Upon the education of the people of this country the fate of this country depends. - Benjamin Disraeli 1804-1881

NO. 221, 22 NOVEMBER 1994


INDUSTRY. The radical democratic newspaper Moskovsky komsomolets on
19 November accused Western businessmen, and above all US
investors, of trying to gain "total control" of the Russian
industrial sector. The newspaper said that financial groups such as
CS First Boston, Morgan Grenfell, and the Overseas Private
Investment Corporation were buying stock in privatized Russian
companies through third parties at a hundred times less than the
market price. The newspaper sharply criticized the architect of
Russian privatization, First Deputy Prime Minister Anatolii
Chubais, and asserted that the second stage of privatization had
been designed by Western experts to undermine the competitiveness
of the Russian economy. Remarkably, similar accusations were made
by the ultranationalist newspaper Zavtra (nos. 37-41), which
contended that "Chubais is surrounded by the agents of Western
interests." Victor Yasmann, RFE/RL, Inc.

Chubais, the next stage of reform will focus on reducing inflation,
encouraging investment, and achieving financial stability, the
Financial Times reported on 21 November. Chubais said both
President Boris Yeltsin and Prime Minister Viktor Chernomyrdin were
committed to the 1995 budget, which aims to bring inflation down to
1-2 percent a month. The monthly inflation rate accelerated in
October to 15 percent following the collapse of the ruble. Chubais
said the support of the IMF was essential and that he was willing
to change some details of the budget to respond to its concerns. He
foresaw a battle with the Duma and accepted the need to
compromise--but not over the commitment to curb inflation. Chubais
also said that Russia's domestic savings had increased from 5
trillion rubles in January to 15 trillion in July and that he hoped
to encourage Russians to invest in industry rather than funds such
as the notorious MMM; stimulating foreign investment was also a
priority. Penny Morvant, RFE/RL, Inc.

Chechen parliament, government, and Council of Elders on 20
November advised President Dzhokhar Dudaev to begin forming Islamic
battalions "in order to rebuff the Russian aggression," Interfax
reported on 21 November. Also on 21 November, Chechen Foreign
Minister Shamseddin Yusef told Interfax that the leaders of several
Muslim countries, including Pakistan, which he visited last week,
were prepared to send volunteers to fight in Chechnya; he
threatened that if Russia did not agree to talks with the Chechen
leadership, it would be faced with a "second Afghanistan." A senior
member of Yeltsin's administration told Interfax that Russia would
not try to resolve the Chechen problem by sending in Russian
troops, although he could see little hope for a peaceful solution.
On 19 November the bodyguard of Chechen opposition fighter Ruslan
Labazanov was killed by a parcel bomb in the village of
Tolstoi-Yurt; Labazanov escaped unscathed, according to ITAR-TASS.
Liz Fuller, RFE/RL, Inc.

AUSHEV CRITICIZES RUSSIAN POLICY. In Moscow for a closed session of
the Federation Council on the situation in the North Ossetian and
Ingush republics, Ingush President Ruslan Aushev complained at a
news conference reported by Russian media on 18 November that "the
Russian federal authorities follow a misconceived policy in the
Caucasus" and that "the main reason for the [North Ossetians']
anti-Ingush actions is the Russian authorities' failure to
understand that this is a conflict for political control, not an
interethnic one." Aushev once again criticized the 6 November OMON
raid on the village of Altievo in Ingushetia (in which five were
killed and six Ingush arrested). The Russian-enforced state of
emergency in the region expires on 2 December; Aushev urged that it
be maintained in Prigorodnyi Raion to ensure the return of Ingush
refugees to four localities, as mandated but not implemented by
Moscow. While renouncing claims to Vladikavkaz, Aushev insisted
that Prigorodnyi Raion must be returned to Ingushetia through
negotiations. A former Russian paratroop general, Aushev has had to
balance his loyalties to Russia and to his own people in the face
of Moscow's pro-Ossetian policy. Vladimir Socor, RFE/RL, Inc.

