No. 124, 1 July 1994

                             RUSSIA


CHUBAIS: VOUCHER PRIVATIZATION A SUCCESS. As thousands of
Russians stood in line on 30 June to beat the deadline for
investing their vouchers in privatized state firms, the
government convened to complete plans for the next, "postvoucher"
stage of privatization. Privatization Minister Anatolii Chubais
told Interfax on 30 June that 70% of Russian industry--20,000 of
28,000 large or mid-sized industrial enterprises--has been
privatized in the past 18 months. Another 90,000 small shops and
businesses (constituting 80% of firms with fewer than 200
employees) have been sold off, he said. Chubais reported that 139
million of the total 148 million vouchers (94%) had been used as
of 25 June; last-minute transactions are likely to raise the
share of invested vouchers to 97-98%. More than 40 million
citizens now own shares. Chubais argued that this shows that
voucher privatization has fulfilled its mission of creating a
vast pool of private owners and selling the idea of privatization
to the public. Joseph Blasi, a Western adviser to the Russian
government, argued in a 30 June commentary carried by The New
York Times that on the basis of 200 case studies, voucher
privatization has in most cases resulted in majority
stock-holding by employees, but that industrial managers have
largely retained executive control. Blasi said that privatization
has already improved efficiency by cutting employment, but most
firms are still starved for capital and unable to find markets
for their products.  Louisa Vinton, RFE/RL, Inc.

GOVERNMENT PLANS SECOND STAGE. The Russian government's new
program for privatization, set for introduction on 1 July, is
designed to remedy two shortcomings of voucher privatization: the
dispersion of ownership and the shortage of new capital
infusions. Chubais said the new program will privatize an
additional 20% of state industry through direct cash auctions.
The portion of shares available for employees on preferential
terms will drop to 10% from the 51% in force under voucher
privatization. Under the program, enterprises will be permitted
to acquire the land on which they are located and to sell any
surplus property. The program is apparently being prepared in
haste; it is set for introduction in a presidential decree to be
issued on 1 July, but a government commission was formed only on
30 June to complete the draft. Subsequent legislation reinforcing
the terms of the decree is to be adopted by the parliament. Prime
Minister Viktor Chernomyrdin expressed concern on 30 June that
the parliamentary recess may delay work on this legislation and
that the State Duma may attempt to alter the terms set in the
decree.  Louisa Vinton, RFE/RL, Inc.

OECD CAUTIOUS ON RUSSIAN ECONOMY. In a report issued on 30 June,
the OECD predicted that Russia's economy will contract by 10% in
1994, followed by a further drop of 2% in 1995. Given the 19%
plunge in 1992 and the 12% drop in 1993, this represents a
relative improvement, the OECD noted. Still, the report said,
"sustained efforts" remain necessary to ensure fiscal
stabilization and structural reforms. The OECD predicted that
annual inflation will amount to 450% in 1994 and 150% in 1995.
While these rates are better than those of the past two years,
they continue to "reflect the lack of fiscal and monetary
control" in the region. In contrast, the report noted, Estonia
has reduced its annual inflation to 30% and both Estonia and
Latvia are recording economic growth. The report praised Russian
privatization efforts but noted that "traditional enterprise
relationships remain largely intact." Enterprises still receive
credits according to criteria that defy market principles. The
OECD questioned official statistics showing that Russia's trade
balance improved substantially in 1993.  Louisa Vinton, RFE/RL,
Inc.

INDIA AND RUSSIA: A FLURRY OF ACTIVITY. Indian Prime Minister
P.V. Narasimha Rao and Russian President Boris Yeltsin, meeting
in the Kremlin on 30 June, signed ten bilateral agreements of
various sorts but failed to resolve differences on Indian debt
repayments to Russia, western news agencies reported. Spokesmen
for both sides were nevertheless upbeat in their assessments of
the latest attempt by New Delhi and Moscow to resuscitate the
close relations that existed between the two capitals prior to
the break-up of the USSR. Details of the agreements were not made
public, but they included a declaration on the defense of
interests of multi-national states which, according to Interfax,
stated that the "destabilization of relations between ethnic and
religious groups, any attempts to deport them, ethnic cleansing .
. . can only lead to the destruction of everything positive and
constructive which humankind has acquired during its
multi-thousand year evolution . . . Russia and India display
their conviction that large multi-national states bear special
responsibility for the destiny of hundreds of millions of
people." Yeltsin and Rao also signed a "Declaration on Further
Development and Expansion of Cooperation Between Russia and
India," which declared that the two countries share a common view
of regional and global issues.  Stephen Foye, RFE/RL, Inc.

