Bulgarian Telegraph Agency (BTA), 97-01-22

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

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

22 January, 1997

CONTENTS

[01] OUTGOING PRESIDENT ADDRESS

[02] PRESIDENT STOYANOV CONFERS WITH EU AMBASSADOR THOMAS OSULLIVAN

[03] INTERVIEW OF EU AMBASSADOR OSULLIVAN

[04] PRESIDENT STOYANOV MEETS IMF REPRESENTATIVE

[05] BULGARIA CAN RELY ON EU HELP

[06] "NOVA MAKEDONIJA": RELATIONS WITH MACEDONIA ARE AMONG STOYANOVS PRIORITIES

[07] BULGARIAS DILEMMA IS A NEW CABINET OR ELECTIONS IN CONDITIONS OF HYPERINFLATION, OUTGOING PM VIDENOV SAYS

[08] OPPOSITION PROTESTS. KOSTOV EXPECTS RESOLUTION OF THE CRISIS IN DAYS

[09] OPPOSITION URGES RADICAL CHANGE OF POLICY

[10] BSP LEADER PURVANOV ALSO TO HEAD PARLIAMENT MAJORITY

[11] BSP DISCUSSES REACTION TO PROTESTS

[12] MILITARY COUNCIL DISCUSSES ARMY REFORM

[13] STATEMENT OF FORMER KING SIMEON II

[14] OFFICIALS MEET INTERPOL REPRESENTATIVES

[15] MIDWIFES DAY, A BULGARIAN TRADITION

[16] INTERVIEW OF THE NEW FIRST LADY

[01] OUTGOING PRESIDENT ADDRESS

Dr Zhelev expressed his satisfaction with the fact that during his 5- year term in office he had managed to keep civil peace and did not allow to resolve political problems resorting to violence. He pointed out that in his activities he had been guided by the principle of coordinating the positions of the different state institutions in the name of the national interests. The outgoing President added that he had not made any unprincipled compromises nor did he abuse his constitutional right to suspend acts passed by Parliament.

Dr Zhelev stressed the pivotal role he had played as President in shaping Bulgarias new foreign policy. "In the last six years and a half the presidential institution has been actively working for Bulgarias integration with the European Union, the Western European Union and NATO," the outgoing President said. Treaties with France, Germany, Italy, Russia, Spain, Poland, the Czech Republic, Hungary, Slovakia, Ukraine, Belarus and Moldova have been signed since 1990 on this basis. Similar treaties were concluded with Georgia, Armenia and Azerbaijan, and also with Kazakhstan and Kyrgyzstan. Dr Zhelev pointed out the importance of the cooperation treaties Bulgaria has signed with the countries in the Balkan peninsula, Turkey, Greece, Romania and Croatia.

Foreign policy achievements could not offset domestic policy failures, said Zhelev. The Bulgarian model of transition was unsuccessful, he said, because of the specific form of government - a parliamentary republic. He stressed that economic reforms had not been carried out. Zhelev said that in practice he could not do anything because of the limits set on the presidents powers by the Constitution. "If Bulgaria had been a presidential republic, it would not have seen seven governments since the beginning of reform in 1989 and would be in the front rank of the post-communist states, " Zhelev said. "With a Constitution like this Bulgaria can only end up in disaster," President Zhelev said, quoting articles of the Constitution defining his powers. He said the failure of Bulgarias transition, in which Bulgarians are not mere bystanders, but participants and victims too, is the result of an inadequate Basic Law.

Zhelev said he had repeatedly raised the issue of the presidents limited powers during his term, but this had always been interpreted as "thirst for more power". He emphasized that Bulgaria does need a presidential republic.

In conclusion, President Zhelev thanked all politicians with whom he had a good working relationship and wished his successor Peter Stoyanov success.

[02] PRESIDENT STOYANOV CONFERS WITH EU AMBASSADOR THOMAS OSULLIVAN

The EU Ambassador told Mr Stoyanov that on January 20 at the EUs General Affairs Council, German Foreign Minister Klaus Kinkel raised the issue of EU to provide urgent assistance to Bulgaria. This will be done faster than the usually slow administrative procedures. The current Chairman of the Council Hans van Mierlo also voiced support, Mr OSullivan said.