RESISTANCE TO NATO'S ENLARGEMENT. Yeltsin's foreign policy adviser
Dmitrii Ryurikov (a moderate) asked rhetorically on Ostankino TV on
19 November "why NATO is moving the war machine toward our
borders." That action is akin to "arriving on a visit with one's
truncheon in hand," he charged. Duma Foreign Relations Committee
Chairman Vladimir Lukin (a centrist) told Ostankino Radio on 20
November that "without wishing to return to the former situation in
Eastern Europe, we must have countries there that are not involved
in blocs and are friendly both to us and to the West"--a vision of
a buffer zone situated between competing powers. Mityukov (Russia's
Choice), who had just headed the Russian parliamentary delegation
to the North Atlantic Assembly's annual session in Washington, told
a briefing in Moscow on 21 November reported by ITAR-TASS that the
delegation "opposed [NAA's] resolution to force NATO's enlargement"
as "inconsistent with the declared wish for a partnership that
would also reflect Russia's interests." The delegation warned that
NATO's enlargement could in the near future "return us to the
principle of coexistence based on blocs, dividing the world again
into coalitions confronting each other." Vladimir Socor, RFE/RL,

Iran complete construction of a nuclear power station at Bushehr
(begun in the 1970s and mothballed after the Iranian revolution),
ITAR-TASS and Interfax reported. An unidentified Russian Foreign
Ministry official told Interfax on 21 November that Russia had
pledged assistance in building the plant in a bilateral agreement
signed in 1992; he argued that there were no obstacles to
Russian-Iranian cooperation in this field given that Iran had
signed the NPT treaty and that IAEA experts were satisfied that
Iran did not have the potential to use its nuclear program for
military purposes. Liz Fuller, RFE/RL, Inc.

HARD TIMES IN DEFENSE INDUSTRY. According to Interfax on 21
November, the Russian defense industry has had a bad year. During
the first ten months of 1994, production fell by 40% compared with
1993--nearly twice the average decline for all Russian industrial
production. The statistical department of the State Committee for
the Defense Industry said that the greatest declines were in
aircraft production--which was cut in half--and electronics and
communications--down 46 percent. Workers continued to leave the
sector, which had an average wage of 165,400 rubles compared with
253,200 in the civilian economy. Doug Clarke, RFE/RL, Inc.

Interviewed on Ekho Moskvy on 16 November, Russian Deputy Minister
of Internal Affairs Mikhail Egorov said that arms and explosives
had reached Moscow and other large Russian cities unlawfully via
"two main channels. . . . One is Transdniester. The second has been
neutralized, it went through St. Petersburg and other towns. Those
two channels, which we have exposed, have had a considerable impact
on Russia." Vladimir Socor, RFE/RL, Inc.

Russian Foreign Minister Andrei Kozyrev and his French counterpart,
Alain Juppe, signed an agreement in Paris on 17 November calling
for France to build a storage facility near Novosibirsk for nuclear
material from dismantled Russian atomic weapons. According to an
ITAR-TASS report the next day, the project is expected to cost 132
million francs and be operational in mid-1997. The agency said that
both Russian and French experts were convinced that the facility
would be safe. It said that the authorities of Novosibirsk Oblast
were satisfied on this score and had not objected to the project.
Doug Clarke, RFE/RL, Inc.


unsanctioned demonstration by Cossacks from the eastern oblasts of
Kazakhstan called for the country to become part of the Russian
Federation and demanded that a national referendum be held to
decide the issue, Russian news sources reported on 19 and 21
November. The demonstration, attended by about 150 Cossacks from
the Semirechye and members of the Russian Society and the Slavic
interest group Lad, was held on 19 November in Almaty. City
authorities had denied the demonstrators a permit for a rally and
procession, fearing clashes with Kazakh nationalists, but there was
no official interference with the gathering in a city park, though
the demonstrators were surrounded by special service troops. In
addition to the demand that Kazakhstan give up its independence,
speakers also called for the Russian language to be granted the
status of a state language. Representatives of the Semirechye
Cossacks later met with President Nursultan Nazarbaev's adviser
Kairbek Suleimenov to discuss the refusal of local authorities to
register Cossack societies in Taldy-Kurgan and Chimkent. Bess
Brown, RFE/RL, Inc.


