No. 142, 28 July 1993

RUSSIA



TENSION CONTINUES OVER CURRENCY REFORM. An RFE/RL correspondent
reports that the presidium of the Russian parliament decided
on 28 July in principle to rescind all limits on the exchange
of old ruble notes. It was not clear whether parliament has the
power to modify the original measure of the Russian Central Bank
as modified by President Boris Yeltsin. The confiscatory nature
of the limitation has been highlighted by many critics of the
currency reform. Despite an ITAR-TASS claim on 27 July that President
Yeltsin's decree of the previous day had helped to stabilize
the situation, eye-witness reports described huge lines of people
waiting to change their banknotes and scenes of some chaos within
the savings banks. In Moscow, an RFE/RL correspondent reported
that banks have organized a system whereby those holding a residence
permit are given priority. This means even longer waits for those
from other former Soviet republics and from other foreign countries.
It is not clear whether the original exchange cut-off date of
26 July for foreigners has been extended or merely ignored. -Keith
Bush

RECRIMINATIONS MOUNT. Russian Central Bank Chairman Viktor Gerashchenko
told a news conference and Izvestiya on 27 July that members
of the cabinet, members of President Yeltsin's staff and top
officials of parliament had been informed in advance about the
planned currency reform. He stopped short of saying that the
president knew any details of the measure but felt certain that
the president was informed at least "in general terms." Parliamentary
Speaker Ruslan Khasbulatov claimed that he had been informed
"as late as Saturday," but did not specify whether this notification
came before or after the measure had been announced. Prosecutor
General Valentin Stepankov called for the cancellation of the
currency reform, and threatened to remove Gerashchenko if he
declines. Presidential adviser Sergei Shakhrai hinted that the
government could be forced to resign over the affair. -Keith
Bush

SAKHA (YAKUTIA) THREATENS TO ISSUE OWN CURRENCY. Provisional
arrangements are being made for the introduction of a national
currency in Sakha (Yakutia), Ostankino television reported on
27 July citing the Postfaktum agency. The agency, citing a source
in the administration of the president of Sakha (Yakutia), said
that the currency would only be issued if the president, Mikhail
Nikolaev, was unable to reach agreement in Moscow on the comprehensive
financing by the Russian government of state-owned enterprises
on the territory of Sakha and of support in the social sphere.
Nikolaev's administration considers that the national currency
would have better backing from the republic's own gold resources
than the ruble has. At the beginning of July, Sakha threatened
to introduce a state of emergency and appropriate all local financial
resources if the central government did not provide credit to
enable supplies for the winter to be shipped in before the rivers,
the main transport link, freeze in September. -Ann Sheehy

VIKTOR BARANNIKOV DISMISSED. Minister of Security Viktor Barannikov
has been dismissed by President Boris Yeltsin for "violation
of ethical norms and serious failures in the leadership of his
ministry, including of the Border Troops," an apparent reference
to recent events on the Tajik-Afghan border, Russian Television
reported on 27 July. Yeltsin's edict also says that Barannikov's
dismissal does not indicate distrust of the entire ministry.
Barannikov's ouster may be connected with the power struggle
between Yeltsin and the Russian parliament. Although Barannikov
was considered to be a Yeltsin's loyalist, he failed to prevent
frequent leaks of confidential government documents to the anti-Yeltsin
opposition. In addition, Yeltsin recently dismissed the First
Deputy Minister of Internal Affairs, Andrei Dunaev, who was responsible
for the operative and agent network. Dunaev and Barannikov were
long-time associates in the MVD. Possible successors of Barannikov
are the present chief of the Moscow State Security Administration,
Evgenii Savostyanov and Yeltsin's political adviser Sergei Stankevich.
-Victor Yasmann

NATIONAL SALVATION FRONT SPLITS. Following the second congress
of the opposition pro-communist and pro-nationalist organization
on 24-25 July, some key members of the NSF have left to form
their own party. Nikolai Pavlov and Sergei Baburin, leaders of
the Russian All-People's Union and Valerii Ivanov, leader of
the Party of Russian National Renaissance, who are all co-chairmen
of the NSF, together with Nikolai Lysenko, leader of the National
Republican Party of Russia, announced their intention to quit
the NSF. They will abandon "any attempts at consolidation with
the communists" according to Lysenko on Ekho Moskvy on 27-July,
and also will reject those "who cannot string two words together
without mentioning a Jewish-Masonic plot." They intend to form
their own opposition movement in time for the next elections.
-Wendy Slater

