No. 165, 30 August 1993

Radio Free Europe/Radio Liberty, Inc.





RUSSIA



PARLIAMENT OVERTURNS PRESIDENTIAL BUDGET VETO. On 27 August,
parliament voted by 151 to 3 to overturn President Boris Yeltsin's
veto of its draft budget, Reuters reported. The legislature gave
the government one week to raise additional revenues to financ
e the budget. (On 22 July, parliament had passed a law on the
1993 budget that provided for a deficit equivalent to 25% of
GDP. This was vetoed by the president on 18-August.) The parliament
also passed a resolution urging the dismissal of Finance Ministe
r Boris Fedorov, who was conspicuously absent from the afternoon
session. The IMF expressed concern at the budget vote. -Keith
Bush

PRESSURES ON STATE BUDGET. However well the government fares
in its struggle to bring down the deficit foreseen in the draft
budget for 1993, pressures for increased spending are likely
to remain strong throughout the rest of the year. According to
an art icle in Izvestiya on 27 August, state agricultural procurements,
now indexed to cost inflation, will continue to rise and, therewith,
subsidies to livestock raising. Financial assistance to the Northern
regions will also grow as a result of rising food an d transportation
costs, recently liberalized energy prices, and investments associated
with the conversion program. The Izvestiya article also warned
that Deputy Prime Ministers Oleg Soskovets, Oleg Lobov and Aleksandr
Zaveryukha continue to lobby energet ically for additional subsidies
to industry and agriculture. -Erik Whitlock

RUSSIA AND JAPAN: NO PROGRESS ON KURILS, VISIT. Two days of talks
in Tokyo between deputy foreign ministers from Russia and Japan
failed to yield progress either on an approach to resolving the
Kuril Islands territorial issue or on setting a date for a vi
sit to Japan by President Yeltsin. Tokyo, apparently angered
over intransigent remarks made earlier this month (and repeated
on 27 August) by Prime Minister Viktor Chernomyrdin, appeared
to harden its own stance on the issue. Kyodo quoted Japanese
Foreign Minister Tsutomu Hata on 27 August as saying that Japan
would maintain the former Japanese leadership's policy of linking
economic aid for Russia to resolution of the territorial dispute.
In fact, it had been expected that Tokyo might de-emphasize that
l inkage further. Russian Deputy Foreign Minister Georgii Kunadze
proclaimed following the talks that Moscow had never pursued
negotiations on transferring any of the disputed islands to Japan,
ITAR-TASS reported. The two sides plan to resume talks on the
Y eltsin visit when their Foreign Ministers meet in New York
in late September. -Stephen Foye

CHERNOMYRDIN IN RUN-UP TO US VISIT. In remarks to reporters on
27 and 29 August reported by ITAR-TASS and Russian TV Prime Minister
Chernomyrdin said that some five agreements, already initialed,
are expected to be signed during a long-awaited visit to th e
US that began on 29 August. The agreements involve Russian-American
cooperation in two areas: space technology and fuel and energy
production. Commissions have been set up in each country, the
co-chairmen of which are US Vice President Albert Gore and C
hernomyrdin himself, to deal with these issues. Chernomyrdin,
who began his visit in Houston, said that he did not expect tensions
between Washington and Moscow over the suspension of Russia's
military withdrawal from Lithuania to affect negotiations. Che
rnomyrdin had earlier canceled a visit to the US owing to a row
between the US and Russia over the planned sale of rocket technology
by Russia to India. -Stephen Foye

AWARE OF CRITICISM FROM THE RIGHT. Signaling an awareness of
potential criticism from Russia's nationalist right for having
"sold out" Russian national interests to the US, Chernomyrdin
also stressed that the agreements with the US did not constitute
"aid ," and said that Russia asked only equal access to world
markets, particularly in the area of space technology. He said
that cooperation with the US in space would bring Russian enterprises
significant profits and would save jobs. In an apparent reference
to NATO, Chernomyrdin called for an end to military blocs, suggesting
that "blocs" should only be formed to promote joint economic
goals. -Stephen Foye

