MAK-NEWS 26/12/95

From: "M.I.L.S." <mils@ITL.MK>

Macedonian Information Liaison Service Directory

CONTENTS

MILS NEWS

Skopje, 26 December, 1995

[01] CORRIDORS CROSSROADS OF GREAT IMPORTANCE FOR MACEDONIA

Macedonian Foreign Affairs Minister Stevo Crvenkovski, in his interview for the Macedonian Radio, informed about the relations of Macedonia with foreign countries, with a special attention to the relations in the region after Paris Peace Agreement was signed, emphasizing the following:

'During defining the mandate of EU for an Agreement for Cooperation and Trade with Republic of Macedonia, Greece promoted some positive elements regarding the Agreement, as it is interested to improve the cooperation with Macedonia through the EU, as well. We must not, however, succumb to such instant political moods, especially considering Macedonian traffic connections. It was of great importance for us during the last several years to promote the East- West Corridor on an international level, but I always emphasized the North-South Corridor should by no means be neglected. This might be the right time to say the opposite, i.e. that we must not neglect the East-West now when the North-South will begin to function normally. Only in case the crossroads of these two corridors remain in the Republic of Macedonia, we will be able to take advantage of our geographic position in the best possible way. We must further insist on the development of the traffic to and from Burgas and Dures, the latter being very perspective for the whole region.'

[02] KOHA JONE: MACEDONIAN - ALBANIAN RELATIONS COLDER

Albanian daily 'Koha Jone' informs about the colder relations between Macedonia and Albania, due to the dispute on the issue of 'Tetovo University' between the Albanian President Sali Berisha and Macedonian President Kiro Gligorov, expressed on an unofficial meeting in Budapest.

This resulted in reduced visits of delegations of both countries. According to 'Nova Makedonija', the Albanian daily further supports this with the information that only one Macedonian Minister (of Agriculture) visited Albania in 1995, while Macedonia was visited by the Albanian Industry Minister, Foreign Affairs Minister and the Vice-President of the Albanian Government.

Albanian Director of the Administration of Foreign Affairs Ministry, Ekrem Meta, confirmed that the relations between the two countries are not too friendly, adding that a great deal of the cooperation needed has not been realized. Meta pointed out that Macedonian party insists on the name 'Republic of Macedonia' to be put on all documents, while Albania recognizes it as 'Former Yugoslav Republic of Macedonia'.

'Our neighbour will solve the name problem soon, but will that be the end of the technical problems?', the article concludes.

[03] US MEDIATION IN THE NEGOTIATIONS BETWEEN BELGRADE AND THE

ALBANIANS ON KOSOVO Senators Robert Doll and John Philip required from the American Secretary of State Warren Christopher that the US Administration mediates the negotiations between Belgrade and the Albanians in Kosovo. According to the Albanian media, the senators asked this after their meeting with the leader of the Albanians in Kosovo, Ibrahim Rugova, in New York. They suggested the same mediating model as the one in the Macedonian - Greek dispute to be used. The senators warned Christopher that the crisis in former Yugoslavia began and, therefore, can be ended only in Kosovo, A-1 Television reported.

[04] SIX CANDIDATES IN THE SECOND VOTING ROUND

State Electoral Commission held a session yesterday and reported the official results of the first voting round in the electoral unit 114 in Skopje. The Candidate of the Party for Emancipation of Gypsies (PCER), Avdi Bajram is on the first position, with 65 votes more than the candidate of the Alliance for Macedonia, Vasil Drvoshanov. In the second voting round, scheduled for 7 January 1996, entered, as well, Dzemail Baftii of PDPA, the independent candidate Todor Petrov, the leader of VMRO - DP Vladimir Golubovski and Krste Jankovski, candidate of three parties: Labour Party, VMRO- MNDS and National Party of Macedonia. 45, 38 percent of the listed 13. 540 voters participated in the first round of the elections, and there are no notifications for official objections.

The Citizens Alliance of Macedonia estimated the elections as democratic and fair, except for the polling places 36 and 37 in the local community 'Nikola Karev', where a propaganda material was allotted, and where an open agitation was performed. The Alliance suggested the votes of these two polling place, where Avdi Bajram collected most of the votes, to be considered invalid.

[05] MACROECONOMIC POLICY FOR THE NEXT YEAR ADOPTED

Macedonian Government discussed and adopted the macroeconomic policy of Macedonia for 1996 on its session yesterday. It was estimated the economy will function in more favourable conditions, with larger number of private and privatized enterprises, which should improve its quality. The economy legislation should be completed in the first half of the next year with the Trade Associations Law, laws for public enterprises, denationalization, state administration and Custom Taxes Law. The Government also adopted the suggestion for Warranties Law to be brought, in accordance with the loan approved by the European Bank to Macedonia.

