MILS NEWS 16/01/96

From: MILS <mils@MILS.SPIC.ORG.MK>

Macedonian Information Liaison Service Directory

CONTENTS

MILS NEWS

Skopje, 16 January 1996

[01] MACEDONIA AND SLOVENIA ARE LOOKING INTO FUTURE

Relations between Slovenia and Macedonia are well developed and friendly, but there is a need to define certain economy issues. This was said on yesterday's talks between Slovenian President Milan Kuchan and his host, Macedonian President Kiro Gligorov, in Skopje. The meeting was held in a cordial atmosphere and was attended by Macedonian Foreign Minister Stevo Crvenkovski, as well as by the Ambassadors of the two countries, Iozhitza Puhar and Dimitar Mirchev.

On the press conference, held after the meeting, Gligorov informed that Slovenia is the fourth country in the trade exchange with Macedonia, and that the current agreements for cooperation need to be expanded in future. Macedonia and Slovenia have European orientation and one of the steps towards it is the agreement for duty free exchange between the two countries. 'Although Macedonia is less developed than Slovenia, which is a serious problem, my opinion is that by a gradual realization of the agreement till the year 2 000 a real duty free exchange will be achieved.' - said President Gligorov.

Gligorov also stressed the issue of the succession of former SFRY, emphasizing the mutual stand of the two countries that they can not be qualified as secessionists, since SFRY dissolved as a country, which makes all its republics successors of the former Federation.

Slovenian President Kuchan said that Macedonia is the seventh foreign trade partner of Slovenia and pointed out the problems of double taxation, investments protection and unbalanced mutual trade. Kuchan also emphasized the open issues of the free-trade agreement of the two countries, and announced the visit of Slovenian Premiere Ianez Drnovshek to Macedonia in recent future, when these problems should be further discussed.

Meanwhile, a delegation of the Macedonian Ministry of Transport, led by Minister Dimitar Buzleski, left for Slovenia today, where a treaty on the traffic regulation between the two countries is expected to be signed.

[02] DIPLOMATIC BRIEFS

- Macedonian Prime Minister, Branko Crvenkovski received yesterday Japanese PM, Kioshi Mizuno, and discussed the current situation in Macedonia and the region, as well as the need to improve the economical, political and cultural cooperation between the two countries. Crvenkovski expressed his gratitude for the significant support of Japan to Macedonia, and Mizuno said this support will continue in future, but stressed the need for better informing of the Japanese people and companies about Macedonia.

Mr. Kioshi Mizuno also met with Macedonian Minister without portfolio, d-r Ljube Trpevski. During the discussion, it was required from Macedonian Government to establish the priorities in the mutual cooperation, which would contribute in more active Japanese participation in financing projects in Macedonia.

- The new Ambassador of Portugal to Macedonia, Hector Maia de Silva, yesterday handed the copies of the credentials to Macedonian Foreign Minister Stevo Crvenkovski. The Ambassador promised that Portugal will completely support Macedonia in its integration in European institutions.

- Macedonian Ambassador to Lithuania, Tihomir Ilievski, met with Lithuanian President Aligridis Brazauskas and Lithuanian Foreign Affairs Minister, Povilas Gilis. The main subject of the discussions were the relations of Macedonia and Lithuania with EU and NATO, as well as the plans for complete integration of the two countries in these organizations.

[03] 'TO VIMA' - ATHENS ACCEPTS THE NAME WITH THE TERM 'MACEDONIA'

Greek daily 'To Vima', informed A-1 Television yesterday, claims that Greece has agreed to accept a complex name of the northern neighbour, which would include the term 'Macedonia'. According to 'To Vima', this brave decision was brought by the Greek Chief of Diplomacy, Carolos Papoulias.

The final decision of Athens will, however, depend on the attitude of the other party involved in the issue, concludes the paper.

Agency 'Makfax' reported yesterday that a book with a title 'Behind a Closed Door', by the journalist Alexandros Tarkas, was introduced in Athens, recently. The book writes that Serb President, Slobodan Miloshevich, offered to Greece to divide Macedonia between them, which Greece refused. This was secretly suggested to the Greek Foreign Minister Samaras ,at that time, and Preme Minister Micotakis promised he would consider it. However, Micotakis revealed Miloshevich's plan in 1992 during his discussion with the German officials in Bonn.

Meanwhile, the Liaison Office of the Hellenic Republic in Skopje announced the hosting of the flag at the premises in Skopje for Wendnesday, January 17, despite yesterdays resignation of the Prime Minister Andreas Papandreou.

[04] THE INVESTIGATION HAS MADE A SMALL PROGRESS?

According to the daily 'Vecer', weekend-raids of the Macedonian police for discovering the assassins of President Gligorov, did give some results, as the citizens said that persons who deal with metal processing and metal products were looked for. Identical samples of the sand which was used in the car-bomb were also found and sent to Germany for analysis.

[05] GOVERNMENT BRIEFS

On its yesterday's Macedonian Government discussed the activities concerning transformation of the enterprises with social capital and the problems in realizing the Law on Privatization. It was concluded that the Agency for Privatization should prepare a complete report till the end of this month, with special attention on the privatization process of the bankruptcy enterprises and the system of controlling the 'minority shares'.

Government was informed on the activities concerning the economical cooperation with Slovenia, and adopted the agreement on establishing a free trade between the two countries till the year of 2 000.

The report on the regulated citizenship of Macedonian citizens, prepared by the Internal Affairs Ministry, was also discussed. Till 18 December 1995, 1 785 515 persons have regulated their citizenship status, i.e. 93.8 percent of the 1 647 299 mature citizens.

