A man should never be ashamed to own he has been in the wrong, which is but saying, in other words, that he is wiser today than he was yesterday. - Jonathan Swift
RFE/RL Daily Report

No. 146, 3 August 1994


three-day trip to Karelia, Russian Prime Minister Viktor
Chernomyrdin warned industrial managers "not to expect anyone to
solve your problems for you," ITAR-TASS reported on 2 August. He
was responding to a request from the head of a Petrozavodsk paper
plant for government assistance in marketing its products.
Managers also pressed for exemptions from duty on imported
equipment and the right to retain foreign currency earnings. The
prime minister said he was tired of complaints from industrial
managers and constant requests for subsidies. "Enter the world
market, look for orders inside the country," Chernomyrdin chided.
He told Petrozavodsk residents on 2 August that tax rates may be
cut in 1995 in order to spur domestic production. The government
plans to implement changes in the tax code by decree, rather than
waiting for parliament to approve a new law, but any revisions
will not take effect before 1995, Chernomyrdin added. He also
noted that the government is preparing a "comprehensive" plan to
assist ailing defense industries; he acknowledged that this will
require significant spending, according to an Interfax report on
2 August.  Louisa Vinton, RFE/RL, Inc.

statistical committee showed GDP in the twelve member countries
slumping in the first half of 1994, Interfax reported on 2
August. Belarus experienced the sharpest decline, a 31% drop
compared to the same period in 1993. Kazakhstan's GDP fell by
26.9%, while Ukraine's dropped by 26.5%, and Russia's declined by
17%. Overall, GDP for all CIS countries in the first six months
of 1994 amounted to only 80% of the 1993 figure; in turn, GDP for
the first half of 1993 was 90% of the 1992 figure. Inflation
rates for June were low in Ukraine (1%) and Russia, Kyrgyzstan,
and Moldova (between 3-5%), but monthly inflation continued to
soar elsewhere. In June, prices rose by 20% in Uzbekistan and
Turkmenistan; by almost 30% in Azerbaijan and Belarus; and by
over 40% in Kazakhstan and Armenia. Louisa Vinton, RFE/RL, Inc.

official support for the opposition to Chechen President Dzhokhar
Dudaev suggests that Moscow is ready to use military force
against Chechnya, writes Segodnya on 3 August. Although Chechens
had a long tradition of military resistance to Russian troops in
both the 19th and 20th centuries, today's situation is different.
If the past experience could be a guide, Dudaev's forces will
need a continuous armament supply from a third, neutral
territory. Today, however, Russia has already blocked all
territories surrounding Chechnya and has enough troops in the
region for a quick and successful military operation, the
newspaper concluded. While the anti-Dudaev opposition may back
Russia's using military force against Chechnya now, the
opposition and Dudaev could unite in resistance to the Russian
troops at a later time, Nezavisimaya gazeta argued on 3 August.
Meanwhile, the Federal Counterintelligence Service (FSK) is
intensifying its operations against Chechnya, reported Moskovskii
komsomolets. A week ago FSK Deputy Director Evgenii Savostyanov
covertly arrived in the region, perhaps imagining himself as a
kind of Lawrence of Arabia, the newspaper commented.  Victor
Yasmann, RFE/RL, Inc.

2 August, Umar Avturkganov, the leader of the opposition
Provisional Council formed in Moscow last week, claimed that the
Council controls the entire territory of Chechnya with the
exception of a few villages still loyal to president Dudaev. The
same evening Russian TV news quoted the Council as saying that
the power in Chechnya belongs to them, and that Dudaev had been
removed from office. In Groznyi, the newscasts added, Chechen
Prosecutor-General filed charges of high treason against
Avturkhanov and appealed to Moscow for the extradition of the
"state criminal." Meanwhile, Russian Prime Minister Chernomyrdin
told a news conference that the time is ripe for Moscow to
undertake some unidentified "concrete measures" against Chechnya,
but gave assurances that his government would not use force to
resolve the deadlock.  Julia Wishnevsky, RFE/RL, Inc.

