Man will occasionally stumble over the truth, but most times he will pick himself up and carry on. - Winston Churchill
OMRI DAILY DIGEST

No. 56, Part II, 20 March 1997

This is Part II of the Open Media Research Institute's Daily Digest.
Part II is a compilation of news concerning Central, Eastern, and
Southeastern Europe. Part I, covering Russia, Transcaucasia and Central
Asia, is distributed simultaneously as a second document. Back issues
of the OMRI Daily Digest, and other information about OMRI, are
available through OMRI's WWW pages: http://www.omri.cz/Index.html

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
In the 21 March issue of OMRI's journal TRANSITION**:

THE MIDDLE CLASS
- Economic Reform Casts a Long Shadow in Russia
- The Making of the Middle Classes
- Poland's Perpetually New Middle Class
- Some Russians Are Learning to Be Rich

PLUS...
- RUSSIA: The NATO Distraction (A discussion with Grigorii Yavlinksii)
- UKRAINE: Caution is the Key for Ukraine's Prime Minister
  (a profile of Pavlo Lazarenko)
- CENTRAL EUROPE: Security Services Still Distrusted
- TAJIKISTAN: Defining the 'Third Force'

MEDIA NOTES: Journalists as Physical Pawns;
        Political Moves at Russian TV

For subscription information about OMRI's new monthly, send an e-mail
message to transition-DD@omri.cz

Note: Transition is not available electronically

**See important message below on upcoming changes to TRANSITION
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

CENTRAL AND EASTERN EUROPE

BELARUSIAN SOROS FOUNDATION FACES AUDIT. The Belarusian Security Council
set up a commission to audit the Belarusian branch of the Soros
Foundation, AFP reported on 19 March. The commission was created days
after the director of the branch, Peter Byrne, was barred from re-
entering the country because of alleged ties with the opposition. The
audit commission is made up of members of the Security Council, the
State Control Committee, and the Fiscal Committee. The commission
demanded that the foundation hand over various documents. -- Ustina
Markus

LITHUANIAN FOREIGN MINISTER ON NATO EXPANSION. Algirdas Saudargas,
speaking at a meeting with North Atlantic Council representatives in
Brussels on 19 March, said that at least one of the three Baltic
countries should be included in the first wave of NATO's enlargement,
BNS reported. "Such a step would ensure that the destiny of the three
Baltic states is not hostage to Cold War stereotypes," Saudargas said.
Lithuania, Latvia, and Estonia have all applied for NATO membership. --
Jiri Pehe

FOREIGN INVESTMENT IN ESTONIA TO CONTINUE. The director general of the
Estonian Foreign Investments Agency, Juri Sakkeus, said the volume of
foreign investment should not decline in the next two years, ETA
reported on 19 March. Sakkeus noted that the possible investment of $250
million in the Estonian Energy Co. by the U.S. company NRG Energy would
be comparable to a normal annual investments volume. Finland and Sweden,
with 35% and 24% shares, respectively, are the leading investing
countries, followed by Russia and the U.S. From 1992 to the third
quarter of 1996, foreign investment totaled 9.3 billion kroons ($775
million). Investment has gone primarily to the processing industry
(44.5%), retail and wholesale trade (26%), and transport and
communications (16%). -- Saulius Girnius

POLISH FOREIGN MINISTER ON NATO: 'NO PHONY ARGUMENTS.' Dariusz Rosati
spoke on 19 March in Britain with his counterpart Malcolm Rifkind about
NATO and EU enlargement. Rosati said NATO enlargement should not be
delayed because of pressures from Russia. He asked the West not to
accept "phony arguments" from Russia against NATO enlargement. Rosati
said Poland has been satisfied so far with progress on NATO enlargement
but is concerned that "wrong decisions" could be made at the U.S.-
Russian presidential summit in Helsinki that starts on 20 March. Poland
opposes the barring from NATO membership of countries that were once
part of the USSR, as that would imply that the West recognizes Russia's
right to a sphere of influence, which is against the right of states to
determine their own foreign policy, Rosati said. -- Jakub Karpinski

