No. 6, 10 January 1992

SUCCESSOR STATES TO USSR

DEFENSE COMMUNICATIONS BETWEEN MOSCOW AND KIEV CUT? Officials
of the CIS military command are saying that Kiev has now severed
crucial communication links between commanders in Moscow and
Ukraine, forcing them to communicate by telephone, according
to Western news agencies. On January 10, The Chicago Tribune,
quoting General Vladimir Nikaronov and Nezavisimaya gazeta, reported
that the alleged Ukrainian move has also affected control over
battlefield nuclear weapons. (Kathy Mihalisko)

YELTSIN HARDENS STANCE ON FLEET. Despite earlier assurances that
ownership of the Black Sea Fleet might be shared between Russia
and Ukraine, recent controversies appear to be pushing Russian
President Boris Yeltsin to the right. On January 8, according
to The Guardian of the next day, Yeltsin declared that the fleet
was "indivisible," could not belong to any single republic, and
has to remain under allied command. On January 9, Yeltsin hardened
his stance further, according to TASS that day. He told a crowd
in Ulyanovsk that "no one, not even [Ukrainian President Leonid]
Kravchuk, will take the Black Sea Fleet away from Russia," and
insisted that the Fleet "was, is, and will be Russia's." (Stephen
Foye)

KRAVCHUK CRITICIZES SHAPOSHNIKOV. Speaking to some 300 senior
military officers in Kiev on January 9, Kravchuk characterized
the policies of CIS Commander in Chief Evgenii Shaposhnikov as
backward and said that they were provoking confrontation between
commonwealth members. According to Interfax and Western news
agencies, Kravchuk said that he regretted having supported the
naming of Shaposhnikov as CIS commander. He also criticized CIS
media for what he called distorted reporting of Ukrainian military
policies. (Stephen Foye)

SOBCHAK ATTACKS UKRAINE. St. Petersburg Mayor Anatolii Sobchak
has accused Ukraine of exploiting the idea of a commonwealth
merely to acquire its own army. He told Russian TV on January
8 that a Ukrainian army represents a "landmine under the future
of all mankind" because, if created, Ukraine would "certainly
use" its army. He said that Ukraine "must not be permitted" to
create an army. He stressed that the CIS has reached a dead end
and that the former USSR republics are in danger of falling prey
to totalitarianism. Sobchak said he disapproves of non-Ukrainian
soldiers inducted into the Soviet Army swearing allegiance to
Ukraine. (Alexander Rahr)

COMMENTS BY UKRAINE'S UN AMBASSADOR. Speaking on January 9 to
the US Commission on Security and Cooperation in Europe, Henadii
Udovenko, Ukraine's ambassador to the UN, was quoted by RFE/RL's
correspondent in Washington as saying that Ukraine is willing
to share control of the nuclear component of the Black Sea Fleet
until July. He said by that time all strategic weapons should
be removed and that Ukraine will then take control of the fleet.
There has been no clarification of the discrepancy between Udovenko's
remarks and comments by other Ukrainian officials to the effect
that the Black Sea Fleet is not a strategic force. (Sonia Winter
and Kathy Mihalisko)

BAKER, KOZYREV DISCUSS NUCLEAR CONTROLS. Russian Foreign Minister
Andrei Kozyrev and US Secretary of State James Baker spoke by
telephone on January 9 about the forthcoming visit of a rmsbecher,
a leader of the moderate Union of Germans of the USSR, told a
press conference in Moscow on January 9 that Yeltsin's statement
in Saratov oblast on future Soviet Germany autonomy (see Daily
Report, January 9) was against the interests of Soviet Germans
and ran counter to undertakings to recreate Soviet German autonomy,
TASS reported January 9. A German government spokesman, on the
other hand, said Yeltsin's latest statement did not conflict
with earlier undertakings to restore German autonomy in stages,
TASS reported January 9. (Ann Sheehy)