August quoted Ingush president Ruslan Aushev as complaining that
Yeltsin's decree of December 1993 had not been implemented. The
decree gave Ingush refugees who were displaced in the course of
the violent ethnic conflict in 1992-93 the right to return to
their former settlements in the neighboring Caucasian republic of
North Ossetia. Aushev reportedly asked Acting Prosecutor-General
Aleksei Ilyushenko to place the resettlement of the refugees
under control of the Prosecutor-General's office.  Julia
Wishnevsky, RFE/RL, Inc.

Ostankino Television broadcast a 15-minute interview with Sergei
Kovalev, chairman of the Human Rights Commission attached to the
office of the Russian President. Kovalev said that while Yeltsin
had been justified last fall to violate the then Russian
Constitution to resolve the conflict with the parliament, his
June decree on combatting organized crime violated the new
Russian Constitution and infringed on human rights. This was the
first time that one of the two TV channels available nationwide
criticized the decree. They had previously only broadcast the
views of Russian Prosecutor-General Aleksei Ilyushenko and
representatives of the counterintelligence service and police who
supported the decree.  Julia Wishnevsky, RFE/RL, Inc.

Aleksandr Barkashov, the leader of Russian National Unity, widely
reputed to be a neo-Nazi paramilitary organization, has
indirectly confirmed KGB involvement in creating the extremist
opposition to Yeltsin. Barkashov's revelations appeared in the
tabloid Inform-600 Seconds, no. 2. When asked about his role in
establishing the ultranationalist Russian National Assembly
(RNA), led by former KGB General Aleksandr Sterligov. Barkashov
said: "Apart from the KGB Fifth Directorate, I was one of the
founders of the RNA." It should be noted that when the RNA was
formed in 1992, the KGB Fifth Directorate officially did not
exist. This unit, responsible for persecuting dissidents under
the communism, was renamed Directorate on Combatting Terrorism in
the Gorbachev era.  Julia Wishnevsky, RFE/RL, Inc.

MOSCOW DENIES DEAL ON HAITI. Russian Foreign Ministry spokesman
Grigorii Karasin on 2 August denied press reports that Russia
colluded secretly with the US by approving the UN endorsement of
a US-led armed intervention in Haiti in exchange for Washington's
approval of Russian peacekeeping operations in Georgia. Interfax
quoted Karasin as saying that there was no link between the two
issues and that Moscow's actions were ruled by "principles of
settling conflicts and complex situations." He described the
situations in Haiti and Georgia (referring specifically to the
conflict between Georgia and Abkhazia) as entirely different, and
called the UN Security Council resolution on Haiti a "difficult
but necessary step." Meanwhile, Interfax also reported that a
leader of the communist faction in the Russian State Duma, Viktor
Zorkaltsev, denounced the UN Security Council resolution on
Haiti, describing it as a cover for American hegemonic ambitions.
Zorkaltsev also spoke out against the use of Russian peacekeepers
in Haiti and suggested that Russian forces should be withdrawn
from Abkhazia as well.  Stephen Foye, RFE/RL, Inc.

arms trading company, Rosvooruzhenie reportedly told ITAR-TASS on
2 August that Pakistani authorities have made unofficial
inquiries into the possibility of purchasing Russian fighter
aircraft. The claim follows a statement by Pakistani President
Farooq Ahmed Leghari on 1 August that Pakistan would examine
various options for acquiring high-tech aircraft if the US did
not lift a ban on supplying already contracted F-16 fighters. As
AFP and Reuters noted, Washington stopped delivery on the F-16's
in 1990 because of suspicions that Pakistan was working to
produce nuclear weapons. In early July Russian Foreign Ministry
spokesman Grigorii Karasin was quoted by Interfax as saying that
Russia has "no ideological or other prejudices" on the issue of
selling arms to Pakistan, but the issue is undoubtedly a delicate
one insofar as Russia must be careful to avoid antagonizing
India, a rival of Pakistan and traditionally one of Moscow's
largest arms customers.  Stephen Foye, RFE/RL, Inc.

