Voice of America, 98-07-16

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From: The Voice of America <gopher://gopher.voa.gov>

CONTENTS

[01] CYPRUS/PENTAGON L UPDATE BY JIM RANDLE (PENTAGON)

[02] A KOSOVO SOLUTION (L ONLY) BY PAMELA TAYLOR (WASHINGTON)

[03] KOSOVO / NATO-SOLANA (L-ONLY) BY DAVID DYAR (WASHINGTON)

[04] THE KOSOVO LIBERATION ARMY BY JIM RANDLE (PENTAGON)

[05] U-S/KOSOVO (L ONLY) BY GIL BUTLER (STATE DEPARTMENT)

[06] EURO STOCKS (S-ONLY) BY PAUL FRANCUCH (LONDON)

[07] NY ECON WRAP (S&L) BY JOE CHAPMAN (NEW YORK)

[08] THURSDAY'S EDITORIALS BY ANDREW N. GUTHRIE (WASHINGTON)

[09] KURDS / U-S / IRAQ (L ONLY) BY AMBERIN ZAMAN (ANKARA)

[10] CLINTON/ROMANIA (L) BY DAVID GOLLUST (WHITE HOUSE)

[01] CYPRUS/PENTAGON L UPDATE BY JIM RANDLE (PENTAGON)

INTRO: TURKEY'S TOP GENERAL AND THE TOP U-S DEFENSE OFFICIALS TALKED OVER WAYS TO REDUCE TENSIONS IN CYPRUS AT THE PENTAGON THURSDAY. PENTAGON OFFICIALS SAY THE DISCUSSIONS PRODUCED NO MAJOR PROGRESS ON THE COMPLEX ISSUES THAT DIVIDE THE ISLAND INTO GREEK AND TURKISH SECTORS. V-O-A'S JIM RANDLE REPORTS, THE TALKS ARE PART OF A LONG-TERM EFFORT TO FIND PEACE ON THE DIVIDED ISLAND.

TEXT: THE CHIEF OF THE TURKISH GENERAL STAFF, GENERAL ISMAIL KARADAYI (PRONO: KARA-DIE-YAH) MET PRIVATELY WITH U-S DEFENSE SECRETARY WILLIAM COHEN AND CHAIRMAN OF THE JOINT CHIEFS, GENERAL HUGH SHELTON.

U-S OFFICIALS SAY THERE IS A 'DRAMATIC NEED' TO REDUCE TENSIONS BETWEEN GREECE AND TURKEY OVER CYPRUS, BUT PENTAGON SPOKESMAN KEN BACON SAID HE HAD LITTLE SPECIFIC PROGRESS TO REPORT.

WE ARE TRYING TO ENCOURAGE BOTH THE GREEK SIDE AND THE TURKISH SIDE TO STEP BACK FROM POTENTIAL CONFLICT, TO STEP BACK FROM THE CURRENT CONFRONTATION, AND TO LOOK FOR MORE PEACEFUL, MORE STABLE SOLUTIONS TO THE PROBLEMS.

MR. BACON SAYS WASHINGTON HAS PUT A LOT OF WORK INTO RESOLVING THE CYPRUS ISSUE. HE SAYS A HIGH RANKING PENTAGON OFFICIAL IS ABOUT TO RETURN FROM TALKS IN TURKEY ON THE MATTER, THE GREEK DEFENSE MINISTER VISITED FOR DISCUSSIONS LAST WEEK AND SECRETARY COHEN VISITED BOTH GREECE AND TURKEY EARLIER THIS YEAR.

MR. BACON SAYS GREEK CYPRIOT PLANS TO BUY SOPHISTICATED ANTI-AIRCRAFT MISSILES FROM RUSSIA ARE A STEP IN THE WRONG DIRECTION. HE SAYS THE 'S-300'S' INCREASE TENSIONS ON THE ISLAND AND MAKE THE GREEK CYPRIOTS LESS SECURE.

CYPRUS HAS BEEN SPLIT BETWEEN GREEK AND TURKISH SIDES SINCE A TURKISH INVASION IN 1974. THAT ACTION FOLLOWED DAYS AFTER A COUP AGAINST THE ISLAND GOVERNMENT BACKED BY THE GREEK MILITARY GOVERNMENT.

THE UNITED NATIONS HAS BEEN TRYING TO RE-START TALKS BETWEEN THE TWO SIDES, BUT THE TURKS COMPLAIN THAT THE INTERNATIONAL COMMUNITY RECOGNIZES THE GREEK-LED CYPRIOT ADMINISTRATION AS THE OFFICIAL GOVERNMENT OF THE ENTIRE ISLAND, WHILE IGNORING THE TURKISH COMMUNITY THERE.

MR. BACON SAYS BESIDES CYPRUS, THE TURKS AND AMERICANS DISCUSSED PEACEKEEPING IN THE BALKANS BY BOTH GREECE AND TURKEY, AS WELL AS THE SITUATION IN KOSOVO.

THEY ALSO DISCUSSED NATO SUGGESTIONS FOR 'CONFIDENCE BUILDING MEASURES' IN THE AEGEAN. THESE MEASURES ARE THOUGHT TO INCLUDE THINGS LIKE IMPROVED COMMUNICATIONS LINKS BETWEEN THE TWO MILITARIES TO AVOID ACCIDENTAL CONFRONTATION, AND BANNING ARMED TRAINING FLIGHTS BY MILITARY AIRCRAFT.(SIGNED)
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16-Jul-98 5:14 PM EDT (2114 UTC)
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Source: Voice of America

[02] A KOSOVO SOLUTION (L ONLY) BY PAMELA TAYLOR (WASHINGTON)

INTRO: A U-S POLICY INSTITUTE TODAY/WEDNESDAY ISSUED A SET OF RECOMMENDATIONS TO RESOLVE THE CONFLICT IN SERBIA'S KOSOVO PROVINCE. THE WASHINGTON-BASED INSTITUTE OF PEACE SAYS BRINGING ABOUT A DEMOCRATIC TRANSITION IN YUGOSLAVIA'S SERBIAN REPUBLIC IS A PRIORITY. THE GROUP SAYS THE KEY TO DOING THIS IS TO PERSUADE KOSOVAR ALBANIANS THAT THEIR GOAL SHOULD BE MAXIMUM AUTONOMY -- NOT INDEPENDENCE. V-O-A'S PAMELA TAYLOR REPORTS:

TEXT: THE KEYNOTE SPEAKER, FORMER U-S AMBASSADOR TO BOSNIA-HERZEGOVINA JOHN MENZIES, SAYS THE INSTITUTE BELIEVES KOSOVO IS THE BEGINNING OF THE END OF YUGOSLAVIA'S PRESIDENT SLOBODAN MILOSEVIC AND THAT THE KOSOVAR ALBANIANS SHOULD CAPITALIZE ON THIS OPPORTUNITY.

