Change is always powerful. Let your hook be always cast. In the pool where you least expect it, will be a fish. - Ovid
RFE/RL Daily Report

No. 152, 11 August 1994

                              RUSSIA

COUP TRIAL VERDICT EXPECTED ON 11 AUGUST. The acquittal of General
Valentin Varennikov, expected to be announced on 11 August by the
Military Collegium of the Russian Supreme Court, may strike a
major blow against the Yeltsin administration, according to a
gloomy editorial in Rossiiskaya gazeta on 10 August. Varennikov is
the only accused in the case of the August 1991 coup plotters to
have refused the amnesty granted the putschists in February 1994.
Unlike his codefendants, Varennikov said that he wanted to stand
trial in order to prove his innocence, adding that former
President Mikhail Gorbachev and his ally Aleksandr Yakovlev,
currently the head of the Russian Federal Television and Radio
Service, should be tried for high treason because, in Varennikov's
view, their policies had brought about the collapse of the Soviet
Union. Julia Wishnevsky, RFE/RL, Inc.

MMM SHAREHOLDERS PLAN MASS RALLIES ON MAVRODI'S BIRTHDAY. On 10
August Ostankino TV aired footage of a protest demonstration of
MMM shareholders in front of the Russian government headquarters
on the Krasnaya Presnya Embankment in Moscow. Hundreds of enraged
people were shouting slogans, lionizing imprisoned MMM president
Sergei Mavrodi, and cursing the government. Many also burned State
Bank certificates. The meeting, the Ostankino TV anchor said, was
regarded by its organizers as a mere rehearsal of mass actions to
take place in Moscow, St. Petersburg, Khabarovsk and other Russian
cities on 11 August to commemorate Mavrodi's birthday.  Julia
Wishnevsky, RFE/RL, Inc.

LAW ON PROTECTION OF RUSSIANS ABROAD DRAFTED. President Boris
Yeltsin's staff has drafted a law defining state policy on
Russians living abroad, Ostankino TV reported on 10 August. The
law includes political, legal and economic measures to protect the
rights of the so-called "Russian-speakers living the former
republics of the USSR." It is unclear whether the present draft is
identical to a draft prepared earlier this year by a group of
independent experts and the analytical department of the Most
Corporation. The earlier draft contained several controversial
provisions and was incorporated in a document known as the
"Russian National Doctrine." Dmitri Rogozin, head of the Congress
of Russian Communities, has already criticized the Presidential
draft, saying that it lacks a precise definition of
"Russian-speaker living abroad"; however, his organization will
generally support the law, Rogozin said during the Ostankino
report.  Victor Yasmann, RFE/RL, Inc.

CHERNOMYRDIN DEMANDS DISCIPLINE. In a sign that bureaucratic
obstacles may be impeding President Yeltsin's efforts to give new
impetus to economic reform by issuing decrees, Prime Minister
Viktor Chernomyrdin on 9 August issued a sharp reprimand to the
Russian cabinet. According to an Interfax report, Chernomyrdin
told a closed session of the government presidium that all
ministries and agencies must fulfill government orders stemming
from presidential decrees in an "unconditional and exact" fashion.
Officials who fail to meet government timetables were threatened
with strict punishment. Although no dismissals were reported, the
ministers of privatization, finance, foreign trade, and housing
were called to account for breaches in "executive discipline" and
urged to reprimand recalcitrant subordinates.  Louisa Vinton,
RFE/RL, Inc.

SITUATION IN NUCLEAR POWER STATIONS NETWORK. The personnel of the
Kalinin nuclear power station have joined their colleagues in the
Russian nuclear station network who have declared a sit-in strike
over non-payment of their wages, ITAR-TASS reported on 10 August.
The personnel of several Russian nuclear stations have not
received their wages for months and last week announced the
strike. At a meeting with representatives of the strikers in
Smolensk, Minister for Nuclear Energy Viktor Mikhailov said that
he needs 750 billion rubles to pay back wages to his personnel.
Mikhailov added that Prime Minister Chernomyrdin has promised him
this sum on a short-term loan.  Victor Yasmann, RFE/RL, Inc.

