News from Bulgaria / Jan 16, 96

From: bulgaria@access1.digex.net (Embassy of Bulgaria)

Bulgarian Telegraph Agency Directory

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA-BULGARIAN TELEGRAPH AGENCY

BULLETIN OF NEWS FROM BULGARIA

CONTENTS

[01] BULGARIA MAKES SPECIFIC COOPERATION PROPOSALS TO IFOR

Defence Minister Dimiter Pavlov sent a letter to General George Joulwan, Supreme Allied Commander Europe. The minister expressed Bulgaria's willingness to support the IFOR mission.

Specific Bulgarian proposals to assist the IFOR have been presented in a letter by the Chief of General Staff of the Bulgarian army, Colonel General Tsvetan Totomirov, addressed to General Sir Jeremy MacKenzie, Deputy Supreme Allied Commander Europe. The proposals include sending instructors to train groups for defusing ammunition, providing a field hospital with 30 to 50 beds and civilian personnel, providing specialized medical assistance and treatment for IFOR personnel at the military medical academy in Sofia, admission of IFOR personnel to Bulgarian military sanatoria, repair services, maintenance services and supply of foods and other goods to the IFOR.

In connection with a NATO inquiry about the possibility of providing a group of Bulgarian military engineers, the Spokesman recalled this issue is within the competence of Parliament. For the Government to move the issue to Parliament, the Bulgarian side would like to jointly clarify important aspects of the participation of such a unit in the operations. Bulgaria would like to focus on the clarification of three issues: the possible range of the unit, the lack of budgeted reserves for its financial support, and the location of the group, with a view to averting risks resulting from involvement in Yugoslavia of neighbouring countries such as Bulgaria.

[02] SERB PARLIAMENTARY DELEGATION IN BULGARIA

The delegation, headed by Radmilo Bogdanovic, Under-Chairman of the Chamber of the Republics (the upper chamber) of the Yugoslav Federal Assembly, is on a two-day visit to Bulgaria.

Today, the Serb parliamentarians held talks with members of the Committee on Foreign Policy in the Bulgarian National Assembly on the need for the further development of the cooperation in all spheres between Bulgaria and the Federal Republic of Yugoslavia. "The prospects before the Bulgarian-Yugoslav relation are very good and we have to do our best to develop them, irrespective of the governments in office or the difficulties experienced by the two countries," Foreign Policy Committee Chairman Nikolai Kamov said.

Later today, the Serb delegation met with Bulgarian Foreign Minister Georgi Pirinski. Intensification of bilateral relations after the lifting of the U.N. sanctions against former Yugoslavia and the expansion of the Bulgarian-Serb contacts at government level were in the focus of the talks with Minister Pirinski. The discussion also addressed the joint efforts which seek to overcome the problems related to the Bulgarians of the Western Outlands (a territory now in Southeastern Serbia which Bulgaria, defeated in World War One, lost to Serbia under the 1919 Treaty of Neuilly), as well as the possibility for their learning Bulgarian and receiving Bulgarian books.

The talks also discussed the opportunities for the construction of the infrastructure in the Balkan region.

Later today, the Serbian parliamentary delegation met with President Zhelyu Zhelev. During the meeting, the sides agreed on the need for broad cooperation between Bulgaria and the Federal Republic of Yugoslavia, Bogdanovic told journalists.

The Serbian parliamentarians expressed their gratitude for the understanding shown by the Bulgarian people, President Zhelev and the government during the U.N. sanctions against former Yugoslavia, Bogdanovic said. Answering a journalist's question, he said that the talks also discussed the situation of the Bulgarians living in the Western Outlands. According to Bogdanovic, the meeting did not discuss a possible visit to the Federal Republic of Yugoslavia of President Zhelev.

Milan Komnenic, an opposition MP in the Serb Parliament, told President Zhelev that the rights of the Bulgarian minority in the Western Outlands should not be protected in paper only, Kamov, who took part in the meeting, said. This issue should be resolved on a bilateral basis, the Serb MP reportedly said.

Later today, the Serb parliamentary delegation was received by Prime Minister Zhan Videnov, the cabinet's press office said. During their talks, the officials stressed the two countries' interest in the further expansion and development of the relations between Bulgaria and Yugoslavia and their particpation in the post-war economic reconstruction of the Balkan region.

The sides stressed the need for the further promotion and intensification of the parliamentary and government contacts, as well as the importance of a future meeting of the two countries' prime ministers. The participants in the meeting stressed that there already are conditions for the setting up of Bulgarian-Yugoslav joint ventures, movement of capital and goods, and direct economic ties between economic agents, the press office said.

Videnov may visit the Federal Republic of Yugoslavia after the meeting of the joint trade and economic commission which has been scheduled to take place between February 15 to 20, Kamov said. He went on to say that today's talks between the Serb guests and Videnov discussed the prospects of a bilateral meeting at the level of prime ministers. The sooner the visit takes place, the better, but it will be even better if it is well prepared, Kamov quoted Videnov as saying.

