No. 135, 17 July 1992

SUCCESSOR STATES TO THE USSR

CIS PEACEKEEPING FORCE TO BE SET UP. At their a meeting in Tashkent
on 16 July, the foreign and defense ministers of the CIS agreed
to create a CIS peacekeeping force within the next week, Interfax
reported. The presidents of each member state have, however,
still to sign the accord. A communique from the ministers said
that the planned force will not participate in military actions
when it intervenes in a given conflict. It is also supposed to
intervene only after being invited by the parties directly involved.
Russian Foreign Minister Andrei Kozyrev noted that he hopes the
force will begin operating before the next CIS summit in Bishkek
on 25 September. He added that, although some issues remain unresolved,
the CIS is becoming more efficient. (Alexander Rahr)

KOZYREV ON NEW CIS MINISTRY. Russian Foreign Minister Andrei
Kozyrev responded with skepticism to the notion of creating a
new special ministry for relations between Russia and the CIS.
He suggested that removing this task from the Foreign Ministry's
authority might send the wrong signal to the other CIS states,
for they might regard such an institution as "a department for
ex-colonial affairs." He said the issue would be resolved by
the president and the government, Izvestiya reported on 16 July.
(Suzanne Crow)

RUTSKOI ATTACKS GOVERNMENT, KOZYREV. Speaking at the first meeting
of the Political Consultative Council of the newly founded "Civic
Union," Russian Vice-president Aleksandr Rutskoi called for the
strengthening of presidential power, attacked the government
for its failure to solve the economic crisis, and demanded the
resignation of Foreign Minister Andrei Kozyrev, ITAR-TASS reported
on 16 July. Rutskoi said he insisted on Kozyrev's departure for
his provocative statements about a possible putsch. He urged
a new reorganization of the government and the replacement of
the current theoreticians with "people of practical knowledge."
He denied that the Civic Union's criticism is directed against
the president. (Alexander Rahr)

CENTRIST BLOC PROPOSES ALTERNATIVE PROGRAM. The Political Consultative
Council of Russia's new centrist bloc, "Civic Union," met for
the first time on 16 July, Russian TV's "Vesti" reported. Leading
the agenda was the "Alternative Economic Policy." This is Civic
Union's alternative to Gaidar's reform program, but it was described
by a clearly hostile Nezavisimaya gazeta on 17 July as calling
for "a state-regulated economy founded on a strong defense industry
extending throughout the former USSR." Civic Union called on
President Yeltsin to make "energetic corrections" to the strategic
course of the reform and assured him of Civic Union's willingness
not only to provide an economic program but also to provide the
cabinet ministers to carry it out. Civic Union invited Yeltsin
to enter into consultations with it. (Elizabeth Teague)

YELTSIN PLEDGES TO UPHOLD INDEPENDENT MEDIA. On 16 July Boris
Yeltsin met with top Russian print and broadcast editors and
pledged to support the media against a controversial draft resolution
that would establish a special council to control Russian television
and the press. The discussion of the draft resolution in parliament
planned for July 16 was postponed to July 17. Yeltsin said that
he would block any law that would undermine an independent media,
according to "Vesti." The Russian president asserted that a strong
leader does not need to control the media: "If a leader begins
to put pressure on the press, it means he's weak." Media editors
warned that the Russian parliament's attempts to bring the independent
media under the control of the government threaten the fragile
balance between legislative and executive power. (Kate Brown)


PARLIAMENT VERSUS EXECUTIVE. After President Yeltsin resisted
the attempt of parliamentary chairman, Ruslan Khasbulatov, to
establish parliamentary control over the mass media, the parliament
adopted a new "Law on the Protection of Constitutional Organs
of State Power" which is intended to prevent Yeltsin from setting
up a new Security Council. According to ITAR-TASS on 16 July,
the law stipulates that no parallel executive structures to the
existing constitutional bodies should be created. The law said
that those organs, which seek the functions of state power for
themselves, should be dissolved. Yeltsin has recently empowered
the Security Council with responsibilities which are not envisioned
in the Russian Constitution. (Alexander Rahr)