CHECHEN ELDERS THREATEN HOLY WAR AGAINST RUSSIA. On 10 August, for
the first time since the days of legendary 19th century leader
Imam Shamil, a Congress of the Chechen People was held in Grozny,
capital of the rebellious North Caucasian republic, according to
Ostankino TV news and an RFE/RL correspondent in the region. About
2,000 people attended the congress of respected elders, Muslim
religious leaders and the heads of powerful local clans. According
to the TV report, all seventeen administrative areas of the
republic were represented at the congress, which voted to launch a
Gazavat (Holy War) if Russian troops invade Chechnya, and advised
Chechen President Dzhokhar Dudaev to declare martial law and total
mobilization of all Chechen males. Commanders of the Russian Army
and internal affairs forces denied having any plans for military
intervention in Chechnya. The congress dashed hopes of former
Russian parliamentary speaker Ruslan Khasbulatov to play a major
political role in his native land: the elders urged that
Khasbulatov be deported from Chechnya. Julia Wishnevsky, RFE/RL,
Inc.

BASHKORTOSTAN DAM BURST TOLL REACHES FIFTEEN. The death toll from
the dam burst in Bashkortostan has reached 15, Interfax reported
on 10 August. The Russian Ministry for Emergencies told the agency
that 55 people were still missing and eight had been hospitalized.
The dam burst has been blamed on "criminal negligence" by the
management of the company that owns the dam. Meanwhile, ITAR-TASS
reported on 10 August that there is serious flooding in the nearby
Chelyabinsk region.  Vera Tolz, RFE/RL, Inc.

RUSSIAN POPULATION LEAVING KURIL ISLANDS. ITAR-TASS reported on 11
August that emigration of Russians from the disputed South Kuril
Islands of Shikotan and Kunashir to the Russian mainland has
reached "massive" proportions. Local authorities report that some
800 residents have left the islands in the first half of 1994. The
reasons cited for leaving include worsening economic and social
conditions and shrinking employment opportunities. The report
quoted observers who said that if the out-migration is not halted
the only inhabitants remaining on the islands would soon be
military personnel. Stephen Foye, RFE/RL, Inc.

KUWAIT AND RUSSIA DISCUSS FURTHER ARMS DEALINGS. ITAR-TASS
reported on 10 August that a Kuwaiti military delegation is
currently in Moscow to discuss the purchase of additional Russian
military hardware and that plans are being drafted to send Kuwaiti
officers to Russia for training on the weapons systems that have
already been purchased from Russia. The same report quoted
Kuwait's Defense Minister as saying that the value of Kuwait's
contract with Russia for delivery of "Smerch" rocket launchers and
BMP-3 armored personnel carriers is "several hundred million
dollars." Reuters on 9 August said diplomats were speculating that
Kuwait's eagerness to cement military ties with Russia was related
to fears in the Gulf State that Russia wanted to move quickly
toward lifting UN economic sanctions against Iraq in order to
resume trade with its former ally.  Stephen Foye, RFE/RL, Inc.

NO SU-35'S FOR CHINA. The Deputy Chairman of the Russian State
Committee for Defense Industries, Gennadii Yanpolsky, on 10 August
denied a recent report that Russia was considering selling to
China its advanced Su-35 aircraft. He was responding to press
speculation that China has allocated $5 billion for the purchase
of Russian military equipment (see RFE/RL Daily Report of 8
August), including the Su-35; the ITAR-TASS report included no
remarks on the $5 billion figure. Yanpolsky said that sale of
Su-35's to China was out of the question both because the aircraft
was still in the development stage and because Russia was
unwilling to sell weapons systems that might undermine its own
security. Stephen Foye, RFE/RL, Inc.