ECONOMIC CONFERENCE OPENS IN MOSCOW. A national conference on
the economy organized by Parliamentary Speaker Ruslan Khasbulatov
opened on 27 July, Russian news agencies reported. The conference
is being attended by 1,200 delegates from across Russia including
People's Deputies, academics and regional representatives as
well as prominent political figures opposed to the current government
such as Vice-President Alexander Rutskoi, Central Bank Chairman
Viktor Gerashchenko and Constitutional Court Chairman, Valerii
Zorkin. Prime Minister Viktor Chernomyrdin, who was supposed
to co-chair the conference, did not attend amid a continuing
uproar over the Central Bank's decision to withdraw Soviet-era
rubles from circulation. In his opening speech, Khasbulatov demanded
that the government adapt its policies to deal with the collapse
in production. He also insisted that the next Congress of People's
Deputies should deal with economic rather than constitutional
issues. The conference will now divide into groups in order to
prepare specific proposals on various aspects of economic policy.
-Dominic Gualtieri

MOSCOW NEGOTIATING ON CAM RANH BAY. The Singapore Times reported
on 26 July that Russia and Vietnam are currently negotiating
a new agreement that would define the terms under which Russian
ships could use logistical facilities at the Vietnamese port
of Cam Ranh Bay. At the conclusion of the Vietnam War, the former
US military base was taken over by Hanoi, which granted the Soviet
Navy access to it. When the Soviet Union collapsed, Russia and
Vietnam continued to observe the agreement but, according to
the report, the number of ships using the port declined significantly.
Speaking in Singapore on 22 July, Russian Foreign Minister Andrei
Kozyrev defended a continued Russian military presence at Cam
Ranh Bay. -Stephen Foye

TRANSCAUCASIA AND CENTRAL ASIA



ABKHAZ CEASEFIRE SIGNED. In Sochi on 27 July Georgian Parliament
Speaker Vakhtang Goguadze, Deputy Chairman of the Abkhaz Supreme
Soviet Sokrat Dzhindzholia, and Russian Foreign Minister Andrei
Kozyrev signed a ceasefire agreement which goes into effect at
noon on 28 July, ITAR-TASS reported. The document stipulates
that trilateral groups stationed throughout Abkhazia will begin
monitoring compliance with the ceasefire on 29 July, and will
cooperate with international observers when they arrive. By 5-August,
a joint commission, including UN and CSCE representatives, will
be established to work out a final settlement of the conflict.
Within 10-15 days, Georgian forces will be withdrawn from the
conflict zone. "Other armed groups," a reference to Russian and
North Caucasian mercenaries said to be participating in the fighting,
will also be disbanded and withdrawn. -Catherine Dale

TAJIK OPPOSITION SAYS IT HAS STINGERS. Muhammadsharif Himmatzoda,
head of the Tajik opposition Islamic Renaissance Party, has told
the Pakistani daily News that the opposition has bought Stinger
missiles from its Afghan allies, Western agencies reported on
27 July. Himmatzoda was reported to have said that the Tajik
opposition will use the missiles only if the need arises; according
to ITAR-TASS he offered to sell them to the US if US officials
would establish direct contact with his group. On 26 July Western
agencies reported from Dushanbe that Tajikistan's Foreign Minister
Rashid Alimov had told journalists that his country offered to
hold talks with representatives of Russia, Afghanistan and Uzbekistan
to try to find a solution to the conflict on the Tajik-Afghan
border. Alimov flatly rejected the inclusion of the Tajik opposition
now headquartered in Afghanistan in the talks. -Bess Brown

KITOVANI SAYS SHEVARDNADZE SHOULD RESIGN. In an interview with
ITAR-TASS on 24 July, Georgia's former Deputy Prime Minister
and Minister of Defense Tengiz Kitovani warned that if Shevardnadze
did not resign, the conflict in Abkhazia would continue and Georgia
would become the scene of civil war. Kitovani stated that certain
military circles in Russia cannot forgive Shevardnadze for the
role he played as Soviet Foreign Minister, and therefore they
are trying to force Shevardnadze's resignation by exacerbating
the conflict in Abkhazia. At the same time, Kitovani continued,
the Georgian parliament and people will never forgive Shevardnadze
if he signs an agreement that sanctions the loss of Abkhazia.
-Catherine Dale

