No. 196, 12 October 1992

SUCCESSOR STATES TO THE USSR

FIGHTING CONTINUES IN ABKHAZIA. Two Georgian civilians were killed
and three wounded when Abkhaz troops opened fire on a Georgian
helicopter on 11 October, ITAR-TASS reported. Abkhaz defense
ministry forces also claimed to have shot down a Georgian fighter-bomber
over northen Abkhazia. Speaking to reporters in Tbilisi, Georgian
State Council Chairman Eduard Shevardnadze cast doubt on his
participation in the meeting planned for 13 October between Russian
President Boris Yeltsin, Abkhaz Parliamentary Chairman Vladislav
Ardzinba and himself. (Liz Fuller)

SUMMIT PRODUCES MIXED RESULTS ON NUCLEAR WEAPONS CONTROL. CIS
Commander-in-Chief General Shaposhnikov on 9 October stated that
Belarus had concluded an agreement with Russia on nuclear weapons
control, while in Kazakhstan on 10 October Presidents Yeltsin
and Nazarbaev signed an agreement containing unspecified provisions
on nuclear weapons. Ukraine rejected Shaposhnikov's proposal
that Russia control all former Soviet nuclear weapons. Negotiations
between Ukraine and Russia over nuclear control are to take place
within the next month. The summit appears to have codified the
transfer of control over Russian, Belarussian, and Kazakh nuclear
weapons to the Russian Strategic Rocket Forces, with Shaposhnikov
retaining a role in mediating between the Russian and Ukrainian
defense ministries. The results of the summit were reported by
Interfax and Western news agencies. (John Lepingwell)

UKRAINIAN POSITION AT CIS SUMMIT. Ukraine's overall position
at the CIS summit in Bishkek was, according to President Leonid
Kravchuk, to develop exclusively as an independent state, Ukrainian
TV reported on 9 October. This was reflected in its refusal to
sign the agreement on setting up a consultative economic committee.
The Ukrainian delegation signed only five of the fifteen documents,
with numerous reservations and additions based on its unwillingness
to participate in any centralized structures. (Roman Solchanyk)


SIX CIS STATES TO CREATE COMMON BANK. Although the CIS states
could not agree on creating a supranational economic policy-making
body at last week's Bishkek summit, six of the countries have
decided to establish a common bank, The Los Angeles Times reported
on 10 October. The bank would initially settle interstate trade
payments, but later, according to Russian Central Bank Chairman
Viktor Gerashchenko, it would take on the functions of a central
bank controlling the issuance of currency and credit in the ruble
zone. The creation of such a supranational central bank is considered
an essential measure for achieving economic stability within
the ruble zone. The six states that have agreed to remain within
the zone are Russia, Kazakhstan, Uzbekistan, Belarus, Kyrgyzstan
and Armenia, according to Interfax on 9 October. (Erik Whitlock)


AKAEV ON CIS. In an interview carried by Reuters on 11 October,
Kyrgyzstan President Askar Akaev is quoted as saying that his
state could soon leave the CIS, which he described as a temporary
grouping. Akaev said the Commonwealth was needed to slow down
the negative consequences of the collapse of the Soviet Union,
but Kyrgyzstan felt it should cease to exist politically in the
near future. Economic links between the member-states should
be retained, however. Akaev said the four Central Asian republics
would have to rely on Russia for the foreseeable future to stop
their economies collapsing, but all would go their own way once
they could stand on their own feet. (Ann Sheehy)

PARLIAMENT APPROVES DRAFT LAW ON FORMING GOVERNMENTS. On 9 October,
the Russian parliament approved after a single reading a draft
law on how future governments would be formed. According to ITAR-TASS,
the draft revokes President Yeltsin's right to appoint the cabinet
of ministers directly. The draft gives the parliament the right
to approve the president's choice for prime minister. Parliamentary
commissions will have a final say in the selection of government
ministers. Some further revisions to the draft were suggested
at the parliamentary session on 9 October. The parliament will
return to discuss the draft later this week. (Vera Tolz)