FEDOROV: CABINET OPPOSED TO CONCESSIONS. The former governor
of Sakhalin, Valentin Fedorov, told Kyodo on 27 August that the
overwhelming majority of Russian cabinet ministers opposes the
return of any of the Kuril Islands to Japan and that Prime Minister
Viktor Chernomyrdin had demonstrated clearly his understanding
"that the Kuril Islands are ours." Fedorov, now an official at
the Ministry of Economics, also said that the government would
soon endorse a plan for the economic development of the islands
a nd that maintaining their status as Russian territory is a
precondition for that plan. Kyodo reported that Fedorov is in
charge of that development. The phalanx of opposition that has
lined up against concessions on the islands suggests that, once
again, Boris Yeltsin will have little room to maneuver on the
issue. -Stephen Foye

PARLIAMENT RETRACTS RESTRICTIONS ON MISSIONARIES. The parliament
retracted on 27 August its earlier attempt to restrict the activities
of foreign missionaries in Russia. ITAR-TASS reported that the
deputies accepted amendments proposed by Yeltsin, who ref used
to sign the original draft law approved by the parliament in
July. The amendments eliminate the first draft's ban on religious
proselytizing by foreigners in Russia before they obtain state
accreditation. The original legislation was supported by the
Russian Orthodox Church, but severely criticized in the liberal
Russian press and by religious and political figures abroad.
The new draft law now goes back to Yeltsin for signature. -Vera
Tolz

RYABOV UNDER FIRE. The leadership of parliament has decided to
include the question on the performance of deputy parliamentary
chairman Nikolai Ryabov on the agenda of the next parliamentary
session, Ekho Moskvy reported on 27 August. Ryabov-formerly an
a lly of parliamentary speaker Ruslan Khasbulatov-has distanced
himself from the parliamentary hard-liners after the April referendum
and approached the camp of President Yeltsin. Khasbulatov stated
that Ryabov has become "a bad deputy." Many hard-line depu ties
have demanded that Ryabov be dismissed. -Alexander Rahr

INGUSHETIA TO HOLD REFERENDUM ON LEAVING RUSSIA? INGUSH PRESIDENT
RUSLAN AUSHEV SAID ON 27 AUGUST THAT, IF THE CONGRESS OF THE
PEOPLE'S OF INGUSHETIA DECIDED ON 7-SEPTEMBER THAT INGUSHETIA
SHOULD LEAVE RUSSIA, A REFERENDUM ON THE MATTER WOULD BE HELD
TOWA RDS THE END OF SEPTEMBER, RADIO ROSSII AND RUSSIAN TELEVISION
REPORTED. Aushev said it would be the only way out of the situation
in which the republic found itself. Aushev maintained that the
Russian leadership had done nothing to remedy the situation an
d more than 64,000 Ingush refugees had still not been returned
to their permanent places of residence in North Ossetia. -Ann
Sheehy

COMMISSION TO INVESTIGATE FOREIGN MINISTRY. Work on setting up
a parliamentary commission to investigate the activities of the
Russian Foreign Ministry is continuing. On 27-August, the parliament
confirmed that a commission would operate to "study and tho roughly
appraise the activities of the Foreign Ministry." The commission
is to be chaired by Viktor Zhigulin, deputy chairman of the parliament's
Council of the Republic. Among the other members, ITAR-TASS listed
Evgenii Ambartsumov, Mikhail Astafev, Alek sandr Dzasokhov, Evgenii
Kozhokin, and Ivan Shashiashvili. The creation of the commission
has been discussed for some time. In view of Russia's current
political climate and the unpopularity of Foreign Minister Andrei
Kozyrev, the commission will probably spearhead attempts to discredit
Russia's current foreign policy course, perhaps by seeking out
wrong-doing and corruption. -Suzanne Crow

