Sofia, June 13 (BTA) - The cabinet today denied allegations by Amnesty International that Bulgaria secretly supplied arms to Rwanda. "Bulgaria has never broken its commitments and never supplied arms for the government or rebel forces in Rwanda," reads a declaration released by the cabinet press office and signed by Ivan Kolev, Deputy Chief of the Interdepartmental Council on the Military- Industrial Complex and Mobilization Readiness.
Quoting Amnesty International, international news agencies yesterday and today's press in Bulgaria publicized reports alleging that Bulgaria and Albania were involved in illegal supply of weapons and ammunitions to the former Rwandan army and the Hutu militias now based in Zaire.
This is not the first time that Bulgaria is implicated in allegations of arm supplies for terrorist organizations and regimes condemned by the international community, the declaration goes. It stresses that Bulgaria pursues a nationally responsible policy as regards arms trade. It goes on to say that this is a sensitive issue and this country will continue to stand by its national interests in full compliance with international norms.
Attempts to accuse this country of actions violating international rules, are being made by circles interested to see Bulgaria's defence industry crippled, says the document. "We will continue to pursue the cabinet's policy for stabilization of the national defence industry as a way to provide national security guarantees," Ivan Kolev says in the declaration.
Sofia, June 13 - Deputy Prime Minister and Minister of Foreign Economic Cooperation Kiril Tsochev and the Regional Governor of the region of Tumen in the Russian Federation Leonid Roketski signed here today a protocol for trade-economic and scientific-technical cooperation between the Tumen region and the Republic of Bulgaria.
The two parties agreed to cooperate in providing favourable economic, trade, financial and legal conditions for all types of economic activities, in creating possibilities for investment in both economies and formation of joint organisations and ventures as well as establishing direct contacts between the economic units of the Tumen region and Bulgaria. The signed document envisages also exchange of economic, scientific-technical and legal information, promotion of scientific-technical cooperation through development of joint projects and cooperation in tourism, recreation, environment protection, arts, culture and education.
The Tumen region yields 91 per cent of the Russian gas and 70 per cent of its oil, part of which it exports to Bulgaria, Mr Roketski emphasized. From Bulgaria Tumen imports fresh fruit and vegetables, wines, cigarettes and light industry articles. Tumen's Regional Governor identified the problems in the trade relations over the last few years and said that the signed agreement is a step to approchement and restoration of the traditional contacts between the two states.
This is a framework protocol, intended to establish direct contacts with regions in the Russian Federation with view to fostering the bilateral trade-economic relations in the context of the 16 agreements signed with Russian PM Viktor Chernomyrdin during his visit here, Minister Tsochev pointed out.
In addition to cooperation in oil and gas production and in the timber industry, the protocol envisages the establishment of joint ventures for the production of cigarettes, wines, pharmaceuticals, cosmetics. The two parties shared a common view that the problem with preferential customs duties needs settling, Kiril Tsochev said. He recalled that after the introduction of higher customs duties, commercial exchange between Bulgaria and the Russian Federation dropped from 14,000 million US dollars in 1990 to 1,800 million US dollars. The two parties will strive, through new forms of trade liberalization, including joint ventures and preferential duties, to multiply the commercial exchange.
Sofia, June 13 (BTA) - Bulgarian Foreign Minister Georgi Pirinski, who is paying his first official visit to Croatia, met Croatian Deputy Prime Minister and Minister of Foreign Affairs Mate Granic today. The two discussed the situation in the Balkans, stressing the efforts of the two countries to find a peaceful, just and lasting solution to the Yugoconflict on the basis of political negotiations, Nikolai Karakolev, political counselor at the Bulgarian Embassy in Zagreb told the National TV.
The sides further reviewed the bilateral relaions in all spheres. They signed an intergovernmental agreement on cooperation in culture, science and education and initialled an interstate accord on friendship and cooperation to be signed at a meeting of the two countries' Heads of State.
The Bulgarian Foreign Minister was also received by Prime Minister Nikica Valentic and met Djako Domljan, deputy parliament speaker and chairman of the parliamentary committee on foreign policy. Later this evening Pirinski will meet Croatian President Franjo Tudjman.
Sofia, June 13 (BTA) - The PHARE programme has extended ECU 30,000 for the repair of facilities in the Magura cave near Vidin (Northwestern Bulgaria). There are a number of unique paintings on the walls in one of the cave's halls, which are included in UNESCO's world heritage protection list. After the overhaul in October, the Magura cave will meet its first foreign admirers, "Troud" writes.
The Record Enterprise in Plovdiv (Southern Bulgaria) signed a contract for the export of 110 electric load trucks to Romania, "Troud" writes. The company has two service stations in Bucharest and rasov.
