Yugoslav Daily Survey, 97-11-14

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Yugoslav Daily Survey

CONTENTS

[01] MILOSEVIC: WE HAVE COME AMONG FRIENDS

[02] ZORAN LILIC FEDERAL VICE PRIME MINISTER

[03] MINISTER VUKOVIC RECEIVES MOLDAVIAN PARLIAMENTARIANS

[04] REGULAR BELGRADE-ZAGREB RAIL LINK IN MAY 1998

[05] PLAVSIC URGES REPUBLIKA SRPSKA'S JOINING U.S. "EQUIP AND TRAIN" PROGRAMME

[06] YUGOSLAV DEPUTY FOREIGN MINISTER RECEIVES MOLDOVA PARLIAMENTARIANS

[07] HIGH REPRESENTATIVE FOR BOSNIA REPORTS TO UN SECURITY COUNCIL

[08] YUGOSLAV UPPER HOUSE SPEAKER RECEIVES MOLDOVAN PARLIAMENTARIANS

[09] YUGOSLAV PRESIDENT MILOSEVIC RECEIVES CHINESE CORRESPONDENTS

[10] CHINA ATTACHES GREAT IMPORTANCE TO PRESIDENT MILOSEVIC'S VISIT

[11] KONTIC RECEIVES EGYPT'S NEWLY-APPOINTED AMBASSADOR IN BELGRADE

[12] YUGOSLAV FOREIGN TRADE MINISTER RECEIVES GERMAN DELEGATION

[13] DEPUTY YUGOSLAV FOREIGN MINISTER RECEIVES OSCE COMMISSION CHAIRMAN

[14] YUGOSLAV CHIEF OF STAFF RECEIVES OSCE OFFICIAL

[15] EU RECOGNIZES YUGOSLAVIA'S ROLE IN EUROPE

[16] TWO-DAY SESSION OF COMMISSIONS FOR MISSING PERSONS IN BELGRADE

[17] YUGOSLAVIA WILL NOT PRINT MONEY WITHOUT BACKING, SAYS VICE PREMIER

[18] SAINOVIC * YUGOSLAV ECONOMIC POLICY FOR 1998

[19] YUGOSLAV EXPORTS GROW BY 29 PERCENT IN TEN MONTHS

[20] MOLDAVIAN PARLIAMENTARY DELEGATION IN YUGOSLAVIA

[21] YUGOSLAV PRIME MINISTER RECEIVES MOLDOVAN PARLIAMENTARY DELEGATION

[22] SERBIAN MINISTER: RAILWAY TRAFFIC WITH CROATIA ALSO VITAL FOR EUROPE

[23] PRESIDENT MILOSEVIC'S VISIT TO CHINA - HUGE IMPETUS FOR COOPERATION

[24] YUGOSLAV PRESIDENT TO VISIT CHINA

[25] SERBIAN POWER COMPANY EPS AND GERMANY'S KRUPP SIGN 30-ML-DLR DEAL

[26] KRAJISNIK MEETS EU OFFICIALS

[27] YUGOSLAV DEPUTY PRIME MINISTER RECEIVES U.S. BUSINESSMAN

[28] YUGOSLAVIA-ROMANIA

[29] STABLE ASSEMBLY IS GUARANTEE OF REPUBLIKA SRPSKA SURVIVAL

[30] PROTOCOL ON FOUNDING OF BEOFINEST SIGNED

[01] MILOSEVIC: WE HAVE COME AMONG FRIENDS

Tanjug, 1997-11-13

Yugoslav President Slobodan Milosevic arrived late on Wednesday for a three- day official visit to China at the invitation of his Chinese counterpart Jiang Zemin. "We come as friends, to visit friends. We wish to develop cooperation. I believe President Jiang Zemin and myself w ill make a significant step toward strengthening our friendship and developing cooperation between Yugoslavi a China," Milosevic told reporters at Peking airport. Talks between the two presidents start on T hursday afternoon, following a welcoming ceremony by the host. At the Belgrade airport, Milosevic attend ed a farewell ceremony with the highest state and military honours. Accompanying Milosevic on this impor tant state visit are senior state officials and a large group of Yugoslav businessmen.

[02] ZORAN LILIC FEDERAL VICE PRIME MINISTER

Tanjug, 1997-11-11

On the basis of Article 100 of the Constitution of the Federal Republic of Yugoslavia, Federal Prime Minister Radoje Kontic on Tuesday appointed Zoran Lilic as federal Vice Prime Minister.

Acting according to Article 102 of the Yugoslav Constitution, Kontic informed the Federal Parliament about this, the Federal Information Secretariat has said.

[03] MINISTER VUKOVIC RECEIVES MOLDAVIAN PARLIAMENTARIANS

Tanjug, 1997-11-11

Federal Foreign Trade Minister Borislav Vukovic received on Tuesday a parliamentary delegation from the Republic of Moldavia, headed by Parliament Speaker Dimitru Mopcan, the Federal Information Secretariat has said. Vukovic informed the Moldavian delegation about the economic trends in the Federal Republic of Yugoslavia and the planned economic reforms, especially privatization and the restructuring of the Yugoslav economy which should enable more intensive economic cooperation with the world and between the two countries. Both sides concluded that Yugoslav-Moldavian economic cooperation lags behind the political sphere and is far beneath what is possible. With its intensification in mind, agreed was that experts should meet shortly to prepare draft interstate agreements which should enable comprehensive cooperation ranging from trade to the opening up of joint companies. Underscored were numerous economic spheres in which there exist good possibilities for cooperation, primarily agriculture, the food industry, the metal-processing and pharmaceutical industries, it was said.