TRANSCAUCASIA AND CENTRAL ASIA



HEAVY TURNOUT IN AZERBAIJAN REFERENDUM. Armed units subordinate
to the Azerbaijan Popular Front occupied Nakhichevan airport
on 27 August and prevented the unloading of voting papers for
the 29-August referendum, Assa-Irada reported; a further allegation
that supporters of ousted President Abulfaz Elchibey attacked
broadcasting facilities in Nakhichevan was refuted in a fax from
Elchibey's headquarters to RFE/RL. Western agencies quoted Azerbaijani
officials as claiming that more than 90 per cent of the e lectorate
participated in the referendum, of whom the majority replied
in the negative to the question: "Do you have confidence in President
Abulfaz Elchibey?" Results are not expected for three days; but
it is anticipated that the tacit affirmation of su pport for
Supreme Soviet chairman Geidar Aliev will pave the way for new
presidential elections. Elchibey, who had called for a boycott
of the referendum on the grounds that it was illegal, was quoted
by the Los Angeles Times on 30 August as claiming that voting
had been rigged. -Liz Fuller

GAMSAKHURDIA FORCES SEIZE THREE TOWNS IN WESTERN GEORGIA. Armed
supporters of ousted Georgian President Zviad Gamsakhurdia armed
with heavy artillery occupied the west Georgian towns of Senaki,
Abasha and Khobi on 28 August, killing two people and taking
a Georgian general hostage, Western agencies reported. On 29
August ITAR-TASS quoted Georgian parliament chairman Eduard Shevardnadze
as threatening unspecified "grave consequences" if the rebels
refused to withdraw. Mkhedrioni chairman Dzhaba Ioseliani t old
Reuters his men were assembling in Poti ready to crush the rebels.
-Liz Fuller

ACRIMONIOUS DEBATE OVER NEW GEORGIAN GOVERNMENT. At a session
of the Georgian parliament on 29 August, opposition deputies
sharply criticized parliament chairman Eduard Shevardnadze's
proposals for streamlining the government by reducing the number
of min istries from 19 to 16 and abolishing the presidium of
the Cabinet of Ministers, Radio Tbilisi reported. -Liz Fuller


TURKEY ACCUSES ARMENIA OF SUPPORTING PKK. The Turkish Daily News
has accused Armenia of cooperation with the Kurdish guerrilla
organization PKK, according to the Frankfurter Allgemeine Zeitung
of 28-August. The PKK is alleged to maintain six training camp
s in Armenia. Armenia has consistently rejected such allegations,
most recently in July of this year. Turkish Prime Minister Tansu
Ciller is scheduled to visit Moscow next week to discuss the
Karabakh crisis and prospects for Turkish-Russian economic coop
eration, including the optimum route for the planned oil pipeline
from Baku through Turkey, Reuters reported on 27-August. -Liz
Fuller CIS

COMMITTEE COMPLETES WORK ON DRAFT TREATY ON ECONOMIC UNION. At
its session in Minsk on 27 August the CIS Coordinating-Consultative
Committee completed work on the draft treaty on creating an economic
union, ITAR-TASS reported. The draft will be presented to the
CIS leaders at their summit on 7 September. Russian Deputy Prime
Minister Aleksandr Shokhin said that all differences were resolved
except whether the new body should be called a "community" or
a "union." Shokhin also stated that Russia, Ukraine, a nd Belarus
had agreed on closer integration despite the fact that it will
be seen by some political forces as a partial abdication of sovereignty.
Shokhin added that the number of countries drawing up the basic
documents on the new economic community had been deliberately
restricted in order to speed up the work, but other countries
could adhere to the community later either fully or partially.
-Ann Sheehy