The largest Bulgarian Oil Refinery Neftochim, and the largest Russian Oil Company Rosneft have agreed to set up a joint venture for oil drilling and processing, "Standart News" writes, quoting a news release from the Neftochim. The decision was taken during the visit of Neftochim's executive directors Stefan Nedelchev and Atanas Zayikov in Moscow, the paper writes.
The German company GEGA Solingen has offered to finance the quality certification of the gas cylinders, produced by the Military Machine Building Works in Sopot, "Pari" writes. TUV is an organization, authorized by the EU to issue signs to products, guaranteing that they are safe and friently to environment. Since the Sopot plant has financial hurdles, Solingen's offer will give the go-ahead to its products on the European market.
Sofia, June 13 (BTA) - Bulgaria has made progress over the past five years but its potential has not been properly used, outgoing World Bank Resident Representative in Bulgaria John Wilton told a news conference here today. Bulgaria has an enormous potential for speedy economic growth and job creation, but it has been under-utilized, Wilton said.
The World Bank mission to Bulgaria, which ended its work last week, established that so far Bulgaria has utilized 5 to 6 per cent of the loans extended to it by the World Bank as against an average of 12 to 14 per cent achieved by other countries, Wilton said. The mission sought to review the World Bank's portfolio and projects for Bulgaria, to familiarize itself with the new cabinet's priorities, and to discuss some moot points with the cabinet. According to Wilton, the Socialist cabinet has had enough time to formulate a clear stand on the World Bank's projects for and mission to Bulgaria since it took office on January 25, 1995.
So far the World Bank has extended to Bulgaria four types of loan: implemented/under implementation, totalling US$ 570 million; negotiated but not ratified, totalling US$ 148 million; appraised but awaiting mandate for negotiations, totalling US$ 201 million; under preparation, with an estimated total ranging from US$ 150 million to US$ 300 million. Most loans of the type have been fully extended and are being utilized. These are: the Structural Adjustment Loan (SAL), totalling US$ 250 million, disbursed in two tranches - US$ 150 million in 1992 and US$ 100 million at the end of 1994; Technical Assistance Loan (TAL), totalling US$ 17 million; Energy 1, totalling US$ 93 million; Telecommunications Loan, totalling US$ 340 million, distributed among the World Bank, the European Bank for Reconstruction and Development, the European Investment Bank, and the Bulgarian Telecommunications Company; Private Investment and Export Finance, totalling US$ 55 million; Debts and Debt Service Reduction Loan, totalling US$ 125 million; Agricultural Development Project, totalling US$ 82 million, Wilton said.
Bulgaria has not signed the project for a Water Companies Restructuring and Modernization Loan, approved in August 1994. Due to a change in priorities on the part of the Ministry of Education, Science and Technology, the new cabinet is not interested in a US$ 103 million loan under the Education Project, Wilton said. Now the Bulgarian side insists that more attention be paid to university and postgraduate education. The position of the World Bank is that this narrows the scope of the project, leaving out primary and secondary education, Wilton said. The Bulgarian cabinet agreed on a Health Project worth US$ 52 million and a Railways Rehabilitation Project worth US$ 298 million, which are expected to be launched soon.
The upcoming projects proposed by the World Bank for implementation in Bulgaria are focused on the financial and enterprise sector, social protection and employment, environmental protection, irrigation, energy, and district heating. Negotiations will continue for the US$ 150 million Financial and Enterprise Sector Adjustment Loan (FESAL), to be co-financed by the Japanese Eximbank. There still are some differences between the Bulgarian cabinet and the World Bank over the signing of the loan agreement. Many structural reforms, supported by the World Bank through FESAL, are critical to the maintaining of macroeconomic stability, Wilton said. In his view, FESAL is very important for Bulgaria as it maintains its macroeconomic stability. The loan targets privatization, the financial sector adjustment and the financial discipline of state-owned enterprises.
Answering a question, Wilton said that electricity prices in Bulgaria are unrealistically low. Under pressure by the cabinet, the National Electricity Company sells electricity at prices much lower than production costs. The World Bank insists that the price of electricity be set at 3.5 cents/kWh. (The current price is 1.9 cents/kWh.) Speaking to journalists last week, Deputy Prime Minister and Minister of Trade and Foreign Economic Cooperation Kiril Tsochev stated categorically that electricity could be marked up in the spring of 1996. According to Wilton, low electricity prices are a subsidy to industry. Bulgaria's economy is one of the world's most energy-intensive economies.
Answering another question, Wilton said that the World Bank has proposed to the Bulgarian cabinet a number of projects for the protection of socially disadvantaged people. In his view, the pricing system in Bulgaria does not protect them.
