MAK-NEWS 04/03/96 (M.I.C.)

From: "M.I.C." <mic@ITL.MK>

Macedonian Information Centre Directory

CONTENTS

SKOPJE, MARCH 4, 1996 (MIC)

[01] MILITARY EXERCISES ON POPOVA SAPKA

At the news conference, the Chief of the General Staff of the Macedonian Army, General Colonel Trajche Krstevski announced the formation of a new unit soon, in the rank of a company, which will be made up of paid soldiers, and which should take part in future exercises with western partners.

By the year 2000, some 50 percent of the regular peacetime composition of the Army will be made up of professionals. They will be assigned special tasks, fill in the border services, the motorized units, and handle modern systems, Krstevski said.

Krstevski emphasized that in July, a company of the Macedonian Army will take part in joint exercises with Albania, with the participation of units from Italy, Greece, Bulgaria, Turkey and the U.S., as well.

A similar exercise is planned in Macedonia in October, with the same composition.

This year, according to the available budgetary funds, the Macedonian Army is planned to be equipped with new artillery weapons, the motorized engineering units are planned to be renewed, the communications systems, as well as the military air force. "For this purpose," Krstevski said, "the first two training airplanes arrived in Macedonia these days, and the other aircraft are also planned to arrive soon, which will serve initially for the training of pilots."

This year, for the first time, the rank brigadier general is introduced, as well.

MACEDONIAN PRESS REVIEW:

[02] EXCERPTS FROM INTERVIEW WITH FORMER FOREIGN MINISTER STEVO CRVENKOVSKI: "CREATED POLITICAL INSTABILITY"

When, for instance, we talk about equidistance, we mean the only path that can sustain Macedonia's independence. It's not a question of some minor political variations, in the sense, now we can apply this principle, and after one year, another one. This is a principle that is a long-term constant of the Republic of Macedonia, if it truly wants to remain an independent state. It is applied strictly and before all, it is comprehended as readiness to cooperate with everyone, as well as the non- acceptance of any kind of special relations with any neighbor. That is the essence that can develop an interest with all the neighbors, to protect the independence of Macedonia. The European and Euro-Atlantic orientation are predominantly questions of the development of the state to keep up with the basic course of civilization," the former Foreign Minister Stevo Crvenkovski says.

In relation to the development of the democratic processes in Macedonia, Crvenkovski says: "I feel that only a small part of everything that's going on is a question of the relationship between two parties. Relations between two parties can certainly develop within a democratic system, in all possible directions. This is not at all a question of processes that are present in a regular development of a democratic system. It would be a great day for democracy if one of the coalition partners assesses that the election coalition is impossible to sustain, to ask for early elections, to have a majority in Parliament to vote for elections, to check his political position, to gain new legitimacy and to form a government as he likes with a new Parliament. That would truly be a great day for democracy in Macedonia.

On the other hand, it would be a minimum for democracy if the mandate is returned and a new one is received. It is normal that the largest party and group of parties receive that mandate again. That's what it says in the Constitution. However, the act of checking itself is essential for democracy. It's boggling why that has not been done."

Crvenkovski feels that the platform of the Alliance for Macedonia has been disrupted because instability has been created in the country: "The platform is certainly disrupted, since political instability has been created. That is evident. From an exceptionally stable position of political subjects, we have now entered a period of risks. A period of risks because despite the large number of votes that the Government won - more than a two- third majority, this number of votes is a result of political compromise. Regardless of the type, every political compromise can be changed in any period, to come to a completely different number of votes.

At the time when the Alliance was being formed, it was generally assessed that Macedonia had still not reached long-term stability, that we are on the best way of achieving it, that much has been done to make that possible, and that it is necessary for the Alliance for Macedonia to provide one more period of a couple of years to consolidate that process. A period in which there will be no large political risks for Macedonia. The fact that we are entering large political risks today, illustrates that the basic item stressed in the platform of the Alliance does not exist any longer.

Business, Finance, Investments & Market

[03] BUSINESS CONTACTS - GREEK BUSINESS MISSION IN MACEDONIA

64 enterprises from the private sector will take part in the mission, 12 agricultural cooperatives, representatives of the Craftsmen's guild from Thessaloniki, the inter-Balkan and Black Sea Center "HELEKSPO" and several renowned Greek banks.

