Со счастьем дело обстоит так, как с часами: чем проще механизм, тем реже он портится. - Н. С. Шамфор
RFE/RL Daily Report

No. 142, 28 July 1994


gazeta of 22 July reported that a group of democratic politicians
plan to hold a conference in October at which to call for the
prolongation of Yeltsin's presidency, without holding the
elections scheduled for 1996. The plan was revealed in the course
of a meeting of former Acting Prime Minister Egor Gaidar and other
leaders of Russia's Democratic Choice party with its youth
affiliate, "Free Generation." Invitations to the October
conference have reportedly been sent to the leaders of other
democratic parties, such as the bloc of the liberal economist
Grigorii Yavlinsky and the Russian Movement for Democratic
Reforms, but thus far they have not agreed to participate. The
newspaper further reported that the plan had been initiated by
Yeltsin himself, who may attend the conference. The plan
reportedly also envisages a campaign in the government-controlled
media as a follow-up to the conference. Julia Wishnevsky, RFE/RL,

Viktor Chernomyrdin told conference participants in the city of
Penza on 27 July that defense enterprises should rely more on the
production of higher quality civilian goods, Interfax reported. "I
am all for selling military goods, but the problem is that no one
is buying them; if you manage to find a client I am ready to sign
any export license," Chernomyrdin was quoted as saying. Interfax
suggested that Chernomyrdin had criticized Viktor Glukhikh, the
head of the State Committee for Defense Industries, for failing to
clearly define the size and assortment of government defense
orders. Glukhikh was accompanying Chernomyrdin. Stephen Foye,
RFE/RL, Inc.

ITAR-TASS, AFP reported on 27 July that Boris Yeltsin had that day
acknowledged being pressured by his US and German counterparts to
reach an accord that guaranteed the withdrawal of Russian military
forces from Estonia by the previously agreed upon 31 August
deadline. Yeltsin was quoted as saying that "Estonia managed to
excite the West" and that he had received letters from the two
Western leaders "urging the withdrawal of the troops" by 31
August. "The human rights issue was postponed for several years,"
Yeltsin added. Meanwhile, ITAR-TASS on 28 July quoted the chairman
of the Russian Duma's international affairs committee, Vladimir
Lukin, as saying that the recently signed Estonian-Russian
agreement "was only the beginning, and not the end of a process of
regulating the problems of the Russian-speaking population" in
Estonia. He suggested that Moscow would move beyond demanding that
the rights of military pensioners be protected--an issue
specifically covered in the agreement--to a policy aimed at
ensuring full rights for all "Russian speakers" in Estonia.
Stephen Foye, RFE/RL, Inc.

CHINA-RUSSIA TRADE PLUMMETS. Trade between China and Russia fell
39% in the first half of this year as compared with the same
period last year, Chinese authorities reported on 28 July. Reuters
said that traders blamed the fall on a flood of low-quality goods
that have been sold by inexperienced firms on both sides of the
border. Chinese reports indicated that there are huge stockpiles
of Russian steel, cars, machinery, and equipment sitting in
Chinese border cities, and that this stockpiling has led to severe
cash shortages, heavy losses, and bankruptcies. Chinese officials
said the poor quality of Chinese goods had led Russians to buy
Western goods, despite their higher prices. Russia's primitive
banking system was portrayed as another obstacle to effective
trade. Chinese officials also suggested that trade had developed
too quickly after the collapse of the USSR, and that the necessary
laws and regulations had not been put in place to cope with the
business. Stephen Foye, RFE/RL, Inc.

Prime Minister Oleg Soskovets told visiting Greek Defense Minister
Gerasimos Arsenis on 27 July that Russia was prepared to sell
finished military products to Greece, but that Moscow was not
willing to satisfy Greek proposals for joint production of such
hardware, Interfax reported. Arsenis said that the purchase by
rival Turkey of military hardware threatened to upset the military
balance in the region, and that to meet this threat Greece was
interested primarily in joint production of arms with Russia
rather than in buying Russian arms off the shelf. Arsenis said
that increased military cooperation between Greece and Russia
could lay the foundation for the development of broader economic
relations. He was also quoted as saying that "due to international
agreements Russia has problems . . . concerning armed groupings on
its southern front," and that Greece regards Russia's position on
this issue with understanding. Arsenis was apparently referring to
Russian efforts to amend the CFE Treaty in a fashion that would
allow it deploy more troops in the Caucasus region; Turkey has
been among the countries most adamantly opposed to any such
change. Stephen Foye, RFE/RL, Inc.