AMBASSADOR MENZIES, WHO IS NOW A SENIOR FELLOW WITH THE INSTITUTE OF PEACE, CRITICIZED U-S ENVOY RICHARD HOLBROOKE'S POLICY OF TRYING TO RESOLVE THE KOSOVO CRISIS THROUGH PRESIDENT MILOSEVIC.

WE CONTINUE TO LOOK TO HIM (MILOSEVIC) FOR SOLUTIONS RATHER THAN AS THE AUTHOR OF THE PROBLEM. AMBASSADOR HOLBROOKE CHARACTERIZED MILOSEVIC AS BOTH THE ARSONIST (INSTIGATOR) AND THE FIREMAN (PEACEMAKER). MY QUESTION IS WHO GAVE HIM (MILOSEVIC) THE FIREMAN'S BADGE? WHY ARE WE NOT PURSUING HIM WITH A POLICEMAN'S BADGE TO HOLD HIM ACCOUNTABLE (FOR ETHNIC TENSIONS IN THE BALKANS)?

AMBASSADOR MENZIES SAYS THE INSTITUTE OF PEACE RECENTLY CONDUCTED A DIPLOMACY TRAINING SEMINAR IN SOPHIA, BULGARIA FOR KOSOVAR ALBANIANS. HE SAYS THE GOAL WAS TO HELP LEVEL THE PLAYING FIELD (MAKE IT FAIR) BY STRENGTHENING THE ALBANIANS' BARGAINING SKILLS. THE SEMINAR WAS ORGANIZED AFTER INTERNATIONAL DIPLOMATS IN MAY CONVINCED ETHNIC ALBANIAN LEADER IBRAHIM RUGOVA TO NEGOTIATE WITH PRESIDENT MILOSEVIC.

WE WERE DISCONCERTED BY THE TREMENDOUS PRESSURE APPLIED TO THE KOSOVARS TO MEET WITH MILOSEVIC PREMATURELY AND IN AN INAPPROPRIATE CONTEXT. WE FELT THAT SENDING RUGOVA TO MEET WITH MILOSEVIC WAS SENDING BAMBI (A GENTLE DEER) TO MEET GODZILLA (A GORILLA). AND I STILL FEEL THAT WAY.

AMBASSADOR MENZIES AND OTHER SPEAKERS AT THE INSTITUTE'S BRIEFING ON KOSOVO SAID ANOTHER SEMINAR GOAL WAS TO ASSIST THE KOSOVAR ALBANIANS IN UNDERSTANDING THEIR OPPONENT'S POINT OF VIEW. THE SERBS NOT ONLY WANT NO FURTHER SPLINTERING OF THEIR COUNTRY, BUT CONSIDER MANY AREAS AND HISTORIC SITES IN KOSOVO THE CENTER OF THEIR RELIGION AND NATIONHOOD.

THE INSTITUTE OF PEACE SAYS THE KOSOVAR ALBANIAN POLITICIANS MUST REALIZE THERE IS NO INTERNATIONAL SUPPORT FOR THEIR INDEPENDENCE OR TO UNITE ALL ETHNIC ALBANIANS IN THE BALKANS.

IN ITS REPORTS ON KOSOVO AND SERBIA, THE INSTITUTE OF PEACE CONCLUDES THAT ULTIMATE REGIONAL STABILITY IN THE BALKANS DEPENDS ON SERBIA MAKING THE TRANSITION TO DEMOCRACY. THE REPORTS SAY ONLY IN A DEMOCRATIC SOCIETY WILL THE MINORITY RIGHTS OF THE KOSOVAR ALBANIANS IN SERBIA AND THE MINORITY RIGHTS OF SERBS IN KOSOVO BOTH BE GUARANTEED. (SIGNED)
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16-Jul-98 2:52 PM EDT (1852 UTC)
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Source: Voice of America

[03] KOSOVO / NATO-SOLANA (L-ONLY) BY DAVID DYAR (WASHINGTON)

INTRO: THE SECRETARY-GENERAL OF NATO SAYS THE EUROPEAN ALLIANCE IS PREPARED FOR MILITARY ACTION IN KOSOVO, BUT INDICATED SUCH ACTION WOULD BE LIMITED. CORRESPONDENT DAVID DYAR REPORTS NATO OFFICIAL JAVIER SOLANA SPOKE ABOUT THE ORGANIZATION'S CONTINGENCY PLANS FOR KOSOVO AT A NEWS BRIEFING (THURSDAY) IN WASHINGTON.

TEXT: MR. SOLANA WAS ASKED REPEATEDLY TO PROVIDE DETAILS ABOUT NATO'S CONTINGENCY PLANS FOR POSSIBLE MILITARY INTERVENTION IN KOSOVO.

HE REFUSED TO DISCLOSE ANY CONCRETE MILITARY OPTIONS, AND INSTEAD EMPHASIZED ANY KIND OF NATO INTERVENTION WOULD LIKELY BE IN THE CONTEXT OF A DIPLOMATIC SOLUTION.

NATO HAS NEVER THOUGHT OF SOLVING THE PROBLEM MILITARILY. WHAT WE HAVE SAID IS THAT WE WILL BE PREPARED TO HELP, TO SUPPORT, TO BACK UP, THE DIPLOMATIC EFFORTS, IF NECESSARY, WITH THE CAPABILITY THAT NATO HAS. BUT, WE KNOW VERY WELL, AND YOU KNOW VERY WELL, THAT THE SOLUTION TO THAT PROBLEM WILL BE DIPLOMATIC.

THE NATO SECRETARY-GENERAL POINTED TO TWO POSSIBLE SCENARIOS IN WHICH NATO MILITARY FORCES MIGHT BE USED IN KOSOVO AS PART OF A DIPLOMATIC SOLUTION. HE SAID THESE WERE A POSSIBLE GUARANTEE OF A CEASEFIRE OR A GUARANTEE OF A SETTLEMENT.

MR. SOLANA'S COMMENTS CAME ONE DAY AFTER OFFICIALS AT THE PENTAGON SAID NATO IS NOWHERE NEAR MAKING A DECISION FOR MILITARY INTERVENTION IN THE REGION.

THE OFFICIALS STRESSED THE RECENT EASING OF THE SERBIAN CRACKDOWN IN KOSOVO AND THE SUCCESS OF ETHNIC ALBANIAN INSURGENTS HAS LESSENED THE POSSIBILITY OF NATO INTERVENTION.

ONE-MONTH AGO NATO STAGED A SHOW OF FORCE OVER THE REGION WITH A LARGE AIR EXERCISE.

