RFE/RL Newsline, Vol. 3, No. 172, 99-09-03

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RFE/RL NEWSLINE

Vol. 3, No. 172, 3 September 1999

CONTENTS

[A] TRANSCAUCASUS AND CENTRAL ASIA

[01] ARMENIA, KAZAKHSTAN PLEDGE TO BOOST ECONOMIC TIES

[02] AZERBAIJANI PRESIDENT WILLING TO AMEND LOCAL ELECTION LAW

[03] GEORGIAN MINISTERS MEET WITH CHECHEN VICE PRESIDENT

[04] RUSSIAN FOREIGN MINISTER VISITS AZERBAIJAN

[05] OSCE TO MONITOR PARLIAMENTARY ELECTIONS IN KAZAKHSTAN

[06] KAZAKHSTAN STILL PLANS TO SELL TENGIZCHEVROIL STAKE...

[07] ...DESPITE GROWING OPPOSITION

[08] KAZAKH OPPOSITION CLAIMS MORE STATE COMPANIES TO BE SOLD

[09] KAZAKHSTAN'S STATE PUBLISHING HOUSE REFUSES TO PRINT SOME

[10] KYRGYZ LEADERSHIP DISCUSSES HOSTAGE CRISIS

[11] KYRGYZ OFFICIALS DISCUSS DEBT RESTRUCTURING

[12] TAJIKISTAN SETS DATE FOR PRESIDENTIAL ELECTIONS

[B] SOUTHEASTERN EUROPE

[13] UCK TO BECOME CIVILIAN CORPS OR NEW ARMY?

[14] THACI APPEALS TO SERBS

[15] UN 'REMOVES' KOSOVA FROM YUGOSLAV CURRENCY SYSTEM

[16] AUSTRALIAN SAYS SERBS TORTURED HIM

[17] U.S. AIR FORCE: DOWNED PILOTS RESCUED FROM SERBIA SWIFTLY

[18] PARTY MEMBERSHIP A KEY TO SERBIAN JOBS?

[19] HOLBROOKE LAUDS DODIK

[20] PLAVSIC ON HAGUE LIST?

