MILS NEWS 18/04/96

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

Macedonian Information Liaison Service Directory

CONTENTS

MILS NEWS

Skopje, 18 April 1996

[01] HIGH NATO DELEGATION IN MACEDONIA

Macedonian Defense Minister Blagoj Hanjiski, yesterday in Skopje, talked to a high delegation of the Coordination NATO Office from Monsk, Belgium, led by its director General- Major Gunar Lange, informed Macedonian Radio.

They discussed on the operationalisation of the Macedonian individual programme activities, that are being coordinated in this Office, the appointing of Macedonian military attach,s to NATO headquarters and the Macedonia's joining the Committee for Planning and Revision, as a higher level for associating in NATO. The high delegation positively estimated the conditions for joining NATO that Macedonia had fulfilled to date, and expressed readiness to support its joining the Planning and Revision Committee.

General-Major Lange stated for Macedonian Radio that it had still not been decided what countries - members of the 'Partnership for Peace', will become members of NATO.

[02] VANCE DOES NOT EXPECT ANY PROGRESS IN THE NEW YORK TALKS

Before the start of talks between the Macedonian and Greek Ambassadors Ivan Toshevski and Hristos Zaharakis, a high representative from the UN mediator's office, Cyrus Vance, said that Mr. Vance had not expect any progress or result from this round of talks, because neither of the two government was ready to accept any compromise due to the political situations in Skopje and Athens.

Greek papers gave rather similar comments yesterday, and mostly speculated with Vance's returning of the mandate. The possibility for direct Skopje-Athens negotiations, with a US monitoring, was also mentioned.

Macedonian Television reported the information of Sky Radio that Vance's returning of the mandate might be decided by the UN Security Council. A Greek official in New York, in his statement for Sky Radio, said Greece was ready to discuss variants of complex names of its northern neighbour, but was not ready to officially agree with a final solution which would contain the term Macedonia.

Meanwhile, Greek media often cited the statement of Macedonian Foreign Minister Frchkovski, that the only resignation Macedonia could make would be to allow Greece to name its northern neighbour however it likes.

[03] FRCHKOVSKI - GRADUAL APPROACH TO MONITORING MISSIONS IN MACEDONIA

At the meeting with the US Ambassador to OSCE in Vienna, Sam Braun Junior, Macedonian Foreign Minister Ljubomir Frchkovski said Macedonia would intercede for a gradual approach to the different kinds of monitoring missions on its territory to be introduced. The extension of the same mandate of monitoring missions in Macedonia, originating from former SFRY, could be counterproductive in future, he added. According to Frchkovski, the different mandates of such missions in different countries should be specified.

During the talks of Minister Frchkovski with the Austrian Parliament Vice President Hans Fischer, he said the recognition of Macedonia by FR Yugoslavia under the constitutional name was a positive precedent of the recognition of Macedonia's continuity from former SFRY, which will probably reflect to the other newly formed countries. After the meeting, Frchkovski said Austria would support Macedonia's individual approach to the integration in the EU.

Meantime, Macedonian media informed that Frchkovski gave an interview for the Austrian paper 'Courier', in which he emphasised the role Macedonia played in the preserving the peace in the Balkans.

[04] MACEDONIA SUCCESSFULLY COOPERATES WITH EBRD

After returning from the annual Assembly of the EBRD Governors Council, held in Sofia, Macedonian Vice Premier Jane Miljoski for Macedonian Radio stated that it was concluded that Macedonia had been given more loans by this Bank than the other countries. He further said the conclusions adopted at the Assembly (to raise the Bank's capital because of its highly important role in the transition process of former socialist countries), were in favour of Macedonia and will bring an influx of money.

Miljoski also informed that he and the EBRD team in charge of Macedonia mostly discussed the possibilities for investing in the small and medium companies programs, the rail track to Bulgaria and the extension of the gas pipe line.

Jane Miljoski met with the Bank President Jaque de la Rosier, as well, to talk about forming a fund which would finance an additional capital turnover for Macedonian enterprises, which is one of the main problems of the Macedonian economy.

