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THOUSANDS TURN OUT FOR NATIONWIDE PROTEST
According to Interfax,
initial reports from the Interior Ministry suggest that more than
60,000 people turned out for public protests in the Far East on 7
October--a much smaller turnout than organizers had expected. In
Vladivostok only 3,000, rather than the expected 5,000 citizens,
participated, AP reported. ITAR-TASS estimated that turnout in
Novosibirsk was some 35,000 people. Nakhodka witnessed one of its
largest protest meetings the previous day when about 3,000
gathered in the city's main square. An RFE/RL correspondent in
Novosibirsk noted that the centerpiece of protesters demands was
the payment of back wages but that they also called for the
resignation of President Boris Yeltsin. An RFE/RL correspondent
in Irkutsk reported that cold weather thinned the ranks of
protesters in that Siberian city, with mostly pensioners and
Communist Party activists showing up. JAC
FINAL PROTEST COUNT TO BE DELAYED
A final count on the number of
participants in the Russia's day of national protest may not be
available for sometime. In some cities, union leaders' estimates
of the number people taking part in ongoing protests were twice
the amount estimated by local police. The pre-event estimates of
the "sponsors" of the protest action also varied widely. Mikhail
Shmakov, head of the Russian Federation of Independent Trade
Unions, predicted that 25 million would participate in marches,
and Communist Party leader Gennadii Zyuganov said he was counting
on 40 million. "Nezavisimaya gazeta" forecast a modest turnout
based on what many considered the event's "dress rehearsal," the
fifth anniversary of storming of the parliament on 3-4 October.
Both "Nezavisimaya gazeta" and "Kommersant-Daily" reported that
the early October event attracted no more than 5,000
participants. However, "Kommersant-Daily" suggested that
organizers usually underestimate the number of participants.
"Nezavisimaya gazeta" receives financial backing from Boris
Berezovskii's LogoVAZ group, while the sources of financing for
"Kommersant-Daily" are unknown. JAC
RUSSIA THREATENS TO USE UN SECURITY COUNCIL VETO
After NATO
postponed a decision on Kosova until 8 October, NTV on 6 October
suggested that Russia's tough stance against bombings may have
been the cause. Foreign Minister Igor Ivanov announced that
Russia will veto any effort proposed in the UN Security Council
to authorize NATO air strikes against Yugoslavia. Both Foreign
Ministry spokesman Vladimir Rakhmanin and Armed Forces Colonel
General Vladislav Putilin held news conferences in which they
stressed that peaceful ways of settling the Kosova conflict have
not been exhausted--especially since President Yeltsin's
telephone conversation with Yugoslav President Slobodan. After
their discussion, Milosevic agreed to allow an OSCE delegation
into Kosova (see "RFE/RL Newsline," 6 October 1998). JAC
KOSOVA OUTCOME TO DETERMINE RUSSIA'S STATUS?
Russian
policymakers, analysts, and the press are linking the outcome of
Russia's campaign against NATO air strikes in Yugoslavia with
both Russia's status as a world power and its talks with the IMF.
Our Home is Russia faction leader Aleksandr Shokhin declared that
if Russia's tough statements on NATO air strikes against
Yugoslavia are ignored, then it will be obvious that Russia is
losing its status as a great power. He told reporters on 6
October that he believes Kosova constitutes a "dramatic turning
point in defining Russia's role in the world." Georgii Arbatov,
honorary director of the Institute for U.S. and Canada Studies,
told Interfax that Russia should pressure Milosevic rather than
the West. He said "It is difficult to act as a great power when
you constantly beg for aid." Meanwhile, "Izvestiya" the same day
reported that after "having lost its last hope of obtaining IMF
monies", the Russian government issued uncharacteristically bold
statements against a possible NATO action. JAC
PRIMAKOV APPEALS TO POCKETBOOK, CUPBOARD
In his televised
address to the nation on 6 October, Prime Minister Yevgenii
Primakov promised Russian citizens not only that back wages and
pensions but fruits, vegetables, and potatoes during the cold
winter. He noted that his government has slashed tariffs on
transportation of fruits and vegetables and removed other
restrictions against movement of food on Russian territory. With
regard to remedying the nation's economy, he emphasized
restructuring the banking system, creating an effective tax
system, and breaking "the vicious circle of nonpayments" between
businesses and the budget as well as among businesses themselves.
