Yugoslav Daily Survey, 97-03-24

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From: Yugoslavia <http://www.yugoslavia.com>

Yugoslav Daily Survey

CONTENTS

[01] YUGOSLAV DEPUTY FOREIGN MINSTER RECEIVES BELGIUM-LUXEMBOURG ECONOMIC DELEGATION

[02] YUGOSLAV-CHINESE ECONOMIC COMMISSION ENDS SESSION IN BELGRADE

[03] YUGOSLAV PRIME MINISTER RECEIVES CHINESE DELEGATION

[04] YUGOSLAVIA NEEDS INTERNATIONAL COMMUNITY AID FOR REFUGEES

[05] MARJANOVIC OPENS WORK ON HORGOS-FEKETIC HIGHWAY

[06] YUGOSLAVIA URGES UNPREJUDICED RESOLUTION OF REFUGEE ISSUE

[07] MINISTRY OF TELECOMMUNICATIONS: BK TELEVISION BROADCASTS WITHOUT VALID PERMITS

[08] YUGOSLAV FINANCE MINISTER SAYS PRINTING MONEY WOULD BE IMPERMISSIBLE

[09] SERBIAN PTT COMPANY ISSUES STATEMENT ABOUT BK TELECOM

[10] MINISTER GAZIVODA: FINANCING OF BASIC FUNCTIONS OF THE FEDERATION

[11] MINISTER SOKOLOVIC: A YEAR OF BUILDING YUGOSLAVIA'S FUNCTIONS

[12] MINISTER MILUTINOVIC: AGREEMENT ON DUAL CITIZENSHIP TO BE REACHED SOON

[13] MINISTER MILUTINOVIC: YUGOSLAVIA WILL GIVE PRIORITY TO RELATIONS WITH FORMER FEDERATION MEMBERS

[14] DEPUTY PRIME MINISTER DJUKANOVIC: FIRST TASK IS FULL LIFTING OF EXTERNAL BLOCKADE

[15] NEW YUGOSLAV GOVERNMENT HOLDS FIRST WORKING SESSION

[16] DRAFT AGREEMENT ON DUAL CITIZENSHIP

[01] YUGOSLAV DEPUTY FOREIGN MINSTER RECEIVES BELGIUM-LUXEMBOURG ECONOMIC DELEGATION

The talk focused on bilateral relations in various fields and on plans for intensifying economic cooperation through concrete agreements and deals, such as the just signed agreement between the visiting delegation and Yugoslav Chamber of Commerce.

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-21

[02] YUGOSLAV-CHINESE ECONOMIC COMMISSION ENDS SESSION IN BELGRADE

Both sides showed an interest in taking measures to expand cooperation in the agricultural, food, chemical, petrochemical, mechanical engineering, electronics, telecommunications and automobile industries.

The two Governments undertook to support and stimulate national companies in all fields to enter into joint ventures or production cooperation with companies in the other country, it was noted. They noted a need for expanding cooperation and trade in services as well - finishing and processing, civil engineering, designing, management, transport, etc. They further noted that there were good prospects for developing cooperation in tourism, and moved for an inter-Governmental accord in this field.

Both sides showed interest in developing cooperation in maritime shipping and air transport, as well as in the development and modernisation of river transport in China.

Special attention was devoted to resuming banking cooperation in order to support these projects, and an initiative was launched for the Chinese side to consider extending credits to the National Bank of Yugoslavia (Central Bank). It was noted that officials of the two countries' Commercial Banks should meet as soon as possible to establish cooperation.

Yugoslav Minister of Foreign Trade Borislav Vukovic and Assistant Chinese Minister of Foreign Trade and Economic Cooperation Chen Xinhua signed a protocol at the close of the Commission's second session.

The Governments of the FR of Yugoslavia and China signed an Accord on the avoidance of double taxation. The accord was signed by Deputy Yugoslav Finance Minister Dragutin Vucinic and, for China, by Chen Xinhua.

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-21

[03] YUGOSLAV PRIME MINISTER RECEIVES CHINESE DELEGATION

Sainovic noted that China had pursued a principled policy towards Yugoslavia, adding that Yugoslavia had entered into a major economic arrangement with China which had balanced Yugoslavia's energy supply and demand, and allowed a normal functioning of the economy.

Chen, for his part, said that bilateral trade and economic relations would be fruitful because Yugoslav goods were competitive on the Chinese market.

Sainovic and Chen agreed that the two countries' economic cooperation reflected their excellent political relations, and noted a need for long- term measures to stimulate cooperation between the two nations' companies, the statement said.

