News from Bulgaria / Jan 26, 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] SECOND BULGARIA-E.U. ASSOCIATION COUNCIL COMING UP

The Bulgarian delegation in Brussels will be headed by Foreign Minister Georgi Pirinski. It was mandated, and its position was specified, at today's sitting of the government.

The three major fields to be discussed are connected with the strategy for Bulgaria's accession to the EU, Bulgarian-EU relations, and regional cooperation.

The sides will make an extensive review of the development of all sectors of the Bulgarian economy. Representatives of the EU member states are expected to report on the development of their countries and the opportunities for bilateral cooperation with Bulgaria. The Bulgarian side will file a document on this country's views of the association strategy, that includes figures and facts relevant to the development of the Bulgarian economy, its legislative priorities, its view on the development of relations with the EU, on a number of trade issues, regional cooperation and the upcoming EU

[02] Intergovernmental Conference.

Discussing regional cooperation, the Bulgarian side will bring to the fore the economic reconstruction of the Balkans. Bokova said Bulgaria expects its requests for preferential treatment to receive understanding and support from the European Commission and the member states.

The first Bulgaria-EU Association Council was held in May 1995. The situation has changed tangibly since then: Bulgaria has filed an application for full EU membership and a decision was taken in Madrid for launching negotiations with the associate members six months after the Intergovernmental Conference.

A number of meetings of the Bulgarian Foreign Minister are scheduled to be held within the second Association Council. Foreign Minister Pirinski is planning to meet French Foreign Minister Herve de Charette, Hans van den Broek, commissioners Mario Monti, Monika Wulf-Mathies, Neil Kinnock and the director of the centre for helping EU associate members in the implementation of the White Paper, to be set up on February 1.

[03] ONE YEAR IN OFFICE OF ZHAN VIDENOV GOVERNMENT

ASSESSMENTS OF THE CABINET'S FIRST YEAR IN OFFICE

According to Kostov, part of the BSP is nostalgic about the past, and part is openly corporate-minded and linked with financial groups and the criminal world. The UDF recently adopted a special declaration criticizing the one-year-old Socialist Government. The subject was also discussed by Kostov and President Zhelyu Zhelev who met earlier this week. The two expressed concern about the halt of reforms, the conditions for carrying out mass privatization and the Cabinet's foreign policy.

After reviewing the Government's performance, the Podkrepa Labour Confederation, one of the two largest trade union amalgamations in Bulgaria, today decided to begin preparations for protest action, quoting the mounting social tensions and violations of the tripartite dialogue on the part of the Government. According to Podkrepa leader Konstantin Trenchev, there is a glaring discrepancy between the Socialist election promises and their current actions. Podkrepa will begin talks with political and public organizations, and replenish industrial action funds with a view to financing possible strikes, Trenchev said.

Against the backdrop of negative tendencies, a few points on the credit side for the first twelve months of Videnov's Cabinet are not cause for complacency, said Boyan Choukov, leader of the extraparliamentary New Bulgaria Party. Analysing the Cabinet's performance, he pointed out the following achievements: a relatively stable lev, a lower base interest rate and the first signs of economic stabilization. On the debit side Choukov listed strong administrative pressure exerted on the private sector, the state of the manufacturing industries and social policy.

Defence Minister Dimiter Pavlov received high marks from the Rakovski Officers' Legion which sent him a letter approving his policy. By way of illustration the Rakovski Legion cited the passage of a Defence and Armed Forces Act, the adoption of a programme for reforms in the army by the year 2010, a defence doctrine and other documents on the development of the armed forces. The officers' organization commended the efforts of the Defence Ministry leaders to raise the living standards of Bulgarian officers.

[04] FOREIGN MINISTER GEORGI PIRINSKI: A SUCCESSFUL YEAR FOR BULGARIAN DIPLOMACY

The chief Bulgarian diplomat emphasized integration into European structures will remain a top priority of Bulgarian foreign policy. Other priorities are regional stability and security and regional cooperation, according to him. Pirinski pointed out the stands taken by Bulgaria on the Yugowar and in the postwar period form a good basis for 1996.

