Bulgarian Telegraph Agency (BTA), 96-12-18

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

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

18 December, 1996

CONTENTS

[01] NATIONAL SECURITY COUNCIL DISCUSSES BULGARIAN- MACEDONIAN RELATIONS

[02] PRESIDENT ELECT STOYANOV, DEPUTY FOREIGN MINISTER BOKOVA MEET

[03] BULGARIAN PARLIAMENTARIANS PAY TRIBUTE TO HOLOCAUST VICTIMS

[04] CABINET DISCUSSES 1997 BUDGET BILL AT EXTRAORDINARY SITTING

[05] PRIVATIZATION REVENUE FIGURES

[06] RUSSIA AWAITS BULGARIA'S DECISION ON BUILDING GAS PIPELINE

[07] RUSSIA INTERESTED IN BALKANCAR HOLDING PRIVATIZATION

[08] IN BRIEF

[01] NATIONAL SECURITY COUNCIL DISCUSSES BULGARIAN- MACEDONIAN RELATIONS

The Foreign Ministry should continue seeking ways to break the impasse in bilateral relations through diplomatic channels with a view to signing a cooperation agreement, the Council said.

The Foreign Ministry will continue its talks with Macedonia, First Deputy Foreign Minister Irina Bokova said after the meeting. She said the language dispute is not the main obstacle to signing a bilateral agreement.

The Council also discussed Bulgaria's possible participation in the NATO- led multinational force implementing the peace accord on Bosnia.

Bulgaria was the first country in the world to recognize the sovereignty of the former Yugoslav republic in January 1992. Then foreign minister Stoyan Ganev stressed at the time that Bulgaria does not recognize a Macedonian nation.

Nearly five years and several diplomatic missions later, the two countries have not signed yet a cooperation agreement and a declaration on the principles of bilateral relations.

The creation of the legal framework has stumbled over Macedonia's condition that a clause should expressly state that bilateral treaties are signed in Bulgarian and Macedonian, Prime Minister Zhan Videnov told Parliament in May. He emphasized that the theory of a Macedonian language being an attribute of "the so- called Macedonian nation and Macedonian minority" is unacceptable to Bulgaria. He recalled that Bulgaria had proposed many compromise solutions but Macedonia's position was not flexible enough, according to him. "We still hope this reasonable, balanced approach will meet with understanding and support in the interests of bilateral relations," Videnov said.

[02] PRESIDENT ELECT STOYANOV, DEPUTY FOREIGN MINISTER BOKOVA MEET

The most important thing we discussed was the need for reaching a consensus on a single foreign policy both among politicians and among institutions in Bulgaria, Bokova said after the meeting adding the two agreed that it matches Bulgaria's national interests.

She also said Bulgarian-Macedonian relations and the events in Serbia were not discussed at the meeting. The question about NATO, though, was brought forth by Peter Stoyanov, said Irina Yordanova of Stoyanov's press office. Ms Bokova reportedly proposed that Peter Stoyanov be informed on the issues brought to the attention of the Foreign Ministry by the Bulgarian-based Embassies.

[03] BULGARIAN PARLIAMENTARIANS PAY TRIBUTE TO HOLOCAUST VICTIMS

The Bulgarian parliamentarians passed along the Avenue of the Righteous which leads to the Memorial. Thirteen trees have been planted along the Avenue of the Righteous to pay tribute to the 13 Bulgarian who saved Jews. This is however only part of the gratitude expressed to Bulgaria and the Bulgarian people on the part of the Israeli hosts for the rescue of Bulgarian Jews during World War Two.

The Bulgarian MPs also laid wreaths at the grave of former Israeli prime minister Yitzhak Rabin.

[04] CABINET DISCUSSES 1997 BUDGET BILL AT EXTRAORDINARY SITTING

The Government set up a working group which will go on working on the 1997 budget bill, Industry Minister Lyubomir Dachev said after the sitting. The working group should specify the budget allocations for education, culture, healthcare, the army and the police within several days.

A 40 percent inflation and an exchange rate of 400 leva for US dollar 1 are set in the budget bill, Environment Minister Georgi Georgiev said Monday evening before the sitting. However, Minister of Agriculture and Food- Processing Krustyu Trendafilov said the budget target for the exchange rate is 320 leva for one US dollar.

[05] PRIVATIZATION REVENUE FIGURES

Payments to the amount of 37,854 million leva were agreed, of which 23,339 million in cash and 14,515 million leva in bonds.