GEORGIA UPDATE. Some 500 people attended the funeral in Tbilisi
on January 9 of a man shot dead at a pro-Gamsakhurdia demonstration
on January 3, Western news agencies reported on January 9. TASS
quoted Military Council co-chairman Tengiz Kitovani US nuclear
experts' team to the four nuclear CIS states. RFE/RL's Washington
bureau reported that day that Undersecretary of State Reginald
Bartholomew will head the delegation, which will visit Russia,
Ukraine, Belarus, and Kazakhstan for talks on nuclear safety.
According to State Department spokeswoman Margaret Tutwiler,
the US is particularly interested in discussing export controls
to block nuclear proliferation and dismantling and disabling
nuclear weapons. (Sonia Winter and Sallie Wise Chaballier)

RUSSIAN NUCLEAR EXPERTS RECEIVE OFFERS FROM LIBYA. Libya has
made several proposals to Soviet nuclear specialists to work
for it and offered salaries in the range of $2,000 per month,
according to Vyacheslav Rozanov of the Kurchatov Institute of
Atomic Energy, quoted by Western news agencies on January 8.
Rozanov revealed that 5,000 teams of scientists in Moscow alone
are capable of producing nuclear weapons. Nuclear energy specialists
have few opportunities in the CIS because of cutbacks in defense
spending and construction of atomic reactors and may consider
Libya's or other country's offers in the future, Rogozhin said.
(Alexander Rahr)

CHEMICAL WEAPONS UNDER RUSSIAN CONTROL. A Russian arms control
official has stated that all chemical weapons that belonged to
the Soviet Union were entirely under Russian control, and are
expected to remain so. As quoted by Western agencies, Sergei
Batsanov-the former chief Soviet delegate to the UN chemical
weapons talks-added that the factories capable of producing chemical
weapons and the weapons themselves were all located within Russia.
(Doug Clarke)

CIS FOREIGN MINISTERS MEET TODAY. Foreign ministers from the
CIS member states are scheduled to meet in Moscow on January
10 to discuss political and military issues, TASS and Interfax
reported January 9. The ministers will undoubtedly discuss the
Black Sea Fleet dispute; also on the agenda is the matter of
dividing diplomatic missions and other institutions that belonged
to the former Soviet Union. (Sallie Wise Chaballier)

MOSCOW CITY GOVERNMENT RESIGNS. On January 9, the Moscow city
government, headed by Deputy Mayor Yuri Luzhkov, announced its
resignation and plans to reorganize the city administration,
TASS reported. Moscow Mayor Gavriil Popov has given Luzhkov two
weeks to create a more effective "government of economic reforms"
which will reportedly consist of five departments. These will
deal with economic reform, social welfare of the population,
city economy, long-term development, and territorial administration.
The administrative staff will also be reduced by about one-quarter.
(Carla Thorson)

RUSSIAN TRADE UNIONS PROTEST PRICE INCREASES. The Russian Federation
of "Independent" Trade Unions [i.e. former official unions] strongly
protested the government's failure to "socially protect the population"
while allowing price liberalization, TASS reported on January
9. Igor Klochkov, chairman of the trade union federation, told
TASS that the absence of state controlled prices puts the poorest
Russians on the brink of famine, and that prices for staples
such as bread, milk, potatoes, and cabbage should remain regulated.
Klochkov added that the trade unions will organize mass demonstrations
and other protests to take place on January 17 if their demands
are ignored. (Carla Thorson)

EXPORT BAN ON RUSSIAN GOODS. In what could be a major setback
to the economic viability of the Commonwealth of Independent
States, Russia has banned the export of 60 foodstuffs and consumer
goods. According to TASS and Western agencies of January 9, the
order for the ban was signed on December 29 by Russian First
Deputy Prime Minister Gennadii Burbulis, and the ban comes into
effect on January 10. The justification given was that "a few
states, former members of the Soviet Union, have imposed restrictions
on exports of consumer goods to the Russian Federation." The
ban will not be applied to CIS members that have not put any
restrictions on trade with Russia. The states involved were not
identified. (Keith Bush)

VNESHEKONOMBANK BRANCH CLOSED. Western agencies reported on January
9 that the Vneshekonombank branch in Moscow's International Trade
Center did not reopen that day after the Christmas break. A bank
spokesman said that Vneshekonombank would remain responsible
for servicing the foreign debt of the former USSR. He expressed
confidence that foreign firms who had deposited funds at the
bank would get their money back, but could not say when. According
to The Baltimore Sun of January 10, one of the main offices of
Vneshekonombank had been closed for two days because its private
landlord had turned off the electricity. (Keith Bush)

