No. 123, 01 July 1993

RUSSIA



IMF LOAN APPROVED. The executive board of the International Monetary
Fund approved on 30 June the first half of the $3 billion systematic
transformation facility for Russia, Western agencies report.
The approval had been delayed in the hope of pressuring the Russian
government to undertake credible steps to control more tightly
inflation, the budget deficit, and credit emissions, but, as
widely anticipated, was given in time for the G-7 summit. The
IMF announcement said that Russia could qualify for the second
tranche in six months' time if it could demonstrate progress
in stabilization. Russia's representative at the IMF said that
he hoped for disbursement of the remaining $1.5 billion by September.
Keith Bush, RFE/RL, Inc.

BUDGET DEBATE CONTINUES. From pronouncements made by Deputy Prime
Minister and Finance Minister Boris Fedorov and by the head of
parliament's Commission for Budget, Planning, and Taxes, Aleksandr
Pochinok on 28-30 June, as reported by Russian and Western agencies,
it looks as if a key commitment to the IMF and G-7 will not be
met. Russia undertook, inter alia, to reduce the budget deficit
to 5% of GDP by the end of 1993. Fedorov told parliament on 30
June that the cabinet was aiming at a deficit of 12 trillion
rubles, or about 10% of GDP. Pochinok had put the projected deficit
at 15 trillion rubles, or about 12.5% of GDP. Both estimates
appeared to include Western credits in budgetary income and to
exclude the financing of populist measures proposed by both the
government and parliament which could boost the deficit to nearly
20 trillion rubles. No final budget for 1993 has been passed
by parliament which has grudgingly given approval on a quarterly,
interim basis. The legislature also appears to have plans for
additional expenditure and has signaled its opposition to various
government proposals for raising extra revenue. Keith Bush, RFE/RL,
Inc.

LEAD-UP TO G-7 SUMMIT. A State Department spokesman announced
on 30 June that a proposal to open a G-7 office in Moscow will
be discussed at the G-7 summit on 7-9 July. French President
Francois Mitterand told Japanese journalists on 30 June that
the European Community has already granted $67 billion in aid
to Russia and that Japan and the US should contribute more to
Russia's economic recovery. Russia's privatization minister,
Anatolii Chubais told a news conference the same day that a proposed
ruble stabilization fund for Russia would be wasted unless a
Western-financed privatization fund was also forthcoming at the
same time. Keith Bush, RFE/RL, Inc.

IS SHAPOSHNIKOV IN OR OUT? THE PARLIAMENTARY SESSION ON 30 JUNE
FAILED TO REACH A FINAL DECISION ON MARSHAL EVGENII SHAPOSHNIKOV'S
APPOINTMENT TO THE SECURITY COUNCIL. While earlier reports indicated
that the vote against Shaposhnikov had been struck down for procedural
reasons, it now appears to have been upheld. However, a second
round of voting is expected to be held in approximately one week.
According to a 30 June report from ITAR-TASS and Radio Mayak
Shaposhnikov's candidacy is apparently being supported by Ruslan
Khasbulatov, who suggested a compromise in which Shaposhnikov
would be confirmed and the Deputy Chairman of the Supreme Soviet,
Valentin Agafonov, would also be appointed to the Council. (Under
current law the Deputy Chairman has ex officio a right to a seat
on the Council.) John Lepingwell, RFE/RL, Inc.

YELTSIN GROUNDS SPEAKER'S AIRCRAFT. Ruslan Khasbulatov's visit
to Penza and other Russian cities, initially scheduled for 30
June, was unexpectedly canceled later that day. Russian television
newscasts cited the speaker as saying that he had to cancel his
trip because President Yeltsin had ordered that Khasbulatov be
denied a plane for his official visits. Julia Wishnevsky, RFE/RL,
Inc.

YELTSIN ON BOSNIA. At his 30 June news conference with Greek
Prime Minister Constantine Mitsotakis, Yeltsin emphasized the
harmony of Greek and Russian views on the conflict in the Balkans.
He contrasted Russian-Greek agreement with the "different viewpoints"
of the US and Russian positions and added that this situation
encourages cooperation between Moscow and Athens. Yeltsin warned
that "if someone insists on using force, on lifting the weapons
embargo [on Bosnia], we will exercise our right to veto in the
[UN] Security Council to prevent this," Radio Rossii reported.
Suzanne Crow, RFE/RL, Inc.

