...ask not what your country can do for you; ask what you can do for your country. - John F. Kennedy
RFE/RL Daily Report

No. 148, 5 August 1994

                              RUSSIA

SITUATION IN CHECHNYA. Defying Moscow's pressure to step down,
Chechen President Dzhokhar Dudaev told Reuters and AFP on 4 August
that he was planning to fly to Moscow to meet members of the
opposition to President Yeltsin. Chechen Foreign Minister
Shamsedin Yous said that Dudaev intended to meet a leader of the
Russian National Assembly, former KGB general Aleksandr Sterligov.
(The Assembly is an ultra-nationalist group.) Earlier this year,
Sterligov visited Chechnya, where he and Dudaev's followers set up
a Russian-Chechen association with the aim of recreating the USSR.
The Chechen Information Ministry told ITAR-TASS that Dudaev's
plane has been waiting for two days at a local airport ready to
take off. Dudaev has so far been refused permission to enter
Russian air space. Meanwhile, Russian Deputy Prime Minister Sergei
Shakhrai said that Dudaev should step down to avoid dragging his
republic into war, AFP reported on 4 August. Moscow is now
supporting the recently created Chechen Provisional Council, which
demands Dudaev's ouster.  Vera Tolz, RFE/RL, Inc.

MMM PRESIDENT DETAINED. On 4 August Russian TV reported that
Sergei Mavrodi, the president of the ill-fated MMM investment
firm, was detained under Article 162 part 2 of the Russian
Criminal Code for evading paying taxes, according to Evgenii
Lisov, the Moscow deputy prosecutor in charge of the case. This
article provides the punishment of up to 5 years of imprisonment.
Fiscal policemen and OMON riot police were forced to enter
Mavrodi's apartment on ropes via a window because he refused to
open the door to the tax inspectors. Also on 4 August, Mark
Goryachev, formerly a prominent St. Petersburg businessmen, now a
deputy of the State Duma, told Ostankino TV that the MMM scandal
was caused by a conspiracy by the Russian Ministry of Finances
against the independent entrepreneur. All that day
Russian-language broadcasting media aired MMM shareholders'
rallies, shouting "Hands off Mavrodi." Julia Wishnevsky, RFE/RL,
Inc.

SWEDEN PROTESTS RUSSIA'S SPYING TACTICS. Swedish Foreign Ministry
officials stated on 4 August that Stockholm had denied a Russian
military attach~ diplomatic status in protest over Moscow's
intelligence activities directed against the country. Dagens
nyheter of 5 August says the protest was made public at a news
conference devoted to the circumstances surrounding the voluntary
return of Stig Bergling, a Swedish double-agent who was arrested
in 1979, but managed to escape from prison in 1987; Bergling, who
received a life sentence for having handed over much of the
country's defense plans to the USSR, had arrived on the previous
day. Also addressing the journalists, Swedish Prime Minister Carl
Bildt cited Bergling as confirming that Soviet intelligence
agencies had helped organize his escape, made him an agent of the
Soviet military intelligence (GRU) in Budapest in 1988, and later
dispatched him to Lebanon. Complaining about Moscow's continued
denial of all facts in the case, Bildt said the incident "shows
that the structures and thinking of the previous era still survive
in Russia." Officials added that the government's protest note had
urged that "Russian activity in Sweden be more civilized," Reuters
reported.  Kjell Engelbrekt, RFE/RL, Inc.

RUSSIAN LEADERS ON SITUATION IN RUMP YUGOSLAVIA, BOSNIA. On 4
August Reuters reported that UN Security Council President Yulii
Vorontsov fully supported Belgrade's announcement on 4 August
amounting to the promise that rump Yugoslavia will cut all
political and economic ties to the Bosnian Serbs for their
continued rejection of the international community's latest peace
plan for Bosnia and Herzegovina. Vorontsov dubbed Belgrade's
decision "very, very important" and suggested that it could amount
to a potential "turning point" for the peace process there.
Meanwhile, ITAR-TASS reported the same day that Russian Deputy
Foreign Minister Vitalii Churkin mildly rebuked the Bosnian Serb
leadership for its decision to hold a referendum on the question
of whether or not to accept the terms and conditions of the latest
peace plan. Churkin stressed that it was unrealistic to believe
that a meaningful referendum result could be obtained while a war
was in progress, and urged the self-styled Bosnian Serb
authorities to simply opt for peace. Foreign Ministry spokesman
Grigorii Karasin, speaking to Interfax, echoed Churkin's words and
sentiments.  Stan Markotich, RFE/RL, Inc.