MR. SOLANA SAID PLANS ARE GOING FORWARD FOR A LARGE GROUND EXERCISE IN ALBANIA NEXT MONTH, WHICH HE SAID WILL HAVE SOLID MILITARY PARTICIPATION BY SEVERAL NATO MEMBERS. (SIGNED)
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16-Jul-98 12:07 PM EDT (1607 UTC)
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Source: Voice of America

[04] THE KOSOVO LIBERATION ARMY BY JIM RANDLE (PENTAGON)

INTRO: FIGHTING IN THE KOSOVO REGION OF YUGOSLAVIA PITS 20-THOUSAND MEMBERS OF YUGOSLAVIA'S MOSTLY SERBIAN ARMY AND SPECIAL POLICE AGAINST A RAPIDLY GROWING NUMBER OF ETHNIC ALBANIAN GUERRILLAS OF THE KOSOVO LIBERATION ARMY. THE K-L-A CLAIMS CONTROL OF ABOUT 40 PERCENT OF THE SERBIAN PROVINCE. V-O-A'S JIM RANDLE REPORTS, THE CONTEST PITS HEAVY WEAPONS AGAINST A POWERFUL DRIVE FOR INDEPENDENCE.

TEXT: DEFENSE AND INTELLIGENCE OFFICIALS AT THE PENTAGON SAY THE KOSOVO LIBERATION ARMY HAS ABOUT TWO THOUSAND 'CORE' OR FULL TIME MEMBERS AND 'TENS OF THOUSANDS' OF ARMED SUPPORTERS.

THE OFFICIALS, WHO ASKED NOT TO BE NAMED, SAY K-L-A REBELS ARE MOSTLY ARMED WITH LIGHT INFANTRY WEAPONS, BUT ARE SEEKING ANTI-AIRCRAFT, ANTI-TANK WEAPONS, AND EFFECTIVE RADIOS. INTELLIGENCE OFFICIALS DISPUTE NEWS REPORTS THAT THE K-L-A HAS ACTUALLY ACQUIRED SUCH EQUIPMENT.

SINCE THE SERBIAN CRACKDOWN ON ETHNIC ALBANIAN SEPARATISTS EARLIER IN THE YEAR, THE K-L-A, (OR OOH-CHA-KAH AS IT IS KNOWN) HAS GROWN RAPIDLY FROM A FEW HUNDRED MEMBERS TO SEVERAL THOUSAND. DEFENSE OFFICIALS SAY THEY EXPECT THE GROUP WILL KEEP GROWING AT A RAPID RATE.

PURDUE UNIVERSITY PROFESSOR CHARLES INGRAO, AN EXPERT IN THE BALKANS, SAYS TACTICS USED BY THE SERB-DOMINATED YUGOSLAV ARMY HELPED THEIR K-L-A OPPONENTS RECRUIT MEMBERS.

HE SAYS THE YUGOSLAV ARMY RAINED ARTILLERY ON ETHNIC ALBANIAN VILLAGES IN KOSOVO TO DRIVE THE PEOPLE OUT. THE ARMY FINISHED THE JOB OF DEPOPULATING THE TOWNS WITH TANKS, INFANTRY, AND POLICE.

THE (YUGOSLAV) MILITARY TENDS TO BE IN THE BORDER AREAS, WHERE THEY ARE SETTING UP A 'NO MAN'S LAND.'

PROFESSOR INGRAO SAYS THE IDEA IS TO DRIVE KOSOVARS AWAY FROM THEIR HOMES IN CRITICAL BORDER AREAS. WITHOUT LOCAL SUPPORTERS, HE SAYS IT WILL BE HARD FOR K-L-A WEAPONS SMUGGLERS TO RESUPPLY THEIR GUERRILLA FORCES IN KOSOVO.

AID WORKERS, JOURNALISTS, ACADEMICS, MILITARY, AND INTELLIGENCE SOURCES SAY THE KOSOVO LIBERATION ARMY IS HELD TOGETHER BY ANGER AT THE SERBIAN RULERS OF KOSOVO AND A STRONG DESIRE FOR CHANGE.

SOME K-L-A MEMBERS SAY THEY WANT INDEPENDENCE, WHILE OTHERS SAY THEY WANT TO UNITE ETHNIC ALBANIAN AREAS OF KOSOVO WITH THE NATION OF ALBANIA. STILL OTHERS HAVE NOT MADE THEIR GOALS CLEAR.

DIPLOMATS SEEKING A NEGOTIATED SOLUTION TO THE CONFLICT SAY THEY CAN'T FIND CREDIBLE K-L-A LEADERS TO TALK TO. DEFENSE AND INTELLIGENCE OFFICIALS AT THE PENTAGON SAY THE K-L-A HAS A CENTRAL COMMAND STRUCTURE, BUT THEY SAY IT IS NOT CLEAR IF ONE PERSON OR A 'COALITION' OF PEOPLE IS IN CHARGE.

UNTIL THIS YEAR, KOSOVAR PROTEST WAS MOSTLY NON-VIOLENT AND IBRAHIM RUGOVA EMERGED AS THE LEADER OF THE MOVEMENT TO RESTORE AUTONOMY.

BUT WHEN YUGOSLAV ARMY UNITS ATTACKED ETHNIC ALBANIAN VILLAGES, POPULAR SUPPORT SWITCHED FROM MR. RUGOVA'S PEACEFUL TACTICS TO THE MORE MILITANT KOSOVO LIBERATION ARMY.

YUGOSLAV LEADERS SAID THEY WERE RESPONDING TO K-L-A ATTACKS THAT KILLED SOME SERB POLICE OFFICERS. BUT NATO DEFENSE MINISTERS CALL THE YUGOSLAV ACTIONS -- LIKE LEVELING VILLAGES -- GROTESQUELY OUT OF PROPORTION TO THE PROVOCATION.

DEFENSE OFFICIALS SAY THOSE TACTICS BROUGHT FOREIGN CRITICISM OF YUGOSLAVIA AND DONATIONS FOR THE K-L-A. THE OFFICIALS SAY THE GROUP IS LARGELY SUPPORTED BY FUNDS FROM WHAT THEY CALL THE KOSOVAR ALBANIAN DIASPORA.

THE OFFICIALS SAY DRAWING AN ACCURATE PORTRAIT OF THE K-L-A IS DIFFICULT BECAUSE IT IS GROWING AND EVOLVING SO FAST. PENTAGON SPOKESMAN KEN BACON SAYS THE FLUID SITUATION ALSO MAKES IT DIFFICULT FOR NATO PLANNERS TO COME UP WITH EFFECTIVE WAYS TO ENCOURAGE THE TWO SIDES TO STOP SHOOTING AND START NEGOTIATING.

I THINK WHAT'S CHANGED IN KOSOVO OVER THE LAST FEW WEEKS IS THE APPRECIATION OF THE COMPLEXITY OF THE PROBLEM. SEVERAL WEEKS AGO PEOPLE THOUGHT OF THE PROBLEM AS ALMOST ONE-SIDED. IT WAS A PROBLEM OF YUGOSLAVIAN POLICE OR MILITARY FORCES ATTACKING KOSOVAR ALBANIANS. WHAT HAS BECOME CLEAR IN THE PAST COUPLE OF WEEKS IS THE KOSOVAR ALBANIANS HAVE BECOME MORE ENERGETIC IN THEIR INDEPENDENCE MOVEMENT AND THEIR OWN MILITARY ACTIVITIES.

