No. 212, 04 November 1993

Radio Free Europe/Radio Liberty, Inc.





RUSSIA



GRACHEV COMMENTS ON DOCTRINE. At a press conference on 3 November,
Defense Minister Pavel Grachev commented on Russia's new military
doctrine. He criticized the defunct parliament for passing legislation
damaging to the military, most notably by expanding draft exemptions
and including a clause in the Law on Defense limiting the size
of the military to no more than 1% of the total population. The
draft exemptions are blamed by the military for causing an unprecedented
personnel shortfall, and it is possible that they may be altered
by presidential decree. Grachev's criticism of the limit on military
strength raises doubts as to whether the current plan to cut
force size to 1.5 million by 1995 will be implemented, or whether
a larger force will be created. Grachev also noted that the doctrine
will incorporate both offensive and defensive options, and that
Russian military equipment capabilities will not fall below Western
levels. His remarks were carried in Russian and Western news
media. -John Lepingwell

NUCLEAR WEAPONS AND THE NEW DOCTRINE. One striking feature of
the doctrine is Russia's willingness to consider the first use
of nuclear weapons. The non-first-use of nuclear weapons was
a central feature of Soviet policy, at least in rhetoric, if
not in reality. (Information concerning Soviet war plans that
emerged after the collapse of the Warsaw Pact indicated that
first-use was an option for Soviet planners.) However, the conditions
under which such use might be possible are unclear. During Grachev's
remarks, as carried by Radio Moscow, he noted that Russia would
not use force except in self defense and that it would observe
"the guarantees of not using nuclear weapons against signatory
states to the nuclear nonproliferation treaty (NPT) of 1 July
1968, which do not possess nuclear weapons." The latter may be
a veiled reference (or threat) to Ukraine, which has not yet
ratified the NPT, and which claims to possess nuclear weapons.
-John Lepingwell

DOCTRINE WILL NOT BE PUBLISHED. Valerii Manilov, deputy chairman
of the Russian Security Council, told ITAR-TASS on 3 November
that the full text of the new doctrine will not be published,
although some of its provisions will appear in the press. He
noted that President Boris Yeltsin does not intend to address
the country concerning the doctrine and that the means of implementing
the doctrine have yet to be elaborated. -John Lepingwell

KOZYREV ON EASTERN EUROPE. Speaking at a 3-November session of
the Foreign Policy Council of the Foreign Ministry, Andrei Kozyrev
said that Russia is radically revising and reconsidering its
interests in Eastern Europe. The first stage of building a new
relationship is complete, Kozyrev said, apparently referring
to Russia's expressed desire to remove the "stumbling blocks
left from the socialist period." Russia wishes to see Eastern
Europe act as a bridge between Russia and Western Europe. Kozyrev
reiterated Moscow's opposition to the expansion of NATO eastwards,
short of Russia, as well as its desire to expand trade and economic
cooperation, Interfax and ITAR-TASS reported. -Suzanne Crow

YELTSIN ENCOUNTERS CONTINUING RESISTANCE FROM REPUBLICS OVER
CONSTITUTION. At a meeting with the heads of Russia's republics
and regions on 3-November to discuss the draft constitution,
Yeltsin said he wanted their agreement on four points, namely
that ministers and the heads of executive power in the republics
and regions should be able to stand for parliament, that the
federal treaty be excluded from the text of the constitution,
that the words "sovereign" and "sovereign state" with regard
to the republics be removed, and that the republics and other
subjects of the federation should have equal rights, ITAR-TASS
reported. Yeltsin also suggested that the members of the Constitutional
Court should be reelected. After a two-hour discussion the vast
majority are said to have approved the draft constitution "on
the whole." The chief sticking point was the relative status
of the republics and regions, with the republics still insisting
on their superior status. In the hope of reaching a compromise
a working group was set up consisting of the presidents of Karelia
and Sakha (Yakutia), the mayor of Moscow, the head of administration
of Leningrad oblast, the head of the presidential administration
Sergei Filatov, and deputy premier Sergei Shakhrai. If it does
not reach an agreement, Yeltsin himself will decide the issue.
-Ann Sheehy