YELTSIN ON ECONOMIC CLIMATE, ASIA POLICY. According to Interfax,
Yeltsin used the meeting with Rao to emphasize again his argument
that the political situation in Russia has stabilized and that
this has greatly improved the nation's investment climate. He
also emphasized that Russia did not want to lose India's
extensive market for Russian investment and exports. Interfax
noted that the cooperation agreement declaration issued by
Yeltsin and Rao referred to a readiness by the two countries to
pursue joint research and development of lasers, laser
technologies, new generation aircraft, data processing
technologies, and exploration of space. Turning to foreign
policy, Yeltsin told Rao that Asian developments have always
occupied a prominent place in Russian foreign policy
deliberations and suggested that Russia and India had played, and
would continue to play, an important role in countering the
threat to peace on the continent. Yeltsin said that while the
emerging post-Cold War environment offered new opportunities for
cooperation in Asia, it had nevertheless also brought with it
aggressive nationalism, separatism, the potential for territorial
disputes, and the "threat of proliferation of nuclear weapons and
missile technologies." One area of tension in Russian-Indian
relations has been New Delhi's unwillingness to sign to the
Nuclear Non-Proliferation Treaty, a stance which Moscow fears
could undermine its own efforts to assure a non-nuclear status
for Ukraine and Kazakhstan, not to mention North Korea. Stephen
Foye, RFE/RL, Inc.

MILITARY COOPERATION ADVANCED. Defense cooperation, as was
expected, appeared to occupy a prominent place in the talks. AFP
reported that Rao, who holds India's defense portfolio, and
Russian Prime Minister Viktor Chernomyrdin had agreed on 30 June
to widen defense cooperation and that the details of several
defense agreements would soon be made public. One such agreement
that was announced involved the establishment of a joint aircraft
manufacturing venture, to be comprised, according to Interfax, of
four Russian and two Indian partners. AFP, quoting ITAR-TASS,
also reported that Russia was prepared to offer 30 Su-30 fighters
to India on credit and to license their production as well. The
same report said that India was also considering the purchase of
36 advanced MiG-29 fighters in a deal that could be worth around
$780 million. Stephen Foye, RFE/RL, Inc.

NO PRESIDENTIAL DECISION YET ON ELECTION DELAY. President
Yeltsin's spokesman Vyacheslav Kostikov told Interfax on 30 June
that the president has not yet decided if he supports or opposes
a proposal to postpone presidential and parliamentary elections.
(Recently the speaker of the parliament's upper chamber Vladimir
Shumeiko proposed a two-year delay for the elections.) Kostikov
said that Yeltsin was following the public and parliamentary
reaction and believed it was necessary to wait until society
reached a consensus before he (the president) made public his own
opinion. So far most politicians in Moscow have reacted
negatively to Shumeiko's proposal.  Vera Tolz, RFE/RL, Inc.

POTAPOV ELECTED PRESIDENT OF BURYATIA. Leonid Potapov, hitherto
chairman of the Supreme Soviet of Buryatia and before that Party
first secretary of the republic, was elected the first President
of Buryatia on 30 June, ITAR-TASS reported on 1 July. Potapov, a
Russian who speaks Buryat, received the vast majority of votes in
a run-off with Aleksandr Ivanov, chairman of the State Committee
for the Economy. Repeat elections for the new Buryat parliament,
the People's Khural, were also held on 30 June. Potapov, who will
also head the government, said after his election that the
relatively high turn-out of around 50 percent inspired hope that
Buryatia would overcome its economic crisis.  Ann Sheehy, RFE/RL,
Inc.

MEETING OF PRESIDENTIAL REPRESENTATIVES IN CENTRAL OBLASTS. A
meeting of the representatives of the Russian president in the
central oblasts of Russia in Moscow on 30 June, which was opened
by the head of the presidential administration, Sergei Filatov,
discussed inter alia Yeltsin's recent decree on combatting crime,
the degree to which the charters of the oblasts and krais accord
with the Russian constitution, progress in forming organs of
local self-government, the formation of public chambers in the
regions of the Russian Federation, and the implementation of the
law on citizenship, ITAR-TASS reported. The head of the state and
law department of the president, R. Orekhov, said that about 24
oblast and krai charters had been drawn up so far and their main
failing was an imprecise delimitation of powers between the
federal organs and the territories. The deputy head of the
presidential administration V. Volkov spoke of the important role
of the representatives of the president in organizing the work of
public chambers in the regions.  Ann Sheehy, RFE/RL, Inc.

