A host is like general: calamities often reveal his genius. - Horace
RFE/RL Daily Report

No. 230, 01 December 1992





SUCCESSOR STATES TO THE USSR

RUSSIAN CONGRESS OF PEOPLE'S DEPUTIES OPENS. Despite an air traffic
controller strike affecting 57 of 130 regional airports, most
of the deputies have arrived at the opening session of the Seventh
Russian Congress of People's Deputies in the Kremlin, ITAR-TASS
reported on 1 December. One of the most controversial debates
at the Congress will concern the extension of President Boris
Yeltsin's special powers, which have expired. Hardliners, who
control about one third of the Congress, have promised to block
the extension of these powers. The outcome of the Congress will
likely be determined by the ability of liberals and centrists
to develop a joint policy and a coalition government. Economics
Minister Andrei Nechaev said that it was conceivable that the
entire cabinet would offer its resignation to limit attacks on
Yeltsin. (Alexander Rahr)

CONSTITUTIONAL COURT RULINGS ON THE CPSU. The Russian Constitutional
Court ruled on 30-November that President Yeltsin acted constitutionally
in banning the executive bodies of the Communist Party, Western
and Russian news agencies reported. But the court said he did
not have the right to ban local Party organizations. The Court
also said Yeltsin had the right to take away state property under
the Party's control, but did not have the right to take away
property whose ownership was not clear without a decision by
the Court of Arbitration (the country's business court). The
Constitutional Court also said it could not make a ruling on
the government's contention that the CPSU itself was unconstitutional,
because the CPSU in fact was not a political party but a "state
within a state." (Vera Tolz)

RESPONSE TO CONSTITUTIONAL COURT RULINGS. Both the presidential
side at the Constitutional Court and Communists have claimed
victory following the announcement of the Court's rulings. The
head of a group of presidential advisers, Gennadii Burbulis,
said that by recognizing the constitutionality of Yeltsin's decree
banning the CPSU, the Court has made an historic decision. Egor
Ligachev, the CPSU's former ideologist, said that the Court's
ruling that Yeltsin should not have banned the Party's local
cells would allow the Party to "revive and unite," Western and
Russian agencies reported. Some analysts suggested that the Court
deliberately announced its decision on the eve of the Congress
of People's Deputies, because its judges want to have a direct
influence on Russian politics, an allegation denied by court
chairman Valerii Zorkin. The chairman also stressed that the
court had not been under any pressure from the Russian government
before it passed the verdict, ITAR-TASS reported. (Vera Tolz)


CONSTITUTIONAL COURT DELAYS HEARINGS ON BAN ON NATIONAL SALVATION
FRONT. The Russian Constitutional Court will delay hearings on
President Yeltsin's banning of the National Salvation Front because
of the start of the Congress, ITAR-TASS reported on 30 November.
Liberals fear that after the decision of the Constitutional Court
granting Communists the right to reunite under a different name,
former Communists may make an attempt to use the National Salvation
Front to resist Yeltsin if the Constitutional Court also declares
the ban of the front illegal. (Alexander Rahr)

RUSSIAN PRIVATIZATION PROGRAM FOR 1993 APPROVED. The Russian
Cabinet of Ministers approved on 30 November a program for the
privatization of state and municipal enterprises in 1993, ITAR-TASS
and Interfax reported. The value of privatized property sold
for vouchers in 1993 is expected to reach 1.5 trillion rubles.
Sectors of industry hitherto excluded will be privatized, including
enterprises in the military-industrial complex, the fuel and
energy sector, transportation, media, and in the wine, vodka,
and tobacco industries. The program will be amended and then
submitted to the parliament on 4 December. (Keith Bush)

CREDITS FOR PRIVATIZED ENTERPRISES. President Yeltsin has issued
a decree "On the Prohibition of Discrimination Against Privatized
Enterprises in the Rendering of State Financial Aid," Interfax
reported on 30 November. This authorizes the extension of government
credits to privatized enterprises on the same terms as for state
enterprises, thus providing a more level playing ground in competition
between the state and private sectors. (Keith Bush)