                  TRANSCAUCASIA AND CENTRAL ASIA

VELAYATI IN CENTRAL ASIA. Iran's Foreign Minister Ali Akbar
Velayati visited Tashkent on 9 and 10 August on the first leg of a
trip through the Central Asian states and discussed with Uzbek
President Islam Karimov a variety of topics, including the
situation in Tajikistan, Western, Iranian and Russian news
agencies reported. Interfax reported that the two also discussed
Afghanistan and had pledged that their countries would not
interfere in internal Afghan affairs. Velayati and Karimov also
discussed the implementation of existing agreements between the
two countries on agriculture, oil and gas extraction, banking,
transport and construction agreements and called for closer
bilateral relations between Uzbekistan and Iran. Velayati then
flew to Turkmenistan for further talks. Bess Brown, RFE/RL, Inc.

                               CIS

NAZARBAEV PROMOTES EURASIAN UNION SCHEME IN KIEV. Kazakhstan's
President Nursultan Nazarbaev, arriving in Kiev on 10 August for a
two-day official visit, appealed for Ukrainian support of his
Eurasian Union scheme that is supposed to establish a common
economic and customs zone embracing as many of the
newly-independent states as can be persuaded to join it, Russian
news agencies reported. Nazarbaev complained to his Ukrainian
hosts that the CIS is ineffective, because it has no common policy
on anything. Nazarbaev, acutely aware of the effect on the
economies of the successor states of the rupture of Soviet-era
trade ties, has proposed a number of formulas to rectify the
situation--his Eurasian Union scheme is the latest, and seems to
have been at least partially encouraged by the modest successes of
the Economic Union forged early in 1994 by three Central Asian
states. Nazarbaev insists that the scheme is not to mean a
resurrection of the USSR.  Bess Brown, RFE/RL, Inc.

MOLDOVA ACCEPTS RUSSIAN TERMS ON TROOPS. The tenth round of talks
on the status and terms of withdrawal of Russia's 14th Army from
Moldova was held in Chisinau on 9 and 10 August. According to a
joint press release on the 10th, the sides initialled an agreement
providing that a future withdrawal of Russian troops "temporarily
stationed in Moldova" will be "synchronized" with the political
settlement of the Dniester conflict and the grant of a special
status to Transdniester. The withdrawal would have to be completed
within three years of the entry into force of the basic document.
The agreement enshrines the Russian position and marks a retreat
from Chisinau's long-standing resistance to "synchronization" and
a potentially open-ended troop presence as implied in the Russian
formula. Given the complete disagreement on the future status of
Transdniester, the latter and Russia can continue to frustrate a
settlement indefinitely through excessive demands and thus ensure
that the political conditions for the 14th Army's withdrawal are
not met. Moldova further obligates itself to finance housing
construction and social benefits for retired or repatriated
Russian servicemen and their dependents; but these concessions are
relatively minor compared to the retreat on the central issues.
The initialled document is to be signed by higher authorities.
Vladimir Socor, RFE/RL, Inc.

                    CENTRAL AND EASTERN EUROPE

BOSNIAN FIGHTING UPDATE. The New York Times reports on 11 August
that UN commander Gen. Sir Michael Rose has for the first time
explicitly threatened the Bosnian government forces with air
strikes. At issue is their alleged use of heavy weaponry in the
exclusion zone around Sarajevo as well as their taking tactical
advantage of the absence of big Serb guns in the area. One UN
official added: "we've got to be seen doing something." Bavarian
Radio said that a top Bosnian official angrily rejected Rose's
threat, saying that it was the Serbs who were responsible for the
war, not the Bosnian government. Meanwhile in northwest Bosnia,
the government's Fifth Corps continued to close in on Velika
Kladusa, headquarters of rebel tycoon Fikret Abdic. He told
Reuters on 10 August that he would neither flee nor surrender, and
apparently rejected a call for talks from Croat-Muslim federation
President Kresimir Zubak.  Patrick Moore, RFE/RL, Inc.

