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RFE/RL Daily Report

No. 118, 23 June 1994


negotiation and recrimination, on 22 June Foreign Minister Andrei
Kozyrev signed the NATO Partnership for Peace agreement. "Let me
state with full certainty," Kozyrev was quoted by Reuters as
saying, "that there are no insurmountable obstacles on the way to
shaping a workable relationship between Russia and its Western
partners." NATO Deputy Secretary-General Sergio Balanzino
described the signing as "a defining moment in shaping the
security of our continent . . . there will only be stability in
Europe with and not against Russia." The agreement, which in
formal terms at least marks a major milestone in the
transformation of Europe's post-Cold War security environment, was
accompanied by a statement setting out the major principles of
broader cooperation between NATO and Russia. Reportedly crafted to
make clear that it in no way binds NATO decision-making to
Moscow--Balanzino emphasized that the new relationship "has
nothing to do with some kind of NATO-Russia condominium or a Yalta
Two'"--the statement nevertheless provided Russia with an
acknowledgment that it remains a major power. Stephen Foye,
RFE/RL, Inc.

OPTIMISM AND CAUTION. In remarks that may partly reassure the
governments of former Soviet bloc states bordering Russia, Kozyrev
also said that Moscow now accepts the principle of NATO expansion
into Eastern Europe, although he cautioned that that expansion
should not be too hasty. The Washington Post of 23 June,
meanwhile, quoted US officials as emphasizing that the signing was
only "the beginning" and that considerable uncertainty remained
both over NATO's role in the post-Cold War world and over Russia's
ability and willingness to function in harmony with the alliance.
That Russia's new relationship with NATO is likely to be
challenged by nationalists in Russia was made clear on 22 June
when a vote in the Russian State Duma to pass an amendment
invalidating Russia's accession to the NATO partnership failed by
only nine votes.  Stephen Foye, RFE/RL, Inc.

in Brussels, US Secretary of State Warren Christopher and Kozyrev
also announced that the two sides were close to completing the
text of a draft UN Security Council resolution aimed at easing the
crisis in North Korea. According to ITAR-TASS on 22 June, Moscow
and Washington had narrowed their differences on the issue; the
draft resolution will reportedly call for sanctions against North
Korea within approximately thirty days if Pyongyang does not take
positive steps to address the international community's concern
over its alleged nuclear weapons program. To encourage positive
movement, Kozyrev said, the resolution proposes the holding of an
international conference on the issue.  Stephen Foye, RFE/RL, Inc.

Pavel Grachev on 22 June issued a public statement urging that a
joint Russian-US peacekeeping exercise, originally scheduled for
July in the Orenburg region of Russia, take place as planned.
Opposition in the Russian parliament had earlier led President
Boris Yeltsin to talk of scuttling the exercise. According to
Interfax of 22 June, however, Grachev said that Yeltsin had not
yet made a final decision on the exercise. Grachev was quoted as
saying that "if we reject the joint . . . exercises, we shall lose
from the political point of view." He reportedly has sent a letter
to Duma Speaker Ivan Rybkin explaining his position.  Stephen
Foye, RFE/RL, Inc.

KOZYREV ON ARMS EMBARGO, SANCTIONS. Foreign Minister Kozyrev told
reporters in Brussels on 22 June that "nothing is excluded from
examination right now" when asked if Russia would support lifting
an arms embargo against Bosnia. Kozyrev said that options needed
to be discussed if the Bosnian Serbs reject the peace plan
currently being worked out, Reuters reported. An ITAR-TASS
dispatch said that Kozyrev answered in the affirmative when asked
whether sanctions against the rump Yugoslavia would be lifted in
the event that a peace agreement could be achieved. Suzanne Crow,
RFE/RL, Inc.