FSK DENIES THEFT OF WEAPON-GRADE PLUTONIUM. The Federal
Counterintelligence Service (FSK) denied categorically that the
weapon-grade plutonium confiscated last month in Germany by local
security authorities had a "Russian origin", reported ITAR-TASS on
3 August. According to FSK spokesman Vladimir Tomarovsky, his
service had not recorded even a "single case" of any leak of
nuclear materials suitable for manufacturing weapons. Tomarovsky
also said that the statements made by the Western politicians and
scientists on the case are "absolutely groundless and cannot be
proved". He, however, admitted, that a potential problem exists in
principle.  Victor Yasmann, RFE/RL, Inc.

RESTRICTIONS ON VIOLENCE AND SEX VIDEO PRODUCTION, SUPPORT FOR
DOMESTIC FILMS. The Russian General Procuracy and the Ministry of
Culture have drafted an amendment to the Law On Mass Media which
restricts "propaganda of violence and superfluous erotic" in
visual and printing mass media, ITAR-TASS reported on 4 August.
The amendment includes provisions for creating a national
committee for evaluating foreign video and printing production.
The Russian government also issued a decree on state support for
domestic cinema and video production that guarantees state funding
for at least 50 full format films made by the domestic
cinematography industry.  Victor Yasmann, RFE/RL, Inc.

CHOLERA IN RUSSIA. On 4 August Russian Deputy Minister of Health
Konstantin Agapov released figures on the cholera epidemic in
Daghestan--208 people sick, 130 more infected, and ten dead. More
than 500 were hospitalized with the aim to prevent the spread of
the epidemic. On the eve of Agapov's news conference, Russian TV
news released cholera figures for Moscow--nine people sick and
three dead. According to Agapov, not all of the Muscovites were
infected with cholera from Daghestan for some of them had been
infected while in Rwanda.  Julia Wishnevsky, RFE/RL, Inc.

                  TRANSCAUCASIA AND CENTRAL ASIA

CHOLERA SPREADING FROM DAGHESTAN TO AZERBAIJAN. The cholera
outbreak in Daghestan has spread to Azerbaijan, according to
ITAR-TASS of 4 August. Three people in the Baku industrial
satellite of Sumgait, including a woman who recently returned from
visiting Daghestan, had been diagnosed as suffering from cholera.
The Azerbaijani authorities have imposed a number of emergency
measures including a ban on bathing in the Caspian and on the sale
of soft drinks.  Liz Fuller, RFE/RL, Inc.

AZERBAIJAN OIL INDUSTRY WORKERS ON STRIKE. On 28 July, workers at
the Gyuneshli oil field--the larger of the two Caspian offshore
deposits that are to be exploited jointly by the Azerbaijan State
Oil Company, Russia's Lukoil, and a consortium of Western oil
companies--called a strike to demand that their wages be increased
by 100% to 200,000 rubles per month (100,000 Azerbaijan manats),
ITAR-TASS reported on 4 August. Azerbaijan's Prime Minister Suret
Huseinov met with the strikers on 4 August to discuss their
demands, which also include indexing their wages in the case of
non-payment, the reinstatement of free meals, and the allocation
of a share in the consortium's hard currency earnings for workers'
social needs. If these demands are not met, the workers threaten
to close Gyuneshli's 138 wells as of 7 August--a move that would
accelerate the decline in oil production. (See RFE/RL Daily
Report, no. 147 of 4 August).  Liz Fuller, RFE/RL, Inc.

                               CIS

RUSSIA'S 14TH ARMY BEING RESTRUCTURED. Moldovan government
officials told the RFE/RL Research Institute that Col.-General
Eduard Vorobev, First Deputy Chief of Staff of Russia's Land
Forces, told 14th Army officers in meetings on 3 and 4 August in
Tiraspol that the Army is about to be restructured. The Military
Council and certain other command structures would be dissolved,
some personnel would be demobilized, and the reduced force would
become an "operational group" of the 59th motor-rifle division.
Ordered by Russian Defense Minister Pavel Grachev, the
restructuring is to be completed by 1 September. The division's
commander, Maj.-General Yurii Popov, has been appointed interim
commander of the entire force in place of Lt.-General Aleksandr
Lebed. Vladimir Socor, RFE/RL, Inc.

