No. 130, 10 July 1992

SUCCESSOR STATES TO THE USSR

CSCE PEACEKEEPING FORCE FOR NAGORNO-KARABAKH. German Foreign
Minister Klaus Kinkel told reporters in Helsinki on 9 July that
the CSCE had reached agreement in principle on a long-term plan
for deploying unarmed peacekeeping troops in Nagorno-Karabakh.
Czechoslovak Foreign Minister Zdenek Zigmund said that eight
CSCE member states had offered to provide observers, but that
the situation was still too dangerous and they would be deployed
only once a cease-fire had gone into effect. Armenian and Azerbaijani
officials greeted the decision with cautious approval, but a
Nagorno-Karabakh spokesman protested that unarmed peacekeepers
"would simply mislead people and be of little use." Meanwhile,
Armenia's permanent representative in Moscow, Feliks Mamikonyan,
said on 9 July that Azerbaijan had launched a new offensive in
Karabakh despite having declared a unilateral cease-fire on 8
July. (Liz Fuller)

RUSSIA'S SUPREME SOVIET THREATENS MOLDOVA. In a resolution on
Moldova, adopted on 9 July and carried by Moldovan media, Russia's
Supreme Soviet called for "using the Russian army to separate
the parties in conflict before the CIS peacekeeping forces go
into action." It also called for "urgent measures" in the event
that "Moldovan military forces fail to cease actions in the Dniester
region"; and proposed that Yeltsin raise, in Helsinki, the issue
of Moldova's membership in the CSCE on the grounds that Moldova
"has committed genocide." (Vladimir Socor)

"DNIESTER" FORCES VIOLATE CEASE-FIRE. At a meeting on 9 July
to assess compliance with the cease-fire agreement signed on
7 July, the commission of Russian, Moldovan, and "Dniester" military
observers found that Moldovan forces had complied fully while
the "Dniester" forces had not. The commission's report was released
by Moldova's Foreign Ministry. Two previous reports, issued by
a quadripartite commission comprised of Russian, Ukrainian, Romanian,
and Moldovan officers, also blamed the cease-fire violations
on the "Dniester" side. (Vladimir Socor)

CRIMEAN REFERENDUM SUSPENDED. The Crimean parliament voted on
9 July to place a moratorium on its resolution of 5 May to hold
a referendum on the peninsula's status, Radio Ukraine and "Novosti"
reported. The referendum was scheduled to be held on 2 August.
Parliamentary Chairman Nikolai Bagrov argued that it would be
unwise to hold the vote at a time when negotiations with Kiev
were moving in a positive direction. (Roman Solchanyk)

CONSTITUTIONAL COURT DENIES REQUEST TO POSTPONE CASE AGAINST
CPSU. On 9 July, People's Deputy Aleksandr Kligman, representing
the CPSU, asked the Constitutional Court to postpone consideration
of the Party's constitutionality until the Russian parliament
votes on a draft law which would set procedural guidelines, Russian
and Western agencies reported. Kligman argued that Russian law
has no norms for determining the constitutionality any party.
The court, after a brief recess, denied the request. In his opening
statement on the constitutionality of the CPSU, lawyer Andrei
Makarov, representing the Russian president, said, "we will prove
that under the guise of bringing communist ideology to life,
the . . . Communist Party of the Soviet Union carried out, against
its own people, a terror unprecedented in history." (Carla Thorson)


CONSCRIPT PROBLEMS IN THE CIS. The commander in chief of CIS
Naval Forces, Adm. Vladimir Chernavin, told reporters on 8 July
that more than half of all CIS military conscripts have managed
to avoid induction this year, Reuters reported. He also said
that large numbers of conscripts with criminal records are coming
into the armed forces, and that the scale of ethnic strife has
grown to unprecedented dimensions. Meanwhile, Moskovsky komsomolets
reported on 10 July that, according to officials in the Moscow
draft office, almost 50% of all eligible conscripts in the city
have been granted deferrals for reasons of health. Bad eyesight
and internal disorders were reported to be the most common ailments,
while psychological illnesses were also said to be on the rise.
The report linked the health problems to environmental degradation
and to alcoholism among the parents of conscripts. (Stephen Foye)