BLOCS FACE PROBLEMS COLLECTING SIGNATURES. Most electoral blocs
are facing a fiasco, said Fedor Shelov-Kovedyaev in remarks to
a member of the Constitutional Assembly. He told the RFE/RL Research
Institute on 3 November that neither Grigorii Yavlinsky's nor
Sergei Shakhrai's blocs have come close to collecting the 100,000
signatures needed for participation in the parliamentary elections.
The leaders of the Civic Union and the Christian Democrats, Arkadii
Volsky and Viktor Aksyuchits, respectively, also said they have
not yet collected the required signatures. Shelov-Kovedyaev said
that people are afraid of supporting blocs whose leaders had
been close to the dissolved parliament. He predicted that only
the pro-Yeltsin bloc "Russia's Choice", the communists and the
pro-fascist bloc of Vladimir Zhirinovsky would qualify for the
elections. -Alexander Rahr

MOSCOW BANS DEMONSTRATIONS ON 7 NOVEMBER. Russian and Western
agencies said leaders of Russia's several communist parties met
with Moscow city officials on 2 November to protest the city's
ban on all public demonstrations marking the anniversary of the
Bolshevik Revolution on 7 November. The reason given was that
some of the groups that planned to rally that day had sided with
parliament. During the talks the party leaders said the ban could
provoke violence. City officials said the ban would stay on rallies
in downtown Moscow but permission might be given for the use
of the Luzhniki sports stadium. -Elizabeth Teague

YAKUNIN REMOVED FROM PRIESTHOOD. The Synod of the Russian Orthodox
Church has deprived Gleb Yakunin of his priestly office because
of his participation in the election campaign, Interfax reported
on 3 November. The Moscow Patriarchate has banned clergymen from
participating in the elections. -Alexander Rahr

CHERNOMYRDIN REVIEWS THE ECONOMIC SITUATION. Addressing an extended
cabinet session on 2-November, Prime Minister Viktor Chernomyrdin
described the current state of the economy as in "unsteady equilibrium,"
Russian and Western agencies reported. During the first 9 months
of 1993, GDP and industrial output were 11% and 16.5% respectively
lower than in the same period of 1992. The budget deficit in
1993 is expected to amount to 17-trillion rubles and while monthly
rates of inflation have fallen, they remained high at 30% in
August, 21% in September, and 19% in October. Chernomyrdin declared
that the period of shock therapy was over, and that the worst
was past, but warned of high unemployment to come in 1994. -Keith
Bush

FAVORABLE FOREIGN TRADE BALANCE. Chernomyrdin also reported that
Russia expected a foreign trade surplus of $21.1 billion in 1993,
after a 1992 surplus of $3.1 billion. Exports have held steady,
while imports have been halved. This comes after the publication
of a Western study, summarized in The Financial Times of 1 November,
which calculated that Russian banks in mid-1993 held some $15.5
billion in correspondent and investment accounts in Western banks.
The Russian banks have made less than $500 million of this available
to customers within Russia because of a lack of mechanisms to
ensure repayment. -Keith Bush

BORIS FEDOROV ON THE RCB AND UNEMPLOYMENT. Finance Minister Boris
Fedorov gave a wide-ranging interview to The Wall Street Journal
and Handelsblatt of 1 November. He predicted major changes in
the role of the Russian Central Bank, which could become "the
most important part of the government." He indicated that the
present chairman, Viktor Gerashchenko, will soon be removed and
confirmed that he is still interested in the job. The government
intends to curb or abolish subsidies to industry; this could
raise the unemployment figure in 1994 to 10-million. However,
according to Fedorov, it costs three times more to support an
unproductive worker through industry subsidies than it does to
pay him unemployment benefits. He put the total cost of cheap
credits, price supports, and other subsidies for the agricultural
sector at 10 trillion rubles in 1993, i.e., nearly 60% of the
budget deficit of 17 trillion rubles. -Keith Bush

AGRICULTURAL LOBBY SUBMITS ITS WISH LIST. The All-Russian Meeting
of Regional Agricultural Executives has submitted an appeal to
the government, The Journal of Commerce reported on 3 November.
The appeal is seen as listing favors that the agricultural lobby
expects in return for its acceptance of the land reform decree.
The demands include the allocation to the farm sector of 15%
of hard-currency revenues from exports (i.e., roughly $6-billion
a year); the introduction of minimum purchase prices to correct
the "scissors crisis" or imbalance between the prices of agricultural
producer goods and purchase prices for produce; and the introduction
of protective customs duties and the end of government subsidies
on agricultural imports. An agriculture ministry official is
quoted as saying that the lobby's demands may be met before the
12 December election. -Keith Bush