quoted an unidentified senior official of the Russian Ministry of
Foreign Economic Relations as having told the Petroleum
Information Agency that Russia has no interest in the construction
of a pipeline to export crude oil from Kazakhstan and the Caspian
via Azerbaijan to south-eastern Turkey, since this would compete
with the planned Tengiz-Atyrau-Astrakhan-Novorossiisk pipeline and
in addition would effectively give Turkey control over the
transport of oil from the former USSR. As an alternative, Russia
is interested in a Greek proposal to build a pipeline from the
Bulgarian port of Burgas to the Greek port of Alexandroupolis,
which would obviate the need to carry Russian oil by tanker via
the Turkish straits. This proposal was discussed during talks in
Moscow on 27 July between Russian First Deputy Premier Oleg
Soskovets and Greek National Defence Minister Gerasimos Arsenis,
according to Interfax. Liz Fuller, RFE/RL, Inc.


unidentified member of Azerbaijan President Heidar Aliev's staff
told Interfax on 27 July that Azerbaijan would be prepared to
support the Russian proposal for deploying Russian peacekeeping
forces in Nagorno-Karabakh provided that Armenian forces withdraw
unconditionally from Shusha and Lachin. He proposed a total force
of between 3,000 and 6,000 CIS peacekeepers, of whom between 60
and 90 per cent would be Russians, under a CSCE mandate; this
force could, however, be deployed only after a political
settlement to the conflict had been reached and some 26 CSCE
observers had taken up their posts. (The most recent Russian draft
peace plan relegates discussion of a political settlement and
withdrawal from Lachin and Shusha until after the deployment of
peacekeeping forces.) Meanwhile Azerbaijan parliament speaker
Rasul Guliev criticized the CSCE Karabakh peace plan as "fraught
with risks" for Azerbaijan in that it would result in the
consolidation of Armenian territorial gains. Also on 27 July,
Armenian President Levon Ter-Petrossyan, on a private visit to
Moscow, met with Russian Foreign Minister Andrei Kozyrev to
discuss the Karabakh conflict, Interfax and ITAR-TASS reported.
Liz Fuller, RFE/RL, Inc.

TAJIK FIGHTING INTENSIFIES. A full day of fighting took place on
27 July in Tajikistan's Tajikabad and Garm regions, indicating
that rebel forces are significantly stronger than expected.
ITAR-TASS reports that 12soldiers of the Tajik army were killed in
the fighting that began in the evening of 26 July and appears to
be continuing. No casualty figures were available for the rebels,
many of whom have been holed up in the mountains since the active
phase of the civil war ended in December 1992. At least some of
the rebel forces may be under the command of Rezwon, a fighter who
has gained a cult following among opposition sympathizers.
ITAR-TASS also quoted an unnamed Tajik army officer as denying
speculation that the 56 soldiers now in opposition hands had
voluntarily joined the rebels and had not been forcibly captured
as officially claimed. A spokesman for the Tajik Foreign Ministry
said that his government has asked the UN High Commissioner for
Refugees, the Red Cross, and the CSCE for help in finding and
obtaining the release of the soldiers. Despite the escalation of
tension, neither the Tajik government nor opposition
representatives have so far threatened to pull out of the next
round of peace talks, scheduled to be held in Pakistan in August.
Keith Martin, RFE/RL, Inc.

IMF CREDIT FOR KYRGYZSTAN. Returning from a visit to the US,
Kyrgyz Prime Minister Apas Dzhumagulov told a press conference in
Bishkek that the International Monetary Fund is granting
Kyrgyzstan $104 million in credits over three years to support the
national budget, Interfax reported on 27 July. Dzhumagulov said
that he had also obtained a $60 million loan from the World Bank
for agricultural projects and help for small and mid-size
producers of consumer goods. Kyrgyzstan has been more severely
affected by the breakdown of Soviet-era economic ties than most
other successor states to the USSR, with industry nearly at a
standstill and unemployment increasing rapidly, and the country
has become dependent on foreign help to carry out its economic
restructuring program. Bess Brown, RFE/RL, Inc.