A month ago in response to Peter Stoyanovs letter to the EUs Council of Minister requesting urgent aid for Bulgaria, the EU released to this country ECU 20 million. The European Ambassador voiced hope that during Peter Stoyanovs official visit to Belgium next week the European Union will release new assistance to Bulgaria, the head of the Presidents press office Irina Yordanova said after the meeting.

President Stoyanov is due to pay an official visit to Brussels between January 28 and 30. On his schedule are meetings with NATO Secretary General Javier Solana, President of the European Commission Jacques Santer, the North Atlantic Council, the European Parliaments Foreign Policy Committee, the new Chairman of the European Parliament Hill Delgado and WEUs Secretary General Jose Cutileiro. Peter Stoyanov will also visit King Albert II of Belgium and meet Belgian Prime Minister Jean-Luc Dehaene.

[03] INTERVIEW OF EU AMBASSADOR OSULLIVAN

The diplomat does not believe that the current political crisis and the introduction of a currency board will hinder Bulgarias future full membership in the EU. The conditions for membership set in 1994 remain valid, he says. Asked about his optimistic and pessimistic expectations of Bulgarias membership, he said this largely depended on Bulgaria and its compliance with the admission criteria.

If an agreement is reached with the IMF, assistance can also come from the EU, OSullivan siad. According to him, before any loans can be expected, Bulgaria should clarify reform mechanisms and reorganize its economy.

[04] PRESIDENT STOYANOV MEETS IMF REPRESENTATIVE

Replying to a reporters question, he reiterated the IMF official position, that negotiations can be held with any properly established constitutional government. "What is needed in order to put together an IMF programme is a government to negotiate with, a parliament to pass the laws and a national consensus that this policy is the right one for Bulgaria," he said. The IMF official declined to comment whether a Socialist government without a nationwide support could introduce a currency board or whether the IMF is ready to sign an agreement with a caretaker cabinet.

[05] BULGARIA CAN RELY ON EU HELP

At a news conference after the sitting the Councils chairman Mr Van Mierlo of the Netherlands said the European Union is following closely the latest developments in Bulgaria and is concerned over the grave social and economic problems facing the country. This EU official said that Bulgaria can rely on EU assistance in difficult moments as this one.

German Foreign Minister Klaus Kinkel said that Sofia is no Belgrade. He believes Bulgaria has good reasons to believe it will be admitted to the EU in a time of economic hardships.

All participants in the meeting were for an efficient and immediate support for Bulgaria. Foreign Minister Kinkel and his French counterpart Herve de Charette were unanimous that the political forces in Bulgaria must find a formula for a working government that will be an acceptable partner of the international financial institutions and the European Union.

Sources close to the delegations to the forum said that in such cases it was advisable that Bulgaria come out with specific requests and proposals for urgent action to make sure the assistance it will get brings results, this radio correspondent said.

[06] "NOVA MAKEDONIJA": RELATIONS WITH MACEDONIA ARE AMONG STOYANOVS PRIORITIES

"Peter Stoyanov entered the premier league of Bulgarian politics through the front door making his way with his internal consistency, positive political commitment and his strength and gift to attract people around himself in the achievement of important goals. All this and his view of politics as a means for solving concrete problems and not as ideological competition grounds makes Peter Stoyanov an unusual Bulgarian politician," "Nova Makedonija" writes.

Among Stoyanovs internal political priorities "Nova Makedonija" mentions the finding of a democratic solution to the present crisis, the actual launching of reforms and the restructuring of Bulgarian political scene, using the momentum gained by his success as a man of the centre- right and of the united opposition.

From the point of view of foreign policy, Stoyanovs election underscored once again Bulgarias pro-Western interests and its wish to join the European Union and NATO, "Nova Makedonija" writes. Peter Stoyanov belongs to the group of politicians who wish to combine this orientation with the best possible relations with Russia, this daily writes.

Peter Stoyanov has repeatedly stressed his intentions to approach the promotion of Bulgarian-Macedonian relations as his first priority," "Nova Makedonija" recalls. But, according to this newspaper, it is still difficult to project the consequences of his election for the Bulgarian- Macedonian relations. "Nova Makedonija" observes that the Bulgarian Constitution greatly restricts the powers of the President "though he is not entirely with his hands tied in foreign affairs." Bearing in mind Peter Stoyanovs intellectual and political potential we may expect him to attempt to break the present deadlock in Bulgarian-Macedonian relations, the commentary says. There are forces in the Bulgarian opposition favouring a more modern, less history - burdened approach to relations with Macedonia. Stoyanov obviously belongs to this circle, "Nova Makedonija" writes.