DEFENSE INDUSTRY WORKERS TO PICKET GOVERNMENT. Defense industry
workers plan to picket Moscow legislative and state buildings
daily, ITAR-TASS reported on 8 July. "We have no other choice,"
declared the Coordinating Committee of Moscow Defense Industry
Labor Collectives (VKP) chairman, expressing frustration at the
Russian leadership's failure to resolve sectoral ills. ITAR-TASS
noted that the defense industry shares the problems of other
industrial branches, including non-payment of wages and lack
of available credit. Unless some of their demands are met, the
VPK's high technology enterprises-will likely halt production.
(Brenda Horrigan)

RUSSIAN COMMISSION ON MILITARY PROPERTY IN GERMANY CREATED. Russia
has set up a commission to handle the disposal of former Soviet
military property in Eastern Germany, ITAR-TASS reported on 7
July. Contingent on the approval of local military authorities,
the commission will sell or lease military property; it is also
authorized by new Russian government regulations to invest in,
or create, corporations. (Brenda Horrigan)

KHASBULATOV AGAIN ATTACKS GOVERNMENT. Ruslan Khasbulatov, the
Russian parliamentary chairman, resumed his attack on the government
during a meeting with leading economists. He stated that the
parliament wants to "act more decisively" on the reform program,
ITAR-TASS reported on 8 July. Arguing that the situation in the
economy can still be brought under control, Khasbulatov noted
that if the government fails to develop a more far-reaching reform
program, the parliament will prepare its own version of reform
and force the government to fulfill it. (Alexander Rahr)

NEW DEMOCRATIC BLOC SET UP IN RUSSIA. Several democratic parties
and movements, out of some 40 political groups that met in Moscow
on 4 July, signed a declaration on 9 July announcing the creation
of the bloc "Democratic Choice" in support of President Yeltsin
and the Russian government, ITAR-TASS reported. Among the organizations,
which signed the declaration, are the Democratic Russia movement,
the Republican Party of Russia (set up in late 1990 on the basis
of the Democratic Platform within the CPSU), and the Russian
League of Businessmen. The Russian Democratic Reform Movement,
headed by Gavriil Popov, which took part in the 4 July meeting,
has not signed the declaration so far. The bloc said it would
try to neutralize the activities of the communists and the extreme
Russian nationalist opposition to Yeltsin as well as the recently
created centrist bloc "Civic Union." (Vera Tolz)

NEW VICE-CHAIRMAN OF STATE TV APPOINTED. Political analyst Igor
Malashenko, 38, has been appointed vice chairman of the first
channel of Russian television, "Ostankino." In an interview carried
by ITAR-TASS on 9 July, Malashenko said that TV must offer information
and not propaganda. The official also spoke of long-term tasks:
preserving a "common information space" within the former Soviet
Union, and creating an interstate TV company. Earlier, at the
CIS meeting in Moscow, Yeltsin and other leaders of CIS member
countries criticized "Ostankino." One of the criticisms was that
its reporting had contributed to the escalation of the conflict
in Moldova. In response, on 6 July, the leadership of "Ostankino"
issued a statement saying that "it is obvious that the times
are returning when political leaders try to blame the media for
their own mistakes" and to hold the media responsible for political
instability. The statement said "Ostankino" would resist any
attempts to turn it into a propaganda tool for leaders of the
CIS countries. (Vera Tolz)

SOME RUSSIAN REGIONS CLOSED TO FOREIGNERS. The Russian Government
announced that 16 regions in the country will be closed to foreigners,
ITAR-TASS reported on 9 July. Foreigners will not be permitted
to travel without special permission from the Ministry of Security
to the following regions: the Kamchatka peninsula, the city of
Komsomolsk on Amur, the island of Russky in Primore, several
raions in Moscow and St. Petersburg. The regions of Orenburg,
Nizhegorod, Arkhangelsk, Murmansk, Ekaterinburg, Chelyabinsk,
Kaliningrad, Volgograd, Astrakhan, Krasnoyarsk, Mordovia and
some other raions are also restricted. (Alexander Rahr)

YELTSIN IN GOOD HEALTH. Physicians have examined Boris Yeltsin
in Moscow and came to the conclusion that the president is in
good general health but needs more physical activity, such as
playing tennis and swimming, in order to stay fit, ITAR-TASS
reported on 9 July. A full report on Yeltsin's health will appear
in the next issue of Argumenty i fakty. Yeltsin had taken several
unexpected vacations in recent months, prompting speculation
that he had either a heart ailment or a drinking problem. (Alexander
Rahr)