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-21

[04] YUGOSLAVIA NEEDS INTERNATIONAL COMMUNITY AID FOR REFUGEES

Vukovic urged donors attending the conference to clearly state what they can do to help resolve the problem.

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-21

[05] MARJANOVIC OPENS WORK ON HORGOS-FEKETIC HIGHWAY

'This highway will be the shortest link between Western Europe and its southern parts and the Middle East. It is significant both in the transport sphere and for the profits it will generate. Alternative routes which circumvent our country have not shown themselves to be a rational replacement for this route since, objectively, they are not that in every sense,' Marjanovic said.

'Investments in the infrastructure are always of multiple importance for the economy. A reliable and modern infrastructure is a condition for our linking with the world and a source of significant income. It is well known that good roads and modern traffic networks, coupled with efficient telecommunications, are a precondition for the speedy revival of the flow of international capital, labour and goods,' Marjanovic said.

He stated that, apart from the Horgos-Subotica-Feketic section, continued would be the construction of the highway circumventing Belgrade on the Dobanovci-Sava highway section, also an important part of the trans- Yugoslav highways.

'In the present economic conditions, investments in roads, railways and telecommunications are also important because they enable the additional employment of our capacities and our labour,' Marjanovic said.

He underscored that in this way several tens of thousands of workers, as well as accompanying industry and scientific and other expert institutions, will be employed. He added that this will be a significant stimulus for the Yugoslav economy in the process of its dynamic development.

'What is important is that we will finance this work solely out of real sources, with the biggest participation of those who are the most frequent users of roads. The Serbian Government late last year, due to the multiple positive effects of the speedy construction of trans-Yugoslav highways on the entire economy, adopted a special decree introducing a 50 para (half a dinar) tax per litre of oil derivate for all road users.

Funds collected in this way are kept in a separate account and represent a stable source of financing for the continuation of work on certain sections and the opening up of new ones. This will provide about one billion dinars each year specially earmarked for the construction of the trans-Yugoslav highways,' Marjanovic said. He added that the Yugoslav annual program for highway construction calls for work on priority routes and that foreign partners are expected to join in the financing of the trans-Yugoslav highways in view of their profitability. 'The inflow of foreign capital will open a wider process of modernization and speed up development,' Marjanovic said.

'We have decided to show to the world in practice that we are capable of organizing major projects by ourselves, of employing our own people and capacities, and even of financing major investments, although we remain fully open to cooperation with foreign investors on the basis of the respect of mutual interests.'

Marjanovic underscored that the Horgos-Subotica-Feketic section is the first out of a series of major projects to be realized in the year of reforms for which the ground was prepared over the past three-year mandate of the Government of national unity.

'We came into office at the time of the toughest international sanctions and an almost total economic collapse. We managed to overturn the negative economic trends, enable economic revival and, for the first time after a lengthy period, to realize a significant growth in the sphere of production, exports and real individual incomes,' Marjanovic said. He pointed out that many positive trends are present at the start of 1997.

'In the first two months industrial production recorded a 4.4 percent rise compared to the same period last year. February wages were 12 percent up on January, exports were 50 percent higher in the first two months of 1997 compared to the same period in 1996, prices have been stable for the past three months, as has the dinar's exchange rate for some time now,' Marjanovic said.

'Investments in infrastructure systems, such as the routes whose construction we are starting today, will certainly contribute to speeding up the overall development. This is why I am certain that in this year we will achieve results which will enable higher wages, pensions and other individual earnings, and elevate overall living standards,' he said.

Marjanovic underscored that the reforms which are starting in 1997 are a precondition for the fundamental structural adaption of the Serbian economy to market conditions. 'Ownership transformation is an integral part of these general reforms. The Government has prepared a draft version of the law on ownership transformations, whose public presentation is planned for Monday,' he said.

Marjanovic explained that 'this law primarily aims to contribute to the better efficiency of the economy, and to motivate, through the proposed solutions for the purchase of social capital, all workers and all others who contributed to the creation of this country's social wealth.'

The law aims to secure the legal framework for the ownership, business, financial and organization transformation of major companies of special interest for the state and society, he said.

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-23

[06] YUGOSLAVIA URGES UNPREJUDICED RESOLUTION OF REFUGEE ISSUE

Morina told a meeting of Ministers and Commissioners for refugees of Yugoslavia, Bosnia-Herzegovina and Croatia, and representatives of Western European countries and international donors that the return of refugees to Bosnia-Herzegovina and Croatia had been very modest so far.