                 TRANSCAUCASIA AND CENTRAL ASIA

RUSSIAN FOREIGN MINISTRY ON TURKISH SHIPPING RESTRICTIONS. The
Russian Foreign Ministry has called on Turkey not to implement
the restrictions on shipping through the Turkish straits--in
particular on oil tanker traffic--that are scheduled to come into
force on 1 July, Interfax reported on 30 June. Foreign Ministry
spokesman Grigorii Karasin was quoted as saying that free passage
of shipping through the straits is of "great significance" for
the Russian economy. Ukraine, Bulgaria, Romania, and Greece have
also lodged objections. According to AFP, Russia will not comply
with all the new regulations, which have been approved by the UN
International Maritime Organization.  Liz Fuller, RFE/RL, Inc.

IAEA GIVES GO-AHEAD FOR REACTIVATING MEDZAMOR. After completing a
thorough inspection of Armenia's mothballed Medzamor nuclear
power station, a team of experts from the International Atomic
Energy Agency stated on 29 June that the body of the reactor and
basic equipment are in satisfactory condition, and there are no
fundamental obstacles to reactivating it, ITAR-TASS and Interfax
reported. No prediction was given as to how long the preparations
for reopening would take. Armenian deputy prime minister Vigen
Chitechyan was quoted as estimating the total costs at at least
$70 million; the IAEA will not provide financial assistance, but
will help in trying to raise international aid to finance the
project.  Liz Fuller, RFE/RL, Inc.

                   CENTRAL AND EASTERN EUROPE

EXTENSION OF BOSNIA CEASE-FIRE SOUGHT. UN Secretary General
Boutros Boutros-Ghali expressed interest on 30 June in extending
the current much-violated Bosnia cease-fire, which is set to
expire on 8 July. According to agency reports, Boutros-Ghali has
suggested that a cease-fire extension would allow more time in
which to bring the warring parties to the negotiating table in
efforts to establish a longer-term peace. To date, no official
from any of the warring parties has expressed any desire to
extend the present cease-fire. Meanwhile, reports of serious
fighting in Bosnia continue to circulate, with the most intense
clashes being reported in north-central Bosnia, where Muslim-led
forces have recently made gains against the Bosnian Serb side.
Finally, Reuters reported on 30 June that "in the last few days"
Serbs in Croatia's breakaway Republic of Serbian Krajina have
sent heavy weapons to the rebel Bosnian Muslim troops in Bihac
led by Fikret Abdic.  Stan Markotich, RFE/RL, Inc.

AMBASSADOR WARNS AGAINST CROATIA-KRAJINA CLASH. On 30 June
Reuters and on 1 July Vjesnik reported that US ambassador to
Croatia Peter Galbraith cautioned that any outbreak of fighting
between Zagreb and rebel Serbs in the breakaway Republic of
Serbian Krajina could lead to military defeats for Croatia.
Evidently prompting Galbraith's comments was the belief that "the
danger of a new war remains." His remarks come in the wake of
recent statements by Croatian officials amounting to pledges to
reincorporate Krajina by force if talks between Zagreb and
Krajina yield no progress in resolving the issue of Krajina's
political status by 30 September 1994.  Stan Markotich, RFE/RL,
Inc.

MACEDONIA "AMAZED", GREECE HEARTENED BY COURT RULING. On 30 June
Reuters reported that the Macedonian foreign ministry registered
its "amazement" at a 29 June European Court of Justice ruling
effectively allowing Greece to continue its embargo against
Macedonia. Greek Prime Minister Andreas Papandreou has already
hailed the decision, calling it supportive of the contention that
the Greek measure is legal. For its part, the European Union,
which brought the case to the court's attention, has pledged to
continue to attempt to have the embargo lifted.  Stan Markotich,
RFE/RL, Inc.

LUKASHENKA NOW STRESSING BELARUS INDEPENDENCE? An aide to
Alyaksandr Lukashenka, the front-runner in Belarus's presidential
runoff election, indicated on 29 June that his candidate has
shifted his policies and is now advocating the country's
independence from Russia, agencies report. Lukashenka is also
urging the introduction of a Belarusian currency instead of
inclusion in the ruble zone, according to aide Viktor Kuchynski.
This would constitute a complete political about-face on the part
of Lukashenka, who until now has actively promoted reunification
with Russia and the reconstitution of the USSR. Presumably this
is merely a tactic to woo liberals who voted for Stanislau
Shushkevich or Zyanon Paznyak on 24 June, and who might be
tempted to stay away in droves from the runoff (and risk the
invalidation of the election if voter participation is less than
50%). In any event, Kuchynski's comments underscore the
exceedingly low caliber of debate in Belarus's first presidential
race.  Kathy Mihalisko, RFE/RL, Inc.