SERBIAN CHURCH BACKS KARADZIC AGAINST MILOSEVIC. AFP reported on
10 August that the Serbian Orthodox Church has endorsed the
Bosnian Serb rejection of the partition plan, aware of "the huge
responsibility" it has assumed "in the eyes of God, the Serbian
people, the world, and history." Reuters added that the bishops'
council, meeting at the official residence of Patriarch Pavle,
sharply condemned Serbian President Slobodan Milosevic for
imposing a blockade on the Bosnian Serbs. The decision puts the
Church openly at odds with Milosevic, whom some believe the
clerics have always mistrusted because of his communist past. The
9 August Stuttgarter Zeitung, however, says that Milosevic plans
to make some decisive moves against his Serbian enemies by purging
the army's officer corps and more firmly entrenching the
120,000-strong police, who are completely under his control. The
Independent sees Milosevic as determined to destroy the Bosnian
Serb leadership and replace it with more pliant individuals.
Patrick Moore, RFE/RL, Inc.

BULGARIA AND THE SANCTIONS. Recent reports suggest that Bulgarian
authorities are finding it increasingly difficult to uphold UN
sanctions against rump Yugoslavia at the country's borders. The
commander of the border troops, Col. Georgi Teterekov, told BTA on
10 August that while smuggling was unusual before 1993, it is
now--especially fuel smuggling--one of the most common offenses.
Although smugglers sometimes rely on corrupt customs officials to
carry out their business, most of the fuel is crossing the border
legally, via the fuel tanks of vehicles. In late July the customs
authorities of Vidin--with two border crossings with Serbia and
one with Romania within its jurisdiction--reported a record 2.5
million travelers in both directions in the January-June period.
Still, the Bulgarian economy as a whole is clearly suffering from
the sanctions, and Standart of 10 August said the Bulgarian
government is planning to request consultations in case the UN
would further tighten the embargo. The government, which says the
sanctions thus far has cost the country some $3.6 billion, has
repeatedly demanded compensation from the international community.
Kjell Engelbrekt, RFE/RL, Inc.

ROSY FORECAST FOR THE CROATIAN ECONOMY. Vecernji list on 10 August
reported on the meeting of the government the previous day.
Premier Nikica Valentic said that the monthly inflation rate has
been cut to less than 1% and that the new currency, the kuna, is
stable. Ending hyperinflation was one of the prime tasks of the
Valentic government. Hard currency reserves are $2 billion and
growing, and the country is seeking $1.25 million in a combination
of grants and loans from the World Bank for technical assistance
for economic restructuring. A combination of the war and the
desire of old interest groups to hold on to their power and
privileges has meant that the old economic structures remain
largely in tact. Meanwhile, the minister of tourism said that his
sector is expecting to bring in $1.3 billion this year, a
considerable increase over 1993. On 11 August, Novi list adds that
new records for tourist income are being set in the northwest.
Patrick Moore, RFE/RL, Inc.

POLISH POLICE ARREST GANGSTERS. The Gdansk antiterrorist brigade
detained 20 suspected members of the "Pruszkow mafia" on the Sopot
pier on 10 August, Polish media report. Reporters speculated that
the gang had traveled from Warsaw to the coast to discuss how to
respond to the new police offensive against organized crime that
was prompted by the weekend protest against "protection" mafias in
Warsaw's Old Town. Police hinted, however, that the narcotics
trade regularly draws Warsaw gangs to Poland's northern ports.
Meanwhile, Deputy Internal Affairs Minister Jerzy Zimowski
testified before a Sejm commission that the Old Town events were
set off when the Escorta "security service," which is controlled
by the Wolomin mafia, hired criminals to raid Warsaw restaurants
in an effort to win new "clients." Some deputies criticized the
police for inaction, drawing an angry response from Warsaw police
chief Jerzy Stanczyk, who argued that Polish policemen are
underpaid and get no respect. "It's easy to criticize the police
when you are sitting comfortably in your armchair in your
slippers," he said. Police officials pressed the Sejm to approve
pending legislation that would permit "sting" operations,
plea-bargaining, and incognito testimony.  Louisa Vinton, RFE/RL,
Inc.