[04] REGULAR BELGRADE-ZAGREB RAIL LINK IN MAY 1998

Tanjug, 1997-11-11

Regular rail traffic between Belgrade and Zagreb will most probably be established in May 1998, the representatives of Yugoslav and Croatian rail companies told a joint press conference in Morovic near Sid on Tuesday. The Director of the Yugoslav Railways, Svetolik Kostadinovic, said that representatives of the two countries can start discussing future direct links starting tomorrow. Kostadinovic said that this international rail route linking Salzburg with southern Europe, via Ljubljana, Belgrade and Nis, is of vital economic importance for the development of rail infrastructure on international routes in Yugoslavia and Croatia. Given the importance of this European corridor for the transport of goods, we expect a revival of transit, or the transport of around 300,000 tons of goods by next year over the border zone between Tovarnik and Sid from Italy, Switzerland and France towards southeast Europe, or between Romania and Italy, Kostadinovic said. In cargo transport, for the time being, one regular train will be in service between Sid and Vinkovci and one train according to need.

Minister Kostadinovic said that the re-establishing of the rail link between Sid and Vinkovic was also important because the line was "a vital part of the road-railway Corridor 10, which was included in the network of rails of European importance at the European Ministerial Conference on Railways in Helsinki in June this year". The Serbian Minister said the link opened possibilities for Yugoslavia's increased trade and intensified economic ties with Croatia and other European countries. "It creates possibilities for the advancement of cooperation with the Croatian and other railways in Corridor 10, on the basis of common interests, and opens the way for capacitating the rail infrastructure for more intensive and better quality transportation," The Serbian Transportation and Communications minister said. He stressed that since a decision had been taken to complete all projects linked to Corridor 10 by the end of next year, possibilities were now also being created for the securing of funds for the railways. Croatian Railways General Director Marijan Klaric supported the announced direct rail links between Belgrade and Zagreb saying that they are primarily based on market and commercial foundations. Klaric said that certain private enterprises are showing interest in the modernization of separate trains on this route. He recalled that in 1991 between 6,000-7,000 people travelled along this line, but that this figure could be reached at the end of the century. General Director said he hoped all the trains running on the border-region lines would "carry and symbolize messages of understanding and tolerance." "The opening of the border-region links is of outstanding importance because it enables communication and the implementation of the decision of the Helsinki European Conference for Corridor 10 to run between Salzburg, southern Europe and the Near East via Ljubljana, Zagreb, Belgrade and Nis," Klaric said. After numerous Yugoslav, Croat and foreign journalists asked whether the reopening of the rail links between the two states was the result of pressure by the international community, it was said that this was based on economic principles and on an agreement between the two countries' Governments to promote interstate relations. It was said that about 45 million German marks were invested in the revitalization of the rail line from Vinkovci towards the Yugoslav border, and that the question of visas would be resolved by the two countries' Governments.

[05] PLAVSIC URGES REPUBLIKA SRPSKA'S JOINING U.S. "EQUIP AND TRAIN" PROGRAMME

Tanjug, 1997-11-11

President of the Republika Srpska Biljana Plavsic said on Tuesday that she accepted the Republika Srpska's unconditional joining the U.S. "Equip and Train" Programme. In an exclusive interview to the R.S. news agency Srna, carried by Serb Radio in Pale, Plavsic commented also on a recent summit of Balkan leaders in Crete, Greece. She said she welcomed regional integration processes in Europe, saying the Republika Srpska would win a place for itself within these processes first in southeast Europe and then elsewhere through central Europe. Referring to the arbitration for the disputed town of Brcko, Plavsic said the town must remain in the Republika Srpska.

"Brcko holds a special status in the sense that the Dayton Agreement should be implemented speedily there and Brcko supervisor Robert Farrand is already making efforts to this end," she said.

She said R.S. parliamentary elections would create a new balance of power in Parliament, saying several coalitions would probably be formed and agreements reached on different issues.

The seat of the future government should be in Banja Luka, she said adding that, because of the R.S. geostrategic position and configuration, Parliament should be ruled by its previous experience and hold sessions throughout the Republika Srpska. A final decision to this end will be taken by a new parliament as well as on whether to hold an early presidential election in the Republika Srpska, she said. Referring to Serb Radio and Television, Plavsic said the international community should not have repeated its mistake and interfered in an issue that was to be dealt with by the Republika Srpska under the Dayton Agreement. Commitments assumed under the Agreement must be met and all that the Republika Srpska is entitled to under it must be preserved, she said explaining that this included about 75 percent of sovereignty, including the sphere of information.

[06] YUGOSLAV DEPUTY FOREIGN MINISTER RECEIVES MOLDOVA PARLIAMENTARIANS

Tanjug, 1997-11-11

Yugoslav Deputy Foreign Minister Radoslav Bulajic on Tuesday met with a Moldova parliamentary delegation, headed by Speaker Dumitru Mopcan, who are in an official visit to Yugoslavia at the invitation of Yugoslav Parliament's Lower House Speaker Milomir Minic. The officials discussed bilateral relations, possibilities and needs for their further promotion and constant strengthening of dialogue on foreign policy issues and international cooperation.