CRIMEA VOTES FOR FULL AUTHORITY OVER ITS AFFAIRS. The Crimea
leadership on 30 June voted to grant itself full powers on the
territory of Crimea, with the exception of powers voluntarily
delegated to Kiev. As reported by Ukrinform-TASS, the leadership
also condemned the parliament and president of Ukraine for taking
legislative and executive actions that violated the Constitution
of the Republic of Crimea as well as the 1992 law on division of
state powers between Crimea and Ukraine. In a statement directed
to the Ukrainian parliament, Simferopil' threatened to lift the
moratorium on a Crimean independence referendum if Kiev did not
halt its formation of a main directorate of internal affairs in
Crimea and did not continue negotiations between the Crimean and
national parliaments.  Kathy Mihalisko, RFE/RL, Inc.

UKRAINIAN OFFICERS SUPPORT KRAVCHUK FOR PRESIDENT. As reported by
UNIAN on 29 June, the Union of Officers of Ukraine opted to
endorse Leonid Kravchuk's candidacy for president in the runoff
election between the incumbent and rival Leonid Kuchma. This
follows previous information that Kravchuk had strong electoral
support among military units in the country. The runoff is now
officially scheduled for 10 July.  Kathy Mihalisko, RFE/RL, Inc.

ROMANIAN GOVERNMENT WINS NO-CONFIDENCE VOTE. On 30 June, the
government of premier Nicolae Vacaroiu survived the fifth
no-confidence vote since its formation in 1992. Radio Bucharest
broadcast the debates in parliament live. The no-confidence
motion moved by the opposition was rejected with 227 votes
against and 208 in favor. To succeed, the motion would have
required the backing of 242 deputies and senators. Western
agencies report from Bucharest that, as in the past, the
government owes its survival to the support of the extreme
nationalists. It is speculated that the Vacaroiu cabinet might be
soon reshuffled, bringing in members of the Party of Romanian
National Unity, in line with an agreement between that formation
and the ruling party that has never been implemented. Meanwhile,
leaders of the ruling Party of Social Democracy in Romania begin
a two-day meeting on 1 July against a background of reports of
growing differences between the party's left and right wings over
economic policies.  Michael Shafir, RFE/RL, Inc.

ROMANIAN PARLIAMENT SCHEDULES IMPEACHMENT VOTE. The political
parties represented in the Romanian parliament decided to hold a
special session of the legislature to discuss the impeachment of
President Ion Iliescu, as demanded by the opposition, an RFE/RL
correspondent reported from Bucharest on 30 June. The special
session will begin on 4 July and run through 7 July, but could be
extended. The opposition says Iliescu has violated the
constitution by asking public officials to ignore court decisions
returning nationalized homes to their pre-communist owners.
Michael Shafir, RFE/RL, Inc.

TINCA REVEALS ROMANIAN CHEMICAL WEAPONS PROGRAM. Romania's
defense minister said on 30 June that his country had
experimented with making chemical weapons but never built any and
has stopped work on them, an RFE/RL correspondent and Western
agencies report. Gheorghe Tinca told a press conference in
Bucharest that former President Nicolae Ceausescu had authorized
work on chemical weapons in 1968. However, Tinca said, Ceausescu
later decided the project was too costly and ordered it canceled
in 1987, although the actual work did not stop until 1990. He
said the project never went beyond the laboratory stage. Tinca
revealed he was asked about the chemical weapons project when he
visited Washington in mid-June. He added he invited US
specialists to inspect the laboratories where the work was
carried out. Tinca also said that Romania produces small amounts
of four internationally-banned chemical substances. These amounts
were said to be used to test the army's chemical-warfare
protection equipment. Michael Shafir, RFE/RL, Inc.