Pirinski focused on Bulgaria's Balkan policy. According to him, last year the Government had the chance to maintain close relations with all countries in the region on the basis of equality, goodneighbourliness and the community of interests, without turning a blind eye to issues on which there are differences. In answer to a question, he said the foreign ministers of Bulgaria, Greece and Romania are scheduled to hold a second meeting in Ioannina in early February. All-Balkan cooperation, the expansion of contacts with the Central European Initiative and the Black Sea Economic Cooperation group and regional cooperation with member or associated countries of the European Union will remain high on the agenda of Bulgarian diplomacy in 1996. The foreign minister also cited relations with the countries of the CIS, North America, the Far East, Africa, Latin America and Asia. He said 1996 schedules were drawn to balance different intergovernment contacts.

Pirinski discussed the interaction of institutions on foreign visits and the participation of government officials in delegations led by the President. He emphasized the importance of early information and the joint preparation of international contacts.

[05] FOREIGN MINISTER PIRINSKI CONCERNED OVER MACEDONIAN

Pirinski said Bulgaria expects information on the issue from Macedonia since there has been no reply so far. He spelled out the Government's stance in favour of the free exercise of all civil rights proceeding from Macedonia's commitments as a member of the Council of Europe.

[06] FOUR BULGARIAN MPs VOTE FOR RUSSIA'S ADMISSION

Bulgarian parliamentarian Filip Bokov, who backed Russia's candidacy, said: "Granted, Russia does face many problems, the worst of them being lack of a democratic mentality, but its efforts to come to grips with its totalitarian legacy and face the future should be supported. Otherwise Europe will be confronted by a Russia viewing its neighbours and the whole continent with suspicion."

Ivan Genov also voted for Russia's admission, saying that it meant tearing down the last remnants of the Berlin Wall. Failing that, the Council of Europe would not gain pan-European dimensions, while Russia's admission to it would guarantee the country's democratic development, Genov said.

Of the Bulgarian parliamentarians Elena Poptodorova, Ivan Genov, Filip Bokov and Yasho Minkov voted for Russia's admission and Vassil Gotsev and Yunal Lyutfi abstained.

[07] COUNCIL OF MINISTERS DECISIONS

The Cabinet approved a draft amendment to the Commercial Code which, adding Part Three: Commercial Transactions to the effective Code, provides 14 specimens for commercial transactions. They include contracts for sale, leasing, commissions, forwarding, transport, insurance, current account, licensing, commodity control, bank transactions, bills of exchange, promissory notes, cheques and others.

The amendment's entry into force will coincide with the entry into force of amendments to the Obligations and Contracts Act which will strike off a number of contracts for purely commercial businesses from the latter, Justice Minister Mladen Chervenyakov told journalists.

The Cabinet approved a Bulgarian-Armenian intergovernmental agreement on international road transport.

The Cabinet approved four programmes as basis for conducting negotiations for cultural, educational and scientific cooperation in 1996-98, with the Governments of Armenia, Iran, Vietnam and Luxemburg.

The Cabinet ministers approved a draft agreement between the Bulgarian Ministry of Labour and Social Affairs and the Russian Ministry of Labour on cooperation in the field of labour and social affairs.

The Cabinet mandated the Bulgarian participants in the forthcoming session of the Bulgaria-European Contact Group on Ferrous Metals, which will discuss the gradual lifting of the restrictions on Bulgarian exports of scrap metal to EU member-states.

The Cabinet approved a draft agreement on cooperation between the Bulgarian Commission for Protection of Competition and the Czech Ministry of Economic Competition as the basis for conducting negotiations. The agreement will be signed during the forthcoming visit to Bulgaria of the Czech Economic Competition Ministry Stanislav Belehradek.

[08] BULGARIAN MILITARY DELEGATION TO VISIT THE

[09] BUSINESS PRESS

The European Commission allocated 62.5 million US dollars for humanitarian deliveries to Bosnia and Herzegovina, "24 Chassa" writes referring to the Trade Ministry. Thirty two Bulgarian companies, including Plama, Neftochim, Himimport and Bulgartabac, showed interest in the post-war reconstruction of the region. The Trade Ministry arranged that Bulgarian companies apply for deliveries of building machines and equipment, buses, electric meters, asphalt, road signs, cables, medical, veterinary and railway equipment.

The total of 250,000 Ecu will be extended under PHARE for the implementation of projects of non-governmental organizations, "Douma" says. According to preliminary information, 30 of all 300 projects proposed by these organizations will be approved.