[21] CROATIAN PARTIES REAFFIRM PACT

[22] ITALY DEMOLISHES ALBANIAN BUNKERS

[23] ROMANIA INVESTS IN MOLDOVA'S ENERGY SECTOR

[24] MOLDOVAN PARLIAMENTARY CHAIRMAN ATTACKS PRESIDENT

[25] BULGARIAN VICE PRESIDENT EXPECTS POLITICAL CLIMATE TO

[26] PARTIES GALORE IN BULGARIAN LOCAL ELECTIONS

[C] END NOTE

[27] REFORMING THE BULGARIAN MILITARY

[A] TRANSCAUCASUS AND CENTRAL ASIA

[01] ARMENIA, KAZAKHSTAN PLEDGE TO BOOST ECONOMIC TIES

one-day visit to Astana on 2 September, Robert Kocharian

met with his Kazakh counterpart, Nursultan Nazarbaev, to

discuss bilateral relations, Interfax and Noyan Tapan

reported. Both presidents noted that there are no

outstanding political differences between their countries

but agreed on the need to expand bilateral trade, which

currently totals less that $1.5 million annually. Kocharian

noted that Armenia could supply food products and equipment

to Kazakhstan, purchasing grain and raw materials in

return. He also said Armenia is interested in gaining

observer status within the Central Asian Cooperation

Organization. A friendship and cooperation agreement and an

agreement to establish a joint commission for economic

cooperation were signed during the visit. LF

[02] AZERBAIJANI PRESIDENT WILLING TO AMEND LOCAL ELECTION LAW

director of the OSCE Office for Democratic Institutions and

Human Rights, Heidar Aliev expressed willingness to accept

the OSCE's recommendations for amendments to the

controversial law on municipal elections, which opposition

parties claim is undemocratic. But Aliev predicted that

problems might occur during the municipal elections, which

are scheduled for 12 December. Azerbaijan parliamentary

speaker Murtuz Alesqerov told Stoudmann earlier that day

that the law takes account of recommendations by the OSCE

and other international organizations and complies with

international standards (see "RFE/RL Newsline," 2 September

1999). Also on 2 September, the political parties

represented in the Movement for Electoral Reform and

Democratic Elections said they will monitor the municipal

elections, Turan reported. LF

[03] GEORGIAN MINISTERS MEET WITH CHECHEN VICE PRESIDENT

Intelligence chief Avtandil Ioseliani met on 31 August in

Tbilisi with Chechen Vice President Vakha Arsanov, who is

recuperating in Tbilisi from spinal surgery, Caucasus Press

and Interfax reported on 2 September. The talks focused on

allegations made by Arsanov last week that Russian special

services are recruiting Chechens who will be sent to

destabilize Georgia's Black Sea autonomous republic of

Adjaria in order to create a pretext for Russian military

intervention there. Arsanov said the Chechen leadership

will do all in its power to thwart those plans. Speaking at

a press conference in Batumi on 31 August, Adjar Supreme

Council Chairman Aslan Abashidze downplayed Arsanov's

statement, commenting that Russia has no interest in

destabilizing the situation in his republic, according to

Caucasus Press. LF

[04] RUSSIAN FOREIGN MINISTER VISITS AZERBAIJAN

leg of a three-day tour of the South Caucasus, Igor Ivanov

held talks in Baku on 2 September with his Azerbaijani

counterpart, Tofik Zulfugarov, Prime Minister Artur

Rasizade and President Aliev. Ivanov tried hard to convince

his interlocutors that Russia "is taking very seriously

criticism of its Caucasus polices by the Azerbaijani

leadership" and wants to develop equitable relations with

all three South Caucasus states, according to Interfax.

Aliev, for his part, criticized Moscow's military

cooperation with Armenia and the failure of the OSCE Minsk

Group, of which Russia is a co-chairman, to make progress

toward resolving the Karabakh conflict. But Aliev

characterized relations between the two countries as

"friendly," despite their disagreements. Rasizade said

relations with Russia "will remain a priority" for Baku. LF

[05] OSCE TO MONITOR PARLIAMENTARY ELECTIONS IN KAZAKHSTAN

Almaty on 2 September that the organization will send a

full mission to monitor the parliamentary elections on 17

September and 10 October, Reuters and Interfax reported.

The OSCE had declined to send such a mission to monitor the

January 1999 presidential elections on the grounds that the

election law did not create equal conditions for all

candidates. Edgeworth noted improvements to that law to

ensure the accuracy of the vote tally. But she expressed

concern over the practice of invoking administrative

offenses to bar potential candidates from running and over

restrictions on freedom of speech. Edgeworth stressed that

sending an observers' mission does not constitute approval

of the conditions under which the elections are held. LF

[06] KAZAKHSTAN STILL PLANS TO SELL TENGIZCHEVROIL STAKE...

journalists in Atyrau on 2 September that Kazakhstan's

government has informed Chevron of its intention to proceed

with the planned sale of part of its 25 percent stake in

the Tengizchevroil consortium, Interfax reported. That

consortium was created in 1994 to exploit the country's

largest oilfield. LF

[07] ...DESPITE GROWING OPPOSITION

Kazakh officials have expressed reservations over the

planned sale. Uzaqbay Qarabalin, acting president of the

state oil company KazakhOil, whose predecessor Nurlan

Qapparov was fired 10 days ago for opposing the sale, said

on 2 September that the sell-off is "shortsighted" and will

weaken KazakhOil. At the same time, he admitted that

KazakhOil has no choice but to bow to the government's

decision (see "RFE/RL Newsline," 25 August and 1 September

1999). Marat Ospanov, chairman of the lower house of the

parliament, said that selling part of the stake in

Tengizchevroil is not the right way to solve Kazakhstan's

financial problems, according to Interfax on 2 September.

He pointed out that the value of the 10 percent stake in

question may double within 2-3 years from the present $1-

1.5 billion. On 1 September, Kazakhstan's Energy, Industry,

and Trade Minister Mukhtar Ablyazov told Interfax that the

value of Kazakhstan's stake in Tengizchevroil is likely to

increase significantly. But he pointed out that the country

must repay about $900 million in foreign debts this year.