MALAYSIA AGREES TO BUY RUSSIAN FIGHTER JETS. The announcement
by Defense Minister Najik Razak on 29 June that Malaysia would
purchase 18 MiG-29 fighter jets marked Moscow's first major break-through
into the lucrative southeast Asian arms market. The closing of
the deal, which experts estimate could be worth $1 billion, was
reportedly helped by Moscow's agreement to buy $1 billion worth
of Malaysian palm oil as partial payment. The Malaysians also
announced that they would buy 8 US F-18 fighters, and experts
speculated that other southeast Asian states would monitor Malaysia
closely to see if it could successfully manage a mixed Russian-US
fleet. Stephen Foye, RFE/RL, Inc.

RUSSIA'S GROWING REFUGEE PROBLEM. There are reported to be more
than 2 million refugees and "forced resettlers" in Russia, according
to Russian Radio on 30 June. Most of them are living in the Moscow
region, and in the Northern Caucasus. More refugees are expected
in the near future; about 30 million ethnic Russians and other
nationalities of the Russian Federation currently live outside
Russia, and it is feared that the nationality policies of some
of the former members of the USSR will encourage a flow of native
Russians to Russia. In the absence of effective help from state
authorities, a movement for the creation of settlements has been
founded by the refugees themselves, and 35 such settlements are
now being built under what are described as "incredibly difficult
conditions" in Russia. Sheila Marnie, RFE/RL, Inc.

PRESIDENT OF SAKHA ON DRAFT CONSTITU-TION. The President of Sakha
(Yakutia) Mikhail Nikolaev says in an article in Nezavisimaya
gazeta of 30 June that the essence of the draft Russian constitution
is "died-in-the wool unitarism and disdain for the peoples of
Russia." He maintains that the interpretation of democracy as
the will of the majority is in the spirit of Bolshevik democratic
centralism and reduces the chances of the rights of ethnic minorities
being taken into account. Nikolaev also argues that the detailing
of human rights in the draft and the setting of human rights
against the rights of peoples harbors the danger of minorities
being deprived of their historic possessions. Ann Sheehy, RFE/RL,
Inc.

LAW ON PARLIAMENTARY BODYGUARDS COMES INTO EFFECT. The controversial
law, setting up a special regiment to ensure the safety of the
speaker and other leaders of the Russian parliament was finally
published in Rossiiskaya gazeta on 30 June. In late-1992, the
existence of the regiment, controlled by the speaker, Ruslan
Khasbulatov, rather then by either the president or any of the
so-called "power" ministers, was severely criticized by Yeltsin's
supporters, some of whom even accused Khasbulatov of setting
up the team of bodyguards to attempt a coup against the president.
On 28 April the parliament had adopted the law on setting up
such a regiment of bodyguards that included Yeltsin's suggested
amendments, but it went into effect only on the day of its publication,
30 June. Julia Wishnevsky, RFE/RL, Inc.

TRANSCAUCASIA AND CENTRAL ASIA



AZERBAIJAN NATIONAL ASSEMBLY APPOINTS SURAT HUSEINOV PRIME MINISTER.
A session of Azerbaijan's National Assembly (the rump parliament)
voted on 30 June by 38 votes to one to appoint rebel colonel
Surat Huseinov as Prime Minister with supreme responsibility
for the ministries of Defense, Security and the Interior, Western
news agencies reported. In a twenty-minute eulogy of Huseinov,
parliament chairman Geidar Aliev said one of his primary tasks
would be "to recapture Azerbaijan's lands", thus calling into
question Azerbaijan's commitment to the latest CSCE Karabakh
peace plan; Huseinov called for "national reconciliation", and
promised to unveil a new economic program in two weeks. National
Independence Party chairman Etibar Mamedov, who had previously
been considered a likely candidate for the post of prime minister,
declined to comment on Huseinov's appointment; President Elchibey
rejected it as "unconstitutional", according to ITAR-TASS. The
head of the Azerbaijan Oil Company, Sabit Bagirov, resigned on
30 June, telling Reuters that he had been given to understand
by the new leadership that he was no longer wanted. Talks on
the development of three offshore oil fields by eight Western
oil companies, and with Turkey on a pipeline from Baku to Yumurtalik
in eastern Turkey, were suspended late last week, according to
Reuters and The Wall Street Journal. Liz Fuller, RFE/RL, Inc.