OTHER ARMS DEVELOPMENTS. On 2 August Kuwaiti Defense Minister
Sheik Ahmad Hamoud al-Sabah announced that the Gulf State would
soon sign an agreement to purchase Russian weaponry. According to
Reuters, he gave no details of the type of weapons to be
acquired, but said that the purchase would come within the
context of a security pact between the two countries. Reuters had
reported on 22 January that Kuwait was negotiating the purchase
from Russia of BMP-2 and BMP-3 armored personnel carriers and
other unspecified "vehicles." Also on 2 August, AFP and ITAR-TASS
quoted a US Pentagon source as denying that the US had supplanted
the USSR as the major supplier of weaponry to the Third World.
His remarks followed publication of an annual US Congressional
Research Service report that said that the US had increased its
share of arms sales to the Third World in 1993 to more than 72%
of the total. The same report said that Russia was the third
largest supplier of military hardware to the Third World, and
that Moscow had increased its sales from $1.6 billion in 1992 to
$1.8 billion last year.  Stephen Foye, RFE/RL, Inc.


MILOSEVIC WARNS BOSNIAN SERBS. On 2 and 3 August international
media report that Serbian President Slobodan Milosevic has
threatened to sever ties with the Bosnian Serbs if they continue
to reject the terms of the international community's peace plan
for Bosnia and Herzegovina. Milosevic's warning, which is being
described as an "unprecedented" move by some observers, came in
the form of a 2 August letter to the Bosnian Serb leadership. The
Serbian government statement, which appears in the 3 August issue
of Politika, states that the Bosnian Serbs' continued rejection
of the peace plan would be tantamount to a "betrayal" of Serbian
national interests and notes that it is "not honorable for Serbia
and the whole of [the rump] Yugoslavia to wait for the start of
the lifting of sanctions" while the Bosnian Serbs delay and
attempt to "clarify" the terms of the peace. Belgrade has been
threatened with a tightening of the UN-backed sanctions if the
Bosnian Serbs continue to reject the peace. Thus far,
international reaction to Milosevic's warning has tended to be
positive. Washington, however, has expressed some reservation,
with a State Department official stating that Belgrade's letter
"has to be supported by actions . . . and show something
substantial." Finally, SRNA reports that the self-styled Bosnian
Serb parliament, in what appears to be a reaction to Belgrade's
warning, will meet on 3 August to give some "definitive" response
to the peace offer. Some hard-line Bosnian Serb leaders have
already publicly condemned Milosevic for the letter, accusing the
Serbian President of treason.  Stan Markotich, RFE/RL, Inc.

SNIPING TO END IN SARAJEVO. On 2 August Reuters reported that
Bosnian Muslims and Serbs have reached an agreement to end
sniping in Sarajevo. The accord is to be signed on 3 August, and
will go into effect 24 hours thereafter. Bosnian government
representative Hasan Muratovic and president of the self-styled
Bosnian Serb parliament Momcilo Krajisnik also discussed prisoner
exchanges and the possibility of reopening a supply route to the
Bosnian capital, but failed to reach any agreement on these
issues. Finally, on 2 August Reuters also reports that rebel
Serbs in the Croatian region commonly known as Krajina have
evidently "plundered" UN weapons depots in order to aid Bosnian
Muslim rebel leader Fikret Abdic, who has recently suffered heavy
losses against Bosnian forces loyal to Sarajevo.  Stan Markotich,
RFE/RL, Inc.

reports on survey results compiled by the "Partner" agency, which
recently conducted a Serbia-wide telephone poll of 500 residents.
According to "Partner" controversial Serbian President Slobodan
Milosevic remained the most popular political figure in the rump
Yugoslav republic during the month of July. The second most
popular politician was found to be Democratic Party leader Zoran
Djindjic, while Vojislav Kostunica, leader of the Democratic
Party of Serbia, was third. The ultra-nationalist leader of the
Serbian Radical Party, Vojislav Seselj, ranked fourth while
another familiar face on the Serbian political landscape, Serbian
Renewal Movement leader Vuk Draskovic, held fifth place.  Stan
Markotich, RFE/RL, Inc.