Primakov also promised to continue with privatization but "not so
some individuals and groups can get rich." Primakov explained his
government's delay in presenting a finished economic program by
citing the program's dependence on negotiations currently being
conducted at home and abroad. JAC
TAX REFORM IN THE WORKS
In the same address, Primakov promised
that the government will submit proposals to improve the tax
system in the "nearest future." In the meantime, he reported
giving instructions to the state tax service to release equipment
from storage worth more than $1 billion that had been seized from
enterprises that did not pay their taxes. He justified the
action, saying the enterprises employ "human beings" and are
"about to yield solid profits to the state soon" once the
equipment has been reinstalled. JAC
RUSSIA PREPARED FOR FAILURE WITH IMF?
The Russian press is
characterizing Russian government talks with the IMF as
"circular" and likely to end in failure. "Vremya MN" on 6 October
reported that the IMF is demanding that the government complete
its economic program. However, "Russia claims it cannot complete
its program until it knows whether or not the West will give it
money." "Izvestiya" the same day said that although Zadornov has
threatened the West with the possibility of domestic unrest and
Russian default on loans owed to Western banks if money is not
forthcoming, "Russia's position remains bad." The newspaper
explained that "the fund has no money, since the US Congress has
not agreed to grant it an extra
KAZAKH PARLIAMENT APPROVES AMENDMENTS
A joint session of the
Kazakh parliament on 7 October passed amendments to the country's
constitution, RFE/RL correspondents in Astana reported. Under
those amendments, the term of deputies in the lower house would
be extended from four to five years and in the upper house from
five to six years. The president's term in office would be
increased from five to seven years, and parliamentary and
presidential elections would be held in January 1999, one year
ahead of schedule. BP
UN RESUMES FOOD PROGRAM IN TAJIKISTAN
Despite the fact that most
of the personnel of the UN mission to Tajikistan remain outside
that country's borders, the program to supply food to fighters of
the United Tajik Opposition resumed on 6 October, ITAR-TASS
reported. The UN mission is providing food and blankets to 10 UTO
centers in eastern Tajikistan at the request of the Tajik
government. The bulk of the UN mission will not return until an
investigation into the murders of four UN employees in late July
has been completed and the findings made public. BP
ARCHITECT FOR NEW KAZAKH CAPITAL CHOSEN
Kazakh President
Nursultan Nazarbayev on 6 October announced the winner of a
competition to design the new Kazakh capital, Astana, Interfax
reported. Japanese architect Kise Kurokawa was selected from the
27 competitors. Nazarbayev said the winning design reflects a
symbiosis of European and Asian cultures and of nature and man.
BP
KYRGYZ GOVERNMENT RELEASES INITIAL ESTIMATE OF ISSYK KUL DAMAGE
Deputy Prime Minister Boris Silayev has said that according to a
preliminary estimate, the damage caused by the sodium cyanide
spill earlier this year in the southern area of Issyk Kul totals
91 million som (about $4 million), Interfax reported on 7
October. In May, a truck belonging to the Kumtor gold mine
overturned into the Barskoon River, which flows into Issyk Kul,
spilling 1.7 tons of sodium cyanide into the water. Silayev, who
heads the government commission investigating the damage to the
area, said the estimate does not include agricultural losses. An
RFE/RL journalist who visited the village most affected by the
spill, Barskoon, found that while a medical center has been set
up there, residents have not received compensation for their
losses and humanitarian aid to the village amounted to one
notebook, one pen, and five pieces of candy per inhabitant. BP
ARMENIAN PARLIAMENT CONTINUES ATTACK ON GOVERNMENT
Opposition
deputies stepped up their attacks on the government's
privatization program during a special meeting of the parliament
on 6 October, RFE/RL's Armenian Service reported. Vano
Siradeghian, chairman of the former ruling Armenian Pan-National
Movement, said that President Robert Kocharian is intent on
replacing the current parliament with a rubber-stamp legislature.