TRANSCAUCASIA AND CENTRAL ASIA



RUSSIAN TROOPS ABOUT TO LAND IN GEORGIA? GEORGIAN GOVERNMENT
FORCES CONSOLIDATED CONTROL OVER KHOBI, SOUTHEAST OF ZUGDIDI,
ON 3 NOVEMBER, AFP REPORTED. Radio Tbilisi claimed that ousted
president Zviad Gamsakhurdia had moved his headquarters from
Zugdidi to Gali, in Abkhazia, and that he had appointed an Abkhaz
commander to replace Loti Kobalia as the leader of his troops.
AFP reported on 3 November that a Georgian freelance cameraman
working for Worldwide Television News was executed by Gamsakhurdia's
men after being charged with espionage. Russian troops with tanks
and armored vehicles were poised to land in Poti early on 4 November,
reportedly either to protect international shipping or to help
secure the functioning of rail links from the Black Sea to Tbilisi,
Armenia and Azerbaijan, Interfax and ITAR-TASS reported. -Liz
Fuller

KAZAKHSTAN TO LEAVE RUBLE ZONE. Speaking at a press conference
in Moscow on 3-November following talks with Russian Prime Minister
Chernomyrdin, Kazakh Prime Minister Sergei Tereshchenko announced
that Kazakhstan will leave the ruble zone before the end of this
year because Russia is imposing "unacceptable conditions" i.e.
maintaining large gold and hard currency reserves on deposit
in Russia-for using the new ruble, Reuters reported. The two
prime ministers signed a series of documents on economic cooperation
covering trade payments, customs regulations and frontier crossing
procedures, reported ITAR-TASS. -Liz Fuller

CIS

BALTIN SAYS BLACK SEA FLEET CAN BE REDUCED. Molod Ukrainy reported
on 2-November that the Black Sea Fleet is to be reduced before
it is divided between Russia and Ukraine. The commander of the
fleet, Admiral Eduard Baltin, said in an interview that the fleet
could be cut by 15-20% without decreasing its battle-readiness
or harming the officer corps. Sources close to the fleet's staff
say that a more radical reduction of 45% is sought. So far the
press center of the Black Sea Fleet has not confirmed these rumors,
although it is known that there will be a drastic reduction of
the fleet. At the same time, the Ukrainian fleet continues to
grow. At the end of November a small vessel, the "Lutsk," will
be launched, and at the beginning of next year the construction
of the cruiser "Bohdan Khmelnytsky" will be complete. -Ustina
Markus

CENTRAL AND EASTERN EUROPE



CROATIAN FORCES ABANDON VARES. International media reported on
3 November that Croatian troops pulled out of the central Bosnian
Croatian enclave in anticipation of a massive assault by Muslim
forces. About 15,000 Croats took to the nearby fields and forests,
and Foreign Minister Mate Granic told the UN Security Council
that as many as 150,000 people could be forced to flee the region.
Vjesnik of 4 November adds that Granic wants the UN to set up
"safe areas" for Croat communities in central Bosnia under threat
of Muslim attack. President Franjo Tudjman appealed to his Bosnian
counterpart Alija Izetbegovic to stop the offensive, news agencies
noted. Politika adds that the Croats fled the area via Serb-held
territory, as had been the case with earlier groups of Croat
refugees. The loss of Vares is likely to set off domestic political
fireworks in Croatia, as did previous major losses such as Vukovar
and Bosanski Brod. Tudjman and his "Herzegovinian lobby" have
long been accused across the political spectrum of not doing
enough for the Croats of central Bosnia. -Patrick Moore

IZETBEGOVIC FIRES ARMY CHIEF-OF-STAFF. The Serbian dailies are
mainly preoccupied with coverage of next month's parliamentary
elections, but Politika on 4 November reports that Izetbegovic
the previous day issued a decree on top-level changes in the
Bosnian army. The most important move, namely the sacking of
chief-of-staff General Sefer Halilovic, had been rumored for
some days in light of new Prime Minister Haris Silajdzic's crackdown
on warlords and gangsters, some of whom reportedly were close
to the general. Halilovic is from the Sandzak and has long been
regarded as an outsider by many Bosnians. His successor, General
Enver Hadzihasanovic, the former commander of the Third Corps;
the Fourth and Fifth Corps will also get new commanding officers.
Politika says that the new appointees are "far more extremist"
than their predecessors and notes that the new Fifth Corps commander,
General Arif Dudakovic, is wanted in Croatia on war crimes charges
for his role as a Yugoslav army commander during Belgrade's 1991
invasion of Croatia. -Patrick Moore