POLISH SHIPYARD PROTEST INTENSIFIES. Police on 19 March forcefully
removed some 70 Gdansk shipyard workers occupying the Treasury Ministry
building in a protest against the shipyard's closure, Polish and
international media reported. Workers' leader Adam Giera was transported
unconscious to the hospital. Shipyard workers occupying the Economy
Ministry and Labor Ministry buildings left without confrontation.
Solidarity trade union leader Marian Krzaklewski said the police action
is a "physical attack" on the union that calls for "extreme measures,"
including a general strike. Prime Minister Wlodzimierz Cimoszewicz said
he will not allow a violation of the law to go unpunished. Before it
went bankrupt, the shipyard employed 5,000 people. -- Beata Pasek

CZECH OPPOSITION LEADER ON NATO REFERENDUM. Czech Parliament Speaker and
Social Democratic Party (CSSD) Chairman Milos Zeman, in Warsaw on an
official three-day visit, said on 19 March that a referendum on NATO
membership in the Czech Republic would not result in rejection of
membership. The CSSD favors a referendum on NATO membership. Opinion
polls indicate that only one-third of Czechs are in favor of membership,
one-third do not know, and one-third are against. "I am a fierce
supporter of [Czech] entry into the two organizations [NATO and the EU],
but I still support the referendum," said Zeman. He noted that about 160
deputies in the 200-member Chamber of Deputies back Czech entry into
NATO and the EU. Zeman is heading a Czech parliamentary delegation to
Poland. -- Jiri Pehe

SLOVAK POLITICAL ROUNDUP. The cabinet on 18 March expressed support for
Culture Minister Ivan Hudec and Interior Minister Gustav Krajci, Slovak
media reported two days later. Claiming that there have been no
limitations on artistic and cultural freedom, the cabinet said that
Hudec "consulted all cultural institutions" concerning the
transformation process. The cabinet also said that police intervention
to remove opposition deputies and actors from the Culture Ministry on 10
May was lawful. At the insistence of the opposition parties, a
parliamentary no-confidence vote in the two ministers will take place
later this month. Meanwhile, Education Minister Eva Slavkovska dimsissed
student protests and said they should address the situation in education
rather than in culture. She also asked where the student strike
committee gets the money to finance its campaign. -- Sharon Fisher

SLOVAK PRIME MINISTER IN FRANCE. Vladimir Meciar started his first
official visit to France (his first to a Western European country since
1994) on 19 March, CTK and TASR reported. Meciar appealed to French
businessmen for greater investment, emphasizing the development of the
Slovak economy and highlighting the cheap, skilled work force. Slovak
officials signed several protocols for joint ventures with French
companies. -- Anna Siskova

HUNGARIAN PREMIER ON EU, NATO. Gyula Horn on 19 March said that
enlargement of the EU and NATO is impossible without Hungary's
participation, international media reported. He said a nationwide
referendum on joining NATO should be held in the first half of 1999,
after the general elections next year. Horn also called for a "treaty-
based relationship" between NATO and Russia and "special partnership
ties" between NATO and nations that will not be invited to join in the
first round. On other matters, Horn noted that while Hungary's bilateral
relations with Romania have markedly improved, those with Slovakia are
stagnating. Horn referred to Slovakia's domestic political problems and
the ongoing trial over a hydroelectric dam on the Danube at the
International Court of Justice in The Hague. -- Zsofia Szilagyi

