News from Bulgaria / Feb 29, 96

From: [email protected] (Embassy of Bulgaria)

Bulgarian Telegraph Agency Directory

EMBASSY OF THE REPUBLIC OF BULGARIA - WASHINGTON D.C.

BTA - BULGARIAN TELEGRAPH AGENCY

29 February, 1996

CONTENTS

[01] FOREIGN MINISTER PIRINSKI BACK FROM BRUSSELS

Sofia, February 28 (BTA) - On his return from Brussels, Foreign Minister Georgi Pirinski praised highly Tuesday's meeting there of foreign ministers of the EU and the associated countries.

The participants discussed the Intergovernmental Conference in late March, structured dialogue, and the situation in former Yugoslavia.

Speaking about the IGC, Pirinski underlined that the participants in the Brussels meeting said the associated countries could put forward proposals on the major aspects of institutional reform. Answering a question, he said a visit to Sofia by Foreign Minister Agnelli of Italy, the current EU president, was not forthcoming in the immediate future. "The IGC is essential for the architecture of the European Union at the turn of the century," Pirinski said. In his view, there is strong interest in the conference.

Pirinski said there is a clear programme for structured dialogue. "Italy in its capacity as EU president wants to give in advance a schedule of the forthcoming meetings of different ministers. What I find interesting and important is that on our proposal it was decided on a working level on Tuesday that the visa issue should be put on the agenda of the March 20 meeting of ministers of the interior and justice," Pirinski said.

Answering a question, Pirinski said the Bulgarian initiatives for regional stabilization were met with considerable interest and with willingness to specify the proposals at future meetings. He stressed that possible ways to achieve lasting stability in the region are among the EU's priorities. This explains the interest in Bulgaria's proposals, he said.

Commenting on information that Bulgaria, the Czech Republic and Poland refused to enforce the arms embargo against the former Yugoslavia, Pirinski called it imprecise. "There has been no such refusal. The interpretation is wrong," he said.

[02] DEPUTY PRIME MINISTER GECHEV RETURNS FROM VIENNA

"The Austrian Government decided to open a credit line for Bulgaria and provide 50 percent guarantees for Austrian exporters," Gechev told reporters waiting for him at the Sofia airport. In his opinion, this is good news. "Now we can rely on the export of capital goods from Austria to Bulgaria," Gechev said. In his view, this will enhance trade between the two countries which amounts to only 150 million dollars now.

The Bulgarian delegation comprised deputy ministers, Privatization Agency Executive Director Vesselin Blagoev, Foreign Investment Agency President Daniela Bobeva and National Bank of Bulgaria experts.

"Troud" writes in a publication that an Austrian company is interested in the privatization of the cement plant at the western Bulgarian town of Beli Izvor. Businessmen show interest in purchasing certain assembly lines from the Microprosessor Systems plant in Pravets, Northwestern Bulgaria.

One hundred and sixty Austrian companies do business in Bulgaria.

[03] BULGARIAN DEPUTY P.M. KONAKCHIEV IN MOSCOW

Moscow, February 28 (BTA) - Bulgarian Deputy Prime Minister and Minister of Construction Doncho Konakchiev met First Deputy Prime Minister Vladimir Kadannikov in Moscow today. They discussed the progress of reforms and topical social and economic problems in Bulgaria and the Russian Federation. The two underscored the significance of the social price of transition, the press office of the Bulgarian government said today.

Deputy Prime Minister Konakchiev arrived in Moscow yesterday heading the Bulgarian delegation to a session of the mixed committee on economic, scientific and technical cooperation.

The sides discussed major issues pertaining to the economic, scientific and technical cooperation. They considered opportunities for setting up joint ventures and reviewed the composition of the commercial exchange, taxation and customs conditions, and the settlement of reciprocal liabilities. Particular attention was paid to the bilateral cooperation in the timber industry and the opportunity for signing new agreements. The winding up of the Bulgarian timber enterprise in Komi was also on the agenda, reads the cabinet's press release.

Konakchiev today also met Russian Minister of Fuel and Energy Yury Shafranik. The two discussed the link-up of the Russian and Bulgarian power grids with that of Europe, and coal supplies to Bulgaria. They also mapped out the steps that have yet to be taken with the view to the above tasks. The oil consumption in Bulgaria and the construction of major systems for transportation of oil to the Balkans and the Eastern Mediterranean were also on the agenda of the talks. The sides agreed on the need for measures to speed up the implementation of oil industry projects. They exchanged information on possibilities for cooperation in the building of large energy facilities in third countries.