She presented figures showing that Yugoslavia still had about 700,000 refugees from Bosnia-Herzegovina and Croatia, and that more than one billion dollars set aside so far by the Yugoslav Government for refugees was an immense burden for the country.

Referring to the announced significant cuts in international refugee aid to Yugoslavia, Morina said that due several years of international sanctions, Yugoslavia was in a very difficult economic situation and unable alone to care for the refugees. She urged that the international refugee aid to Yugoslavia be at least kept at the hither to level.

Speaking about the UNHCR draft document on a lasting solution to the problem of refugees on the territory of the former Yugoslavia, Morina said the draft took for granted that a large number of refugees would integrate in Yugoslavia. She said such a view was not in keeping with the wish of the largest number of refugees to return to Bosnia-Herzegovina and Croatia.

The Yugoslav delegate set out that the draft document was economically unacceptable for Yugoslavia, above all because of the disastrous consequences of the international sanctions - an abrupt drop in production and living standard, very high unemployment, housing shortage, and the like.

Morina said the integration of refugees in Yugoslavia was objectively not possible, especially not without adequate assistance from the international community.

The head of the Yugoslav delegation informed the meeting that Yugoslavia's main goal was the return of refugees and displaced persons and exercise of their rights guaranteed under the Dayton Peace Agreement and other international acts.

Morina told the meeting that the UNHCR should play a key role in the drawing up and implementation of a program for the return of Serbs to Croatia, and noted that the offered UNHCR draft did not envisage programs of a collective return for which 56,000 Serb refugees had opted so far.

When Croatian authorities change their policy towards Serbs who have fled, a far larger number of Serbs will want to return, Morina said.

She set out that the return of refugees to Bosnia-Herzegovina presupposed the reconstruction of the former Yugoslav Republic, coupled with an equal treatment of both Entities.

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-21

[07] MINISTRY OF TELECOMMUNICATIONS: BK TELEVISION BROADCASTS WITHOUT VALID PERMITS

On the occasion of the recent polemic and contradictory reports in media about the work of BK Television and the contractual relations between the BK Telecom Company and the public companies Serbian Radio Television and Serbian PTT, the Federal Ministry of Telecommunications carried out a detailed analysis of permits and conditions under which BK Television airs programmes and issued the following statement:

- On the grounds of a Serbian Government tender, the BK Telecom Company was given use of television channels 12 for the area of Belgrade and 46 for the area of Novi Sad. Furthermore, under the contract with Serbian Radio Television, the company was given co-use of television channels 55 on Jastrebac and 58 on Crni Vrh near Jagodina. The former Federal Administration for Radio Communications issued working permits for radio stations for the locations of Novi Sad, Crni Vrh, and Jastrebac, on behalf of Serbian Radio Television, and for channel 12 on the location Belgrade- USCE, for a period of one year. The validity of the permit for channel 12 expired on june 21, 1995.

- The BK Telecom Company, with the exception of the location in Belgrade, did not built its own transmitter objects and the necessary infrastructure, or radio-relay links for conveying signals to the Crni Vrh and Jastrebac transmitters, but leased space in transmitter objects and antenna pillars of Serbian Radio Television. Furthermore, the company leased from Serbian PTT a radio-relay link to the transmitters on Crni Vrh and Jastrebac.

- On the grounds of articles 76 and 77 of the Federal Law on the communications system, a radio station can begin work only on the grounds of a completed positive technical examination, with a deadline of one year from the day the radio station work permit is issued, or the permit is revoked.

BK Television started broadcasting programmes from all locations without completing technical examinations, and they have not been completed to this day. That is why all work permits for BK Television transmitters have been revoked.

- Since, in spite of several warnings, the BK Telecom Company did not pay rent for the lease of space in transmitter objects or antenna pillars since the very beginning of broadcasts, Serbian Radio Television broke off contracts on lease and use of television channels, informing the Federal Administration for Radio Communications about this.

Serbian PTT also first announced it would cancel a new lease on communications and then cut off links because of unpaid bills for leased radio-relay communications by BK Telecom.

- On the grounds of requirements and needs of priority state users, and the need to coordinate this with the international obligations of the Federal Republic of Yugoslavia in the area of radio-frequencies, it is necessary to make changes in the plan for the purpose of radio-frequency ranges, in ranges for mobile telephones, television channel 12 in the VHF range, aerial navigation, rural communications, and other ranges.