POLISH TRADE BOOMS. Figures released on 9 August by the Polish
National Bank (NBP) and Main Statistical Office (GUS) show foreign
trade to be on the upswing. According to GUS, exports rose by
11.2% in the first five months of 1994; imports fell by 2%. The
trade balance remained negative, but the deficit shrank by $800
million to reach $1.3 billion in June. The increase in turnover
with Central European countries was especially pronounced;
agricultural imports dropped sharply. The private sector accounted
for 48.2% of exports and 65.4% of imports. In a report on the
first half of 1994, the NBP said that export revenues for the
first six months of 1994 amounted to $7.62 billion, a 19.3%
increase over the same period in 1993. Imports totaled $8.1
billion, a rise of 7.2%. According to the NBP, the trade deficit
for the first half of 1994 amounted to $434 million, a dramatic
improvement over 1993, when the half-year deficit was $1.13
billion. Hard currency reserves remained high, at $5.2 billion,
PAP reports. Improvement was also noted in the balance of
payments; at minus $527 million, it was less than one-third of the
deficit of $1.63 billion recorded for the first half of 1993. The
NBP and GUS use different accounting methods; their tallies often
differ dramatically.  Louisa Vinton, RFE/RL, Inc.

CZECH TELECOMMUNICATIONS TO STAY IN STATE HANDS. On 10 August the
Czech government approved "a state telecommunications policy"
under which the STP Telecom company will retain its monopoly on
running the Czech telephone system until the year 2000. Economy
Minister Karel Dyba told journalists after the cabinet meeting
that the government will keep a 51% majority share in the company.
At the same time, the company will be allowed to offer up to 27%
of its stocks to a foreign investor, which is to be selected by 1
March 1995. After the year 2000 the entire company will be
privatized. Dyba explained that the government had decided to
retain the STP Telecom monopoly because "it sees it as a guarantee
that the number of telephones will grow significantly by the year
2000." According to Dyba, demand for telephones in the year 2000
should not exceed supply; an application for a telephone "should
be processed within 14 days to one month." Jiri Pehe, RFE/RL, Inc.

SLOVAKIA TO HOLD REFERENDUM ON FUNDS FOR PRIVATIZATION. On 10
August Slovak President Michal Kovac called a referendum to let
the population decide whether a law should be passed requiring
participants in the privatization process since 1990 to disclose
the source of their funds, TASR reports. A resolution had been
passed through the parliament on 12 July calling for the
referendum, which was supported by deputies from the Party of the
Democratic Left and the opposition parties. Although the
parliament held a special session on 10 August in an attempt to
cancel the referendum, only 51 deputies supported its
cancellation. During the session, the parliament did approve a
bill on proving the sources of money used in future privatization
projects. Deputy Premier Ivan Simko said the referendum, which is
scheduled for 22 October, will cost 100 million koruny, while
various reports in the Slovak press have questioned the need for
such a referendum. Prior to the parliamentary session,
representatives of the PDL said they were unable to guarantee
support for the referendum's cancellation. Sharon Fisher, RFE/RL,
Inc.

SLOVAK ELECTION COMMISSION VERIFIES DEMOCRATIC UNION LIST. On 10
August the Slovak Election Commission verified the petition lists
presented by the parties competing in the upcoming parliamentary
elections, TASR reports. Although the Slovak National Party had
questioned the validity of the Democratic Union's petition list,
the commission concluded that only 2,440 of the nearly 15,000
signatures are invalid, thus the party can compete in the
elections. A total of 2,012 candidates, of whom 312 are women,
will run in the elections. The average age is 42.  Sharon Fisher,
RFE/RL, Inc.