PAPANDREOU CRITICIZES SANCTIONS AGAINST RUMP YUGOSLAVIA. Western
agencies report that Greek Premier Andreas Papandreou called
the UN embargo imposed on Serbia and Montenegro unfair and urged
the EC to take a more balanced view on the conflicts in former
Yugoslavia. The agencies quote Papandreou from an interview in
the 3 November issue of Belgian Le Soir , in which he claims
that the UN sanctions are "penalizing [only] one party" in the
conflict. Papandreou's remarks come less than two months before
Greece-which is the only Western country to entertain friendly
ties with Belgrade-will assume the EC chairmanship. Papandreou
said Greece's ambition during its chairmanship, which will last
six months, is "to exploit the fact that Greece is a Balkan member
of the EC." The new Greek Foreign Minister, Carolos Papoulias,
on 7 November begins a tour which will take him to five Balkan
capitals. After visiting Belgrade, Papoulias will go to Ljubljana,
Sofia, Bucharest and Tirana. -Kjell Engelbrekt

RUSSIA KEEN TO SUPPLY FUEL TO RUMP YUGOSLAVIA. AFP and TASS reported
on 2-November that Russian authorities have sent the UN committee
overseeing Security Council sanctions a letter requesting permission
to sell natural gas to rump Yugoslavia. The Russian foreign ministry
issued statements that Russia intends to provide rump Yugoslavia
with fuel to be used solely for "humanitarian" purposes. Western
media report on 4 November that the US may block Russia's attempt
to ease sanctions because of fears that any fuel shipped to rump
Yugoslavia may be used to heat private dwellings instead of schools,
hospitals and other institutions providing humanitarian services.
Stan Markotich

WALESA, DEMIREL SIGN FRIENDSHIP TREATY. Polish President Lech
Walesa and his Turkish counterpart Suleyman Demirel signed a
bilateral friendship and cooperation treaty on 3 November in
Warsaw, replacing an accord signed in 1923. An agreement on double
taxation was also signed, PAP reports. Demirel is on a two-day
state visit to Poland, his first foreign travel since taking
office in May. During talks with Polish officials, Turkish Foreign
Minister Hikmet Cetin pledged Turkey's support for Polish membership
in NATO and said the Central European countries must not be excluded
from European security structures. Walesa stressed that Poland
and Turkey border with successor states of the former Soviet
Union and need cooperative relations with Russia. They should
work together, Walesa said, to ensure that Russia is both democratic
and stable. Poland agreed to propose Turkey for observer status
in the Visegrad group. Demirel is scheduled to travel to Gdansk
on 4 November. -Louisa Vinton

POLAND'S PRIVATIZATION MINISTER: NO TURNING BACK. At his first
press conference since taking office, Privatization Minister
Wieslaw Kaczmarek vowed to accelerate rather than slow the pace
of privatization, PAP reports. Despite election campaign demands
by coalition politicians for a review of alleged past abuses,
Kaczmarek said there will be no inquiry into the performance
of his predecessor, Janusz Lewandowski. Asked about the new government's
decision not to submit to the Sejm the privatization portion
of the "pact on state firms," Kaczmarek said the legislation
will merely undergo minor revisions before resubmission. The
long-postponed issue of "reprivatization" is a priority, he added,
but restitution in kind will be avoided, and only those assets
confiscated in violation of the law at the time will likely be
restored. Kaczmarek said he opposes President Lech Walesa's proposal
to distribute privatization coupons worth 300 million zloty to
each citizen. He also denied that his ministry has been losing
experienced staff since the "postcommunist" government was formed.
-Louisa Vinton

POLAND'S TRADE DEFICIT GROWS. Poland posted a $2.33 billion balance
of payments deficit at the end of the third quarter of 1993,
PAP reports. Imports exceeded exports by $1.915 billion. National
Bank officials indicated, however, that the devaluation of the
zloty in August is having a delayed effect and will show results
only when statistics for October are released. Hard currency
reserves remain strong, at a gross level of $3.8-billion. Bank
officials said pressure for a further devaluation is misplaced
and recommended other measures to encourage exports, such as
tax incentives. -Louisa Vinton