FURTHER DELAY REQUESTED IN RUSSIAN DEBT REPAYMENT. Russian Minister
of Foreign Economic Relations Petr Aven told Interfax on 9 October
that at the end of October, Russia will probably ask for a two-month
delay in repaying its debt to Western creditor nations. (Many
observers feel that Russia will be unable to repay more than
a token share of its convertible-currency debt for the next three
to five years). Aven spoke of the difficulties involved. If,
for instance, the debt repayment deferred from 1992 is carried
over to 1993, then the total debt repayment due that year will
amount to some $40 billion. Yet, he predicted, Russia will have
a negative balance of payments in 1993 of some $4-5 billion.
(Keith Bush)

MANDATORY SALES OF HARD-CURRENCY EARNINGS DEFERRED. In what appears
to be a separate interview with Interfax on 10 October, Aven
said that Russia is not yet ready to introduce the mandatory
sales by state enterprises of 100% of their convertible currency
earnings. (Such a move was announced as "imminent" two weeks
ago and the call was repeated by President Yeltsin on 6 October).
The minister explained that, although such a measure is necessary,
it cannot be implemented at the present time because of the "full
absence of bank control over the outflow of currency to the West,"
and owing to "the wild fluctuations of the ruble [exchange] rate."
(Keith Bush)

FACE VALUE OF PRIVATIZATION VOUCHERS. The Russian parliament
adopted a resolution on 9 October to the effect that the state
must guarantee the face value of privatization vouchers for three
years, Interfax reported. (Their face value is 10,000 rubles,
but they were marked down to 6,100 rubles on the first day of
trading on 1 October on the Moscow stock exchange). The resolution
specified that a privatization check may be used to buy, among
other things, apartments and land. (Keith Bush)

PARLIAMENT AGAIN APPROVES RESOLUTION ON GOVERNMENT. The Russian
Supreme Soviet again passed a resolution criticizing the way
the government was implementing its economic reforms, Russian
news agencies reported on 9 October. On 8 October deputies approved
the resolution, but the vote was annulled after the voting procedure
was deemed improper. The resolution calls on the government to
present within one month a series of measures to combat the country's
economic crisis. It also gives the Russian central bank one month
to present a monetary stabilization plan. On 9 October, Komsomolskaya
pravda published an interview with the speaker of parliament,
Ruslan Khasbulatov, who said he was against the dismissal of
the Russian government at the present time. (Vera Tolz)

YAKOVLEV CONDEMNS CPSU AND PREESENT RUSSIAN AUTHORITIES. In a
45 minute address to the Constitutional Court on 9 October, former
Politburo member Aleksandr Yakovlev condemned both the ideology
and practicies of the Soviet communist party, which, Yakovlev
said, had always been based on violence and deception. There
were always reformers in the world communist movement, Yakovlev
said, recalling Valentin Plekhanov's dispute with Lenin, the
1968 "Prague Spring," and Gorbachev's perestroika. However, Yakovlev
noted, these reformers had always been in the minority, and their
reactionary opponents had always succeeded in crushing them.
The current Russian government is not entirely democratic either,
since it bears traces of "neo-Bolshevism," Yakovlev stated, recalling
how he had passed the police cordon to enter his office in the
Gorbachev Foundation only one day earlier. Yakovlev's speech
was broadcast on Russian TV during its report on the CPSU hearings
late last night. (Julia Wishnevsky)

COMMUNISTS HOLD CONFERENCE IN MOSCOW. Communists from twelve
former Soviet republics opened a conference in Moscow on 10 October
aimed at preparing for a restoration congress of the now-banned
Communist Party, Interfax reported. According to the agency,
252 delegates attended. The speakers at the gathering accused
the former CPSU leadership of treachery for allowing the party
to disintegrate. Some communists objected to the conference being
held at the present time. Co-chairman of the parliamentary group,
"Commmunists of Russia," Gennadii Sasenko, said he feared the
conference would have a negative effect on the current hearings
in the Russian Constitutional Court on the legality of Boris
Yeltsin's ban of the CPSU. (Vera Tolz)

POLTORANIN ACCUSES GORBACHEV FOUNDATION OF IMPROPRIETIES. In
an interview with Western correspondents on 10 October, Russian
Deputy Prime Minister Mikhail Poltoranin attempted to justify
the police seizure of the Gorbachev Foundation and the confiscation
of its property by claiming that it had leased out space on its
premises to make money in spite of its stated scholarly goals.
He also said that the foundation was "...a second Zurich, a Bolshevik
centre from which he [Gorbachev] watches to see how he can start
firing the Aurora guns at the present authorities to launch another
coup." Poltoranin promised to publish information about in inappropriate
leasing of space, which, he added, "smells of millions of rubles."
(Julia Wishnevsky)