[07] HIGH REPRESENTATIVE FOR BOSNIA REPORTS TO UN SECURITY COUNCIL

Tanjug, 1997-11-11

The agenda of the United Nations Security Council session on Tuesday that focused on Iraq also included Bosnia after international community's High Representative for civilian affairs in Bosnia Carlos Westendorp submitted his regular report on the implementation of the Dayton Peace Accords.

Following consultations held behind closed doors, Security Council President Qian Huasun of China told reporters that the Council had backed Westendorp's efforts and stated that, over the past few months, headway was made in the implementation of some sections of the peace treaty. Qian said that the Council voiced concern over resistance that still existed to that effect and, therefore, called on all sides in Bosnia to cooperate with international community representatives, the International War Crimes Tribunal based in The Hague and other organizations. He said the Council regarded with expectations and hope the coming Ministerial Conference on Bosnia to be held in Bonn in December. Westendorp said that progress had been made in the implementation of the Dayton Peace Accords thanks to international community's determination to have the civilian section of the treaty fully implemented. He said that the current tasks included creating conditions for repatriation of refugees, setting up civilian police with the aid of the IPTF, struggle against corruption and efforts toward the opening and democratization of Bosnian media. Asked what kind of mission would be set up in Bosnia after the SFOR mandate expires in June 1998, Westendorp said that this issue was beyond his authority. He said he believed that the presence of the SFOR would still be necessary. He also said he believed that the new mission would most certainly have to stay in Bosnia for more than a year.

[08] YUGOSLAV UPPER HOUSE SPEAKER RECEIVES MOLDOVAN PARLIAMENTARIANS

Tanjug, 1997-11-11

Yugoslav Parliament Upper House Speaker Srdja Bozovic met on Tuesday a Moldovan parliamentarian delegation headed by Speaker Dimitru Mopcan to discuss the development of bilateral parliamentary relations as an incentive for promoting overall cooperation between the two countries.

Parliamentary cooperation as an important form of diplomatic activity can form the backbone of better bilateral relations in all fields which would be useful for both peoples and states, it was noted during the meeting. Bozovic pointed to the outstanding legislative activity of the Yugoslav Parliament and underlined that enforcement of adopted regulations would contribute to the further democratization and the establishment of market economy in Yugoslavia. Yugoslavia must reintegrate all international organizations and institutions as soon as possible as a pre-condition for a successful implementation of economic and political reforms, Bozovic said. Mopcan said that Moldova supported Yugoslavia's endeavors to reintegrate the international community and alleviate the effects of UN sanctions.

Mopcan invited a delegation of the Yugoslav Parliament to attend a session of the Parliamentary Assembly of the Organization of Black Sea countries for economic cooperation, scheduled for December 9-12 in Moldova.

[09] YUGOSLAV PRESIDENT MILOSEVIC RECEIVES CHINESE CORRESPONDENTS

Tanjug, 1997-11-11

President of the Federal Republic of Yugoslavia Slobodan Milosevic received on Tuesday the correspondents of key Chinese media - the Xinhua news agency, the Renmin Ribao and Guangming Ribao papers and the Beijing Radio- Television, in the expectation of his official visit to the People's Republic of China. In his interview to the Chinese correspondents, President Milosevic answered a series of questions regarding bilateral relations, future cooperation prospects and other issues.

[10] CHINA ATTACHES GREAT IMPORTANCE TO PRESIDENT MILOSEVIC'S VISIT

Tanjug, 1997-11-11

Yugoslav President Slobodan Milosevic's visit to China is considered an important event for the comprehensive promotion of relations of the two traditionally friendly countries, Chinese Foreign Ministry spokesman Shen Guofang said today. The upcoming visit of President Milosevic represents a major, important event, Shen said at a regular news briefing stressing that China and FR Yugoslavia are friendly countries whose two peoples have traditionally friendly ties. I hope that this visit will help expand cooperation in all fields, Shen said. China and Yugoslavia have close political views and much potential for cooperation in economy and trade. We hope that President Milosevic's visit will help strengthen cooperation in all fields, The Chinese spokesman said. Talking about the content of the visit, Shen said that bilateral relations and current international issues will be in the focus of attention. We expect a number of agreements to be signed for the promotion of economic and trade cooperation, Shen said indicating that it is the wish of the Chinese side to strengthen and intensify bilateral relations. We want a multifaceted cooperation in the interest of both countries at the turn of the century, he specified.

[11] KONTIC RECEIVES EGYPT'S NEWLY-APPOINTED AMBASSADOR IN BELGRADE

Tanjug, 1997-11-11

Yugoslav Prime Minister Radoje Kontic received on Tuesday Egypt's newly- appointed Ambassador in Belgrade Hani Abdul Moniem Khallaf. A statement released by the Yugoslav Information Secretariat quoted Kontic and Khallaf as saying that all preconditions existed for the resumption and diversification of cooperation between the two countries in all spheres. Kontic stressed Yugoslavia's readiness to step up relations with Egypt, especially in the light of the fact that Egypt is Yugoslavia's major trade partner among developing countries and that there are no open issues between the two countries, the statement said. Kontic said great potential existed for the promotion of economic cooperation between the two countries whose economies he said were complementary. He said visits by the two countries' top officials would help promote cooperation. Khallaf said his country wanted to intensify cooperation with Yugoslavia in the sphere of trade, investment, tourism, culture, science and sport. Kontic said Egypt's activity within international organisations could help Yugoslavia speedily reintegrate into the international community, which he said would contribute to the promotion of bilateral cooperation and to the lasting stabilisation and prosperity in the region.

