News from Bulgaria, 96-08-29

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From: Embassy of Bulgaria <bulgaria@access1.digex.net>

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

CONTENTS

[01] FOREIGN MINISTER PIRINSKI'S MEETINGS IN WASHINGTON D.C.

[02] SLOVAK DEFENCE MINISTER SITEK ENDS VISIT TO BULGARIA

[03] CHIEF OF GENERAL STAFF LEAVES FOR ROMANIA

[04] BUSINESS PRESS

[05] HALF OF QUANTITY OF GRAIN NEEDED TO MEET DOMESTIC DEMAND PURCHASED

[06] TURKISH PLANE MAKES EMERGENCY LANDING IN SOFIA AFTER FALSE BOMB TIP-OFF

[07] WEDNESDAY NEWS BRIEFS

[01] FOREIGN MINISTER PIRINSKI'S MEETINGS IN WASHINGTON D.C.

"During the two days of meetings in Washington, most important were the talks with Acting Secretary of State Talbott, with the Deputy Assistant to the President for National Security Affairs Berger, and in the Treasury Department," Pirinski said tonight in an interview on national radio.

He assessed in positive terms the development of bilateral relations between Bulgaria and the US in the last few months. Pirinski cited as a typical example the act of the two houses of Congress granting a permanent most favoured nation status to Bulgaria, signed into law by President Clinton in late July. The two countries share a willingness to promote political dialogue, and economic relations and cooperation in culture and education, he also said.

Topics discussed included regional stability in Southeastern Europe, economic reform and measures for restructuring major sectors of the Bulgarian economy, he said.

Pirinski said his talks with IMF Deputy Managing Director Fisher and with World Bank officials indicated the international institutions focus special attention on the Bulgarian Government's efforts to comply with parameters and criteria specified in the agreement with the IMF and the agreements under preparation with the bank.

At the meeting with Deputy Assistant to the President for National Security Affairs Berger the two sides agreed that the positive development of bilateral relations is a good basis for their further promotion, including by signing cooperation agreements in the economic field which would support the reform policy in Bulgaria, a Bulgarian Foreign Ministry press release said. Mr Berger praised Bulgaria's consistent, peaceful and constructive policy in the Balkans and the success of the Sofia meeting on regional security, stability and cooperation in Southeastern Europe. The two sides expressed readiness for further active cooperation aimed at establishing a climate of security and stability in the region through the implementation of infrastructure projects, cooperation within the framework of PfP, etc.

During an hour's meeting with Geoffry Shafer, Under Secretary of the Treasury, Pirinski discussed in detail the policy and measures of the Bulgarian Government for financial stabilization, rehabilitation and restructuring of the banking sector and for structural reform.

The US official expressed support for Bulgaria's consistent efforts for real reform, and stressed it can achieve far better rates of growth than in the last few years (1995). The prerequisites for this are the consensus and support for reform and this country's skilled and experienced human resources.

The sides stressed the opportunities for signing an agreement on the avoidance of double taxation, the Foreign Ministry said.

[02] SLOVAK DEFENCE MINISTER SITEK ENDS VISIT TO BULGARIA

The Bulgarian and Slovak defence ministries are implementing the agreement signed last year, Minister Pavlov said. Cooperation between the two ministries includes activities in the field of air forces, antiaircraft defence, and engineering. The two countries have signed a contract for the repair of Bulgarian aircraft in Slovakia and of Slovak airplanes in Bulgaria, Minister Pavlov said.

Minister Sitek arrived in Bulgaria on Monday at the invitation of the Bulgarian Defence Minister. The Slovak guest held talks with Minister Pavlov. Today, Minister Sitek was received by National Assembly Chairman Blagovest Sendov and Prime Minister Zhan Videnov.

During his meeting with Premier Videnov, Minister Sitek spoke about the progress of the military reform in Slovakia. Prime Minister Videnov stressed that the problems of the transition, the economic reform, as well as the two countries' invariable orientation towards integration in the European political and military structures, provide a natural basis for the further promotion of the cooperation between Bulgaria and Slovakia, the Cabinet's press office said. The traditionally good ties between Bulgaria and Slovakia are growing rapidly, Prime Minister Videnov said.

The talks between Minister Sitek and parliamentary Chairman Sendov focused on legislation problems as regards the army's maintenance and modernization and the officers' status. The two officials agreed that there are favourable prerequisites for the further promotion of the military-technological cooperation between the Bulgarian and Slovak armies.

Later today Minister Sitek departed from Sofia.

[03] CHIEF OF GENERAL STAFF LEAVES FOR ROMANIA

General Totomirov is scheduled to meet Defence Minister Gheorghe Tinca and visit the Romanian military academy and military units.

"The purpose of the visit is to plan new confidence-building measures between the two armies," General Totomirov told BTA before his departure. He said he would negotiate for cooperation in training, joint exercises, repairs on a reciprocal basis and mutual assistance.