KRAVCHUK ON THE CIS. Ukrainian President Leonid Kravchuk told
the Belgian newspaper Le Soir that he had no intention of idealizing
the CIS and that his criticism of the commonwealth is intended
to break its paralysis. The CIS, he added, should not be protected,
but instead every effort should be made to resolve the problems
before it. The interview was summarized by ITAR-TASS on 9 July.
(Roman Solchanyk)

GEORGIAN DEPUTY PRIME MINISTER KIDNAPPED BY GAMSAKHURDIA SUPPORTERS?
The whereabouts of Georgian Deputy Prime Minister Aleksandr Kavsadze
remain unclear following an incident on 9 July in which his car
was blown up while traveling in north-west Georgia, according
to Interfax and Kavinform. The driver was killed; Kavsadze and
two other passengers are missing. Georgian State Council secretary
Vakhtang Goguadze stated that Kavsadze was probably alive and
in the hands of terrorists. Speaking in Helsinki where he is
attending the CSCE summit, State Council chairman Eduard Shevardnadze
blamed supporters of ousted president Zviad Gamsakhurdia for
the incident, Western agencies reported. (Liz Fuller)

SIGNS OF STABILIZATION IN TAJIKISTAN. In Kurgan Tyube oblast,
the main highway has passed from the control of rival fighting
groups to that of the republican OMON, according to Russian TV
on 9 July. Radio Rossii reported that over the past three days,
residents of the Kurgan Tyube and Kulyab oblasts have turned
in over 120 firearms to Interior Ministry authorities. Meanwhile,
the government has announced an amnesty for all participants
of the April-May demonstrations in Dushanbe, according to an
ITAR-TASS report of 8 July. (Cassandra Cavanaugh)

TAJIK BORDER VIOLATIONS CONTINUE. Izvestiya of 9 July details
an attempt by an armed group of Tajiks to reenter the republic
illegally from Afghanistan on 8 July. One person was killed,
two wounded, and eighteen captured. According to the chief of
the Central Asian Border District, B. Gribanov, the violators,
all residents of Kurgan-Tyube oblast, had undergone military
training in Afghanistan and were transporting weaponry. Nezavisimaya
gazeta also reported on 10 July that negotiations between representatives
of the Central Asian Border District and the Russian Border Guards
were considering the transfer of the Tajik border guards to Russian
jurisdiction. Meanwhile, Afghanistan's Hezb-i-Islami party released
a statement on 8 July requesting direct talks with Tajikistan
on the exchange of prisoners of war, an RFE/RL correspondent
reported. (Cassandra Cavanaugh)

JAPAN TO AID DEVELOPMENT OF KYRGYZSTAN? Kyrgyztag-TASS reported
on 9 July that the Japanese firm, Mitsui Corporation, has completed
an analysis of that country's program of economic reform measures.
Japan is prepared to give an unspecified amount of aid to Kyrgyzstan
if experts from the International Organization on Economic and
Social Development find that it meets the criteria for the status
of a developing country. The report notes that Japan gave over
$9 billion in aid to developing countries in 1991. (Cassandra
Cavanaugh)

DEMOGRAPHIC SITUATION IN RUSSIA. The Russian population will
reach 148.5 million at the beginning of 1993, up only 0.1 million
from 1992, according to a prognosis by the Russian State Committee
for Statistics, as reported by Rossiiskie Vesti (no. 27). The
population growth will result from in-migration exceeding out-migration.
The birth rate continues to fall; preliminary calculations show
1.7 million births in 1992, compared to 1.8 million in 1991 and
2.2 million in 1989. For the first time since the 1950s, the
number of births will equal the number of deaths, resulting in
zero real population growth. The number of deaths in 1992 is
expected to increase by 15% to reach 1.7 million. (Sarah Helmstadter)


FARM MACHINERY PLANTS HALT PRODUCTION. Two of Russia's biggest
farm machinery plants have halted production, Reuters reported
on 4 July, citing Russian and CIS TV reports. The Rosselmash
plant in Rostov had been idle for two weeks because of nondeliveries
of components from Ukraine. The plant owed suppliers 4 billion
rubles but was itself owed 9 billion rubles by customers; 44,000
workers at the plant had been laid off. The tractor assembly
lines at another plant, the Kirov factory in St. Petersburg,
had also been halted because nobody wanted to buy the tractors.
Although observers have predicted better crop yields this year,
the harvest is expected to suffer from widespread shortages of
equipment and spare parts. (Keith Bush)