SOUTHEASTERN EUROPE

ITALY DECLARES STATE OF EMERGENCY OVER ALBANIAN REFUGEES. Italy declared
a nationwide state of emergency on 19 March to deal with the refugee
influx from Albania, AFP reported. In Puglia refugee centers, convents,
and churches are overflowing with more than 10,000 Albanians. The
authorities have begun sending the refugees to other areas, in the north
and center of Italy. The emergency measures, approved by a special
cabinet session, will see the government diverting 61 billion lire ($38
million) to help cope with the influx, while limiting residence permits
to 60 days. Italy also repatriated some 300 Albanians regarded as
"dangerous," most of whom escaped from jail last week. Albanian Prime
Minister Bashkim Fino has asked Italy to delay repatriations until
Albania has restored its prisons, Germany's ARD TV reported. -- Fabian
Schmidt

ITALY CONSIDERS SENDING TROOPS TO ALBANIA. Foreign Minister Lamberto
Dini implied after talks with his Albanian counterpart Arian Starova
that Italy may send troops to Albania, saying there is "an urgent need
of humanitarian aid ... accompanied by a security force," AFP reported.
Dini said "Italy would prefer to act as part of the EU. But we are
obviously ready to respond to specific requests in a case of real
emergency." AFP quoted "an informed source in Brindisi" as saying that
up to 1,000 Italian troops could be sent to Durres to ensure aid is
safely distributed. A troop ship with some 300 marines and armored
vehicles on board left Brindisi overnight. A helicopter carrier was also
ready to leave Brindisi. -- Fabian Schmidt

EU: ALBANIA MUST ESTABLISH SECURITY BEFORE RECEIVING AID. EU mission
leader Jan d'Ansembourg, however, said Albania "has to solve its own
problems before we can help." French Foreign Minister Herve de Charette
said there is "no question of Europeans intervening with troops to
recover arms" from anti-government insurgents. Meanwhile, 15 people,
four of them children, were killed on 19 March. Two of the children were
killed by siblings playing with guns. The commander of the rebel-held
south, Xhevat Kociu, withdrew an ultimatum to President Sali Berisha to
resign and said that the 12 rebel-controlled districts will meet on 21
March to chart their next moves. Prime Minister Bashkim Fino, meanwhile,
canceled his planned visit to the south after the vigilante group
Committee of National Salvation, which supports Berisha, threatened
violence against the insurgents and people who negotiate with them. --
Fabian Schmidt

U.S. COMMANDER URGES $2 BILLION FOR BOSNIA FORCE. Gen. George Joulwan,
the commander of U.S. forces in Europe, said on 18 March that the
fighting readiness of U.S. troops in Bosnia will suffer if Congress does
not quickly approve $2 billion for peacekeeping in Bosnia-Herzegovina,
Reuters reported. Joulwan was referring to the increasingly important
role of the 100,000 U.S. troops in the region in providing rescue and
other services, such as the recent evacuation of hundreds of Americans
and other foreigners from Albania. Joulwan said the U.S. can be proud of
having few casualties in Bosnia but it also should anticipate the costs
of that operation and its effects on readiness to deploy forces
elsewhere if needed. -- Daria Sito Sucic

POLL: CROATIA'S RULING PARTY WILL LOSE IN ELECTIONS. The Croatian
Democratic Community (HDZ) is set to lose its majority in the upper
house of parliament and its control of a number of regional councils in
the 13 April local elections, according to a poll published in the
independent weekly Nacional, AFP reported on 19 March. However, Croatian
President Franjo Tudjman remained the most popular presidential
candidate, the poll showed. Tudjman had the support of 43.1% of
respondents, followed by Zdravko Tomac of the Social-Democratic Party
with 10.4%, and Vlado Gotovac of the Croatian Social Liberal Party with
9.3%. The HDZ would win 26 seats in the 68-seat upper house--down from
the current 38. Support for the opposition was strong in the capital of
Zagreb; in major Dalmatian towns such as Split, Zadar, and Rijeka; and
in the industrial town of Karlovac. The HDZ was strong outside of Zagreb
and in the former war zones. -- Daria Sito Sucic