LEBED ON WAY OUT. Replying separately to questions from an RFE/RL
correspondent and from AP, spokesmen for the command of Russia's
Land Forces and Defense Ministry on 4 August denied reports or
plans to "dismiss" Lebed. From Tiraspol, Vorobev told Interfax
that the idea of "dismissing" Lebed was "sheer stupidity"; but
"neither has he been offered a new job." Officers of the 14th
Army's headquarters, including anti-crime crusader and Tiraspol
city commandant Mikhail Bergman, told Basapress on 3 and 4 August
that the forced departure of Lebed meant that Moscow was siding
with the "Dniester republic" leadership, whom Lebed had denounced
as corrupt and extremist. Igor Smirnov and other "Dniester"
leaders had recently visited Russia's Defense Ministry and
security bodies, reportedly to demand Lebed's removal. On 4 August
Lebed himself, on leave in Moscow, told ITAR-TASS that should he
be transferred from his command, he would leave the armed forces
altogether. All indications seem to be that the Defense Ministry,
while trying to avoid the political risks of being seen as
dismissing Lebed, is setting the stage for Lebed to leave
voluntarily.  Vladimir Socor, RFE/RL, Inc.

LEBED CONSIDERS PRESIDENTIAL RUN. Basapress reported on 26 July
from Tiraspol that Lebed had phoned his Army's headquarters that
day from Moscow to say that he was prepared to run in the next
elections for President of the Russian Federation. The story is
corroborated by Moskovskii Komsomolets whose issue of 4 August
reports that Lebed has been discussing this possibility both with
the Ministry of Defense and with opposition circles. Lebed's
sights were also set on the post of Defense Minister, after
military polls had shown Lebed a distant favorite of the officer
corps for that post. Noting the recent visits to Moscow by
"Dniester" president and KGB chief, Igor Smirnov and Vadim
Shevtsov, to obtain the removal of Lebed, Moskovskii Komsomolets
concluded that "Russia evidently needs the marionette Dniester
leaders . . . Moscow has openly sided with the Dniester leadership
against Lebed." Vladimir Socor, RFE/RL, Inc.

28,000 RUSSIAN TROOPS TO MAN BAIKONUR. A minimum of 28,000 Russian
troops are needed to maintain the Baikonur space station in
Kazakhstan according to the director of the Russian space agency,
Yurii Koptev, as quoted by Interfax on 4 August. Under the
existing plans for reducing the Russian armed forces, the Russian
Defence Ministry will pay for the stationing of 12,000 servicemen
in Baikonur; the Russian space agency will finance an additional
16,000 troops. Four years ago there were 70,000 troops including
military construction workers based at Baikonur; Koptev argued
that a further reduction in troop levels would lead to
"irreversible collapse." Liz Fuller, RFE/RL, Inc.

                    CENTRAL AND EASTERN EUROPE

"SERBIAN LEADER CUTS SUPPORT FOR PROXY WARRIORS IN BOSNIA." This
is how the 5 August Los Angeles Times reports a hard-hitting
statement the previous day from President Slobodan Milosevic and
Belgrade's announcement that rump Yugoslavia is closing its border
to the Bosnian Serbs and breaking political and economic ties with
them. Milosevic stressed that his differences are not with the
Bosnian Serb people, whom he suggested are victims of "the mad
political ambitions and greed of their leadership." Instead, he
singled out those leaders, without mentioning any specific names,
as "war profiteers . . . and people whose conscience is not clear,
who are afraid of peace, in the event of which all their
wrongdoings would come to light . . . Countless times so far they
gave us reason to cut off all relations with them because they
didn't keep a single promise . . . " The Tanjug report also quoted
Milosevic as accusing the Pale leadership of turning down an
opportunity to acquire internationally guaranteed borders and in
the process of bringing down more sanctions on rump Yugoslavia. He
called this "cruel arrogance toward the interests of the vast
majority of the Serbian people. . . . " Milosevic has used harsh
words before on former allies in Serbia or Krajina once they have
outlived their political usefulness to him.  Patrick Moore,
RFE/RL, Inc.