RUSSIAN GRAIN HARVEST OUTLOOK. Russian Agriculture Minister Viktor
Khlystun announced on 8 July that this year's grain harvest is
now estimated at 98 million tons, ITAR-TASS reported. This would
be below the 108 million tons originally planned but above last
year's total of 89 million tons. A government decree published
on 8 July provides for a crash program to help bring in this
year's harvest. It stipulates cheap credits for kolkhozes, sovkhozes,
and private farmers; earmarks fuel and equipment for the agricultural
sector; and it envisages massive participation by the army. (Keith
Bush)

CENTRAL AND EASTERN EUROPE

EASTERN EUROPEANS IN HELSINKI. World leaders assembled at the
summit meeting of the Council for Security and Cooperation in
Europe on 9 July.

· In his speech Czechoslovak President Vaclav Havel urged the
West to establish a peace order capable of meeting the demands
of the 21st century. He deplored the growth of racial tensions,
nationalist fanaticism and intolerance following the downfall
of communism but added that these negative features were an illustration
for the fact that old ambitions of different peoples which had
been suppressed for long are now dramatically claiming recognition.
Havel said that even if there were a split in his country, "both
halves will continue to be trustworthy partners." German Chancellor
Helmut Kohl reportedly assured Havel that Germany will adhere
to all of its treaties with Czechoslovakia whether or not the
county splits. The two agreed that "the door to the EC cannot
be permanently closed to either Prague or Bratislava." In a meeting
with US President George Bush, Havel said the Czechoslovak crisis
is based on historical processes that can be stopped neither
from within nor without.

· Poland's President Lech Walesa offered support for the creation
of a European peace-keeping force. He added that he had identified
the need for a peace-keeping operation in Yugoslavia as early
as September 1991. Walesa proposed adding the principles of "solidarity
and reconciliation" to the CSCE's credo. Walesa met with Havel
and Russian President Boris Yeltsin. Walesa and Yeltsin agreed
to hold a bilateral conference on economic relations, possibly
in August in Kaliningrad. Gazeta Wyborcza reports on 10 July
that Walesa also appealed to Yeltsin to halt the devastation
of former Soviet bases in Poland by withdrawing Russian troops.


· Also on 9 June Latvian Supreme Council Chairman Anatolijs Gorbunovs
asked for help from other CSCE states in resolving problems hampering
Latvia's further democratic, political and economic development,
principally the illegal presence of ex-USSR forces, and pointed
out that the instability stemming from the presence of these
troops in Latvia is also a source of potential instability for
its neighbors, Radio Riga reports. In his speech, Estonian Supreme
Council Chairman Arnold Ruutel reiterated this point and noted
that European countries should ask against whom these troops
in the Baltic States are being directed. Ruutel also noted that
in the allocation of aid, credits, and investments, the Baltic
States have sometimes received less than their East European
neighbors and that an important reason for this disparity is
the political instability created by the presence of foreign
troops, Radio Tallinn reports. Lithuanian Supreme Council Chairman
Vytautas Landsbergis, held talks with Council of Europe Secretary-General
Catherine Lalumière on 8 July and the next day with delegation
leaders from Ireland, Finland, Canada, and Belarus. The three
Baltic foreign ministers also spoke with British Foreign Secretary
Douglas Hurd. Landsbergis will address the session on 10 July
and, with his Latvian and Estonian colleagues, meet with President
Bush.

· Romanian President Ion Iliescu met on the 9th with delegation
heads from the US, Canada, Moldova, Russia, and Bulgaria, as
well as with EBRD president Jacques Attali. Iliescu concentrated
on the situation in neighboring Moldova. According to Rompres,
Iliescu and Yeltsin agreed that the status of the Dniester region
should be decided by Moldova's parliament, and that Moldova's
sovereignty and integrity must be respected. Bulgarian President
Zhelyu Zhelev proposed that all foreign ministers of the CSCE
get together in order to discuss the ongoing military conflict
in Moldova. In addition to Iliescu, Zhelev has also met with
his Moldovan counterpart Mircea Snegur. Reportedly, Zhelev is
the only speaker who has raised the Macedonian problem at CSCE;
he repeated the view that no Balkan state should be involved
in peace-keeping operations in ex-Yugoslavia. In his speech at
the CSCE Conference, Hungarian Prime Minister Jozsef Antall was
very critical of the "insecure steps" taken by the [Western]
democracies in the Yugoslav conflict and stressed the importance
of solving the problems in the world by preventing such conflicts
like Yugoslavia. Antall later held half-hour talks with Lech
Walesa and Boris Yeltsin.