BELGRADE UNIVERSITY RECTOR IS OUT. Dragutin Velickovic has resigned his
post at Serbia's leading university, school officials confirmed on 19
March. The announcement led to celebrations among students, who plan a
bigger demonstration on 20 March, international news agencies reported.
The students have staged protests for 118 days demanding the ouster of
Velickovic, who is regarded as a stooge of President Slobodan Milosevic
and antagonistic toward the students. The student protests ran parallel
to those of the political opposition. The interim rector is Dragan
Kuburovic, who was Velickovic's deputy. A new chief administrator will
be named on 1 October. Nasa Borba reported on 20 March that the Belgrade
University Council held a "stormy meeting" the previous night. --
Patrick Moore

U.S. BLASTS NEW SERBIAN MEDIA LAW. State Department spokesman Nicholas
Burns said on 19 March that "instead of passing a new restrictive media
law, the Serbian government should encourage independent private media
and ensure independent non-partisan management of the state-owned
media." He was responding to a recent draft proposal by the authorities
to greatly limit private ownership of radio and television. Control of
television in particular has been central in enabling President Slobodan
Milosevic to maintain his hold on power. His near monopoly has, however,
been threatened by the victories of the political opposition in 14
municipalities and by the defection to the opposition of the privately
owned BK television station. Milosevic's new information minister,
Serbian-American Radmila Milentijevic, has been trying to tighten
control over the media. -- Patrick Moore

ZAJEDNO CALLS FOR FORWARD-LOOKING APPROACH IN KOSOVO. The opposition
Zajedno coalition's Kosovo branch said that any political dialogue must
be based on a discussion of developments only since 1974, when Kosovo
obtained the wide-ranging autonomy that Milosevic subsequently
abolished. The Zajedno group likewise warned both the Albanians and the
Serbs against belaboring alleged historical injustices prior to 1974,
Nasa Borba wrote on 19 March. Dealing with conflicts throughout the
Balkans is especially difficult because of a tendency in the region to
dwell upon real or imagined grievances from the past rather than looking
toward the future. -- Patrick Moore

GREEK FOREIGN MINISTER IN MACEDONIA. Theodoros Pangalos on 19 March
visited Macedonia, the first visit by a Greek cabinet member since
Macedonian independence in 1991, Nova Makedonija reported. Pangalos said
little about the dispute over Macedonia's name. He noted: "There is a
threat of a spreading of the [Albanian] crisis and all efforts are being
made to prevent a refugee exodus," and he urged Macedonia to cooperate
with Greece in containing the crisis. Pangalos said that Greece had
proposed that the EU increase its assistance to Balkan economies.
Meanwhile, students holding a hunger strike in Skopje since 3 March to
protest a law allowing teaching in Albanian decided on 19 March to halt
that strike but to continue protesting. Finally, President Kiro Gligorov
addressed parliament on 18 March, criticizing nationalist Macedonian and
ethnic Albanian politicians for heightening interethnic tension. --
Michael Wyzan

ROMANIAN FOREIGN MINISTER IN BONN. After Adrian Severin on 19 March met
with his German counterpart Klaus Kinkel, a German press release said
Bonn will make no commitment to support Romania's integration into NATO
before the July summit in Madrid, Romania libera reported. As for the
EU, the German communique said: "Candidates for entry have to satisfy
certain requirements, which demand extensive adjustments." The Romanian
effort to win Bonn's support was behind an invitation by Public
Information Minister Radu Boroianu to members of the German minority who
left Romania, Reuters reported. Boroianu said earlier this week that
"repatriation would involve the right to housing and jobs" and condemned
"the criminal cash sale" of ethnic Germans by Romania's ousted
communists. -- Michael Shafir