LF

[08] KAZAKH OPPOSITION CLAIMS MORE STATE COMPANIES TO BE SOLD

Leaders of the Democratic Azamat (Freedom) Party told

a press conference in Almaty on 2 September that the

planned sale of part of Kazakhstan's stake in

Tengizchevroil is only the first step in what they termed

the distribution of state property among the ruling class,

RFE/RL's bureau in the former capital reported. Party

chairman Ghalym Abelseitov said government sources have

informed him that the Aqtobe-Munay and Aqtau-Munay oil

companies, the Qazaq-Mys copper smelter, the National Bank

of Kazakhstan, and KazTeleCom will also be put up for

tender. LF

[09] KAZAKHSTAN'S STATE PUBLISHING HOUSE REFUSES TO PRINT SOME

Following last month's decision by the

Kazakh government to suspend financing most official

newspapers, the state publishing house in Almaty is

refusing to publish some local newspapers, RFE/RL

correspondents in the former capital reported on 2

September (see "RFE/RL Newsline," 5 August 1999). Although

some newspapers have secured alternative sources of

funding, they cannot find another publisher. LF

[10] KYRGYZ LEADERSHIP DISCUSSES HOSTAGE CRISIS

Akaev chaired a meeting with power ministers on 2 September

to discuss how to deal with the threat posed by ethnic

Uzbek militants still holding some 13 hostages in southern

Kyrgyzstan. Akaev insisted that those hostages must be

freed unharmed. He ordered the army to set up road blocks

to prevent the militants advancing further north and

charged the government with providing all necessary

assistance to villagers who fled or have been evacuated.

Also on 2 September, First Deputy Prime Minister Boris

Silaev told journalists in Bishkek that preparations are

being made for a protracted standoff with the guerrillas.

Silaev, who held talks in Moscow with Russian government

officials earlier this week, said that promised military

hardware, including planes and helicopters, will arrive in

Kyrgyzstan soon. LF

[11] KYRGYZ OFFICIALS DISCUSS DEBT RESTRUCTURING

September, Akaev met with a visiting U.S. delegation to

discuss strengthening bilateral economic ties, RFE/RL's

Bishkek bureau reported. The delegation also held talks

with Prime Minister Amangeldi Muraliev. At that meeting it

was disclosed that in 2000 Kyrgyzstan will have to meet

foreign debt repayments equal to 40 percent of the annual

budget. The lion's share consists of a $130 million Russian

loan. Talks are under way with the governments of Russian

and Pakistan on restructuring those loans. LF

[12] TAJIKISTAN SETS DATE FOR PRESIDENTIAL ELECTIONS

3 September, Tajikistan's parliament scheduled presidential

elections for 6 November, AP and dpa reported. But AP noted

that the presidential poll may not take place if the

electorate votes in a 26 September referendum to endorse a

proposed amendment to the country's constitution that would

extend the presidential term from five to seven years.

Incumbent Imomali Rakhmonov was elected president in

November 1994. LF

[B] SOUTHEASTERN EUROPE

[13] UCK TO BECOME CIVILIAN CORPS OR NEW ARMY?

Times" on 3 September reported that officials of NATO, the

UN, and the Kosova Liberation Army (UCK) have agreed that

some 3,000 guerrillas will soon become a "lightly-armed

civilian emergency force." Western officials described the

new corps as a civilian force that will deal with

emergencies such as "forest fires, earthquakes, mountain

rescue, and reconstruction." The corps will have a military

organization, however, as well as uniforms and "sidearms to

protect equipment," the daily continued. It will also have

helicopters. UCK officers "see it as a potential core of a

national army, and are selling it to their followers as

such." General Agim Ceku, who is the UCK's chief of staff,

said: "We will build a new army in the future, and the

Kosova Corps will be one part of it." A KFOR spokesman

stressed, however, that the corps is not a new army but

rather a form of "uniformed public service." PM

[14] THACI APPEALS TO SERBS

London on 2 September that Kosova's Serbs should return

"because we are interested in establishing in Kosova a

multi-ethnic society." The UNHCR previously estimated that

170,000 of Kosova's 200,000 Serbs fled the province during

or since the recent conflict (see "RFE/RL Newsline," 12

August 1999). Also on 2 September, Serbian Deputy Prime

Minister Vojislav Seselj said in Belgrade that Serbian

police must return to Kosova "as soon as possible" to

ensure the safety of local Serbs. He stressed that "if

there are no peaceful means available, we shall have to

find other ways" to enable Serbian forces to return to the

province. PM

[15] UN 'REMOVES' KOSOVA FROM YUGOSLAV CURRENCY SYSTEM

spokeswoman for Bernard Kouchner, who is the UN's chief

civilian administrator in Kosova, said on 3 September in

Prishtina that he has issued an order allowing currencies

other than the Yugoslav dinar to legally circulate Kosova.