MR. BACON SAYS NATO IS STILL CONSIDERING A RANGE OF OPTIONS -- BUT ANALYSTS SAY MILITARY INTERVENTION IS UNLIKELY UNLESS THE LEVEL OF VIOLENCE RISES SHARPLY. // OPT // SO FAR THE FIGHTING HAS KILLED MORE THAN HUNDRED PEOPLE -- MOSTLY CIVILIANS. // END OPT //

NATO SENT A BLUNT MESSAGE TO YUGOSLAV PRESIDENT MILOSEVIC A FEW WEEKS AGO BY MASSING SCORES OF WARPLANES IN THE SKIES NEAR KOSOVO. THEY MADE IT CLEAR THAT THEY COULD STRIKE TARGETS ANYWHERE IN KOSOVO OR YUGOSLAVIA WITH MASSIVE FORCE UNLESS THE YUGOSLAV ARMY RESTRAINED ITS ATTACKS.

FOLLOWING THE NATO 'SHOW OF FORCE,' MR. MILOSEVIC MET WITH RUSSIAN PRESIDENT BORIS YELTSIN. U-S INTELLIGENCE OFFICIALS SAY YUGOSLAV OFFENSIVE MILITARY ACTIVITY HAS BEEN REDUCED SINCE THAT DISCUSSION. BUT THE OFFICIALS SAY PRESIDENT MILOSEVIC IS A 'MASTER TACTICIAN' WHO IS LIKELY KEEPING THE LEVEL OF VIOLENCE LOW ENOUGH TO AVOID FOREIGN INTERVENTION.

SOME EXPERTS SAY THAT MAY BE A FORMULA FOR A LENGTHY CONFLICT. DEFENSE OFFICIALS SAY THEY YUGOSLAV ARMY HAS NOT DEPLOYED ENOUGH FORCE TO DEFEAT THE REBELS, AND THE REBELS DO NOT HAVE ENOUGH STRENGTH TO SEIZE AND HOLD TERRITORY. AND THEY SAY NEITHER SIDE SHOWS ANY SIGN OF GIVING UP. (SIGNED).
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16-Jul-98 12:01 PM EDT (1601 UTC)
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Source: Voice of America

[05] U-S/KOSOVO (L ONLY) BY GIL BUTLER (STATE DEPARTMENT)

INTRO: KOSOVO'S ETHNIC ALBANIANS THURSDAY CONVENED THEIR FIRST PARLIAMENT IN DEFIANCE OF SERBIAN AUTHORITIES. THE PARALLEL PARLIAMENT IS NOT RECOGNIZED BY ANY OTHER COUNTRY. THE UNITED STATES DESCRIBED SERBIAN POLICE ACTIONS AT THE ETHNIC ALBANIAN GATHERING AS "HEAVY HANDED." VOA'S GIL BUTLER HAS MORE FROM THE STATE DEPARTMENT.

TEXT: STATE DEPARTMENT SPOKESMAN JAMES RUBIN TOOK CARE TO SAY THAT WHILE THE UNITED STATES DOES NOT RECOGNIZE THE PARALLEL PARLIAMENT BUT DOES RECOGNIZE THE RIGHT OF FREE ASSEMBLY. AND HE WAS CRITICAL OF THE USE OF POLICE FORCES AGAINST THE ASSEMBLY, WHICH IS HEADED BY ETHNIC ALBANIAN LEADER IBRAHIM RUGOVA.

THE KIND OF HEAVY-HANDED INTIMIDATION BY THE SERB POLICE IS EMBLEMATIC OF THE REPRESSIVE NATURE OF SLOBODAN MILOSEVIC'S REGIMEIN KOSOVO, WHICH SPARKED THE CURRENT CRISIS IN KOSOVO.

THE ASSEMBLY HAD BEEN ELECTED BY KOSOVO'S ETHNIC ALBANIAN COMMUNITY LAST MARCH. THIS WAS ITS FIRST SESSION AND A SPEAKER AND OTHER OFFICERS WERE CHOSEN BEFORE THE SERBIAN POLICE ARRIVED.THERE WERE NO ARRESTS, BUT PLAIN CLOTHES OFFICERS CONFISCATED DOCUMENTS FROM DR. RUGOVA'S PARTY HEADQUARTERS. THE SERBIAN INTERIOR MINISTRY ISSUED A STATEMENT SAYING THOSE MATERIALS WERE GIVEN TO THE DISTRICT PROSECUTOR FOR POSSIBLE CRIMINAL ACTION AGAINST THE PARTICIPANTS IN THE PARALLEL PARLIAMENT. SINCE 1989, WHEN KOSOVO'S AUTONOMY WAS ENDED BY YUGOSLAV PRESIDENT MILOSEVIC, A SYSTEM OF PARALLEL SCHOOLS AND OTHER SERVICES HAS DEVELOPED AMONG THE PROVINCE'S ETHNIC ALBANIAN MAJORITY.MANY ETHNIC ALBANIANS IN KOSOVO DEMAND FULL INDEPENDENCE BUT THE UNITED STATES AND OTHER COUNTRIES SAY KOSOVO SHOULD BE GIVEN SIGNIFICANTLY ENHANCED AUTONOMY WITHIN THE FEDERAL REPUBLIC OF YUGOSLAVIA.(SIGNED)
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16-Jul-98 2:44 PM EDT (1844 UTC)
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Source: Voice of America

[06] EURO STOCKS (S-ONLY) BY PAUL FRANCUCH (LONDON)

INTRO: STOCK PRICES ON KEY EUROPEAN MARKETS CLOSED MIXED THURSDAY. FOR THE CLOSING FIGURES, HERE'S PAUL FRANCUCH IN LONDON.

TEXT: HIGHER PRICES ON ASIAN MARKETS AND OPTIMISM OVER JAPAN'S POLITICAL AND ECONOMIC FUTURE COMBINED TO HELP PRICES ON THE FRANKFURT AND PARIS MARKETS SET NEW RECORD HIGHS. BUT THE CLOSE WAS OFF THE PEAKS SET EARLIER IN THE TRADING DAY. LOWER PRICES AS WALL STREET OPENED WERE CITED BY MARKET ANALYSTS FOR THE DECLINE ON THE LONDON MARKET.

AT THE CLOSE, THE LONDON "FINANCIAL TIMES" 100 INDEX WAS DOWN 35 POINTS, THE FRANKFURT "DAX" WAS UP TWO POINTS FOR THE DAY AND THE PARIS "CAC 40" ADDED 14 POINTS WHEN TRADING ENDED.