He said that Kocharian may seek to dissolve the assembly before
the end of this year and call elections that are likely to be
manipulated by "people with money and levers." PG
ARMENIAN PRESIDENT WANTS ENHANCED RUSSIAN ROLE IN CAUCASUS
Kocharian said on 6 October that Yerevan will seek to expand
Moscow's role in the Caucasus, including in the transport of oil
and gas, ITAR-TASS reported. Kocharian also said that his
government highly values Russia's role in resolving conflicts
across the region. PG
ARMENIAN COMMUNISTS PLEDGE SOLIDARITY WITH RUSSIAN PROTEST
The
Armenian Communist Party issued an appeal on 6 October calling
for its supporters to take to the streets to express "solidarity"
with the mass protest action scheduled to take place in Russia
the next day, RFE/RL's Armenian Service reported. Sergey
Badalian, the party's leader, said that he expects "tens of
thousands" of supporters to march in central Yerevan, adding that
"there is a revolution going on in Russia." Badalian also said
that he and his supporters will demand the ouster of the "anti-
popular" Yerevan government and Armenia's inclusion in a "new
union" of former Soviet republics. PG
SHEVARDNADZE PRAISES OSCE ROLE IN CAUCASUS
Speaking to the OSCE
Parliamentary Assembly in Tbilisi on 6 October, President Eduard
Shevardnadze praised the role of the OSCE in seeking to settle
conflicts in the Caucasus region, Interfax reported. Shevardnadze
said that he is particularly pleased that the OSCE has become the
first international organization to "bravely and openly" declare
that Georgians were subject to ethnic cleansing in Abkhazia. And
he said that his government is prepared to help the OSCE find a
settlement to the Karabakh dispute between Armenia and
Azerbaijan. PG
GUAM GROUP TO COOPERATE TO OVERCOME WORLD CRISIS
Representatives
of the four GUAM countries--Ukrainian Premier Valery
Pustovoitenko, Moldovan Premier Ion Ciubuk, Georgian state
minister Bazha Lordkipanidze, and Azerbaijan presidential
economic adviser Vakhid Akhundov--issued a declaration in
Washington on 6 October that their governments will work together
to overcome the world economic crisis, Interfax reported. They
said that they will both coordinate their policies and seek to
promote transit across their region. PG
UKRAINE TO 'UNCONDITIONALLY SUPPORT' UN DECISION ON KOSOVA
Andriy Veselovskyy, an official in the Ukrainian Foreign
Ministry, told journalists on 6 October that Ukraine "will
unconditionally support" a possible decision of the UN Security
Council on the use of force against Yugoslavia, Ukrainian
Television reported. But he stressed that Ukraine is interested
in a peaceful solution of the Kosova crisis. The same day, the
Ukrainian Supreme Council adopted a resolution calling for the
issue of Kosova autonomy to be settled "in a peaceful, civilized
way, while maintaining the territorial integrity of the
[Yugoslav] state." ITAR-TASS reported that Rukh deputies did not
participate in the vote on the resolution, nor did part of the
Popular Democratic Party and the Greens parliamentary caucuses.
JM
KUCHMA WANTS TO BOOST ALCOHOL, TOBACCO INCOME
Ukrainian
President Leonid Kuchma ordered government officials on 6 October
to raise more money from the country's alcohol and tobacco
industries by cutting taxes and reducing smuggling, AP reported.
Kuchma criticized the government's increase in the excise tax on
alcohol, which had to be revoked last week because prices
increased so much that distilleries were unable to sell their
products. Kuchma also said the heavy taxes on tobacco and alcohol
have resulted in a huge black market for those goods, adding that
75 percent of cigarettes and 25 percent of alcoholic beverages
sold in Ukraine are either smuggled into the country or illegally
produced. JM
LUKASHENKA PLEDGES HELP TO YUGOSLAVIA IN KOSOVA CONFLICT...
Belarusian President said on 6 October that Belarus is even more
resolute than Russia in supporting Yugoslavia over its stance on
Kosova, Belarusian Television reported. "We will unconditionally
offer Yugoslavia any support and help our Slavic [brothers] might
need," he said. He also said his offer includes "military help,
except sending our boys outside Belarus's borders, because the
[Belarusian] Constitution forbids that. The Yugoslavs can count
on us, we will meet our obligations under our treaty on
friendship and mutual assistance." JM
...SAYS HIS LIFE 'HAS HUNG BY A THREAD'
One year after the
assassination of Yauhen Mikalutski, chairman of the State Control
Committee in Mahilyou and Lukashenka's friend, the Belarusian
president announced that the crime has been solved and the
perpetrators arrested. He commented to Belarusian Television on 6
October that the Mikalutski case had also involved him
personally: "It is probably too early to speak about it, but the
president's life, too, has hung by a thread." He noted that the
assassination "was prepared just several meters from here" and
pointed to the Drazdy compound, where the residences of evicted
Western ambassadors are located. And he added that during the
investigation. "several tons of weapons ranging from a
Kalashnikov rifle to hundreds of kilograms of TNT" were found.