CRIME SWEEP IN MOSCOW. Russian and Western media reported on 22
June that a long-anticipated anti-crime operation had been
executed in Moscow on 21-22 June. According to Reuters, over 2,200
people were detained and 759 were charged. A report in the Boston
Globe noted, however, that most organized crime figures knew of
the raid well in advance and were maintaining a low profile. In
related news, President Yeltsin announced that he does not intend
to suspend his controversial anti-crime decree despite objections
that it infringes upon civil rights, according to an RFE/RL
correspondent's report. On 22 June the Duma voted 246 to 6 in
favor of a resolution calling upon Yeltsin to suspend the decree,
according to Interfax.  John Lepingwell, RFE/RL, Inc.

refused on 22 June to put on its agenda the question of stripping
the ultra-nationalist leader Vladimir Zhirinovsky of his
parliamentary immunity, ITAR-TASS reported on 22 June. No further
details were given by the agency. The office of the Russian
Prosecutor General asked the Duma last week to allow a criminal
case to go forward against Zhirinovsky for inciting war and ethnic
conflicts.  Vera Tolz, RFE/RL, Inc.

held in Moscow on 22 June to demand that the Communist opposition
be given broadcasting time on Ostankino Television, Interfax
reported. About 50 people carrying red flags and portraits of
Stalin, Lenin and Marshal Zhukov demonstrated in front of the
Ostankino headquarters. Another group estimated at nearly 2,000
people gathered at the nearby All-Russian Exhibition Center. They
demanded the immediate adoption of legislation allowing the
communist opposition one hour a day on television.  Vera Tolz,
RFE/RL, Inc.

reported on 23 June that Clinton administration officials believe
Russia is still developing chemical weapons despite its obligation
under the chemical weapons convention to eliminate its chemical
weapons stockpiles. Materials provided to the US by Russian
officials reportedly lack any information on binary chemical
weapons programs, despite claims by the Russian scientist Vil
Mirzayanov that a binary weapons program is underway. This has in
turn raised US suspicions that a secret program is continuing,
perhaps even hidden from the civilian leadership. Similar charges
concerning Soviet and Russian biological weapons research were
made in March 1994, but have not been clarified, although they
resulted in the firing of the head of the Russian committee for
chemical weapons destruction. The committee's deputy head, Pavel
Syutkin, was appointed acting chairman of the committee on 22
June, Interfax reported.  John Lepingwell, RFE/RL, Inc.

have been no instances of illicit export from Russia of
highly-enriched uranium suitable for production of nuclear
weapons, the spokesman of the Federal Counterintelligence Service
(FSK), Aleksandr Mikhailov told ITAR-TASS on 22 June. Although his
service has prevented several cases of illegal export of
low-enriched uranium and other radioactive materials, there were
no cases of smuggling of highly-enriched uranium or weapon
plutonium, which also can be used for the manufacturing of nuclear
weapons. Mikhailov also said that Western reports on the smuggling
of nuclear materials from Russia are aimed not at preventing
nuclear proliferation, but "placing the Russian nuclear arsenal
under Western control." Mikhailov admitted, however, that he has
no information about possible illegal export of radioactive
elements from the territory of the other CIS states.  Victor
Yasmann, RFE/RL, Inc.

tried three times to approve the 1994 budget in its third reading
on 22 June, but fell short of the 225 votes required for passage
in each attempt, Interfax reports. The closest vote was 220 to 46,
with 33 abstentions. Government officials warned that the Duma's
failure to give the budget final approval would prevent the
Central Bank from providing credits for government spending, and
that the government would be forced to submit new draft budgets
for the third and fourth quarters of 1994. A further attempt to
pass the budget will be made on 24 June. Duma Chairman Ivan Rybkin
instructed deputies to cancel all business trips and return to
Moscow for the vote. In related business on 22 June, the Duma
voted 329 to 1 to raise the minimum monthly wage from 14,620
rubles ($7) to 20,500 rubles ($10). The increase, the first since
December, directly affects only employees paid from the budget,
but the minimum wage also serves as a benchmark for wages in other
sectors. The average wage in April was 175,000 rubles. Louisa
Vinton, RFE/RL, Inc.