RUSSIANS, CHINESE DISCUSS MILITARY COOPERATION. Russian Deputy
Defense Minister Andrei Kokoshin-the highest ranking civilian
in the Russian defense establishment-met with Chinese Defense
Minister Qin Jiwei in Beijing on 9 October. The ITAR-TASS account
of their meeting said the two officials announced their intention
to contribute to the further development of relations between
their two ministries "on the basis of mutual benefit and equality."
The report also said that Russo-Chinese working groups carried
out negotiations on military cooperation between the two countries.
(Doug Clarke)

CEREMONIAL ROLE FOR ADMIRAL CHERNAVIN. Admiral Vladimir Chernavin,
recently the commander-in-chief of the Soviet Navy, welcomed
military attaches on 9 October to a Moscow exhibit on the Russian
Navy in his new role as honorary president of the Naval Center.
Chernavin was quoted by ISAR-TASS as saying that the Russian
Navy was passing through a hard period "due to obvious reasons."
He added that Russia had always been a great sea power and would
always have a navy "worthy of its grandeur." Although Chernavin
had been the head of the interim CIS Navy following the breakup
of the Soviet Union, Admiral Feliks N. Gromov was appointed to
lead the Russian Navy in August of this year. Three of the four
former Soviet fleets have been claimed by Russia while the fourth-in
the Black Sea-is shared between Russia and Ukraine. (Doug Clarke)


RUSSIAN MILITARY OVERTURES TO THE UAE. Colonel General Vladimir
M. Semenov, the commander-in-chief of the Russian ground forces,
led a Russian military delegation that arrived in Abu Dhabi,
the capital of the United Arab Emirates (UAE) on 8 October. In
an ITAR- TASS account the following day, Semenov was quoted as
saying at that his first visit to an Arab country was a "friendly
business trip." He said that his delegation would draw up proposals
for promoting military cooperation between Russia and the UAE.
While the Gulf Arab states have long been dependent on Western
nations for their military equipment, Abu Dhabi reportedly ordered
a number of Russian infantry combat vehicles earlier this year.
(Doug Clarke)

UKRAINIAN STUDENTS' DEMANDS. Ukrainian students, who have set
up their a tent city in Kiev's central square, are demanding
Ukraine's immediate withdrawal from the CIS, a parliamentary
decision on new parliamentary elections in the spring of 1993,
and the naming of a new prime minister and government only after
the decision on parliamentary elections has been made, SR-Press
reported 11 October. (Roman Solchanyk)

GEORGIAN ELECTIONS. Georgia's Central Electoral Commission estimated
that about 65% of the electorate voted in parliamentary elections
on 11 October, Western agencies reported. No voting took place
in eight districts in northern Abkhazia occupied by Abkhaz troops,
in South Ossetia or in three raions in Mingrelia, which is a
bastion of support for ousted President Zviad Gamsakhurdia, thus
excluding some 10% of Georgia's population. Thirty-six individual
political parties plus three blocs representing a further eleven
are competing for 234 parliamentary seats on a mixed party-list/majority
basis. Eduard Shevardnadze, standing unopposed for the post of
parliament chairman, is expected to receive the minimum 30% of
the vote needed to win. (Liz Fuller)

MOLDOVA CONCERNED OVER RUSSIAN PEACEKEEPERS' BIAS. Major Trofim
Stefan, spokesman for the Moldovan side of the Joint Control
Commission supervising the peacekeeping troops in eastern Moldova,
told an RFE/RL correspondent that Moldova is concerned by the
Russian side's increasingly open bias in favor of the "Dniester"
insurgents. In violation of the ceasefire convention, the insurgents
maintain armed units and arms stockpiles in the disengagement
zone. They have seized by force the Moldovan prosecutor's office
and courthouse in Bendery, and have entrenched themselves in
several Moldovan villages around Bendery on the right bank of
the Dniester. The Russian peacekeepers openly condone these violations.
The Moldovan leadership, which has gambled on cooperation with
Russia in settling the conflict, is reluctant for political reasons
to publicize its growing concern over the Russian peaceekepers'
partiality. (Vladimir Socor)