Lukashenka pledged that details of the investigation will soon be
revealed to the public. JM
ANOTHER ESTONIAN BANK IN TROUBLE
The Central Bank on 6 October
announced that it has granted a request by the small ERA Bank to
suspend its license until 15 October, ETA reported. In that
appeal, the bank's management said that "considering the current
situation, where the confidence in Estonian financial
institutions is at a low, we may face temporary liquidity
problems in the near future." It also noted that while ERA Bank
is actively seeking a way out of its current difficulties, it
will be necessary for the Central Bank to intervene. ETA noted
that doubts about the solvency of ERA Bank emerged earlier this
week when it was reported that the bank had transferred its 36
percent ownership of the now defunct EVEA Bank (see "RFE/RL
Newsline," 5 October 1998) to four "shelf companies" registered
in Estonia in order to conceal losses totaling some 50 million
kroons (some $3.8 million).
RUSSIA QUALIFIES STAND ON LATVIAN REFERENDUM
One day after
hailing the results of the referendum in Latvia on amendments to
the country's citizenship laws (see "RFE/RL Newsline," the
Russian Foreign Ministry has qualified its response to that vote.
Ministry spokesman Vladimir Rakhmanin said on 6 October that
while Moscow "positively appraises" the referendum on the
citizenship law, it believes it is "too early to speak of radical
changes in the humanitarian situation" in Latvia, BNS reported,
citing Interfax. He added that "radical nationalists" in Latvia
continue to seek to tighten the citizenship and education laws
contrary to the opinion of the Council of Europe and the OSCE."
The Latvian Foreign Ministry responded by saying this latest
comment displays a "lack of understanding of the situation in
Latvia" and is "clearly inconsistent" with the evaluations of
other countries and international organizations. JC
LITHUANIAN PARLIAMENT NOT TO IMPEACH IMPRISONED DEPUTY
The
Conservative parliamentary group on 6 October voted by 58 with
four abstentions to reject the impeachment of lawmaker Audrius
Butkevicius, who is jail awaiting trial on charges of attempted
large-scale fraud, BNS reported. Deputies from the Center Union
and leftist opposition parties, which had proposed launching
impeachment proceedings, were absent during the vote. The
Conservatives suggested that Butkevicius should give up his
parliamentary mandate, adding that the parliament expressed its
will one year ago when it gave permission to prosecute the
lawmaker (see "RFE/RL Newsline," 30 September and 2 October
1998). JC
LUSTRATION LAW APPEALED IN CONSTITUTIONAL COURT
The Center,
Social Democratic, and Democratic Labor parliamentary groups have
appealed to the Constitutional Court over a law that would
prohibit former KGB staff from working as civil servants in
government and administration structures for 10 years, BNS
reported on 6 October. Earlier this year, President Valdas
Adamkus, refusing to sign the bill into law, returned the
legislation to the parliament for further debate and proposed
that it not go into effect until 1 January 1999-- a proposal that
the parliament approved. A presidential commission ruled last
week that the issue of restricting the employment of former KGB
staff must be decided by the courts. JC
POLISH PARTIES DISPLEASED WITH LOCAL ELECTION CAMPAIGN
BROADCASTS
The ruling Solidarity Electoral Action (AWS) on 5
October protested President Aleksander Kwasniewski's "covert
attempt" to win support for the opposition Democratic Left
Alliance (SLD) during his 4 October interview with Polish
Television, PAP reported. The AWS demands that Polish Television
grant Prime Minister Jerzy Buzek the same amount of prime air
time as Kwasniewski received. The next day, Poland's smaller
parties--the Polish Peasant Party, the Labor Union, and the
National Pensioners' Party--protested public radio's favoritism
toward the AWS and the SLD. Labor Union leader Marek Pol
commented that radio broadcasts are clearly aimed at confirming
the public view that "Poland is like a boxing ring in which only
two opponents, the AWS and the SLD, appear." JM
POLAND TO OBTAIN $4.6 MILLION FROM U.S. FOR PENSION REFORM
Poland will receive $4.6 million from the U.S. for a pension
reform that would make retirement payments dependent on employee
contributions to state or private funds, AP reported on 6
October. The money, supplied by the U.S. Agency for International
Development, will be spent on an information campaign, training,
and supervision of funds. U.S. Ambassador to Poland Daniel Fried
said Poland's pension reform is vital for completing the
country's transformation from communism to democracy and a market
economy. The new social security system in Poland will be
launched on 1 January 1999 (see "RFE/RL Newsline," 23 September
1998). JM
ASYLUM SEEKERS VIEW CZECH REPUBLIC AS TRANSIT TO WEST
Jiri
Kolar, the chief of the Czech police, said on 6 October that 95
percent of the refugees caught at the border with Slovakia are
heading for the West, CTK reported. Kolar said the refugees
request asylum in the Czech Republic but never go to refugee
camps. He said that all refugees will now be bused to camps and
that if they refuse to stay they will be taken back to Slovakia.