SLOVAK PARLIAMENT APPROVES DEFENSE DOCTRINE. During its session
on 30 June, the Slovak parliament approved the new defense
doctrine proposed by Defense Minister Pavol Kanis. The doctrine
deals with the country's national security requirements and
introduces a security policy document on Slovakia's participation
in the Partnership for Peace program. It stresses the importance
of integration into European security structures, particularly
NATO, and states that Slovakia has no reason to use its army
other than to defend its independence, sovereignty, territorial
integrity, and stability. The document also deals with the
principles of building the armed forces and defense capabilities,
stating that the country's defense needs must be in line with its
economic, technological, and spiritual potential. The parliament
also approved a proposal to send Slovak army observers on
monitoring missions to Nagorno-Karabakh, in agreement with the
CSCE. A new law on the reorganization of the defense ministry
provides for the creation of a military information service, to
be divided into sections on defense and offense.  Sharon Fisher,
RFE/RL, Inc.

SLOVAK NATIONAL BANK'S ECONOMIC REPORT. On 30 June the National
Bank of Slovakia held a press conference to discuss recent
economic developments. National Bank Governor Vladimir Masar
announced that foreign currency reserves have shown long-term
growth and totaled $713.7 million, excluding gold, on 30 June.
This is a rise of $45 million since 28 June. The state budget
deficit reached 7.7 billion koruny on 28 June, which corresponds
with expectations. Slovakia has registered a trade surplus with
the Czech Republic, with a positive balance of 3.7 billion
koruny. The NBS also announced that two new Slovak bank notes
will be issued. The 200 koruny note will feature the 19th century
writer Anton Bernolak, while the 5,000 koruny note will portray
one of the founders of Czechoslovakia, Milan Rastislav Stefanik.
The bank notes will be printed in Munich, Germany. Sharon Fisher,
RFE/RL, Inc.

WALESA WARNS OF "LEFTIST COUNTERATTACK." Sejm debate on Poland's
concordat with the Vatican suggested that left-wing attempts to
delay ratification until after the new constitution is adopted
are unlikely to succeed, Gazeta Wyborcza reported on 1 July. The
Democratic Left Alliance and the Labor Union opposed swift
ratification, but all the other parties favored a timely vote.
Foreign Affairs Minister Andrzej Olechowski argued that the
concordat's formulation on "independence and autonomy" is fully
in keeping with the current constitution's "separation" of Church
and state. President Lech Walesa attended the debate. At a press
conference on 30 June, Walesa charged that the SLD's attempt to
delay ratification amounts to "blackmail." He spoke of a "leftist
counterattack." In remarks certain to stir controversy, Walesa
also urged atheists and non-believers to own up publicly to their
convictions. "Believers must call the minority to order," he
said. "Why should [a non-believer] want to be taken for a
believer, hide his views? [To be] a fifth column?" Walesa asked.
Louisa Vinton, RFE/RL, Inc.

WALESA SIGNS WAGE CONTROL BILL. The Polish president on 30 June
signed legislation--the so-called neopopiwek--that imposes a
punitive tax of 150% on state firms that allow excessive wage
increases, Polish TV reports. Walesa vetoed an earlier version of
the bill in March. The new version applies only to the roughly
6,000 firms in which at least 80% of the shares are owned by the
state. The parliament's failure to override that veto left state
firms without any wage controls for three months. Many economists
worried that this lack would prompt a surge in wages and later in
inflation, but these fears have so far proved unfounded. It
remains unclear whether the law takes effect on 1 July or 1
August, as the timing depends on the law's date of publication.
Louisa Vinton, RFE/RL, Inc.

POLISH SENATE APPROVES LIBERAL ABORTION LAW. After a heated
six-hour debate on 30 June, the Senate voted 40 to 36 with 4
abstentions to approve the Sejm's amendment to the penal code
removing virtually all restrictions on abortions performed in the
first trimester of pregnancy, Gazeta Wyborcza reports. Only the
Solidarity deputies were uniformly opposed to the revision, which
basically overturns the abortion ban imposed in 1993. About 100
opponents of abortion demonstrated outside the parliament.
President Lech Walesa has vowed to veto the bill.  Louisa Vinton,
RFE/RL, Inc.

HEAD OF HUNGARIAN TELEVISION REPLACED. In one of their first
major political decisions, the ruling coalition parties agreed on
a replacement for the controversial head of Hungarian State
Television, Gabor Nahlik, MTI reported on 30 June. The new
candidate is Adam Horvath, a film, theater, and television
director. Horvath was a protege of the Kadar regime's culture
czar, Gyorgy Aczel. Nahlik's recall was initiated by care-taker
Prime Minister Peter Boross, in a gesture of political
reconciliation. Two vice presidential appointments were also
settled. The new appointments will be valid only until a new
media law is passed by the new parliament, but the appointees
received commitments to continued employment after the law takes
force. In a related development, Istvan G. Palfy, the director of
the TV news department, was relieved of his duties. Palfy had
been accused of propagating programs favoring the previous
government.  Karoly Okolicsanyi, RFE/RL, Inc.