TURKMENISTAN TO INTRODUCE OWN CURRENCY IN OCTOBER. Turkmenistan's
President Saparmurad Niyazov announced on 26 July that his country
will introduce its own currency in October, Russian sources reported.
In the meantime, old Russian rubles will remain the official
currency. Niyazov denied that recent developments in Russia had
affected Turkmenistan's timetable, though an Ostankino TV report
suggested that this is indeed the case. Niyazov called on citizens
not to panic, referring to the frantic buying up of goods which
he said has already begun, and he appealed to them to put their
money in savings banks to facilitate the currency exchange in
October. Since it became independent Turkmenistan has repeatedly
threatened to introduce its own currency; reportedly the new
currency has already been printed. -Bess Brown

AZERBAIJAN AND ARMENIA PAY GAS DEBTS TO TURKMENISTAN. Armenia
and Azerbaijan are paying their debts to Turkmenistan for natural
gas with increased deliveries of goods and equipment to Turkmenistan,
Radio Mayak reported on 26 July. Armenia will pay its $6 million
debt for shipment of the gas in rubles, while Azerbaijan will
pay its $34-million debt partly with hard currency and partly
by supplying equipment and materials to the Turkmen gas concern
Turkmengaz. Officials of the Turkmen gas industry have agreed
to consider increasing gas deliveries to Armenia during the summer,
if it will be paid for at winter rates. -Yalcin Tokgozoglu

IMF CREDIT FOR KAZAKHSTAN. The International Monetary Fund has
approved a $86-million credit for Kazakhstan from its "systemic
transformation facility," a new fund designed to help former
socialist countries make the transition to market economies,
according to the Financial Times on 27 July. The report suggests
that Kazakhstan has qualified for the credit because it has succeeded
in restraining the size of its budget deficit through improved
tax collection, cuts in state spending and reductions in state
subsidies. The projected budget deficit for this year is 6% of
GDP. -Sheila Marnie

CENTRAL AND EASTERN EUROPE



BOSNIA PEACE TALKS OPEN. After the end of the first session of
the peace talks in Geneva on 27 July, Bosnian President Alija
Izetbegovic, Serbian President Slobodan Milosevic, and a UN spokesman
said that they made some progress but gave no details. Bosnian
Serb leader Radovan Karadzic, Bosnian Croat leader Mate Boban,
Croatian President Franjo Tudjman, and Montenegrin President
Momir Bulatovic also participated in the talks, international
media report. Meanwhile, French peacekeepers came under attack
again as Serbs continued shelling Sarajevo. The French Foreign
Ministry called on the UN immediately to implement Resolution
836, which permits defensive air cover, and a NATO spokesman
said that NATO planes are ready to move if the UN wants. Radio
Sarajevo reports a Serb offensive on Zuc Mountain, north of the
city, where Muslim defense lines were holding, and Serb shelling
around Brcko and Gorazde. Croatian Radio reported that Muslim
forces had broken through Bosnian Croat defense lines at Banovo
Brdo near Fojnica, west of Sarajevo. International aid organizations
working in the isolated enclave of Tuzla appealed urgently to
the UN Security Council for intervention to break a blockade
by Serbs and Croats. -Fabian Schmidt

RADIO BROD ON THE AIR. The EC-subsidized Radio Brod (Radio Boat)
will resume 24-hour broadcasts on 29 July, according to deputy
editor Konstantin Jovanovic. The floating radio station in the
Adriatic Sea began broadcasting to the former Yugoslavia on 7
April but was docked on 28 June by the International Telecommunications
Union after Serbia complained that international law prohibits
broadcasting from international waters. Jovanovic told RFE/RL
on 27 July that intense international pressure persuaded the
ITU to reverse its decision, and the boat has now been reregistered
under the flag of the Caribbean island of St. Vincent. Called
"Droit de Parole," the boat-radio is staffed by 10 well- known
journalists from the former Yugoslavia. -Milan Andrejevich