Police have captured some 26,000 illegal aliens this year, most
of them from Yugoslavia. PB
OPPOSITION CRITICIZES CZECH MINISTER'S HEALTH REFORM PLAN
Opposition politicians are criticizing the health reform plan of
Health Minister Ivan David as being too socialist, CTK reported
on 7 October. Miroslav Macek, deputy chairman of the Civic
Democratic Party, said David's plan was a "return to the
Communist system of the 1950s. It considers peoples' health to be
public property." The plan, called "Consolidation and Development
of Health Care in 1998-2005," would create a system of heavily
subsidized state-run facilities, whereas private health care
centers would be excluded from the health insurance system, the
daily "Lidove noviny" reported. Vaclav Krasa, deputy chairman of
the Freedom Union, said the plan would lead to a lack of foreign
medicine and long lines at doctor's offices as well as deprive
the patient of a choice of physicians. PB
SLOVAKIA'S SDL NO LONGER OPPOSES COALITION WITH ETHNIC
HUNGARIANS
Jozef Migas, chairman of the Party of the Democratic
Left (SDL), said on 6 October that he no longer opposes forming a
coalition that includes the Hungarian Coalition Party (SMK), AP
reported. Migas said "we want to form a government for four
years, and as soon as we can." Migas had voiced his disapproval
of including the SMK in the proposed four-party coalition (see
"RFE/RL Newsline," 5 October 1998). Observers say the SDL was
reluctant to add the SMK because of fears it would push for
regional autonomy or seek to have the Benes decrees invalidated.
Under those decrees, some 60,000 ethnic Hungarians were deported
from Czechoslovakia after 1945. Bela Bugar, the chairman of the
SMK, said his party did not want to bring up the Benes decrees
during coalition negotiations. PB
MECIAR NAMES DUBCEK, KRAMPLOVA TO FOREIGN POSTS
Slovak Prime
Minister Vladimir Meciar, using some of the rights accorded to
him in the absence of a president, has appointed Milan Dubcek and
former Foreign Minister Zdenka Kramplova as ambassadors. Dubcek,
the youngest son of former Czechoslovak Communist Party leader
Alexander Dubcek, was named ambassador to Greece. Kramplova was
named ambassador to Canada, a post that has been open for more
than a year. Kramplova said she would ignore a request from the
Slovak Democratic Coalition not to depart for Canada until a new
government is formed in Bratislava. "I was approved for this post
by a legitimate cabinet," she said. Meciar announced the same day
that the new parliament will convene on 29 October--the latest
possible date allowed under the constitution. PB
HUNGARIAN PRIME MINISTER IN WASHINGTON
On the second day of his
official visit to the U.S., Viktor Orban met with Attorney
General Janet Reno and FBI Director Louis Freeh, Hungarian media
reported on 6 October. Orban and Freeh signed an agreement on
joint action against organized crime. In other news, Klaus
Naumann, chairman of NATO's military committee, told journalists
in Budapest that the alliance is counting on the participation
only of present member states in the event of a military
operation against Yugoslavia. In meeting with Defense Minister
Janos Szabo, Naumann expressed his satisfaction with Hungary's
preparation for accession but said further development is needed
in the areas of English-language training and air defense
cooperation. MSZ
HUNGARY'S AGRICULTURE MINISTER REACHES COMPROMISE WITH FARMERS
Jozsef Torgyan and farmers' representatives announced on 6
October that an agreement has been reached in solving the ongoing
grain crisis, ending weeks of mutual accusations. The ministry
has promised farmers that it will extend deadlines for repaying
loans. In return, farmers have called off their planned
demonstrations, Hungarian media reported. MSZ
'GRIMMEST SITUATION' REGARDING KOSOVA
An unnamed senior U.S.