FORMER ROMANIAN PRESIDENT WRITES AGAIN TO CURRENT PRESIDENT. Ion
Iliescu, leader of the Party of Social Democracy in Romania (PDSR), in
the second letter this week to Emil Constantinescu, rejected the
accusation that his party is "obstructing" urgently needed legislation
by boycotting parliament. The letter, carried in the daily Jurnalul
national on 20 March, said the PDSR will not obstruct the passing of the
budget law. Reacting to Constantinescu's accusations (see OMRI Daily
Digest, 19 March), Iliescu says "national interest" cannot be defined
outside the framework of "a functioning democratic system and the
institutions of the state based on the rule of law"--thus justifying his
party's decision to boycott parliamentary debates because of what it
regards as abuses by the ruling majority. Iliescu called again on
Constantinescu to organize a meeting of the leaders of all parties
represented in parliament. Constantinescu said he will convene such a
meeting. -- Michael Shafir

MOLDOVAN PARLIAMENT PASSES BUDGET LAW. The Moldovan parliament on 19
March approved the budget for 1997, Infotag reported on the same day.
The sometimes-heated debate on the law started on 7 March. The total
budget is 2,246 million lei (some $488 million), 20 million lei higher
than the figure proposed by the government and is based on a deficit
figure of 330 million lei. The Defense Ministry was allocated 70 million
lei, the Interior Ministry 85 million, and the Ministry of National
Security 45 million. -- Michael Shafir

COMMISSION FOR TRANSDNIESTER HOLDS FIRST SITTING. The inter-ministerial
commission for Moldova's eastern districts, set up by President Petru
Lucinschi to coordinate a single policy toward the breakaway region,
held its first meeting on 19 March. BASA-press reported the same day
that the chairman of the commission, Presidential Adviser Anatol Taran,
said the commission must involve itself in solving the socio-economic
problems faced by the Transdniester population in order to gain its
trust. -- Michael Shafir

BULGARIAN PARLIAMENTARY ELECTIONS UPDATE. The registration period for
the 19 April general elections ended on 19 March, paving the way for the
campaign to begin, RFE/RL and national media reported. Some 40 parties
will run for parliament, but the Central Electoral Commission received
57 applications, as some parties will run both alone and in coalition.
In a last-minute move, the Aleksander Stamboliyski Union--an agrarian
party and a former coalition ally of the Socialists--decided to run
separately, prompting Demokratsiya to write: "the red coalition is
dissolving." Party leader Svetoslav Shivarov, an active figure in the
former Socialist government, gave no explanation for the move. Former
President Zhelyu Zhelev also left a coalition with the ethnic Turkish
Movement for Rights and Freedom and registered his own Liberal Forum
coalition. The Liberal Forum, though, is unlikely to pass the 4% vote
threshold. -- Maria Koinova

[As of 12:00 CET]

Compiled by Susan Caskie

*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!
What's in Store for the magazine Transition

We've learned much in the last two years about what sort of magazine
Transition can be and what role it should play in Central and Eastern
Europe and the former Soviet Union. Of greatest help in this process has
been the advice of readers. Among some of the desired changes are for
Transition to offer even more articles by writers in the region - lively
opinion pieces as well as fact-filled analysis and expanded departments.

Accordingly, Transition will be substantially restructured and
relaunched as a monthly with the issue dated June 1997. The last
biweekly issue will be 6 April, followed by a brief hiatus. All existing
subscriptions will be honored and extended according to the new monthly
frequency, which is priced at $65 for 12 issues. As before, we offer a
substantial discount for readers in and of the countries we cover (apply
to the contacts listed below for more information).

For engaged intellectuals, policymakers, journalists, and scholars from
the region, the new Transition will provide a rare forum for the
exchange of ideas and criticism on political, economic, and cultural
issues and events.

For more information, contact the OMRI Marketing Department at tel.
(420-2) 6114 2114, fax (420-2) 6114 3181; email: transition-DD@omri.cz
*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!*^!

------------------------------------------------------------------------
            Copyright (c) 1997 Open Media Research Institute, Inc.
                      All rights reserved. ISSN 1211-1570
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