Slavic Language Service reported that the independent Croatian
weekly, Feral Tribune, will publish again "next week," after a
one-week absence. According to Feral Tribune chief editor Viktor
Ivancic, the weekly was not published on 1 August as a protest
against a 50% sales tax imposed by Zagreb on each copy of the
publication. When the upcoming issue of Feral appears, Ivancic
has promised it will include copies of all official documents
relating to the tax and will also contain critiques of Education
and Culture Minister Vesna Jurkic-Girardi and the ministry. In
the past, the 50% tax has applied only to pornographic
publications and a rightist magazine. Feral is renowned for its
criticism of Zagreb authorities, principally Croatian President
Franjo Tudjman, and Ivancic insists the tax levy against Feral is
to be seen as a form of censorship. Nenad Pejic and Stan
Markotich, RFE/RL, Inc.

29 July carried an interview with Antonio Napolitano, US official
in charge with the enforcement of sanctions against rump
Yugoslavia, saying that a heavy oil contraband is presently
taking place across Lake Shkoder into Montenegro. According to
Napolitano, Albania imports double the amount of oil it consumes
and efforts are being made to find out who is behind the illegal
traffic. Traffic of oil tanker trucks within Albania has
increased sharply. The smugglers make good money since the Serbs
pay 1 DM per liter over the going price. Napolitano also said
that over 90% of the oil is transported in barrels through Lake
Shkoder or the Buna river in the north: "the barrels are dragged
across the lake by ropes." No exact figures are known, but large
quantities of oil reportedly enter Albania from Greece and Italy
(12 thousand barrels during the May-June period, or 2 million
liters, according to some sources).  Louis Zanga, RFE/RL, Inc.

President Roman Herzog's speech, but we will not remember Sergei
Filatov's remarks." This was how Polish Foreign Minister Andrzej
Olechowski summed up the discord between the German president's
gesture of atonement at the 50th anniversary of the Warsaw
Uprising on 1 August and the Russian failure to do more than pay
homage to the victims. Olechowski called Herzog's gesture
"historic" and ranked it with the Polish bishops' appeal of 1965
and Willy Brandt's fall to his knees before the Warsaw Ghetto
monument in 1970 as crucial gestures serving reconciliation
between the two nations. In contrast, Olechowski expressed
"disappointment" at the speech by Filatov, President Boris
Yeltsin's chief of staff and special envoy for the occasion.
Olechowski brushed aside Filatov's appeal to let historians
settle the conflict over the uprising; the facts are there for
all to see, Olechowski said. He nonetheless expressed his
"personal respect" for Filatov and his confidence that true
reconciliation can be achieved between Russia and Poland in the
future, Gazeta Wyborcza reports.  Louisa Vinton, RFE/RL, Inc.

RUSSIA BRISTLES AT POLISH STANCE. Gazeta Wyborcza reported on 3
August that Filatov is viewed in Moscow circles as a friend of
the "Polish lobby." During a visit to the graves of Soviet
soldiers who fell on Polish territory during World War II,
Filatov nonetheless hectored the Poles, charging that the
anti-Russian "uproar" surrounding the uprising ceremonies had
prompted a negative Russian reaction. Filatov reminded the Poles
that Red Army soldiers had "liberated" Poland and Warsaw; "no one
should ever forget this," he said. In talks with President Lech
Walesa, Filatov stressed the need to build good relations
regardless of the ballast of the past. Walesa told Filatov that
Poland will continue to press for NATO membership and does not
intend to ask anyone for permission. He criticized the Russian
approach to NATO; the attempt to secure spheres of influence
violates the idea of partnership, he said. In remarks for Polish
TV, Walesa expressed regret at the lack of a Russian apology;
"even the worst truth, once revealed, can be accepted," he said.
Walesa and Filatov agreed to form a presidential consultative
committee to deal with urgent bilateral issues. Russian press
reports on the uprising anniversary remained unsympathetic;
Izvestiya charged on 2 August that "the Poles seem to have
forgotten who suppressed the uprising" and insisted that the
uprising was "not Katyn." Louisa Vinton, RFE/RL, Inc.