Moscow-directed anti-corruption campaign was launched in the
then-Soviet republic of Uzbekistan, the country's President Islam
Karimov has called for a campaign against corruption and bribery
on the part of regional and local officials, Interfax reported on
27 July. Karimov announced the campaign at a meeting of
Surkhandarya viloyat administrators, judicial and law enforcement
officials in Termez on 26 July. The earlier anti-corruption
campaign caused great bitterness in Uzbekistan, with many people
from all parts of the political spectrum criticizing Moscow for
"picking on" Uzbekistan when corruption was spread throughout the
USSR, and was a major factor in the alienation of the republic
from the center, which eventually led to Uzbekistan's
independence. The problem of corruption, as Karimov pointed out,
continues to exist. Bess Brown, RFE/RL, Inc.


Foreign Minister Nicolae Osmochescu, who represented his country
at the recent meeting in Moscow of the Committee of Foreign
Ministers of CIS member states, told domestic media as reported by
Basapress on 26 July that Moldova had declined to join, or entered
reservations on, most decisions taken at the meeting. As a general
principle, Moldova will support decisions on economic cooperation
but will not participate in political and military integration
within the CIS, Osmochescu said. Vladimir Socor, RFE/RL, Inc.

                    CENTRAL AND EASTERN EUROPE

SERBS BLAST UN CONVOY. International media reported on 27 July
that Bosnian Serb gunners hit an unarmed UN convoy near Sarajevo,
killing one British soldier. The Serbs had announced the previous
day that they were closing the land route to the capital to all
but UN vehicles, but this attack means that even the UN will stay
off that "blue route." The Serbs later said that they thought the
convoy was a Muslim one, but the BBC on 28 July reported that it
was "impossible" to mistake the clearly identified, white UN
vehicles on a bright sunny day. The UN called in NATO warplanes,
but they held their fire because they could not identify a target,
Reuters noted on 27 July. The next day's Los Angeles Times,
however, says that the flights were routine and that the UN
"appeared reluctant to call a Western air attack. . . ." These
latest Serb moves may be described as yet another display of what
the Serbs themselves call "inat," or stubborn defiance. Patrick
Moore, RFE/RL, Inc.

quoted US Secretary of Defense William Perry as saying that there
is deep concern over "a pattern of Bosnian Serb provocations." He
warned the Serbs of "consequences" if they do not stop opposing
the Contact Group's peace plan, adding that lifting the arms
embargo against the Muslims could then become an "irresistible"
option. Reuters quotes one Sarajevo resident, commenting on the
renewed blockade, as saying that "it's going to be a madhouse
again. Someone should really stop this man Karadzic. He does
whatever he wants." Patrick Moore, RFE/RL, Inc.

Defense Minister Pavel Grachev and special envoy Vitalii Churkin
met with Serb rebel leaders from Croatia, Politika reports on 28
July. Churkin told AFP that the Bosnian Serbs, who were earlier
given a letter from President Boris Yeltsin, are now "considering
making their response to the Contact Group clearer." Today's
Politika runs the headline: "Grachev announces an impending
denouement over Bosnia." It could well be, however, that the Serbs
are seeking to play the Russians along and split them from the
West, thereby ensuring a key Serb goal that no serious
international action is taken against them. The 27 July Washington
Post quotes Churkin as saying that Russia is following its current
strategy with the Serbs because it "assures a certain place for
Russia in the negotiating effort." Interfax, however, cites an
unnamed Russian Balkan expert as pointing out that "Russia has its
own national interests differing from the interests of Bosnian
Serbs . . . Serb politicians of the 20th century recall their
'special relations' with Russia only when they get in trouble, and
forget about such relations as soon as the clouds over them
disperse." Patrick Moore, RFE/RL, Inc.

