Bulgarian Telegraph Agency (BTA), 96-11-25

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

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

25 November, 1996

CONTENTS

[01] DRAFT RESOLUTION ON MEASURES T0 OFFSET EFFECT OF SANCTIONS

[02] BULGARIAN DELEGATE ADDRESSES U.N. COMMITTEE ON CONDITION OF BULGARIAN MINORITY IN F.R. YUGOSLAVIA

[03] TRANS-REGIONAL CENTRE FOR TRANSPORT INFRASTRUCTURE SET UP IN

[04] P.STOYANOV AT EUROPE FORUM IN BERLIN

[05] EUROPEAN UNION FINANCES RESTORATION OF BULGARIAN MONUMENTS OF CULTURE

[06] BULGARIA, SLOVENIA SIGN FREE TRADE AGREEMENT

[07] PM VIDENOV ON GRAIN SHORTAGES

[08] P.M. VIDENOV TO CHECK CORRUPTION TIP-OFF

[09] BULGARIA: MUCH LOWER ENERGY EFFICIENCY THAN DEVELOPED COUNTRIES

[10] SOFIA MAYOR NEGOTIATES RUSSIAN AID FOR UNDERGROUND

[11] P.M. VIDENOV: TECHNICAL WORK ON I.M.F-PROPOSED CURRENCY BOARD STARTS

[01] DRAFT RESOLUTION ON MEASURES T0 OFFSET EFFECT OF SANCTIONS

The Bulgarian representative said that despite of the lifting of the sanctions and the strengthening peace process, stability and cooperation in the region, the negative effect of the strict implementation of the sanctions still creates serious difficulties for the economies of affected third countries, including Bulgaria. The draft stresses the need for practical measures for alleviating the negative effect of the sanctions through support for financial stabilization, development of infrastructure, promotion of trade and participation in the postwar reconstruction of the region. The draft resolution pays special attention to strengthening multilateral regional cooperation in different spheres in compliance with the Sofia Declaration of Foreign Ministers of Southeastern Europe.

[02] BULGARIAN DELEGATE ADDRESSES U.N. COMMITTEE ON CONDITION OF BULGARIAN MINORITY IN F.R. YUGOSLAVIA

The Bulgarian representative dwelled on the interest which Bulgaria, as a neighbouring country, takes in the protection of human rights on the territory of ex-Yugoslavia within the framework of the overall process of post-war reconstruction of the region. Mr Stefanov noted Bulgaria's contribution and, in particular, the participation of Bulgarian experts in the OSCE election monitoring missions in Bosnia-Herzegovina.

The statement stressed that during the last few years the condition of the Bulgarians in the Republic of Serbia has been closely followed by the Bulgarian public, the non-governmental organizations and the public institutions in Bulgaria. An emphasis was laid on Bulgaria's constant and consistent interest in the full-fledged observance of the constitutional rights of the Bulgarian national minority and in the practical assurance of the free expression of its national self-identification.

The Bulgarian delegate said that the Bulgarian expectations in this field and the readiness for cooperation expressed by the Yugoslav authorities have still not been realized. He voiced concern over the facts cited in the report on continued restriction of the use of the Bulgarian language in instruction in the primary schools of the Bulgarian minority. An emphasis was laid on the concern over the halving of the number of Bulgarian language classes, a measure which is inconsistent with the readiness for constructive interaction officially expressed by the Yugoslav authorities. The speaker deplored the failure so far to restart bilingual instruction, guaranteed to the rest of the ethnic groups in the Republic of Serbia, in the schools of the Bulgarian minority.

[03] TRANS-REGIONAL CENTRE FOR TRANSPORT INFRASTRUCTURE SET UP IN

Participating were 18 transport ministers, state secretaries and ambassadors and more than 140 experts from France, Egypt, Israel, France, Germany, Japan and the Federal Republic of Yugoslavia. The meeting was attended by representatives of the European Commission, the UN Economic Commission for Europe, the Organization for Security and Cooperation in Europe, EBRD, the European Conference of Ministers of Transport, the World Bank and the International Monetary Fund.

Issues related to the building and development of transport corridors via the BSEC and CEI countries and the enlargement of their transport networks towards Central Asia and the Middle East were on the agenda of the talks. The participants noted the necessity of speeding up the construction of the Crete corridors, their extensions and the newly-proposed corridors in Central and Eastern Europe, the Baltic, Adriatic and Black Sea, Caucasus, Central Asia and the Middle East. All proposals were generalized in an annex to the final document adopted at the meeting.

The participants exchanged opinions on national and regional transport policies and projects involving multinational cooperation in transport.

The ministers stressed the importance of harmonizing legislation concerning technical, financial and legal issues in the area and the necessity of developing transport networks in compliance with the respective country's interests.

During the meeting Bulgaria and Croatia signed agreements on air communications and road transport.

The Bulgarian and Romanian transport ministers signed a memorandum under which the two sides should specify the site of a new bridge across the Danube within a month. A new bridge in the western section of the Bulgarian- Romanian border should be constructed in compliance with a project on the building up of an European transport corridor.