Slovak Interior Ministry provided TASR with a list of candidates
set to run in the parliamentary elections scheduled for 30
September and 1 October. The parties had until midnight on 1
August to submit the lists. In Bratislava and Eastern Slovakia 20
parties will compete, and in Western and Central Slovakia 19 will
participate. Registered parties include the Common Choice (a
coalition of the Party of the Democratic Left, the Social
Democratic Party of Slovakia, the Green Party and the Movement of
Peasants), the Movement for a Democratic Slovakia-Agricultural
Party coalition, the Christian Democratic Movement, the
Democratic Union of Slovakia, the Democratic Party, the Slovak
National Party, the Association of Workers of Slovakia, the
Romany Civic Initiative, a coalition of three ethnic Hungarian
parties, the Christian Social Union and New Slovakia, among
others. In the last parliamentary elections held in June 1992, 27
Slovak parties participated.  Sharon Fisher, RFE/RL, Inc.

discussions between World Bank and International Monetary Fund
officials and Hungarian government and Hungarian National Bank
(HNB) representatives ended on 1 August, MTI reports. The WB and
IMF said that as a result of its large current balance of payment
and state budget deficits, Hungary had reached the limits of its
economic possibilities. Preparations for a three-year financing
plan to support the Horn government's program could not be
started before "radical and very drastic" corrective economic
measures were undertaken. They proposed to reduce this year's BoP
deficit (which stood at $1.2 billion at the end of April) to $2
billion, and to $1.5 billion in 1995 and not to allow the state
budget deficit, which is expected to reach 8%-9% of Hungary's
GDP, to exceed 3%.  Alfred Reisch, RFE/RL, Inc.

Finance Minister Laszlo Bekesi, the WB/IMF assessment is similar
to that of the Hungarian government but the latter feels it
cannot achieve such large-scale improvements soon. Thus it
expects the BoP deficit to reach $2 to $2.5 billion in 1995 and
the state budget deficit, presently at 184 billion forint ($1=101
forint) to reach 300 billion (or more if not streamlined) by the
end of this year. Right now, the government does not know how to
finance next year's budget and will discuss on 4 August a finance
ministry proposal for heavier consumer taxes on fuels and
consumer goods starting 1 October. On 2 August the HNB announced
that because it spent more on debt servicing than it took in new
credits, Hungary's net foreign debt rose by $900 million in the
first four months of 1994 and stood at $16.8 billion, while the
gross debt reached $25.6 billion.  Alfred Reisch, RFE/RL, Inc.

minority affairs in the prime minister's office, on 1 August
discussed the Hungarian-Slovak bilateral treaty with the leaders
of Hungary's Slovak minority, MTI reported. He said his
government did not want to link the issue of Hungary's Slovak
minority with that of the Magyar minority in Slovakia while the
Slovak minority leaders said they expected the treaty to slow
down the assimilation of Hungary's 110,000 Slovaks and provide
more aid for educational purposes. Tabajdi also discussed the
treaty with Erzsebet Borza, vice chairman of Slovakia's
Democratic Party of the Left and an ethnic Hungarian. They agreed
that the signing of the document was an important
confidence-building factor and had to guarantee both the
inviolability of the two countries' borders and the rights of
national minorities as defined by existing international
documents and recommendations.  Alfred Reisch , RFE/RL, Inc.

total number of criminal offenses in Hungary in the first half of
1994 fell by 6.2% to 197,261, the number of crimes against public
order amounted within that figure to 22,595, a 93.8% jump
compared to the first half of 1993. Violent crimes and acts of
disorderly conduct rose by 8% to 13,124, MTI reported on 29 July.
Alfred Reisch, RFE/RL, Inc.