[12] YUGOSLAV FOREIGN TRADE MINISTER RECEIVES GERMAN DELEGATION

Tanjug, 1997-11-11

Yugoslav Foreign Trade Minister Borislav Vukovic received on Tuesday evening a German state and business delegation headed by Deputy Foreign Trade Minister Hans Schill, Yugoslav Information Secretariat said in a statement. They discussed the prospects for future development of economic cooperation between the two countries, and pointed to the importance of mutual confidence-building and of the continuous implementation of the European Union's autonomous trade measures, the statement says.

[13] DEPUTY YUGOSLAV FOREIGN MINISTER RECEIVES OSCE COMMISSION CHAIRMAN

Tanjug, 1997-11-11

Yugoslavia's Deputy Foreign Minister received here on Tuesday the chairman of the OSCE Consultative Commission on implementing the Florence Accord on sub-regional arms control. Deputy Foreign Minister Radoslav Bulajic and the OSCE official, Italian General Carl Jean, reviewed the state of affairs in the implementation of the Accord and noted that it was being implemented successfully, a Yugoslav Government statement said. It is necessary that all signatories to the Accord apply it consistently, it was stressed during the meeting, according to the statement.

[14] YUGOSLAV CHIEF OF STAFF RECEIVES OSCE OFFICIAL

Tanjug, 1997-11-11

The Yugoslav Chief of Staff received here on Tuesday the Chairman of the OSCE Commission on the implementation of the Florence sub-regional arms control accord. The OSCE official, Italian General Carl Jean, is paying a visit to the Federal Republic of Yugoslavia. Chief of Staff Gen. Momcilo Perisic and Gen. Jean reviewed topical questions concerning the implementation of the Florence Accord, noting that the Yugoslav Army had discharged all obligations assumed under the Accord, a Government statement said. They discussed also some aspects of a future regional arms control accord. During the visit, the ranking OSCE official is scheduled to have a number of meetings at the Yugoslav Defence Ministry and Army General Staff.

[15] EU RECOGNIZES YUGOSLAVIA'S ROLE IN EUROPE

Tanjug, 1997-11-10

The Foreign Ministers of the European Union adopted a Declaration concerning the Federal Republic of Yugoslavia in a meeting on Monday. The Declaration "recognizes the important role the FRY has to play in the region and in Europe," and that the people of FRY must "choose together how best to bring the FRY to its rightful and prosperous place in the community of nations."

The Declaration stresses that the EU policy "is based on a fair approach and equal opportunities to all the countries of the region," adding that the "Union wishes to see a FRY that is peaceful, prosperous and democratic, one that has taken its rightful place in the European family."

The Union "requires the FRY to live up to the same standards as the rest of Europe," as "many of the countries in the Union have faced economic problems similar to those that now beset you.

"It is wrong to believe that there are easy and simple solutions to the problems the FRY faces. The lesson of the last forty years is that it is by working together with other Europeans that economic well-being is most speedily restored," said the Declaration. The EU calls on Yugoslavia to cooperate with the international community in building a fully democratic Yugoslavia. The EU expects the same of all the countries in the region - full respect for democracy and human rights, commitment to work for just peace through implementation of the Dayton Accord, including full cooperation with The Hague Tribunal, and the other accords that ended the war, good-neighborliness, and a constructive approach toward resolving ethnic and minority problems in the region.

[16] TWO-DAY SESSION OF COMMISSIONS FOR MISSING PERSONS IN BELGRADE

Tanjug, 1997-11-10

The Yugoslav Government Commission for humanitarian issues and missing persons, headed by its President Maksim Korac, and the Croatian Commission for captured and missing persons, headed by its President Col. Ivan Grujic, will meet in Belgrade on Nov 11 and 12. The meeting will be attended also by the presidents of the Republika Srpska Commission for missing persons, the Commission for the exchange of captured and missing persons of the Croatian part of the Bosnia-Herzegovina Federation, and the Commission for missing persons of the Srem-Baranja region, as well as representatives of the "Veritas" Document-Information Centre, and the International Committee of the Red Cross (ICRC). The objective of the meeting is to settle outstanding issues in connection with missing persons in the former Yugoslavia, a Federal Government statement said.

Talks will also cover the passing over of remains of former Yugoslav People's Army (JNA) soldiers who were killed in Croatia, passing over of documents on missing persons, and the exchange of all available data regarding the identification of persons killed or murdered in conflicts in the entire territory of the former Yugoslavia. The Yugoslav Commission will especially insiston agreements regarding Yugoslav demands pertaining to former JNA pilots, a group of soldiers "Donje Kolibe", reserve soldiers of the "Niksicka" and "Savnicka" groups, and the surrender of remains of former JNA soldiers, said the statement.