RUSSIAN SOLDIERS WITNESS TAJIK ATROCITIES. In a report from Tajikistan
aired on Germany's ARD television on 29 June, two Russian soldiers
reported witnessing Tajik government forces committing atrocities.
The two, who had just finished a tour of duty along the Tajik-Afghan
border, said they had seen Tajik government troops beat prisoners
with sledgehammers and then shoot them. A local commander, asked
about the Islamic opposition forces, was quoted as saying, "When
we find them, we kill them." In the past, there have been frequent
claims by Amnesty International and other human rights groups
that government troops and irregulars, supporting the government,
have engaged in widespread repression against people from some
southern regions of the country; the government denies that any
systematic persecutions have taken place. Keith Martin, RFE/RL,
Inc.

CIS

WHICH FLAG FLIES OVER THE BLACK SEA FLEET? IN RESPONSE TO A CALL
BY THE OFFICERS' ASSEMBLY OF THE BLACK SEA FLEET TO HOIST THE
RUSSIAN NAVAL ENSIGN ON FLEET SHIPS ON 1 JULY, THE FLEET COMMANDER,
ADMIRAL EDUARD BALTIN, ISSUED AN ORDER ON 30 JUNE INSISTING THAT
THE FLEET FLY ITS REGULAR (SOVIET PERIOD) FLAG. According to
a report on Ekho Moskvy, officers within the fleet felt that
Baltin had no choice but to issue the command, otherwise he would
have been dismissed from his position. On 30 June The Christian
Science Monitor reported significant opposition within the fleet's
command to the Moscow agreement to split the fleet, while ITAR-TASS
reported that the Crimean parliament had upheld a resolution
calling for the fleet to remain unified. In Kiev on 30 June,
President Kravchuk stated that officers who do not agree with
the decision should resign, and that raising a different flag
would be insubordination, according to Reuters. ITAR-TASS also
reported that two trains carrying armored vehicles and small
arms had arrived in Sevastopol for a Ukrainian marine unit located
there, prompting reports that it was preparing for urban combat.
On 1 July a spokesman for the fleet in Sevastopol informed an
RFE/RL correspondent in Moscow that only one fleet vessel and
some shore artillery units had raised the Russian flag. Ostankino
TV on July 1 was reporting that the Russian naval ensign had
been hoisted on up to ten support vessels and also at the naval
infantry base at Simferopol. Thus, the planned mass action appears
to have faltered and a new crisis over the fleet averted. John
Lepingwell , RFE/RL, Inc.

CENTRAL AND EASTERN EUROPE



CZECHS AND SLOVAKS JOIN THE CE, HUNGARY ABSTAINS FROM SLOVAK
VOTE. Both the Czech and Slovak republics were admitted into
the Council of Europe on 30 June; each received 28 votes and
1 abstention in the final voting. The country which abstained
from the Czech vote was Liechtenstein, due to disputes over property
confiscated by the Czechoslovak government in 1918. Rather than
veto Slovak admission as expected, the Hungarian deputy abstained
from the voting after intense pressure by other Council members,
particularly those from EC countries, RFE/RL's correspondent
reports. Hungarian government representative Ambassador Janos
Perenyi announced before the voting that he would refrain from
casting a ballot, MTI reported. Perenyi gave two reasons for
not objecting, as anticipated, to Slovakia's admission. First,
Hungarian Prime Minister Jozsef Antall has received promises
from his Slovak counterpart that Hungarian minority rights would
soon be legally protected. Second, the Council of Europe has
accepted responsibility to regularly supervise the observance
of minority rights in Slovakia. The Hungarian Foreign Ministry
issued a lengthy statement on its stand on Slovakia's admission
to the CE. The statement explained that it was not Hungary's
goal to isolate a country or to prevent European integration,
but for the sake of stability in the region the post-communist
countries must comply with certain standards in politics and
human rights. In the case of Slovakia, Hungary wanted not only
a guarantee that minority rights will be observed, but it wanted
Slovakia to annul the so-called Benes-decree issued after World
War II stating that the Hungarian minority in Slovakia bore collective
guilt. The Foreign Ministry stated that it views the national
minority requirements formulated by the CE in connection with
the Slovak admission as a precedent for the admission of all
other countries. Slovak officials promised the situation of the
Hungarian minority will improve, and Meciar called Slovakia's
entry a "shared triumph" for CE members and Slovakia, TASR reports.
Judith Pataki and Sharon Fisher, RFE/RL, Inc.