[07] BULGARIAS DILEMMA IS A NEW CABINET OR ELECTIONS IN CONDITIONS OF HYPERINFLATION, OUTGOING PM VIDENOV SAYS

The solution to this dilemma is possible under a clear constitutional procedure, starting with an attempt of the largest parliamentary group to form a government. As of tomorrow this procedure will engage the new President too and he will have to ask the candidate for the premiership to form a new Cabinet. The Democratic Left, which has the largest parliamentary representation, already came up with its nominee for prime minister and this is Nikolai Dobrev, Videnov said. He recalled that Dobrev "committed himself before the public to a clear and pragmatic programme for solving the crisis." Videnov voiced hope that the head of state will not yield to threats against the constitutional procedure, even ones disguised as union demands, as this would be a exceptionally dangerous precedent for the legal order in the country.

By taking the oath Mr Peter Stoyanov assumed the supreme responsibility before the nation to be a president of all Bulgarian citizens, the outgoing PM said, and added that Stoyanovs term begins in a time of a very complicated political and social situation in the country.

[08] OPPOSITION PROTESTS. KOSTOV EXPECTS RESOLUTION OF THE CRISIS IN DAYS

"Besides the apology for broken campaign pledges from BSP leader Georgi Purvanov, we want the Socialists to admit their failure manifested in the economic crisis they have plunged us into," UDF Chairman Ivan Kostov said. He expects that the Bulgarian political crisis will be resolved in a matter of days. "The perseverance of the opposition will be rewarded and the UtdDF will win," he said.

Tuesdays protest march of university students culminated in a concert given by actors and pop stars in the square in front of the National Art Gallery in Sofia. The protesting students sent a letter congratulating Bill Clinton on his second-term inauguration through the US Embassy in Sofia. The letter also calls for moral support of their protests.

There were rallies and effective strikes in a number of cities and towns in Bulgaria on Tuesday. One-hour effective strike actions were staged at 150 enterprises and institutions in Plovdiv (South Central Bulgaria), the local BTA correspondent said.

I.Zafirova, Chairwoman of Podkrepas national strike committee, said 105 companies mationwide had joined the protest actions, while 75 had staged token strikes and were ready to join in since Podkrepa called a national political strike on January 15.

Since January 15, 315 educational establishments have staged one- hour effective strikes and 23 have conducted token strikes. "No to a second Socialist cabinet, yes to early parliamentary elections, yes to a caretaker government," says a statement by the Podkrepa teachers union, received at BTA.

CITUB has received declarations of solidarity from the European Trade Union Confederation, the International Confederation of Free Trade Unions, Spains General Union of Workers and Polands Solidarity. Over 320,000 sympathizers of Promyana have joined the protest actions so far, it was said at a news conference.

The government press office said there were strikes in the chemical industry, mechanical and electrical engineering and electronics. Unlawful protests were reported from the Sandanski municipality (Southwestern Bulgaria) where a highway was blocked for an hour. Sofias regional governor has sent a letter to the Sofia Mayor concerning irregularities in the students protests on Tuesday.

[09] OPPOSITION URGES RADICAL CHANGE OF POLICY

The UDF leadership has assessed the situation in the country and proposed a policy package to alleviate the crisis in the period between the formation of a caretaker government and of a new government after early parliamentary elections, said UDF deputy leader A.Bozhkov. The UDF suggests that the present Parliament be dissolved within two or three weeks, a caretaker government be formed after the Socialist Party declines to do so, and early elections be held in March, he said.

The policy package includes the drafting of a currency board law, agreements with the World Bank and the IMF, and drafting of the 1997 budget. An agreement with the World Bank is needed to ensure structural reform in Bulgaria and is set by the IMF as a condition for talks for a new standby loan, said Bozhkov. If the caretaker government implements these policies, the next government may start working effectively in April and make foreign debt service payments in May.

The possibility of the Socialists staying in office until the years end is viewed by the opposition as "the worst, extreme option" for the countrys future. After 15 days of protests, Socialist leader Georgi Purvanovs apology for Left government on Monday sounded reluctant and the Socialists should decline to form a cabinet in favour of the UtdDF, said Ivan Kostov. In a televised interview Purvanov said he apologized to all Bulgarians whose expectations of the Democratic Left government were belied.