Bulgarian Transport Minister Stamen Stamenov told journalists he expects the new Trans-Regional Centre will play a major role in the economic cooperation and integration of the participating countries not only in the region but also in the EU. Stamenov expressed a hope that the governments will take part in the project which will combine inter-state cooperation and joint exploitation through state, regional and private structures.

[04] P.STOYANOV AT EUROPE FORUM IN BERLIN

In his address, Stoyanov outlined his foreign policy priorities: a parallel integration and full membership of Bulgaria in the European Union (EU) and NATO, a regional policy that is part of European and Atlantic integration, and promotion of relations with Russia, Ukraine and the rest of the former Soviet republics. According to the President Elect, the promotion of these relations should enrich, rather than restrict, opportunities for Bulgaria's full integration into the EU and NATO.

"The decision for full integration of Bulgaria into NATO will be a sovereign act by Bulgaria. I would not accept a veto by a third country on Bulgaria's right to join NATO," Stoyanov said, adding that for these reasons, it is especially important for Bulgaria that NATO reaffirms the principle of equal start for aspiring new members.

Stoyanov stressed that as President, he will work for the improvement of investment climate in Bulgaria, the decrease of risk for foreign companies, the restoration of confidence in the banking system and the coordination of government efforts to control crime and corruption.

"What we expect from Europe is investor participation in the restructuring of the Bulgarian economy, the privatization of companies and banks, the establishment of joint ventures and the transfer of advanced technology. We expect infrastructure integration into Europe in transport, power engineering and telecommunications," Stoyanov also said.

He said it is of key importance for the future of Bulgarian reforms to ease travel by Bulgarians in Europe and EU citizens in Bulgaria, a commitment stated in Bulgaria's Europe agreement for association with the EU. "I think it is an anachronism to make even the official and business contacts of an associated country dependent on complex and humiliating procedures," Stoyanov said.

Today Stoyanov met with Polish President Aleksander Kwasniewski, German Foreign Minister Klaus Kinkel and the mayor of Berlin Eberhard Dipgen. During a half-hour meeting, Kwasniewski expressed a wish that Poland be the first country Stoyanov visits in his capacity as President. In turn, Stoyanov invited the Polish President to make an official visit to Bulgaria at his convenience. Stressing it is essential for Bulgaria that negotiations with all EU associate members from Central and Eastern Europe start at the same time, Stoyanov asked for Poland's support in this area. Poland will support Bulgaria's desire for an equal start as much as it can, Kwasniewski said, adding a final decision on the matter will be made in Brussels.

During his half-hour meeting with Stoyanov, German Foreign Minister Klaus Kinkel said Germany will support the launch of more radical reforms in Bulgaria but expressed a strong alarm over the current deep economic and financial crisis. Stoyanov expressed his opinion that all associated countries aspiring for membership in the EU should enjoy an equal start. Germany supports in principle the idea to introduce a currency board in Bulgaria, Kinkel said, adding that this step will only be a success if it enjoys decisive support in the country.

Responding to Stoyanov's request for humanitarian assistance for Bulgaria in the form of grain, Kinkel said he will personally lobby for such support at the EU Council of Ministers in Brussels on Monday. The EU should send a special commission to Bulgaria to study what amounts are needed on the spot, the German Foreign Minister specified. Kinkel will also discuss with his EU counterparts Bulgaria's participation in the reconstruction of Bosnia and Herzegovina (placing orders with Bulgarian firms or joint projects). According to him, Bulgaria fully deserves this kind of compensation for its losses as a result of its strict implementation of the Yugoembargo.

[05] EUROPEAN UNION FINANCES RESTORATION OF BULGARIAN MONUMENTS OF CULTURE

The restoration projects for the two Bulgarian monuments, the King's Palace in Sofia and the "St John the Baptist" church in Kurdjali (Southern Bulgaria) are presented at the "Protection of European Cultural Heritage. Religious Monuments." exhibition which was opened in Sofia last night. The visitors will also be able to see the project for the international Waterloo railway station in London, which won the award for contemporary European architecture in 1994, as well as another 27 leading projects of the same competition. The award has been granted every two years since 1988.

[06] BULGARIA, SLOVENIA SIGN FREE TRADE AGREEMENT

The agreement envisages the phased liberalization of bilateral trade from January 1997. Tariffs on 600 Bulgarian and 1,200 Slovene exports will be phased out, with a zero tariff on industrial goods envisaged in the year 2001. Some 40 per cent of trade in industrial products will be liberalized in 1997.

Tariffs on sensitive industrial goods will be cut by 20 per cent annually from 1997 onwards. Tariffs on less sensitive exports will be cut by 50 per cent in 1997 and by 20 per cent in 1998 and 1999. The two governments must not impose new export restrictions after the agreement enters into force. The countries agreed on tariff reductions of 180,000 dollars each on agricultural products.

The agreement provides for the introduction of cumulative rules of origin. Products made in Bulgaria from Slovene materials will be considered of Bulgarian origin and vice versa. This ensures that Bulgarian goods will get the most favourable treatment in all European countries, Paparizov said.