CROATS AND MUSLIMS BATTLE FOR MOSTAR. International media report
on 1 July that the previous day witnessed heavy fighting between
the two former allies for the principal city of Herzegovina.
Muslims took the nearby Croatian Tihomir Misic army base and
some suburbs, although the Croatian commander claimed that his
forces had simply withdrawn to regroup. The Croatian Defense
Council (HVO) called for a general mobilization within 24 hours,
but this may be a political rather than a military move, since
the HVO at least on some fronts has a surplus of trained manpower
but a relative lack of weapons. The International Herald Tribune
quotes the Croatian chief-of-staff as saying that the current
fighting "will perhaps be the decisive battle" for Mostar. Bavarian
Radio predicts the imminent fall of the Croatian-held city to
the Muslims in an effort by the latter to establish a north-south
corridor between it and Jablanica. Finally, HVO troops on 30
June barred access to Mostar to UN troops, and a Spanish contingent
has been withdrawn from the area. Patrick Moore, RFE/RL, Inc.


OTHER BOSNIAN DEVELOPMENTS. The UN has announced a 50% cut in
aid to central Bosnia and a 20% reduction in that to Sarajevo
as of 1 July because of fighting and a lack of donations, international
media report. The United States, however, is trying to make good
some of the shortfall. Meanwhile, the Chicago Tribune reports
that the mayor of Sarajevo and 11 other city officials have gone
on a hunger strike to demand the delivery of minimal food, water,
electricity, and fuel supplies to the besieged town. UN officials
said that the Croats are demanding "$20 million in protection
money to let the . . . aid convoys pass" and that the Serbs are
planning to make similar demands. Patrick Moore, RFE/RL, Inc.


DRASKOVIC COUPLE FORMALLY CHARGED. Radio Serbia reports on 30
June that Belgrade's public prosecutor Miodrag Tmusic has formally
charged Vuk Draskovic, leader of the Serbian Renewal Movement,
and his wife Danica, with criminal offense. The action comes
30 days after their arrest on 1 June following clashes during
an anti-government demonstration. The most serious charge facing
Draskovic for beating a police officer could result in a 10-year
prison term. The incident occurred in front of the main entrance
of the Federal Assembly building during the demonstrations. The
same bill of indictment accuses the couple of using their influence
and directing " a rally which resulted in violent acts that led
to a man's [police officer's] death." Draskovic and his wife
have been imprisoned since their arrest. Their lawyers and many
Serbian opposition leaders who met the Draskovic's say the couple
were severely beaten by police during their arrest and have demanded
their release. European and US leaders have also protested that
the couple should be freed. However, Serbia's President Slobodan
Milosevic said on 9 June that their case was a legal matter and
not a political one. According to Borba on 1 July, Tmusic also
demanded that the Draskovic's should be remain in custody. Milan
Andrejevich, RFE/RL, Inc.

"RADIO BROD" OFF THE AIR? THE BBC'S SERBIAN AND CROATIAN SERVICES
ON 1 JULY REPORT THAT THE INTERNATIONAL TELECOMMUNICATIONS UNION
HAS RULED IN FAVOR OF SERBIAN COMPLAINTS AGAINST THE EC-FUNDED
RADIO SHIP IN THE ADRIATIC, WHICH BROADCASTS NEWS AND INFORMATION
ON THE YUGOSLAV AREA BY DOMESTIC JOURNALISTS. The Caribbean country
under whose registration the ship sails revoked that registration
upon receipt of the ITU's decision. The ship has sailed to Italy,
but its future and that of its broadcasts are unclear. Patrick
Moore, RFE/RL, Inc.