[17] YUGOSLAVIA WILL NOT PRINT MONEY WITHOUT BACKING, SAYS VICE PREMIER

Tanjug, 1997-11-10

Yugoslavia will not print money without hard-currency backing, according to its Vice Premier speaking at an impromptu news conference during a recess at a symposium on insurance in Belgrade's Sava Congress Centre on Monday. Vice Premier Danko Djunic said that a restrictive monetary and credit policy by the National Bank of Yugoslavia (Central Bank) and measures by the Federal Government woulbe employed to defend the value of the national currency, the dinar.

Djunic said that this position was shared by the Central Bank and the Governments of Yugoslavia and of its two constituent republics - Serbia and Montenegro. He added he was hopeful that the value of the dinar and its exchange rate against the world's major currencies would soon be stabilised. He said that, over the past month, the Central Bank's Board of Governors had taken a number of steps to reduce the money mass in circulation, and had reduced it by about ten percent since late September. The lack-market exchange rate of the dinar would have been brought down to the normal level much faster and more successfully had it not been for some political developments that had appeared to be conducive to an inflation, he added. Speaking about the future of the talks with the London Club of creditors, he said that the Government was now waiting for the commercial banks that make up the London Club to make the next move. "We are ready to resume the negotiations, but only if we are made a concrete offer. There have been some contacts from their side, and the Federal Government will adopt a position onca concrete offer has been made," he said.

Asked about expectations from the Group on Succession to former Yugoslavia, he said that the Federal Republic of Yugoslavia wished to be part of the international community, but that there were stringent conditions being dictated for its membership. "In my view, we should try, by reasonable compromise and with due respect for our country's strategic economic, national and political interests, to find an option that should be acceptable both to us and the world, and be reintegrated in the community of nations. "Our Government is making efforts in this direction and I think that these efforts will soon bear fruit," he said. He said that Yugoslavia "is sure to find a mutually acceptable compromise, because the internal precondition for reform is stability, and the external, reintegration in world financial bodies and the removal of the outer wall of sanctions."

[18] SAINOVIC * YUGOSLAV ECONOMIC POLICY FOR 1998

Tanjug, 1997-11-10

Yugoslav Deputy Prime Minister Nikola Sainovic opened the 35th International Furniture Fair in Belgrade on Monday. Sainovic said that the Federal and Republican Governments were defining the economic policy for 1998, with a stable national currency, stable prices and the securing of an adequate place on the world market as the basic elements. Years of economic recovery will be replaced by years of stepped-up economic develeopment, the Yugoslav Deputy Prime Minister set out.

Sainovic said that a 10-percent growth of the social product, coupled with an increase in exports, had been projected for next year, and noted that 1998 would be the fifth consecutive year of a steady growth of the social product. The policy will be based on the attained level of economic recovery, and the major motor force will be reformist measures and continued ownership transformation, the Yugoslav official said. He specified that an inflow of 2 billion German marks had been secured this year through ownership transformation. Sainovic said that privatization on a wide front was to be expected next year, and noted that the Yugoslav tax system favoured initial investments. He stressed that the Yugoslav Government and the Central Bank gave priority to the dinar's stability and that social benefits would be covered solely from real sources.

[19] YUGOSLAV EXPORTS GROW BY 29 PERCENT IN TEN MONTHS

Tanjug, 1997-11-10

Yugoslavia's exports in the first ten months of 1997 were worth 1.9 billion dollars, exceeding the figure registered in the corresponding period of 1996 by 29 percent, the Yugoslav Statistics Institute told Tanjug on Monday. In the same period, imports were worth 3.8 billion dollars, 16 percent more than in the first ten months of 1996. With a steady monthly increase, exports are growing at a higher rae than imports, whose growth rate has been steadily decreasing since the beginning of the year, but the absolute value of imports remains nearly twice as high as that of exports. This has resulted in a foreign trade deficit of 1.895 billion dollars, which should encourage a growth of production and exports as the imports consist mainly of raw materials and other inputs. Yugoslavia traded with 116 countries in the first ten months of 1997, but 85 percent of its trade was with European countries, mainly Italy, Germany, Macedonia and Russia. Yugoslavia imported mainly from Germany - to the value of 519 million dollars, and exported mainly to Italy - to the value of 224 million dollars.

Republika Srpska remains one of Yugoslavia's key foreign trade partners, with bilateral trade worth 555 million dollars. In the said period, Yugoslavia exported mainly fruit and vegetables, plastics for further processing, non ferrous metals, iron and steel, wood and cork products and clothing.

The imports consisted mainly of oil and oil products, yarn, cloth, textile products, minerals and scrap metal, fruit and vegetables, paper, cardboard and cellulose products. In October 1997 as against October 1996, exports were higher by 19 percent and imports by 13.2 percent.