diplomat told Reuters in Belgrade on 7 October that U.S. envoy
Richard Holbrooke and other negotiators now face "the grimmest
situation we've faced in this region." The previous day,
Holbrooke discussed Kosova with ethnic Albanian leaders in
Prishtina and then met for the second time within 24 hours with
Yugoslav President Slobodan Milosevic (see "RFE/RL Newsline," 6
October 1998). In Washington, President Bill Clinton warned that
"the stakes [in Kosova] are high...[and] the time to end the
violence is now." He referred to the province as a "powder keg"
and added that the crisis there threatens to destabilize other
countries in the Balkans. PM
SECURITY COUNCIL TAKES NO ACTION ON KOSOVA
The UN Security
Council issued a non-binding statement on 6 October demanding
from Belgrade a "full and sustained compliance" with the
council's recent call for a complete withdrawal of Serbian forces
from the province. The highest UN body condemned the "tactics of
indiscriminate and disproportionate use of force against
civilians, as well as terrorist activities." It also called on
both sides to comply but did not specify what the UN would do if
they did not. The council urged the international community to
"intensify efforts to prevent a humanitarian disaster." PM
ARKAN PREPARES TO RESIST NATO
Zeljko "Arkan" Raznatovic said in
Jagodina on 6 October that he will reactivate his paramilitary
forces in the event of NATO attacks on Serbia, "Nasa Borba"
reported. "It is not important whom we have to face but the
sanctity of that which we are defending--and we are defending
sacred Serbian land.... We shall not kneel before NATO
missiles.... We shall not allow ourselves to become the slaves of
NATO or any other foreign power." In Prishtina, the Kosova
Liberation Army (UCK) issued a statement reaffirming its claim as
the sole representative of the Kosovars. The UCK stressed that
armed struggle is the only sure way to end the Serbian crackdown.
PM
ALBANIAN FOREIGN MINISTER URGES GROUND TROOPS FOR KOSOVA
Paskal
Milo told a press conference in Tirana on 6 October that NATO
should consider sending ground troops into Kosova if air strikes
fail to produce results. He added that "Albania supports air
strikes by NATO forces against Serbian military installations as
an effort to send a strong message to Milosevic to sit down at
the negotiating table." Milo stressed that "if we have a
continuing humanitarian problem, we would need [ground troops].