A December 1995 document on complementary confidence- building measures between the two countries is being strictly implemented, said General Totomirov.

[04] BUSINESS PRESS

Throughout the period the real interest rate on loans was less than 1 per cent, which means that the companies have been subsidized by the banks through negative interest rates, Prof. Petkov writes.

In his view, the actual reason for the sustained losses is the retaining of the state's interest in manufacture and the lack of real privatization. The state-owned companies which prevail in manufacture have no interest, responsibility or resources for technical renovation, the economist says. The new programmes for rehabilitation of the losing enterprises will have the same effect as those applied over the past five years, he believes.

In his view exchange of debt for equity on a large scale is the recipe for overcoming the crisis. According to Prof. Petkov's calculations, one third of the assets of the state-owned companies can pay 50 per cent of the home borrowing of the state. This will result in over 50 per cent less budgetary expenses on the servicing of the public debt and consequently, in a 25 per cent cut of the total budgetary expenses. According to the economist there are no objective obstacles to taking this measure. In his view the only impediment is the insensible and self-destructive policy of all governments so far.

Public sector production declined 3 per cent in July, the financial daily "Pari" says, quoting the National Statistical Institute. In the same period the private sector showed 13 per cent growth. Output worth 861,000 million leva at current prices has been registered since the beginning of the year. Business managers have given increasingly negative estimates about the economic situation in the country, the daily writes.

South-Korean Daewoo Corporation will purchase 67 per cent of the Sofia hotel Sheraton Sofia Hotel Balkan for 22,300 million US dollars, the press says. The draft contract was approved yesterday by the Supervisory Board of the Privatization Agency and the Cabinet is to pronounce itself on it tomorrow.

Under the contract Daewoo will pay the sum in cash in two tranches within a month after the signing. The company commits itself to invest 5 million over the next five years. The state's contract with Sheraton expires in 2001. Under a special clause Daewoo is to pay all expenses in case the contract is terminated before the specified date.

The fixed assets of Sheraton-Sofia were estimated at 537 million leva at the end of 1995. The partnership's own capital is 589,689,000 leva. It has no loan obligations. In 1995 Sheraton showed the largest turnover of all state-owned tourist companies - 10.6 million US dollars.

[05] HALF OF QUANTITY OF GRAIN NEEDED TO MEET DOMESTIC DEMAND PURCHASED

A total of 5.3 million tonnes of grain are needed to meet total domestic demand. Experts have estimated that Bulgaria will need to import about 1.8 million tonnes of grain. According to Trendafilov, however, it is still early to analyze grain demand and supply since the information received in the Ministry is preliminary and insufficient. Trendafilov said that the Ministry is yet to see how much grain has been given to farmers in return of use of land by the state, how much has been given to farmers for household use, as well as the amount of grain purchased by the nearly 300 small private mills which are not controlled by the Ministry.

The programme for the development of agriculture, drafted by the Ministry, envisages that in the autumn, farmers have to sow 1.15 million hectares with wheat, 400,000 ha with barley and 500,000 with maize. The Agriculture Fund extended a loan of 4,700 million leva, 50 per cent of which in preferential terms, for the autumn sowing. Experts estimate that nearly 50,000 million leva are needed for the sowing.

[06] TURKISH PLANE MAKES EMERGENCY LANDING IN SOFIA AFTER FALSE BOMB TIP-OFF

During a check of the luggage for an explosive the security authorities found a small package whose owner was unknown. Interior Ministry experts are now making it safe, said Sofia airport manager Danyo Adanev.

It turned out later that the alarm was false. The package with the identified owner proved to be a cardboard box containing computer spare parts and bicycle gear, said Interior Ministry Secretary Ivan Boyadjiev. The check also found a green suitcase bound for Istanbul as lost luggage. It was made safe as well and was found to contain women's clothes.

The luggage, plane and passengers were thoroughly checked. The plane is about to leave for Istanbul any time now, said the airport manager. The decision to that effect was personally taken by the flight commander who has signed a declaration stating he takes full responsibility for this decision.

Of the 39 passengers, 25 were Turks including four expelled from Austria. There were also seven Austrian and seven Kuwaiti citizens.

At 14:37 hrs local time the air traffic control authorities were tipped-off by the Vienna airport about a bomb planted in the Istanbul- bound Turkish Airbus A 310. The crew of the plane was immediately informed and it asked permission for emergency landing at Sofia airport. At 14:58 it landed successfully.

After the landing of the plane, the Bulgarian Interior Ministry got going an emergency plan of action. An emergency team was appointed to include experts of the Interior Ministry, airport authorities and the Regional Directorate of the Interior.

The airport has been initially informed there was a terrorist on board, which was later confirmed when contact with the plane was established. However, a check after the touchdown found no terrorist in the plane, said Ivan Boyadjiev.