THE U-S DOLLAR TRADED ABOUT A PFENNIGE LOWER AGAINST THE GERMAN MARK AND WAS DOWN ABOUT A HALF CENT AGAINST THE BRITISH POUND.

GOLD PRICES IN LONDON CONTINUE TO HOVER AROUND THE 293 DOLLAR AN OUNCE MARK. (SIGNED)
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16-Jul-98 1:49 PM EDT (1749 UTC)
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Source: Voice of America

[07] NY ECON WRAP (S&L) BY JOE CHAPMAN (NEW YORK)

INTRO: STOCK PRICES IN NEW YORK CLOSED UP TODAY (THURSDAY) AT RECORD HIGH LEVELS FOR THE THREE MAJOR MARKET INDEXES. V-O-A'S JOE CHAPMAN REPORTS FROM NEW YORK.

TEXT: THE DOW JONES INDUSTRIAL AVERAGE CLOSED UP ONE PERCENT -- 93 POINTS -- AT A RECORD HIGH 93-HUNDRED-27 ON A RALLY THAT BUILT STRENGTH DURING THE SECOND HALF OF THE TRADING SESSION. THE BROADER AND MORE REPRESENTATIVE STANDARD AND POOR'S 500 INDEX WAS UP NINE POINTS AT 11-HUNDRED-83.

THE NASDAQ COMPOSITE CLOSED UP SIX POINTS AT A FRACTION OVER TWO-THOUSAND, AN IMPORTANT PSYCHOLOGICAL BARRIER. IT WAS THE SEVENTH RECORD CLOSE IN A ROW FOR THE TECHNOLOGY HEAVY INDEX. THE DOW JONES INDUSTRIALS CLOSED FOR THE FIRST TIME ABOVE 93-HUNDRED.

EASTMAN KODAK WAS THE BIG GAINER AMONG THE 30 DOW JONES INDUSTRIAL STOCKS, SOARING SIX PERCENT ONLY A DAY AFTER GAINING 12 PERCENT ON BETTER THAN EXPECTED EARNINGS. INTERNATIONAL PAPER, COMPAQ COMPUTER AND IOMEGA CORPORATION ALSO ADDED SOLID GAINS. APPLE COMPUTER HELPED LEAD THE NASDAQ INDEX UP AFTER REPORTING PROFITS THAT EXCEEDED ESTIMATES.

ANALYSTS SAY SUCH ROUND NUMBERS AS THE NASDAQ AT TWO-THOUSAND OR THE DOW JONES INDUSTRIALS AT 93-HUNDRED SOMETIMES TRIGGER COMPUTERIZED TRADING PROGRAMS. MARKET WATCHERS SAY COMPUTERIZED SELLING WAS A FACTOR, BUT IN THE END WAS OFFSET BY BUYING PRESSURE.

I-C-N PHARMACEUTICALS, WHICH OPERATES FACTORIES AND MARKETS THROUGHOUT EASTERN EUROPE, FELL 13 PERCENT AFTER IT ANNOUNCED A 172-MILLION DOLLAR CHARGE AGAINST ITS EARNINGS. COMPANY OFFICIALS BLAME THE WRITEOFF ON A DEFAULT BY A YUGOSLAV GOVERNMENT AGENCY ON A DEBT OWED I-C-N.

INVESTMENT EXECUTIVE MARK BRONZO SAYS HE IS AMONG THE ANALYSTS WHO BELIEVE THE STOCK PRICES IN THE UNITED STATES CAN GO HIGHER DESPITE A SLOWING OF COMPANY EARNINGS GROWTH.

I THINK THE EARNINGS GROWTH IS GOING TO SLOW DOWN TO A FIVE TO EIGHT PERCENT PACE AND NOT MUCH LOWER. SO WE'RE A LITTLE MORE OPTIMISTIC THAN SOME. AND WE THINK, EVEN WITH THAT TYPE OF PACE, A FIVE TO EIGHT PERCENT PACE, PEOPLE ARE GOING TO LOOK TO THE STOCK MARKET WITH A SUPERIOR RETURN VERSUS THE FIXED INCOME MARKET.

MR. BRONZO SAYS AS LONG AS KEY U-S INTEREST RATES REMAIN IN A RANGE OF FIVE AND ONE HALF TO SIX PERCENT -- WHICH HE BELIEVES IS LIKELY -- THEN THE STOCK MARKET WILL GIVE INVESTORS A BETTER RETURN THAN FIXED INCOME INVESTMENTS.(SIGNED) NEB/NY/JMC/LSF/PT
16-Jul-98 5:22 PM EDT (2122 UTC)
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Source: Voice of America

[08] THURSDAY'S EDITORIALS BY ANDREW N. GUTHRIE (WASHINGTON)

INTRO: THE JAPANESE ECONOMIC CRISIS, AND THE PENDING CHANGE IN LEADERSHIP IN THAT IMPORTANT COUNTRY, OCCUPIES A PROMINENT PLACE IN THURSDAY'S U-S EDITORIAL COLUMNS.

OTHER SUBJECTS RECEIVING SCRUTINY INCLUDE: THE REBURYING OF CZAR NICHOLAS THE SECOND AND HIS FAMILY; U-S POLICY TOWARD LIBYA; NEW FEARS OF MISSILE ATTACKS AGAINST THIS COUNTRY; U-S RESERVATIONS TO A NEW WORLD COURT, AND THE TRAVAIL OF THE INTERNATIONAL MONETARY FUND. NOW, WE WELCOME ____________________ TO THE STUDIO WITH A CLOSER LOOK, INCLUDING SOME QUOTES, IN TODAY'S EDITORIAL DIGEST.

TEXT: TODAY'S PORTLAND PRESS HERALD" IN MAINE SAYS NEW, AND DYNAMIC LEADERSHIP NEEDS TO BE PUT FORTH BY JAPAN'S RULING LIBERAL DEMOCRATIC PARTY TO WREST THAT NATION FROM ITS ECONOMIC MALAISE.

VOICE: JAPAN NEEDS FRESHER, MORE CHARISMATIC, MORE DYNAMIC LEADERSHIP IF IT IS TO PULL ITSELF OUT OF THE DOLDRUMS AND ASSUME AGAIN ITS ROLE AS THE FOREMOST ECONOMIC POWER OF THE WESTERN PACIFIC RIM. WHETHER THE JAPANESE POLITICAL SYSTEM WILL ALLOW THAT TO HAPPEN IS ANOTHER MATTER, AND THE HARD, CRUEL TRUTH IS THAT IT MIGHT NOT. THAT MEANS JAPAN'S ECONOMIC RECOVERY MIGHT NOT BE POSSIBLE UNDER THE CURRENT SYSTEM, WHICH HAS FRIGHTENING IMPLICATIONS NOT ONLY FOR ASIA AND THE REST OF THE PACIFIC RIM, INCLUDING THE UNITED STATES, BUT FOR THE GLOBAL ECONOMY. /// OPT /// ...CUTTING TAXES, SHORING UP THE NATION'S BANKS AND STIMULATING CONSUMER SPENDING WILL REQUIRE A LEADER WILLING TO TAKE RISKS AND DO WHAT IS NECESSARY, EVEN IF IT IS UNPOPULAR. WHETHER SOMEONE WHO LACKS THE ABILITY TO INSPIRE AND ALWAYS HAS PLAYED THINGS SAFE CAN SUDDENLY BECOME A POLITICAL DYNAMO IS HIGHLY UNLIKELY.