SHAKHRAI INJURED IN CAR CRASH. Yeltsin's top representative at
the Constitutional Court's hearing on the banning of the CPSU,
Sergei Shakhrai, has been injured in a car crash which, according
to Western news agencies on 16 July and "Vesti" of 17 July, has
aroused suspicion that it could have been an assassination attempt.
Shakhrai's car was traveling at 130 kilometers per hour in a
central lane reserved for official cars when it was suddenly
hit by a Zhiguli that overtook his Volga and pushed it into oncoming
traffic. Shakhrai suffered a shoulder injury; his body guard
and driver were hospitalized. (Alexander Rahr)

"DNIESTER" LEADER VOWS TO CONTINUE WAR. The self-styled "Dniester
republic Supreme Soviet" chairman Grigore Maracuta told "Vesti"
on 15 July that the "Dniester" leaders saw no point in negotiating
with Chisinau over the political status of their area. Reacting
to Chisinau's invitation to Tiraspol leaders asking that they
begin those negotiations, return to parliament, and take up major
ministerial posts, Maracuta retorted that "the continuation of
the war is the only real course in relation to Moldova." (Vladimir
Socor)

MOLDOVAN PRESIDENT APPEALS TO DEMOCRATS IN CIS. In an interview
with Italian TV, excerpted on Moldovan TV on 16 July, Moldovan
President Mircea Snegur said that Moldova met with understanding
from Russian democrats including Yeltsin but is being threatened
by "national-chauvinist forces still hoping to restore the empire.
These forces threaten the independence of all newly-independent
states. The democrats in all these states must join together
to counter those forces," Snegur said, according to Moldovapres.
(Vladimir Socor)

RUSSIAN BUDGET DEFICIT INCREASED. During the 16 July session
of the Russian parliament, anticipated revenues for the 1992
budget were cut, while projected expenditures were raised, ITAR-TASS
and Interfax reported. The top rate of value-added tax was lowered
from 28% to 20%, while the tax on some staple foodstuffs was
reduced to 15%. Acting Prime Minister Egor Gaidar announced increases
in planned agricultural subsidies and in allocations for housing
construction for the military. Economics Minister Andrei Nechaev
said that "parliament had not only demonstrated its incompetence,
but [also] its complete lack of responsibility," and warned of
adverse reaction by the IMF. A final decision on the amended
state budget was postponed until 17 July. (Keith Bush)

PRESSURES FROM BELOW ON THE RUSSIAN BUDGET. Reasons for the relaxation
of budgetary discipline include pressures from numerous regions,
in addition to those from national pressure-groups, Russian TV
and ITAR-TASS reported on 15 and 16 July. Recent examples include:
a resolution by the Ivanovo oblast council to withhold payments
to the federal budget (blocked in the courts); continuing demands
from farm managers for higher state procurement prices, with
the Rostov region calling for arrears of state payment in 1990
and 1991 to be made up; calls from an assembly of "small towns"
for increased funds; calls for Siberian economic independence
from the Siberian Agreement association, meeting in Ulan-Ude.
(Philip Hanson)

AID FOR RUSSIAN AGRICULTURE. Russian government officials announced
more financial support for the ailing agricultural sector on
16 July. Acting Prime Minister Egor Gaidar, as part of a very
disturbing budget report to parliament, stated that critical
financial circumstances will require doubling previously projected
price subsidies on agricultural products this year. Quoting from
an interview in Izvestiya with Agricultural Minister Viktor Khlystun,
ITAR-TASS also confirmed that the first $1 billion of IMF credits
are to go to the agro-industrial sector. Khlystun said that the
funds would be used for "development and the creation of an infrastructure
of banks specializing in agriculture." (Erik Whitlock).

RUSSIAN CENTRAL BANK CHAIRMAN RESIGNS. On 16 July, the Russian
parliament accepted the resignation of Central Bank Chairman
Georgii Matyukhin; he had offered this "for reasons of health,"
ITAR-TASS and Interfax reported. Matyukhin had repeatedly been
at odds first with the Yeltsin administration, allegedly for
printing too much money, then, more recently, with the parliament
for his excessively tight monetary control. Khasbulatov announced
that Matyukhin's successor would have to be approved by Yeltsin.
Interfax named Viktor Gerashchenko and Boris Fedorov as the most
likely candidates. (Keith Bush)