MILITARY BLOC FORESEEN. Using the term soyuz, which may mean either
union or alliance, Russian Foreign Minister Kozyrev told Russian TV
on 19 November that the CIS collective security system (which
Moscow currently seeks to develop) was meant "to become in the
future a real military-political soyuz of republics united by a
common history and by the common CIS border, for we simply do not
have and do not need another border." While offering the familiar
argument that a Russian-led CIS collective security system would
end "existing conflicts" and "stabilize this entire [CIS] space,
contributing to European and world security," Kozyrev now seemed to
consider such arguments less important: "Let the West react as it
pleases, we will do our work as we need. We have nothing to explain
to anyone, we don't have to justify ourselves. . . . There are, of
course, those who see any strengthening of Russia or the CIS as
harmful because they prefer a weak partner to a strong one. Well
let them think that way while we strengthen both Russia and the
CIS." The chairman of Russia's Federation Council and of the CIS
Parliamentary Assembly, Vladimir Shumeiko, who is also considered a
moderate, in turn claimed in Podmoskovskie izvestiya of 17 November
that the West had "reserved for Russia merely the role of a
regional power" and of raw material supplier. He claimed to possess
a 1984 map of the USSR on which Western corporations had allegedly
staked out and divided among themselves the ex-Soviet republics'
resources. To prevent that scenario, Shumeiko warned, Russia must
keep up its armed forces, intelligence, and "military
industrial-complex." Vladimir Socor, RFE/RL, Inc.

JOINT BORDERS, TROOP DEPLOYMENTS. On another Russian TV program on
19 November, Russia's civilian First Deputy Defense Minister Andrei
Kokoshin, also a moderate, claimed that "within the borders of the
former USSR . . . the CIS states are vitally interested in
maintaining the single military-political space. . . . We serve our
Russian national interests and those of many CIS states by actively
working to create our own collective security system." That would,
moreover, enable Russia "to build an equal relationship with the
West." Kokoshin claimed that Russia's military operations in
Transcaucasus and Central Asia were "collective decisions," the
Russian troops being deployed "at those countries' genuine
request." Lieutenant General Valerii Manilov, deputy secretary of
Russia's Security Council, said on the same program that Russia's
land forces and border troops had begun "organizing the joint
defense of the CIS' outer borders." Russia's border troop commander
Nikolaev has recently coordinated the action in a number of CIS
states, to public praise from Yeltsin. Vladimir Socor, RFE/RL, Inc.

                    CENTRAL AND EASTERN EUROPE

November report on NATO air strikes the previous day against the
rebel Serb-held Udbina airfield, situated in the Croatian region of
Krajina. According to a NATO statement, the air strike was in
response to "attacks which had been launched from that airfield
against targets in the Bihac area of Bosnia-Herzegovina in the past
few days." At least 30 NATO planes were involved in the mission,
which NATO officials describe as a success and designed in part to
deter Krajina Serbs from participating in fighting around Bihac, in
northwestern Bosnia. The airfield's runways were cratered, but
Krajina Serb planes were not targeted. Bosnian Prime Minister Haris
Silajdzic, who supported the NATO action, told Newsday on 22
November that the air strikes have not stopped the attacks on
Bihac: "The assault on Bihac never stopped. Shells are raining on
Bihac from tanks and artillery as we speak." In other news, Reuters
on 21 November reports that about 1,200 Bangladeshi UN peacekeepers
remain stranded in the Bihac pocket, with their supplies of food
and fuel running perilously low. In addition, medicines are in
short supply, and on average there is only one rifle for every five
peacekeepers. Stan Markotich, RFE/RL, Inc.

rump Yugoslav media on 21 November denounced the NATO attacks
against the Udbina airfield in the strongest possible terms.
Belgrade Radio alleged that NATO planes had destroyed civilian
targets, causing damage to villages and other population centers.
Meanwhile, Reuters reports that Serbian Television gave prominent
coverage to a government statement saying that "the federal
government most vigorously condemns the unfounded and irresponsible
bombing of the Udbina airport by NATO aircraft." The statement also
commented that the NATO action was "proof of the bias and one-sided
approach shown in the Yugoslav crisis." Krajina Serb authorities
were also quick to denounce the NATO action. Borba on 22 November
quotes rebel Krajina Serb President Milan Martic as saying the air
attacks were carried out "at Croatia's request." Stan Markotich,
RFE/RL, Inc.