YELTSIN TO CHANGE DECISION ON EGOR YAKOVLEV. President Yeltsin
told representatives of the Russian media on 30 November that
Egor Yakovlev will either be appointed information minister instead
of Mikhail Poltoranin or chairman of a reorganized Ostankino
broadcasting company. This information was provided to an RFE/RL
correspondent by Izvestiya chief editor Igor Golembiovsky. Yakovlev
was sacked by Yeltsin as Ostankino chairman last week. Ostankino,
which provides Radio and TV services, will be reorganized into
separate radio and TV operations, Golembiovsky said. Yeltsin
also reportedly told the meeting of media representatives that
the formulation of his decree on Yakovlev's dismissal was incorrect
and would be changed. The decree, which accused Yakovlev of "serious
errors" concerning broadcasting policy, provoked strong criticism
on the part of Russian journalists and politicians, who spoke
in defense of Yakovlev. (Vera Tolz)

KALUGIN, ZHIRINOVSKY, GDLYAN SIGN RECONCILIATION AGREEMENT. Eighteen
small political parties and organizations identifying themselves
as the "New Russia" group have signed an agreement on "civil
peace and accord," Russian TV reported on 27-November. Those
signing included former KGB general and co-chairman of "Officers
for Democracy," Oleg Kalugin; the leader of Peasant's Party,
Yurii Chernichenko; the leader of Liberal Democratic Party (an
extreme right-wing party), Vladimir Zhirinovsky; and the leader
of People's Party of Russia, Telman Gdlyan. The document, which
the signatories called a "pact on civil reconciliation," states
that "the ghost of civil war and the suffering of Russia" have
compelled them to overcome their political differences. According
to the joint document, the parties of "New Russia" promise not
to form paramilitary units and to refrain from inciting violence.
(Victor Yasmann)

RUSSIAN NATIONALISTS IN CRIMEA CALL FOR MOSCOW'S SUPPORT. Ukrainian
Radio reported on 30 November that around 200 people held a public
meeting in Simferopol in Crimea at which they issued an appeal
to the governments of the CIS and to the United Nations asking
them to protect Crimea's Russians from "Ukrainian nationalism."
Supporters of the Russian ultra-nationalist leader Zhirinovsky
are reported to have held up a large map of "greater Russia,"
which included Poland, Finland and Alaska. Ukrainian Radio added
that leaders of the Russian movement in Crimea have gone to Moscow
to seek support from the participants in the Russian Congress
of People's Deputies. (Bohdan Nahaylo)

TATARSTAN PRESIDENT REJECTS CRITICISM OF NEW CONSTITUTION. On
30-November, Tatarstan President Mintimer Shaimiev rejected criticism
of the new Tatarstan constitution voiced earlier in the day by
the leaders of two Russian political groups: Russian Vice-President
Aleksandr Rutskoi of the Free Russia Party and Nikolai Travkin
of the Democratic Party of Russia. Shaimiev told an RFE/RL correspondent
by telephone that there was no reason why the Tatarstan constitution
should conform to the present Russian constitution when Russian
leaders themselves said that their own constitution was outdated.
According to Interfax, the statement by Rutskoi and Travkin,
which was distributed at the session of the Tatarstan parliament,
maintained that the new constitution meant Tatarstan's withdrawal
from the Russian Federation. The parliament had been asked by
the Russian parliament not to bring the new constitution into
force but deputies approved in principle a bill to do this. (Ann
Sheehy)

RUSSIAN CRITICISM OF ESTONIAN, LATVIAN HUMAN RIGHTS POLICIES.
Participants at the 28-November hearings of the Human Rights
Commission of the Russian Supreme Soviet criticized the human
rights situation in Estonia and Latvia. Although the criticism
was wide ranging, it tended to be vague and misleading. Sergei
Zotov, head of the Russian delegation for talks with Latvia on
troop withdrawal, once again objected to the process of granting
citizenship in Latvia and Estonia, claiming that it conflicts
with internationally recognized acts. Zotov failed to note that
Latvia still has not adopted a law on citizenship and naturalization.
Chairman of the Supreme Soviet's defense and security committee
Sergei Stepashin indicated that Russia's leadership links "neither
officially nor unofficially" the withdrawal of Russian troops
from the Baltic States with the human rights observance there,
Baltfax reported on 28 November. (Dzintra Bungs)

RUSSIA TO EXPAND ARMS SALES. Russian Minister of External Economic
Relations Petr Aven told parliament on 30 November that the country
intends to promote arms sales vigorously, but only on a hard-cash
basis, Interfax reported. Arms exports to Eastern Europe, Vietnam,
and Cuba have been sharply reduced. The main recipients of Russian
arms in 1992-93 would be India, China, and Iran, with the possibility
of sales to Taiwan and Malaysia. In 1991, according to specialists
cited by Interfax, Russia exported arms worth $7.8 billion, but
more than $5-billion of this was either given away or sold on
low- interest credits. It is thought that this year's sales could
exceed $3 billion. Interfax reported a defense ministry official's
statement that Russia weapons plants had more than 200 combat
aircraft and around 1,000 modern tanks for immediate sale. (Keith
Bush & Doug Clarke)