CENTRAL AND EASTERN EUROPE



"THE FINAL POLITICAL SOLUTION" TO THE BOSNIAN CRISIS IS HOW BOSNIAN
SERB LEADER RADOVAN KARADZIC DESCRIBED THE GENEVA PEACE PLAN,
WHICH THE BOSNIAN SERB PARLIAMENT ENDORSED IN A 28 AUGUST VOTE
IN PALE NEAR SARAJEVO. International media added that he warne
d the Muslims to accept the package or "lose everything." The
mainly Muslim Bosnian parliament, however, agreed simply to take
the proposal as a basis for further negotiations. They want the
return of eight formerly Muslim-majority areas ethnically cleans
ed by the Serbs, international guarantees that the plan will
be rigorously put into place, and an Adriatic port of their own
in place of the proposed access to a Croat port. Talks are slated
to resume in Geneva on 30 August. -Patrick Moore

CONTINUED ROWS AMONG CROATS OVER THE GENEVA PLAN . . . International
media further reported that the parliament of the "Croatian Community
of Herceg-Bosna" met on 28-August and formally proclaimed that
polity a republic, following a decision taken earlier by the
ruling party. The legislature, however, made no formal decision
on the Geneva package, but authorized the delegation headed by
Mate Boban to renegotiate for better terms in central Bosnia
and Mostar. This formula partly reflects the rift between th
e Herzegovinian Croats on the one hand, who are by and large
happy with the plan except for the terms dealing with Mostar,
and the Bosnian Croats on the other, who stand to give up permanently
much of the land they lost in fighting with the Muslims since
t he spring. Meanwhile, political strife continues in Croatia
over what is often regarded as President Franjo Tudjman's one-sided
support for the Herzegovinians at the expense not only of the
Bosnians but also of Croatia's own interests. The latest issue
of Nedjeljna Dalmacija calls for no further cooperation with
the Serbs in Bosnia until Serbia and Montenegro first recognize
Croatia in its Tito-era frontiers, 25% of which is now under
Serb rebel control. Vjesnik of 28 August similarly quotes liberal
opposi tion leader Drazen Budisa as saying that Croatia must
first concern itself with its own territorial integrity, and
only then with the future of Bosnia. -Patrick Moore

. . . WHILE FIGHTING CONTINUES APACE. The BBC's Serbian Service
on 30 August reports ongoing combat between Croats and Muslims
around Gornji Vakuf and Kiseljak, and between Croats and Serbs
on the one hand and Muslims on the other around Mostar. Muslims
civilians in that city continue to block the departure of a UN
relief convoy, and the Spanish commander has said that his 60
men are hostages. The Muslims say that the convoy's presence
protects them from Croat attack, but UN officials are furious
at the M uslims' behavior and the Spanish have refused to patrol
the area as the Muslims want. -Patrick Moore

YUGOSLAV ARMY GENERALS PURGED. Belgrade dailies and Radio and
TV Belgrade reported on 27-August that 42 generals of the federal
Yugoslav army, including the Chief of Staff Col. Gen. Zivota
Panic, have been officially retired. The Supreme Defense Council
of Yugoslavia announced the retirements last month but they were
not acted upon until 26-August. The move leaves most army corps
and other important military institutions without commanders.
Speculation is rampant, and observes are pondering what effect
the move will have on the political balance in the military.
The latest reductions in force bring the number of generals down
to the level foreseen in the major military reform earlier in
the year. Some 170 generals and admirals have been retired since
the s pring of 1992 and only 7-generals now remain in key positions.
One is rector of the military academy, another is head of the
military legal department, and the remaining five are field officers.
The retirements have to an extent upset the political balance
a nd may signal a political struggle within and around the Yugoslav
Army. Moderates close to Gen. Panic are gone as well as hard-line
generals who have been involved in the war in Bosnia and who
are close to Serbian Radical Party leader Vojislav Seselj and
paramilitary leader "Arkan." The new chief of staff, Lt. Gen.
Momcilo Perisic, shows no strong political preferences but has
combat experience in Croatia and eastern Herzegovina and was
likely a compromise choice among key political forces in Belgrade-nam
ely between Slobodan Milosevic and Seselj. The media describe
Perisic as a skillful professional and well-respected officer.
-Milan Andrejevich