Russian state industry, budgetary revenues have fallen short of
anticipated levels by 28% in the first five months of 1994,
Interfax reports. Struggling factories have defaulted on tax
payments amounting to 2.1 trillion rubles ($1 billion). Deputy
Economics Minister Yakov Urinson reported on 16 June that Russian
industrial production for May 1994 was 53% below the figure for
December 1993. Output for the first five months of 1994 was down
26% compared with the same period in 1993. Still, many officials
expressed cautious optimism about the economy, arguing that
official statistics dramatically understate the extent of private
sector growth. Prime Minister Viktor Chernomyrdin predicted on 19
June that the recession will bottom out in June, and that monthly
inflation will remain at a level of 7-9% for the rest of 1994.
Prices rose 8.1% in May. Chernomyrdin also countered speculation
about a state of "dual power" in Russian economic decision-making;
the new spate of presidential decrees is designed to speed
economic change and does not reflect conflicts over policy.
Louisa Vinton, RFE/RL, Inc.


NAZARBAEV ON GOVERNMENT RESHUFFLE. In an interview televised on 22
June, Kazakhstan's President Nursultan Nazarbaev explained recent
changes in the country's government as part of a new anti-crisis
policy and as an effort to bring young people familiar with
business into the Cabinet, Interfax reported. On 20 June Interfax
reported the abolition of the ministries of energy and fuel
resources, communications and retail trade; separate ministries of
energy and the coal industry and for the oil and gas industry were
created, along with a ministry of transport and communications,
and a ministry for industry and trade. Kazakhstan's Supreme Soviet
had expressed its displeasure with the government's anti-crisis
program and demanded the Cabinet's resignation. Nazarbaev said in
the interview that if the program did not show success in 15
months, the government would resign.  Bess Brown, RFE/RL, Inc.

                    CENTRAL AND EASTERN EUROPE

BELARUS VOTES FOR PRESIDENT. On 23 June Belarus will try to become
the last former communist country in East Europe to have an
elected president by choosing from six candidates. The favorites
are Prime Minister Vyacheslau Kebich and former chairman of the
parliamentary anti-corruption commission, Alyaksandr Lukashenka,
both of whom favor some form of union with Russia as do Belarus
Communist Party Central Committee secretary Vasil' Novikau, and
Agrarian Party Chairman Alyaksandr Dubko. Candidates emphasizing
independence for Belarus and economic market reform are former
parliament chairman Stanislau Shushkevich and Popular Front
Chairman Zyanon Paznyak. More than half of the 7.2 million
eligible voters must cast ballots to make the elections official
and, since it is unlikely that any candidate will receive a
majority of the votes, a second round between the two top
candidates will be held in two weeks, Western media report.
Saulius Girnius, RFE/RL, Inc.

BELARUS PREMIER MEETS YELTSIN. On 22 June Kebich broke off his
election campaign to travel to Moscow for a meeting with Russian
President Boris Yeltsin and Deputy Prime Minister Oleg Soskovets,
Interfax reports. The talks centered on the deepening and
accelerating of economic integration of Belarus and Russia as well
as on the progress of democratic reforms, devolution, and
prospects of political cooperation with the CIS. It was noted that
Prime Minister Viktor Chernomyrdin will head the Russian
delegation at the celebrations of the 50th anniversary of the
liberation of Belarus from German occupation on 1-3 July.  Saulius
Girnius, RFE/RL, Inc.

TOOK EFFECT." This is how the VOA on 23 June described the current
state of affairs in light of the 10 June truce. RFE-RL's South
Slavic Language Service the previous evening noted that the most
intense combat is taking place in the Ribnica area of northern
Bosnia, while Bihac and Sarajevo are both "tense." Reuters quoted
one foreign relief worker as saying that "the internal front line
went crazy when the cease-fire took effect. [The Bosnian
government army] figures this is the time to finish off [Bihac
kingpin Fikret] Abdic. They have one month." Elsewhere, the 23
June Frankfurter Allgemeine Zeitung quotes Bosnian radio as saying
that a major Serbian offensive is imminent.  Patrick Moore,
RFE/RL, Inc.

Language Service reported on 22 June that discussions and voting
regarding setting up the new Muslim-Croat government were going on
into the night. In the course of 23 June, Prime Minister Haris
Silajdzic is expected to name 10 Muslim and 6 Croat nominees for
the new posts. Meanwhile in Bonn, AFP said on 22 June that Germany
will send 70 police to Mostar as part of an EU contingent of some
200 to help provide security while the town is rebuilt. The EU's
chief administrator there will be a former mayor of Bremen, Hans
Koschnick. Finally in Croatia, President Franjo Tudjman and a host
of other dignitaries marked The Day of Anti-Fascist Struggle, a
Tito-era holiday that has been retained. It gave Tudjman the
opportunity to undercut charges that his government is sympathetic
to the legacy of the World War II-era Axis puppet state, as well
as to underscore the links between Istria, where the uprising
began, and the rest of Croatia. Vecernji list covers the speech on
23 June.  Patrick Moore, RFE/RL, Inc.