[20] MOLDAVIAN PARLIAMENTARY DELEGATION IN YUGOSLAVIA

Tanjug, 1997-11-10

A delegation of the Yugoslav Federal Assembly, headed by the Speaker of the Chamber of Citizens, Milomir Minic, met on Monday with a delegation from the Parliament of the Republic of Moldavia, headed by Parliament Speaker Dumitru Mocpan. In open and friendly talks both sides said that Yugoslav- Moldavian relations are marked by a high degree of mutual respect and understanding, and that good parliamentary relations should be a stimulus for the further promotion of all forms of cooperation between the two countries. The two sides said that the signing of bilateral agreements would contribute to strengthening Yugoslav-Moldavian economic and other ties. The two delegations said that there exist huge possibilities for cooperation in the sphere of agriculture, the food, chemical, lumber and light industries, civil engineering, machine-building and transport, especially riverine and rail .Minic and the members of the Yugoslav parliamentary delegation informed the Moldavian delegation with the political events in this country, the work of the Federal Parliament, and Yugoslavia's priorities both in the domestic and international spheres. Minic also positively assessed the Moldavian Government's support to the people of Yugoslavia for the activation of Yugoslavia's rights in international organizations and institutions. The Moldavian parliamentarians underscored their country's special interest in establishing unimpeeded navigation on the Danube and strengthening cooperation between the countries of the Danube river basin region. The Moldavian Parliament Speaker extended an invitation for a delegation of the Yugoslav Federal Assembly to attend the session of the Parliamentary Assembly of Black Sea economic cooperation, to be held in Moldavia from 9-12 December, 1997.

[21] YUGOSLAV PRIME MINISTER RECEIVES MOLDOVAN PARLIAMENTARY DELEGATION

Tanjug, 1997-11-10

Yugoslav Prime Minister Radoje Kontic in Belgrade late on Monday received Moldovan Parliament Speaker Dimitru Mocpan, heading a parliamentary delegation on a visit to Yugoslavia.

The Moldovan parliamentary delegation is visiting Yugoslavia at the invitation of Yugoslav Parliament's Chamber of Citizens (Lower House) Speaker Milomir Minic. Kontic underscored that the traditional friendship between Yugoslavia and Moldova had not been disrupted even in the most difficult period in Yugoslavia's recent history when the country was labouring under an international blokade, the Yugoslav Information Secretariat said in a statement released after the meeting.

Kontic said he was satisfied with the fact that countries of the Black Sea region had been the first to officially launch an initiative to the United Nations to lift the sanctions against Yugoslavia.

He said there were significant prospects for bilateral cooperation, especially in the domain of agricultural and food-processing industries. He also said that Mocpan's visit would mark a beginning of stepping up the Yugoslav-Moldovan relations, particularly in the area of economic cooperation. Mocpan communicated to Kontic an invitation to visit Kishinev. He also invited Yugoslav businessmen to visit Moldova and contribute to boosting trade between the two countries. During a lengthy and cordial talk, the Moldovan delegation voiced interest in experiences of Yugoslav development and expressed their country's readiness to develop comprehensive bilateral cooperation.

[22] SERBIAN MINISTER: RAILWAY TRAFFIC WITH CROATIA ALSO VITAL FOR EUROPE

Tanjug, 1997-11-10

Serbian Transport and Communications Minister Svetolik Kostadinovic said on Monday that a restoration of railway traffic between Yugoslavia and Croatia, scheduled for Tuesday, was vital not only for the two contries but also for all Balkan countries and the entire Europe. Kostadinovic told Serbian Radio Television (RTS) that railway administrations of Italy, Switzerland, France, Germany, Romania and other countries had voiced interest in restoring railway traffic.

[23] PRESIDENT MILOSEVIC'S VISIT TO CHINA - HUGE IMPETUS FOR COOPERATION

Tanjug, 1997-11-10

Yugoslav President Slobodan Milosevic's visit to China and meetings at the highest level will give a huge impetus to the further development of economic relations, the Yugoslav Chamber of Commerce said today. Long-term cooperation of our economy with the economy of China is a serious Yugoslav interest on which we are working persistently, the statement said adding that the economy of the People's Republic of China has been developing strongly for several years, and its foreign trade is a very large. All contacts made so far indicate that the Chinese economy is interested in cooperation with the Yugoslav and other economies of the region.

"In view of economic cooperation realized and huge possibilities for its development, the Yugoslav Chamber of Commerce has proposed a large number of Yugoslav businessmen to take part at the time of the visit in economic talks, contacts and concrete business activities and contribute to the overall development of Yugoslav-Chinese cooperation," the statement said.

[24] YUGOSLAV PRESIDENT TO VISIT CHINA

Tanjug, 1997-11-10

Yugoslav President Slobodan Milosevic will pay an official visit to China on November 13-16, at the invitation of Chinese President Jiang Zemin. Milosevic will be accompanied by ranking state officials and a large number of Yugoslav businessmen. The statement announcing Milosevic's visit to China was simultaneously published in Peking on Monday.

[25] SERBIAN POWER COMPANY EPS AND GERMANY'S KRUPP SIGN 30-ML-DLR DEAL

Tanjug, 1997-11-09

A 30-million-dollar contract on business-technical cooperation was signed at the Yugoslav Chambre of Commerce on Sunday between the public Serbian electric power company JP EPS and the German company Krupp Fordertechnik (KF). The contract envisages 10-year business-technical cooperation in the production of parts and machine sets and instruments for mining equipment of the KF production programme. In the presence of Chambre President Mihailo Milojevic and German Ambassador to Yugoslavia Wilfried Grueber, the contract was signed by JP EPS Director General Slobodan Babic and KF Board of Managers President Herbert Wiedenheus. The cooperation will proceed through Yugoslav firms, including "Kolubara-Metali" of Lazarevac, "14 Oktobar" of Krusevac, "Gosa" of Smederevska Palanka, the "Lola" Corporation of Belgrade, the Machine Industry of Nis, and others. Pointing out the importance of the contract, which is renewable, Babic said home manufacturers would not compete with each other as they would apply KF marketing and engineering for the world market and also coproduce basic equipment, parts and components for third markets.