CENTRAL AND EASTERN EUROPE

UN BANS FLIGHTS OVER BOSNIAHERZEGOVINA. International media
reported on 9 October that the Security Council adopted Resolution
781 banning all flights over Bosnia except UN flights engaged
in humanitarian missions. Only the Serbs have aircraft, and Serbian
planes reportedly had been shadowing UN flights to sneak up on
Bosnian and Croatian positions. The resolution did not, however,
specify any penalties or means of enforcement. The BBC on 10
October quoted Bosnian radio as claiming that the Serbs were
continuing to attack Gradacac and other northern Bosnian towns
by air in defiance of the ban. (Patrick Moore)

CONFUSION OVER DEVELOPMENTS IN NORTHERN BOSNIA. Gradacac, Brcko,
Orasje, and other centers came under renewed Serbian attack in
an apparent effort to consolidate the land corridor across northern
Bosnia linking Serbia with Serbheld enclaves in Bosnia and Croatia,
the BBC reported on 10 and 11 October. Serbian sources denied
that they were using air power in defiance of the UN ban, Reuters
reported on 10 October. Elsewhere, speculation continues that
the Croat surrender of Bosanski Brod on 6 October might have
been part of a CroatianSerbian deal to enable each side to consolidate
its holdings. According to this theory, Croatian and international
media said, current fighting around Gradacac and Orasje is aimed
at providing an escape route for Croat troops which have been
defending Gradacac. On 11 October, Croatian President Franjo
Tudjman told the VOA that he continues to favor setting up ethnically
based cantons as the best political arrangement for Bosnia, but
Muslim critics charge that cantonization after months of ethnic
cleansing would be tantamount to partition. (Patrick Moore)

SECOND ROUND IN ROMANIA'S PRESIDENTIAL ELECTIONS. Romanians went
to the polls on 11 October to elect the country's president.
Ion Iliescu, the candidate of the Democratic National Salvation
Front, who was backed by 47.34% of the voters in the first round
on 27 September, faced the candidate of the Democratic Convention
of Romania, Emil Constantinescu, who was then endorsed by 31.24%.
Western agencies reported that an unofficial exit poll conducted
by the ProDemocratia association at 222 voting stations indicated
Iliescu would win the election with approximately 58% of the
votes and 42% of the vote would go to Constantinescu. According
to the Central Electoral Bureau, participation in the elections
was 75.6%, slightly below the 76.2% voter turnout on 27 September.
(Michael Shafir)

SEJM ACCEPTS GOVERNMENT ECONOMIC PROGRAM. Prime Minister Hanna
Suchocka survived another parliamentary test on 9 October when
the Sejm voted, 171 to 159 with 8 abstentions, to send the government's
economic policy guidelines for 1993 to committee. The vote followed
thirteen hours of acrimonious debate, during which even the coalition
parties criticized the government's program. In her opening speech,
Suchocka said that Poland could achieve steady economic growth
on certain conditions: if wage controls were retained, government
spending on social benefits was limited to a minimum, and resources
were channeled to investment rather than consumption. She stressed
the need to assess Poland's situation honestly. "The fact that
we are entering the path of economic growth does not mean that
we can expect rapid improvement in living standards," she concluded.
(Louisa Vinton)

POLAND REVISES BUDGET: BIGGER DEFICIT, HIGHER TAXES, SPENDING
CUTS. Meeting on 10 October, the government agreed on revisions
to the 1992 budget that would raise the deficit from the planned
level of 65.5 trillion zloty ($4.7 billion) to almost 82 trillion
zloty ($5.9 billion). Also proposed were acrosstheboard spending
cuts of 3.5%, increased sales taxes, and reduced indexing of
pensions to inflation. Income taxes on the highest earners would
rise to 50%. An additional 6% tax would be imposed on imports
to protect Poland's balance of payments. "If the Sejm does not
accept these revisions," Finance Minister Jerzy Osiatynski warned,
"we won't have money for anything but wages and pensions." Although
the IMF has signaled initial acceptance of the government's plans,
fierce criticism of planned spending cuts and new taxes is to
be expected from the opposition parties. (Louisa Vinton)