Konakchiev met with Construction Minister Efim Basim to discuss contacts between the two ministries in the field of construction and building materials. They agreed that the two ministries will help each other in setting up joint ventures in construction and will exchange information on a regular basis.

The fourth session of the Bulgarian-Russian intergovernmental committee for cooperation in trade, economics, science and technology continued here today with meetings of ten expert groups.

At the same time business meetings are being held with partners in areas such as transport and effective civil defence for mitigation of the aftereffects of natural disasters and industrial accidents. The expert groups will continue their work on Thursday.

[04] BULGARIA, ROMANIA SIGN HEALTH AGREEMENT

Upon her return, Vitkova told BTA in Rousse on the Danube the accord regulates health services for Bulgarian nationals in Romania and Romanian nationals in Bulgaria.

The agreement contains provisions on medical education, applied medicine, exchange of specialists and cooperation in health reform.

[05] BULGARIAN DEFENCE MINISTER'S VISIT TO U.S.A.

During the visit Defence Minister Pavlov met with senior officials of the US Defence Department and representatives of the US armed forces, as well as with military and civilian officials of other countries attending the ceremony, a Defence Ministry press release says.

Minister Pavlov had a meeting with US Secretary of Defence William Perry. The sides considered the situation in the Balkans, Bulgarian-US military relations, Bulgaria's participation in Partnership for Peace plan, the activities of IFOR and the implementation of the Dayton accords about Bosnia, as well as the ways and forms of Bulgaria's participation in the implementation of the peace accords. A similar range of problems were discussed at Pavlov's meeting with William Montgomery, former ambassador to Bulgaria and currently principal deputy to R.Gallucci, special adviser to the US President and the US Secretary of State on matters concerning the implementation of the Bosnia peace accords.

After the collapse of totalitarianism in Bulgaria in 1989 and especially after the disintegration of the Warsaw Pact organization, the Bulgarian Defence Ministry started active contacts with the defence ministries of a number of western countries, including the United States. Military cooperation with the US has been particularly activated after the start of NATO's Partnership for Peace initiative, which Bulgarian joined at the beginning of 1994.

A Bulgarian-US Bilateral Working Group on Defence Matters began to operate in Bulgaria in 1993. In 1994 and 1995 it had two meetings, discussing a wide range of problems of mutual interest concerning Balkan security and bilateral cooperation.

In 1994 Valentin Alexandrov, then Bulgarian defence minister, and US Defence secretary William Perry signed a Memorandum of Cooperation on Defence and Military Relations in Sofia. In the same year incumbent Defence Minister Dimiter Pavlov, then deputy to Alexandrov, visited Washington.

The memorandum provides for enhancement opf cooperation within the framwork of the Partnership for Peace plan, assistance in the area of military legislation, exchange of visits by defence officials and high-level meetings, training of military personnel on reciprocal, port calls by warship. Reciprocal visits by military delegations of different types of armed forces and the exercises held jointly by Bulgarian and US units within the framework of Partnership for Peace have become more frequent of late.

[06] PRIVATE BUSINESS TO WIDEN ECONOMIC CONTACTS WITH SOUTH AFRICA

Sofia, February 28 (Vanya Ivanova of BTA) - A Bulgarian-South African Chamber of Commerce and Industry was inaugurated here today. It was registered on September 18, 1995, but is open to applications for membership from today, the Chamber's President Louka Dokov told the press. The Chamber is open to all companies willing to do business in South Africa.

The initiative to establish this private trade organization came from a group of Bulgarian businessmen in insurance, tourism, trade and air transport. The Chamber aims to step up economic contacts with South Africa. Its founders include Dimiter Stefanov, Chairman of the Privatization Agency's Supervisory Board, and Valentin Stoev, MP of the Bulgarian Business Bloc and Chairman of the parliamentary Bulgaria-South Africa friendship group.

A Bulgarian parliamentary delegation is preparing to visit South Africa in April, Stoev said. It will be accompanied by businessmen of the newly-established Chamber of Commerce and Industry.

A Bulgarian business delegation led by Bozhidar Bozhinov, President of the Bulgarian Chamber of Commerce and Industry, including Deputy Trade Minister Ivan Belchev, visited South Africa last November. On his return Bozhinov said that 22 Bulgarian companies represented in the delegation signed contracts for trade in products of mechanical and electronic engineering, metallurgy and the food industry. Under these agreements, Bulgaria will be exporting to South Africa general-purpose machines, lathes, cranes and diesel engines.