[07] WEDNESDAY NEWS BRIEFS

Vietnamese ambassador to Bulgaria Ho Xo Viet gave a news conference today on the occasion of the 51st anniversary of the independence of Vietnam, celebrated on September 2. Ambassador Viet also spoke of this year's visits to Vietnam by Prime Minister Zhan Videnov and National Assembly Chairman Blagovest Sendov.

There is a two-fold blockade against Cuba - economic and informational, said Cuban Ambassador here Ms Teresita Capote Camacho at a news conference today.

Luchezar Kostov, newly appointed Chairman of the Committee for Peaceful Uses of Atomic Energy, made his first working visit to the Kozlodoui N-plant (on the Danube) this afternoon.

A six-member delegation of the Ministry of Civil Affairs of the People's Republic of China, led by First Deputy Minister Su Ruising, is visiting Lovech (Northern Bulgaria). The purpose of the visit is to study European experience in social insurance and care for handicapped children and the elderly as applied in Bulgaria.

Representatives of the campaign headquarters of the Bulgarian Socialist Party (BSP) filed an appeal at the Supreme Court against yesterday's decision of the Central Electoral Commission refusing registration to the presidential and vice presidential candidate of the democratic Left - Pirinski and Marazov.

The majority at the Central Electoral Commission (CEC) is scandal mongering, Union of Democratic Forces (UDF) deputy floor leader Ekaterina Mihailova said after acquainting herself with the motives of the CEC for refusing registration to the candidate presidential tandem of the United Democratic Forces. The Bulgarian Socialist Party is well aware that the problems concerning the registration of its candidate - Georgi Pirinski, are by far more serious and unsurmountable.

The Collegium of the Agriculture Ministry decided to restrict the number of quickly reproductive livestock poultry and pigs, at its session today. The decision was taken due to fodder shortages. Pedigree cattle herds will be preserved, Agriculture Minister Krustyo Trendafilov said.

The Agriculture Ministry assessed the work on land restitution as unsatisfactory. Seventy-five per cent of the land has been restored so far. The land has been returned almost 100% in Northeastern Bulgaria but in the mountainous regions, around the cities and along the Black Sea coast this percentage is below 50, according to Agriculture Ministry data. The Collegium decided to terminate contracts with firms involved in land division and to sue them for failure to meet their obligations.

Col. Tsvetko Tsvetkov, chief of the State Reserve And Stockpiles Department with the government today was arrested on economic crime and corruption charges, said the press office of the Interior Ministry.

Relocation of armed forces, ammunition, combat equipment and movables will take place in August - November 1996 under the 1996 army reform programme and Bulgaria's commitment under the Conventional Forces In Europe Treaty, and in connection with the delivery of Russian armoured combat vehicles to Bulgarian military units, said the Defence Ministry.

A dust collecting facility is being installed in the Stomana metallurgical plant of Pernik, Western Bulgaria. It will reduce the content of harmful substances in the air to under 10 mg per cu m. The facility is reportedly the only one to operate in Bulgaria and the Balkans.

The parliamentary Bulgarian Business Bloc (BBB) today asked Interior Minister Nikolai Dobrev to resign. Dobrev recently marked his 100th day in this ministerial office. BBB spokesman Hristo Ivanov said the Interior Minister did not stand by his word to push through BBB-sponsored bills. Neither is the BBB satisfied with his overall performance in the counter-crime combat.

Religious services today marked the 53rd anniversary of the death of King Boris III. Bishop Ioan of the Rila Monastery held a liturgy at the grave of the monarch. Services were also held in Sofia's St. Alexander Nevski Cathedral and at Boris III's bust in the Boris Gardens in central Sofia.

The Supreme Court today published the motives for its ruling made earlier this year acquitting former head of state Todor Zhivkov, defendant in Case Number 1 of 1990. The supreme judges ruled that, from June 1971 to November 10, 1989, Zhivkov undoubtedly was first party and state leader under the Constitution of 1971 and, in his capacity of president of the state council and secretary general of the central committee of the Bulgarian Communist Party, he was the head of state. Under the new Constitution, the head of state is not criminally liable. The general meeting of the Supreme Court's judicial boards for criminal cases, which made the ruling, accepted that legal actions for the crimes committed between 1962 and June 1971 are barred by limitation.

Zhivkov was found guilty on charges of exceeds of power defrauding the state by 21,152,780 leva. On September 4, 1991, Zhivkov was sentenced to seven years in prison. The Supreme Court announced its ruling acquitting Zhivkov on February 9, 1996.

An eight-member delegation of the municipal administration of Montana (Western Bulgaria) today visited the Serb city of Pirot. Bulgarian and Serb officials will discuss the possibility for opening a new border checkpoint on the Bulgarian-Serb border near the village of Kopilovtsi, Western Bulgaria. A border-checkpoint existed at the place until 1943.

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