Kostov stressed the united opposition was satisfied with the progress of protests and the compromises made by the Socialist Party in their wake. He added the opposition hoped there would not be a general strike should the Left decide to form a government. The UDF leaders decided on Tuesday to convene the National Coordinating Council on January 25 to set a date for the Unions ninth national conference in view of the political situation and the need to precipitate parliamentary elections, Kostov said.

[10] BSP LEADER PURVANOV ALSO TO HEAD PARLIAMENT MAJORITY

At a regular meeting Tuesday, the decision-making Executive Bureau of the BSP Supreme Council discussed the socio-economic situation in Bulgaria against the current political background. "We believe that the end of 1997 is the most appropriate time for the State, not for the BSP, to hold early parliamentary elections," Executive Bureau member Peter Dimitrov told a news conference later in the day.

The participants in the meeting acknowledged that the situation in the last few weeks has been getting dramatic and that extraordinary economic measures are needed, Mr Dimitrov said. "It turns out that the nations worst problem is not that much the external debt - we will probably be able to meet the forthcoming payments on it and part of it may well be rescheduled, " Mr Dimitrov said. In his view, the internal debt is a more serious problem. "If we dissolve Parliament now, there will be no authorized body to take the emergency measures which could halt the crisis in this country, " he emphasized.

Asked to elaborate on the emergency economic measures, Mr Dimitrov specified that in most general terms they could be described as a flexible version of a currency board. The IMF insists on a hard version which, according to Mr Dimitrov, can be done in a couple of months time. The measures focus on rescheduling the internal debt so that the State could assume it when the interest rate normalizes (now the base interest rate is 180 per cent per annum), he added. These measures will be discussed with the IMF Resident Representative in Bulgaria and with President-elect Peter Stoyanov. "We must count on their consent and approval, as well as on Mr Stoyanovs cooperation in enlisting the oppositions support as well," Mr Dimitrov emphasized.

The Executive Bureau discussed three options for timing early general elections. The first option, instant elections, is deemed disastrous for the national interests. "If Parliament does not pass a statutory framework for debt restructuring and introducing a currency board type measures even before the introduction of a board proper, tensions may escalate to a point which nobody will be able to handle," Mr Dimitrov observed.

The second option, elections in June or July, is more realistic. A currency board may not be introduced earlier than in three months time, and if no board-type measures are taken by that time, the economic situation will worsen further from its present state, Mr Dimitrov said, adding that there are no grounds whatsoever to expect positive results in the first five or six months after the introduction of a board. "If we start an election campaign in the middle of those five or six months and thus allow political feelings to run high, this country may be brought to the verge of a civil war," he noted.

That is why the BSP believes that the end of 1997 is the best time for the State, not for the BSP, to hold elections. "Before the introduction of a board, crisis-management measures cannot be implemented without a national consensus," Mr Dimitrov said. "That is why we firmly insist on negotiating on a formula for government, its composition, the crisis-management programme and on the ways to ensure social peace in the implementation of these harsh measures," Mr Dimitrov stressed. He added that this is the reasonable position and negotiations are the only feasible option for Bulgaria.

[11] BSP DISCUSSES REACTION TO PROTESTS

Mr Kalinov said that the BSP leadership is following with concern processes in the country and believes that the generally acceptable tone of is sometimes being exceeded. There have been demands for protection against overt threats by activists of the Podkrepa Labour union, the Promyana Alliance and the united opposition, Mr Kalinov indicated, saying that there are cases on record of threats and political pressure on economic managers to support strike actions.

[12] MILITARY COUNCIL DISCUSSES ARMY REFORM

Severe material, technical and financial constraints, in the conditions of which the General Staff and the troops have had to operate, have affected the progress of the reform. The positive thing is that thanks to a scheduled reorganization no serious social problems have been allowed to emerge during the year. Besides, the action taken within the structural part of the reform has been closely bound with the fulfilment of tasks in troop training and combat readiness and have not affected adversely their efficiency.