RUSSIA'S FOREIGN DEBTS. The Russian Federation Statistics Committee
has given authoritative figures for Russia's convertible currency
debts in its report on the federation's foreign trade in Rossiiskaya
gazeta of 3 July. Russia's convertible currency debts as of 1
April were said to be $59.1 billion; additional interest for
the remaining period of the credits, $14.4 billion; deferred
payments for imports, $4.4 billion; debts under lend-lease, $0.8
billion; debts to the former socialist countries, $33.7 billion;
and debts under clearing and barter deals, $5.9 billion. Russia's
total indebtedness is thus considerably higher than was previously
thought. (Keith Bush)

RUSSIAN PEACEKEEPER KILLED IN SOUTH OSSETIA. A Russian member
of the peacekeeping force deployed in South Ossetia earlier in
the week was killed when the vehicle in which he was riding struck
a land mine on 16 July, AFP reported, quoting Interfax. Four
other members of the peacekeeping force were injured. A Georgian
source reported that both Russians and Georgians had been in
the vehicle. This incident was the first report of violence in
South Ossetia since the force, consisting of Russian, Georgian
and Ossetian troops, took up positions near Tskhinvali on 14
July. (Bess Brown)

KAZAKH DEFENSE MINISTER ON NUCLEAR WEAPONS. Kazakh State Advisor
Tulegen Zhukeev and Defense Minister General Sagadat Nurmagambetov
met with a delegation from the US Department of Defense on 16
July in Alma-Ata, according to Kaztag-TASS. Nurmagambetov gave
a statement in which he emphasized that all strategic nuclear
weapons on Kazakh territory would be dismantled according to
schedule. He also noted that Russia has agreed to help Kazakhstan
develop its armed forces, which are likely to consist of a small
number of highly mobile units. The US delegation will also visit
Ukraine, Belarus and Russia to discuss the technical problems
of nuclear disarmament, which the US has committed $400 million
to support. (Cassandra Cavanaugh)

KUNAEV DENIES WANTING OLD REGIME BACK. Former first secretary
of Kazakhstan's Communist Party and longtime Brezhnev crony,
Dinmukhamed Kunaev, has denied that he signed an appeal by hard-line
Communists for the restoration of the old Communist Party and
Komsomol in Kazakhstan. Izvestiya's Alma-Ata correspondent reported
in the 15 July issue that the appeal had appeared over the signatures
of hard-liners such as Viktor Alksnis, Albert Makashov and Sazhi
Umalatova, as well as Kunaev, in an independent Alma-Ata newspaper.
Kunaev told an RFE/RL correspondent that he had never signed
such a document, and that he now intends to write further memoirs
to reveal everything he knows about communist rule. (Hasan Oraltay/Bess
Brown)

NATO DELEGATION VISITS KYRGYZSTAN. A group of high-level NATO
officers began a four-day visit to the capital of Kyrgyzstan,
Bishkek, on 16 July, Kyrgyztag-TASS reported. The group will
study Kyrgyzstan's national security policy, its defense agreements,
and will visit military installations, the parliament, and the
State Committee on Defense. The main purpose of the visit is
to aid the CIS in the creation of a multi-national "peace-making"
force, agreed to by the foreign and defense ministers of the
CIS states at their meeting in Tashkent on 16 July. (Cassandra
Cavanaugh)

ALTERNATIVE SERVICE APPROVED IN TURKMENISTAN. Interfax reported
on 16 July that Turkmen President Saparmurad Niyazov has issued
a decree approving alternative service for military conscripts
who have a valid reason for refusing military service. The alternative
service is to involve labor on important construction sites in
Turkmenistan. (Bess Brown)

MINORITY LANGUAGE TEACHING IN TRANSCARPATHIA. Beginning with
the new school year, Slovak will be added to the list of languages
in which national minorities in Transcarpathia will be taught,
Pravda Ukrainy reported on 7 July. Pupils in the region already
have the opportunity to be taught in Hungarian, Romanian, and
German. Support will be provided by Slovak authorities, who have
agreed to provide textbooks. (Roman Solchanyk)

MOLDOVAN-ISRAELI CONTACTS. Two Israeli diplomats visiting Chisinau
were received by Moldovan parliamentary leaders on 15 July, Moldovapres
reported. The Moldovans expressed the wish that Israel contribute
military observers to a possible international peacekeeping force
in eastern Moldova and that it participate in the international
commission that Moldova proposes to be established in order to
oversee the future withdrawal of Russia's 14th Army. The Israeli
diplomats were cited as "expressing gratitude to Moldova's leadership
for the good will shown toward the Jewish community in assisting
the preservation of its identity, language and culture," and
expressing concern over the situation of Jews in the "Dniester"
area who "face persecution and forced recruitment in the separatist
military units." (Vladimir Socor)