[06] NO CONCRETE ATTITUDES OF THE LIBERALS

Secretary General of the Socialdemocratic Alliance of Macedonia (SDSM), Ljupcho Popovski, in his statement for Macedonian and A-1 TV, regarding the disputes inside the Alliance for Macedonia, said: 'Honestly, we expected that Liberal Party will express more concrete attitudes about all which was said by Premiere Crvenkovski, especially concerning the present and future attitudes of the Liberals considering the government and party coalition. Their support to the announced reconstruction of the Government was connected to some analysis of the economical policy of the Government in the past period, which does not have a real connection with the reconstruction itself. Presidency and the Central Board of SDSM will further analyze current relations in the Coalition, and in two weeks time will decide on their attitudes concerning the reconstruction.'

Unofficially, today's 'Vecer' reports that present Internal Affairs Minister, Ljubomir Frchkovski is expected to become a Chief of the Diplomacy, while present Foreign Minister, the Liberal Stevo Crvenkovski will join SDSM. Three other Ministers, according to these rumours, will also be released from duty: Minister of Culture, Eshref Alliu, Minister of Economy, Risto Ivanov, and Minister of Finances, Jane Miljoski.

MILS SUPPLEMENT:

[07] HOW TO REACH THE END OF THE TUNNEL?

('Nova Makedonija', 13 January 1996)

Skopje, 16 January 1996

According to some estimations, during the last year in Macedonia were invested over 200 million US$, in the infrastructure, various equipment, raw materials and spare parts. Official statistical data about this will be published two years later, but according to many sources this figure is accurate. Although the sum is obviously not too large, without it Macedonia would not have been in a position to enter greater investments and to escape from the several years crisis. This was the reason why the main task of the Government during the last year was to intensify the process of starting new investments, both in the public and in the private sectors.

The investments in 1995 continued from 1994, when some bigger construction projects were commenced, such as: hydroelectric power station 'Koziak', railroad track to Bulgaria, the highway Titov Veles - Prilep through Babuna mountain, all with a complete value of over 334 million US $. Further investments were made in: telecommunications and PTT services, air traffic, reconstruction of some local roads, the new power station 'Lisiche', gas line project and other smaller project in the areas of energy and waterworks. The observation of the most expensive investments - the railroad of 120 million US$, the power station 'Koziak' of 104 million US$, the highway Titov Veles-Prilep of 110 million US$, showed that only the construction of 'Koziak' more successfully follows the planned dynamics of the activities.

Of the 22.6 million US$ agreed to be spent in the work till November last year, only 15.5 million were spent. The so- called 'project of the century', the railroad track to Bulgaria, is now estimated to cost double more than the initially planned. The reasons for this are many disagreements between Macedonian Railways and the constructors, as well as to the drastically reduced speed of the building. Due to the prolonged term, this track will be ready to use at the end of 1998, instead at the middle of this year, as it was planned initially. The opening of the traffic corridor north-south, certainly, influenced this.

The construction of the Titov Veles-Prilep highway has progressed only to 100 meters of its length, which is hardly worth mentioning.

The gas line will not be more seriously used by the clients till spring, due to the delay in the preparations and necessary adaptations. As for the power station 'Lisiche', it has been built for eight years already, and the lack of a serious financial feasibility does not guarantee its completion in ten years.

Despite all the above mentioned, some positive effects are appearing, starting from the basic construction of all these objects. Namely, civil engineering enterprises and those connected with their work will be engaged in the projects, which is optimistic.

There are opinions that the problems listed are a signal to reconsider all these and further investments, because of the lack of funds. This can be illustrated with the fact that no foreign financial help will be provided for the three greatest investments - the railroad, the power station 'Koziak' and the highway Titov Veles-Prilep, although it was expected initially.

As for the credits, loans and foreign funds, rather common opinion is that they are far from a success for Macedonia, and are a threat that the country might inherit the previous Yugoslavian syndrome of too much debts. At this moment, Macedonia owes more than 3 billion US$, comprised of over one billion US$ foreign debt, about another one billion debt to the domestic bank savings clients plus the new investments and loans. To put it in other words, each citizen of Macedonia owes around 1 500 US$.

Therefore, Macedonia should be more cautious about the new loans, not only because our successors will have to pay the debts and the high interests, but also because it may end the hopes for a better future of this country. The Government should discover the most successful formula to solve these problems, and to carefully create new strategies, such as the Strategy for Development of Macedonia till 2 020. This Strategy was confided to Macedonian Academy of Science and Arts as the highest expert institution, and Government will form a committee for coordination. The project should be completed till the end of 1997, which is a long period to survive.

Macedonia will have to follow the experiences of other eastern European countries that give advantage to direct foreign investments. The latter are the most favorable instruments in the process of transformation into market economy. They should bring to a modernization of the out of date production and to a development of the public sector, as well as to strengthening of the infrastructure. All this could encourage bank saving of the citizens, which would create new sources to invest in various development projects. The advantage of direct investments is that capital transfer usually means transfer of the western technology and development of certain forms of management.

At the moment, Macedonia is far from being a desirable partner for such investments, as it is at the bottom of the listed countries desirable to invest in. It has slipped to 150th position from the previous 115th, which clearly shows how much the potential investors are not stimulated by various negative factors. Lifting of the blockades at the end of last year give hope that something might improve, but good conditions inside the country are also needed. That is what should be worked on starting from this year. Otherwise, we can not hope that we are reaching the end of the tunnel, but that we are going deeper and deeper in it.

(end)

mils news 16 January 1996