News from Bulgaria / Jan 15, 96

From: [email protected] (Embassy of Bulgaria)

Bulgarian Telegraph Agency Directory

EMBASSY OF BULGARIA - WASHINGTON D.C.

BTA-BULGARIAN TELEGRAPH AGENCY

BULLETIN OF NEWS FROM BULGARIA

CONTENTS

[01] BULGARIA, BOSNIA AND HERZEGOVINA ESTABLISH DIPLOMATIC RELATIONS

In the communique the two sides state their desire to promote friendship and bilateral cooperation on the basis of equal treatment, mutual recognition of sovereignty, independence, territorial integrity and non-interference in home affairs. The two countries express their readiness to adhere to the principles of the UN Charter and the Vienna Convention on Diplomatic Relations, signed on April 18, 1961. The document was signed by Ambassador Ivo Petrov, Permanent Representative of Bulgaria to the Organization for Security and Cooperation in Europe (OSCE) and Ambassador Mahir Hadjiahmetovic, Permanent Representatives of Bosnia and Herzegovina to OSCE.

[02] BOUTROS GHALI: BULGARIA CAN PLAY MAJOR ROLE IN RECONSTRUCTION

Boutros Ghali further said he is aware as to the losses and problems the conflict in former Yugoslavia brought to Bulgaria and the other countries in the Balkans. He fully shares the view of Bulgarian Prime Minister Zhan Videnov that the Balkans need post-war economic reconstruction and stabilization just as much as they need the preservation of peace, and the sooner this enters the agenda, the better.

Answering a question by the BTA, the UN Secretary General said the UN Security Council is the only body competent to decide on Bulgaria's possible participation in the reconstruction of the Balkans after the end of the regional conflict; on the role in this process of countries like Bulgaria that have been affected adversely by the implementation of UN sanctions; and on other ways of compensating embargo-related losses.

Creating a reliable and long-lived system for security, social and economic cooperation in the Balkans is vital for the world community, according to Boutros Ghali. The countries in the region, including Bulgaria, have suffered enough wars and conflicts. These wars and conflicts should end and guarantees should be provided for the peaceful existence of all Balkan nations, the interviewee said. The UN is committed to this task and the role of this organization should not be underestimated in spite of the difficulties it faces, the UN Secretary General said.

Boutros Ghali hopes that Bulgaria will overcome the difficulties and will be able to make its due contribution to the political and economic stabilization of the region. He believes that the results of the recent elections will help this country carry out this highly responsible mission. He stressed in conclusion that thanks to the efforts of the Bulgarian nation, the reforms launched by the government and its new foreign policy, Bulgaria is assuming a new and more important role within the international community. Boutros Ghali also said this was the reason why he appreciated so much the presence of Bulgarian President Zhelyu Zhelev at the UN General Assembly session that marked the 50th anniversary of this organization, and hailed Dr. Zhelev's address of October 24 in which he said that Bulgaria is gradually reclaiming its place in the European family.

[03] P.M. VIDENOV WILL PROPOSE TO PARLIAMENT CHANGES IN THE GOVERNMENT

The opposition demanded the resignation of Tsochev and Chichibaba over the grain crisis several times since the autumn of 1995. On January 9 this year Parliament voted down a motion of no confidence in the Government made by the parliamentary opposition. Last night Tsochev said on national television that he had already given in his resignation but postponed its announcement until the day after the vote on the no confidence motion.

"The two ministers' motives for resignation are based on their own assessment of their performance in 1995," Videnov said. According to him, Tsochev and Chichibaba established they did not receive the necessary understanding, assistance and confidence in their work even from the ruling Democratic Left coalition (it includes the Bulgarian Socialist Party, the Alexander Stamboliiski Agrarian National Union and the Eco-Glasnost Political Club).

"The act of Minister Tsochev and Minister Chichibaba is an expression of a responsible attitude to the policy of the Democratic left and of a desire to create the best possible conditions for its future successful implementation by the Government," Videnov said stating his personal position on the two ministers' resignation.

"I think that the two ministers spared no effort, working in two extremely difficult areas of responsibility," the Prime Minister said. "Encountering unnecessary, unfair and harmful obstacles on their way, they overcame most of them honourably and with dignity," Videnov stated. "They made some mistakes as all the members of the Cabinet and I personally did, but I agree with the assessment they make of their performance," the leader of the Bulgarian Government said.