If we have an escalation of the conflict, then there should be a
military presence." Milo also said that Albania hopes for
improved cooperation with Kosovar leader Ibrahim Rugova. He added
that Rugova has repeatedly turned down invitations to visit
Tirana and discuss a coordinated foreign policy. FS
MONTENEGRO ASKS NATO TO RECONSIDER
The Montenegrin parliament
passed a resolution on 6 October calling upon NATO to rethink
plans for air strikes against Serbia, an RFE/RL correspondent
reported from Podgorica. The legislators said that such attacks
would only kill innocent victims and play into Milosevic's hands
by giving him an excuse to crack down upon his domestic enemies
(see "RFE/RL Newsline," 6 October 1998). PM
SESELJ THREATENS REBROADCASTERS
Serbian Deputy Prime Minister
Vojislav Seselj told independent Radio B-92 on 6 October that the
government may soon take tough measures against Serbian radio and
television stations rebroadcasting the programs of Western
stations "that carry out hostile espionage propaganda against our
country." He suggested that the authorities could close, seize
the equipment of, or start legal proceedings against the
offending Serbian stations. Seselj added: "I guarantee you
personally that you will not [re]broadcast [the programs of]
Radio Free Europe," the Belgrade independent daily "Danas"
reported. Seselj and Serbian Information Minister Aleksandar
Vucic have recently threatened legal measures against those who
rebroadcast the programs of RFE/RL, VOA, the BBC, Deutsche Welle,
or Radio France International (see "RFE/RL Newsline," 30
September and 6 October 1998). PM
MONTENEGRO SAYS LAW BACKS JOURNALISTS
The Republican Secretariat
for Information issued a statement in Podgorica on 6 October that
took issue with the "extremely crude" charges made by Vucic
against the media. It stressed that Serbian officials have no
right to criticize the media in Montenegro. The secretariat said
that it has no evidence of any wrongdoing by domestic or foreign
journalists or media working on Montenegrin territory. It
stressed that the law guarantees the domestic and foreign media's
right to conduct their professional activities peacefully and
unhindered. The secretariat added that it is "extremely concerned
about the...brutal attacks...against those stations that
rebroadcast foreign news programs" or exercise their right to
present their own point of view. PM
WESTENDORP SAYS SESELJ 'NOT ACCEPTABLE'
The international
community's Carlos Westendorp wrote Milosevic on 5 October that
he expects the Yugoslav leader to "keep Seselj out of Bosnian
politics." Westendorp described as "unwelcome" Seselj's recent
calls on Bosnian Serb leaders to form an "all-Serb government"
without Muslim or Croatian participation as well as his implicit
threats to take SFOR peacekeepers hostage in the event of NATO
air strikes against Serbia. Westendorp added that Seselj's
"presence in the Republika Srpska would be interpreted as an
unfriendly act aimed at disrupting the peace process...[and] I
would have to consider taking direct action" against the Bosnian
Serb branch of Seselj's Serbian Radical Party in reply. Also in
Sarajevo, a spokesman for SFOR said that the peacekeepers "will
not tolerate" any interference with their work in response to
international military intervention in Kosova, RFE/RL's South
Slavic Service reported. PM
MILITARY EQUIPMENT FOR MACEDONIA
Representatives of the 10,000-
strong Macedonian army on 6 October formally took possession of
60 armored personnel carriers supplied by Germany. The vehicles
are BTR-70s that belonged to the former East German army and are
accompanied by 35 tons of spare parts. The army will distribute
the APCs to barracks in major towns throughout the country, AP
reported. PM
FRIENDS OF ALBANIA SET PRIORITIES
The Friends of Albania, a new
OSCE-sponsored group made up of representatives from
international organizations and embassies, held their first
meeting in Tirana on 6 October (see "RFE/RL Newsline," 1 October
1998). The group seeks to increase coordination between
international organizations and help the Albanian government in
its efforts to stabilize the political and economic situation.
The group agreed that its main goals are: improving the country's
security situation, fighting corruption, drafting a new
constitution, assisting refugees from Kosova, promoting economic
development, and encouraging professionalism in the media.
Elsewhere, Prime Minister Pandeli Majko discussed measures aimed
at fighting corruption at a meeting with the prosecutor-general,
the secret service chief, the head of the anti-corruption agency,
the justice minister, and the head of the parliament's legal
commission. FS
ROMANIAN PRIME MINISTER URGES REFORMS
Radu Vasile said on 6
October that the Romanian government must swiftly carry out long-
delayed reforms or face the danger of becoming a "bad debtor,"
Reuters reported. Vasile, commenting in Bucharest upon arriving
from the IMF-World Bank meeting in Washington, said Romania is
entering "the 11th hour." In a report released by the executive
directors of the IMF the same day, the fund warned Romania that
its current fiscal and monetary policies are "unsustainable." It
said Bucharest must bring the state budget under control and that
the pace of privatization and collection of taxes needs to be
increased. The report praised Romania's liberalization of the
foreign exchange market and the government's focus on controlling
inflation. Vasile added that the proposed deal with Bell
Helicopters is "not feasible" in the near future. PB
RADIOACTIVE MUSHROOMS FOUND IN ROMANIA, BULGARIA
Bulgarian
officials said on 6 October that they have discovered mushrooms
tainted with radioactive cesium 137 in the southern part of the
country, AFP reported. An official said the radioactive levels
recorded are the highest since the Chornobyl nuclear accident in
1986 and twice as high as generally accepted levels. Romanian
officials said last week that they exported contaminated
mushrooms to several EU countries but that the levels were not
high enough to threaten public health. PB
BULGARIA LOOKS AT COSTS OF CLOSING DOWN NUCLEAR REACTORS
Ivan
Shilyashki, the chairman of Bulgaria's Power Generation
Commission, said on 5 October that it will cost some $100 million
to decommission the two largest reactors at the Kozloduy nuclear
power plant, BTA reported. Shilyashki's committee is charged with
formulating the country's national strategy on nuclear power for
the next 30-50 years. The European Union has made repeated calls
for Bulgaria to close down Kozloduy, which the EU deems unsafe.