the leader of one of Romania's largest miners' unions, threatened
on 2 August to call a general strike by all miners, Reuters
reported on the same day. Cosma, who led miners in protests in
Bucharest that turned violent in 1990 and 1991, also said he
would lead 200,000 miners in a march on the capital if any of the
miners staging hunger strikes in Targu Jiu and Deva were to die.
In a statement, Cosma said the threats were a response to the
government's lack of action over the six-day old strike that
began in Rovinari and spread to include nearly all of the
country's brown coal miners and some of the copper miners. Radio
Bucharest reported on 2 August that the protest demonstrators in
Targu Jiu said that if negotiations with the Minister of
Industries would not begin by next morning, they would block
roads leading in and out of the town and would not de-block them
before Prime Minister Nicolae Vacaroiu would personally come to
Targu Jiu to negotiate the ending of the labor conflict. The
radio also said that some 200 copper miners of the Deva region
had barricaded themselves underground. Michael Shafir, RFE/RL,

CLUJ DIGGING BEGINS. The controversial archaeological diggings in
the main square of Cluj were started on 2 August, local media and
Reuters reported on the same day. Policemen were stationed near
King Mathias' statue, but were later withdrawn since there was no
repeat of the scuffles that took place there last month,
preventing the start of the excavations. Following the scuffles,
the government suspended the diggings and appointed a commission
to investigate the matter. The commission said some prospecting
that would not endanger the monuments in the square could be
carried out. The leadership of the Hungarian Democratic
Federation of Romania reacted by saying again that the diggings
were illegal because they had not been approved by the local
council of Cluj, as well as being "provocative" and
anti-Hungarian. The HDFR said it would seek international support
to protect monuments of Hungarian culture.  Michael Shafir,
RFE/RL, Inc.

Zhelev has pardoned on humanitarian grounds Georgi Atanasov, a
former communist Prime Minister who received a 10-year jail
sentence last year. 24 Chasa reported on 2 August that Zhelev
took the decision immediately after having seen medical
certificates confirming that Atanasov is severely ill, and that
his condition would worsen if he remained in prison. Together
with a former Minister of Economy and Planning, Stoyan Ovcharov,
the 61-year-old ex-premier was convicted in September 1993 for
having taken 210,000 leva (then worth $100,000) from a fund
devoted to the construction of orphanages and distributed them
among families of communist activists. In an interview with
Standart, Zhelev commented that it would "not be good for
democracy" if a former premier dies in prison. Kjell Engelbrekt,
RFE/RL, Inc.

Moscow weekly Utro Rossii no. 29 of 21-27 July 1994 (the same
issue which published Solzhenitsyn's essay on "The Russian
Issue"), Vladimir Solonar, leader of Moldova's Socialist Unity
Bloc, the second-largest parliamentary grouping, representing
primarily the local Russian electorate, outlined the Bloc's
goals. He urged the "unification [of the newly independent
states] at least in the form of a confederation," Moldova's
accession to a "military-political union with the other republics
of the CIS" and to a CIS "customs and currency union," and "free
movement of labor" within it. Solonar defined the Bloc as
"pro-Union" for seeking reunification of ex-Soviet republics in a
confederation, and "pro-Russian" because "Russia would form the
[confederation's] Center." "Russia is more to me than just the
former RSFSR . . . One way or another, our entire state was
Russian." Moreover, "the key to economic recovery can only be
reintegration with the East." Solonar, a relative moderate and
the chairman of the Moldovan Parliament's Commission on Human and
Ethnic Rights, did not discuss those issues in his interview.
Vladimir Socor, RFE/RL, Inc.

LUKASHENKA MEETS YELTSIN. Belarusian President Alyaksandr
Lukashenka is scheduled to meet with Russian President Boris
Yeltsin on 3 August, Belarusian television and ITAR-TASS reported
on 2 August. The main issue on the agenda of talks between the
two will be working out the details of the agreement on their
monetary union. The head of the National Bank of Belarus,
Stanislau Bahdankevich, remains opposed to the article which
stipulates that Belarus cede its right to issue money to the
Central Bank of Russia and also relinquish control of credit and
currency policies to Russia. Another subject to be discussed is
the continued maintenance of 30,000 Russian troops guarding
strategic missiles in Belarus. Russia has reportedly asked that
their withdrawal be delayed because there is no housing for them
in Russia and also because Russia would like to retain some
strategic installations in Belarus. Lukashenka has said he will
not force the troops to leave. The issue of forming some type of
union between some CIS states is also on the agenda. Lukashenka
told a press conference that although he was against the
dissolution of the Soviet Union, today its re-establishment is
unrealistic and any new arrangement would have to correspond to
the current situation.  Ustina Markus, RFE/RL, Inc.