INTERNATIONAL COMMUNITY NOW WAITS FOR DEEDS. Overnight press
reports suggest that the border has indeed been closed, and Borba
on 5 August reports that the hard-line Bosnian Serb Vice President
Biljana Plavsic was turned back at Zvornik. At the UN, Russian
Ambassador Yuli Vorotnsov called Milosevic's statement a "turning
point," and Belgrade's representative Dragomir Djokic called the
measures "proof" of his government's good intentions. But US and
German spokesmen were skeptical, and RFE/RL's South Slavic
Language Service on 4 August quoted White House Spokesperson Dee
Dee Myers as saying that more evidence is needed of Belgrade's
sincerity. Shipments of food and medicine will still be allowed,
and careful monitoring is expected in order to make sure that only
such humanitarian goods are indeed crossing the border, especially
when the initial media attention ends. The 5 August New York Times
quotes a Western diplomat in Belgrade as saying that "there is no
[concrete] evidence whatsoever to believe that Milosevic" has
become a peace-maker, adding: "let Milosevic give diplomatic
recognition to Bosnia-Herzegovina; let him agree to put
international monitors on the border crossings leading into [that
republic] from Serbia." Patrick Moore, RFE/RL, Inc.

PRESSURE GROWING TO LIFT ARMS EMBARGO AGAINST MUSLIMS? The 5
August Los Angeles Times quotes White House Chief of Staff Leon
Panetta as saying that "the United States might decide to defy a
UN embargo and arm the Bosnian government if the Bosnian Serbs
persist in refusing to accept the peace settlement." Reuters the
previous day reported that the foreign ministers of the
Organization of the Islamic Conference, meeting in Geneva, called
on the Security Council to confirm that the embargo does not apply
to the Sarajevo government. If no confirmation appears, the OIC
states "may come to the conclusion that they can provide the means
of self-defense to the Bosnian government under the UN charter."
Patrick Moore, RFE/RL, Inc.

TIME RUNNING OUT FOR FIKRET ABDIC. International media reported on
4 August that the besieged town of Pecigrad has fallen to Bosnian
government troops. Captured were 500 of the best soldiers fighting
for local kingpin Abdic, who has been opposing Sarajevo government
forces with Serb backing. The fate of 2,000 civilians in the town
remains unclear, as Abdic's men refused earlier UN offers to
evacuate them. The tycoon popularly known as "Babo," or "Daddy,"
is being increasingly forced back onto his stronghold of Velika
Kladusa, the home of his original Agrokomerc business empire that
collapsed a decade ago. Elsewhere, Globus on 29 July reported on
the sweatshop conditions in which many Bosnian refugees,
especially children, work in Istanbul. Patrick Moore, RFE/RL, Inc.

KINKEL CALLS FOR THE TERRITORIAL INTEGRITY OF CROATIA. On 3 August
the Frankfurter Allgemeine Zeitung ran an interview with the
German foreign minister on EU policy toward Croatia during the
German presidency. Kinkel outlined a comprehensive agenda that
includes reintegrating conquered Serb territories into Croatia
with respect for Serb minority rights but also with the right of
Croat refugees to return home. He stressed that "on the Serbian
side Belgrade still bears the greatest responsibility for
peacefully resolving the 'Krajina' question." Meanwhile in Zagreb,
Globus today reports that it has proof that the ruling party is
responsible once again for fostering the splintering of an
opposition party, this time of the Croatian Peasant Party.
Finally, Vecernji list reported on 4 August that Pope John Paul II
will indeed visit Zagreb on 11 September to mark the 900th
anniversary of the bishopric there. It will be the first papal
visit to the Croatian capital and the second in history--the last
was in 1177--to what is now Croatian territory by a reigning
pontiff. Pope John Paul had to cancel earlier plans to link the
trip with a visit to Belgrade, and his hopes to go to Sarajevo as
well are also in doubt. Patrick Moore, RFE/RL, Inc.