IRAN CONFIRMS PLANS TO BUY TWO MORE RUSSIAN SUBS. Reuters reported
on 30-November that the commander of the Iranian navy, Rear Admiral
Abbas Mohtaj, has confirmed plans to purchase two more Kilo class
diesel submarines from Russia. He did not specify when the additional
submarines would be delivered. Mohtaj claimed that each submarine
cost $450 million, implying a total sum of over $1-billion. Previous
Western estimates have placed the total package cost at approximately
$600-$750 million. The Baltimore Sun on 29 November reported
that the second submarine had been launched at St. Petersburg
in mid-October, and is presumably being fitted out. (John Lepingwell)


LAW ON MILITARY SERVICE PASSED. On 27-November the Russian Supreme
Soviet passed the law "On Military Service and the Armed Forces,"
according to an Interfax report of the same day. The law sets
out the terms of military service for the Russian federation,
and reportedly attempts to reverse the rapid decline in draft
turnout that has sapped the Russian army of manpower. Reports
did not indicate whether the law removed the draft deferment
for university students, which the Ministry of Defense has been
claiming allows the best qualified potential conscripts to avoid
military service. The law does, however, create the new rank
of Brigadier General, in accordance with the transition to a
brigade and corps structure within the army. (John Lepingwell)


UKRAINE FORMS SPECIAL COMMISSION TO INVESTIGATE FLEET. The Ukrainian
defense ministry press bureau announced on 27 November that the
ministry had formed a special commission to investigate "instances
of illegal actions by the Black Sea Fleet Command and violations
of the Russo-Ukrainian agreements on the Black Sea Fleet." As
quoted by Interfax, the bureau said that the results of these
investigations would be passed on the to prosecutor general.
The Ukrainians once again pointed a finger at the acting commander
of the fleet, Russian Admiral Igor Kasatonov, accusing him of
using the fleet's warships "for the settlement of issues outside
Ukraine, including conflicts between nationalities in the regions,
without seeking Ukraine's agreement." (Doug Clarke)

TWO AZERBAIJANI PARLIAMENT DEPUTIES ARRESTED. The Azerbaijani
National Council has stripped two parliamentary deputies of their
immunity. Abdul Guseinov, a former director of the Baku oil refinery,
has been arrested in connection with illegal foreign currency
transactions whereas Aga Akhundov is suspected of involvement
in the abortive comeback attempt by former President Ayaz Mutalibov
in May of this year, according to Nezavisimaya gazeta of 28 November.
(Liz Fuller)

CIS PEACEKEEPING FORCE FOR TAJIKISTAN. The defense ministers
of Kazakhstan, Kyrgyzstan, Uzbekistan and Russia in a meeting
in Termez on 30-November with CIS Armed Forces Commander Evgenii
Shaposhnikov and Chairman of Tajikistan's Supreme Soviet Imomali
Rakhmonov, decided to establish a CIS peacekeeping force for
Tajikistan, Interfax and ITAR-TASS reported. The force is to
include the Russian 201st division already stationed in Tajikistan,
battalions from Kazakhstan and Kyrgyzstan, and a mobile regiment
from Uzbekistan. According to ITAR-TASS, Russian Defense Minister
Pavel Grachev objected to a proposal to use the 201st division
in its present form as the basis for the peacekeeping force,
since he wanted the force to be genuinely multinational. (Bess
Brown)

TAJIK PRIME MINISTER PRESENTS PROGRAM. The Chairman of Tajikistan's
Council of Ministers, Abdumalik Abdullodzhonov, presented the
program of his government to the Supreme Soviet on 30 November,
Khovar-TASS reported. The program includes the encouragement
of private enterprise, especially small and medium-size businesses,
for a "gentle" transition to a market economy. Abdullodzhonov
plans to request assistance from Western advisers but without
following a foreign development model. He was also quoted as
warning that it will take years to overcome the effects of the
civil war. (Bess Brown)

