News from Bulgaria / June 27, 95

EMBASSY OF THE REPUBLIC OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

BULLETIN OF NEWS FROM BULGARIA

JUNE 27, 1995


CONTENTS

  • [01] PRESIDENT ZHELEV LEAVES FOR CANNES

  • [02] INTERVIEW - JOVANOVIC

  • [03] DEPUTY PRIME MINISTER KIRIL TSOCHEV IN IRAQ

  • [04] CRITICISM OF THE CABINET

  • [05] POWER ENGINEERING

  • [06] TOP ENERGY BULGARIAN-RUSSIAN JOINT VENTURE

  • [07] MRF LEADERS' RESIGNATION DEMANDED

  • [08] FARMERS' UNREST

  • [09] BUSINESS PRESS

  • [10] BULGARIA, ISRAEL: BUSINESS CONTACTS

  • [11] BULGARIAN-IRAQI COOPERATION

  • [12] BULGARIA, THE CZECH REPUBLIC AND SLOVAKIA


  • [01] PRESIDENT ZHELEV LEAVES FOR CANNES

    Sofia, June 26 - President Zhelyu Zhelev is leaving for Cannes tomorrow to attend the June 27 meeting of European Union leaders with the leaders of the associated countries.

    In Cannes President Zhelev is expected to meet the heads of state of Lithuania and Latvia, the President's press office said.

    On the Bulgarian delegation is Foreign Minister Georgi Pirinski, Mrs. Raina Karcheva, President's advisor on European integration told BTA.

    In his address Dr. Zhelev is expected to confirm Bulgaria's position, already stated during the drafting of the White Paper, that the philosophy and the methods of Bulgaria's transition coincide in their basic principles with the requirements for joining the European Union, Mrs. Karcheva said. The Bulgarian President will restate Bulgaria's political commitment to the association processes and this country's will to walk its independent way to full membership through law-making and forming the respective structures.

    Bulgaria should not foot-drag too much in applying for full membership in the European Union, because most associated states have already lodged applications or have considered shorter time limits to this end, the President's advisor stated. According to Mrs. Karcheva, Prime Minister Zhan Videnov has on certain occasions said that Bulgaria will submit an official request for membership in the EU immediately after the EU Intergovernmental Conference in 1996. Although the EU has officially stated it would treat equally all candidate states, irrespective of the date they submit applications, we shall not artificially split from the other candidates, the President's advisor said.

    [02] INTERVIEW - JOVANOVIC

    PRESS REVIEW- Sofia, June 26

    "We Expect Revival in Relations with Bulgaria After the Sanctions" caps an extensive interview with Yugoslav Foreign Minister Vladislav Jovanovic in "Douma". Jovanovic says that the Yugoslav side perceived the recent visit by Bulgarian Foreign Minister Georgi Pirinski to Belgrade as "heralding the readiness of the two countries to intensify and impart new meaning to their relations of cooperation in order to contribute to the stabilization of the situation."

    "As a neighboring country we are feeling the positive consequences of the stand of the new Bulgarian Cabinet on the Yugoslav crisis, " Jovanovic said, stressing that the Yugoslav side appreciates the stand of the Government on the sanctions.

    Jovanovic admitted the existence of a Bulgarian national minority in the FR of Yugoslavia but said that the issue was needlessly dramatized by some parties and persons in Bulgaria. Asked about recent claims of the existence of a Serbian minority in Bulgaria, which triggered strong reactions in Bulgaria, Jovanovic said that the issue was "artificially blown up" and that he did not know who stood to gain from this.

    [03] DEPUTY PRIME MINISTER KIRIL TSOCHEV IN IRAQ

    The press covers Deputy Prime Minister and Trade Minister Kiril Tsochev's visit to Baghdad at the head of a delegation of senior officials representing the ministries of trade, industry, finance and energy. Tsochev was received by Iraqi President Saddam Hussein.

    Citing Reuters reports referring to Iraqi newspapers, the dailies say that Tsochev called on the UN to lift its sanctions against Iraq. The official Iraqi News Agency said that prior to the 1990 UN trade sanctions, Iraq was one of the largest outlets for Bulgarian exports.