RUSSIAN DECREE ON STATE PROPERTY. On January 9, the Russian Parliament
adopted a decree defining state property, TASS reported that
day. The document defines three types of state property: federal
property; property belonging to Russia's constituent republics,
territories, regions, and districts, including Moscow and St.
Petersburg; and municipal property. Federal property is said
to include key sectors, areas and facilities such as the defense
industry, military facilities, the fuel and energy sectors, transport,
communications, telecommunications, the state treasury, the continental
shelf, territorial waters, and maritime economic zones. The decree
is seen as a prerequisite for the privatization process. (Keith
Bush)

SOVIET GERMAN LEADER CRITICIZES YELTSIN STATEMENT. Hugo Woas
stating at a news conference on January 9 that a session of the
Georgian parliament would be held shortly at which the Military
Council would hand over power to the provisional government,
which would rule until new elections are held. A program document
released on January 9 by the Georgian permanent representation
in Moscow and quoted by TASS affirms that the provisional government
"will create all conditions for the holding of new elections
within the next few months." Deposed President Zviad Gamsakhurdia
told Izvestia that he does not rule out the possibility of heading
a government in exile. (Liz Fuller)

RUSSIAN, ARMENIAN, BELARUS REACTION TO GEORGIAN EVENTS. In a
letter to the Georgian leadership quoted by TASS on January 9,
Russian SupSov Chairman Ruslan Khasbulatov said that Russian
deputies had been distressed by Gamsakhurdia's policies and by
human rights violations in Georgia, and wished the new Georgian
leadership "success in restoring justice [and] strengthening
democracy." Armenian Association for National Self-Determination
Chairman Paruir Hairikyan told TASS in Tbilisi on January 9 that
there had been "no alternative" to Gamsakhurdia's armed overthrow.
Belarus parliament Chairman Stanislau Shushkevich is quoted by
TASS on January 9 as arguing that the armed overthrow of a democratically
elected leader is "an extremely negative development" and that
violations of legality and human rights are "inacceptable," however
noble the aims they are intended to serve. (Liz Fuller)

TWENTY-FIVE KILLED IN BAKU FERRY EXPLOSIONS. Twenty-five people
were killed on January 8 and 70 injured in two explosions when
a ferry from Krasnovodsk in Turkmenistan docked in Baku, an Azerbaijani
journalist told RFE/ RL's Azerbaijani service on January 9. Interfax
quotes the Azerbaijani Interior Minister as claiming that two
parts of a bomb detonator were found on the ferry's deck and
terrorism by unnamed perpetrators could not be ruled out. (Liz
Fuller)

NAKHICHEVAN PARLIAMENT VOTES TO NATIONALIZE SOVIET ARMY EQUIPMENT.
The Medzhlis of the Nakhichevan Autonomous Republic of Azerbaijan
voted on January 8 to transfer to its jurisdiction all Soviet
army units and equipment on its territory, according to The New
York Times of January 8. This move represents a new challenge
to the Azerbaijani authorities which nationalized Soviet army
assets in mid- December. Azerbaijani President Ayaz Mutalibov
declared himself Commander in Chief of all Soviet non-strategic
forces deployed in Azerbaijan. (Liz Fuller)

KAZAKHSTAN'S MINERS STRIKE AGAIN. A Western news agency, quoting
Interfax, reported on January 9 that coalminers in Kazakhstan
have gone on strike to press demands for a doubling of their
wages in the wake of the price increases. They are demanding
a meeting with Kazakh President Nursultan Nazarbaev, with whom
coalminers in Karaganda Oblast made an agreement last June to
refrain from striking for a year. (Bess Brown)

DNIESTER SITUATION. The headquarters of Moldavian police in the
city of Bendery on the right bank of the Dniester came under
submachine gun fire from "Dniester" detachments on January 8,
Radio Rossii reported the next day. The radio also reported that
the city soviet (which is controlled by Russian communist holdovers)
has formed its own militia in opposition to the Moldavian police.
On January 3, the "Dniester" forces had seized the building of
Moldavia's National Security Ministry in the city. The would-be
"Dniester republic," proclaimed by Russians on the left bank,
is seeking to establish a major bridgehead in Bendery on the
right bank. (Vladimir Socor)