"Tsochev's and Chichibaba's position is personal, civic, political and statesmanlike to a great extent," the Prime Minister said when asked if certain BSP circles had not put pressure on them to resign. In his opinion, the two ministers' position should be respected without subjecting the motives for their act to overscrupulous, indelicate and rude exploration. "I and my colleagues regard ministers Tsochev and Chichibaba with great respect," the Prime Minister stressed. "I hope that the National Assembly will take the vote on their replacements the soonest possible," he said.

"The Government guarantees that in the two or three weeks the replacement of the ministers would take its members will take measures for the smooth functioning of foreign trade, agriculture and food processing," Videnov said. "In my capacity as Prime Minister I assume a personal commitment to this effect for the other areas of Tsochev's responsibility - the energy sector, arms trade and price control," he stated. "The Government will make maximum use of the confidence which was voted in it de facto and will replace the two ministers in a dignified, responsible and useful for Bulgaria way," the Prime Minister told the participants in the news conference.

Videnov said that the Democratic Left would hold political consultations and would make a political decision before announcing the nomination for the vacancies. "However, the line-up of the Cabinet and the proposing of new nominations are a prerogative of the Prime Minister," he said. "There is no reason why the new ministers should not combine the qualities of experts and political figures as Tsochev and Chichibaba did to a large extent," Videnov said.

"As far as I know, the Orion grouping is non-existent in economic and legal terms. This is a circle of friends," the Prime Minister said invited to comment on press publications linking some economic groups to members of his Cabinet. Videnov expressed his assurance that the public servants belonging to this circle complied with all legal requirements and that their economic functions are not incompatible with the ones they perform as statesmen. "I deny any links and reject any insinuations linking the Government of the Democratic Left to Orion, Tron, Multigroup or any other grouping," the Prime Minister emphasized.

"I am sure that the granting of exclusive rights in the area of the Bulgarian telecommunications for a mere song will be put an end to forever. The Concessions Act and the powers it vests in the Government make it possible to do it and the Cabinet will exercise those powers," Prime Minister Videnov said in reply to a question about the financial results and the future of telecommunications.

The Prime Minister promised to make a detailed analysis of the performance of the Government in the past year in February or March and to submit it to the leaders of the parties in the Democratic Left coalition.

[04] TOP ENERGY GENERAL MEETING AMENDS STATUTES, APPOINTS NEW MEMBERES

The partnership was found in May 1995 by Gasprom of Russia and the Bulgargas Bulgarian state-run company. Its line of business includes delivery of natural gas to Bulgaria and transiting it to third countries via Bulgarian territory, as well as upgrading and expansion of the operating gas pipeline network in this country.

In November the co-founders decided to increase the partnership's capital from 60 to 120 million leva. As a result of this Multigroup and Overgas Inc. acquired 8.25% of the new share issue, Bulbank and First Private Bank 3.2% and Chimimport 2%. Bulgargas kept its controlling interest of 25.1%. The share of the Russian partners remained unchanged at 50%.

The amendments to the partnership's statutes approved yesterday envisage that two-thirds of shareholders will take decisions for increasing the partnership's capital, and three-fourths for liquidation, BTA was told by Vladimir Zheglov, advisor to Prime Minister Zhan Videnov. Representative of the new shareholders in the Topenergy Supervisory Board will be Nikolai Vulkanov who is in charge of the investment policy of Multigroup Bulgaria Holding.

The next meeting of shareholders is due some time in March in Moscow.

[05] TRIPARTITE COOPERATION IN BULGARIA JEOPARDIZED AGAIN

During Lyuben Berov's cabinet tenure CITUB and the other influential trade union, the Podkrepa Labour Confederation, left the Council in protest of the government social policy. The operation of the Tripartite Council was restored in February 1995 after December 1995 parliamentary elections swept back into power the Bulgarian Socialist Party.

The new Cabinet admitted as member of the Tripartite Council the Community of Free Trade Union Organizations in Bulgaria although its legitimacy has been contested by CITUB and Podkrepa. In May 1995 CITUB and Podkrepa signed an agreement for joint actions.

The two trade unions' representatives walked out of the Council's previous meeting, last December, because the Government rejected amendments to the Labour Code and the National Budget Act proposed by them. These amendments provided increase of social expenses. The Community of Free Trade Union Organizations in Bulgaria disagreed partially with the stand of the Cabinet on some issues of minor importance.