The agreement with Bulgaria is identical to Slovenia's agreements with the countries of the Central European Free Trade Agreement (CEFTA), said Dezelak. Bulgaria already has such agreements with the Czech Republic and Slovakia and if it signs similar agreements with the rest of the CEFTA countries, this country will become part of a 150-million-people market even before its accession to the EU, Paparizov said.

Slovenia, which assumes the rotating CEFTA presidency on January 1, will support Bulgaria's bid for membership in the organization, Dezelak said. The development of two-way trade is a good way to join the EU in the future, according to him.

[07] PM VIDENOV ON GRAIN SHORTAGES

"Bulgaria as a state is not holding negotiations with Argentina or Argentine firms for wheat deliveries. Such negotiations are being held by Bulgarian firms and in the present correlation of prices these deals seem more profitable than some based on interstate agreements and state credits.." the prime minister said commenting on press reports. This country's grain requirements cannot be met by 100,000 or even 300,000 tonnes of grain imports. In the case with Argentina these imports would not be guaranteed by the government and would depend on individual Bulgarian firms and their partners. "Therefore I do not see why this would undermine the case for EU emergency grain aid," the prime minister said.

Videnov also dwelled in detail on the reasons why Bulgaria did not avail itself this year of the US GSM-102 programme providing credits for grain imports. Initially Bulgaria was not included in this programme for the financial 1996 but possibilities for using it were created thanks to the efforts of both the Bulgarian and the US administration. In July Bulgarian Parliament passed a resolution sanctioning the Government to issue a letter of guarantee to the US government authorized Commodity-Credit Corporation for a USD 25 million tied credit and Bulbank to effect the bank transaction for importing grain under the GSM-102 programme. The Government issued the respective letter of guarantee as a basis for starting negotiations with the grain exporter from the US and US banks ready to service this credit line. The Bulgarian Bulbank received offers from three leading American banks. But Bulbank assessed the terms as extremely unfavourable and as considerably increasing the price of the grain. Pressed for time - the financial year in the US ends on September 20, Bulbank could not bargain for more favourable conditions. Under the circumstances, Bulbank assessed the deal as unacceptable, unprofitable, the prime minister said. That was why Bulgaria did not avail itself of the opportunities offered by the GSM- 102 programme for the financial 1996. But this does not mean that it has lost its right to participate in the programme in the next financial year. This country has already expressed its wish to be included in the GSM-102 programme for 1997 which provides for the extension of tied credits repayable over a seven-year period. "Whether we will avail ourselves of it is a matter of the more distant future and subject to negotiations," Videnov said.

The prime minister said that over 1.1 million hectares have been put under wheat and over 300,000 hectares under barley, which is 30% more than the areas sown last year. We are hoping for a good harvest in 1997 which would help us stabilize the grain balance and provide possibilities to producers for profitable export.

[08] P.M. VIDENOV TO CHECK CORRUPTION TIP-OFF

Sougarev, MP of the Union of Democratic Forces, is Deputy Chairman of the parliamentary Committee on Corruption. On November 18, he presented to Prosecutor General Ivan Tatarchev what he called a White Paper on corruption in banking. Sougarev said then that the Committee held information on cases of serious corruption in the government and that it would be turned over to the competent authorities after a discussion.

Sofia, November 24 (BTA) - Tonight the Bulgarian Government said it supports Transport Minister Stamen Stamenov, charged with corruption by opposition MP Edvin Sougarev. On November 22 Prime Minister Zhan Videnov ordered a check by the Interior Ministry and the investigative authorities on Sougarev's corruption allegations against a Cabinet minister. "The charges brought up by Mr Sougarev and some journalists have long been known to the competent authorities; they have been checked and founded unsubstantiated. "

[09] BULGARIA: MUCH LOWER ENERGY EFFICIENCY THAN DEVELOPED COUNTRIES

Energy audits in ten Bulgarian industrial enterprizes were conducted under the project, Mr Tuman said. The USAID purchased and delivered equipment of the worth of 500,000 US dollars to improve the plants' efficiency, he added. As a result the plants can save annually energy of the worth of the facilities installed.

At present the Bulgarian Association of Power Engineers is carrying out an USAID-sponsored project on improving the energy efficiency of the regional hospital in Gabrovo (Central Bulgaria). A project on the saving of energy in the central heating system is also to be drafted.

[10] SOFIA MAYOR NEGOTIATES RUSSIAN AID FOR UNDERGROUND

[11] P.M. VIDENOV: TECHNICAL WORK ON I.M.F-PROPOSED CURRENCY BOARD STARTS

Probably early next year, the cabinet will submit to Parliament bills amending banking legislation, a budget report, budget projections about 1997 and 1998 and a privatization programme.

"To this day, we have not met with categorical and resolute opposition to the idea. If things do not change, we intend to inform the international financial institutions, in order to provide interim financing for Bulgaria and avert financial destabilization until we make a decision," the Prime Minister told the meeting.

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