[05] END OF THE TURKISH ENTREPRENEURS MISSION TO MACEDONIA

The visit of the Turkish entrepreneurs delegation to Macedonia was concluded yesterday by signing an Agreement on Trade and Economic Cooperation between the Macedonian and Istanbul Chambers of Commerce. This Agreement, the efforts of the competent authorities to create stimulation conditions by customs duties reducing, by joint investment, cooperation between banks, production corporations, etc. , should create conditions for an intensive development of the cooperation and exchange that might reach $ 500 million per year in future. This was said at the press conference yesterday, when the President of the Istanbul Chamber of Commerce Mehmed Jildrim stressed that the visit was a research mission, during which several areas of development of the bilateral cooperation were set. In that context, he mentioned the winter tourism in Macedonia and the summer one in Turkey. He informed that about 100 000 Macedonian citizens had spent their summer vacations in Turkey last year.

The Turkish delegation yesterday met with Macedonian Premier Branko Crvenkovski and Economy Minister Bekjir Zutta.

[06] HEAD OF SKOPJE'S 'MULTIGROUP' SUBSIDIARY FOUND HANGED

The representative of the Bulgarian corporation 'Multigroup' in Skopje, Ivo Janchev, was found hanged at the company's premises in the International Management Centre in Bistrica near Sofia. As 'Makpress' reported, Janchev was buried on 12 April, and the Bulgarian media informed about it several days later from unknown reasons. As alleged, the investigation had led to the conclusion that it was a suicide, but the possibility for a murder had not been excluded. According to Bulgarian media, Janchev had left a letter for the President of the corporation Ilija Pavlov, but its content had still not been revealed.

Macedonian public became familiar with 'Multigroup' after some journalistic suspicions (mostly expressed by the paper 'Thessaloniki' and the journalist Teos Cosinopoulos) that it had something to do with the assassination attempt on President Gligorov. Janchev denied these accusations on a press conference last October in Skopje. Ivo Janchev had worked undercover in the past, and had also been a Bulgarian champion in the pole vault discipline.

[07] NEW THREATS TO 'OMO ILINDEN'

The Bulgarian Chief Prosecutor Tatarchev yesterday repeated his threat to the 'OMO Ilinden' Organisation, saying that he 'would wait for the decision of the Mayor of Sandanski town for the manifestation of 'OMO Ilinden, and then he would intervene, bearing the complete responsibility'.

Meanwhile, the Sandanski Mayor had been refusing to accept the request for the manifestation planned for next Sunday, and the Blagoevgrad Internal Affairs Office had asked for help for the police at the time of the meeting.

Macedonian media informed that the Bulgarian chauvinistic Organisation VMRO-SMD had, on the other hand, announced a meeting at the Monastery of Rozen, to mark the 55th Anniversary of 'the entering of the Bulgarian Army in Vardarian part of Macedonia'.

The 81st Anniversary of the death of Jane Sandanski, the great Macedonian revolutionary, was planned to be marked at the Monastery of Rozen, and many guests from Macedonia were expected to arrive. The Macedonian Ambassador to Bulgaria Gjorgji Spasov was to lay a wreath on the grave in the name of Republic of Macedonia.

[08] DRAFT LAW ON CUSTOMS TARIFFS PASSED

Macedonian Parliament passed the Draft Law on Customs Tariffs yesterday, although the MPs remarked to the high taxes on the raw and reproduction materials and on the light vehicles . Finance Minister Taki Fiti replied that the ratio between the protective, fiscal and developing function of the customs duties could not be achieved.

During the discussion about the Law on Administrative Taxes, the MPs from the Albanian parties asked for the citizenship tax to be reduced to $50, and not to $250, as the government had suggested (it used to be $500). After a long discussion, the request of the Albanians was refused, and the Law was adopted without any changes. The Law on Hunting was also adopted.

[09] PLAN FOR ALLOTTING THE PHARE FUND

Macedonian government yesterday adopted the last year's Report on the work of the Compensation PHARE Fund for Macedonia, and set the plan for allotting the funds this year. The money will be used for solving social problems, for interventions in the economy, for environment protection, for experts training, and for promoting the cultural and economic activities of Macedonia in the EU countries. The government also passed the Draft Agreements made by the Macedonian delegation with the World Bank in Washington on the EBRD credits for the private sector, and the project for private agriculture production support.

The proposals for adopting the changes in the Laws on Primary and Secondary Education referring to the evidence were also adopted.

[10] CONSTITUTIONAL COURT - INCOMPETENT FOR THE ELECTION OF THE GOVERNMENT

The Constitutional Court of the Republic of Macedonia stated it was incompetent to decide on the election of the Government which was reconstructed two months ago. The decision on its reconstruction has been denied by many citizens as the process of the reconstruction, as said, had not been in accordance with the Constitution. The Constitutional Court stated the decision was not an individual act that may allow a concrete election of a government, which, it said, is not in its competence.