VIOLENCE IN SOUTHERN ALBANIA. The crisis brought on by Albania's
expulsion of a Greek Orthodox cleric last week and Greece's subsequent
decision to begin massive deportations of Albanian migrants continues
to plague relations between the countries. Reuters reports on
30 June that Albanian police clashed with members of Albania's
Greek minority in Southern Albania. The protesters, demanding
the return of the expelled priest, had hoped to reach the city
of Gjirokaster to take part in a larger rally organized by the
Greek Orthodox Church but were blocked by Albanian police. Albanian
authorities, concerned about growing unrest in the region, had
banned the rally. This is the latest incident in the steady deterioration
of Albanian-Greek relations. The crowd was estimated at 300 and
2 injuries were reported. Robert Austin , RFE/RL, Inc.

HUNGARIAN CONSTITUTIONAL COURT RULING. According to a 30 June
MTI report, the Hungarian Constitutional Court has ruled that
the frequency law that was passed by parliament in April was
not unconstitutional and did not violate the freedom of opinion
and the press. The court has pointed out, however, that the granting
of frequencies for local broadcasting or to non-commercial stations
is not based on this law but on the 1984 media law. It concluded
that the government is guilty of negligence for not having properly
defined within the legal framework the grounds and rules for
the division of frequencies and has thereby created an unconstitutional
situation. The court called upon the government to regulate the
granting of frequencies and broadcasting permits to local radio
and television stations by 31 July 1993. In a separate ruling
the court declared unconstitutional a law that would have allowed
the prosecution of individuals who ordered the shootings into
defenseless crowds during the 1956 revolution. This was the second
time the court has ruled unconstitutional a law pertaining to
communist crimes of the past because it would "create legal insecurity."
Judith Pataki , RFE/RL, Inc.

SLOVAKS REFUSE TO ACCEPT REFUGEES RETURNED BY CZECH REPUBLIC.
TASR reports that Slovak Interior Minister Jozef Tuchyna said
at a 30 June press conference that if the Czech Republic makes
the "one-sided decision" to close the Czech-Slovak border in
order to stem the flow of refugees trying to reach Germany across
the its borders, the Slovak government will refuse to accept
those refugees back into Slovakia. Existing agreements between
the Czech and Slovak republics preclude border checks of individuals.
The Czech Republic has been under increasing pressure from Germany
to sign an agreement to accept would-be asylum seekers who will
be turned back from Germany after that country's new asylum law
goes into effect on 1 July. Czech President Vaclav Havel and
Foreign Minister Josef Zieleniec are to discuss this and other
issues in Slovakia on 1 July. Sharon Fisher and Milada Vachudova,
RFE/RL, Inc.

CZECH GOVERNMENT TO IMPLEMENT WAGE CONTROL. On 30 June, Czech
Finance Minister Ivan Kocarnik announced at a press conference
that the government had ordered the regulation of wage increases.
The decision applies exclusively to enterprises where wages are
growing more quickly than production. No sanctions will be applied
if wages rise by 15% over four years, but stiff fines will be
levied on higher increases. Although recent statistics indicate
a slight improvement in the relation between production and wage
increases, Kocarnik said that wages are still rising too quickly,
creating dangerous inflationary pressures. The government decision
will affect mostly state firms with excessive wage increases,
and will lead to a virtual wage freeze in the state sector. It
will not affect most private firms. In response to strong criticism
by trade union leaders, Kocarnik argued that the alternative
wage policy supported by the unions would lead to higher unemployment
as well as higher inflation, two outcomes which the government
would like to prevent. The decision goes into effect on 1 July
but CTK reports that its duration has not been determined. Milada
Vachudova, RFE/RL, Inc.

PRICE RISES IN POLAND. On 1 July Poland began raising energy
prices as a result of VAT, PAP reported. Hot water for domestic
consumers went up by 12%; electricity and gas will go up by 7%
on 5 July. Public transportation will also be increased as of
5 July. Withdrawal of the price rises and compensation for cost
of living increases were two of the conditions set by the Solidarity
trade union for desisting from staging a general strike before
the elections. Anna Sabbat-Swidlicka, RFE/RL, Inc.

POLISH POLICEMEN RUN FOR PARLIAMENT. At an extraordinary congress
of the police union, delegates demanded improved pay and conditions
and legislative reforms to ensure more efficient crime-fighting.
The new union chairman, Grzegorz Korytowski, told PAP on 30 June
that some 10 policeman, including himself, would run for parliament
on the lists of three left-wing parties and possibly also within
president Walesa's nonparty reform bloc. Noting that the law
prevented policemen from belonging to political parties but not
from running for parliament, Interior Minister Andrzej Milczanowski
warned that he would not countenance any "political disruption"
within the service. Anna Sabbat-Swidlicka, RFE/RL, Inc.