    "The cabinet's desire is commendable but a bit late, " reads a signed commentary in "Continent". Its author goes on to say that business people and politicians of many countries, Western ones including, began visiting Iraq long ago.

    "Instead of stand-by loans Bulgaria may get a 'good-bye' from the World Bank, " the editor-in-chief of "Demokratsiya" says in a front-page commentary.

    [04] CRITICISM OF THE CABINET

    Interviewed by "Troud", the leader of the Confederation of Independent Trade Unions in Bulgaria (CITUB) Krustyo Petkov says that the cabinet's major weak point is its style of governance by confrontation and force. "The cabinet will lose its allies and supporters if it does not change, " Petkov says. CITUB and the other most influential trade union, the Podkrepa Labor Confederation, declared June 27 a day of protest against poverty, insecurity and restoration. The two unions strongly oppose the cabinet's incomes policy. "Troud" says, however, that some predict the rally's failure and the trade unions' collapse.

    [05] POWER ENGINEERING

    The National Electricity Company (NEC) will cut power supply to 50 large state-owned companies due to unpaid bills, "24 Chassa" reports on its front page. Recently the Kremikovtsi metallurgical combined works (near Sofia) was left without electricity for several hours which inflicted great losses on the plant, according to its management.

    The NEC black list is topped by the Arsenal ordnance factory in Kazanluk (Southern Bulgaria), the Gorubso - Madan (Southern Bulgaria) mines and Agrobiochim - Stara Zagora (Southern Bulgaria), according to "24 Chassa". By the end of May state-owned enterprises owed the NEC 2, 500 million leva (USD 1 exchanges for 66.063 leva).

    On its front page "Douma" cites a televised interview with Prime Minister Zhan Videnov who said that "the state of power engineering is turning into a major national problem". The Prime Minister was categorical that the responsibility of the former management of the NEC, headed by Nikita Shervashidze who was dismissed several weeks ago, should not be passed over in silence.

    According to "Standart News", electricity prices may go up by one lev as of September but this rise would not affect old- age pensioners and the poor.

    [06] TOP ENERGY BULGARIAN-RUSSIAN JOINT VENTURE

    The scandal over Top Energy, the Bulgarian-Russian gas joint venture set up in late May, will be resolved on Thursday, "Standart News" says in a front-page report. The cabinet will announce the changes in Top Energy's senior management once Deputy Prime Minister and Minister of Trade Kiril Tsochev returns from Iraq, the daily says. The company will start operating in the autumn.

    According to "Standart News", former prime minister Andrei Loukanov, who is one of the company's top managers, visited Athens without notifying Prime Minister Zhan Videnov and violated an order issued by Prosecutor General Ivan Tatarchev. "Standart News" claims that during his visit to Greece Loukanov held talks with officials of the companies of oil barons John Latsis and Dimitris Kopelouzos. The two Greeks hold a stake in the TransBalkan joint venture which will build the Novorossiisk-Bourgas-Alexandroupolis oil pipeline.

    Citing the Official Gazette, "24 Chassa" says that Bulgaria's National Gas Company, the would-be partner of the Russian Gazprom in the joint venture, is holding a general meeting on June 26.

    [07] MRF LEADERS' RESIGNATION DEMANDED

    The conference of the ethnic Turks' Movement for Rights and Freedoms (MRF) held over the weekend and the demanded resignation of leaders Ahmed Dogan, Yunal Lyutfi and Osman Oktai receive wide coverage in the press.

    "Ahmed Dogan brought under control the MPs' discontent for a time, " says "Standart News". MRF representatives said that Dogan and Oktai would have been unhorsed if there had been a secret ballot.

    "The eve of the local elections is the worst time for heads to roll, " said Lyutfi quoted in "Douma". "No one can call for my resignation, " said Dogan quoted in "Continent". A signed comment in the daily says this is the first time that Dogan, Lyutfi and Oktai were urged to resign. "The mutiny on deck was crushed, but the holds are seething with discontent, " the author says.

    "Dogan proved there is no alternative leader, " says "Troud", adding that "the conflict between young and old leaders is smoldering and could burst into flames any time".

    [08] FARMERS' UNREST

    Mass protests are sweeping the country after the Constitutional Court invalidated 19 amendments to the Land Act voted by the Socialist-led majority, says "Zemya" in a front- page story. According to the daily, "the Constitutional Court blocked the land reform".