SARAJEVO BUILDINGS SHELLED. International media reported on 21
November that several missiles hit Sarajevo City Hall and the
presidential building in the second attack on government buildings
in Sarajevo within a week. The missile that landed on the
presidential building did not explode. Bosnian government officials
have asked the United Nations for retaliatory air strikes. Stan
Markotich, RFE/RL, Inc.

announcement on 20 November, leader of the postcommunist Alliance
of the Democratic Left Aleksander Kwasniewski said he would support
the strengthening of presidential prerogatives in the new
constitution. Kwasniewski's party has consistently advocated a
parliamentary system for Poland. According to Rzeczpospolita on 22
November, Kwasniewski's turnaround could mean either that the
post-Communists believe they can win the presidential election in
November 1995 or that Kwasniewski has already decided to run.
Public opinion polls have consistently showed Kwasniewski as one of
the favorites to win the election. Jan de Weydenthal, RFE/RL, Inc.

21 November revealed details of the new currency to be introduced
on 1 January 1995. Initially, three bank notes (10, 20, and 50
zloty) and nine coins (1, 2, 5, 10, 20, and 50 groszy and 1, 2, and
5 zloty) will be introduced; 100- and 200-zloty notes are to be
issued in mid-1995. The new currency will replace the current zloty
by reducing its nominal value by 10,000. Jan de Weydenthal, RFE/RL,

CZECH LOCAL ELECTIONS: AN UPDATE. The latest preliminary returns
from the Czech local elections, held on 18-19 November, show that
independent candidates won more than half of the seats in municipal
councils. The Civic Democratic Party of Premier Vaclav Klaus won
about one-quarter of the popular vote. CTK quotes Klaus as saying
that the results are "confirmation" of the success of his reforms
since the fall of communism. The Communist Party of Bohemia and
Moravia, with 14 percent of the popular vote, placed second,
followed by the Christian Democrats and the Social Democrats.
Klaus's party gained more than 40 percent of the popular vote in
Prague. The CDP will have 23 seats in the 55-member Prague
municipal council. Jiri Pehe, RFE/RL, Inc.

EU TRADE COMMISSIONER IN PRAGUE. Leon Brittan said in Prague on 21
November that "the question of Czech membership in the European
Union is not a question of whether, nor even really a question of
when, but only a question of how." CTK reports that Brittan was
addressing a forum on the Czech Republic's integration into the EU.
He said many current Czech economic indicators-such as a balanced
budget and low unemployment-would make many EU members envious.
Czech Prime Minister Vaclav Klaus said at the same forum that the
Czech Republic is sufficiently strong to negotiate with the EU on
its own, rather than as one of a group of Central European
countries. Brittan agreed with Klaus's argument "in essence" but
said that if all Central European countries are able to enter the
EU together, he sees no reason why that should not happen. Jiri
Pehe, RFE/RL, Inc.

SLOVAK POLITICAL UPDATE. At a press conference on 21 November,
Movement for a Democratic Slovakia Deputy Chairwoman Olga Keltosova
said her party considers it probable that a coalition with the
Association of Slovak Workers will be formed, although conditions
have yet to be agreed upon, TASR reports. She added, however, that
the MDS will continue coalition talks with the Party of the
Democratic Left and the Christian Democratic Movement, even though
the two parties have said they will not participate in an MDS
government. But CDM Deputy Chairman Ivan Simko said discussions
will nonetheless take place between the CDM and MDS on 23 November
about support for certain legislative measures. In other news, the
final results of the local elections show that independents won
28.48 percent of mayoral seats, followed by the PDL with 17.87
percent, the MDS with 15.88 percent, the CDM with 14.77 percent,
and Coexistence with 4.66 percent. The MDS apparently received most
of its support in villages; the only major towns where MDS mayoral
candidates won were Povazska Bystrica and Partizanske. The party
also won two districts posts in Bratislava and one in Kosice. In
the race for local administration seats, the MDS won 22.78 percent,
the CDM 19.69 percent, the PDL 15.65 percent, independents 7.58
percent, and Coexistence 6.3 percent. Sharon Fisher, RFE/RL, Inc.