By December 13 the Finance Ministry had received 14,564 million leva in cash, 5,138 million leva in ZUNK bonds and 838 million leva in Brady bonds from deals closed by the Privatization Agency.

Sell-offs by ministries fetched 2,892 million leva.

The Cabinet gave the go-ahead for cash privatization of up to 55% of two pharmaceutical companies: Pharmacia in Doupnitsa (Western Bulgaria) and Troyapharm in Troyan (Central Bulgaria). Pharmachim, the state-owned holding company, will retain a 25% stake in each subsidiary with a view to keeping the trademark.

[06] RUSSIA AWAITS BULGARIA'S DECISION ON BUILDING GAS PIPELINE

Both sides to the talks agreed that it is necessary to make a final decision on the gas pipeline project as soon as possible. The project for transiting Russian gas through Bulgaria would bring net revenues totalling USD 6,000 million from participation in the joint venture for the 30-year period of the concession, Oleg Lobov said after the meeting. There are few projects in the world bringing such revenues, Lobov believes. Bulgaria may also start exporting electricity to its neighbours, Lobov said. The transiting of gas and electricity generation are two major projects by which Bulgaria may improve its balance of payments with other states, Russia's deputy prime minister said.

At a plenary session of the intergovernmental commission it was decided to set up joint ventures for the production of spare parts for agriculture, the government press office said.

The deadline for signing an agreement between the Bulgarian and Russian foreign trade banks - Bulbank and Vneshekonombank, was set at January 15, 1997. The lack of such an agreement is the main obstacle to implementing the agreements of 1995 on the repayment of Russia's 100 million transferrable rubles debt to Bulgaria.

Bulgaria asked Russia for customs preferences already in 1995 during the visit of Russian Prime Minister Viktor Chernomyrdin to this country but the problem has not been settled so far. While Russia levies an average 30% customs duty on Bulgarian imports, Russian goods are imported with a 5- 10% customs duty.

In 1994 Bulgaria's deficit in its trade with Russia amounted to USD 629.280 million and in 1995 to around USD 833 million.

[07] RUSSIA INTERESTED IN BALKANCAR HOLDING PRIVATIZATION

Balkancar Holding, established in 1965, makes electric and engine-driven cars and has 18 subsidiaries. The company holds stakes in more than 20 overseas companies.

The setting up of the joint venture will be accompanied by technology and know-how transfer, Glukhikh told the press. "If we have a stake in Balkancar, its name will not be changed and production will not be relocated - on the contrary, we will develop it here, in Bulgaria," said Glukhikh.

The sides discussed opportunities for Russian investment in joint ventures in the oil and food industries.

Even before the start of political and economic reform in 1989 Balkancar had secured a foothold in the former Soviet Union and the whole eastern bloc, as well as in Germany, Algeria, Venezuela, the UK and Japan. In the last five years the company has exported industrial trucks to CIS, the Baltic republics and many other countries.

Since 1989 Balkancar Holding has had financial difficulties. It has not received state subsidies for four years and its debt has mounted to 271, 664 million leva.

The buyer must assume the company's debt and pay Bulgarian banks 29 million dollars and 6,000 million leva, as well as 1,262 million leva to the budget and the social security fund.

[08] IN BRIEF

Romania's concept on border crossings provides for the construction of two new bridges across the Danube. It was set forth by Romanian Deputy Transport Minister Petrika Diakonu at a meeting with his Bulgarian counterpart Luchezar Lalov and Deputy Construction Minister Nikola Grigorov. The two sides also discussed an agreement on building border crossings expected to be signed in 1997.

Two aircraft carrying 9 tonnes of Polish Red Cross humanitarian aid landed at Sofia Airport. The aid includes flour, pasta and other durable foods to help socially disadvantaged through the winter.

The leaders of the two major trade union amalgamations in Bulgaria: Confederation of Independent Trade Unions in Bulgaria (CITUB) leader Krustyo Petkov and Podkrepa Labour Confederation leader Konstantin Trenchev met European Parliament President Klaus Haensch on Monday, the CITUB press office said. It was agreed for the ECU 20 million aid for Bulgaria to be controlled by nongovernmental organizations as well. Klaus Haensch has written a letter to the Bulgarian government voicing his concern over the situation in Bulgaria and recommending that comprehensive measures be taken for overcoming the social crisis, the CITUB press office said.

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