[06] HIGHEST SALARIES IN THE FINANCE AND SERVICES SECTORS

Macedonian Statistics Institute reported the average salary for October was 8.755 denars. The average in the production sector was 8.503 denars, and 9.453 denars in public sector.

Compared to the same month last year, these figures have increased for 6 percent, and compared to the salaries in September this year, they have reduced for the average 0,1 percent. The highest average salaries are received by the employees in the financial, technical and other services, of 12.640 denars in October. The civil engineering sector is at the bottom with average salary of 6.745 denars.

According to the report, 20,1 percent of the workers in Macedonia had not received their October salaries, 25,2 percent of which in the production sector, and 3,9 in other sectors.

[07] NO REPLY TO THE REQUIREMENTS

The workers of 'Chik' - Kumanovo, one of the enterprises with greatest losses in Macedonia, who have been striking with hunger for 22 days already, entered the City Council yesterday and interrupted the regular session of the Council. One of the strikers, obviously exhausted from hunger, fainted, and a medical team was called to help him.

Members of the Council, after explaining they were not authorized to discuss about their demands, asked from the Government to send its representatives immediately, who will inform the workers whether their demands can or can not be fulfilled. According to Macedonian radio, nobody from the Government appeared, nor there were any notifications that could happen later.

These workers were later joined by workers of other such enterprises in the country. The requirements of 60.000 workers of enterprises with greatest losses in Macedonia are: to legalize their status, to provide material and social insurance until their next employment or retirement, and payment of the last three months salaries.

MILS SUPPLEMENT:

[08] EIGHT SUGGESTIONS TO THE GOVERNMENT

(Nova Makedonija, 25 December 1995)

Macedonian economy should work in much better conditions during the next year, due to the relaxed external factors and the established monetary stability of the country.

Whether the economy will be able to take advantage of this situation, was a subject of a complete analysis made by Macedonian Chamber of Commerce, traditionally presented at the end of each year.

The economy measured its strength through examining current situation and macroeconomic results from 1995, to identify the possible 'narrow passages' in the next year.

And the situation is not favourable, says the Chaber of Commerce: the start is with a new GNP decrease of 3,3 percent, a half smaller value than six years earlier. The industrial production has decreased for more than 7 percent, and production in general for additional 12,2 percent this year, coming to the level of using 30 percent of its capacities in 1990, for example. What is increasing is the unemployment, as well as the number of people who do not receive their salaries regularly (this is the situation in 43 percent of enterprises - almost a half). This year will be ended with a deficit of 400 million dollars, according to the analysis of the Chamber of Commerce, which is a direct consequence of the most infavourable situation in the export economy. 80 percent of the social reproduction depends on the export, and it was managed only 18,2 percent to be exported, while 75,5 income came from the domestic market.

It is obvious that the ability of domestic economy to compete has significantly decreased, especially on the west European markets, and 50 percent of the exchange was performed on the near-by markets.

If the reasons for negative trends are located in the domestic economy situation, the first to feel a stroke is the exchange rates disparity of 148 percent, cumulated for two years, and which was recompensed neither by fiscal effects of increased import expences, nor by decreased export stimulations of 1 percent. The enterprises will start the new year with a debt of about 4,4 million denars and with more than 7000 enlistings for great losses of 3300 enterprises with 53000 employees.

Banking sector is unable to follow the economy, due both to its own unliquidity and unfinished restructuring, and to the expensive capital unacceptable for the economy. On the other hand, the mutual 'gray' crediting of the 'rich' enterprises, with much higher interest rates, is very common. Taxes and other expences are constantly increasing, in contrast with the decreasing of the salaries and of the income of the enterprises.

All the above mentioned initiated the Chamber of Commerce to make a list of eight concrete suggestions to the Government, i.e. to the mecroeconomic policy, to revive the production and, above all, the export.

The economic policy should include: programs for export centres which will be stimulated, programs for introduction of ISO 9000 quality standards in small and medium enterprises, effective usage of foreign credits (especially in the reconstruction of Bosnia and Herzegovina) etc. Foreign financial help plus reserves of the country are to be intended for export and profitable companies. It is required the interest rates to be decreased. To aleviate the economy, it is asked credit debts from the past to be re- programed and tax expences to be reduced. A new more effective model of social policy separated from the enterprises would also contribute. Restructuring processes including banks and privatization should also be completed.

And finally, it is suggested that the Government re-examines the restrictive monetary policy and creates a strategy for economical relations with foreign countries.

(end)

mils news 26 December 1995