She added that Kouchner's own office will use German marks.

It will accept dinars only for an additional fee, dpa

reported. Observers note that since KFOR forces entered

Kosova in June, local ethnic Albanians have generally

refused to use dinars, which they regard as a symbol of

Serbian rule. The Serbian authorities are certain to

protest Kouchner's decision as a violation of Yugoslav

sovereignty in Kosova. In practice, the German mark has

been the second currency throughout the former Yugoslavia

for decades. PM

[16] AUSTRALIAN SAYS SERBS TORTURED HIM

of the two Australian aid workers just released from prison

by Yugoslav President Slobodan Milosevic, said in Sydney on

3 September that he confessed to spying under duress (see

"RFE/RL Newsline," 2 September 1999). He said that he made

the confession in April after his Serbian captors told him

"to cooperate or be strangled," Reuters reported.

Australian Prime Minister John Howard said that he will

investigate Pratt's charge, which he said he has not heard

before. PM

[17] U.S. AIR FORCE: DOWNED PILOTS RESCUED FROM SERBIA SWIFTLY

2 September that the military used highly sophisticated

technology in order to rescue two U.S. airmen downed in

Serbia on 26 March and 2 May, respectively. In each case

the pilots were rescued within hours of crashing. The

helicopters that picked them up spent "less than one

minute" on the ground. PM

[18] PARTY MEMBERSHIP A KEY TO SERBIAN JOBS?

"initiative" by Milosevic's Socialist Party of Serbia,

local employers in Pozarevac have signed contracts with 105

young professionals, the Frankfurt-based Serbian daily

"Vesti" reported on 3 September. The local branch of the

opposition Democratic Party said in a statement that it is

"immoral" that a powerful party uses its influence to win

jobs for its young members at the expense of other job

seekers. Pozarevac is Milosevic's home town and power base.

Among the firms giving jobs is the Bambi cookie company,

which recently helped finance an amusement park built by

Milosevic's son Marko. PM

[19] HOLBROOKE LAUDS DODIK

Holbrooke said in Banja Luka on 2 September that Republika

Srpska caretaker Prime Minister Milorad Dodik is "the most

promising leader of his generation in his country," Reuters

reported. Referring to Dodik's hard-line opponents,

Holbrooke added: "Throughout this area there are people who

are separatists, racists, criminals, and crooks. These are

people not only trying to destroy the [1995] Dayton peace

accords but to walk the Serb people of Bosnia-Herzegovina

back to the dark ages of six years ago" when Bosnia was

still torn by war. Holbrooke proceeded the same day to

Mostar, which he called "the most broken city in Europe, a

city whose failures exemplify the tragedy of the Balkans."

The U.S. diplomat met on 3 September in Zagreb with

Croatian President Franjo Tudjman, who assured Holbrooke

that Croatia will cooperate with the Hague-based war crimes

tribunal. PM

[20] PLAVSIC ON HAGUE LIST?