SLOVENIA ROCKED BY SCANDALS. Two major political scandals could
force the resignation of the government and prompt new elections,
local media report. Last week Vecerno delo published a story
that Zmago Jelincic, head of the right-wing nationalist Slovenian
National Party, which placed fourth in last December's parliamentary
elections, had been an agent for the Yugoslav State Security
Service since 1987, allegedly informing on the activities of
Western journalists and Slovenian emigres. Although Jelincic
denies any wrongdoing, questions have been raised in Delo and
Mladina about possible links with key officials, such as President
Milan Kucan and Prime Minister Janez Drnovsek. Analysts are predicting
that the moderate-left coalition government will lose a vote
of confidence in the autumn, forcing new elections, and that
the powerful right-wing bloc will emerge the winners. Meanwhile,
the discovery on 23 July of some 150 tons of smuggled arms at
Maribor airport is turning into a major scandal that might damage
Slovenia's international reputation. Media reports say that the
investigation has determined that not only private citizens,
but members of the Slovenian government have been involved in
arms smuggling. The arms apparently originated in Saudi Arabia
and were intended for Bosnian Muslim forces. Defense Minister
Janez Jansa concedes that illegal arms trade is well organized.
Critics suggest that he is withholding information prejudicial
to a number of Slovenian figures and international investors.
-Milan Andrejevich

POLITICAL TENSIONS MOUNT IN CROATIA. The Zagreb dailies on 28
July report on a number of developments reflecting a general
dissatisfaction across the political spectrum with the policies
of President Franjo Tudjman and his center-right faction of the
ruling Croatian Democratic Community (HDZ). On 27 July, 15 leaders
of all major parties met to discuss the need to reverse some
key Tudjman policies, especially that toward Bosnia-Herzegovina.
Tudjman and his Herzegovinian advisors favor a de facto partition
of the neighboring republic, while the bulk of Croatian opinion
seems to feel that Croatia would lose its claim to its own territorial
integrity by endorsing such a move which, in any event, would
only benefit the Serbs. Tudjman's recent talk about possible
land swaps with the Serbs has also left many uneasy, not least
of all the people in the regions affected. One participant in
the Zagreb meeting said that Cardinal Franjo Kuharic is "consternated
and depressed" by the government's refusal to reverse course,
but the HDZ again rejected any change in policy and any moves
toward a coalition government. Vecernji list reports at length
on the meeting, while Vjesnik runs an account of Tudjman's latest
press conference, during which he continued to brand the Muslims
as "mujahedeen and fundamentalist elements." The political turmoil
is likely to continue, however, because another all-party meeting
is slated for next week, while the HDZ will hold its congress
on 15-16 October, at which time many expect the party to split
into at least two factions. The larger group may well be the
one headed by the pragmatic Stipe Mesic, and Tudjman's days of
real power could prove to be numbered. -Patrick Moore

ALBANIAN SOCIALIST PARTY RESPONDS TO MOVE AGAINST NANO. In response
to a move by parliament to consider removing immunity from Socialist
Party leader Fatos Nano, the party's parliamentary group has
issued a harsh statement attacking President Sali Berisha. In
a statement in the Socialist paper Zeri i-Popullit on 28 July,
the group called the move "antidemocratic and antilegal" and
reiterated the accusation that the ruling Albanian Democratic
Party is trying to install a fascist dictatorship. Pointing to
the 12-July imprisonment of Idajet Beqiri (leader of the miniscule
Albanian National Unity Party) on charges of insulting and slandering
Berisha, the Socialists also claimed that the government is moving
against all opposition forces. A new three-point agenda calls
for new elections, stresses that the Socialists will continue
to boycott the People's Assembly, and announces a further boycott
of Socialist representatives at the local level. The Socialists
have continually used all means at their disposal to force new
elections, which they feel they will win. Berisha seems determined
to hold on until his mandate expires in 1996. The situation remains
perilous with parliament at a standstill because of a three-party
boycott, rifts in the Democratic Party becoming apparent, and
an intense battle raging over the new constitution. -Robert Austin