MOLDOVAN PRESIDENT SUPPORTS UKRAINE'S STAND IN THE CIS. Interviewed
in Die Presse and the Frankfurter Rundschau, both of 25 November,
Moldovan President Mircea Snegur expressed concern over tendencies
within the CIS to "restore the center." Reaffirming Moldova's
interest in economic cooperation within the CIS, Snegur said
that Moldova shared Ukraine's concern over the "new centralism"
in both the economic and the political spheres. "Chisinau sees
Kiev as an ally here"; it will not sign the CIS charter if Ukraine
does not, and will not become a full member of the CIS if it
moves toward centralization, Snegur said. (Vladimir Socor)

CENTRAL AND EASTERN EUROPE

YUGOSLAV AREA UPDATE. Radios Croatia and Serbia report on 30
November that another cease-fire has been violated as fighting
continues unabated throughout Bosnia. The latest cease-fire between
Bosnia Serbs and Croats was supposed to halt cross-border shelling
and facilitate the withdrawal of Croatian troops from Bosnia.
In Geneva, the UNHRC heard extensive allegations of atrocities
in Bosnia, and Austrian TV reports that the commission is ready
to name Bosnian Serbs as the main offenders in the war. The president
of the WEU Parliament, Hartmut Soell said Serbia has "outlawed
itself from Europe" by its actions in the former Yugoslavia and
should be punished. At the UN, Secretary Boutros Boutros-Ghali
said that Serbs in the self-declared Croatian region of the Krajina
are causing immense difficulties for UN peace-keeping troops.
(Milan Andrejevich)

MORE WOES FOR PANIC. Concerned over Prime Minister Milan Panic's
nomination as candidate for the Serbian presidency, Oskar Kovac,
the deputy prime minister of the rump Yugoslav government, resigned
on 30 November. Kovac, a member of the ruling Socialist Party,
wrote that his party already has a presidential candidate, Slobodan
Milosevic, and that Panic's nomination puts him "in a moral dilemma."
Kovac was in charge of coordinating economic policy for Panic
government. He is the third member of Panic's cabinet to resign
in the past three days, and the fourth since September. Meanwhile,
Serbia's election commission said that Panic may be ineligible
to run. Under Serbian law a presidential candidate must have
been a resident of the republic for at least one year. Panic's
top aid, David Calef, told reporters, however, that Panic rented
a Belgrade apartment over a year ago. Panic is expected to announce
shortly whether he will actually run for the presidency. Thirteen
candidates have so far been nominated to run in the election
scheduled for 20-December. Radio Serbia carried the report. (Milan
Andrejevich)

PANIC CRITICIZES MILOSEVIC. Panic called the resignations over
the weekend of Economics Minister Nikola Sainovic and Minister
without Portfolio Radmila Milentijevic, both close to Milosevic,
as clearly inspired by fears that Panic will run successfully
against Milosevic in the presidential elections. In a letter
released by his press office, Panic described the resignations
as "Milosevic's unconvincing attempt to undermine the government
for his own political goals" and went on to say Milosevic has
pursued "erroneous policies" that have destroyed the economy
and ruined the country's international reputation. Radio Serbia
carried the report. (Milan Andrejevich)

PLIGHT OF MUSLIM RAPE VICTIMS. The 30 November Los Angeles Times
reported on the seemingly impossible situation of what appear
to be tens of thousands of Bosnian Muslim women raped by Serbian
soldiers and militiamen. Systematic and repeated rape is apparently
a part of the Serbian policy of ethnic cleansing. It seems intended
to make the women unacceptable to conservative Muslim husbands,
and the psychologically scarred women find little or no sympathy
for their plight among their own people. One gynecologist said
that some women face "probably no alternatives [for the rest
of their lives] but madness or prostitution," and a women's rights
worker noted that "every time one woman finds the strength to
talk about what has happened to her, it turns out [that] every
woman in her village was raped." The Croatian weekly Globus broke
the story on systematic rape as an instrument of Serbian policy
in its 25 September issue. (Patrick Moore)

NEW CZECH BUDGET. The Czech budget for 1993 will be balanced,
Czech Finance Minister Ivan Kocarnik told journalists on 30 November.
He said that the government's most important goal was to minimize
the consequences of Czechoslovakia's split and indicated that
he expects an economic growth of 1-3% in 1993, despite anticipated
difficulties. The Czech Republic will be burdened by a debt of
125-billion koruny (some $3.4 billion), the majority of which
consists of the Czech Republic's share of part of Czechoslovakia's
foreign debt that accumulated since the 1970s. Other government
officials said that they hope to keep the unemployment rate in
the Czech Republic below 5%, which would represent only a slight
increase over the current 2.5%. In a separate development, the
Czechoslovak federal government said that trade exchange between
the two republics would decrease by about 10% in 1993 because
of the split. (Jan Obrman)