SLOVAK PRESIDENT IN BRUSSELS. Michal Kovac arrived in Brussels
on 3 November, accompanied by Defense Minister Imrich Andrejcak
and Foreign Ministry State Secretary Jan Lisuch. During the two-day
visit, Kovac is scheduled to appear before NATO and the West
European Union as well as the Belgian cabinet and parliament
in an effort to "confirm Slovak orientation toward Western political,
economic and security structures," TASR reports. Andrejcak said
the Slovak army is already in a "high stage of readiness to join
NATO;" the main barriers are soldiers' lack of knowledge of command
languages and the need for new telecommunications devices for
the battlefield. In a 3 November interview with the Belgian daily
La Libre Belgique, Kovac called NATO "a safeguard of security"
and his country's "number one priority." Regarding Slovak-Hungarian
relations, Kovac said it is necessary to distinguish between
those calling for the restoration of Greater Hungary and the
official Hungarian representatives, who are "reasonable people."
He said "both Slovakia and Hungary are aware that the EC and
NATO are not ready to accept new members who are not capable
of solving their discrepancies" and said Hungarian Foreign Minister
Geza Jeszenszki intends to visit Bratislava to negotiate an agreement
on the official recognition of the Slovak-Hungarian border. -Sharon
Fisher

SLOVAK ECONOMIC NEWS. Statistical Office Chairman Rudolf Krc
at a press conference on 3-November said that in September industrial
production rose 3.7% over August, signaling a two-month upward
trend after months of decline. Also in September, sales from
industrial production reached 31 billion koruny (nearly $1 billion),
which is 7.6% more than in August. Still, industrial production
fell by 14.7% in the first three quarters of 1993 compared with
the same period last year. Only 19% of industrial firms have
private ownership, compared with 50%, 89%, 50% in the transport,
commerce and construction sectors, respectively. In September
building construction rose by 3.5 percent compared with August,
while the average size of construction firms fell from 216 to
206 workers. However, construction in the third quarter of 1993
fell by 2.2% compared with the second quarter of the year. The
consumer price index rose 2.4% in both September and August.
-Sharon Fisher

HIGH-RANKING HUNGARIAN LEADER RESIGNS. Gabor Fodor, Vice President
of the Association of Free Democrats (AYD), resigned from the
party on 3 November and will give up his parliamentary seat as
of 1-December, MTI reports. Fodor is a 31 year-old lawyer and
a founding member of the AYD who represented the party during
the 1989 round-table negotiations. On 31 October Fodor lost an
internal power struggle to run the party's national election
board to Jozsef Szajer, who was supported by AYD President Victor
Orban. Fodor wanted closer political cooperation with the Free
Democrats, Hungary's other liberal party, while Orban wanted
to expand to attract voters from the right. In addition, Orban
preferred a highly disciplined party, but Fodor challenged his
rule. In a press conference Fodor said his ideas are no longer
welcome in the AYD, and because he received his mandate from
the AYD's list in 1990, he would have to resign. He was the first
politician who resigned his seat after disagreement with his
party. AYD is now leading the polls, five months before the general
elections. -Karoly Okolicsanyi

DANUBE BLOCKADE DEVELOPMENTS. An RFE/RL correspondent reported
on 2 November that two Romanian tourist boats with no passengers
aboard managed to escape detention at the hands of two ultra-
nationalist Serbian groups responsible for disrupting Danube
traffic. The two groups, the White Rose and New Byzantium, are
blocking traffic along the river in order to protest UN sanctions
imposed against rump Yugoslavia. AFP said the Romanian boats,
which were detained in mid-October, were being held by the nationalists
because they had hopes of swapping them for Serbian vessels transporting
fuel which are being held in Romanian waters due to UN embargo
provisions. A representative from the Romanian transport ministry
said the Romanian ship captains forced their way through the
blockade during bad weather conditions, Reuters reports on 3
November. -Stan Markotich

ROMANIAN GOVERNMENT INCREASES WAGES. The cabinet decided on 2
November to raise the minimum monthly wage from 30,000 to 40,200
lei (approximately $38 at the official exchange rate). The cabinet
also announced a new indexation of wages and pensions, with average
pay to increase by 17.8%. In budget-funded sectors such as health
care and education, wages will rise by over 22%, while pensions
will increase by as much as 30%. This is the seventh indexation
so far this year; the last one took place on 1 July. In interviews
with Radio Bucharest on 2 and 3 November, senior officials with
the Labor and Social Protection Ministry said the steps were
designed to cushion the impact of soaring inflation and price
hikes on living standards. Romania's main labor union organizations
already signaled their dismay over the cabinet's package and
threatened to launch mass protests in the near future. They had
demanded a minimum monthly wage of between 64,000 and 70,000
lei ($61 to 67). -Dan Ionescu