CZECH AND SLOVAK GOVERNMENTS AGREE ON CUSTOMS UNION. The two
republican governments met on 10 October near Prague to discuss
the postCzechoslovak relationship between the Czech Republic
and Slovakia. According to news agencies, Czech and Slovak Prime
Ministers Vaclav Klaus and Vladimir Meciar agreed to introduce
a customs union between the two republics and, at least initially,
keep a common currency. According to a spokesman for the Slovak
government, the two Prime Ministers discussed the possibility
of keeping a single currency until 30 June 1993. Meciar said
after the talks that trade exchanges between the two republics
would continue unhindered after the dissolution of the country.
Klaus made it clear that the setting up of a common market seemed
to be "beyond our technical, organizational, and legislative
possibilities" and that the republics would adopt only partial
accords on labor and capital movement. Representatives of the
two governments also said that while there are no territorial
demands between the two republics, the issue of citizenship remains
controversial. The Slovaks have proposed dual citizenship which
Prague has categorically rejected. All agreements between the
governments must be approved by the respective republican parliaments.
(Jan Obrman)

SERBIA'S REFERENDUM ON EARLY ELECTIONS. Radio Serbia reported
on 11 October that more than half of Serbia's eligible voters
cast ballots in a referendum to determine whether a constitutional
amendment should be adopted to allow for early general and presidential
elections. Results are expected on 13 October. More than 50%
of Serbia's 7 million voters must approve the referendum if elections
are to take place by the end of December. A poll published by
the Belgrade daily Politika on 7 October showed 68% of those
questioned favored early elections. Current law stipulates that
the mandate of Serbia's parliament expires in 1994 while President
Slobodan Milosevic's runs out in 1995. The referendum does not
effect the scheduling of elections either at the federal level
or in Montenegro. Milan Panic, Prime Minister of rump Yugoslavia
told reporters Serbia must approve the amendment if the republic
wants the UNimposed sanctions lifted. He added that if the voters
rejected early elections he would "find another way to have the
elections." Belgrade's statecontrolled media largely ignored
the event until this weekend. According to Radio Croatia, Kosovo's
Albanian majority boycotted the balloting. (Milan Andrejevich)


CARDINAL GLEMP IN ROMANIA. The Polish primate, cardinal Glemp,
arrived in Bucharest on 9 October for a threeday visit. Glemp,
who is the guest of the RomanCatholic bishop of Iasi, Petru
Gherghel, participated in services in several Catholic churches
in the Suceava county , met representatives of the Polish minority
in Romania, and visited Iasi. Radio Bucharest said Prime Minister
Theodor Stolojan and Foreign Affairs Minister Adrian Nastase
would receive the Polish primate before his departure. (Michael
Shafir).

SLOVAK FOREIGN MINISTER DISMISSES COMPLAINTS OF ETHNIC HUNGARIANS.
Slovak Foreign Minister Milan Knazko was quoted by CTSK on 9
October as having said after a meeting with French Foreign Minister
Roland Dumas in Paris that he had never seen a specific example
of abuse of the Hungarian minority in Slovakia. Knazko reportedly
told Dumas that "increasing nationalism from Budapest" had caused
members of Slovakia's ethnic minorities to protest "some sort
of fictitious violations of their rights." He said that minority
demands in Slovakia were aimed at the destruction of the civil
society and the state. (Jan Obrman)

WEU FACTFINDING MISSION IN ROMANIA. A delegation of the West
European Union (WEU) arrived in Romania on 11 October on a factfinding
mission focusing on Romania's compliance with the UN embargo
on trade with the rump Yugoslav state, Western agencies reported.
The delegation will spend five days in Romania speaking with
government officials and touring the common border with rump
Yugoslavia, as well as the 200 kilometer stretch of the Danube
river that runs through the country. (Michael Shafir).