Times featured a report on the rump-Yugoslav economy under the
headline: "Farmers in Serbia to Gather Gold for Grain." Unlike
Serbian media, which emphasize reports of economic gains, the
Times notes that Serbia's economy is showing signs of fatigue. The
article says that in recent weeks the "super dinar," pegged to the
value of the German mark when introduced into circulation on 24
January 1994, has begun to fluctuate "seriously." Also, a black
market for currency exchange has reemerged. Such signs, reports
the British daily, signal a public loss of confidence in the dinar
and may portend a return to hyper-inflation.  Stan Markotich,
RFE/RL, Inc.

. . . AND GOLD AWAITS THE FARMERS. On 23 June, meanwhile, Serbian
media continue to focus attention on economic issues, with the
design of a proposed gold coin, which will be used to pay Serbian
farmers for grain surpluses, grabbing headlines. According to
Politika, the new gold coin, which is to bear likenesses of the
Serbian double-headed eagle and, ironically, a peace dove, will be
minted as soon as federal authorities approve the design. The coin
will weigh 7.78 grams and will be pegged to the value of gold on
international markets. The coin will, however, have a face value
of 150 dinars, or approximately $94. The coin's introduction
appears to be part of an inflation-fighting campaign by National
Bank Governor Dragoslav Avramovic, who has grudgingly committed
the bank to bailing out the agricultural sector while refusing to
do so by printing un-backed dinars, an action which could trigger
spiraling hyper-inflation.  Stan Markotich, RFE/RL, Inc.

CENSUS UNDERWAY IN MACEDONIA. Even though the ethnic Albanian
parties in the Macedonian parliament have criticized the
Macedonian census, which started on 21 June, they have nonetheless
urged the ethnic Albanians to take part in it. The leader of a
joint committee, made up of the Party of Democratic Prosperity and
the Democratic People's Party, Shaban Prevalla, said, however,
that the ethnic structure of the country has not been reflected in
the construction of the local census commissions. He also claimed
that a large number of Albanians has not yet received Macedonian
citizenship. The parties had demanded constitutional amendments
making the Albanians co-equal with the ethnic Macedonians and
urged a postponement of the census in the meantime. Nonetheless,
the parties urged Macedonian Albanians who live abroad to
participate, arguing that there is little chance of the Albanians
soon getting their constitutional changes. The parties also note
that the Albanians have received little support for their claims
from the international community. Rilindja carried the story on 20
June. The Frankfurter Rundschau nonetheless reported on 22 June
that ethnic Albanians are boycotting the census.  Fabian Schmidt,
RFE/RL, Inc.

Slovak government turned down a plan for settling debts owed by
Russia, Slovak media reported. Russia has agreed to take over
Soviet debts, including sums owed to Slovakia and the Czech
Republic; the Slovak portion of the former Soviet Union's debt to
Czechoslovakia amounted to $1.5 billion. Former Prime Minister
Vladimir Meciar and Russian officials agreed on debt payments when
Meciar visited Moscow in August 1993. TASR quotes Deputy Prime
Minister Brigita Schmoegnerova as saying the cabinet believes
Slovakia should be getting part of the money Russia has agreed to
pay to the Czech Republic, in particular the money to be paid
directly to those Czech companies that are owed money by companies
in the former Soviet Union. She said that many products that were
manufactured in Slovakia were sold to the Soviet Union by foreign
trade companies based in Prague and, as a result, the Czech
Republic is now claiming debts resulting from these sales.
Schmoegnerova flew to Moscow on 23 June for further debt
negotiations. Jiri Pehe, RFE/RL, Inc.