SLOVAK CABINET APPROVES CAPITAL MARKET REFORMS. In its session on
9 August the Slovak cabinet approved a strategy to reform the
capital market, TASR reported. The cabinet stressed the need to
resolve the complicated relations between the three organized
exchanges (the Bratislava Stock Exchange, the Bratislava Options
Market and the over-the-counter RM System) and to stop the high
volume of trading which takes place outside the exchanges. Other
concerns include facilitating share trading through legislative
reforms, improving access to information and quickening procedures
for settlement of transactions. Following the session Finance
Minister Rudolf Filkus noted that "it is impossible to revitalize
the economy without a well-functioning stock market." In other
economic news, Filkus said the budget deficit stood at 8.2 billion
koruny on 9 August. A Slovak Statistical Office report released on
10 August showed that both industrial production and retail sales
rose in June, while the share of private enterprises in industrial
output reached 43.1%.  Sharon Fisher, RFE/RL, Inc.

GAP WIDENS BETWEEN HUNGARIAN SOCIAL CLASSES. According to studies
conducted from 1990 to 1993 by the Central Statistical Office and
the Academy of Sciences, the opportunities offered by the change
of regime were best taken advantage of by professionals and by
members of the middle class engaged in entrepreneurial activities,
MTI reported on 10 August. While some members of the middle class
entered the political and economic elite, skilled workers in
crisis-stricken professions have fallen into lower social groups.
Clear losers were unskilled workers and uneducated groups whose
wages declined and who were most affected by unemployment. Data
confirm that the emergence of a middle class has picked up speed
and that differences between the living standards of various
social groups has grown and become increasingly similar to the
European average.  Edith Oltay, RFE/RL, Inc.

HUNGARIAN MINORITY CLAIMS STIR ANGRY ROMANIAN REACTION. Reuters
reported on 10 August that the reiteration of demands for
territorial and other forms of autonomy by the Hungarian
Democratic Federation of Romania provoked angry reactions from
Romanian politicians across the political spectrum. The demands
were outlined by HDFR President Bela Marko in an interview with
the daily Meridian, following a meeting of the federation's
foreign policy committee held last week. The HDFR wants special
status for areas in Transylvania where "compact Hungarian
populations live." In these territories, Marko said, the minority
should have greater power of decision regarding education and
culture, and the Hungarian language should have there the same
status as Romanian. The HDFR wants Hungary to insist on including
these demands in the Romanian-Hungarian basic treaty which is now
negotiated. Ioan Manzatu, a deputy chairman of the ruling Party of
Social Democracy in Romania, called the HDFR demands "absurd" and
said that Hungarian "extremists" inside and outside Romania wanted
to "change Romania's frontiers." Similarly, Ioan Diaconescu, a
deputy chairman of the opposition National Peasant Party Christian
Democratic, said his formation would not agree to the "tracing of
new frontiers inside Romania." Michael Shafir, RFE/RL, Inc.

ROMANIANS FACE TRIAL FOR ATTACKING GYPSIES. Quoting the Prosecutor
General's office, Western agencies reported on 10 August that 38
people will face trial because of attacks on Gypsies. They are
accused of having set fire to 11 Gypsy homes in the village of
Racsa on 27 May after two Gypsies were detained on charges of
killing a Romanian shepherd. Gypsy leaders in Romania have
denounced what they regard as increasing racism against their
community, and the UN Committee on Economic, Social and Cultural
Rights has accused the Romanian government of allowing
discrimination against the Gypsies.  Michael Shafir, RFE/RL, Inc.

ROMANIAN DEMONSTRATORS WANT MONEY BACK FROM PYRAMID SCHEME.
Romanian television reported on 10 August that several hundred
demonstrators in Cluj protested against the loss of their
investment in the Caritas money-making pyramid scheme. Caritas was
founded in 1992 in Cluj by Ion Stoica and for some time produced
eightfold returns to investors. It is widely believed that Stoica
collaborated with the town's extreme-nationalist mayor, Gheorghe
Funar. In 1994 the scheme broke down. Romanian television said
local police have ordered the freezing of Stoica's assets.
Michael Shafir, RFE/RL, Inc.