MINORITIES IN SLOVAKIA. Representatives of the Council of Europe's
Political Affairs Committee on 21 November ended a two-day visit to
Slovakia. Meeting with Slovak parliament chairman Ivan Gasparovic,
Tarja Halonen said all recommendations made by the CE when Slovakia
joined the group have been fulfilled and in some ways exceeded. A
final report on Slovakia is expected to be completed in the near
future. Members of the Hungarian coalition presented Halonen with a
memorandum stating serious objections to the wording of laws on
names and road signs and claiming that recommendations on a
solution to Slovakia's territorial division have not yet been
considered. Lubomir Fogas, member of the Party of the Democratic
Left and deputy chairman of the CE Parliamentary Assembly,
expressed surprise at the report. Halonen said she considers the
question of the administrative arrangement to be an internal
matter. Also on 21 November, Christian Democratic Movement Chairman
Jan Carnogursky met with a team of experts from the CSCE to discuss
minority issues. Proposals for schools teaching some subjects in
Hungarian and some in Slovak have been strongly criticized by
ethnic Hungarian politicians, but Carnogursky argued that the
Slovak minority in Hungary has only bilingual schools. Sharon
Fisher, RFE/RL, Inc.

Finance Minister Laszlo Bekesi on 21 November submitted the 1995
state budget to the parliament, MTI reports. Deputies voted to
limit discussion of the budget to 30 hours, with the ruling and
opposition parties each having 15 hours to express their opinions.
The speaker of the house suspended the discussion in the afternoon,
partly because a third of the cabinet members failed to show up
(according to parliamentary rules, all cabinet members should be
present). The state budget plans to increase government spending by
26.5 percent. The budget deficit (excluding debt repayment) is
expected to reach some 282 billion forint or 5.5 percent of GDP.
Bekesi warned that these figures can be achieved only if
privatization proceeds as expected and the state budget is cut
back. Judith Pataki, RFE/RL, Inc.

Melescanu said in an interview with RFE/RL on 21 November that his
country's assistance in enforcing the UN embargo against rump
Yugoslavia has given it "privileged ties" with the Western European
Union. He said cooperation with the WEU is allowing Bucharest to
become part of European defense structures without arousing
Russia's suspicions. Melescanu also reported progress in the
negotiations on a political treaty with Hungary. He said during
discussions the previous week in Bucharest, Hungary for the first
time proposed recognizing the inviolability of existing borders
between the two countries. Melescanu said he agrees with Defense
Minister Gheorghe Tinca, who recently commented that Romania and
Hungary must gain NATO membership at the same time. Michael Shafir,
RFE/RL, Inc.

interview, Melescanu called for a Romanian-Moldovan "dialogue" to
replace the polemical exchanges of the past year. He attributed the
friction mainly to Moldova's insistence on distinguishing its
ethnic, linguistic, and cultural identity from that of Romania and
claimed that such differentiation was unnecessary since Romania did
not plan to force Moldova into a merger. Romania's chief concern at
present is "the Romanophobia that is gaining ground in Moldova,"
Melescanu said. He called for redoubled Romanian efforts toward a
"pragmatic economic relationship," governmental interaction, and
"cultural engagement to develop historical and cultural awareness
in Moldova as a basis for political decisions there." Vladimir
Socor, RFE/RL, Inc.

November session, the Romanian government resolved to finance, via
its Culture Ministry, the Moldovan Popular Front's weekly Tara,
Moldpres reported on 17 November from Bucharest, citing official
Romanian sources. The Popular Front and Tara reject Moldovan
statehood, advocate early and unconditional unification with
Romania, and vociferously attack the Moldovan government and
parliamentary majority. Bucharest has until now supported a more
gradualist pro-Romanian party in Chisinau and its publications.
Vladimir Socor, RFE/RL, Inc.