Milan Trbojevic, citing unspecified "sources," said the

Hague-based tribunal has prepared a list of 10 past or

present Bosnian Serb officials whom it wants to question in

conjunction with a case being prepared against Milosevic

for war crimes he allegedly committed in Croatia and Bosnia

before the Dayton agreement, "Vesti" reported on 3

September. Trbojevic added that his "sources" tell him that

some or all of the 10 might face indictment themselves by

the tribunal. The minister noted that he himself is on the

list, as are former President Biljana Plavsic, and Momcilo

Krajisnik, the former ethnic Serbian representative on the

Bosnian joint presidency (see "RFE/RL Newsline," 30 August

1999). PM

[21] CROATIAN PARTIES REAFFIRM PACT

opposition parties signed an agreement in Zagreb on 2

September pledging to continue their alliance against the

governing Croatian Democratic Community at least until

after the upcoming parliamentary elections, RFE/RL's South

Slavic Service reported. The ceremony was intended to

dispel rumors that the coalition is about to break up. The

coalition includes all significant opposition parties

except those on the far right. PM

[22] ITALY DEMOLISHES ALBANIAN BUNKERS

formally thanked Italian military engineers in Durres on 2

September for demolishing 32 of the country's 300,000

concrete bunkers, Reuters reported. Local soccer teams will

use the reclaimed space, and the broken concrete will be

used to build a marina. Former dictator Enver Hoxha built

the bunkers in the 1970s to defend the country against a

foreign invasion. The attack never came, but the bunkers

continue to litter the landscape. Removing them is a costly

and time-consuming task. PM

[23] ROMANIA INVESTS IN MOLDOVA'S ENERGY SECTOR

to "invest heavily" in Moldova's energy sector, Prime

Minister Ion Sturza told journalists in Chisinau on 2

September on returning from that country. Sturza said

Bucharest has agreed to write off Chisinau's $13 million

electricity debt in exchange for a 51 percent stake in

Moldova's Tirex-Petrol state company, RFE/RL's bureau in

the Moldovan capital reported. Sturza added that he and

President Emil Constantinescu agree that the Moldovan-

Romanian basic treaty must be concluded by the end of 1999.

MS

[24] MOLDOVAN PARLIAMENTARY CHAIRMAN ATTACKS PRESIDENT

In an interview with the governmental Russian-

language daily "Nezavisimaya Moldova" on 2 September,

parliamentary chairman Dumitru Diacov said President Petru

Lucinschi's drive to change the Moldovan system to a

presidential one has "tarnished the country's image"

abroad. Diacov, who heads the formerly pro-presidential

Movement for a Democratic and Prosperous Moldova Bloc, said

the changes proposed by Lucinschi have nothing in common

with the U.S. Constitution; rather, it resembles the

constitutions of "under-developed countries, with all their

dictatorships and authoritarian rulers." Diacov said that

some of Lucinschi's proposals, such as changing the

electoral system for parliamentary elections and reducing

the number of seats in the legislature, are designed to

"deflect attention...from the essence of the draft," which,

he said, is "aimed at imposing an authoritarian regime in

Moldova of the likes existing in some CIS, African, and

Asian countries." MS

[25] BULGARIAN VICE PRESIDENT EXPECTS POLITICAL CLIMATE TO

In an interview with BTA on 2 September, Todor

Kavaldjiev said he expects the country's political climate

to improve after the October local elections because, he

said, the "democratic community" will gain access to local

government structures. Most of these structures are now

dominated by the opposition Bulgarian Socialist Party.

Kavaldjiev added that his "optimism" is nonetheless

"limited" because an "undemocratic" provision in the

amended local election law abolished the right of

inhabitants of places with a population of fewer than 500

to elect mayors directly. He also said he supported

demolishing the mausoleum of communist leader Georgi

Dimitrov, noting that Dimitrov opponents such as Nikola

Petkov or Krustyu Pastouhov are "not even buried in proper

graves where friends and relatives can pay [their]

respects." MS

[26] PARTIES GALORE IN BULGARIAN LOCAL ELECTIONS

for the Central Electoral Commission on 2 September said 87

parties and coalitions of parties have so far registered

for the October local elections, BTA reported. A total of

94 parties and coalitions have applied for registration.

Also on 2 September, controversial Business Bloc leader

George Ganchev told journalists that if the Republican

Party wins the U.S. presidential elections next year, it

will back him if he decides to run for the Bulgarian

presidency. MS

[C] END NOTE

[27] REFORMING THE BULGARIAN MILITARY

When General Mikho Mikhov criticized the government in

an interview with "Standart" late last month, military

observers must have wondered whether his days as Bulgarian

chief of staff were numbered. Mikhov spoke of "tensions"

and "insecurity" among the armed forces stemming from

government plans to substantially reduce their number in a

bid to achieve integration into NATO. Saying that the plan

is "increasingly demoralizing and infuriating" the officer

corps, Mikhov noted that the Ministry of Defense's plans to

close down military schools would "reduce us to the state

of many African and Asian countries." He added that the

ministry has no plans to help those discharged under the

envisaged reform.