In a TV dispute yesterday Minister of Social Affairs Mincho Korlaski said that the Socialist Government promised to reduce impoverishment two fold in 1995 and not to stop it. From 31 percent in 1994 it went down to 3 percent in 1995, he stated. Last year the average working wage in state-financed enterprises grew 5.74 percent and pensioners' real incomes, 8 percent, Koralski said. Ivan Neikov described Koralski's statements as "mockery" and "cynicism".

CITUB proposed that Cabinet takes into consideration the cost of living and not inflation as implementing its income policy. In turn Minister Korlaski described this as "circus" and "figures scam". Words as "percent" and "macroeconomic framework" mean nothing to the people who are "brought to microconsumption", Neikov said.

CITUB analysis put 1995 average annual inflation at 62.08 percent while the National Statistical Institute (NSI) figure was 62.9 pecent, reads a CITUB press release prompted by different versions provided by the media. According to CITUB figures, aggregated inflation in 1995 was 37.07 percent by December 1995 while NSI estimated it at 32.9 percent, redas the press release. CITUB estimated cost of living at 8,805.03 leva. NSI did not publish cost of living data.

The income policy of the Socialist Cabinet backs off from pre-election promises of the Socialist Party, Neikov stated. According to him, the Cabinet would not manage to limit 1996 inflation to the 20 percent set in the budget.

"The Cabinet abandoned civilized dialogue with trade unions. CITUB declared a cold war to the Government. The floodgates of social conflicts in the country have already burst inevitably," "Troud" writes quoting the CITUB Vice President. CITUB hopes to be supported by Podkrepa, he stated.

"I am surprised with the decision of CITUB," Podkrepa Vice President Dimiter Manolov said yesterday, "Troud" writes. Recently Podkrepa suggested to CITUB to do so but received a negative answer, Manolov recalled. The Podkrepa leadership will decide whether to withdraw from the Tripartite Council in the end of the month, "Troud" writes.

Meanwhile the Union of Bulgarian Teachers, affiliated to CITUB, abandoned its decision to call a national rally and warning strike. The main demand of the teachers is for higher wages. Today the teachers' trade unions signed an agreement to this effect with the Ministry of Education, Science and Technologies.

[06] UNESCO DEPARTMENT SET UP WITH SOFIA'S TECHNICAL UNIVERSITY

[07] CHINESE MILITARY ATTACHE IN SOFIA ATTACKED

[08] QUAKE IN SOUTHWESTERN BULGARIA

[09] P.M. VIDENOV SEES NO NEED FOR SHARP TURN IN GOVERNMENT POLICY

Interviewed by the Panorama weekly magazine programme of the National TV on Saturday evening, the Prime Minister said the people to take the vacant ministerial offices will be named these days. Minister of Trade and Foreign Economic Cooperation Kiril Tsochev and Agriculture Minister Vassil Chichibaba resigned last week immediately after the Socialist parliamentary majority defeated a vote of no-confidence in the government, introduced by the opposition over the grain crisis in this country. Asked on the basis of what principle the successors of the outgoing cabinet ministers will be named, Videnov said he will seek candidates with professional experience who enjoy public popularity and the political confidence of the left. Probably this Monday, Videnov is likely to make public his plans for the two vacant offices at a sitting of the Consultative Council of the three parties in the Democratic Left, a Socialists-led parliamentary coalition.

Commenting on the defeated vote of no-confidence in the government, Zhan Videnov said the cabinet stands slim chances to succeed without confidence and daily support. He said he will work harder to ensure party, public and parliamentary support for the work of the government.

As regards this country's foreign policy, Videnov said the time has come for Bulgaria to taste the fruit of its wise and far-sighted foreign policy. He voiced his conviction that combining traditional and new partners, and tolerance to everybody, will guarantee Bulgaria a deserving place in the new world of the 21st century.

Videnov said he will meet the commitments he has taken before Parliament. He said the cabinet will take measures to boost domestic grain production and make sure that the rise of bread prices does not outstrip inflation.

Asked about the tasks the cabinet has set itself for the coming days, the Prime Minister said that the appointments to the vacant ministerial offices come only fourth in the list of priorities. The first three are mass privatization, this year's harvest and the passage of the 1996 national budget in the coming weeks.

Commenting on Bulgarian mass media, Videnov said, "Bulgarian mass media today are in a deep crisis. I am concerned over this fact and the public, too, should be concerned." Videnov said some of this country's outstanding mass media commentators are actually working against the national interests. He would name nobody but said there are many examples. According to him, there are editors-in-chief who, being preoccupied with business, do not care at all about journalism.