Slovak Foreign Minister Eduard Kukan told journalists in Prague,
where he had met with Czech officials, that the Slovak government
will not wait until after Slovakia's autumn general elections to
sign a state treaty with Hungary, if it can be done before then.
Kukan argued that the treaty had been delayed by minority policies
of the previous Slovak government of Vladimir Meciar and those of
the outgoing Hungarian government. The foreign minister said that
work has begun on the text of the treaty and, in his opinion,
"talks will start as soon as the new Hungarian government takes
office." The main points of contention in the past have been
recognition of mutual borders and guaranteeing the rights of
ethnic minorities. Jiri Pehe, RFE/RL, Inc.

that the Hungarian Socialist Party (HSP), which attracted 54% of
the votes and the liberal Alliance of Free Democrats (AFD), which
had 18% of the votes during last month's general election, reached
a final agreement for governing of Hungary for the next four
years. The deal will give the AFD almost equal power to approve
government policy, candidates for senior posts, and draft
legislation. The AFD will have three ministerial posts, among them
the important Interior Ministry, while the HSP will have nine. In
addition, the AFD will have the newly created deputy prime
ministerial post and number of state secretaries. The two parties
will have over a two-thirds majority in parliament, and thus will
be able to change the constitution. The distribution of
parliamentary committees between the parties was agreed earlier.
The joint economic guidelines accepted include restoration of a
uniform tax break for foreign investment, negotiation of a "social
pact" between employers and employees, scrapping a costly
government bank bailout, and a 50 billion forint ($500 million)
cut in this year's budget.  Karoly Okolicsanyi, RFE/RL, Inc.

following a car accident of Alexander Dubcek, a leader of the
Prague Spring reform period in 1968, another prominent leader of
the Prague Spring was seriously hurt in a car accident. CTK
reports that Oldrich Cernik, the prime minister of Czechoslovakia
in 1968, was severely injured on 22 June near the Moravian city of
Ostrava. He has been hospitalized with multiple injuries and is
hooked to a life-support system. Like other members of the
Czechoslovak leadership, Cernik was taken to Moscow after the
Soviet-led invasion of Czechoslovakia in August 1968 and forced to
sign documents legalizing the invasion. He was expelled from the
communist party in 1970, being able to return to public life only
after the "velvet revolution" in November 1989.  Jiri Pehe,
RFE/RL, Inc.

ILIESCU, HAVEL SIGN TREATY. On 22 June the Romanian and Czech
Presidents, Ion Iliescu and Vaclav Havel, signed a bilateral
friendship and cooperation treaty, Radio Bucharest reports. At a
press conference, the two presidents expressed hopes that the
treaty will help boosting economic and political ties between
their countries. Later this year, the two countries are expected
to sign a free trade agreement, providing a framework for closer
economic links. Havel and Iliescu said they were not interested in
an expansion of the "Visegrad group," which Havel described as "an
improvised alliance." But Havel promised to support Bucharest's
plans to join the Central European Free Trade Agreement. Both
groups are made up of the Czech Republic, Poland, Hungary and
Slovakia. An RFE/RL correspondent in Bucharest noticed that the
pro-Iliescu media offered rather low-key coverage of the Czech
president's visit.  Dan Ionescu, RFE/RL, Inc.

In a declaration adopted by the parliamentary group of the Union
of Democratic Forces on 22 June and appearing in Demokratsiya on
the next day, an ongoing political boycott of the National
Assembly is described as ineffective and indirect help to the
coalition's opposite number, the Bulgarian Socialist Party. The
declaration, which was supported by an overwhelming majority of
the caucus, says the selective boycott of plenary sessions instead
of blocking the work of parliament, as was intended, has made it
easier for the government and the mainly Socialist deputies who
back it to ignore the opposition and pass their own legislative
proposals. It is also argued that the boycott threatens to weaken
the UDF's standing as a leading and responsible political force,
at home as well as abroad. The boycott was selected as a means to
bring about early general elections by the coalition's sixth
conference in May, which also voted to fully subordinate the
parliamentary faction to the decisions of the UDF National
Coordinating Council. In an interview with 24 Chasa on 23 June,
the 65-year-old respected UDF deputy and lawyer Aleksandar Dzherov
urged more a more pragmatic stance on the part of the NCC, and
warned--in a reference to the low average age of that body--that
he was no longer prepared obey "youngsters who act before they
think." Kjell Engelbrekt, RFE/RL, Inc.