Judging by past practice, Mikhov is unlikely to see

the reform through. Similar criticism, for similar reasons,

triggered the dismissals in 1998 of commander of the

construction troops General Radoslav Peshleevsky, commander

of the missile and artillery forces General Angel Marin,

and two deputy defense ministers, Simeon Petkovski and

Rumen Kunchev. On one of those occasions, Prime Minister

Ivan Kostov commented that "the fairest way for all

officers who do not accept the reform of the army is to

resign."

It is not difficult to see why these officers are

opposed to the envisaged reforms. Schooled in Warsaw Pact

doctrine, with its stress on numbers rather than quality,

the Bulgarian commanders have no reason to welcome the

gradual transformation of the country's armed forces into a

significantly smaller and, eventually, professional army

that can subsist on a reduced budget.

The Kostov government has obstinately pursued the

goal of joining NATO ever since it took office, defining

that goal as a "strategic" one in its "Bulgaria 2001"

program. That plan is based on recommendations that NATO

made in its "Plan for Activities of the Candidates for

Membership in NATO," issued earlier this year, and outlines

the first of two stages envisaged by the military reform.

Covering the period 2000-2001, the first stage is viewed by

the government as decisive for securing an invitation to

join the alliance. The second stage, extending from 2002-

204, aims at ensuring that the talks with NATO will be

successfully concluded.

According to Deputy Defense Minister Velizar

Shalamanov, who presented the plan on 19 August, it is

estimated that by 2004, Bulgaria will need no more than

300-400 graduates from military academies annually. Hence,

it is unrealistic to continue financing five military

educational establishments. Rather, a new National Higher

Military School is to be founded to train officers and

sergeants.

Detailing the plan (which must be approved by the

government and the parliament) Defense Minster Georgi

Ananiev on 31 August said that by 2004, the armed forces

will be reduced from their present number of 93,100 to

45,000, and a total of 10,620 officers and 12,530 sergeants

will be discharged. Contrary to Mikhov's claim that no help

is foreseen for those about to become unemployed, Deputy

Defense Minister Zdravko Zafirov said "social adaptation

centers" are to be set up in major towns, where training

and retraining courses will be offered to such individuals.

These are to be paid the equivalent of 20 monthly wages on

being released from duty.

Military equipment is also to be drastically reduced.

By 2004, the number of tanks is to decrease from 1,475 to

750, air defense radars from 230 to 100, "aviation

equipment" from 665 to 225 pieces, and "navy equipment"

from 149 to 120 pieces. Out of the current 94 army

garrisons and 178 other units, only 49 and 71,

respectively, will remain by 2004. This will save some 75

million leva (nearly $41 million), according to Ananiev.

Further savings of some 40 million leva will be made from

the sale of Defense Ministry housing.

Another source of revenue is to be the privatization

of the country's defense industry. By 2004, according to

the plan, the assets of the army's trade companies are to

be transferred to private hands. As early as 2002, the

ministry expects some 30-40 million leva to be generated as

a result of that transfer. The income is to be partly used

toward updating the country's arsenal, although in view of

Bulgaria's economic situation, purchases of modern

technology are not expected before 2010.

The privatization of the defense in industry has

already been launched, with several companies formerly

owned by the ministry being privatized in management-

employee buy-outs. The Arsenal company in Kazanluk, the

Beta company in Cherven Bryag, and the Optielecton company

in Panagyurishte have all been privatized this way, and the

VMZ ordnance factory in Sopot may soon follow suit. That,

however, may necessitate converting at least part of the

production from military to civilian. It also poses

problems with regard to licensing and competing on foreign

markets, since it is clear that a downsized Bulgarian army

is unlikely to become a prospective client. For the time

being, the state has kept a 34 percent stake in such major

military-industrial plants as Arsenal. Whether it continues

to do so will likely depend on both military priorities and

on the pace of reform.

03-09-99

Reprinted with permission of Radio Free Europe/Radio Liberty
URL: http://www.rferl.org

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