In the next couple of days, representatives of SEVE and the Macedonian Chamber of Commerce will draw up a detailed schedule for meetings between Macedonian and Greek enterprises. In addition, a special fair of Greek products is planned to take place in Skopje in June.

The NOVA MAKEDONIJA correspondent reports from Athens that several Greek enterprises have already prepared programs for cooperation with corresponding Macedonian enterprises. The Commercial Capital Bank has formed a joint enterprise with the EBRD, with a share capital of 15 million USD. The Athens Brewery "3-E" has arranged a joint venture with the Skopje Brewery for the production and sale of "Skopje Beer," "Heineken" and other products. The shoe factories "Copanidis" from Greece and "CIK" from Kumanovo and Vinica (Republic of Macedonia) have reached an agreement for the production of sports shoes.

Furthermore, the Greek economic delegation, led by Mr. Platis, representative of the Greek Foreign Ministry, paid a visit to Macedonia last week. This was the first official visit of Greek businessmen, the head of the Greek Liaison Office Aleksandros Maljas told a news conference.

Ms. Maria Lori, member of the Greek business delegation, stated that 2 large enterprises were in question, informing that she has been staying in Macedonia for the last two years. During this period, she has been examining the possibility of building a hotel from the "Sheraton" chain of hotels in Skopje. She added that in the field of textile industry, contacts have been made between Vinica and Kumanovo, and the possibility of cooperation between PTT "Makedonija" and HELASCOM, one of the most influential telecom companies in Greece, is being reviewed.

The president of the Macedonian Chamber of Commerce Dushan Petreski stated at this news conference that the stock exchange between Macedonia and Greece in 1991 reached 150 million USD, that 165 million USD were paid for the use of the Thessaloniki harbor, and that the turnover in the field of shopping visits and tourism reached 300 million USD.

[04] THERE WILL BE 3 TYPES OF MARKETS ON MACEDONIAN STOCK EXCHANGE

Mr. Zografski said that potential investor will be able to buy stocks at three markets that will be formed as part of the exchange. Only the most profitable enterprises will be present on the first one, whose market capital is over 20 million DEM and which have at least 250 shareholders and a revised financial report on the last three years. The second market will deal with the shares of enterprises that have a minimum 100 shareholders, a market capital of at least 9 million DEM and a revised financial report for at least 2 years. Still, the third unofficial market is expected to do the most business, at which the only liability will be to submit the last annual report of the enterprise that had issued the shares.

Founders of the exchange are 12 banks, 3 insurance companies and 4 savings banks, which will have to register special broker firms by the end of August.

[05] DRASTIC INCREASE IN FUNDS FOR PENSION INSURANCE FOR UNEMPLOYED

In 1994, the Employment Office paid MKD 35.78 million (913,000 USD) to the Fund for Pension Insurance - for the unemployed, which makes this annual increase from 1994 to 1995 668 percent. According to the Bureau of Statistics, there are approximately 230,000 unemployed persons in Macedonia today, of which 60,000 lost their jobs as a result of their enterprises going bankrupt. Even 20 percent of the employees, whose enterprises work regularly, do not receive their wages on time.

[06] RAILWAY TRAFFIC - MACEDONIAN AND GREEK EXPERTS DISCUSSING ELECTRIFICATION OF RAILROAD TRACKS

After the last difficult years for the Macedonian railways and railroad traffic in general, the Macedonian side expects this electrification to contribute to the full utilization of the railroad capacities, especially since the lifting of the two embargoes from north and south.

[07] 4,000 SUIT FOR UNPAID ELECTRIC BILLS

[08] ILLEGAL TRADE - RESELLERS FLEEING AND LEAVING GOODS BEHIND

Mr. Dimovski says the resellers are ready to leave their goods behind, even several times a day, to flee, thus it is unable to determine whom the goods belong to and to find the culprit, which enables them to continue reselling goods that are not taxed or cleared through customs. In defining the problem this way, Mr. Dimovski feels that the inspection organs are diligent in their work, however, the fight against the resellers is really difficult.

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