News from Bulgaria / Jan. 10, 1996

From: [email protected] (Embassy of Bulgaria)

Bulgarian Telegraph Agency Directory

CONTENTS

EMBASSY OF BULGARIA WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

[01] PRESIDENT ZHELEV'S NEW YEAR MEETING WITH DIPLOMATS

In 1995 Bulgaria pursued its traditional foreign policy of seeking integration into the European and the Euro-Atlantic structures, President Zhelev said, wrapping up Bulgaria's achievements over the last year. This policy was manifested by Bulgaria's filing an application for official membership in the European Union, he emphasized. Mr Zhelev added that the country also gained the support of its southern neighbours and other states for membership in NATO. Bulgaria continued to construct the infrastructure of the Balkan region which is viewed as a strategic way of settling the conflicts and easing the tensions in the Balkans, Mr Zhelev said. The Bulgarian President thanked the ambassadors and their countries for their support, without which Bulgaria's achievements would have been impossible.

Among the international events in 1995 President Zhelev singled out the signing of the Dayton agreement which initiated the process of settling the conflicts in the territory of former Yugoslavia - an event which Bulgaria welcomes. According to President Zhelev, the official celebrations of the 50th anniversary since the end of World War II manifested the peoples' willingness to put an end to war forever and establish lasting peace.

The doyen of the diplomatic representation here, the Ambassador of Libya Mohammed Farah Al-Gamudi read an address on part of the diplomatic representatives. Speaking about 1995 he drew the attention to the celebrations on the 50th anniversary since the establishment of the United Nations which is a proof of the peoples' aspirations for a better future. Mr Al-Gamudi expressed warmest wishes for the coming year and bid progress, growth, security and peace to the whole Bulgarian nation.

[02] BULGARIAN PRESIDENT ZHELEV TO VISIT CROATIA, BOSNIA

The Bulgarian President is expected to confer with the President and the Prime Minister of Croatia and to address the Croatian parliament.

At the invitation of President Alija Izetbegovic President Zhelev will also visit the Republic of Bosnia and Herzegovina on January 19, the press office also said.

[03] CONDOLENCES ON THE DEATH OF FRANCOIS MITTERRAND

"Please accept the sincere condolences of the Bulgarian government. I would also like to offer my personal condolences on Mr Mitterrand's death," the letter says.

Foreign Minister Georgi Pirinski also cabled his condolences to his French counterpart Herve de Charette, the Foreign Ministry said today.

"Please accept my sincere condolences on the death of President Mitterrand. We will always remember his remarkable contribution to European and world politics and to the promotion of Bulgarian-French relations," Pirinski writes.

[04] PARLIAMENT DEBATES PROPOSED OF NO CONFIDENCE IN THE CABINET OF VIDENOV

On Friday, the opposition forces in Parliament, the Union of Democratic Forces (UDF), the Popular Union and the ethnic Turks' Movement for Rights and Freedoms submitted a draft proposal for a vote of no confidence in the government with the motivation that the cabinet allowed the export of grain and flour without ensuring the necessary quantities to meet the domestic grain demand.

Today, the opposition blamed the cabinet that by allowing the export of grain it favoured companies and groups that are close to the BSP. Due to the low purchase prices and export duties in this country, the grain exporting companies had a guaranteed profit of at least US$ 20 per tonne, UDF MP Alexander Bozhkov said. He further recalled some controversies in the data released by the various state institutions about this year's grain crop in Bulgaria. According to the National Statistical Institute, the produced grain amounts to 3.6 million t; the figure is 3.2 million t according the Ministry of Agriculture and Food-Processing, and 2.816 million t according to a recently published unofficial report of the Interior Minister. The opposition holds a view that the false belief that the grain crop is a lot greater than the quantities necessary to meet the domestic demand is being deliberately maintained so that all restrictions on the export of grain be lifted.

The data about how much grain has been exported are also controversial: the official figures set the allowed export at 650,000 t while the opposition claims that the exported grain is at least twice as much.

BSP MPs maintained the view that there is a grain problem but it is not a grain crisis. Prime Minister Videnov admitted that there is a grain problem. According to Socialist MPs, the grain was not exported but put in private storage facilities in anticipation of higher prices. The cabinet should take measures to return the grain on the market through market means, said most of the Socialists MPs who took the floor.

Deputy Prime Minister and Minister of Trade and Foreign Economic Cooperation Kiril Tsochev said that the key problem with the grain crops stems from the absence of a long-term policy. "There cannot be applied one or other type measures necessitated by the current state of affairs," Tsochev said. Socialist MPs also took a stand in favour of drafting a long- term policy for the production of grain.

In his speech, Videnov criticized the opposition for politicizing the debates. "The Socialist cabinet has not underestimated the bread issue," Videnov said, admitting the presence of a grain problem but stressing that the cabinet did not evade responsibility. "The cabinet will do all within its powers," Videnov said and spoke about subsidies to grain growers, consumers' protection through monitoring prices, and ensuring the smooth functioning of the Bulgarian grain market. Videnov called on the MPs to vote their conscience tomorrow.