The new World Bank Mission Leader to Bulgaria, Mr Alberto Musalem, was introduced at the news conference. He is to take office after John Wilton leaves Bulgaria in late June.
Sofia, June 13 (BTA) - Bulgaria received a 2 million Swiss Francs dividend as a shareholder of the Basel- based Bank for International Settlements (BIS), Bulgarian central bank Governor Todor Vulchev said upon returning from Switzerland. He was there to attend the BIS annual meeting.
Bulgaria became a BIS shareholder in 1930 with 8,000 of total of 480,000 BIS shares, making up a 1.9% interest. Each share this year brought a dividend of 250 Swiss Francs. The BIS keeps 153,000 troy ounces of Bulgarian gold without paying an interest on them. The bulk of the national gold reserves, some 1,200,000 troy ounces, is kept in this country, said Todor Vulchev.
At the BIS meeting, the European Bank for Reconstruction and Development (EBRD) was inquisitive about the joint actions of the National Bank of Bulgaria (BNB) and the cabinet in connection with the EBRD annual meeting in 1996 to be held in Sofia. The EBRD also voiced plans to offer its securities on Bulgaria's financial market and showed interest in the laws regulating the trade in securities on the domestic stock exchanges.
The governors of the Bulgarian and Greek central banks had a meeting off the agenda of the BIS annual meeting, to discuss the activity of Greek banks on the financial markets in Bulgaria. Todor Vulchev said that the BNB Governing Board sees as frivolous and groundless the statement of Ventsislav Antonov, deputy chair of the Board of Directors of Bulbank (the Bulgarian Foreign Trade Bank), on Greek banks operating in Bulgaria.
At the Seventh National Banking Meeting held on May 29-31, 1995, Antonov said that granting full licences to Greek banks (the Greek central bank, the Ionian Bank and Xiosbank) might threaten Bulgaria's national security. Antonov further said that the operation of Greek banks on this country's financial market might lead to capital drain from Bulgaria.
Vulchev said he and his Greek counterpart were unanimous that the presence of Greek banks in Bulgaria creates no problems in the relations between the two countries and their central banks. The Governor of the Greek central bank, Loukas Papadimos, reportedly voiced a readiness to make room for Bulgarian banks on the Greek financial market. First Private Bank is the only Bulgarian bank that has asked a permission to open its branch in Greece, said Vulchev. He believes the Greek side insists that the principle of reciprocity is applied.
The BIS Director General will visit Bulgaria on June 15, said the BNB Governor. The visit's agenda includes a number of meetings with senior government officials.
Sofia, June 13 (Tanya Tsekova of BTA) - During the three years of research and negotiations between the Sofia Municipal Council and the French Saur International company, the project for management and modernization of the city's water-supply system made no progress, while water-rationing was introduced in Sofia in November 1994. Water is being cut off for two in every three days in half of the city, and hot water was cut off entirely in the other half as a saving measure because of the diminishing water volume in the Iskur Dam, Sofia's main water source.
Saur International project manager Daniel Gradeck told a news conference here today that the project-feasibility stage was completed only a couple of days ago and that its implementation will get under way during the summer, or in September at the latest. Gradeck said further that the project was approved at a session of the Sofia Municipal Council in early December 1994, and that a contract will have to be signed.
A press release issued by the Sofia Municipal Council yesterday, however, cast doubts about whether such a contract will be signed at all. "For over a month now the French Saur International company has been examining and holding up the documents submitted to it in connection with the establishment of a Sofia Waters joint venture to maintain and operate the city's water mains," the press release reads. It goes on to explain that Sofia Municipal Council insists it hold a 51 per cent stake in the future joint venture, and an 18-year term of operation, while Saur International wants a 51 per cent stake in the joint venture and a 30-year term of operation. The Sofia Municipal Council, however, decided to approach another company, the French Generale des eaux, which accepted its terms. Sofia Mayor Alexander Yanchoulev signed a partnership agreement with Generale des eaux and submitted it for a discussion by the Municipal Council, the press release reads. Yanchoulev says that Generale des eaux is ready to float a US$ 10-million loan to finance the replacement of Sofia's water mains, to the joint venture at extremely favourable terms.
Sofia Municipal Council signed a similar partnership agreement with Saur International already in April 1992, which enabled the two parties to conduct their research and negotiations in the past three years, a Saur representative told a BTA reporter. The company has gathered a total of 7,000 pages of information on Sofia's water-supply system.
A communique which the Saur company issued to BTA says that the firm had warned the authorities about the imminent water crisis already in July 1992, and offered grant aid in the form of equipment and experts so as to avert the crisis. The communique says further that the new project for management of Sofia water supply, put forward by Yanchoulev, is vague and its implementation would triple water prices.