WATER RATIONING INTRODUCED IN SOFIA. Bulgarian media report that
water rationing was introduced in Sofia on 21 November and is
expected to continue for the next two weeks. About 500, 000
residents will be affected. The measure was reportedly necessitated
by the summer drought, which seriously depleted water supplies.
Affected residents will have one day of water, followed by two days
without. Meanwhile, AFP on 21 November reports that Bulgarian
President Zhelyu Zhelev has arrived in France for a four-day visit.
Zhelev called on support for integrating Balkan nations into West
European political and economic structures. Stan Markotich, RFE/RL,

Election Commission on 21 November announced that owing to low
turnout, only nine seats were filled in the parliamentary
by-elections the previous day, international agencies reported. A
total of 55 seats were contested. Runoff elections will be held in
two weeks for four districts where the turnout was over 50 percent
but no candidate won at least half the vote. Elections for the
remaining seats are to be postponed indefinitely. Five of the newly
elected deputies are independents, three are from nationalist
parties, and one is a communist. The turnout was particularly low
in Kiev, where 18 seats were contested and only two filled. Ustina
Markus, RFE/RL, Inc.

UKRAINIAN PRESIDENT AT UN. Addressing the UN General Assembly on 21
November, Leonid Kuchma stressed the inadequacy of international
financial assistance for Ukrainian disarmament, international
agencies report. He said he hoped that now Ukraine has ratified the
Non-Proliferation Treaty, promises of aid from other countries
would be transformed into concrete support for Ukraine's economic
reforms. Kuchma also said that the closure of Chornobyl should not
be regarded as a local affair but an issue of international
interest. Kuchma is scheduled on 22 November to meet with US
President Bill Clinton, but it is unlikely he will win approval for
the right to launch US satellites. The lucrative deal would help
boost Ukraine's economy, but US rocket manufacturers have been
lobbying against allowing Ukraine to bid for the launching
contracts, saying the market is already glutted and would be less
profitable if Ukraine were permitted to compete. Ukraine is seeking
Western telecommunications customers for its launchers for
low-orbit civil space payloads and for converted SS-18 and SS-24
missiles. Kuchma was formerly the director of the world's largest
rocket factory--Pivdenmash in Dnipopetrovsk--which had a work force
of more than 50,000. Ustina Markus, RFE/RL, Inc.

notified the Belarusian government that it will not grant a new
credit of $308 million to the republic, Interfax reported. The IMF
justified its announcement by saying that Belarusian President
Alyaksandr Lukashenka's decision to return prices to their 1
November level suggested there would be no price liberalization in
the republic. The Belarusian government had submitted an economic
plan to the IMF on 15 November that was intended to open the way
for the credit. IMF officials have said the republic has met almost
none of preconditions for obtaining the credit. Those preconditions
include price liberalization, wage adjustment, and the reduction of
the budget deficit to around 4 percent of GDP in the fourth quarter
of the year. Ustina Markus, RFE/RL, Inc.

LITHUANIAN PRIME MINISTER IN US. Adolfas Slezevicius arrived in
Washington on 21 November for a four-day unofficial visit organized
by the US Baltic Fund, Radio Lithuania reported the next day. He
will hold talks with FBI chief Louis Freeh, IMF Director Michel
Camdessus, World Bank President Lewis Preston, and other officials.
He is also to meet with Deputy Secretary of State Strobe Talbott.
Saulius Girnius, RFE/RL, Inc.

Tartu on 19 November, the ruling coalition's leading party, Pro
Patria, approved a coalition agreement with the Estonian National
Independence Party signed the previous day by their chairmen, Mart
Laar and Tunne Kelam, BNS reported on 21 November. The congress
authorized the party council to begin talks with the Estonian
Reform Party and other right-of-center parties on forming a
coalition for the March 1995 parliament elections. It also adopted
the party's election program, made changes in the party's
regulations, and elected a new court of honor, headed by parliament
deputy Arvo Valton. Saulius Girnius, RFE/RL, Inc.

Jelgava, the Latvijai (For Latvia) movement is expected to become a
political party espousing "Christian, socialist, [and] conservative
ideas" and to field candidates in the next parliamentary elections,
scheduled for the fall of 1995, LETA reported on 21 November.
Initiators of the movement were the right-wing parliamentary
deputies Odisejs Kostanda and Joachim Siegerist. Siegerist was
elected chairman at the founding meeting, Kostanda and Roberts
Lasmanis deputy chairmen, and theology professor Roberts Feldmanis
honorary chairman. Dzintra Bungs, RFE/RL, Inc.

[As of 1200 CET]

(Compiled by Penny Morvant and Jan Cleave)
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
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Copyright 1994, RFE/RL, Inc. All rights reserved.

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