ALBANIAN SOCIALISTS RETURN TO PARLIAMENT. Zeri i Popullit reports
on 28 August that after a two-month boycott, initiated originally
because of delays over the drafting of a new constitution but
with their resolve strengthened after the arrest of party lea
der Fatos Nano, the Socialists are finally returning to parliament.
It is clear that the members of the Socialist Party, the main
opposition to Albania's ruling Democratic Party, feel that they
can no longer afford to remain outside the legislature and be
an effective political force. -Robert Austin

POLAND DEVALUES THE ZLOTY. The Polish National Bank devalued
the zloty by 8% against a weighted basket of Western currencies
on 27 August, PAP reports. The average exchange rate for the
US dollar rose to 19,728 zloty on 27 August. National Bank President
Hanna Gronkiewicz-Waltz said the devaluation was necessary to
reverse Poland's negative trade balance and halt the decline
in hard currency reserves. Polish TV reports that the trade deficit
has reached $1.5 billion. The devaluation is a boon to exporters
but will make imports more expensive. Government officials predict
that the devaluation will cause only minimal additional inflation
of about 1%. The decision came shortly after the arrival of an
IMF mission to assess Poland's compliance with the latest agr
eement. The devaluation thus appears to have the IMF's assent.
-Louisa Vinton

SUCHOCKA BEGINS ELECTION CAMPAIGN. At a Democratic Union (UD)
rally on 28-August, Prime Minister Hanna Suchocka formally joined
her party's election campaign. The job of prime minister comes
first, she said, adding that she will campaign only on weekends.
In her speech to 500 candidates, Suchocka said the UD seeks agreement
but will never accept "irrational economic decisions" forced
on it by parties or the trade unions. The UD is "honesty and
responsibility," she said. It does not make "empty promises"
or accept "compromises at any price." UD leader Tadeusz Mazowiecki
said that "there is no other path for Poland than to strengthen
democracy and the social market economy." Labor Minister Jacek
Kuron urged sealing "social pacts" to counter deep public dissa
tisfaction. "Nothing can be achieved without social consensus,"
he noted. Tygodnik Powszechny editor Jerzy Turowicz drew loud
applause when he defended the idea of an "ideologically neutral
state," PAP reports. The two UD slogans stressed at the rally
wer e: "the economy first" and "it's more pleasant with the UD."
-Louisa Vinton

COMMEMORATIONS OF SLOVAK NATIONAL UPRISING. Several thousand
people attended ceremonies held on 29 August in Martin to commemorate
the 49th anniversary of the Slovak uprising against the Nazis.
TASR reports that in a speech to the gathering Prime Minister
Vladimir Meciar expressed regret over the fate of those people
who had fought fascism only later to suffer under yet another
totalitarian regime. The premier also said that Slovakia is now
seeking to join NATO, since it regards it as "the only effectivel
y built structure in Europe." Slovakia, he said, wants to build
a system that will protect the honor of the human being and offer
equal rights and duties to everyone. Parliament Chairman Ivan
Gasparovic and the Czech, US, and French ambassadors were also
present at the ceremonies. On 27-August Czech President Vaclav
Havel, Prime Minister Vaclav Klaus, and Parliament Chairman Milan
Uhde participated in a banquet organized by the Slovak ambassador
to Prague, Ivan Martjan, to commemorate the uprising. -Jiri Pehe