The water volume of the Iskur Dam dropped to 50 million cu m in January and February. Its maximum volume is 500 million cu m, while the minimum level set for sanitary purposes is 90 million cu m. Water rationing was introduced last November in uptown Sofia on a 18 hours on - 56 hours off basis. Water from the spring snow-melting began to fill the dam so that it has now reached 170 million cu m. This enabled Sofia municipal authorities to alleviate water rationing to an 18 hours on - 30 hours off scheme, and to even consider its lifting in July and August. Sofia's water mains are in disrepair; leaks and breakdowns are a common occurrence.
Sofia, June 13 (Andrei Sharkov of BTA) - The three-day North Atlantic Assembly Rose-Roth Conference on "Regional Stability and Security: The Bulgarian View", which ended here today, can be described as constructive, useful and successful. This is how Ivan Gaitandjiev, Chairman of the Bulgarian delegation to NAA, summed up the views of the participants in the forum co-organized by the Bulgarian Parliament.
The European Union should consider the question of compensating certain European countries for damage resulting from the enforcement of the UN sanctions against Yugoslavia. This was stated in a resolution by the leader of the German Social Democratic Party, said NAA President Karsten Voigt, a deputy of the Bundestag. He said that Germany and Bulgaria have a long tradition of good relations and stressed the need to develop cooperation in Europe and put an end to the old rivalries among the states.
The European states, and especially the Balkan states, should pool their efforts to prevent a spillover of the conflict in former Yugoslavia, said Voigt. Rose-Roth Conferences play a major role in this respect, being an important form of familiarizing politicians with military matters, he said. Faults and omissions could be found with any country, including NATO member states, which makes friendly discussions like the one in Sofia useful for everyone, Karsten Voigt said.
Civilian experts should get training in military matters as part of defence culture, Voigt said. (In 1994 a centre for the training of civilian army personnel and military training of civilian specialists was set up in Sofia, which has been working together with the Rakovski Military Academy.)
Voigt highly praised Bulgaria's treaties with Turkey and Greece and its relations with Romania and Russia, and approved its recognition of Macedonia. Any country joining NATO should have good relations with Russia, the NAA President said. In case NATO is enlarged, its new members should have good relations with their neighbours, more specifically with NATO member states. Answering a question, Voigt said that NATO's new members should not be forced to deploy foreign troops or nuclear weapons on their territory.
The strengthening of Balkan peace, security and stability is among the top foreign policy priorities of Bulgarian Parliament, Chairman Blagovest Sendov told the conference. He highlighted the steps taken by the last three parliaments towards Bulgaria's accession to the European and Euro-Atlantic structures.
Bulgaria's integration into united Europe is underpinned by the legislature, whose main task is the approximation of Bulgarian legislation to community law, Sendov said. Parliament is promoting the cause of Balkan security and stability by formulating Bulgaria's defence policy and its views on the conflict in former Yugoslavia, as well as through parliamentary diplomacy within international organizations, Sendov said.
"I am convinced that in the foreseeable future, after talks between the Democratic Left [the ruling Socialist Party and its coalition partners] and the opposition, Bulgaria will be able to state clearly its position on NATO membership," Sendov said answering a question. He said he was in favour of a broad public discussion of this question.
Bulgaria's participation in the Partnership for Peace plan is good for the democratic processes in the army. It is an important prerequisite for confidence and security building in the Balkans, Colonel General Tsvetan Totomirov, Chief of the Bulgarian General Staff, told the conference. He said that the first stage of the reform of the armed forces had been accomplished. Parliamentary civilian control over the armed forces, structural reform, the ban on party affiliation and depoliticization have all materialized, General Totomirov said. He emphasized that the army's high approval rating helped it project the image of a mainstay of national security and regional stability.
General Totomirov pointed out that the international military exercises involving Bulgaria under the Partnership for Peace scheme, which started in 1994, strengthen the Bulgarian army and national security. Regional security has grown thanks to Bulgaria's military cooperation with its neighbours, as well as with NATO members and other countries, General Totomirov said.
At a meeting with Sendov later today, Voigt highly praised Bulgaria for being neutral, for enforcing the UN sanctions and being a factor of stability in the Balkans.
Voigt advised Bulgaria to submit a report to the North Atlantic Assembly on the way its armed forces are controlled and the forthcoming passage of a Defence and Armed Forces Act. He said that such a report would be met with considerable interest and would be discussed at the Assembly's next meeting.
Voigt recommended that Bulgaria should come up with a parliamentary initiative and win over all countries in the region to it, and pledged the Assembly's support and participation in it.