on 27 July that refugees have agreed to let the Croatian
government take over seven of their posts blocking UNPROFOR
checkpoints. The refugees demand that the UN finally start
carrying out its mandate to help them return to their homes in
Serb-held territory, and appear to have launched their blockade on
1 July with the connivance of Croatian police. Prime Minister
Nikica Valentic, however, threatened to resign if the blockade
were not at least partially lifted, and announced the new
agreement himself. That same day Hina reported on President Franjo
Tudjman's appeal to the Contact Group not to neglect Croatia's
Serb-held territories in drafting their final settlement for
Bosnia. Finally, Politika reports on 28 July on the long-standing
feud in the Croatian military between professionals and those who
owe their careers to their ties to the governing Croatian
Democratic Community (HDZ). Patrick Moore, RFE/RL, Inc.

the 50th anniversary of the Warsaw Uprising have underlined the
disparity between Germany's surprisingly warm relations with
Poland and Russia's far less amiable approach. To transform the
anniversary into a symbol of historical reconciliation, President
Lech Walesa issued invitations to both the German and the Allied
heads of state in August 1993. The decision to invite the German
and Russian presidents stirred controversy. A few nationalist
groups, including the Confederation for an Independent Poland,
have called for a boycott; they argue that the presence of
"representatives of countries that murdered Poles offends the
victims' memory." German President Roman Herzog accepted Walesa's
invitation, graciously expressing respect for Poles who objected
to his presence. "We have waited 40 years for Poland's return to
the community of free nations," Herzog told PAP on 26 July.
Russian President Boris Yeltsin declined the invitation, however.
Russia will be represented by the Yeltsin's chief of staff, Sergei
Filatov. Although Yeltsin claimed an overcrowded calendar,
Interfax reported on 26 July that the Russian president will spend
the first ten days of August on vacation. A Polish official called
Yeltsin's absence "a political fact." Reporting a joke now making
the rounds in Warsaw, Gazeta Wyborcza said that it would be most
fitting if Yeltsin were to observe the anniversary ceremonies
through binoculars from the far side of the Vistula, just as the
Red Army did as the Nazis obliterated the uprising in 1944. Louisa
Vinton, RFE/RL, Inc.

WALESA OPENS PAMPERS PLANT. The Polish president presided at the
opening of Procter and Gamble's new diaper factory in Warsaw on 26
July, PAP reports. On the defensive after media speculation about
his own financial interests, Walesa explained that he had promised
to attend if P&G invested $200 million in the Polish economy. (The
firm, the 12th largest investor in Poland, plans to invest $190
million by 2005.) Referring to the press uproar over his wife's
opening of a pasta plant in 1992, Walesa stressed that neither he
nor anyone in his family owns shares in any firms. Walesa added
that he plans to think about making money only after leaving
politics. The new plant is P&G's largest investment in Eastern
Europe. It will produce 2 billion diapers yearly--80% for the
baby-happy Polish market--and employ 600. Louisa Vinton, RFE/RL,

information released on 27 July by the chairman of the Executive
Committee of the National Property Fund, Viliam Vaskovic, the fund
proposed that the Privatization Ministry approve a direct sale of
shares it holds in the VSZ ironworks, the Slovenska Poistovna
insurance company, gasoline distributor Benzinol, Investicna a
Rozvojova Banka and the bank Slovenska Sporitelna to selected
buyers. The fund has also begun to sell on the capital market
shares of 88 companies which remained unsold after the first wave
of coupon privatization; 47% of the shares have now been sold for
18.4 million koruny through the over-the-counter RM-System. Shares
of 21 firms have now been sold out, but in 37 companies no shares
have been traded, TASR reported. Sharon Fisher, RFE/RL, Inc.

Democratic Slovakia Chairman Vladimir Meciar recently sent a
letter to the CSCE accusing Christian Democratic Movement Chairman
Jan Carnogursky of "conducting an election campaign in a way which
does not correspond to democratic, moral, and ethical standards of
democratic countries," TASR reported on 27 July. The letter
continued by saying that "politicians who adopt these methods
should withdraw from public political life, as did former US
President Richard Nixon after the Watergate scandal." Meciar was
referring to a statement made by Carnogursky during a recent
parliamentary session saying he had found a document on his desk
describing the MDS campaign strategy, including its plans to spend
more than 66 million koruny. This prompted Carnogursky to support
a bill on limiting a party's campaign spending to a maximum of 12
million koruny. Meciar asked the CSCE to reconsider Carnogursky's
post as CSCE vice-chairman since, he said, "from a moral
perspective, he has no right to hold this post." Meciar also sent
a letter to the European Democratic Union, suggesting a
reevaluation of the CDM's membership in that group. Although the
MDS claimed the document Carnogursky found was a fake, Carnogursky
said on 27 July that he is convinced of the document's
authenticity. Meciar himself has several times "found" documents
which are damaging to his political opponents. Sharon Fisher,
RFE/RL, Inc.