Tribunal ruled on 22 June that the law on state secrets covers
only the intelligence and counterintelligence services, and not
all employees of the security police, Polish TV reports. The
ruling clears the way for the release--at least to the courts--of
files on former secret police informers and agents. Internal
Affairs Minister Andrzej Milczanowski has consistently cited
restrictions on state secrets in justifying his refusal to release
files from the communist secret police archives, even in cases
where prosecutors have requested them to clear up the murders of
opposition activists. The tribunal ruled that a state secret is
not a value in and of itself; the application of the secrets law
cannot be allowed to collide with other rights and freedoms or
interfere with democratic control over the security services.
Supreme Court Chairman Adam Strzebosz had requested the ruling in
connection with the case of Stanislaw Pyjas, a student activist
murdered in 1977. In a related development, Deputy Internal
Affairs Minister Zbigniew Sobotka denied on 22 June that he ever
knowingly collaborated with the DDR secret police, as documents
from Stasi archives suggest. Sobotka was a deputy Politburo member
in 1989; he represents the ruling coalition in the internal
affairs ministry.  Louisa Vinton, RFE/RL, Inc.

Estonian Foreign Ministry immediately issued a statement,
condemning the decree by Russian President Boris Yeltsin ordering
the unilateral demarcation of the Estonian-Russian border by 31
December. It noted that Estonia had steadfastly sought solutions
to the border question, even asking the CSCE to name a special
representative to help settle the differences. On 22 June Prime
Minister Mart Laar called the decree "without precedent on the
international scene" and that it was another attempt by Russia to
pressure Estonia for concessions on military retirees, BNS
reports. The Lithuanian Foreign Ministry issued a statement noting
that the decree contradicts the CSCE principles requiring
agreement only through negotiations and without applying any
pressure. Deputy Chief of the Legal Department of the Russian
border force Mikhail Shekhalevich told Interfax that the decree
was a vital necessity to stop the smuggling of weapons into Russia
and non-ferrous metals, fuels, and food to Estonia.  Saulius
Girnius, RFE/RL, Inc.

Deputy Foreign Minister Sergei Krylov was reported by Interfax to
have described the Latvian citizenship law as inhuman; he claimed
that it had been aimed against Russian-speaking residents in
Latvia. Krylov added that if this legislation became a law (it
still must be endorsed by the president), Latvian-Russian
relations would deteriorate and the visit of Russian Premier
Viktor Chernomyrdin to Latvia would most likely not take place;
furthermore, the fate of numerous agreements made during the
recent visit of the Latvian president to Moscow would be
uncertain. In its own statement, the Russian Foreign Ministry
objected primarily on the naturalization quotas in the Latvian
citizenship law, saying that the admission of Latvia into the
Council of Europe would encourage the discriminatory policies of
the Latvian authorities and mark the relaxation of international
norms in the field of human rights. Dzintra Bungs, RFE/RL, Inc.

PRESIDENTIAL POLL IN UKRAINE. A poll of more than 1,500
respondents from all Ukrainian regions conducted by the Ukrainian
Barometer Center indicated that former Prime Minister Leonid
Kuchma and President Leonid Kravchuk were the favorites for the
presidential elections on 26 July, Interfax reported on 21 June.
Kuchma was supported by 29% of the respondents, Kravchuk by 23%,
president of the Center for Market Reforms in Kiev Volodymyr
Lanovyi by 8%, former parliament chairman Ivan Pliusch by 3%,
president of the Ukraine Financial Group stock company Valerii
Babych by 2.5%, and Minister of Education Pyor Talanchuk by less
than 0.5%. Interfax, however, failed to give any information about
the popularity of another candidate, parliament chairman Oleksandr
Moroz, or how many people were undecided or did not plan to vote.
Saulius Girnius, RFE/RL, Inc.

  [As of 1200 CET]

  Compiled by Liz Fuller and Patrick Moore
The RFE/RL DAILY REPORT, produced by the RFE/RL Research
Institute (a division of Radio Free Europe/Radio Liberty, Inc.)
with the assistance of the RFE/RL News and Current Affairs
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