SLOVAK GOVERNMENT ASKS FOR PROSECUTION OF JOURNALIST. The Slovak
press agency TA-SR reported on 30 November that the Slovak government
asked the prosecutor general to initiate legal proceedings against
a newspaper editor for "slandering state officials." Milan Zitny
claimed in a televised debate on 29 November that Slovak authorities
decided to do away with the so-called screening law because many
current state officials had been listed as police informers and
high-ranking officials in the communist People's Militia units.
The screening law, the most important parts of which were recently
confirmed by the Czechoslovak Constitutional Court, provides
that former communist policy informers and People's Militia commanders
be barred from government positions for five years. (Jan Obrman)


DISCIPLINARY ACTION AGAINST HUNGARIAN TV CHAIRMAN. The Hungarian
government has started disciplinary action against Hungarian
TV Chairman Elemer Hankiss, MTI reported on 30 November. According
to the prime minister's press office, Hankiss violated a law
on civil servants by "breaching managerial duties." Administrative
State Secretary in the Prime Minister's Office Jozsef Kajdi said
that the government received information indicating a breach
of duty and is obliged to initiate an investigation. Kajdi denied
charges by the opposition that the government's action is related
to the "media war" between the government and the opposition
over control of Hungarian Radio and TV. (Edith Oltay)

HUNGARIAN PARLIAMENT PASSES LAW ON VAT. On 30 November Parliament
passed a value-added tax bill that introduces a general 25% rate
and a 6% preferential rate for a wide range of food items and
services like heating and transportation. Only medicines and
household electricity will be exempt from VAT. Long parliamentary
debates preceded the passage of the bill, with both coalition
and opposition deputies submitting amendments aimed at reducing
taxes for low-income groups. (Edith Oltay)

ROMANIAN NATIONAL DAY CELEBRATIONS MARRED BY HUNGARIAN PROTEST.
On 1-December festivities in Romania will mark the forging of
"Greater Romania" in 1918, with the main celebration taking place
in Alba Iulia. On 30 November parliament held a special joint
session of its two chambers. In a statement released on 30 November
and quoted by Radio Bucharest, however, the Hungarian Democratic
Federation of Romania protested against the decision to change
the inscription on the statue in Cluj of Matei Corvin, a medieval
Hungarian king partially of Romanian ancestry. Radio Bucharest
reports that the original inscription on his statue in Cluj was
replaced when Hungary regained northern Transylvania in 1940.
The HDFR also protested the decision of the Romanian nationalist
mayor of Cluj, Gheorghe Funar, to change the names of 68 streets,
many named after Hungarian personalities. (Michael Shafir).

NASTASE: MOSCOW TRYING TO KEEP CONTROL OF MOLDOVA. Adrian Nastase,
chairman of the Romanian Chamber of Deputies, said in Bucharest
that Russia is trying everything it can "to suck Moldova into
the Commonwealth of Independent States." Nastase spoke at a press
conference in Bucharest on 30 November, after returning from
a three-day visit to Chisinau; he was quoted by Reuters. Romania
is trying to "link Moldova with Europe and the West," he said,
but fears a repetition of 1940, when the former Romanian province
of Bessarabia was incorporated into the Soviet Union alongside
other parts of Romanian territory, following a Soviet ultimatum.
Nastase added that Romania should get more involved in helping
Moldova solve its economic problems. (Michael Shafir)

SOCIAL DEMOCRAT SUGGESTED AS NEW BULGARIAN PREMIER. After one
week of consultations, on 30 November the Bulgarian Socialist
Party mentioned a Social Democrat as the "most suitable" candidate
for the post as prime minister, BTA reports. Economics professor
Zahari Karamfilov, head of the National Statistical Institute
and a deputy to parliament in 1990-91, in a first comment, stressed
that he will not accept the nomination without the support of
the two other parliamentary groups, the UDF and the MRF. He promised
nonetheless that a cabinet led by him would be composed of experts
and not serve the interests of political parties. Karamfilov
has yet to be confirmed as the BSP's official nominee. (Kjell
Engelbrekt)