CENTRAL AND EASTERN EUROPE

HAVEL RECEIVES 1968 LETTERS CALLING FOR SOVIET INVASION. On 16
July Russia handed over to Czechoslovakia several documents related
to the Soviet-led invasion of Czechoslovakia in 1968, CSTK reports.
Czechoslovak President Vaclav Havel revealed that two of the
documents were letters written in 1968 inviting the Soviet Union
to invade Czechoslovakia. One letter was signed by top Czechoslovak
communist officials Vasil Bilak, Alois Indra, Drahomir Kolder,
Oldrich Svestka, and Antonin Kapek. The other was signed only
by Kapek. Havel handed the letters over to the Czechoslovak prosecutor
general, who said that Bilak, the only one of the five officials
who is still alive, could face up to ten years of imprisonment.
Bilak alleges that the letters, together with his signature,
were forged. (Jiri Pehe)

BRITAIN WARNS CROATS, SERBS AGAINST CARVING UP BOSNIA. Foreign
Secretary Douglas Hurd called for a political settlement to end
the fighting, with guarantees for minority rights but without
any division of the embattled republic's territory. Britain is
the current EC chair, and Hurd was speaking in Zagreb on 16 July,
Western news agencies report. He turned down a proposal to set
up safe havens for refugees in Bosnia on the model of Kurdish
enclaves in Iraq, apparently feeling that no such safety could
be guaranteed. Elsewhere, the BBC quoted UN officials that the
number of refugees and people displaced by the war in the former
Yugoslavia stands at over 3 million. Finally, international media
report Bosnian Serbian leader Radovan Karadzic's latest "peace
offer," including a cease-fire in Goradze, but note that Serbian
forces continue to shell the besieged Muslim town, which is filled
with refugees. (Patrick Moore)

ROMANIA'S PRESIDENT ON YUGOSLAV EMBARGO. At a press conference
broadcast on Radio Bucharest on 16 July, President Ion Iliescu
denied allegations that Romania has broken the UN embargo on
Yugoslavia. He pointed out that the Danube is an international
waterway and Romania can control only its own part of it. Iliescu
reiterated Romania's pledge to respect the embargo. (Michael
Shafir)

ISLAMIC LEADER LAMBASTES SERBIAN CHURCH. In an often bitter interview
with Vecernji list on 16 July, Hadji Jakub Effendi Selimoski
blamed the Serbian people and their Orthodox Church for standing
by while 40,000 Muslims were killed in Bosnia. He noted that
200 mosques have been destroyed and 250 more badly damaged out
of a total of 2,000 buildings belonging to the Islamic community.
Selimoski charged that "what's going on in Bosnia-Herzegovina
is not a war, but a massacre of the Muslims," and warned Europe
that the Muslims would regard those who do not help them to the
fullest as "accomplices of the aggressor, to put it politely."
He met earlier for an hour and a half with Pope John Paul II,
and the two "had identical positions about the aggressor," but
a meeting with the Serbian patriarch has yet to materialize.
The Islamic leader compared alleged current Serbian massacres
of Muslim children to similar incidents in World War II, and
in a reference to alleged forced conversions said: "you must
realize that you cannot make a Christian out of a Muslim." (Patrick
Moore)

PANIC IN PARIS. Milan Panic, prime minister of the rump Yugoslav
federation, is to meet with French President François Mitterrand
on 17 July in Paris, according to Tanjug. The two will discuss
a French proposal to convene an international peace conference
to deal with the crisis in Bosnia-Herzegovina. Meanwhile, in
Belgrade, Reuters reports that the announcement of the members
of Panic's new cabinet this week is drawing mixed reviews. Panic
himself has taken on the post of defense minister, and several
posts have gone to allies of Serbian President Slobodan Milosevic,
drawing harsh rebukes from the opposition Serbian Renewal Movement.
Other observers, however, foresee an attempt by Panic and Yugoslav
President Dobrica Cosic to ease Milosevic out of office. (Gordon
Bardos)