· President Alija Izetbegovic of Bosnia-Herzegovina called for
military intervention in his embattled republic, especially for
air strikes against Serb artillery and armor around Sarajevo.
The 10 July Washington Post quotes him as asking rhetorically
"is the world powerless to put an end to this evil?" US President
George Bush gave what the New York Times calls a "sympathetic
but unforthcoming hearing," and several American dailies noted
that his comment on Bosnia, namely "this has to be stopped,"
fell far short of his famous line on Kuwait, "this will not stand."
Bush called for: getting relief supplies through "no matter what
it takes," seeing that UN sanctions are respected, preventing
the spread of the conflict, and supporting efforts aimed at securing
a cease-fire. He said he would "consider" Izetbegovic's request
for intervention, Secretary of State James Baker noted. The Bosnian
leader replied that it was "enough for me" that the Americans
were not ruling out intervention. (RI staff)

MOMENTUM BUILDS FOR INTERVENTION IN BOSNIA. The 10 July Los Angeles
Times reports that the US and its allies are pursuing "a strategy
of gradual escalation" in the conflict, in hopes of halting [it]
without having to resort to outright military intervention."
Meanwhile, sporadic fighting became more intense in Sarajevo
on 9 July, German media report, and France announced it is placing
an additional 700 men and a squadron of helicopter gunships at
the UN's disposal. Britain and the US each said they are sending
additional warships to the Adriatic, while the WEU and NATO foreign
ministers are preparing to meet in Helsinki to consider imposing
a naval blockade on the Montenegrin coast. A UN mandate will
be necessary, however, to sanction either a military intervention
or the stopping and searching of ships at sea. (Patrick Moore)


BREAKTHROUGH IN CROATIAN WAR? According to the New York Times,
Serbian forces in the disputed Krajina region of Croatia have
agreed to return the so-called "pink zones" to Croatian government
control. The pink zones are those areas Serbs occupy that lie
outside of areas protected by UN forces. The agreement was reached
on 9 July between the commander of the UN peacekeeping force
in Yugoslavia, Gen. Satish Nambiar, and the president of the
Serbian "Krajina Republic," Goran Hadzic, and calls for the gradual
withdrawal of Serb forces to be supervised by a four-member commission
consisting of UN, EC, Croatian, and Serbian delegates. No timetable
has been set for the withdrawal. (Gordon Bardos)

SUCHOCKA CHARTS COURSE. Speaking at a press conference on the
eve of her confirmation vote in the Sejm, prime minister candidate
Hanna Suchocka said she intends to find a middle road between
conflict and submissiveness in her relations with President Lech
Walesa. She said her seven-party coalition is open to other partners.
Asked if she planned to be a "second Thatcher," she said there
was no reason to assume there was no place for a "first Suchocka."
In an interview with Gazeta Wyborcza on 10 July, Suchocka praised
the achievements of former finance minister Leszek Balcerowicz,
adding that "eventually everyone will give him credit for enacting
a revolution." She admitted that, if confirmed, her first challenge
would be dealing with the road blockades organized by the Self-Defense
union. (Louisa Vinton)

POLISH POLICE BLOCK FARMERS' MARCH. Radical farmers from Self-Defense
attempted to drive dozens of tractors into Warsaw on 9 July,
despite city authorities' refusal to grant them permission. Riot
police halted the farmers, who advanced on the city from four
directions, and forced them off the main roadways. A few farmers
were injured; two were arrested. In one location, tear gas was
used against farmers who threatened to set fire to tanks of gasoline.
By midnight, all the roads around Warsaw were cleared. Self-Defense
leaders nonetheless threatened to attempt a second, larger march
on Warsaw. (Louisa Vinton)

NEW CANDIDATES FOR CZECHOSLOVAK PRESIDENCY. Miroslav Sladek,
chairman of the extreme-right Republican Party announced on 9
July that he will run for the presidency to replace Vaclav Havel
in the next round of voting to be held on 16 July. Another possible
candidate might be controversial former federal interior minister
Richard Sacher, who would probably be supported by Communists
and Slovak nationalists. Neither candidate is seen to have much
chance, however, as Czech right-of-center parties are expected
to block them. In a separate development, Havel said on 9 July
that it "would not be reasonable for him to run again for president
even if that option becomes available." (Jan Obrman)