ALBANIA EXTENDS ANOTHER OLIVE BRANCH TO GREECE. After weeks of
tense exchanges between Albania and Greece, Reuters reported
on 23 July that Albanian Foreign Minister Alfred Serreqi has
reiterated an earlier call to normalize relations. Serreqi said
that Albania wants to resolve disputes because relations with
Greece "are important not only in the bilateral dimension but
for the entire Balkans." Ties between the two countries were
strained after Albania expelled a Greek Orthodox cleric on 25
June and Greece responded with the deportation of thousands of
illegal Albanian migrants. Earlier this month, Greek Prime Minister
Constantine Mitsotakis suggested that Albania must reinstate
the cleric and improve its stand on Greek minority rights in
southern Albania before any progress could be made. -Robert Austin


FIRST ELECTION DEADLINE PASSES IN POLAND. More than 500 Senate
candidates managed to beat the midnight deadline on 26 July and
submit the 3,000 supporting signatures required to register for
the September elections, Polish TV reports. These candidates
will vie for 100 seats in the upper house. Only 25-candidates
had registered before the final frantic weekend of canvassing.
The last-minute rush to file suggested that most parties had
trouble collecting supporting signatures. Public interest in
the elections appears to be low. Poll results published in Rzeczpospolita
on 26-July showed that 55% of the respondents discuss the elections
rarely and 24% not at all. Only one of the Senate candidates-the
wealthy businessman Aleksander Gawronik-admitted to working in
the past for the communist secret police. All candidates are
required to file a statement on past ties with the communist
secret police or intelligence services. The deadline for registration
for the Sejm elections is 10-August. -Louisa Vinton

UNEMPLOYMENT: THE MAJOR CAMPAIGN ISSUE? AS THE SEJM DEADLINE
APPROACHES, DISARRAY CONTINUES TO PLAGUE THE CENTER-RIGHT OPPOSITION
PARTIES. Despite repeated reports that the two rival right-wing
leaders, former Prime Minister Jan Olszewski and Center Alliance
leader Jaroslaw Kaczynski, are on the verge of a coalition agreement,
the Senate deadline passed without any announcement of a pact.
The proportion of seats to be allotted to each group is the contested
issue. The more stable parties have already chosen candidates
and opened their campaigns. Unemployment appears likely to be
the key issue. The Liberal Democratic Congress (KLD), which opinion
polls still show to be struggling below the 5% threshold, is
both the best organized and best funded. The KLD opened its campaign
on 19 July with a march through Warsaw to the accompaniment of
a brass band. An advertising blitz followed with the KLD's slogans:
"a million new jobs in four years" and "no slogans, just facts."
The Democratic Union, promoting its cadre of tested professionals,
is arguing that economic growth is the best solution to unemployment.
Meanwhile, the opposition parties have launched an assault on
the economic reform principles pursued since 1989. The former
communist Democratic Left Alliance (KPN) has adopted the slogan
"it doesn't have to be this way any more," while the populist
Confederation for an Independent Poland is promising full employment,
along with the party's "open budget" combination of fewer taxes
and more spending. The KPN's campaign slogan is: "enough destruction
of the Polish economy." -Louisa Vinton

SLOVAK GOVERNMENT APPROVES BORDER AGREEMENT WITH CZECHS. On 27
July the Slovak government approved a Czech-Slovak agreement
requiring that citizens of third countries cross the Czech-Slovak
border only at official crossings. Premier Vladimir Meciar reached
the agreement with his Czech counterpart, Vaclav Klaus, on 17
July. Slovak media quote Foreign Minister Jozef Moravcik as saying
that the wording of the agreement is the same as that adopted
by the Czech government on 21 July. Under the agreement, Czech
and Slovak citizens will continue to be able to cross the border
at any convenient point without special travel documents. The
new regulation is designed to limit the number of refugees entering
the Czech Republic on their way to Germany. -Jiri Pehe

NEW BORDER CROSSINGS BETWEEN SLOVAKIA, HUNGARY. Radio Budapest
reports that an agreement in principle has been reached to open
three new border crossing stations between Hungary and Slovakia.
The agreement came at the first ever official meeting by the
chiefs of the two states' customs administrations. The new stations
will open this year. -Karoly Okolicsanyi

WEAK WHEAT HARVEST IN HUNGARY. An Agricultural Ministry official
said that Hungary had the weakest harvest in 20 years, Hungarian
Radio reported on 23 July. With over two-thirds of the harvest
in, in some places the average yield is only about 5 tons per
hectare instead of the 9-10 tons expected. Drought, late sowing,
bad quality fertilizers, and uncertainty about ownership rights
were cited as reasons for the low yield. Some relief for farmers
may come from state-guaranteed wheat prices that were announced
the same day. -Karoly Okolicsanyi