HORN ON GABCIKOVO DAM. Premier Gyula Horn on 27 July told
representatives of Hungary's environmental movements that Budapest
did not intend to withdraw its suit with the International Court
of Justice (ICJ) at The Hague, whose decision cannot be expected
before Spring 1997, MTI reports. On the other hand, Horn would
like the talks between Hungarian and Slovak experts on the
Gabcikovo-Nagymaros dam, which showed no progress over the past
year, resumed within two weeks so as to facilitate a mutual accord
with Slovakia. According to most ecologists, there is no
environment-friendly solution to Gabcikovo and Hungary's decision
to halt the project was correct and any change would render the
ICJ suit meaningless. According to state secretary for foreign
affairs Istvan Szent-Ivanyi, the two countries have set no
particular time limit to the signing of a state treaty and are
putting the emphasis not on speed but on a long-term comprehensive
settlement of all bilateral issues with the participation of
Slovakia's Magyar and Hungary's Slovak minorities.Alfred Reisch,
RFE/RL, Inc.

HUNGARY ARMY IN DIRE LACK OF FUNDS. According to defense minister
Gyorgy Keleti, the Hungarian Army is presently faced with a 3.5
billion forint ($35million) shortage and cannot expect to get the
extra 2.5billion requested by his predecessor Lajos Fur, MTI
reported on 27 May. Strict saving measures will thus be required,
such as the call-up of 21,000 instead of 23,000 conscripts next
month and the gradual reduction by 10,000 to 12,000 of the number
of army conscripts; the joint exercise with British soldiers in
September will be the only maneuver held this year. Keleti said
that in the future, the army will play a lesser role in Hungary's
security policy, which will rely more on political means and the
bilateral treaties to be signed with Hungary's neighbors. Keleti
said the air defense accord signed on 23 July with Slovakia was
meant to be a confidence-building measure and that he would next
meet his Romanian counterpart Gheorghe Tinca on 30 July in Gyula,
Hungary to discuss bilateral military cooperation. Alfred Reisch,
RFE/RL, Inc.

National Assembly ratified on its second reading a settlement
involving $8.1 billion of Bulgaria's total $9.3 billion foreign
debt to commercial banks. In return for a $3.8 billion debt
reduction, the approximately 300 creditor institutions expect that
Bulgaria immediately pays a $720 million installment, followed by
$250-270 million annually over the first seven years. The
agreement, signed on 29 June, runs over 30 years. While Germany's
Deutsche Bank represented lender interests in the negotiations,
Citibank of the United States has agreed to act as the agreement's
fiscal agent. As quoted by Western agencies, Prime Minister Lyuben
Berov prior to the ballot made a strong appeal to all lawmakers to
support the motion, in order for the country to become
reintegrated into the international financial community. But while
a majority voted for the bill, the deputies of the Union of
Democratic Forces came out either against or abstained. Explaining
the coalition's position, UDF Chairman Filip Dimitrov said the
settlement may be important, but has dangerous flaws. Kjell
Engelbrekt, RFE/RL, Inc.

Parliament's vote last week to designate the country's official
language as "Moldovan," rather than Romanian, in Moldova's new
constitution has triggered an outcry in Romania. At a briefing on
27 July, carried by Radio Bucharest, the Romanian Foreign
Ministry's spokesperson said that the Moldovan population's and
Parliament's preference for the term "Moldovan" reflected
"Bolshevik indoctrination." In a communique carried by Radio
Bucharest on 26 July the Civic Alliance, which groups some of the
leading cultural and political figures of Romania's democratic
opposition, described Moldova's parliament and government as
"Stalinist and Brezhnevian," "neocommunist," and "anti-Romanian
and pro-Russian," and said that "our unification is again gravely
threatened from the East." Vladimir Socor, RFE/RL, Inc.