ESTONIA SETS ELECTION DATE. On 9 July the Estonian Supreme Council
voted to hold elections for its parliament and president on 20
September, ETA reports. These will be the first elections in
any of the Baltic States after they achieved their independence.
Only persons who were citizens of Estonia in 1940 and their descendants
will be eligible to vote--in effect not giving the vote to the
large number of Russian-speakers who arrived in the republic
later. (Saulius Girnius)

LATVIAN SUPREME COUNCIL OUSTS 15 DEPUTIES. The Latvian Supreme
Council, upon recommendation of a special investigative commission,
voted on 9 July to annul the mandates of 15 deputies because
in the period from 4 May 1990 through August 1991 they had actively
opposed Latvia's independence. Most of these deputies belonged
to the procommunist and pro-Moscow Ravnopravie faction; its leader
Sergejs Dimanis also lost his mandate. Now 170 deputies remain
in the Latvian Supreme Council, Radio Riga reports. The ousted
deputies claim the action is illegal, but the annulment of a
deputy's mandate is permitted under the Law on the Status of
Deputies. (Dzintra Bungs)

LITHUANIAN PARLIAMENT PASSES ELECTION LAW. On 9 July the Lithuanian
Supreme Council approved a new election law for its parliament
by a vote of 93 to 1, Radio Lithuania reports. The law states
that voters will be given two ballots; one for the direct election
of 71 deputies and the other for electing 70 deputies as representatives
of parties or political movements. A 4% minimum will be required
for a party to gain any seats. By a vote of 98 to 2 with 5 abstentions
the parliament decided that the elections will be held on 25
October. (Saulius Girnius)

LUKANOV ARRESTED. On 9 July Andrey Lukanov, former Bulgarian
prime minister and top-ranking Socialist was jailed, BTA reports.
Lukanov, who served as foreign trade minister 1987-89 but helped
to oust communist leader Todor Zhivkov in November 1989, is charged
with misappropriation of state funds, in particular granting
financial support to communist states and Third World regimes.
Lukanov was stripped of his parliamentary immunity on 7 July.
The Socialist caucus has temporarily suspended its participation
in the National Assembly in protest. (Kjell Engelbrekt)

JESZENSZKY ON RELATIONS WITH SLOVAKIA. Hungarian Foreign Minister
Geza Jeszenszky said in an interview published on 8 June in the
Slovak paper Narodna obroda that he hopes that new talks between
his government and Slovakia can soon begin on ethnic minorities
as well as the controversial hydroelectric project at Gabcikovo-Nagymaros
recently canceled by the Hungarian side. Jeszenszky said that
responsibility for the welfare of ethnic Hungarians in Slovakia
and ethnic Slovaks in Hungary lies with the country where those
minorities live and expressed the hope that the two governments
would continue to cooperate on cross-cultural issues. On the
Danube dam project, Jeszenszky repeated his government's intention
to halt construction and urged new negotiations. According to
Radio Budapest on 8 July , Hungary presented yet another protest
note to the Czechoslovak embassy in Budapest on the continued
construction. (Judith Pataki)

HUNGARIAN FOREIGN MINISTRY SPOKESMAN ON HIS VISIT TO ROMANIA.
Foreign Ministry Spokesman Janos Hermann returned from a 2-day
visit to Bucharest on 9 July. In an interview with Radio Budapest,
Hermann sounded altogether positive about the improvement of
relations between the two countries and expressed hope that new
border crossings will be opened. He also said that agreement
was reached between the two countries on the mutual return of
refugees. Hermann told reporters that high-level foreign ministry
officials from the two countries will confer in Szeged and said
that Hungarian Interior Minister Peter Boross is expected in
Romania in the near future. (Judith Pataki)

CZECHOSLOVAK FOREIGN RESERVES HIGHEST SINCE WAR. According to
CSTK, the Czechoslovak State Bank announced on 9 July that the
country's foreign exchange reserves rose last month to their
highest level since the end of World War II. The bank said reserves
in the entire Czechoslovak banking system rose to $4.7 billion
in June--a 100% increase since the end of communist rule. Also
on 9 July, 19 commercial banks and brokerage firms signed the
charter of the new Prague stock market due to open in the fall.
The stock market will open with an initial capital of about 5.44
million koruny ($188,000) and is patterned after other European
bourses. (Jan Obrman)

[As of 1200 CET]