TEXT: "THE ORLANDO SENTINEL" IS CONCERNED ABOUT THE SPEED WITH WHICH THE NEW LEADER MUST ACT.

VOICE: MR. HASHIMOTO'S SUCCESSOR -- EXPECTED TO BE CHOSEN BY NEXT WEEK -- WILL NOT HAVE AN OPEN-ENDED OPPORTUNITY TO GET JAPAN BACK ON TRACK. HE WILL HAVE TO TAKE STEPS QUICKLY TO DEAL WITH JAPAN'S RECESSIONARY ECONOMY. IF HE FALLS INTO THE SAME RUT AS MR. HASHIMOTO AND ECONOMIC POLICY REMAINS BOUND BY UNPRODUCTIVE POLITICAL HAGGLING, IT COULD STRETCH OUT JAPAN'S AND ASIA'S CRISIS. ...TO RESUSCITATE THE SO-CALLED ASIAN MIRACLE OF ECONOMIC GROWTH, JAPAN'S ECONOMY MUST REGAIN ITS STRENGTH. RECENTLY JAPAN BEGAN TO TAKE UP THAT CHALLENGE BY APPROVING A 116-BILLION [DOLLAR] PLAN TO STIMULATE ITS OWN ECONOMY. THAT WAS A GOOD STEP BUT HARDLY ENOUGH.

TEXT: A HISTORIC RE-BURIAL IN RUSSIA, DUE TOMORROW, OF CZAR NICHOLAS AND HIS FAMILY, IN ST. PETERSBURG, HAS CAPTURED THE ATTENTION OF "THE LOS ANGELES TIMES" WHICH WRITES:

VOICE: BUT THE FUNERAL WILL FALL SHORT OF WHAT ANY SELF-RESPECTING EMPEROR HAS A RIGHT TO EXPECT. ...[MR.] YELTSIN HAS DECIDED TO STAY AWAY. ALSO BOYCOTTING IS PATRIARCH ALEXEI THE SECOND OF THE RUSSIAN ORTHODOX CHURCH, TRADITIONALLY A LOYAL SUPPORTER OF THE MONARCHY. ...SOME SEE NICHOLAS AS A MARTYR OF THE RUSSIAN REVOLUTION. CERTAINLY HE WAS THE MOST NOTABLE OF ITS VICTIMS, BUT CERTAINLY TOO HE AND THOSE WHO RULED AND REPRESSED IN HIS NAME BEAR INESCAPABLE RESPONSIBILITY FOR HELPING MAKE [THE UPHEAVAL RUSSIAN WENT THROUGH] UNAVOIDABLE.

TEXT:TODAY'S "WASHINGTON POST" IS UPSET AT THE POSSIBILITY THAT THE U-N AIR EMBARGO AGAINST LIBYA MAY BE DETERIORATING AS MEMORIES FADE OF PAN AM FLIGHT 103 WHICH WAS BLOWN OUT OF THE SKY OVER SCOTLAND IN 1988 BY A LIBYAN TERRORIST BOMB, KILLING 270 PEOPLE.

VOICE: IT IS A LONG TIME SINCE LIBYA BOMBED AN INNOCENT AIRCRAFT OUT OF THE SKIES OVER LOCKERBIE. THE POINT OF AN AIR EMBARGO MAY HAVE DULLED IN SOME SECTORS OF PUBLIC AND OFFICIAL OPINION. BUT A GANGSTER ACT OF TERRORISM WAS COMMITTED, AND THE PURSUIT OF ITS PERPETRATORS MUST GO ON.

TEXT:"THE WALL STREET JOURNAL" IS REACTING TO A REPORT FROM BIPARTISAN MISSILE EXPERTS WHO SAY THIS COUNTRY IS, OR MAY SOON BECOME, VULNERABLE TO A NEW CROP OF INTERCONTINENTAL BALLISTIC MISSILES FROM TERRORIST NATIONS.

VOICE: AMERICA'S INTELLIGENCE COMMUNITY HAS ROUTINELY JUDGED THE BALLISTIC MISSILE THREAT TO BE AT LEAST 10 TO 15-YEARS AWAY -- TIME ENOUGH TO COME UP WITH A DEFENSE. BUT 'THIS IS NOT A DISTANT THREAT,' COUNTERS THE REPORT ... IRAN, NORTH KOREA, AND OTHER HOSTILE NATIONS ARE NOW ABLE TO 'ACQUIRE THE MEANS TO STRIKE THE U-S WITHIN ABOUT FIVE YEARS OF A DECISION' TO BUILD SUCH A WEAPON. EVEN MORE WORRISOME, ASSORTED NEW 'MEANS OF DELIVERY CAN SHORTEN THE WARNING TIME OF DEPLOYMENT NEARLY TO ZERO.' IN OTHER WORDS, WE MAY NOT KNOW ABOUT AN ENEMY MISSILE ARMED WITH A NUCLEAR OR BIOLOGICAL WARHEAD UNTIL IT IS ALREADY DESCENDING ON CITY HALL. ... /// OPT /// ... WE'D LIKE TO THINK THE REPORT WOULD AWAKEN TEAM CLINTON FROM ITS MISSILE DENIAL. BUT THE EARLY WORD IS THAT IT WILL INSTEAD QUIETLY TRASH THE REPORT AS ALARMIST AND POLITICALLY MOTIVATED. ... UNTIL THIS ODD ADMINISTRATION, WE THOUGHT A PRESIDENT'S FIRST DUTY WAS TO THE COMMON DEFENSE.

TEXT: "USA TODAY" MEANWHILE, IS CONCERNED ABOUT NEWLY-RAISED OBJECTIONS FROM THIS COUNTRY TO THE CONFERENCE IN ROME, DUE TO ESTABLISH A WORLD COURT TO TRY GENOCIDE AND OTHER SUCH CASES.