BALTIC STATES



EXERCISES SPARK CONTROVERSY LOCALLY-.-.-. Maneuvers planned by
the former Soviet armed forces in Lithuania this week have sparked
more controversy locally and abroad. Col. Gen. Valerii Mironov,
commander of the army group stationed in the Baltic States, criticized
the Lithuanian government's refusal earlier this week to grant
the military permission to hold maneuvers. Mironov told TASS
on January 9 that the Lithuanian leadership has "once more whipped
up anti-army feelings on its territory." (Riina Kionka)

.-.-.-AND ABROAD. In Washington, Representative Richard Durbin
(D-Illinois) reportedly asked other members of Congress on January
9 to join him in sending a letter to Russian President Boris
Yeltsin expressing concern about the exercises. According to
RFE/RL's Washington correspondent, Durbin said that "reports
of unwarranted military maneuvers are not in accordance with
Lithuania's sovereignty." (Riina Kionka)

SOVIET ARMY HELPS LATVIA WITH FUEL. It was also reported in Diena
on January-9 that Mironov has allocated 100,000 tons of diesel
fuel and 50,000 tons of gasoline for the Latvian public transport
system. His decision apparently responded to urging by the Russian
government, which has promised to continue to supply Latvia with
fuel. (Dzintra Bungs)

ESTONIA ORDERS FOOD RATIONING. The Estonian government on January-9
issued an emergency plan that includes the rationing of bread,
milk, butter, and cheese for three months starting January-11,
according to agency reports that day. Government spokesman Neeme
Brus said the order was issued because of acute food shortages
in the capital. Brus blamed the shortages on drops in agreed
deliveries of goods from Russia, and on unauthorized local sales
of Estonian farm products to Russia for hard currency. (Riina
Kionka)

EQUIPMENT SOLD ILLEGALLY FROM SOVIET BASES IN LATVIA. Eriks Tilgass,
Latvian government adviser on military issues, told Diena on
January-7 that equipment at the Soviet military bases in Latvia
is being sold illegally by the soldiers there. Contrary to orders
issued by Commander in Chief Evgenii Shaposhnikov, the army officials
are not informing the Latvian government which bases are to be
dismantled, thus preventing its interference in the selloff of
the equipment, which, after the soldiers depart from Latvia,
would become the property of Latvia. (Dzintra Bungs)

LITHUANIA TO COMPENSATE CRACKDOWN VICTIMS. Lithuania's Supreme
Council on January-12 will begin discussion of a draft bill to
compensate victims of last year's military assault on Vilnius,
according to BNS of January-9. The draft bill foresees paying
the families of those killed in the crackdown a lump sum of 180,000
rubles each. Those injured in the attack would receive between
10,000 and 90,000 rubles, depending on the severity of the injury.
January-12 is the eve of the Vilnius crackdown's first anniversary.
(Riina Kionka)

JURKANS: WEST COMPETES FOR INFLUENCE IN THE BALTIC STATES. On
January-9 Latvian Minister of Foreign Affairs Janis Jurkans told
the press in Riga that after attending meetings of the European
Community in Brussels he felt Western European countries-especially
Germany-and the United States are competing for influence in
the Baltic States. He said US Vice President Dan Quayle is expected
to visit Latvia in February. Germany plans to establish a Goethe
Institute in the near future. Jurkans also noted that the European
Community has offered 45-million ecus worth of food aid to the
Baltic States. (Dzintra Bungs)

LITHUANIA, ISRAEL ESTABLISH DIPLOMATIC TIES. On January-8 Lithuanian
Foreign Minister Algirdas Saudargas and Israel's ambassador to
Russia Arye Levin exchanged notes in Vilnius establishing diplomatic
links. Vytautas Landsbergis, Chairman of Lithuania's Supreme
Council, talked with Levin about political, economic, and cultural
relations between the two countries, Western and Baltic news
agencies reported. (Dzintra Bungs)