November 1995 saw the completion of a bridge across the Limpopo River connecting Zimbabwe and South Africa. The bridge was designed by Bulgarian experts and built by the Bulgarian Construction Corps. The metal construction for the bridge, too, was produced in Kremikovtsi, near Sofia, and Bourgas, on the Black Sea.

"From my contacts with Gen. Radoslav Peshleevski, Chief of the General Administration of the Construction Corps, I learned an agreement was reached that Bulgarian companies participate in the implementation of the social policy of President Nelson Mandela," Dokov said. He believes that the newly-established Chamber of Commerce and Industry has a major role to play precisely in the naming of companies to launch constructions in the health care and social sector in South Africa. Contacts have been established with 40 South African companies and associations, with specific agreements expected after Bulgarian contractors file their offers for cooperation at the Bulgarian-South African Chamber of Commerce and Industry.

[07] BUSINESS PRESS

Sunny Beach Inc. (the company which manages the Black Sea resort of Sunny Beach) will sign contracts with lessees for the 1996 summer season by mid-March, "Standart News" writes referring to the resort's Board of Directors Chairman Rali Apostolov. The management will renew the contracts with 80 percent of their partners. In 1995 the lease premiums fluctuated between 60,000 and 2 million leva, depending on the size and location of the facilities, the paper recalls. This year 65 restaurants, bars and retail establishments will be leased. The 108 hotels of the company with the exception of four or five will remain under the control of the company. "Standart News" writes that 1996 is expected to bring more profits to Sunny Beach Inc. than the previous year.

The Solidous Steel Works in Pernik (Western Bulgaria) signed a 50,000 US dollars' worth contract with Canada for the delivery of castings, "Troud" writes. The consignments will be dispatched in early April. The company is expected to sign contracts for larger amounts of castings with German and Italian companies. Solidous sales its products at dumping prices due to the low production cost of the steel, the paper says.

[08] REM VYAHIREV DEPARTS FROM BULGARIA

Vyahirev visited Bulgaria to discuss the Topenergy business plan. Yesterday, the Russian guest met with Prime Minister Zhan Videnov. According to Vyahirev, participants in the meeting reached an agreement on the establishment of a Balkan centre for the management of gas distribution. The sides agreed to grant concessions to Topenergy on the transport and transit of natural gas to third countries and to extend the gas-transporting systems, says a press- release issued by the Cabinet's press office.

Gazprom confirmed its commitment to increase the supply of gas to Bulgaria and the amount of gas transported through this country, the press-release says. The agreement envisages the supply of 8,000 million cu m of gas to Bulgaria and the transit of another 18,000 million cu m until 2010, with the possibility of increasing the volume to 20-30,000 million cu m, Vyahirev said at a news conference.

Representatives of the Bulgarian Government did not take part in the news conference due to a change of its venue, the Cabinet's press office said. According to Nikolov, the news conference should have taken place at the Boyana state residence but due to a last-minute change of the venue, the event occurred at the Topenergy headquarters.

The parliamentary group of the opposition Union of Democratic Forces (UDF) issued a declaration protesting against the arrival and departure of Rem Vyahirev through the VIP service at Sofia Airport. The declaration says that the presence of cabinet officials and MPs at the airport diminishes the status of the Bulgarian state institutions and turns them into servicing staff to foreigners who do not hold a high state or diplomatic post. According to UDF, President Zhelyu Zhelev kept silent on the issue while the Cabinet's behaviour can be described as "bowing to a foreign country" which inflicts damage on the Bulgarian statehood and tradition. Only representatives of countries with goodwill intentions and desire for cooperation should use the Bulgaria's official entrance, the UDF's declaration says. Later today, Chief of the National Bodyguard Service General Dimiter Vladimirov said that Vyahirev is a member of the Russian federal government.

"The Council of Ministers certified in a letter that Rem Vyahirev is a member of the Cabinet of the Russian Federation. Under the rules of procedure of the National Bodyguard Service, it must provide the security of a person with such a position," reads Vladimirov's statement on the UDF's declaration received at BTA. "I declare that the National Bodyguard Service is not and cannot be used to serve political purposes or any ad hoc decisions," Vladimirov says in his statement.