SERBIAN OPPOSITION CRITICIZES MILOSEVIC LETTER. On 4 August the
Serbian press reports on domestic opposition reactions to the
Serbian government's strategy of seemingly attempting to coerce
the Bosnian Serbs into accepting the latest international peace
plan for Bosnia and Herzegovina. In the main, opposition response
has tended to be critical of Belgrade, and centers on the
contention that Milosevic is passing "falsehoods" and deceptions
to the Bosnian Serbs in a bid to dupe them into adopting the
peace. Borba notes that one Democratic Party of Serbia official
has dubbed the governing Socialist Party of Serbia's actions a
boon for the international community, saying "the 'Contact Group'
has gained a very important and influential member. That member is
named Slobodan Milosevic." Predictably, ultra-nationalist leader
of the Serbian Radical Party Vojislav Seselj has emerged the most
critical of Belgrade, observing that Milosevic has done more than
engage in dubious ploys, having crossed the boundary of acceptable
politicking into the realm of treason. Seselj observes "Slobodan
Milosevic is the greatest betrayer of the Serbian people." Stan
Markotich, RFE/RL, Inc.

SERBIAN POLICE INVOLVED IN DRUG TRADE? In an interview with the
Albanian service of Deutsche Welle, Serbian police inspector
Dragan Mladenovic accused leading Serbian police officials of
involvement in the drug and arms trade, Rilindja reported on 3
August. According to Mladenovic, deputy minister Radomir Stojcic
organized a drug deal worth some $4 million. The drugs were
allegedly delivered via the Albanian port of Durres, and paid for
with counterfeit money. In Kosovo, some Albanians were arrested
for alleged involvement in the scheme. Mladenovic said he was
banished to Kosovo by his superiors "because of inconsistencies
with their methods," adding that "all those are sent to Kosovo who
don't agree with the illegal work that Stojcic leads. In Kosovo it
was planned to kill me," Mladenovic said, claiming that the
minister is well connected with the ethnic Albanian chief of the
police station in Kijevo or Klina. Murders have been committed by
civil policemen, as it was the case last year in Glogovac.
Mladenovic also accused Stojcic of being involved in prostitution
and traffic in human beings. So far there has been no independent
confirmation of the charges. Fabian Schmidt, RFE/RL, Inc.

LEADING POLISH MANAGER DISMISSED. The firing of the chairman of
Poland's third largest firm--the "Ciech" foreign trade giant--has
raised a storm of debate over the ruling coalition's seeming
determination to politicize leading economic posts. On 2 August,
Foreign Trade Minister Leslaw Podkanski used the state's 51% share
in Ciech to force out Marian Malecki, the firm's legendary
chairman. The other shareholders, 64 chemical firms and
refineries, objected to Malecki's removal, arguing that he had
been the key to the firm's success. Ciech recorded a net profit of
431 billion zloty ($20 million) in 1993, and results for the first
half of 1994 were even better. Podkanski argued, however, that the
move was vital to protect the firm's economic health. Polish TV
showed a crowd of cheering employees and shareholders as Malecki
left the 2 August meeting. Rumors that Malecki's ouster was
imminent had circulated for weeks, along with speculation that the
maneuvering reflected the determination of the Polish Peasant
Party (PSL) to put its people in control of key posts. A first
attempt to remove Malecki on 14 July failed when shareholders
staged a walkout. Podkanski apparently plans to replace Malecki
with a PSL figure. Polityka reviews the background in its 6 August
issue.  Louisa Vinton, RFE/RL, Inc.

NEW CONFLICT IN POLISH COALITION. Among those voicing public
criticism of Podkanski's move was Deputy Prime Minister and
Finance Minister Grzegorz Kolodko. Kolodko represents the
Democratic Left Alliance (SLD) in the cabinet, Podkanski and
Pawlak, the PSL. On 3 August, Kolodko told a radio interview that
he objects to the manner in which the dismissal was enacted, and
does not rule out the possibility that Malecki deserved firing. He
argued, however, that industrial "professionals" need stability in
order to do their work. "It's not enough to have 51%; you also
have to have a good reason," Kolodko was quoted as saying. The
finance minister indicated that he had requested clarification
from both Podkanski and Prime Minister Waldemar Pawlak.
Rzeczpospolita on 4 August interpreted Kolodko's objection as a
defense of his own prerogatives in setting economic policy, rather
than a protest against the politicization of economic posts.
Louisa Vinton, RFE/RL, Inc.

