Minister of the Republika Srpska Rajko Kasagic met on Monday with senior World Bank officials to discuss programmes of economic reconstruction financed by that international institution.

The World Bank officials requested that the Republika Srpska cooperate with that financial institution and the International Monetary Fund through the bodies of Bosnia-Herzegovina, while Kasagic insisted that the cooperation be conducted through Bosnian Serb institutions until the planned elections. This may be changed after the election of joint bodies in Bosnia-Herzegovina, Kasagic said.


[E] YUGOSLAVIA - ECONOMY

[06] MONETARY STABILITY IN YUGOSLAVIA

Belgrade, April 21 (Tanjug) - Monetary stability in the Federal Republic of Yugoslavia, achieved after the launching of the new economic recovery programme over four months ago, is so strong that dinar's rate on the parallel market is equivalent to the official rate, Yugoslav National Bank Deputy Governor Ratko Banovic said.

There exists a higher level of liquidity in banks and economy than in early December which results from an increase in money supply, deposit money and banking sector credits, Banovic said.

Such monetary stability, which had not been recorded for several decades, results from dinar's realistic rate (one German mark is equivalent to 3.3. dinars) and the setting up of an official foreign currency market which operates every day within the framework of the Yugoslav Banks' Association.

Foreign currency for legal imports can be obtained on the official money market, which has contributed to the suppression of the 'gray' market, Banovic added.

Banovic pointed out that monetary stability had also been achieved by providing foreign currency for money printing.

The National Bank has taken active part in the financial market by issuing and selling its short-term securities. The bank has also sold commercial banks' bill holdings.

The National Bank has started to use the instruments for fine regulation of money circulation.

Banovic warned that the National Bank would carry on with a firm restrictive monetary-credit policy until the establishment of a foreign trade balance or the beginning of a substantial foreign currency inflow through credits and investments. .

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