ETHNIC HUNGARIAN IN YUGOSLAV CABINET. On 15 July Radio Budapest
interviewed Tibor Varadi, new minister of justice in the Panic
government. Varadi, who was a candidate of an opposition party
in the latest Yugoslav election, is an international law expert.
On his first day in office he began drafting a law to exonerate
all those who refused military service during the Yugoslav conflict
or had gone abroad to escape the draft. Varadi's move can be
expected to be unpopular and is likely to plunge him into immediate
controversy. (Alfred Reisch)

CZECHOSLOVAK PARLIAMENT APPROVES GOVERNMENT PROGRAM. A program
of the Czechoslovak federal government, presented by Prime Minister
Jan Strasky, was approved by the Federal Assembly on 16 July,
Czechoslovak media report. The program, which was criticized
by some deputies as being too provisional, calls for the Czech
and Slovak republican parliaments to reach an agreement on the
future of Czechoslovakia by 30 September. Until the country's
fate is decided, the government will maintain control over foreign
affairs, finance, defense, transport and communications, economic
policy, and environmental affairs. (Jiri Pehe)

SLOVAK PREMIER LASHES OUT AT CZECHS, . . . Speaking on Slovak
Radio on 15 July, Slovak Prime Minister Vladimir Meciar said
he was stunned by a confidential report of the Czech government
discussing preparations for Czechoslovakia's breakup. Meciar
said that the plan provides for economic and social oppression
of Slovaks and forced evacuation of Gypsies and Slovaks from
the Czech Republic when Slovakia becomes independent. Former
Czech premier Petr Pithart, whose government authored the document,
said that the report was just a study of all possible scenarios
arising from the collapse of the federation. He said the report
does not discuss any measures for forced evacuation but it mentions
the possibility of a large exodus of Gypsies and other minorities
from Slovakia. On 16 July federal deputy prime minister Antonin
Baudys said that the previous Slovak government had prepared
a similar study. (Jiri Pehe)

. . . WARNS HUNGARIAN PARTIES. Before the vote that saw 104 of
the Slovak parliament's 135 deputies present come out in support
of his government program, Meciar had strong words for the 14
ethnic Hungarians deputies who refused to support his government
program, Radio Budapest reported on 15 July. The state alone
and not the deputies can represent the minority, he said. Meciar
feels Slovaks are worried about the minority's demand for autonomy,
and suspects Budapestmight be trying to meddle in Slovak politics.
Adding that he was not accusing the minority deputies of acting
at Budapest's command, Meciar warned Hungarians "not to provoke
artificial tension in the region." (Alfred Reisch)

RUSSIAN-HUNGARIAN TROOP AGREEMENT NEAR. A Hungarian government
spokesman said on 16 July that compensation issues regarding
the Soviet troop withdrawals have been resolved, Hungarian Radio
reports. The Russian and Hungarian foreign ministers will sign
the agreement shortly, stipulating that both sides are giving
up their request for compensation. The Russians seek payment
for installations left behind, while Hungary wants compensation
for the environmental damage, about $800 million, left behind.
The agreement was achieved in principle by Prime Minister Antall
and President Yeltsin at the CSCE summit in Helsinki. (Karoly
Okolicsanyi)

TENSION WITH RUSSIAN MILITARY IN LITHUANIA CONTINUES. On 16 July
Lithuanian Deputy Prime Minister Zigmas Vaisvila sent a telegram
to Lt. Gen. Fedor Melnichuk, first deputy commander of the Northwest
Group of Forces (NWGF), asking that the Russian military exercises
in Lithuania planned for the second half of July be canceled
since they are a violation of Lithuania's sovereignty, Radio
Lithuania reports. The commander of the Russian garrison in Vilnius,
Col. Valerii Frolov, sent a message to the Lithuanian National
Defense Minister stating that after the deaths of Russian soldiers
in Armenia and attacks on Russian military vehicles in Estonia
he had received orders from the NWGF that all Russian soldiers
traveling on Lithuanian roads should be armed. (Saulius Girnius)