PAWLAK QUESTIONS MASS PRIVATIZATION. Although Kolodko has
repeatedly asserted his primacy in economic decision-making, and
has seemed to enjoy the prime minister's assent, the PSL's
repeated successes in thwarting the government's line have raised
doubts. Kolodko at times seems more of an alibi for the coalition
than its helmsman. Pawlak's foot-dragging on the mass
privatization program is only the latest example. The last group
of 105 firms slated for inclusion has been awaiting the prime
minister's go-ahead since May. The first two groups were approved
by Prime Minister Hanna Suchocka in 1993. In July, Pawlak
unexpectedly demanded additional data on the financial condition
of the 105 firms, hinting that the program was not really ready to
start. At a meeting with PSL representatives in Olsztyn on 29
July, Pawlak also complained that Polish capital has a majority
stake in only one of the 15 investment funds chosen to manage the
firms. Because mass privatization is mandated by a 1993 law,
Pawlak's calls for new "thorough analysis" before proceeding are
puzzling. The prime minister also disavowed plans by the
SLD-controlled privatization ministry to sell parts of the tobacco
industry. Pawlak said that Privatization Minister Wieslaw
Kaczmarek "talks too much about privatization," PAP reported on 29
July.  Louisa Vinton, RFE/RL, Inc.

SECOND WAVE OF SLOVAK COUPON PRIVATIZATION TO BEGIN. On 4 August
Gabriel Palacka, state secretary of the Privatization Ministry,
announced that all conditions needed to begin the second wave of
coupon privatization have been met, and registration will begin on
5 September, TASR reported. A total of 96 projects with a value of
12 billion koruny will be offered. Palacka noted that some
ministries were reluctant to offer more property and that a total
value of 100 billion koruny could have been offered. One voucher
booklet will cost 1,000 koruny, or 700 koruny for citizens over
60. Also on 4 August it was announced that the signatures of 33
parliamentary deputies have been collected, and an extraordinary
session of parliament will be held on 10 August to deal with a
bill requiring Slovaks who are participating in the privatization
process to disclose the source of their funds.  Sharon Fisher,
RFE/RL, Inc.

SLOVAK COURTS OVERLOADED. According to Slovak Justice Minister
Milan Hanzel, approximately 486,000 cases were waiting to be heard
in Slovak courts at the end of 1993, and an additional 363,739 new
cases were filed in the first half of 1994, TASR reported on 3
August. A total of 346,441 cases were handled in the first six
months of this year by less than 1,000 judges, meaning that each
judge handled an average of nearly 350 cases. Hanzel said it seems
that "all of Slovakia is suing," and noted that the courts are
loaded with politically motivated suits which "lack convincing
evidence." Sharon Fisher, RFE/RL, Inc.

HUNGARIAN GOVERNMENT PASSES ECONOMIC MEASURES PACKAGE. The
Hungarian government on 4 August approved a comprehensive economic
measures package which , however, does not follow part of the
latest recommendations of the International Monetary Fund, MTI and
Radio Budapest announced. In an attempt to remedy the current
grave economic situation, broad corrective measures affecting the
budget, the reform of state enterprises, price, monetary and
income policy, and the tax collection system will be introduced
aimed at holding back domestic consumption and raising savings and
investments. The Balance of Payments deficit is not to exceed 4%
of the GDP or $1.5 billion and state sector savings must be
increased by $250$300 million. The current state budget deficit
must be reduced to 3% of the GDP and must not exceed the planned
330 billion forint and 450500 million in 1995. Pensions are to
raised by 8% on 1 September and the increase cannot be less than
800 forint ($8) and more than 2,400 forint of the total monthly
pension. Alfred Reisch, RFE/RL, Inc.

HUNGARIAN CURRENCY DEVALUED. In agreement with the Hungarian
National Bank the government on 4 August devalued the forint by 8%
vis-~-vis convertible currencies, effective 5 August, MTI
reported. The move was needed because of the deterioration of
Hungary's current Balance of Payments to slow down the country's
indebtedness and make its exports more competitive. The
devaluation, the largest in more than three years and the fifth
this year, means that the forint has lost 13.8% of its value since
1 January 1994. Alfred Reisch, RFE/RL, Inc.