CENTRAL AND EASTERN EUROPE

MILOSEVIC CRITICIZES SERBIAN LEADERSHIP IN CROATIA. German and
Austrian TV on January-9 covered the reopening of the EC peace
conference in Brussels, its first session in two months. They
quoted conference chairman Lord Carrington as noting a "more
constructive" attitude on the part of the Yugoslav participants.
He suggested that Serbian President Slobodan Milosevic had become
more conciliatory, having "obviously taken note" of plans of
at least some EC countries to recognize Croatia and Slovenia
on January 15. The January-10 SŸddeutsche Zeitung's headline
quotes Milosevic as declaring the civil war to be over. The television
reports also cite Milosevic as denouncing and calling for the
ouster of Milan Babic, leader of Croatia's Serbs, for opposing
the UN peace plan. Meanwhile, in Sarajevo Bosnian President Alija
Izetbegovic said that his republic's Serbs "would not be allowed"
to carry out their plans for independence from the rest of Bosnia
and Herzegovina, the BBC reported on January-10. (Patrick Moore)


A COUP IN YUGOSLAVIA? On January-9 Borba called the federal military's
shooting down of an EC helicopter part of an "attempted coup"
and quoted Adm. Stane Brovet, the ranking Slovene still serving
with the federal forces, to that effect. In what was said to
be a telephone conversation with UN envoy Cyrus Vance, Brovet
linked the subsequent arrest of the air force commander, a Croat,
to the coup. Later that day, Radio Belgrade quoted a statement
from the Federal Secretariat for National Defense denying the
entire report. Austrian and German TV quoted army sources as
saying that the helicopter incident, in which four Italians and
one Frenchman were killed, was the result of poor traffic control.
German editorial comment generally argued that the incident underscores
the need to recognize Croatia and Slovenia as undisputed masters
of their own airspace. Italian editorials on January-8 and 9
were particularly indignant. (Patrick Moore)

HUNGARY REJECTS YUGOSLAV CHARGES. In a statement issued on January-9
the Hungarian government "categorically" rejected charges by
the Yugoslav federal government that Hungary was training Croatian
militiamen and delivering arms to Croatia, MTI reported. The
statement expressed the hope that the Yugoslav government will
withdraw the charges, formulated in a January-2 memorandum to
the UN Security Council, and explain what its intentions are
concerning bilateral relations. Hungarian Foreign Minister Geza
Jeszenszky called the charges "a conscious attempt to destroy
bilateral relations." (Edith Oltay)

RUSSIA HALVES NATURAL GAS SUPPLIES TO POLAND. On January-9 Polish
Foreign Trade Ministry director Mieczyslaw Ratajewicz said daily
natural gas deliveries from Russia to Poland have been halved
in recent days despite a new agreement between the two countries
to increase supplies in 1992. He was told by Moscow that the
Russian government failed to inform the state gas exporting firm
of the new deal with Poland. Under the $2.8-billion deal signed
in Warsaw in December, Russia agreed to guarantee 8.1-billion
m3 of natural gas in 1992. Earlier the Russian gas exporting
company had planned to decrease natural gas exports to Poland,
Western media reported. Ratajewicz added, however, that Moscow
assured Warsaw deliveries would be resumed in accordance with
the agreement. (Wladyslaw Minkiewicz)

MODERNIZATION OF POLISH POWER NETWORK. The French EDF state electricity
authority and Swedish Vattenfall have linked with two German
companies and the Polish firm Polskie Sieci Elektroenergetyczne
in order to bring Poland's power network up to European standards.
The EDF said on January-9 that improvement of the East European
network "is the vital precondition for any linkup between countries
in East Europe and the network in West Europe," Western media
reported. A contract has gone out for an initial study to design
an overall program for an East European network that will require
future investments of millions of dollars. (Wladyslaw Minkiewicz)


POLAND'S FLYING NUN. On January-9 Polish President Lech Walesa
gave a new Fiat Cinquecento to a nun who drove him to secret
meetings while Poland was under martial law. According to a statement
from the president's office, Sister Pauline, now Mother Superior
of the Order of Our Lady of Charity, showed great prowess behind
the wheel and continually succeeded in delivering the former
Solidarity leader to his meetings, even after having to lose
security agent "tails." The statement said Sister Pauline exhibited
"great reflexes and daredevil skills," Western and Polish media
reported. (Wladyslaw Minkiewicz)