The Serb delegation met with Deputy Prime Minister and Minister of Economic Development Roumen Gechev. The MPs said the two countries should join their production potentials to gain a stronger position in the EU markets within a shorter time. The sides agreed that as host of the upcoming annual general meeting of the European Bank for Reconstruction and Development, Bulgaria will help the Federal Republic of Yugoslavia re-establish its contacts with the international financial institutions and the world business community.

[03] BUSINESS PRESS

The power system will open to private companies under a project on reform in the sector, "24 Chassa" writes. Roumen Ovcharov, Deputy Chairman of the Energy Committee, said that the project will be completed by the end of January. The first step in its implementation will be the privatization of the National Electricity Company, the paper writes referring to informed sources.

Today Bulgarian trade experts are negotiating the export of metals to EU, "Standart News" writes. The requirement for both export and import licences is still effective, the paper recalls.

The managements of the Slavyani Bank, First Eastern International Bank, Capitalbank, Trakiya Bank and Bulgarian Universal Bank decided to set up a consortium, "Standart News" writes. The purpose is to provide co-financing of projects and other bank services.

A computer network will connect tax services as of April 1, 1996, "24 Chassa" says referring to Deputy Finance Minister Bisser Slavkov. The project is financed by the PHARE program.

The Granitoid cement plant in Batanovtsi (Western Bulgaria) will export clinker to Serbia, "Troud" writes. A contract for the monthly export of 10,000 tons of this product is expected to be signed within a week, the paper says.

[04] FREE TRADE ZONES CHIEFS INSIST ON LIBERALIZATION OF RULES

The first free trade zones in Bulgaria were set up eight years ago. Bourgas, Varna, Dragoman, Rousse, Plovdiv, Svilengrad and Vidin are the cities which have free trade zones. Turnover in 1990 to 1994 amounted to 364 million leva. Attracting foreign investment and intensification of Bulgarian exports are two of the key priorities of the free trade zones' activity. To ensure this, it was initially envisaged that the companies be exempt from taxes and duties for five years. Later, the grace period was revoked. A bill was submitted for discussion in Parliament banning the export, import and production in the free trade zones of a number of excisable goods such as alcohol, cigarettes and oil products. According to the sponsors of the bill, these are the goods that account for most violations of the law in the zones.

The Rousse (on the Danube) Free Trade Zone is one of the first such zones in Bulgaria. Its tangible assets amount to more than 160 million leva; foreign investment in the Rousse Free Trade Zone totals 1,000 million leva. The state subsidies granted to the zone amount to 27 million leva, while taxes and duties paid by it top 30 million leva. According to data available from the management of the Rousse Free Trade Zone, gross proceeds in it so far amount to 135 million leva, while profits reach 35 million leva.

According to Nedelcho Draganov, Director of the Free Trade Zone in this country's second biggest city of Plovdiv, the net profit generated by the institution in the past five years amounts to 40 million leva, which is as much as the state subsidies provided to it. Though one of the newly established zones, the Plovdiv Free Trade Zone is one of the most rapidly developing ones. The taxes paid by it to the budget amount to 62 million leva, Draganov says.

According to the zones' directors, no more than 10-15 per cent of the goods remain in the zones; the rest 85-90 per cent of the goods are re-exported. The zones' directors say also that return on capital investment in the institutions can be achieved after about a year and a half. According to them, the past few months saw the introduction of strict rules and sanctions for offenders in the zones. Revoking of the preferential terms would put an end to production in the free trade zones, the zones' directors say.

[05] PHARE SUPPORT FOR BULGARIAN POWER INDUSTRY

The plant's nuclear safety was discussed by managers of Bulgarian energy agencies and the European Commission's First Directorate in Brussels last week. Yanev said they had been invited by Sipke Bouwer, Director at DG-IA/B.

The sides discussed a report on the possibility of alternative energy supplies to Bulgaria, drawn up by EU consultants and experts of Bulgaria's National Electric Company, so as to expedite further checks of Unit One of the nuclear power plant. Last autumn the EU countries presented a demarche to the Bulgarian government against the restarting of Unit One on safety grounds. CPUAE gave the go-ahead for its restarting, being the only competent authority to do so under Bulgarian law.

The report rules out alternative supplies at this point in time, Yanev said. It contains three options: import of electricity from Bulgaria's neighbours, increasing the output of the Varna thermal power station in Eastern Bulgaria, and allocating more fuel to thermal power stations at industrial enterprises. Yanev said the sides agreed to examine the options, which will be the purpose of a visit by EU consultants to Bulgaria this week.

Yanev recalled that the 440-MW units of the Kozlodoui nuclear power are facing a series of repairs this year. Unit Three is to be shut down by January 20, followed by Units One and Four in the spring and Unit Two in the autumn.