ROMANIAN MINERS' STRIKE INTO NINTH DAY. A Romanian court of
justice refused on 4 August to declare the strike of the coal
miners illegal and union leaders vowed to continue all action
until all the miners' demands are met, an RFE/RL correspondent,
Radio Bucharest and Western media reported. In talks with Minister
of Industries Dumitru Popescu in Targu Jiu the miners' demand that
the director general of the company be dismissed was accepted.
However, the two sides could not agree on the wage demands.
Popescu told Radio Bucharest that the government is offering a 20%
increase in salaries, while the miners demand 100%. Agreement on
the bonus paid on Miners' Day could not be reached either. A
delegation of the coal miners traveled on 4 August to Deva, to
continue negotiations there with Popescu. The minister went to
Deva to negotiate with the striking copper miners.  Michael
Shafir, RFE/RL, Inc.

ROMANIAN POLICE SEIZE ENRICHED URANIUM. Romanian police said on 4
August that they have seized three kilograms of enriched uranium
which was illegally imported into the country from Ukraine,
Rompres said on the same day. A parcel containing what was
described as 583 tablets of enriched uranium was brought into
Romania by a private firm at the Sighetul Maramatiei border
crossing. Rompres said police kept track of the uranium and seized
it near Timisoara. Five people involved in the shipment were
arrested.  Michael Shafir, RFE/RL, Inc.

BULGARIAN POLICE CRACK DOWN ON ORGANIZED CRIME. Bulgarian dailies
report on 5 July of a massive police action carried out on the
previous day against organized, and especially, gang crime in
several towns. The police made simultaneous sweeps of certain
districts in the towns of Pazardzhik, Velingrad and Peshtera, and
say they arrested members of four gangs suspected of murder and
armed robbery. Others were apprehended for illegal possession of
arms, drug-dealing, and theft. 24 Chasa reports that hundreds of
police officers and members of the Central Service for the
Struggle against Organized Crime made a thorough sweep of
Pazardzhik's Gypsy district. Over the past year the police and
judiciary have increasingly been criticized for not doing enough
to stem the growth of crime.  Kjell Engelbrekt, RFE/RL, Inc.

SECOND OF "TIRASPOL SIX" RELEASED. Valeriu Garbuz became on 25
July the second of the "Tiraspol Six" to be released from
detention, Basapress reported on 4 August. Garbuz, the only one
who had pleaded guilty and served as prosecution witness at the
1993 show trial of the six, has been pardoned four years before
the expiry of his term by the "Dniester Republic Supreme Soviet"
in response to his application. The remaining four in detention
have long been informally offered pardons if they apply to the
same authority, but they have refused to recognize an unlawful
body. The case has prompted widespread international intercession.
Vladimir Socor, RFE/RL, Inc.

YELTSIN DENOUNCES LATVIAN CITIZENSHIP LAW. On 4 August Russian
President Boris Yeltsin issued a statement denouncing the Latvian
citizenship law, passed on 22 July, Western agencies report.
Yeltsin stated that ignoring most of the recommendations made by
the CSCE, Council of Europe, and European Union (EU), Latvia
decided "to divide residents of the country into first and second
classes, legitimizing ethnic discrimination" and was drifting into
"militant nationalism." Yeltsin said that the Russian government
would take "practical steps," including a review of its trade and
economic ties with Latvia. The Latvian Foreign Ministry replied
that it was baffled by Yeltsin's criticism, because Latvia had
consulted with the CSCE and the EU before adopting the citizenship
law, which in the end eliminated a quota system for citizenship
through naturalization. The Ministry said that Yeltsin's
accusations were not true and that he had an "inadequate
understanding" of international standards of ethnic minority
rights. The EU on 29 July 1994 had, in fact, praised Latvia on its
passage of the citizenship bill.  Saulius Girnius, RFE/RL, Inc.