The planned units will have to continue to be reorganized in 1997 without exceeding the quotas assigned to the armed services. The elaborated schedule will be additionally particularized, after funds are allocated under the military budget. Taking into consideration the observations and the specific suggestions made, Colonel General Tsvetan Totomirov, CGS of the Bulgarian Army, endorsed the proposed schedule for reform implementation in the Army during the current training year.

The Military Council heard a report on the development of a new concept of the automated management system in the Bulgarian Army by Major General Hristo Vassilev, Deputy CGS for Command and Control and Chief of the GS Operations Agency,.

The members of the Military Council voiced concern over the serious situation which has emerged in this country, which breeds mistrust of the officers that the requirements of the Defence and Armed Forces Act will be satisfied concerning a new level of pay. In this connection, a the prompt adoption of a Council of Ministers decree to guarantee servicemens pay was suggested. The command personnel in the Army will thus regain trust in the State institutions and the Executive which are concerned with the problems of national security and defence.

The leadership of the General Staff continues to carry out the missions assigned to the Bulgarian Army in assuring the countrys security and defence. The performance of commanders and headquarters in maintaining units combat readiness as planned will be subject to forthcoming inspections.

[13] STATEMENT OF FORMER KING SIMEON II

[14] OFFICIALS MEET INTERPOL REPRESENTATIVES

The objective is to compile a report summarizing the factors that condition and influence the movement of illegally acquired funds. The document will support the development of measures to counteract the concealment of funds of criminal origin, the press office said. The meeting was also attended by outgoing Deputy Justice Minister L. Kornezov.

[15] MIDWIFES DAY, A BULGARIAN TRADITION

According to the ancient custom, early in the morning women goes to the midwife which has helped her give birth to her child or children, pours water for the midwife to wash her hands and presents her with a bar of soap and a new towel. The midwife shakes off the water from her hands and intones "May the children born be as many as these drops". Then the visiting woman is given a bunch of sweet basil tied with a red woolen thread. On Midwifes day Bulgarian women used to sing and dance a ring dance to the accompaniment of folk music.

"In a few years the drop in birth rates will deprive Bulgaria of labour resources, Dr. Chernev warned. Statistics show that from 1989 to 1995 birth rates in Bulgaria fell by 7 percent a year; Bulgaria is the country with the lowest birth rate in Europe. Migration from Bulgaria, is also a factor in the population decrease.

"There are 350,000 childless families in Bulgaria at the moment," Dr Chernev said. Dr Dimiter Georgiev, an obstetrician, said that there were 2, 000 live births at the maternity hospital he works for in 1996, while abortions were twice as many. In his opinion, this is a miniature model of the sad picture prevailing in the country. Dr Dimiter Ignatov, Chairman of the Bulgarian Medical Association, sees the way out in a quick restructuring of the health care system and in foreign aid, which Bulgaria cannot do without.

[16] INTERVIEW OF THE NEW FIRST LADY

On Tuesday Mrs Stoyanova presented a donation of medicines worth 527,000 leva to the Sheinovo Obstetrics and Gynaecology Clinic in Sofia. The donation is from the Future for Bulgaria Foundation and constitutes anaesthetics and pain killers.

A lawyer by education and a career diplomat, Mrs Stoyanova arrived . Before that she was completing her work as first secretary of the Bulgarian Embassy in London. She has taken an unpaid leave till the expiry of her husbands term in office. In an interview before the presidential campaign Mrs Stoyanova said she would give up her career if her husband was elected president. Its a great sacrifice but I think its worth it... My husband has undertaken an enormous responsibility and needs his familys support. And he has it Mrs Stoyanova says.

The Presidents wife should not interfere in politics, Mrs Stoyanova says in her first interview as First Lady. The Bulgarian Constitution vests no powers in the Presidents spouse. But under the present circumstances it is a real challenge to be the wife of the Bulgarian President, Mrs Stoyanova says.

Asked what about her wishes as a woman, Antonina Stoyanova says that she wants her husband to keep his health and that a solution to the present crisis be found as soon as possible so that her husband may have a normal work schedule instead of the present 24-hour one.

I want my children to grow as they have so far and not to change their way of life, the wife of the new Bulgarian President says. Antonina and Peter Stoyanovi and their two children - Stefan (17) and Fani (7) spent the evening after the inauguration ceremony in the company of the family of the Presidents brother - Emil Stoyanov. The Presidents parents are expected to come to Sofia for the official taking of office, Standart News writes.

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