MILS NEWS 17/04/96

From: "M.I.L.S." <mils@MILS.SPIC.ORG.MK>

Macedonian Information Liaison Service Directory

CONTENTS

MILS NEWS

Skopje, 17 April 1996

[01] ATHENS RESERVED ABOUT NEW YORK TALKS

As 'Makfax' agency reported from Athens, the Greek Premier Costas Simitis was reserved regarding the talks, as he had stated that Athens was not hurrying to conclude the Macedonian issue. The reason was, according to some Greek papers, the talks he had had with the US President Bill Clinton and with the UN Secretary General Boutros Boutros Ghali. Some circles in Athens, however, consider the disagreements inside the ruling PASOK as a reason for his restraining.

The general stand was that Macedonia would not accept any addition to its name. According to Greek media, the chances for Skopje to yield had decreased after FRY recognised Macedonia under the constitutional name.

[02] MACEDONIA AMONG THE SERIOUS CANDIDATES FOR NATO

According to Macedonian Television, a high diplomat in Brussels stated this was the first time for a country like Macedonia, that still has not completed all the phases which enable a country to attend such a meeting, to participate in a multi-lateral meeting of NATO in the post-blocks period.

If the usual procedure was followed, Macedonia would have been visited by NATO high officials before allowing its attending the meeting. In this case, the visit will take place next month. The above mentioned diplomat understood it as a sign that Macedonia was already considered a serious candidate for a membership in NATO.

[03] MACEDONIAN RESOLUTION ON MINORITIES AT ISTANBUL CONFERENCE

Meanwhile, Macedonian media reported that the delegation had been received by the Turkish President Suleiman Demirel and the President of the Great National Assembly Mustafa Kalemli yesterday.

[04] MINISTER FRCHKOVSKI IN AUSTRIA

Macedonian Foreign Minister is expected to meet the Austrian Vice-Premier and Foreign Minister Volfgang Schizel, and the President of the Austrian National Council Hans Fischer.

[05] MEETING ON MACEDONIAN-SWEDISH COOPERATION

Boris Chalovski from the Macedonian Chamber of Commerce and Olga Mihailova from the Privatization Agency presented the situation and possibilities of the country's economy, while the Macedonian Ambassador to Sweden, Tihomir Ilievski, presented the reforms process.

Swedish entrepreneurs pointed out some negative experiences they had had with Macedonian partners, as well as the positive ones, as the one with 'EMO' from Ohrid. It was concluded that, in future, Swedish businessmen would try to develop the cooperation with Macedonian companies in the production of medical equipment and of machines for electric power transport, in the roads construction, etc.

[06] PRESENTATION OF MACEDONIAN ECONOMY

During the talks of Macedonian delegation with the Bulgarian Premier Zan Videnov, the bilateral relations between the two countries were discussed.

[07] MACEDONIAN-TURKISH EXCHANGE BELOW EXPECTED

The Chamber of Commerce President Dushan Petreski pointed out the Macedonian trade deficit with Turkey of 416 million, due to the administrative obstacles of Turkey's policy to protect its own production. He, therefore, interceded for Macedonia to be treated as a privileged nation in the exchange between the two countries.

President of the Istanbul Chamber of Commerce promised to make efforts for obstacles in the bilateral economy cooperation to be removed, and to more completely present the Macedonian enterprises and economy to his colleagues.

The two countries' businessmen also discussed the aspects of the future cooperation.

[08] MACEDONIAN AID FOR BOSNIA

[09] SOON A MACEDONIAN MEMORIAL HOLOCAUST CENTRE

The Centre will be placed on the location of a previous Jewish settlement, near the Stone Bridge in Skopje, and is planned to include a museum, a synagogue and a culture centre.

This will be the first such Centre in Europe, besides the existing ones in Jerusalem, Washington and New York.