STRUCTURE OF NEW BELARUSIAN CABINET. The head of the Belarusian
presidential administration, Leanid Sinitsyn, has announced the
structure of the new cabinet of ministers, Belarusian radio
reported on 4 August. The cabinet will be composed of 25 ministers
and the head of the KGB. Almost all of the management within these
governing bodies will be cut. The ministers will be directly
accountable for their work to the prime minister and the
management of the ministries will only be composed of economic and
legal experts who will be responsible for insuring that the
president's orders are implemented.  Ustina Markus, RFE/RL, Inc.

CRIMEAN NEWS. The Crimean minister of economics, Andrii
Chernyavsky, told Krymskaya pravda that the peninsula is becoming
more dependent on Ukraine in its trade, Ukrainian television
reported on 3 August. He said that 80% of Crimea's manufactures
are sold to Ukraine, while trade with Russia has been decreasing.
In other news, UNIAN reported that Crimea's union of independent
journalists published a complaint that the peninsula's government
obstructs the free press, thus threatening Crimea with
"totalitarianism." The complaint was prompted by the Crimean
parliament's decision to shut down the radio and television
company "Krym" and create a council to deal with matters
concerning radio and television broadcasts, which the head of the
union, Lilya Vudzhurova, says effectively establishes censorship.
On 4 August Reuters reported that the Crimean parliament voted 62
to 3 in favor of formally requesting that the Ukrainian government
change the country's constitution to allow dual citizenship for
the peninsula. Ukraine's new president, Leonid Kuchma, has
reportedly said he is opposed to dual citizenship for Crimea.
Ustina Markus, RFE/RL, Inc.

INDEPENDENT ALBANIAN PAPER CLOSED. The main independent Albanian
newspaper, Koha Jone (Our Time), closed on 27 July, Dita reported
the next day. Koha Jone was the first post-communist impartial
paper in Albania. It started as a semiweekly, and later expanded
to become the country's first daily with 16 pages. The reasons for
the closing are not yet completely clear, but Dita suggests there
were financial problems. Koha Jone recently had difficulties
meeting payments to its printers, and a Dita correspondent found
the door of the paper's office sealed. Dita said that another
reason for the debts were high taxes, adding that pro-government
papers get support from state institutions or foundations, as does
Lajmi i Dites. This paper of the Albanian broadcasting agency got
about $25,000 support from the International Media Center. Dita
called this an "economic war by the state," adding that the
independent media in Albania are endangered by such practices.
Meanwhile, six Albanian newspapers went on strike to protest
higher postage costs and certain taxes. According to Rilindja of 3
August, several newspapers are threatened with bankruptcy as a
result of the higher fees.  Fabian Schmidt, RFE/RL, Inc.

ALBANIAN AIRLINES HALTS FLIGHTS. According to agency reports,
Albanian Airlines, Albania's only airline, halted services. A
first hint at the impending break-up of the Albanian Airlines, the
country's sole joint-venture company, had appeared in Gazeta
Shqiptare on 24 July. According to that report, the foreign
partner (Tyrolian Airlines) intended to suspend the airlines'
regular flights as of 31 July. The shutting down of the company
amount to a serious economic blow to Albania. Albanian Airlines
had been set up August 1992 and reportedly did a good business in
travel. The joint venture used non-Albanian pilots and flew small
turbojet machines. The Austrian partner gave as a reason for its
withdrawal tax disagreements with the Albanian government and the
company's deficit. Albanian Airlines (70 employees) maintained
flight connections with Vienna, Munich, Zurich, and early this
year added to its flight schedule Istanbul, Skopje and Bologna.
The same daily reported that the Albanian government which is the
owner of 50% of the company, is now seeking a domestic company to
form a joint venture with some other foreign partner such as
Lufthansa, Alitalia, or Austrian Airlines.  Louis Zanga, RFE/RL,
Inc.

[As of 1200 CET]
Compiled by Saulius Girnius and Dan Ionescu


 RFE/RL RESEARCH INSTITUTE TO CLOSE; NEW INSTITUTE FOUNDED

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  Libertys  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 institutes  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  institutes  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  Institutes   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.

KevinKlose,  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
RFERL-L at LISTSERV@UBVM.CC.BUFFALO.EDU.  This report is also
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
RESEARCH BULLETIN.

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
Internet: RI-DC@RFERL.ORG

Elsewhere:

Ms. Helga Hofer
Publications Department
RFE/RL Research Institute
Oettingenstrasse 67
80538 Munich
Germany
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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