- The Federal Ministry of Telecommunications, therefore, will amend the plan for the purpose of radio-frequency ranges, and solutions will be found for the further work of users with valid permits.

- Without entering into arbitration on the business relations between BK Telecom, Serbian PTT and Serbian Radio Television, the Ministry of Telecommunications concludes that BK Television is airing its programme from all locations without valid permits, the statement said in closing.

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-22

[08] YUGOSLAV FINANCE MINISTER SAYS PRINTING MONEY WOULD BE IMPERMISSIBLE

The public sector, Gazivoda continues, must rely on the economy, and if the economy cannot finance the necessary amount for public expenditure, then certain corrections have to be made.

Gazivoda said it was essential that the state did not pressure the Central Bank to print money to cover deficits. He denied categorically speculations that more money was put into circulation in March.

'There have been no new dinars put into circulation, and the steadiness of the black market exchange rate is the best proof of that,' said Gazivoda and added that the black market would be the first to react to any monetary expansion. The National Bank is always printing money, he said, but it controls the amount of money in circulation.

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-23

[09] SERBIAN PTT COMPANY ISSUES STATEMENT ABOUT BK TELECOM

Serbian Radio Television released the PTT statement late on Saturday, which read as follows:

'Since BK Telecom has not settled its outstanding debts for the use of the connection Avala, Crni Vrh and Jastrebac, and these debts have accumulated to a total of 19,630,080 dinars (about six million-marks) since 1995, the disconnection measure was applied as with any other user. We point out that private telephones are disconnected if citizens do not pay the phone bill for just one month.'

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-23

[10] MINISTER GAZIVODA: FINANCING OF BASIC FUNCTIONS OF THE FEDERATION

Gazivoda said that federal spendings will be on the level of the country's economic possibilities.

Asked about the possibility of regulating relations with financial organizations, Gazivoda said that the previous Government had started preparations for establishing relations with the International Monetary Fund (IMF), the World Bank and other institutions, and that a team of experts had been working on it for some time now. Everything that was up to the Federal Government has been done, but a lot depends on political and other circumstances which should be solved by June 14, another deadline for regulating relations with the IMF. Only when these pending issues are resolved, can we speak about realistic frameworks for regulating those relations, he said.

Gazivoda said he would continue to perform the duties of Central Bank Governor until a new Governor is elected, and take the office of Minister of Finance as soon as he is relieved of those duties.

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-21

[11] MINISTER SOKOLOVIC: A YEAR OF BUILDING YUGOSLAVIA'S FUNCTIONS

Speaking to reporters at a reception hosted by Yugoslav President Zoran Lilic for the new Prime Minister and his Cabinet, Sokolovic said the areas of security and internal affairs were inseparable.

'Every segment in this area has its authorities and jurisdiction and when each segment functions as it should, Yugoslavia is secure in every sense of the word,' he said. Sokolovic said all those conditions which imply the direct protection of citizens and direct security of the state would be strengthened in the coming period. He said both federal units 'have worked successfully so far on a modern organization and setting up good foundations on which to build security.'

Sokolovic said he was confident the Federal Interior Ministry, in cooperation with the Republican Interior Ministries, would this year create conditions and realize every task set under the Federal State's functions and authorities.

Following his appointment to the post of Federal Interior Minister, Sokolovic said, his deputy Radovan Stojicic is acting Serbian Interior Minister.

Asked by reporters about the issue of new Yugoslav passports, Sokolovic said the current delay was due to 'purely technical reasons.' He said these obstacles would be removed shortly and citizens would get new passports soon.

Speaking about the issue of dual citizenship with Croatia, Sokolovic said this was 'a matter of bilateral negotiations which are under way.' 'That matter is in the interest of both republics, and it is especially in the interest of the Serb people who live in Baranja, Eastern Slavonija, and Western Srem for this to be done as soon as possible,' Sokolovic said.

He said 'it is too soon to speak about any reorganization' of his department, and said that 'everything that is superfluous and makes up unnecessary administration will be eliminated.'

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-21

[12] MINISTER MILUTINOVIC: AGREEMENT ON DUAL CITIZENSHIP TO BE REACHED SOON

There are many things to be defined there, but I believe an agreement will be reached quickly,' said Milutinovic.

Milutinovic spoke to reporters at the Palace of the Federation building at a reception hosted by Yugoslav President Zoran Lilic for new Federal Prime Minister Radoje Kontic and his Cabinet.

Asked about the concrete effects expected from the Agreement on special parallel relations between Yugoslavia and Republika Srpska which was ratified on Thursday, Milutinovic said the results would depend on both sides, adding that effects would reflect everyone's efforts to realize the agreement.