The contract also envisages purchases of spare parts and equipment for the JP EPS from KF, and those which KF does not manufacture, from other world renowned manufacturers, said Babic.

The financial side will be regulated through Yugoslav counter deliveries of goods and services, since the JP EPS does not have the necessary funds. Since the JP EPS needs major funds for promoting its capacities, such as, for instance, the construction of a power plant in Kosovo (two blocks of 350 megawatts each), Babic said his company had also discussed possibilities for purchasing equipment through Krupp and Siemens. He said high-level talks on this would continue. Underscoring the importance of the JP EPS during the difficult years of the international embargo against Yugoslavia, and for the country's development, JP EPS Board of Managers President Dragan Kostic said the Electric Power Industry was resolved to secure for its electric power and mining facilities the best possible equipment and production means.

Today's contract is a step in that direction, Kostic said. It is important that the KF realized the position of the power company, but also that they accepted the proposed contract concept with insight, as it is not only in the interests of the two companies, but the two economies and the two countries as well.

Wiedenheus described the contract as a continuation of the former cooperation with Yugoslav companies in this area, but also as a contract for the 21st century. He underscored the wish that relations between Yugoslavia and Germany grow and that closer cooperation between diplomats and businessmen lead to the renewal of the engagement of Germany's insurance company Hermes in Yugoslavia, which he said would enable and facilitate KF's investment activities in Yugoslavia. Privatization in Yugoslavia is definitely an interesting area for the German industry, said Wiedenheus. The German Ambassador and the Chambre President, as the host, underscored that this was a very useful contract which would doubtless contribute to future economic cooperation between the two countries. Milojevic underscored the fact that Yugoslav companies were able to become partners to such powerful manufacturers as Krupp, at home and on third markets. Grueber said he wished to demonstrate with his presence Germany's interest in developing and promoting economic cooperation with Yugoslavia.

[26] KRAJISNIK MEETS EU OFFICIALS

Tanjug, 1997-11-07

The Republika Srpska member of the Bosnia-Herzegovina Presidency Momcilo Krajisnik and Deputy Foreign Minister of the Bosnia-Herzegovina Council of Minister Dragan Bozanic received on Friday in Pale Huberton Virtoi, representative of Luxemburg which chairs the European Union, and Valeria Sluiter, permanent EU representative to Sarajevo. The meeting focused on the preparations for the forthcoming conference of the Bosnia Peace Implementation Council scheduled for December 10 in Bonn. Srpska representatives reiterated their wish to pass the laws on currency, travel documents and citizenship, Bozanic said after the meeting. He however noted that new issues were being constantly added to the list of those that must be resolved in line with the Dayton Agreement, as if though someone aimed to deepen the crisis.

Bozanic expressed hope that the Bonn conference would result in good proposals for the implementation of the Dayton agreement.

[27] YUGOSLAV DEPUTY PRIME MINISTER RECEIVES U.S. BUSINESSMAN

Tanjug, 1997-11-07

Yugoslav Deputy Prime Minister Nikola Sainovic received on Friday U.S. businessman and international law expert, Robert Hendry. Sainovic and Hendry, who has visited Yugoslavia's leading companies over the past few days as a guest of the Yugoslav Chamber of Commerce, discussed ways of how to promote Yugoslav-U.S. relations through direct contacts among the two countries' companies, said a statement released by the Yugoslav Information Secretariat. Also present was Yugoslav Chamber of Commerce President Mihailo Milojevic, the statement said.

[28] YUGOSLAVIA-ROMANIA

Tanjug, 1997-11-09

The recent Crete summit of leaders of south-eastern Europe has opened good prospects for the promotion of economic cooperaton between Yugoslavia and Romania, First Secretary for Economic Affairs of the Romanian Embassy in Belgrade Vasile Stefan has told Tanjug. Stefan said that possibilities for the development of the bilateral cooperation existed in all sectors of the two complementary economies, so that the annual value of trade was expected soon to reach and even exceed the level of 373.4 million dollars, attained in 1992, before international sanctions were introduced against Yugoslavia. The Danube offers wide possibilities for cooperation in the electrical power industry. The Yugoslavia-Romania Commission recently met in Belgrade to discuss the exploitation and maintenance of the joint Iron Gates I and Iron Gates II hydro-electric power and navigational systems. The Commission decided that after 25 years of joint work, the electrical power industries of the two countries continue to cooperate in the next century. Romania was among the first to sign with the Federal Republic of Yugoslavia a whole range of agreements conducive to the consolidation of good-neighbourly relations. Stefan singled out the inter-governmental agreement on economic cooperation, the agreements on the mutual stimulation and protection of investments, on the avoidance of dual taxation, on cooperation in tourism, agriculture and in other areas.