[10] SPECIAL UNITS AGAINST 'OMO ILINDEN'

[11] MACEDONIA SLOWLY SOLVES THE RECESSION

[12] SEVERAL MANIFESTATIONS AT SKOPJE FAIR

The first exhibition of ecological equipment in Macedonia, called 'Mak-control, Mak-ecology, Mak-thermo', was also opened at the Fair yesterday, on which participants from Hungary, Bulgaria, FR Yugoslavia, Slovenia and Japan are presenting their products.

Today, the sixth Balkan Tourist Market, 'BTB '96', will be opened at the Skopje Fair.

MILS SUPPLEMENT:

[13] Unfettered and Alive

('Wall St. Journal', Central European Economic Review, March 1996)

Steel plates for ships' hulls come out the other end, bound by rail car to the Greek port of Salonika.

South along the Vardar River in Negotino, the 'Povardarie AD' winery is also humming. For weeks, it has run at three shifts a day to meet a huge wine order from the British supermarket chain 'Asda' PLC.

None of this would have been possible just six months ago.

But with its borders now open and trade again flowing, Macedonia is springing back to life.

The United Nations sanctions against Serbia and the 20-month Greek trade blockade nearly choked this landlocked country of two million, still known by its official name as the Former Yugoslav Republic of Macedonia. Its economy by last year had shrunk to half its 1989 level. Foreign investors were almost nonexistent.

No longer. Having halted its economic slide, Macedonia this year may even inch into positive growth, thanks to strengthening exports. Inflation has steadied at around 10% a year, after hitting a high of nearly 2 000% in 1992.

American, German, British and especially Greek businesspeople are scouting opportunities in everything from auto production to mining.

'They have achieved economic wonders against the most horrific odds,' the World Bank's acting representative, Alberto Eguren, says of the Macedonians. 'Now they can move with confidence into the growth phase.'

Prime Minister Branko Crvenkovski, elected in 1993, remembers his first crisis in office after the Greek trade embargo began: finding enough gasoline for the country's ambulances. 'We managed,' he says, smiling.

Much has changed since then.

'We cannot expect instant change,' says the bearded prime minister. 'But what is encouraging is that each month brings an increase in production.'

Despite the embargo, Mr. Crvenkovski has struck to an ambitious plan to dismantle and sell off the 25 huge concerns that once dominated Macedonia's economy, as well as hundreds of smaller ones. To date, the government has sold more than 600 state companies, largely through employee and management buyouts. Another 396 sales are in the works.

Yet so far, only six privatized companies have gone to foreign buyers. 'In a way it's disappointing,' says Verica Vasileva-Markovska, head of the Macedonian Privatization Agency. But, she adds, 'company ownership is now clear and the way has been made easier for foreign partners to come in. And they will come.'

Some are already here. The Greek metal trader 'Myltilinaios' cut a $20 million marketing deal in November with 'Sasa Mining', Macedonia's biggest extractor of lead and zinc. Two Swedish furniture makers, 'International Furniture & Wood' and 'Nebrius & Jonkoping', last year spent 1.9 million marks ($ 1.3 million) to buy a state furniture company in Kocani.

Greek investors in particular are eyeing targets ranging from the country's rich mineral resources to its textile, tobacco and metals factories. Prospectors also include the German battery manufacturer 'Varta' AG, which is considering building a factory here, as is 'Volkswagen' AG subsidiary Audi. The Greek subsidiary of 'Heineken NV' is negotiating a deal to have Skopje's Brewery 'Pivara' produce the Dutch beer under contract. And the U.K.'s 'BPB Gypsum has began to court local gypsum producer AD Radika Debar.

Until the big deals start to happen, though, Macedonia must do the hard work on its own. It won't be easy. Some 18 000 companies have sprung up since 1990. But most are small bakeries, restaurants and the like - hardly the stuff to fuel an economic rebirth. Nor does growth come smoothly.

Bank loans to invest in new equipment often require twice their value in collateral and cost a crippling 22% a year.

(end)

mils news 17 April, 1996