Shilyashki said Bulgaria will continue to transport spent nuclear
fuel rods to Russia. He added that it is 25-30 percent cheaper to
send the rods there than to Western Europe. PB
RUSSIAN CRISIS HITS UKRAINIAN FIRMS
by Stefan Korshak
Ukraine's Motor-Sych appeared to have it all: direct
government support, an expanding Russian customer base, cheap
labor and materials, as well as a weak national currency to
exploit those advantages even further.
Then the Russian financial crisis set in, sending the ruble
into freefall. Motor Sych's customer base of large Russian
aerospace companies dried up almost immediately. The few
customers that remained operational could pay only in rubles.
Moreover, a number of Russian suppliers of key components shut
down their production lines.
Motor Sych, Ukraine's largest engine maker, is among a host
of companies paying for Ukraine's inability--or unwillingness--to
loosen the economic bond with Russia.
The recent price of maintaining such close ties has been
steep. Falling exports to Russia have crippled key industries
such as metallurgy and machine building. And it has forced the
government to devalue the hryvna.
Through August, Russia had accounted for almost half (44.3
percent) of Ukraine's general trade turnover in 1998. Most
exports (55 percent) to Russia were products of the former Soviet
military-industrial complex: for example, metallurgical products
(15 percent), heavy machinery (14 percent), and chemicals (10
percent).
In July, Russia slapped a 3 percent import duty on Ukrainian
industrial and agricultural commodities. Then the crisis hit.
The hryvna's downslide, rooted in Ukraine's long-standing
foreign currency crunch, might also have been prompted by a
calculated effort by the government to make exports competitive.
Paul Gregory, head of the research section at Alfa Capital
Kyiv, told RFE/RL that "one way for the Ukrainian government to
increase income is to increase the volume of its exports." He
said "one means of doing that is worsening the hryvna's exchange
rate against other currencies, so Ukrainian products become
cheaper."
But Gregory also said that even if the Ukrainian exchange
rate winds up lower relative to the ruble than it was before the
crisis, it will not affect trade statistics until some time next
year.
The Donetsk Iron and Steel Works (DISW), one of Ukraine's
metal exporters, was another company hit first by the Russian
excise duty and then by the fall of the ruble.
Olexsander Pilipenko, DISW's vice president, told RFE/RL
that his company is not currently receiving many new orders from
Russia. He said the main reason is that Russian companies are
short of funds.
A partly privatized mill and a leader in the Ukrainian steel
industry, DISW was in the process of expanding and modernizing
its product line when the Russian crisis hit. The crisis put a
damper on that process.
Pilipenko said that as of the beginning of September, many
Russian firms stopped sending payments to his company. He said
Russian companies buy only 10 percent of his firm's products,
adding that "non-payment by any customer is by no means good
news."
With some 80 percent of its products traditionally labeled
for Russia, Motor Sych is worse off. Vladislav Matvienko of Motor
Sych's import-export division said its "Russian customers are
experiencing certain problems in settling contracts agreed with
earlier." He said Russian firms "are still paying, but sometimes
with a delay." And when they pay, he added, they do it often in
rubles, which only adds to Motor-Sych's problems.
Matvienko added that "like many other companies," his is
having trouble exchanging rubles paid by Russian firms. He noted
that his company sometimes has to exchange into a third currency-
-a so-called multi-stage currency exchange --in order to get the
currency it needs to make its own payments.
The Ukrainian government has curtailed sales of dollars and
the conversion of rubles on Ukrainian exchanges, making the
Russian currency essentially worthless. There are no clear
prospects of a change in that situation any time soon.
The author is a Kyiv-based RFE/RL correspondent.
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