Milutinovic said his Ministry would continue activities aimed at normalizing relations with Bosnia-Herzegovina. The establishment of full diplomatic relations with that state can be expected when the necessary agreement is reached, he said, adding that the procedure for arriving at such an agreement was under way.

Regarding the normalization of relations with the International Monetary Fund (IMF), Milutinovic said this international financial institution was not setting any special conditions, either directly or indirectly, but following the usual procedure. 'That is quite a complex procedure, according to IMF regulations, which is set before every member-state of that organization. Therefore, we are no exception, either,' he said.

Asked by reporters to comment the holding of panel discussions at the Serbian Assembly, Milutinovic pointed out their advantages. The first panel on public information was boycotted by the opposition, which demanded a round table instead. 'There are four or five things which are written. First, it is a public debate broadcast live on television, which means that no-one can fix or change it, then, the conclusions of a panel are binding, all conclusions must be adopted by consensus, the rules are written down, and, finally, the panel chairman is changed every hour,' Milutinovic said.

He pointed out that any issue which all sides believe is important can be placed on the panel agenda, and not only the issue of public information. 'The invitation to the panel sent to all parliamentary parties, exactly according to Gonzales's report, says that the invitation is for dialogue, but the agenda can be determined additionally, since all questions are open, ' Milutinovic said.

'Therefore, the essence is that an institution already exists, it is functioning and one should simply attend it, there is no reason to run away from it,' Milutinovic concluded.

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-21

[13] MINISTER MILUTINOVIC: YUGOSLAVIA WILL GIVE PRIORITY TO RELATIONS WITH FORMER FEDERATION MEMBERS

An agreement on normalization is expected to be signed shortly with Bosnia- Herzegovina and relations with Macedonia have been normalized to a great extent. As regards Croatia, endeavours are under way for full normalization, Milutinovic said.

The Federal Government will also give priority to relations with the European Union, the big powers and the Group of 7 industrialized countries, he added. The international community has become more open towards Yugoslavia, Milutinovic said and added talks would be held shortly with EU on preferentials and annexes to various agreements.

Yugoslavia will not neglect the relations with non-aligned countries, among which it has good friends, he noted. To this end, the Federal Government has a great task of renewing about 45,000 international agreements concluded by the former Yugoslavia.

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-21

[14] DEPUTY PRIME MINISTER DJUKANOVIC: FIRST TASK IS FULL LIFTING OF EXTERNAL BLOCKADE

Talking to journalists, at the reception hosted by Yugoslav President Zoran Lilic in honour of Prime Minister Kontic and Federal Government members, he specified that the Federal Government will also work on securing capital for starting production.

If we secure the necessary capital, then we will go forward, but if not we will have to find another way, and that is to go forward relying on our own forces, Djukanovic said. He added that companies which are able to increase their production should continue to operate, and those which can not should be restructured and try to survive.

Djukanovic said that the two federal members will 'jointly work out a model of privatization, which will be in the interest of Yugoslavia.'

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-21

[15] NEW YUGOSLAV GOVERNMENT HOLDS FIRST WORKING SESSION

The Federal Government replaced the Trade Ministry with the Ministry of Internal Trade and the Ministry of Foreign Trade, and the Ministry of Transportation and Communications with the Ministry of Transportation and of the Ministry of Telecommunications. It also formed the Ministry of Sports.

Yugoslavia now has the following ministries: Foreign Affairs, Defense, Internal Affairs, Finance, Justice, Economy, Transportation, Telecommunications, Internal Trade, Foreign Trade, Labour, Health and Social Policy, Development and Human Environment, Agriculture, and Sports.

Under the latest Federal Government provision, the federal bodies and organizations are: Federal Customs Agency, Secretariat for Information, Secretariat for Legislation, Statistics Office, Hydro- Meteorological Office, Office for International Cooperation in Aggro-Industry, UNIDO- Yugoslavia Centre, Commodity Reserves Agency, and Archives.

The new Federal Government decided that all ministries propose their programs of work for this year by the end of next week on the basis of Prime Minister Kontic's report to the Federal Assembly.

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-21

[16] DRAFT AGREEMENT ON DUAL CITIZENSHIP

Readiness was expressed to proceed as soon as possible to the coordination and signing of this agreement of exceptional importance for the citizens of both countries.

Yugoslav Daily Survey, 1997-03-24 ; Tanjug, 1997-03-21

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