COUNCIL FOR EURO-ATLANTIC INTEGRATION SET UP IN ROMANIA. In a
rare display of political consensus, the 13 parties represented
in parliament signed a protocol on 3 November sanctioning the
creation of a National Consultative Council for Euro-Atlantic
Integration. The council's stated goal is to boost Romania's
integration into West-European political, economic and military
structures. The ceremony, which took place at the Senate headquarters,
was attended by government officials, parliamentarians, diplomats
and journalists. The council's first meeting, scheduled for 17-November,
will be devoted to the military dimension of integration, Radio
Bucharest reports. -Dan Ionescu

TIMISOARA INVITES EXILED ROMANIAN KING. The town council of Timisoara
in Western Romania invited exiled King Michael to join the town's
celebration of the Romanian national holiday on 1 December, an
RFE/RL correspondent in Bucharest reported on 3-November. The
Party of Civic Alliance suggested last month that a visit by
the former king could turn the planned anniversary into a symbol
of national reconciliation. Michael, 71, was forced to abdicate
by the Soviet-backed communist regime in December 1947. He visited
Romania for Orthodox Easter last year; but the government blocked
his entry to Romania on several other occasions. -Dan Ionescu


TENSION ON THE DNIESTER RISING. At a news conference in Chisinau
on 1 November, reported by Moldovan and Russian media, the Moldovan
side of the joint commission supervising the ceasefire on the
Dniester accused the Russian side of multiple violations of the
ceasefire agreement. Reported violations include: allowing the
penetration of additional "Dniester" forces into the "security
zone" between the conflicting sides; blocking inspection of suspected
"Dniester" arms stockpiles in Bendery, where such stockpiles
are banned; and tolerating aggressive picketing by Russian communist
groups around the last remaining Moldovan police station and
courthouse in Bendery, thus exerting pressing on the Moldovans
to leave. The Moldovan side also stressed that the Russian and
"Dniester" sides have "made it impossible for the CSCE mission
to discharge its mandate" by blocking its access. Warning of
a growing danger of a resumption of hostilities, the Moldovan
side asked for prompt remedial measures. -Vladimir Socor

BULGARIAN CURRENCY FALLING AGAINST US DOLLAR. Demokratsiya of
4 November reports that $1-is now officially worth more than
30 Bulgarian leva. The Bulgarian currency had been traded for
around 30.5 against the US dollar for several days until the
Bulgarian National Bank (BNB) ruled officially to downgrade its
value. During the previous week the BNB had tried to stop the
fall of the lev, first by purchasing Bulgarian money for $28
million, and then by raising the prime interest rate by 3%, to
47%. One day after the intervention, the head of the BNB currency
transactions department, Stoyan Shukerov, told BTA that a new
increase would follow if the lev failed to stabilize. Last year
the US dollar was traded for less than 25 leva at a an 80% annual
inflation rate. The inflation for the first 9 months of 1993
was recently reported at 44.7%. -Kjell Engelbrekt

UN LEADERS READY TO MEDIATE ON TROOP WITHDRAWAL. UN Secretary
General Boutros Boutros Ghali has stated in a report to the General
Assembly that he and his special envoy Tommy Koh are available
as mediators in the negotiations on the withdrawal of Russian
troops from Estonia and Latvia, according to a 4 November report
from an RFE/RL correspondent in New York. He said the goal remains
the same as in 1992, when the UN adopted a resolution calling
for the early, complete, and orderly withdrawal of Russian troops
according to agreed timetables. Boutros-Ghali noted that while
the troops have been pulled out of Lithuania, two issues need
to be settled: the status and social benefits of retired Russian
military personnel and the right of transit by Russia through
Lithuania to the Kaliningrad region. Meanwhile, Russian Defense
Minister Pavel Grachev told Baltfax and BNS on 3-November that
no technical obstacles stand in the way of the pullout of Russian
troops from Estonia and Latvia. He added that if the human rights
issues are resolved, "not a single Russian soldier will remain
in the Baltic States after six months." -Dzintra Bungs

LATVIA ESTABLISHES PRIVATIZATION AGENCY. The Latvian council
of ministers approved on 2 November the establishment of a non-profit
privatization agency to deal with state-run businesses and manage
privatized firms until they are taken over by their new owners,
BNS and Baltfax reported on 3 November. The agency will be financed
by the state privatization foundation until the parliament decides
on the issue. So far, only 15 of the 703-enterprises that the
government has put up for sale this year have been bought and
only 13% of state-run businesses have been privatized. -Dzintra
Bungs [As of 1200 CET] Compiled by John Lepingwell and Sharon
Fisher







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