PRICE LIBERALIZATION IN BELARUS. It appears that Belarus may be
edging towards a market economy. On 9 August Reuters quoted Deputy
Premier Syarhei Ling as saying that it had become impossible to
continue maintaining subsidies on food since this has resulted in
the exodus of such goods from the republic to its neighbors, where
the products are sold for up to 15 times their cost in Belarus.
Prices on meat and vodka have already been decontrolled since
President Alyaksandr Lukashenka assumed office, and Premier
Mikhail Chyhir said the subsidies on other goods, such as bread
and dairy products, would also have to be removed gradually until
the costs reach world levels. Following Gazprom's latest
announcement that it may once again reduce gas supplies to
Belarus, Interfax reported on 10 August that the price of oil will
rise by some 50% in Belarus as of 11 August. Subsidies on fuels
used in household ovens will be retained.  Ustina Markus, RFE/RL,
Inc.

LUKASHENKA DISMISSES OFFICIAL FOR CORRUPTION. On 10 August
Belarusian President Alyaksandr Lukashenka dismissed Forestry
Minister Henadz Markovsky for alleged corruption, replacing him
with Hryhoriy Navitsky, Reuters reported. Lukashenka had
campaigned for the presidency on an anti-corruption in government
platform, and a member of his team, Alyaksandr Feduta, has said
that every candidate for a post in the cabinet and presidential
administration would be checked by the parliamentary
anti-corruption committee and KGB.  Ustina Markus, RFE/RL, Inc.

POLISH DEFENSE MINISTER IN LITHUANIA. On 8 August Piotr
Kolodziejczyk began an official three-day visit to Lithuania,
meeting with his Lithuanian counterpart, Linas Linkevicius. On 9
August he discussed common security concerns and hopes to join
NATO with Premier Adolfas Slezevicius, Radio Lithuania reports.
Slezevicius expressed thanks for Poland's gifts of military
equipment, help in training Lithuanian UN peacekeepers, and
permission for officers to study at the Polish Military Academy.
At a news conference, Kolodziejczyk said that the idea of Russian
military transit to Kaliningrad through Poland was "illogical and
impossible." Saulius Girnius, RFE/RL, Inc.

PRIVATIZATION IN ESTONIA. The Estonian Privatization Agency
released figures indicating that since the beginning of 1994 it
has signed contracts selling 98 state enterprises for 541.7
million kroons ($42.7 million), with further promised investments
of 328.9 million kroons, BNS reported on 10 August. In 1993 it
sold 54 enterprises for 353.2 million kroons. That day the
agency's director general Vaino Sarnet announced the launching of
a program to sell shares in state-owned enterprises to
individuals. The agency expects to establish the share-selling
mechanism in the near future and hopes the government will issue a
decree next week regulating the sale of shares to the public.
Saulius Girnius, RFE/RL, Inc.

LATVIAN-CANADIAN TRADE ACCORD SIGNED. Baltic media reported on 10
August that Canadian ambassador to Latvia Michael Burke Philips
and Latvian Foreign Trade and EU Affairs Minister Olgerts
Pavlovskis signed a bilateral trade and commercial cooperation
agreement. The accord grants each signatory state
most-favored-nation status in trade and envisions the elimination
of cases of double taxation related to trade activities. A
Canadian trade mission is scheduled to visit Latvia soon to work
in the environmental protection sphere. In addition to the
Canadian Embassy in Latvia, which opened in 1991, another Canadian
diplomatic bureau was just established to speed up information
exchange.  Dzintra Bungs, RFE/RL, Inc.

  [As of 1200 CET]
  Compiled by Bess Brown and Sharon Fisher
The RFE/RL DAILY REPORT, produced by the RFE/RL Research
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