MERCEDES CZECH JOINT VENTURE UPDATE. Mercedes Benz is still confident
that agreement can be reached with the Czech government on a
joint venture with the Czech truck maker Avia. A company spokesman
confirmed on January-9 that negotiations will continue with Avia
as well as with another Czech truck company, Liaz, and a letter
of intent will be signed today for a production alliance between
the three, an RFE/RL correspondent reports. The arrangement needs
Czech government approval. (Barbara Kroulik)

CZECHOSLOVAK AIR TRAFFIC CONTROLLERS PLAN STRIKE. Czechoslovak air traffic
controllers plan to strike on January-13 to demand pay increases and
improvements in the country's air traffic system. The strike would halt
almost all flights in Czechoslovak air space by Czechoslovak and foreign
airlines. CSTK quotes Czechoslovak Airlines as saying that negotiations
are being conducted to allow flights between Prague and Frankfurt.
(Barbara Kroulik)

CZECHOSLOVAK FOREIGN MINISTER IN ROMANIA. Czechoslovak Foreign
Minister Jiri Dienstbier arrived for a two-day visit of Romania
on January-9. He was welcomed by his Romanian counterpart, Adrian
Nastase. They are expected to sign a friendship and cooperation
agreement. Dienstbier is also scheduled to meet President Ion
Iliescu and Prime Minister Theodor Stolojan, foreign agencies
report. (Barbara Kroulik)

FOREIGN INVESTMENTS IN ROMANIA IN 1991. Investors from 97-countries
brought some $260-million to Romania in 1991. Over 5,000 contracts
were signed in trade and tourism; 2,000 in transport; over 1,000
in infrastructures; some 700 in agriculture; and 500 in light
industry. Joint-venture contracts signed in December with French
metal-processing companies placed France in first place among
foreign investors for 1991, followed by the USA, Germany, Italy,
Great Britain, and Turkey. (Mihai Sturdza)

PRIVATIZATION PROGRAM TO BE ACCEL-ERATED. Minister of Trade and
Tourism Constantin Fota said that privatization should be accelerated
so as to transfer at least 50% of the state-owned companies to
the private sector by the end of 1992. Only 8% of commercial
enterprises and 20% of tourism facilities were privatized last
year. In agreement with the unions and the National Privatization
Agency, the ministry will auction to the private sector more
state-owned assets and companies while maintaining as much as
possible their profile and staff. According to local media, the
authorities are considering new rules allowing profits to be
sent abroad. (Mihai Sturdza)

ROMANIAN INTERIOR MINISTER SEEKS US HELP. Interior Minister Victor
Babiuc said in Washington that his country is turning to the
USA for help dealing with its postcommunist law enforcement problems.
He mentioned the opening of an office of the US Drug Enforcement
Administration (DEA) in Bucharest to interdict narcotics traffickers.
AP said on January-9 that Romania also welcomes FBI help in setting
up a crime-fighting service, democratizing the police force,
and improving prison conditions. The DEA has already agreed to
train Romanian agents in crime prevention techniques. (Mihai
Sturdza)

BULGARIAN MIDDLE-EAST TIES. Foreign Minister Stoyan Ganev is
moving forcefully to upgrade cooperation with the six-nation
Gulf Cooperation Council (Saudi Arabia, Kuwait, Bahrain, Oman,
Qatar and the United Arab Emirates) and to raise his country's
profile in the Middle East generally, Western agencies report.
Completing a tour of Egypt, Jordan, and Syria on January-9, Ganev
announced that diplomatic ties with Riyadh will be established
"very soon." In Syria he pressed for closer economic cooperation,
especially in the private sector, at meetings with the Syrian
Chamber of Commerce and President Hafez Assad. Ganev also noted
that he has received positive responses from leaders in the region
to Bulgaria's offer to host future Middle-East peace talks. (Charles
Trumbull). [As of 1200 CET] Compiled by Sallie Wise Chaballier
& Charles Trumbull