    "The Constitutional Court did not block the reform" runs a headline in "Demokratsiya". Former agriculture minister Roumen Hristov, now advisor to the President, is quoted as saying that the problem does not lie in the rescinded provisions but in the fact that liquidation councils will be automatically struck off the court registers.

    "Obviously, ignorance about land regulation also prompted the Court to rule against land consolidation, " says a signed commentary in "Douma".

    "Reproaching the Constitutional Court, the Left missed a good chance to sort things out, " says a signed commentary in "Continent".

    The regional directorate of the interior in Montana (Northwestern Bulgaria) has turned into a division of a private security firm, says a front-page story in "Demokratsiya". More than 40 companies and cooperatives pay protection money to the police chief in Montana.

    The dailies mark the 50th anniversary of the United Nations: "50 years after its foundation the UN still has a future" ("Bulgarska Armia"), "On its anniversary the UN faces bankruptcy" ("Douma"), "Boutros-Ghali is optimistic but the UN is in dire straits" ("Continent").

    The "168 Chassa" weekly runs an interview with NATO Secretary General Willy Claes. "We would hail a neutral Bulgaria, " says Claes.

    The dailies write about the Cannes summit of European Union leaders, which starts today, and their talks with the leaders of the associated countries tomorrow. "Demokratsiya" reports that the summit will be held amid tight security". "There are many reasons to follow closely the Cannes summit, " says a signed comment in "Douma".

    Turkish diplomats are carefully preparing the visit to Bulgaria by Turkish President Suleyman Demirel in early July, says "Continent". Turkish Foreign Minister Erdal Inonu is arriving in Sofia on Wednesday. This is the fifth visit, including one private visit, by a Turkish senior official in slightly over a month, the daily recalls.

    The press extensively covers the problems of football star Hristo Stoichkov, the 1994 European Footballer of the Year, who is likely to leave Barcelona. Two Italian clubs are bidding for him.

    [09] BUSINESS PRESS

    Sofia, June 26 - In 1998 transport will account for 7% of the Gross Domestic Product, according to a draft program for the management of this branch covering 1995-1998. The draft will be discussed at the Ministry of Transport today. The expected general production growth of 4% may increase the relative share of transport from its present 6.6% to 7% in three years. Albeit growing expenditures, the transport branch is expected to remain a profit maker.

    Bankers of the Bulgarian National Bank (BNB, the central bank) are concerned by the expansion of commercial bank whose branches in the country are multiplying, "Standart News" writes. The BNB does not have sufficient information on the state of the separate branches and offices of the lending institutions.

    "24 Chassa" and "Standart News" write that the BNB is considering withdrawal of licenses from financial houses. The decision is expected to be adopted today. The closing down of financial houses is provoked by their failure to observe bank regulations, "Standart News" cites BNB bankers as saying.

    Bulgaria's foreign exchange reserves exceed USD 1, 500 million, "Troud" and "Standart News" report, citing the central bank. Thus this country fully meets the requirements of the International Monetary Fund (IMF) which a year ago set this figure as a condition for extending new loans, "Troud" writes. The reserve increased thanks to BNB purchases of foreign exchange on the market. The BNB has bought USD 540 million since the beginning of this year.

    The US dollar will remain stable between 66-66.20 leva, according to several dailies. The dollar may drop below 66 leva despite the latest decrease in the base interest rate, according to "Troud".

    The BNB may reduce the base interest rate by 2-3 points more this week, according to bankers cited by "Troud". This will be motivated by the low inflation and stable lev.

    Bulgaria exports over 85% of the purchased gathered wild-growing mushrooms to Italy and France, "Troud" reports. They are purchased at 120 leva/kg (less than USD 2 at the current exchange rate).

    The Ministry of Agriculture will propose 55% customs duties on eggs and poultry imports, "24 Chassa" writes. At a conference in Bourgas (on the Black Sea) experts approved measures for saving this branch.