LOZORAITIS MAY RUN FOR LITHUANIAN PRESIDENT. On 30 November in
a telephone interview with the RFE/RL Lithuanian Service, Stasys
Lozoratis, the Lithuanian ambassador to Washington, said that
he has been approached by representatives of several political
movements in Lithuania urging him to run for the presidency.
He said that talks are in a preliminary stage, but that he might
agree to run if there is a consensus in favor of his candidacy.
He said that Lithuania needs a figure who can unite all political
forces and lead them out of the current political crisis. Parliament
Chairman Algirdas Brazauskas and his predecessor Vytautas Landsbergis
have been mentioned as other possible presidential candidates.
(Saulius Girnius)

SOFIA PROTESTS NEW ROMANIAN CUSTOMS FEE. On 30 November the Bulgarian
Foreign Ministry officially protested Bucharest's recent decision
to introduce a customs fee on private motor vehicles leaving
Romania, BTA reports. The note, which was handed to Romania's
ambassador in Sofia, Alexandru Petrescu, suggested that the Romanian
government should either revoke the fee or expect reciprocal
measures from Sofia. The Bulgarian Foreign Ministry said the
move is causing considerable disruption of border traffic, and
local media report that many motorists cannot afford the fee.
(Kjell Engelbrekt)

ESTONIA VOWS SUPPORT FOR RUSSIAN "DEMOCRATIC MAJORITY." On 30
November the Estonian government issued a statement on relations
with Russia, the RFE/RL Estonian Service reports. "For the first
time in history, both Estonia and Russia "have new governments
dedicated to democratic ideals, willing to improve friendly and
good-neighborly relations with each other," the statement read.
The Estonian government intends to back Russia's democratic majority
fully by supporting international project to build housing for
troops withdrawing from Estonia; participating in international
efforts to provide humanitarian aid to those facing economic
hardship in Russia this winter; improving cooperation to secure
the Estonian-Russian border against drug trafficking, arms trading,
illegal immigration, and smuggling of radioactive material; further
helping noncitizens obtain Estonian citizenship; and granting
preferred status to Russian goods shipped to third countries
via Estonia. (Saulius Girnius)

DESPITE YELTSIN'S DIRECTIVE, SOME TROOPS LEAVE LATVIA. The Northwestern
Group of Forces announced in mid-November intentions to vacate
military facilities in Zvarde and Adazi and departures have already
started from the aviation bombardment and weapons training grounds
at Zvarde, Diena reported on 25 November. The announcement and
its speedy implementation came as a surprise to most Latvians,
especially in light of Russian President Boris Yeltsin's 29 October
directive suspending the withdrawal of Russian forces from the
Baltic States. Still Latvian authorities are worried about the
condition of the land left behind. Initial examinations at Zvarde
indicate that the Russian troops did not sweep the land mines,
defuse explosives, or prepare the land for civilian use. (Dzintra
Bungs)

RUSSIAN VOUCHERS TO BE SOLD IN LATVIA? An affiliate of the Russian
travel agency Turservis in Rezekne, a town in eastern Latvia,
has announced plans to sell Russian privatization vouchers to
local residents. The vouchers, with a face value of 10,000 Russian
rubles, would be sold for 3,000 Latvian rubles or 6,000 Russian
rubles apiece. The vouchers could be used to purchase shares
in Russian enterprises, BNS reported on 30 November. (Dzintra
Bungs)

LITHUANIAN DEFENSE MINISTER IN CHINA. On 30 November Audrius
Butkevicius arrived in Beijing for a five-day visit, Xinhua reports.
He held talks with Chinese Defense Minister Qin Jiwei on friendly
exchanges between the armed forces of their countries and international
topics. (Saulius Girnius)

HAS INSIDER TRADING COME TO WARSAW? The long-established Wedel
confectionery company became the center of a financial scandal
after its shares on the Warsaw stock exchange unexpectedly rose
10% on 17 November. It was only after trading closed that the
company, in which PepsiCo holds a majority share, made public
a decision taken by the Finance Ministry on 6 November granting
it a three-year tax holiday. Trading in Wedel shares was suspended
on 19 and 24 November pending clarification of the company's
financial status, and an inquiry was instituted into how the
leak occurred. Trading resumed on 27 November, but no Wedel shares
could exchange hands because demand exceeded supply by over five
times. Wedel expects net profits of 230-billion zloty ($15.3
million) in 1992. (Anna Sabbat-Swidlicka)

[As of 1200 CET] Compiled by Hal Kosiba & Charles Trumbull




[English] [Russian TRANS | KOI8 | ALT | WIN | MAC | ISO5]

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