KLAUS IN SWEDEN. Czech Prime Minister Vaclav Klaus left for a
three-day official visit to Sweden, CTK reports on 29 August.
He is scheduled to discuss economic and political cooperation
with his Swedish counterpart Carl Bildt and with Foreign Minister
Marg aretha af Ugglas. Klaus will also deliver a lecture at Stockholm's
Institute for East European Economies and meet with Swedish business
leaders. Before his departure from Prague, Klaus told journalists
that he will seek to meet with German Chancellor Helm ut Kohl
at a congress of the European Democratic Union in Budapest on
1 September. The prime minister said that he wants to learn from
the chancellor whether it is true that he supports Sudeten German
claims towards the Czech Republic. According to Klaus, Sudeten
German representatives repeatedly claimed that Kohl is supporting
their position. -Jan Obrman

FRENCH DEFENSE MINISTER IN HUNGARY. On 26-27 August Francois
Leotard paid an official visit to Hungary at the invitation of
Hungarian Defense Minister Lajos Fur, MTI reports. Leotard also
met with Prime Minister Jozsef Antall, President Arpad Goncz,
and ot her ministers and members of the military. At a press
conference Leotard said that the time has not come yet to admit
the countries of Eastern Europe into NATO, but he also stressed
that Paris is not against Hungary's NATO membership. He suggested
that su ch decisions must be made at NATO's expanded meeting
planned for next January. Leotard outlined a comprehensive European
security plan worked out by Prime Minister Edouard Balladur that
would include talks about the fate of European minorities and
border questions. Leotard expressed his government's recognition
and appreciation of the way Hungary has handled the problems
encountered as a result of the Yugoslav conflict. -Judith Pataki


HUNGARIAN MEDIA WORKS ON ELECTION CODE. At the initiative of
Magyar Hirlap, several press organs, including Hungarian Radio
and TV and the two journalists' unions, held a meeting on 29
August to work out a media code of ethics during the next national
ele ctions, MTI reports. The participants accepted guidelines
on reporting findings of opinion polls and agreed upon the way
to treat political advertisement. The discussions are expected
to continue. -Judith Pataki

CABINET RESHUFFLE IN ROMANIA. A long-awaited reorganization of
the minority cabinet was made public on 28 August. The reshuffle,
which involved four ministers and several deputy ministers, has
been generally perceived as mostly cosmetic. Most significant
we re the appointment of Mircea Cosea, a university economist,
as head of the Council for Economic Coordination, Strategy and
Reform in the place of Misu Negritoiu, who was named an advisor
to President Ion Iliescu, and the replacement of Trade Minister
Cons tantin Teculescu with Cristian Ionescu, a former trade attache.
Prime Minister Nicolae Vacaroiu said that the changes are meant
to speed up privatization and reform. The two other ministers
who lost their seats were Culture Minister Mihai Golu and Youth
a nd Sports Minister Gheorghe Angelescu. They were replaced by
Petre Salcudeanu, a writer, and Alexandru Mironov, a former Iliescu
spokesman. -Dan Ionescu

MOLDOVANS ON RUSSIA'S POLICY. President Mircea Snegur told Nezavisimaya
Moldova of 27 August, the second anniversary of Moldova's independence,
that Russia's political preconditions to the withdrawal of its
troops from Moldova contravene Russia's obligati ons under international
law and reduce the chances of a peaceful political solution to
the Dniester conflict. By linking an eventual withdrawal to the
grant of a special political status to the Transdniester, Moscow
encourages Tiraspol to persist in demand ing Moldova's confederalization,
creating "a vicious circle without an end in sight. "Reactionary
and reformist forces in Russia, while in conflict internally,
"sometimes agree in asserting Russia's strategic interests in
this or that region of Eurasia." T he negotiations on Transdniester
test "the real intentions and plans of Russia's leadership regarding
Moldova's independence," Snegur said. Meanwhile, Anatol Taran,
Moldova's ambassador to Russia, told a news conference in Moscow
on the second anniversary of Moldova's independence that Moldova
insists on the withdrawal of Russia's 14th Army by 1 July 1994,
Ostankino TV and Russian TV reported. While Russia makes the
withdrawal contingent on a political resolution of the conflict,
the presence of that army enables the Transdniester leaders "to
deliberately raise unacceptable demands" and "foil every effort
to settle the situation." -Vladimir Socor