Belarusian Cabinet of Ministers has decided to present an
agreement protecting US investments in Belarus to the parliament
for ratification at its next session, Belarusian radio reported
on 1 August. The next session is to begin on 27 September.
Ustina Markus, RFE/RL, Inc.

GORE ENDS UKRAINIAN VISIT. Following his visit to Poland, US Vice
President Albert Gore stopped off in Kiev for a six hour visit on
2 August, Ukrainian television and various agencies reported.
During the visit Gore met with Ukrainian President Leonid Kuchma,
the Prime Minister Vitalii Masol and the parliamentary speaker,
Oleksandr Moroz. Gore urged Ukraine to press ahead with economic
reforms and praised the country for abiding by its disarmament
schedule. He did not appear to pressure officials over the issue
of ratifying the Non-Proliferation Treaty agreement but said that
Kuchma and other Ukrainian leaders all seemed determined to move
forward in signing the agreement. Gore also invited Kuchma to
meet with US President Bill Clinton in Washington on 29 November.
The US has promised $700 million in aid to Ukraine for this year,
making it the country's fourth largest aid recipient after
Israel, Egypt and Russia.  Ustina Markus, RFE/RL, Inc.

JOHN MAJOR IN LITHUANIA. On 2 August British Prime Minister John
Major, accompanied by Deputy Foreign Secretary Douglas Hogg, flew
from Warsaw to Vilnius for a five-hour visit, Western agencies
report. He had separate meetings with President Algirdas
Brazauskas, and Baltic prime ministers Adolfas Slezevicius,
Valdis Birkavs, and Mart Laar. At a joint press conference of the
four prime ministers, Major welcomed Russia's recent signing of
an agreement to withdraw its troops from Estonia and said that
Lithuania should allow military transit to and from Kaliningrad.
Although stating that he regards the Baltic States as members of
the European family, he took the precaution not to mention any
date for their admission into the European Union and even noted
that quick admission could hurt their economies. He dampened
Baltic hopes about being admitted into NATO in the near future,
mentioning the need for the gradual development in the balance of
military force in Eastern Europe. Hogg traveled to Riga that day
and will visit Tallinn on 4 and 5 August for further talks with
high officials. Saulius Girnius, RFE/RL, Inc.

Liia Hanni, substituting for the prime minister, told a news
conference that the government had passed that day a decree
regulating legal acts on investment funds, BNS reports. The
investment funds can be formed as joint-stock companies or based
on contractual relations. The decree regulates the order and
different ways of issuing shares and obligates the Estonian
Securities Office to license the funds. The government also
granted a five-year loan to the joint-stock company Free Land,
the only company in Estonia printing securities, to renew its
equipment.  Saulius Girnius, RFE/RL, Inc.

ALBANIAN GREEKS TO STAND TRIAL. On 2 August an Albanian court
announced that five members of the Greek minority will stand
trial on 15 August, charged with treason and illegal possession
of arms. Reporting from the Albanian capital, Reuters quoted a
Tirana district court that the ethnic Greeks were accused of
"aiming to annex territory of the Republic of Albania [to Greece]
and of serving foreign espionage agencies." The five were
arrested in April following an attack on a training camp
belonging to the Albanian army, in which two conscripts were
killed, though the two incidents do not appear to be linked.
Since the accused are members of the ethnic Greek Omonia
organization, Athens has consistently argued that the charges are
an example of Tirana's anti-Greek minority and foreign policies.
Three of the defendants face charges of illegal possession of
weapons, which could result in a 15-year jail sentence. If found
guilty of treason, the punishment would be from 10 years to a
death sentence.  Kjell Engelbrekt, RFE/RL, Inc.