VOICE: GOOD NEWS -- EXCEPT THE UNITED STATES IS ON THE WRONG SIDE. EGGED ON [ENCOURAGED] BY THE PENTAGON AND CAPITOL HILL NAYSAYERS, THE CLINTON ADMINISTRATION IS TRYING TO SABOTAGE ANY CHANCE FOR A TOUGH COURT OR INDEPENDENT PROSECUTOR. AMONG THE ADMINISTRATION'S BIZARRE BEDFELLOWS ARE IRAQ, LIBYA, AND OTHER COUNTRIES OF QUESTIONABLE MOTIVATION. ... POLITICAL CONSIDERATIONS ARE VERY MUCH AT WORK IN AMERICAN OPPOSITION TO THE NEW COURT ... DOING THE RIGHT THING JUST IS NOT AS EASY TO SELL AS FEAR THAT AMERICAN SOLDIERS WILL BE RAILROADED [GIVEN UNFAIR TRIALS]. THE SHAME IS THAT IN OUR FEAR TO TAKE EVEN THE MOST MANAGEABLE OF RISKS, WE INVITE THE WORLD'S RACISTS AND WAR CRIMINALS TO NEW SLAUGHTERS OF THE INNOCENT.

TEXT: WITH THE INTERNATIONAL MONETARY FUND HAVING JUST AGREED TO AID RUSSIA IN ITS FINANCIAL CRISIS, WITH A MULTI-BILLION DOLLAR LOAN, "THE BOSTON GLOBE" SAYS THE FUND ITSELF IS NOW IN TROUBLE, HAVING OVEREXTENDED ITSELF, HELPING ASIAN ECONOMIES EARLIER IN THE YEAR.

VOICE: THE INTERNATIONAL MONETARY FUND'S SENSIBLE DOUBLING OF ITS POTENTIAL AID FOR RUSSIA UNDERSCORES THE NEED TO REPLENISH THE I-M-F'S RESERVES FOR SUCH CRISES. CONGRESS IS EXPECTED IN THE NEAR FUTURE TO ACT ON AS MUCH AS 18-BILLION IN AUTHORIZED FUNDING -- AT NOT COST TO THE BUDGET. IT SHOULD DO SO. ... THE UNITED STATES AND OTHER COUNTRIES WITH MARKET-BASED ECONOMIES HAVE A PROFOUND INTEREST IN UNDERTAKING COMMITMENTS BOTH FOR DIRECT ASSISTANCE AND FOR AID THROUGH THE I-M-F. ... REFUSAL TO SUPPORT THE I-M-F IS DANGEROUSLY SHORTSIGHTED. A FALLEN RUSSIAN ECONOMY WOULD EXACT A MUCH MORE EXPENSIVE SET OF POLITICAL AND ECONOMIC COSTS IN THE FUTURE. THE I-M-F RECOGNIZES THAT. CONGRESS SHOULD, TOO.

TEXT: AND LASTLY, WORDS OF PRAISE FROM THE MIDWEST, FOR CONGRESSIONAL ACTION THAT ALLOWS U-S FARMERS TO SELL WHEAT TO PAKISTAN EVEN THOUGH THE GOVERNMENT IS STILL UPSET ABOUT THE RECENT NUCLEAR BOMB DETONATIONS. SAYS "THE OMAHA WORLD-HERALD" OF THE CONGRESSIONAL MOVE:

VOICE: THE LEGISLATION, WHICH PRESIDENT CLINTON SAID HE WILL SIGN, HAS FOCUSED ATTENTION ON A BROADER QUESTION: DOES THE UNITED STATES OVERUSE SANCTIONS AS A FOREIGN POLICY TOOL? INDICATIONS ARE THAT IT DOES, INDEED. ...IT WOULD BE ONE THING IF THE SANCTIONS HAD A VISIBLE EFFECT ON PAKISTAN'S NUCLEAR POLICIES. BUT PAKISTAN IS NOW A NUCLEAR POWER. IT WAS ABOUT TO BUY WHEAT FROM U-S ALLIES -- CANADA AND AUSTRALIA -- REWARDING THEM, IN EFFECT, FOR NOT JOINING THE EMBARGO. THE MAIN PINCH OF THE SANCTIONS WOULD HAVE BEEN FELT BY AMERICAN FARMERS. THE PICTURE DIDN'T MAKE SENSE. ... WHAT IS THE PURPOSE OF AN ACT THAT FAILS TO CHANGE ANOTHER COUNTRY'S BEHAVIOR, REWARDS ALLIES FOR NON-COOPERATION AND HARMS AMERICANS? FARMERS ARE NOT THE ONLY GROUP THAT COULD LEGITIMATELY BE ASKING QUESTIONS.

TEXT: ON THAT NOTE WE CONCLUDE THIS SAMPLING OF EDITORIAL COMMENT FROM THURSDAY'S DAILY PAPERS.
NEB/ANG/RAE
16-Jul-98 10:47 AM EDT (1447 UTC)
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Source: Voice of America

[09] KURDS / U-S / IRAQ (L ONLY) BY AMBERIN ZAMAN (ANKARA)

INTRO: SENIOR IRAQI KURDISH OFFICIALS AND U-S DIPLOMATS HAVE ACCUSED THE IRAQI GOVERNMENT OF PROVIDING TRAINING FACILITIES FOR TURKISH KURD REBELS OF THE KURDISTAN WORKERS PARTY -- THE P-K-K. AMBERIN ZAMAN REPORTS FROM ANKARA.

TEXT: THE P-K-K REBELS HAVE BEEN FIGHTING FOR SELF RULE IN SOUTHEASTERN TURKEY FOR THE PAST 14 YEARS. THE UNITED STATES CALLS THE P-K-K A TERRORIST GROUP. AND TURKEY HAS ACCUSED SYRIA OF PROVIDING THE GROUP WITH ARMS AND TRAINING.

BOTH U-S OFFICIALS AND IRAQI KURDISH OFFICIALS SAY THE P-K-K IS NOW BEING BACKED BY THE IRAQI GOVERNMENT AS WELL.

TURKISH OFFICIALS SAY THEY HAVE REQUESTED INFORMATION FROM THE IRAQI AUTHORITIES CONCERNING THE ISSUE, BUT DECLINE TO COMMENT FURTHER.

THE INTERIOR MINISTER OF THE KURDISH REGIONAL GOVERNMENT, WHICH IS CONTROLLED BY THE KURDISTAN DEMOCRATIC PARTY, K-D-P, SAYS THE IRAQI GOVERNMENT IS ALLOWING P-K-K FIGHTERS TO TRAIN AT A CAMP IN THE MAHMOUR AREA 50 KILOMETERS SOUTH OF THE MAIN IRAQI KURDISH CITY, ERBIL.

IRAQI GOVERNMENT OFFICIALS DENY THE CHARGES. THEY SAY THE CAMP WAS FOR ABOUT SIX-THOUSAND TURKISH KURD REFUGEES WHO FLED TURKEY SEVERAL YEARS AGO AND THAT THEY ARE PROVIDING SHELTER FOR THE REFUGEES FOR HUMANITARIAN REASONS.