DEMOGRAPHIC SITUATION WORSENS IN LATVIA. According to the State
Statistics Committee, the demographic indicators for 1993 were
largely negative, Briva Latvija of 20-27 June and Lauku Avize of
7 June reported. Since 1991 the number of deaths have exceeded
the number of births; in 1993 the difference was 12,438, whereas
in 1992 the figure was 3,851. The birth rate in 1993--10.3 per
1,000 inhabitants--was the lowest in the past 50 years. There was
also a significant decrease in the number of marriages. The
principal causes of death continue to be circulatory diseases,
accidents, and cancer. On the positive side, the infant mortality
rate declined. In January 1994, there were about 1,391,500
Latvians living in Latvia or about 4,000 fewer than in January
1993. Numerical declines were also registered among most of the
nationalities living in Latvia in 1993. The population
composition by nationality in January 1994 was: Latvians--54.2%;
Russians--33.1%; Belarusians--4.1%; Ukrainians--3.1%;
Poles--2.2%; Lithuanians--1.3%; Jews--0.5%; Estonians--0.1%; and
other nationalities--1.4%.  Dzintra Bungs, RFE/RL, Inc.

ESTONIA ADOPTS LEGISLATION ON BORDERS. On 30 June the Estonian
parliament adopted legislation on borders and border guarding,
Interfax reported. The Peace Treaty of Tartu of 1920 and other
international accords will define the land borders, while
international conventions will govern the air and sea borders.
Minister of Culture and Education Peeter Olesk told the press
that the parliament treats the current Estonian-Russian border as
provisional; he believes that much time is needed for the
resolution of border issues with Russia. (A recent public opinion
poll showed that most Estonian and non-Estonian respondents are
prepared compromise with Russia on border issues, BNS reported on
29 June.) The Estonian parliament also adopted a legislation on
border guards, who are to be under the jurisdiction of the
Ministry of Internal Affairs in peacetime and answer to the
commander-in-chief of the armed forces in time of war.  Dzintra
Bungs, RFE/RL, Inc.

NEW PARLIAMENT FACTION IN ESTONIA. On 30 June nine former members
of Pro Patria officially registered a new faction, called the
Rightists, BNS reports. Christian Democrat Karin Jaani is its
chairman; Conservative Enn Tarto is deputy chairman. Other
faction members come from the Christian Democrats, Conservatives,
and Republicans. The Rightists accused Pro-Patria of abandoning
its right-wing principles in compromises with its left-wing
coalition partners. The faction said that it will continue to
support the government's policies aimed at strengthening a
nation-based state and the market economy. Republican Indrek
Kannik said that the faction will probably run in the next
parliamentary elections together with the Liberal Democrats, who
had abandoned the Pro Patria coalition earlier.  Saulius Girnius,
RFE/RL, Inc.

FOREIGN VISITORS TO LITHUANIA. On 30 June Latvian President
Guntis Ulmanis made a brief unofficial visit to Vilnius to
discuss with his Lithuanian counterpart Algirdas Brazauskas the
meeting on 6 July of the three Baltic presidents with US
President Bill Clinton and the dispute on Latvian-Lithuanian sea
borders. Earlier that day China's Foreign Minister and Deputy
Prime Minister Qian Qichen began a two day visit to Lithuania. On
1 July he will hold talks with Brazauskas, Prime Minister Adolfas
Slezevicius, Foreign Minister Povilas Gylys, and Seimas Chairman
Ceslovas Jursenas on ways to strengthen political, economic, and
trade cooperation between the two countries, Radio Lithuania
reports. Qian arrived from Minsk where he met with high-ranking
Belarusian officials; he will fly to Tallinn on 1 July and then
to Helsinki. Qian noted that he would not visit Latvia because it
had established diplomatic relations with Taiwan. It was also
announced that Brazauskas would travel to Minsk on 2 July to
participate in the celebrations of the 50th anniversary of
Belarus's liberation from German occupation. He will meet there
with Russian Prime Minister Viktor Chernomyrdin. Saulius Girnius,
RFE/RL, Inc.

         NOTICE: The RFE/RL Daily Report will not appear Monday,
         4 July 1994.

  [As of 1200 CET]
  Compiled by Suzanne Crow and Louisa Vinton
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