During the discussion, Socialist MPs stressed that since they elected the council of ministers it is they who will decide whether and when the cabinet needs changes. Stefan Gaitandjiev of the EcoGlasnost Political Club (one of the BSP's coalition partners) said that the Socialists should review their performance and if necessary make reshuffles in the cabinet immediately after the passage of the 1996 National Budget Bill (the bill was approved at a first reading debate in December 1995).

For two months now the grain issue has been one of the most widely discussed topics in the national dailies. It revealed the presence of some controversies within the BSP.

This is the second vote of no confidence in the government proposed by the opposition. In the autumn of 1995, UDF made a no confidence motion because of a road accident which killed 14 soldiers but the majority rejected the it.

Under the Constitution, the cabinet falls if the no confidence vote is supported by more than half of the 240 MPs.

[05] COMPENSATION FOR REFUGEES OF AEGEAN TRACE POSSIBLE AFTER

Descendants of some 30,000 families that fled Greece during World War Two demand compensations for property left back in Greece that is believed to have been used for settling Bulgaria's debt to Greece.

Bulgarian-Greek property and financial disputes dating back to the two world wars are settled with an 1964 agreement under which this country paid Greece USD 7 million and undertook to release water to Greece for a period of 60 years.

The Finance Ministry found that the property of Bulgarian refugees have never been used for settling the Bulgarian debt to Greece under the above agreement, as the Land Act says, said Hristo Papazov who's in charge of compensations at the Agriculture Ministry. Therefore amendments should be made to those texts of the Land Act regulating the granting of compensation to this group of refugees, according to Papazov.

The Land Act envisages that WWII refugees from Aegean Trace and Macedonia are entitled to compensation in the form of state-owned land or vouchers for mass privatization.

In spite of the procedural obstacle, the Agriculture Ministry is reviewing the 5,000 compensation claims filed to date, Papazov said. Only 40% of claimants demand compensation for land - adding up to a total of 10,000 ha while the rest seek compensation for movable property, for which the effective law makes no provision. By the end of May claimants of the former group will be expected to state in written the form of compensation they want: privatization vouchers or land, Papazov said. According to him, the procedural obstacle can be eliminated if the Foreign and Finance Ministry make a new interpretation of the 1964 agreement between Bulgaria and Greece.

[06] BULGARIAN TEACHERS BRACE UP FOR STRIKE ACTION

The teachers, who are traditionally the worst paid of all Bulgarian intellectuals, demand a 2,000 million leva increase in 1996 budget appropriations for wages in secondary education and 320 million leva for urgent repairs in the Bulgarian schools. Bulgarian schools are falling into ruin because of lack of funds and the constantly growing crime rate in Bulgaria, including among youngsters.

This would make it possible for the average salary of the Bulgarian teacher to be raised from 5,542 leva to 8,527 leva, Ms Takeva said. The 1996 Budget Bill, passed on first reading, allocates 18,875 million leva to the secondary education wages fund which are insufficient for the needs of the Bulgarian schools, Takeva also said.

The trade unions also insist on the preservation of the right of the teachers to retire, if they wish, five years before reaching the retirement age fixed in the Labour Code or the setting up of an additional pensions fund for teachers with the participation of the state to guarantee the social stability of teachers.

The teachers also demand that the National Budget Act include texts guaranteeing the regular payment of wages to the teachers and coverage of social costs in secondary education. "If our demands are rejected we will resort to strike action," Takeva said. It is now common practice to delay the payment of teachers' wages which increases social tensions among teachers.

The form of protest will be decided on after January 17. Tomorrow the TUTB will resume its negotiations on the demands it has raised with representaives of the parliamentary groups and the parliamentary Education and Science Committee.

[07] BUSINESS PRESS

The population may lose its confidence in the lev and use its lev deposits to buy hard currency, "Standart News" writes quoting BNB experts. Bankers expressed fears that, if this happens the dollar will surge and the hard currency reserves will empty, the paper writes.

The proposed amendment to the National Bank of Bulgaria Act which aims to replace the effective principle of team bank management with the inappropriate principle of one-man management will create conditions for destabilization of this institution, "24 Chassa" writes referring to BNB Vice Governor Mileti Mladenov. Central banks should be handled with care due to the danger of inflation and currency crises, Mladenov notes.

The Glavbolgarstroi state-owned company is the main contractor for the overhaul and the reconstruction of the Sofia Airport, "Pari" writes. According to the paper, this decision was taken at yesterday's meeting of the company's and the Transport Ministry representatives.

The reconstruction will take two years and will cost some 120 million US dollars, Glavbolgarstroi experts said. The reconstruction project includes a hotel and new passenger terminal. The company will make a major repair and extension of the runway. A second one will not be constructed due to the lack of funds, "Pari" quotes as saying Stanislav Velinov, Deputy Transport Minister and Chairman of the Airport's new Board of Directors.