Russian Foreign Ministers Juri Luik and Andrei Kozyrev did not
sign, as expected, an agreement on the dismantling of the two
nuclear reactors at the submarine base at Padilski due to
"technical" reasons, BNS reports. A leader of the opposition
Coalition Party, Endel Lippmaa, criticized the agreements as
giving a whole lot of rights to Russians and nothing to Estonia
and expressed doubts that the parliament would ratify them. He
noted that Russian troops would remain in Padilski after 31 August
just as they will at the Skundra radar station in Latvia.
President Lennart Meri noted that almost half of the 10,700
military retirees were born before 1930 and thus already had the
right to a residence permit as did the 2,560 who were legal
Estonian citizens. Stressing the fact that Estonia had the right
to refuse residency permits to individuals for security reasons,
Prime Minister Mart Laar said that he considered all retired
Russian military a threat to Estonia's independence and doubted
that a majority of the retirees would be allowed to remain in
Estonia. Saulius Girnius, RFE/RL, Inc.

LITHUANIA, BELARUS TALKS. On 26 July Belarus Deputy Foreign
Minister Stanislau Ahurtsau traveled to Vilnius where he held
talks with his Lithuanian counterpart Rimantas Sidlauskas on
border questions, Radio Lithuania reports. The two agreed on the
exchange of railroad tracks that are either on Lithuanian or
Belarusian territory, but belong to the railroad systems of the
opposite side and the continuation of the construction of a
Lithuanian cultural center in the Astravec region of Belarus.
Further talks will be held in August on the fate of the Adustiskis
railroad station which both sides claim. Ahurtsau traveled to Riga
on 27 July to attend the opening of a Belarusian embassy. Saulius
Girnius, RFE/RL, Inc.

President Leonid Kuchma issued a decree appointing Dmytro
Tabachnyk as the head of the president's administration, Ukrainian
television reported. The decree also created a new ministry for
nationalities, migration and cults, replacing the earlier ministry
for nationalities, migration and religious affairs. Mykola Shulha
was appointed minister for nationalities, migration and cults.
Ustina Markus, RFE/RL, Inc.

Interfax reported that IMF officials will work out a stabilization
program with Ukrainian experts which could serve as the foundation
for IMF aid. The decision was made during a meeting between Kuchma
and IMF managing director Michel Camdessus. The program is to be
submitted to the IMF session in Madrid in October. The exact
amount of credit Ukraine can expect was not specified. Camdessus
also met with Prime Minister Vitalii Masol. Ustina Markus, RFE/RL,

hard-line Slavic Assembly Belaya Rus has sent a letter to Russian
president Boris Yeltsin calling for the cancellation of the
planned joint US-Russian military exercises in the Urals,
Belarusian radio reported on 26 July. According to the letter, the
exercises would only benefit the Americans "and will harm the
interests of our great Fatherland." The letter was delivered to
the Russian embassy in Minsk. Ustina Markus, RFE/RL, Inc.

second time used its veto right to stop a $42-million loan of the
European Union to Albania. Greece and the other member states had
one week earlier--at a meeting of all EU foreign
ministers--reached a compromise on the immediate release of
$18million of the loan, and the rest following a probe into
Albania's political and human rights situation. Reuters reports
that Greece now, however, insists that the second installment of
the loan should require unanimous EU approval, a demand other EU
governments are not prepared to accept. Athens is of the opinion
that Tirana consistently violates the rights of the country's
minority Greeks. Kjell Engelbrekt, RFE/RL, Inc.

the Democratic Party of the Right and the Party of the Social
Justice, have founded an "Anti-communist Front of the Right" in
cooperation with the National Society of the Expropriated-Right of
Possession, Gazeta Shqiptare reported on 23 July. In a joint
declaration the three groups agreed that the Anti-communist Front
will be formally set up and that its political agenda will be
chiefly based on the program of the National Society of the
Expropriated. The front will be governed by a joint council made
up of the leaders of the three organizations. Both parties are
minor ones, but together they might begin to have some clout.
Fabian Schmidt, RFE/RL, Inc.

[As of 1200 CET]
Compiled by Vladimir Socor and Dan Ionescu
The RFE/RL DAILY REPORT, produced by the RFE/RL Research
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