BULGARIA REGRETS EC'S TOUGHENING. Bulgaria's negotiations toward
an association agreement with the European Community are being
hampered by individual EC states' economic problems, Bulgarian
officials told Reuters on 11 October. Deputy Prime Minister and
chief negotiator Ilko Eskenazi said some EC members were "extremely
jealous" regarding their positions in sectors such as textile,
agriculture and metals, the areas in which Bulgaria is considered
to be most competitive. Last Tuesday the EC cut its original
offer on farm imports, a decision which contradicted a June declaration
speaking about the need for boosting economic ties with Eastern
Europe. (Kjell Engelbrekt)

LATVIAN DEFENSE MINISTRY PROTESTS RUSSIAN FLIGHTS. During the
first 8 days of October Russian military aircraft based in Latvia
violated Latvia's flight regulations 18 times, an official of
the Latvian Defense Ministry told Radio Riga on 9 October. The
Latvian Foreign Ministry had sent protest notes over previous
flight violations and he pointed out that the attitude of the
Northwestern Group of Forces leadership seems to be hardening
toward Latvia as shown by recent statements saying that they
would abide only by the results of RussianLatvian negotiations,
not the resolutions of the Latvian authorities. (Dzintra Bungs)


NWGF OFFICERS: MORATORIUM ON WITHDRAWAL FROM THE BALTICS. Col.
Vitalii Kandalovsky told Diena of 9 October that the Coordination
Council of the Baltic Officers Organizations has called upon
the Russian government to suspend the pullout of troops from
the Baltic States. The organization represents both active Russian
and retired Soviet officers in the Baltic States. Kandalovsky
said that his organization was dissatisfied with the unresolved
"social problems" awaiting the officers when they are transferred
to Russia and with the way the Russian army property is being
sold private individuals. The organization has also asked the
Russian court to examine the validity of the accords on troop
withdrawal from Lithuania. While in Riga, Russian Deputy Foreign
Minister Vitaly Churkin commented on the officers' declaration,
saying the government decides on troop pullouts, and that public
organizations could merely express their views, BNS reported
on 10 October. (Dzintra Bungs)

ESTONIA REJECTS RUSIAN CONDITIONS FOR TROOP WITHDRAWAL. Ministry
official told reporters on 10 October that Russia is breaking
its promises by demanding that troop withdrawals be linked to
human rights. Toivo Klaar, chief of the MFA Political Department,
told ETA that Russia had repeatedly assured Estonia that withdrawals
were not linked to Estonia's treatment of its substantial Russian
population. Last week, Russian President Boris Yeltsin said the
forces would not be withdrawn until Russian residents' rights
were guaranteed. Estonia maintains that such guarantees are already
in place. (Riina Kionka)

GASOLINE SALES STOPPED IN LITHUANIA. On 10 October sales of gasoline
to private and state motor vehicles in Lithuania were stopped
except for ambulances, police, firemen, prosecuting bodies, National
Defense Ministry, food delivery, and some other special services,
Radio Lithuania reports. The sole exception will be six hardcurrency
stations operated by the LithuanianFinnish joint venture "Litofinn
Service" that will sell a liter of gasoline for $.82 and of diesel
fuel for $.62. The move is unlikely to halt all vehicle traffic
since many individuals, learning from the Soviet economic blockade
in 1990, have stored gasoline in their garages. (Saulius Girnius)


HUNGARIANAUSTRIAN DEPORTATION AGREEMENT. Hungarian and Austrian
Interior Ministers signed a deportation agreement in Salzburg
on 10 October, Hungarian radio reported. The agreement had been
sought by Austria, but Hungary could not sign before it had similar
agreements with its other neighbors. An agreement was recently
concluded between Hungary and Romania. Both agreements stipulate
that illegal immigrants and refugees can be sent back to the
country of their origin. (Karoly Okolicsanyi)

BULGARIAN SCHOOL STRIKE ENDS. After a oneweek strike that virtually
paralyzed Bulgarian schools, teachers' unions on 10 October announced
they had struck a deal with government negotiators. According
to Bulgarian and Western agencies, an agreement was reached through
"mutual concessions." Although no details have yet been released,
reports say teachers will receive a substantial salary increase.
(Kjell Engelbrekt)

MACEDONIAN DENAR DEVALUED. The parliament of the Republic of
Macedonia, meeting in extended session on 9 October, devalued
its currency, the denar, by 67%, reports an RFE/RL correspondent
in Skopje. The measure, intended to restore economic stability
and save the largely successful antiinflationary program put
in place on 26 April 1992. The program became necessary as a
result of the legislature's July decision, made under pressure
from the trade unions, to allow up to 50% wage hikes, thus initiating
a new cycle of inflation. (Duncan Perry)

[As of 1200 CET] Compiled by Hal Kosiba & Anna Swidlicka