THE U-N REFUGEE AGENCY PROVIDES EMERGENCY ASSISTANCE FOR THE REFUGEES IN COOPERATION WITH THE IRAQI RED CRESCENT. U-N OFFICIALS SAY THEY HAVE NO KNOWLEDGE ABOUT THE CAMP BEING USED AS A TRAINING FACILITY FOR THE P-K-K.

BUT THE K-D-P'S INTERIOR MINISTER, FAZIL MIRANI, SAYS HE HAS STRONG EVIDENCE THAT P-K-K FIGHTERS DO TRAIN AT THE MAHMOUR CAMP. HE SAYS EVIDENCE INCLUDES CONFESSIONS FROM CAPTURED P-K-K REBELS WHO SAID THEY HAD RECEIVED TRAINING AND SHELTER AT THE CAMP. MR MIRANI SAYS HE CANNOT UNDERSTAND THE IRAQI GOVERNMENT'S MOTIVES IN SUPPORTING THE TURKISH KURD REBELS.

I ASK THIS QUESTION. I DON'T KNOW WHAT IS IRAQI ADVANCE [ADVANTAGE] TO BE INVOLVED IN THE P-K-K PROBLEM WHICH IS BOTHERING ITS OWN PEOPLE -- THE KURDS OF IRAQ. AND IT MIGHT CAUSE A POLITICAL SITUATION [PROBLEM] FOR THEM WITH TURKEY WITH WHOM THEY ARE HAVING GOOD RELATIONS RIGHT NOW.

U-S OFFICIALS SAY THE IRAQI GOVERNMENT -- BY SUPPORTING A TERRORIST GROUP -- IS MOVING A STEP FURTHER AWAY FROM ENDING SANCTIONS IMPOSED BY THE UNITED NATIONS AFTER THE GULF WAR. SOME U-S OFFICIALS BELIEVE IRAQ MAY BE SUPPORTING THE P-K-K AS A WAY OF EXERTING PRESSURE ON THE K-D-P.

THE ALLEGATIONS OF IRAQI SUPPORT FOR THE TURKISH KURD REBELS COINCIDE WITH THE VISIT THIS WEEK OF A U-S DELEGATION TO NORTHERN IRAQ. THE DELEGATION IS LED BY A U-S PRINCIPAL DEPUTY ASSISTANT SECRETARY OF STATE, DAVID WELCH. IT IS EXPECTED TO REVIVE A U-S-LED INITIATIVE TO RECONCILE THE TWO MAIN IRAQI KURDISH FACTIONS.

IRAQI OFFICIALS HAVE CONDEMNED THE U-S MISSION, SAYING ITS REAL PURPOSE IS TO DISRUPT RELATIONS BETWEEN IRAQI KURDS AND THE IRAQI GOVERNMENT. (SIGNED)
NEB/AZ/JWH
16-Jul-98 11:10 AM EDT (1510 UTC)
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Source: Voice of America

[10] CLINTON/ROMANIA (L) BY DAVID GOLLUST (WHITE HOUSE)

INTRO: PRESIDENT CLINTON HAS MET AT THE WHITE HOUSE WITH VISITING ROMANIAN PRESIDENT EMIL CONSTANTINESCU AND REAFFIRMED U-S SUPPORT FOR ROMANIA'S BID TO GAIN NATO MEMBERSHIP. V-O-A'S DAVID GOLLUST REPORTS FROM THE WHITE HOUSE.

TEXT: ROMANIA WAS PASSED OVER IN THE FIRST ROUND OF NATO EXPANSION LAST YEAR. BUT AN UNDAUNTED PRESIDENT CONSTANTINESCU HAS BEEN CAMPAIGNING IN WASHINGTON FOR ITS EVENTUAL INCLUSION -- SAYING MEMBERSHIP WILL BE ESSENTIAL TO SUSTAINING ROMANIAN DEMOCRACY.

A STATEMENT ISSUED AFTER HIS HOUR-LONG VISIT HERE SAID PRESIDENT CLINTON REITERATED U-S COMMITMENT TO HELP MAKE ROMANIA THE "STRONGEST POSSIBLE CANDIDATE" FOR NATO AND FOR OTHER WESTERN STRUCTURES.

IT ALSO EXPRESSED THE TWO LEADERS' MUTUAL CONCERN ABOUT THE SITUATION IN KOSOVO AND DETERMINATION TO SEEK A DIPLOMATIC RESOLUTION OF THE CRISIS.

THE WHITE HOUSE TALKS CAME JUST A FEW DAYS AFTER THE FIRST ANNIVERSARY OF A VISIT TO BUCHAREST BY MR. CLINTON -- WHICH WAS MARKED BY A TUMULTUOUS WELCOME FROM TENS OF THOUSANDS OF ROMANIANS. ESCORTING HIS ROMANIAN COUNTERPART TO MEET REPORTERS AFTER THEIR TALKS, MR. CLINTON RECALLED WHAT HE TERMED HIS "INCREDIBLE" ROMANIAN VISIT:

I STILL REMEMBER THE MASSIVE CROWD OF ROMANIANS THAT CAME OUT TO WELCOME ME THERE AND WHAT A WONDERFUL DAY IT WAS. THE PROGRESS HIS NATION IS MAKING IS VERY IMPRESSIVE AND THEY ARE VERY IMPORTANT TO OUR FUTURE.

PRESIDENT CONSTANTINESCU -- FOR HIS PART -- SAID HE EXPRESSED ROMANIA'S DEEP DESIRE TO BE A FACTOR FOR STABILITY IN CENTRAL AND SOUTHEAST EUROPE AND TO DO AWAY WITH ALL THAT WAS BAD IN THE PAST A REFERENCE TO THE COMMUNIST DICTATORSHIP OF NICOLAE CEAUSESCU OVERTHROWN IN 1989.

THE ROMANIAN LEADER HAS CONCEDED HERE THAT THE PROCESS OF ECONOMIC REFORM IN HIS COUNTRY HAS NOT GONE AS WELL AS HOPED. THE WHITE HOUSE STATEMENT SAID THE LEADERS STRESSED THE "CRUCIAL NEED" TO ACCELERATE PRIVATIZATION OF ROMANIA'S BANKS AND LARGE STATE ENTERPRISES -- AND TO REFOCUS REFORMS WITH THE AIM OF SECURING ADDITIONAL HELP FROM THE INTERNATIONAL MONETARY FUND.

PRESIDENT CONSTANTINESCU APPEALED FOR U-S INVESTMENTS TO HELP ROMANIA DEVELOP A HIGH-TECH INFRASTRUCTURE, A PROCESS HE SAID WOULD BE HELPED BY THE 15-THOUSAND ROMANIAN STUDENTS NOW PURSUING ADVANCED DEGREES ON THE UNITED STATES. (SIGNED)
NEB/DAG/LTD/JO
16-Jul-98 1:54 PM EDT (1754 UTC)
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Source: Voice of America

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