BRIDGE OVER THE RIVER NARVA. With the help of three armored boats,
Russian border officials in Ivangorod on 15 July began full-time
patrols of the Narva River, which forms the Estonian-Russian
border in northeastern Estonia. Estonian border officials told
BNS the next day that relations with their Russian counterparts
are good, and that commanders from both sides meet each morning
to discuss potential problems. Russian authorities in Ivangorod
began charging Estonians wishing to visit Russia 25 rubles for
an entry permit. Last week, Russian officials at the Estonian-Pskov
border began charging Estonian visitors $10 for entry. (Riina
Kionka)

ILIESCU: EBRD WOULD BACK RUSSIAN WITHDRAWAL FROM MOLDOVA. At
a press conference on Radio Bucharest, Romania's president Ion
Iliescu said that the European Bank for Reconstruction and Development
is willing to "financially back the withdrawal of the 14th army
from the republic of Moldova". Romania was also willing to participate
in covering the costs for building new homes for the 14th army's
soldiers, he said. Iliescu added that he had discussed the issue
with both EBRD president, Jacques Attali, and with Russian president
Boris Yeltsin. Iliescu said the current military conflicts in
the "Euro-Atlantic-Asian area" are caused not by ethnic enmities
but by the presence of foreign troops on the territories of independent
states. (Michael Shafir)

TRAVEL BAN ON TOP IOC OFFICIAL. Officials of the International
Olympic Committee on 16 July condemned a foreign travel ban by
Bulgaria on Ivan Slavkov, a member of the IOC and head of its
Bulgarian branch, Reuters reported. On the same day, IOC president
Juan Antonio Samaranch asked the Bulgarian government to lift
the restrictions. Slavkov was on his way to chair an IOC finance
meeting when his passport was withdrawn. Prosecutor General Ivan
Tatarchev said the ban was linked to the ongoing trial against
former Communist Party leader Todor Zhivkov--Slavkov's father-in-law.
(Kjell Engelbrekt)

SECOND DAY OF SOFIA TRANSPORT STRIKE. On 16 July the Bulgarian
capital experienced a second day of an almost total public transport
strike. More than 100 military and other buses helped commuters
to get to work while a sharp increase in private vehicle usage
caused serious traffic jams. BTA reports indicate that trade
unions are coming under pressure to halt the strike. Several
public transport companies have filed suits against the organizers
of the strike and the government has appealed to transport workers
to return to their jobs. However, Bulgarian miners have promised
to lay down their tools for one hour on 17 July in solidarity
with the transport workers. (Kjell Engelbrekt)

POLISH GOVERNMENT HOLDS TALKS WITH MINERS. The strike wave in
Upper Silesia has hit fourteen coal mines so far, PAP reported
on 16 July. Although the government is hosting talks on possible
forms of assistance to heavily indebted mines, the prime minister's
office issued a statement saying that "the government is not
a side in conflicts over pay." These should be hashed out between
unions and management. The government warned directors not to
promise pay raises they cannot afford. Mine directors who had
ended strikes by granting strikers' demands admitted that they
had no idea where to find money to cover the raises. They seemed
to expect a government bailout. Meanwhile, Labor Minister Jacek
Kuron refused on 16 July to hold talks with the Solidarity 80
unionists occupying the Katowice headquarters of the state coal
industry. "A government delegation cannot meet with people who
are committing a crime," Kuron said. Meeting with Prime Minister
Hanna Suchocka on 16 July, World Bank representative Ian Hume
offered $150-200 million to help restructure Polish mining. (Louisa
Vinton)

POLISH INVESTMENT AGENCY BEGINS WORK. The State Foreign Investment
Agency began operations on 16 July in Warsaw. The agency is designed
to promote investment in Poland, help foreign capital find suitable
partners, and eliminate the bureaucratic snarls that have discouraged
would-be investors. Agency director Bogdan Chojna told a press
conference that management training is also a priority. According
to the Polish statistical office, nearly 7,000 joint ventures
are now active in Poland, with foreign capital of more than $740
million. (Louisa Vinton)

INDUSTRIAL PRODUCTION DECLINES IN LATVIA. During the first half
of 1992 industrial production was down 30.9% of what it was for
the same period in 1991, BNS reported on 16 July. The largest
declines were registered in the metal industry (down 54%) and
machinery, paper, food and forestry industries (down 31.5%).
Production has declined in 430 of 614 industries in Latvia. At
the same time, the price of finished products has increased 11-fold,
making them much more difficult to market. In June 82.2% of Latvian
production had still not been sold. (Dzintra Bungs)

[As of 1200 CET]