BULGARIANS MARK 50TH ANNIVERSARY OF KING'S DEATH. Several thousand
Bulgarians gathered at the Rila Monastery on 28 August to commemorate
the death of King Boris III, who died in 1943. Led by Patriarch
Maksim, the head of the Bulgarian Orthodox Church, the memorial
service was attended by Boris's widow, former Queen Ioanna, and
her daughter Marie-Louise. Ioanna, who along with her children
was forced into exile by the communist government, is on her
first visit to the country in 47 years. Before the ceremon y,
bystanders chanted their support for restoring the monarchy in
Bulgaria. -Kjell Engelbrekt

UKRAINIAN REFORMIST MINISTER RESIGNS. In a TV interview on 27
August, the deputy prime minister in charge of economic reform,
Viktor Pynzenyk, announced his resignation, agencies report.
Pynzenyk said he is quitting because the conservative parliament
is making it impossible to implement economic reform, and because
Prime Minister Leonid Kuchma has lost control of the situation.
He specifically cited the new currency regulations that require
exporters to exchange half of their hard-currency earnings at
a fi xed rate with the national bank (a decision taken "behind
his back") as prompting his resignation. In addition, Pynzenyk
said that while Ukraine's enormous debt to Russia requires urgent
measures, no formal economic reform plan has been approved. Pynzenyk
was the government's main advocate of market reforms and enjoyed
the support of Western financial experts. He said his decision
to resign was taken without consulting those around him, and
insisted that it was final. Following Pynzenyk's resignation,
Prime Minister Kuchma predicted that the fall of his government
was imminent, Reuters reported on 29 August. He said Pynzenyk's
statement shows that it is impossible to create an economic reform
program that would be accepted by parliament. The key to progress
, he said, is to replace the parliament, which enjoys less than
20% popular support according to polls. -Ustina Markus

RUSSIAN TROOPS TO LEAVE LITHUANIA BY END OF MONTH. On 30 August
President Algirdas Brazauskas announced that in a telephone conversation
with Boris Yeltsin it was agreed that the Russian troops would
depart Lithuania by the end of August, Radio Lithuania reports.
He said that a summit meeting with Yeltsin will be held in September
at which a most-favored-nation trade agreement between the two
countries will be discussed further. The question of compensation
for damages would also be a topic for discussion . -Saulius Girnius


BALTIC SUMMIT. On 27 August presidents Lennart Meri (Estonia),
Guntis Ulmanis (Latvia), and Algirdas Brazauskas (Lithuania)
held a summit meeting in Jurmala along with the countries' premiers
and defense ministers, Radio Lithuania reports. The presidents
issued statements on the withdrawal of Russian troops from their
territories and on the intention to integrate into the European
Community as well as the text of a letter to UN Secretary-General
Boutros Boutros-Ghali requesting the appointment of a specia
l official to assist the resolution of problems on the withdrawal.
The premiers decided to sign a tripartite free trade agreement
at their next meeting on 13 September in Tallinn. The defense
ministers signed a declaration of cooperation in security matter
s and a trilateral defense cooperation treaty may also be signed
at the premiers' upcoming meeting. -Saulius Girnius

TALLINN'S LARGEST DAILY NEWSPAPER PRIVATIZED. On 27 August Estonian
Centrist Party Chairman Edgar Savisaar issued a statement calling
the decision by the Privatization Agency to sell Rahva Haal to
the Maag joint stock company "a political and economic sca ndal,"
BNS reports. Savisaar said that even though the Hommikuleht joint
stock company had submitted a higher bid, Maag won because of
its direct links with the ruling Pro Patria Party. Maag's plans
to invest 7 million kroons into the paper, much more tha n Hommikuleht,
may have been a factor in the council's decision. -Saulius Girnius


[As of 1200 CET] Compiled by Erik Whitlock and Charles Trumbull







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