    [10] BULGARIA, ISRAEL: BUSINESS CONTACTS

    Sofia, June 26 - Trade between Bulgaria and Israel totaled 30 million dollars in 1994, Peicho Lalev, Chairman of the Bulgarian-Israeli Chamber of Commerce and Industry, said here today at a meeting with Israeli businessmen. Bulgaria has a 14 million dollar trade surplus with Israel, but this is way below the two countries' potential, Lalev said.

    The Israeli delegation is headed by Moshe Behar, Chairman of the Israeli-Bulgarian Chamber of Commerce and Industry, founded in 1993. The Israeli businessmen are here to establish contacts with Bulgarian companies and to discuss the intergovernmental agreements due to be signed in October: on mutual investment protection, on the avoidance of double taxation, on tourism and agriculture, and on the setting up of a free trade zone.

    The Bulgarian-Israeli Chamber of Commerce and Industry was founded in July 1993 and has 120 members. So far only Bulgarian delegations have made visits to Israel organized by the two Chambers.

    [11] BULGARIAN-IRAQI COOPERATION

    Sofia, June 26 - Ended the 22nd session of the Bulgarian-Iraqi Committee on Economic, Industrial, Commercial and Technological Cooperation held in Baghdad, the Government Press Office announced.

    The Bulgarian governmental delegation to the session was led by Kiril Tsochev, Deputy Prime Minister and Minister of Trade and Foreign Economic Cooperation. The delegation included Minister of Industry Kliment Vouchev, deputy ministers, chief executives and experts of companies and organizations that worked actively with Iraq before the United Nations Security Council embargo.

    The Iraqi governmental delegation was headed by Lt. Gen. Hussein Kamilal-Majid, Minister of Industry, Minerals and Military Industrialization and Co-Chairman of the Committee for Iraq. Members of the delegation were ministers, deputy ministers, advisers at the Presidency and at the ministries.

    The two official delegations held a plenary meeting. Besides, by proposal of the Bulgarian side, the intergovernmental Committee had an extended session that worked on three areas: trade and finance, industrial cooperation and the transfer of technologies, engineering and transport.

    The talks focused on three major topics: confirmation of the Iraqi debt to Bulgaria and a scheme for its settlement by delivering oil to Bulgaria after the lifting of UN sanctions; the possibilities of Bulgaria supplying humanitarian goods, whose export is not banned, to Iraq before the embargo is lifted; negotiating the transfer of technologies and know-how in return for oil; the construction of complex engineering facilities after the lifting of UN sanctions.

    Kiril Tsochev met Iraqi Minister of Agriculture Karim Hassan Rada, Minister of Housing and Reconstruction Mahmud Dhiyab al-Ahmed and Minister of Transport and Communications Ahmad Murtada Ahmad Khalil.

    The Bulgarian governmental delegation had talks with Iraqi President and Prime Minister Saddam Hussein, Deputy Prime Minister Tariq Aziz and with members of the Council of Ministers.

    Today the Bulgarian governmental delegation will visit Jordan, the Government Press Office said. The program includes talks with Jordanian senior officials on current problems of bilateral trade and economic cooperation.

    [12] BULGARIA, THE CZECH REPUBLIC AND SLOVAKIA

    Sofia, June 26 - A group of Bulgarian experts had talks on the establishment of a free trade zone among Bulgaria, the Czech Republic and Slovakia in Prague last week.

    "This was the first stage of negotiations and several rounds are yet to be held, " Nikolai Bahanov, Head of the Countries in Transition Department with the Ministry of Trade and Foreign Economic Cooperation, told a news conference today. It is the sides' desire that the free trade zone begins to operate on January 1, 1996. Sixty percent of the goods traded among the three countries will be duty free.

    "The memoranda on the liberalization of trade Bulgaria signed with the Czech Republic and Slovakia and Bulgaria's settling its trade deficit in transferable roubles to the two countries are good prerequisites for reaching a final agreement, " Nikolai Bahanov said. The free trade zone agreement would have to be approved by the Bulgarian Government and to be ratified by Parliament.

    The talks are held in several working groups: on the text of the agreement, on industrial concessions, on farm products and on statistical and technical matters. Representatives of the customs authorities are not included in the present stage of negotiations.

    According to Mr. Bahanov, Bulgaria intends to open negotiations for the establishment of a free trade zone with Rumania, Poland and Hungary too.


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