NEW RADIO STATION FOR SOUTHERN HUNGARY. Hungarian Radio reports
that a private company has announced the start of FM broadcasting
next week. Radio Drava will broadcast from Osijek, Croatia, in
order to circumvent the Hungarian moratorium on assigning radio
frequencies in force because the government and the opposition
have been unable to agree on a new media law. The standoff has
effectively blocked the establishment of private radio and TV
broadcasting in Hungary. -Karoly Okolicsanyi

ILIESCU IN ARGENTINA. Romanian president Ion Iliescu is concluding
a two-day visit to Argentina, the first stop on his South-American
tour. He is scheduled to visit the nuclear plant of Embalse before
flying to Uruguay. On 27 July Iliescu conducted talks with president
Carlos Menem, Radio Bucharest reports. -Michael Shafir

GYPSY OFFICIALS PROTEST RACISM IN ROMANIAN MEDIA. At a news conference
in Bucharest on 27 July, officials representing Romanian Gypsies
protested racism in some media, RFE/RL and Radio Bucharest report.
They compared the language used in some press articles to that
used in the 1930s, "before 250,000 Romas were killed in [German]
concentration camps." Among other examples, they cited articles
appearing in Romania mare, a weekly published by Greater Romania
Chairman Corneliu Vadim Tudor. The officials criticized journalists
for stressing the ethnic background of Gypsy suspects in reports
of crime. The protesters say they will present the Council of
National Minorities with documentary evidence of their claims.
-Michael Shafir

LITHUANIAN ECONOMIC POLICY MEMORANDUM WITH IMF. On 27 July Prime
Minister Adolfas Slezevicius noted that significant progress
has been made in talks with IMF officials on the economic policy
memorandum that is required to obtain loans, Radio Lithuania
reports. The IMF delegation also had meetings with President
Algirdas Brazauskas and Bank of Lithuania Chairman Romualdas
Visokavicius. Slezevicius said that compromises had been reached
on various IMF suggestions, the most difficult being reduction
of inflation to 10% in 1994. The IMF Council still has to approve
the memorandum, which is expected to be signed by the end of
August. -Saulius Girnius

LITHUANIA: GOOD MONEY AFTER BAD? ON 26-JULY KESTUTIS LYNIKAS,
A CURRENCY EXPERT FROM AUSTRALIA AND ADVISER TO THE BANK OF LITHUANIA,
SAID THAT LITHUANIA WILL RECEIVE COMPENSATION IN AN AMOUNT YET
TO BE DETERMINED FROM THE AMERICAN BANK NOTE COMPANY FOR THE
POOR QUALITY LITAS (THE COUNTRY'S NEW CURRENCY) THAT IT PRINTED,
RADIO LITHUANIA REPORTS. Four high officials of the company held
talks with Bank of Lithuania Chairman Visokavicius on 23 July.
The company has agreed to print 10,- 20-, and 50-litas bills
with 11 or 12-protection features to replace current bills that
are less secure from counterfeiting. -Saulius Girnius

DEBATE ON NARVA. Yurii Mishin, Narva city council member and
leader of the Russian Citizens' Union, told the press in Moscow
on 26 July that there are about 11,000 Russian citizens living
in that city and that their number has doubled since 1 January.
He noted that if a majority of Narva's residents were to obtain
Russian citizenship, Moscow would have to consider the issue
of having jurisdiction over the city transferred to Russia. US
Ambassador to Estonia Robert Frasure told BNS the same day that
he thinks Estonia is not large enough to be divided into autonomous
areas and expressed the hope that the status of Narva and Sillamae
after the referendums would be solved peacefully. In an article
published in the International Herald Tribune of 27-July, Sweden's
Prime Minister Carl Bildt praises Estonia for submitting its
draft law on aliens for European examination and for changing
the controversial passages. Bildt urged Russia to show its commitment
to the independence of the former Soviet Baltic republics as
a part of its integration into European institutions." This is
the true test of its willingness and ability to abandon not only
the practices of the Soviet past, but also the Russian imperialist
ambitions of past centuries," Bildt writes. -Dzintra Bungs

[As of 1200 CET]

Compiled by Bess Brown and Charles Trumbull







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