The value of Yugoslav-Romanian trade for the first nine months of this year stood at about 115 million dolars, Stefan set out and specified that the Romanian imports from Yugoslavia were worth 31 million and exports 83 million. The annual value of trade for this year is expected to stand at 160 million dollars, which would be 22.5 million less than last year, when Romania's imports from Yugoslavia amounted to 60.5 million and exports to 120 million. The chief reason for the drop in trade are difficulties encountered by the two economies and the inadequate use of production facilities. The liberalization of trade and privatization in both countries are to stimulate direct ties between their companies. The process has been initiated. The Yugoslav chemical complex of Pancevo signed last month a long-term contract with a Romanian partner, with the initial monthly value at 2.3 million dollars.

Major deals exist also in the agriculture, including the production of seed maize in Romania using Yugoslav technology.

Business contacts are organized by Chambers of Commerce, especially, regional ones, and they take place at fairs, specialized expositions and through other forms of cooperation. Twenty-two Yugoslav companies participate in the current agricultural exposition Indagra '97 in Bucharest. More than 50 Romanian companies participated in different Belgrade fairs last year, First Secretary of the Romanian embassy in Belgrade Stefan set out.

[29] STABLE ASSEMBLY IS GUARANTEE OF REPUBLIKA SRPSKA SURVIVAL

Tanjug, 1997-11-08

Republika Srpska Assembly Speaker Dragan Kalinic has urged voters to turn out in the upcoming elections and enable the constituting of a stable Assembly with a large majority.

"Only a strong Serb Parliament and Government can preserve Republika Srpska, because several scenarios for its partitioning, i.e. for the regionalization of Republika Srpska are at work," Kalinic said at a meeting of the local Serb Democratic Party (SDS) organization late on Friday.

He underscored the importance of the Agreement on Special and Parallel Ties between Republika Srpska and Yugoslavia and called for a stepped-up implementation of that agreement, since he set out it was the wish of the Serbian people on both sides of the Drina.

Kalinic stressed that the conflict between Pale and Banjaluka had artificially been created so that the state of the Serbian people would be divided into the eastern and western parts.

He said that the Nov. 22-23 parliamentary elections had been imposed so that as many political parties as possible would participate and the Serb electorate be broken up.

According to Kalinic, the new Assembly will hardly be able to function unless a single party has a majority, and noted that Republika Srpska President Biljana Plavsic was hoping it would not.

The Assembly speaker told the meeting that representatives of the international community had a mandate to stabilize the situation in Bosnia- Herzegovina and not to serve any of the sides there.

Kalinic drew attention to the highly unequal election-campaign position of the regions in Republika Srpska since the eastern part was still under a media blockade.

[30] PROTOCOL ON FOUNDING OF BEOFINEST SIGNED

Tanjug, 1997-11-07

Beobanka Bank and Finest, a financial institution for the promotion of economic cooperation with East European countries set up by the Italian Government, signed here today a protocol on the founding of a joint corporation Beofinest. The protocol was signed by Beobanka president Zlatan Perucic, Finest President Leonardo Simoneli and the Deputy Director of the Trieste Bank-SL Paolo Zanetti, in the presence of the Italian Ambassador to Belgrade Ricardo Sessa, representatives of the Yugoslav and Serbian governments, Chambers of Commerce and Yugoslav and Italian firms, interested in mutual cooperation. Beofinest is a financial institution through which Italian firms will invest capital in Yugoslav small and medium size enterprises, and the director will be an Italian, Sergo Genki.

Perucic said that the initiative for its founding was made at the time of sanctions and that the first results were expected by the end of this year. He added that the basic goal was that our enterprises receive foreign capital and access to the world market. Beofinest is a profit institution, and the profit made will be equally distributed between Yugoslav and Italian partners, who are equally represented in the Administration Council where decisions will be made by consensus.

Perucic said that Beobanka, which has 28,000 clients, has offered so far 30 projects worth over 100 million D marks. He said that Italian banks have also announced several credit lines with interest rates at the level of European Union commercial banks, so that for the first time after sanctions interest rates will not contain the Yugoslav risk factor. He recalled that Italy was Yugoslavia's second largest foreign trade partner, whose trade last year totaled 470 million dollars. Perucic pointed out that Yugoslavia had a very favorable position and legislation for foreign investmenats. Foreigners are able to found their own or mixed firms, to puchase existing enterprises or their shares, to dispose freely of the profit made, to reinvest it or repatariate it. Yugoslav Deputy Prime Minister Danko Djunic said that the Government supported the project, as it is interested in the development of small and medium size enterprises. The Government is creating an institutional framework and facilities for foreign investments, but will not interfere in the internal business policy of enterprises, Djunic said, noting that the formation of Beofinest was a good step towards the normalization of relations with international financial institutions. Yugoslav Foreign Trade Minister Borislav Vukovic said that in 18 months, 1, 800 contracts on foreign investments had been signed, with Italy ranking first in financial cooperation and second in the number of signed contracts. He added that trade with Italy, in the first nine months this year, had grown 50 percent and announced new facilities for foreign investments.

Serbian Minister for Ownership Transformation Milan Beko recalled that the Italian Government supported the integration of Yugoslavia into international financial processes. He assessed that it was good that Beofinest will take part in the financing of ownership tarnsformation. After signing the protocol, representatives of Yugoslav and Italian firms continued bilateral talks about concrete cooperation in the agricultural industry, wood-processing industry, textile industry, engineering and plastics.

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