[11] MACEDONIAN TOURISM TRADE MARK PROMOTED

At the Balkan tourist market which is held annually at the Skopje fair, Macedonian Ministry of Economy promoted the trade mark of the Macedonian tourism. It will be a part of all tourist and propaganda materials that will promote Macedonian tourism abroad.

Simultaneously the first Common Tourist Book was promoted. It has information and prices of the tourist services in Macedonia which is aimed mostly for the foreign tourist partners.

MILS SUPPLEMENT

[12] Next Stage for Macedonia (Part 1)

('Financial Times' - East European Market, February 16 1996)

Macedonia's Privatisation Agency, which has sold off assets in 604 companies and is selling a further 396 in the coming months, expects the process to enter a new phase with an onrush of investment in the private sector. It predicts this investment will be two-pronged: with the impetus coming from cross-fertilisation of Macedonian companies and local investment, and an increasing interest from foreign capital.

So far, only six of the privatised companies have involved foreign capital. In most other cases the 'socially-owned capital' of the privatised companies has been bought by managements and workers. 'At first we were a little worried at the apparent lack of foreign interest,' said Verica Hadzi-Vasileva Markovska, director of the Privatisation Agency. 'But let's face it, the climate was not good. Now our major problems are behind us and it has been made easier for the foreign investor. We will now enter the high investment phase of privatisation.'

'Varta', the German battery manufacturer, is exploring a regional plant in Macedonia, based on the country's zinc deposits and concentrate production. The Greek subsidiary of 'Heineken' is in discussions with 'Skopska Brewery' with the possibility of producing the Dutch brew locally. Other foreign soundings include the German car-producer 'Audi' for a regional assembly plant for the Balkans, and the UK's 'BPB Gypsum' has been eyeing the gypsum producer 'Radika Debar'.

Other investment prospects centre around Macedonian's agriculture, mining and textile industries with the interested parties the Greek and Turkish subsidiaries of western companies.

However, in the absence of an immediate huge influx of foreign capital, it will be up to locally-generated investment to be the pathfinder. 'Money will not be forthcoming from our banks as before,' says Dr. Tito Belicanec, professor of company law at Skopje University and an architect of the privatisation process. 'The banks lack the capital and the government has put an end to the old practice of milk-cow lending.'

'Nevertheless, the companies will have to be export and profit-oriented. And this needs investment. We have 18 000 new small private companies. This has become a very important new sector in our economy. Over the past five years new capitalists have been created with resources to buy into enterprises with social capital. We are confident many of these small businesses will buy into the bigger, ailing, but potentially profitable companies.'

Black market boost. Clearly a good many business successes were spawned by the black market that feasted off the UN sanctions against neighbouring Serbia and later, the 20 months Greek trade blockade. The black economy accounted for 30 per cent of the GDP and helped offset the $5bn that the government estimates the UN sanctions cost Macedonia.

However, even with the north and south borders closed, Macedonian companies succeeded in exporting $1.8bn worth of goods annually for the past three years.

Now, with the major trade routes reopened, export prospects are looking up. 'In many factories the situation is getting back to normal' reports Tome Nenovski, the National Bank's deputy governor. This is a view shared by senior ministers and is in evidence among key exporters. 'Almako', which produces and exports a wide product range, including metals, raw materials and processed produce, wines and chemical industry equipment, is a prime example. In recent months, the company's lead and zinc mines have come up to full production. Their smelters have already got back to 90 per cent of capacity, the textiles are working at 80 per cent and their winery has reached 90 per cent.

'Almako', for one, also lends credence to the government theory that successful local companies will provide the kick-start for the investment growth in newly privatised industries. The company has its eyes on the Povardarie winery, at Negotino, which has made the breakthrough for bottled Macedonian wines on the UK market. 'Almako wants to transform the local wine industry from a bulk exporter of cheap wines to the value added bottled production.

Already, the 23 loss-makers, who previously employed 60 000 people, or 10 per cent of the workforce, 16.3 per cent of gross social product, and notched up 80 per cent of all Macedonian companies, have been broken up and await their fate. The sprawling 'Zelezarnica' steel mill was once one of the biggest in Yugoslavia employing 8 700 workers in the 1960s. Now it has been carved into 13 'productive units', or component parts, with the workforce trimmed to 2 000. The fittest companies have already attracted foreign attention.

(to be continued)