  [As of 1200 CET]

  Compiled by Saulius Girnius and Dan Ionescu


The RFE/RL Research Institute will close at the end of 1994. A
new research institute, to be based in Prague in the Czech
Republic, will begin operations in October 1994.

This new research organization, the Open Media Research Institute
(OMRI), is the result of a unique initiative involving the United
States Board for International Broadcasting (Radio Free
Europe/Radio Liberty's government oversight and funding agency)
and the Open Society Institute (a Soros Foundation). It will
publish a weekly analytic journal and a daily digest of events in
the former Soviet Union, Eastern Europe, and selected other
countries; provide current analyses and information to RFE/RL
broadcasters and others; and undertake, as custodian, the
preservation and automation of the RFE/RL archives to make them
more accessible to the scholarly community. It will engage in
training and other activities in support of democracy and
independent media throughout Eastern Europe and the territory of
the former Soviet Union.

The closure of the RFE/RL Research Institute is part of the
reordering of American national priorities after the end of the
Cold War. It is a result of the United States International
Broadcasting Act of 1994, which mandated a consolidation of all
US-funded international broadcasting activities, a drastic
reduction in the RFE/RL budget, and the privatization of some
RFE/RL operations, including those of the Research Institute.

In response to the new law, the Board for International
Broadcasting and the Board of Directors of RFE/RL Inc. directed
the closure of the Research Institute by 31 December 1994. The
institute's weekly RFE/RL Research Report and the RFE/RL Research
Bulletin will cease to be published at the end of August 1994.
RFE/RL intends to continue publication of the RFE/RL Daily Report
until such time as OMRI can begin its daily digest.

The RFE/RL Research Institute was established in late 1990,
incorporating and building on the operations of several RFE and
RL research units. The institute's publications have included the
RFE/RL Research Report, the RFE/RL Research Bulletin, the RFE/RL
Daily Report, and the RFE/RL Research Studies series. In
addition, the institute has issued monitoring bulletins of
Eastern broadcasts and the press. It has conducted opinion and
audience research in the region, and its extensive press and
samizdat archives have been available to scholars.

The RFE/RL Research Institute's purpose has been to strengthen
the broadcasting of Radio Free Europe/Radio Liberty and
contribute to an informed understanding by governments, scholars,
journalists, and others of the complicated postcommunist
transition in Central and Eastern Europe and the former Soviet
Union. We are grateful to our many readers and other friends of
the RFE/RL Research Institute and its precursors for their
interest, encouragement, and support over many years.

Kevin Klose, President, RFE/RL Inc. A. Ross Johnson, Director,
RFE/RL Research Institute, 1 August 1994
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
Division, is available through electronic mail by subscribing to
available by postal mail, as are the other publications of the
Institute, and by fax.  RFE/RL NEWS BRIEFS, an edited compendium
of items first published in the Daily Report, is distributed
along with the RFE/RL RESEARCH REPORT, a weekly journal
providing topical analyses of political, economic and security
developments throughout the Institute's area of interest.
Longer analyses are available in a monograph series, RFE/RL
STUDIES, and brief analytic summaries appear monthly in the

Requests for permission to reprint or retransmit this material
should be addressed to PD@RFERL.ORG and will generally be
granted on the condition that the material is clearly attributed
to the RFE/RL DAILY REPORT. Inquiries about specific news items
or subscriptions to RFE/RL publications should be directed as
follows (please include your full postal address when inquiring
about subscriptions):

In North America:

Mr. Brian Reed
RFE/RL, Inc.
1201 Connecticut Avenue, NW
Washington, DC 20036
Telephone: (202) 457-6912 or -6907
Fax: (202) 457-6992 or 828-8783


Ms. Helga Hofer
Publications Department
RFE/RL Research Institute
Oettingenstrasse 67
80538 Munich
Telephone: (+49 89) 2102-2631 or -2632
Fax: (+49 89) 2102-2648
Internet: PD@RFERL.ORG

Copyright 1994, RFE/RL, Inc. All rights reserved.

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