All contracts of the Sofia Airport with companies will be reconsidered, "24 Chassa" writes. The contract with British Petroleum for kerosine deliveries will also be revised because of the unfavourable conditions set in it, the paper says.

It is not clear yet which companies will inspect Unit One of the Kozlodoui Nuclear Power Plant in the spring, "Standart News" writes referring to Russian Deputy Minister of Atomic Energy Viktor Sidorenko. He is on a visit to Bulgaria to coordinate a program for the tests. The samples are expected to be taken by Russian experts as they have designed the reactor, Sidorenko is quoted as saying.

A team of experts leaves for Brussels today to discuss compensations for the switching off of Unit One at the European Commission, "24 Chassa" writes quoting Yanko Yanev, Chairman of the Committee for Peaceful Uses of Atomic Energy.

A mission of the World Bank will visit Bulgaria in late January, "Douma" writes quoting Lyubomir Mitov, an expert in the bank. The mission will discuss with Government ministers possible assistance of the World Bank for separate branches of Bulgarian economy, the paper says. The mission will familiarize the Bulgarian Government with the World Bank strategy and priorities in Bulgaria.

[08] BULGARIA-RUSSIA: THE TOPENERGY SHAREHOLDERS TO MEET THI

Today's issue of The Official Gazette published the court registration of Peter Subev as new member of the Managing Board of Bulgargas, the Bulgarian partner in Topenergy. Subev comes to replace the former Bulgargas chief, Angel Popov who was dismissed by the government.

The general meeting of Topenergy is expected to name the new Bulgarian shareholders, who will get nearly 100% of the shares issued after the Topenergy increased its capital from 60 to 120 million leva. It emerged after the November meeting of the Topenergy shareholders that Bulgargas will keep its 25.1% controlling interest. Changes in the Managing Board of the Bulgarian-Russian joint venture are expected at the demand of the new members of the Supervisory Board. The private companies to enter Topenergy as shareholders, too, are likely to demand seats in the Supervisory Board.

The new shareholders are not entitled to vote at the general meeting, expected to take place this Thursday or Friday. The decision for increasing the capital of Topenergy was registered at court yesterday, said Andrei Loukanov. According to him, within a week the partnerships holding an interest at Topenergy after it increased its capital, will be in control of their rights.

The agenda, adopted on December 17 in Moscow before the meeting was suspended, includes changes in the Supervisory Board. However, without the right to vote the new shareholders will not be able to benefit from this item on the agenda and get their representatives into the Supervisory Board, before the Bulgarian side implement the November 7 decision for increasing the capital, analysts say. Multigroup Bulgaria Holding, Overgas Inc., First private Bank, Bulbank and Chimimport will each get a share of the 24.9% Bulgarian interest after the increase of the Topenergy capital.

On November 8 all Bulgarian members of the Supervisory Board - Nikolai Vulkanov and Ivan Kolev of Multigroup and former Energy Committee chief Nikita Shervashidze - were replaced by Krassimir Nikolov, CEO of Bulgargas and chief of the Prime Minister's Office, Roumen Ovcharov, First Deputy Chairman of the Energy Committee, and Borislav Georgiev, Deputy Minister of Trade and Foreign Economic Development.

Topenergy was set up on May 17, 1995 as a partnership to supply gas to Bulgaria and transit it to neighbouring countries. Bulgaria and Russia got a 50% interest each. Soon after it was established, Topenergy got in the centre of tension after protests that the management of the joint venture was appointed without taking into consideration the opinion of the Bulgarian government. The line-up of the Topenergy Managing and Supervisory Boards includes people who are directly involved in the Multigroup Bulgarian economic conglomerate. The press voiced concern over the possibility for the Bulgarian state interest to shrink at the expense of economic groups after Topenergy increase its capital.

The decision for increasing the capital of the partnership from 60 to 120 million leva was taken at the November 7-8 meeting of the Topenergy shareholders held in Moscow. In its capacity as principal of Bulgargas, the Bulgarian government decided that the Bulgargas' share in Topenergy remain unchanged.

[09] BULGARIAN SHIPPING COMPANY EXPECTS NEW PASSENGER SHIP

The Evredika catamaran is at the French port of Brest waiting for calmer weather to sail for Bulgaria.

The 370-passenger Evredika will be the second high-speed flying cat after Ahinora also produced by the Kwarner Vilstroeng Norwegian ship builder.

The BSS people believe Evredika will help change the image of Bulgarian sea tourism and will fill a gap in Bulgarian passenger shipping. Only within one season, Ahinora services over 14,000 tourists and is now in Egypt under a six-months contract. In the busiest tourist season starting in May and lasting until September, Ahinora and Evredika will both be in Bulgarian waters.

[10] BRITISH MUSEUM KEEPS 640 YEARS-OLD BULGARIAN TREASURE