[10] BULGARIAN MEDICS TO ASSIST IFOR

The filed hospital capacity will be 30 to 50 bedridden patients which will be given surgical and therapeutical attention. It will have a staff of 236, of them 60 being physicians. The hospital will consist of Bulgarian-made containers and modular tents.

The experience of the Bulgarian blue helmets got from the Cambodia peace-keeping mission show that full-time military medics and nurses are best qualified to cope with such missions. Civilian volunteers will also be recruited, "Bulgarska Armiya" writes. The staff is expected to undergo one-month training in the area of Dolna Baniya (Southern Bulgaria).

The problem about the financing of the expensive project has not been decided so far. However, the leadership of the General Staff categorically refused to fund the construction, "Bulgarska Armiya" says. The Medical Agency plans to propose to the General Staff of the Bulgarian Army to form a military medical company ready to deploy an infirmary as it is in all civilized countries, the paper writes.

Meanwhile, a training centre for Bulgarian blue helmets started operating in Karlovo (Central Bulgaria) in early 1995.

[11] DEMOCRATIC LEFT MAKES STATEMENT ON GOVERNMENT

Premyanov emphasized that there are still many negative processes in the economy but for the first time in years they tend to be contained. The country's gross domestic product is expected to register a growth of 2.5 - 3 percent for 1995. Inflation, reduced more than three-fold compared to 1994, is estimated at 35 percent. The base interest rate fell from 72 percent at the beginning of 1995 to 34 at the end of the year. The recovery in the basic economic sectors is obvious, for the first time production rose by 5 percent, Premyanov said.

The floor leader of the Democratic Left stated that haulting the erosion of the average pension was a serious success of the Government of the Bulgarian Socialist Party. The number of unemployed dropped from 740,000 to 470,000 in 1995. Impoverishment was contained and even stopped for some social groups, Premyanov said. He said that the Left was not content with the results of its efforts to fight crime but emphasized that the growing of crime had been contained.

The parliamentary group of the Democratic Left supports the Cabinet's efforts to establish normal and unprivileged relations with all representatives of the Bulgarian national capital who work for the economic recovery and modernization of the country, Premyanov said. The Government was active in initiating legislation and submitted 102 of the 119 laws Parliament passed in 1995.

Bulgaria's recovery will go on despite the fact that the President [Zhelyu Zhelev] accused the Government of the Left of having not achieved even a single positive result, Premyanov said. The process will continue despite the plans of the President and the leader of the opposition Union of Democratic Forces, Ivan Kostov, to destabilize the Government. At a meeting with Kostov on Monday President Zhelev promised to back the opposition's efforts to bring down the Socialist Government.

The Democratic Left will keep its campaign promises, it will make a careful analysis of its performance and will help the Government to improve its performance, Premyanov stated in conclusion.

[12] NATIONAL STATISTICAL INSTITUTE REPORTS FAVOURABLE ECONOMIC RESULTS

The private sector made up about one-third of the GDP, Prof. Karamfilov said. The gross added value in industry was 228,000 million leva, in construction 43,000 million leva, in agriculture and forestry 98,000 million leva, in transport 44,000 million leva and in trade 90,000 million leva.

The NSI reported a 7% growth of output in the private and public sector in 1995 compared to 1994. 1995 production amounted to 1,350,000 million leva, inclusive of agriculture. In all branches excluding agriculture, production totalled 1,110,000 million leva, 6.2% up from the previous year. The upward trend is mostly attributable to the private sector where output grew by over 25%.

In industry, the output rose by 5% to fetch 770,000 million leva. Industrial production in the private sector grew by over 50%, making up 12% of the total industrial production. Private entrepreneurs were most active in the food processing industry where production rose by 45%. It was ahead of mechanical engineering, electrical engineering and electronics, that reported a 23% growth each.

There were striking sector imbalances in the economy, said Prof. Karamfilov. Two sectors - the chemical and oil processing industry - accounted for as much as three-quarters of the production growth in January-December 1995. Since both industries are heavily dependent on imported raw materials, any changes of the situation on international markets threaten to affect the economy of this country as a whole, said the NSI Director. The production growth was 14.7% in the pulp and paper industry, 10.1% in the production of electricity and heating, and 8.9% in the ferrous metallurgy.

There was a dramatic slump of production in the printing industry (13.7%), followed by non-ferrous metallurgy (6.5%) and light industry (2.2%).