BULGARIAN VICE PRESIDENT OFFERS RESIGNATION. According to BTA,
on 30 June Vice President Blaga Dimitrova forwarded a letter
of resignation to the Constitutional Court. She cited a number
of reasons which led to the decision, including feelings of being
deliberately shut out of the decision-making process and her
belief that "preparations are under way for dictatorship in this
country." Speaking to RFE/RL, President Zhelyu Zhelev said he
had hoped Dimitrova would not resign and added that her announcement
caught him by surprise. The Constitutional Court is slated to
review the resignation on 6 July and is expected to make a public
announcement on that day. Stan Markotich, RFE/RL, Inc.

ROMANIAN PREMIER ON SHIPPING DEAL. At a press conference on 30
June Prime Minister Nicolae Vacaroiu dwelt upon the controversial
shipping deal between the Romanian Petronim state firm and the
Greek Forum Maritime company. Vacaroiu denied any governmental
or personal involvement in the transaction. But he strongly defended
the joint venture, suggesting that Romania's merchant fleet badly
needed an infusion of capital in view of its desolate state.
Vacaroiu said that the Greek company had raised no objection
to its share in the venture being revised downwards to less than
50%, but that it insisted on retaining control over Petronim's
management. He further accused former Transport Minister Traian
Basescu and Petronim manager Nicolae Posedaru of having mortgaged
39 out of Petronim's 92 ships under the two previous post-communist
cabinets. Such operations were conducted through ghost firms
and amounted to "major fiscal evasion," Vacaroiu said. Dan Ionescu,
RFE/RL, Inc.

ROMANIA CALLS ON US, IRAQ TO SHOW RESTRAINT. In a statement broadcast
by Radio Bucharest on 30 June, Romania's Foreign Affairs Ministry
called on the United States and Iraq to avoid an escalation of
conflict following the recent US missile attack on Baghdad. Romania,
the statement said, noted that the US explained the attack by
"indications" of a "terrorist operation" being planned by Iraq
against former President George Bush during his April visit to
Kuwait. The ministry reiterated the Romanian official stance
of condemning any form of terrorism., but added that "there could
be no justification" for the loss of Iraqi civilian lives during
the military action. Dan Ionescu

LUCINSCHI TELLS ROMANIAN PARLIAMENT TO ACCEPT MOLDOVAN INDEPENDENCE.
Addressing Romania's Chamber of Deputies on his first official
visit to Romania, Moldovan Parliament Chairman Petru Lucinschi
said that the Moldovan national revival sought its fulfillment
in democracy, state independence, and integration with Europe
and the world. While noting the common history and language of
the two states, Lucinschi pointed out that most Moldovans favor
independence; and "the public will is decisive for us." He advised
Romania to view Moldova "not just from a historical viewpoint
but from that of realistic politicians," "stop pursuing unreal
things," and "accept us for what we are." He equated Romanian
irredentism and Transdniester separatism with a "Scylla and Charibdis"
for Moldova. Lucinschi's speech contrasted with Romanian Chamber
of Deputies Chairman Adrian Nastase's introductory appeals for
Romanian-Moldovan "legislative synchronization" and his allusions
to a future unification. Vladimir Socor , RFE/RL, Inc.

CSCE HIGH COMMISSIONER IN ESTONIA. On 30 June the trip from Tallinn
to Narva by CSCE High Commissioner for National Minorities Maz
van der Stoel was temporarily blocked by about 6,000 demonstrators
in the city of Sillamae to protest recently passed Estonian laws,
BNS reports. Stoel held meetings with Narva municipal officials
who told him that they had decided to use "the most peaceful
means of resolving a conflict," holding a referendum instead
of resorting to strikes or blocking roads. The Estonian Chancellor
of Justice Erik-Juhan Truvali ruled that the holding of the Narva
referendum contradicted the Constitution and called on Narva
officials to call it off within 20 days and that, in any event,
it would be declared void by the Estonian Supreme Court. Saulius
Girnius, RFE/RL, Inc.

[As of 1200 CET]

Compiled by Saulius Girnius and Patrick Moore



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