RFE/RL NEWSLINE Vol 2, No. 193, Part II, 6 October 1998

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RFE/RL NEWSLINE Vol 2, No. 193, Part II, 6 October 1998

A daily report of developments in Eastern and Southeastern
Europe, Russia, the Caucasus and Central Asia prepared by the
staff of Radio Free Europe/Radio Liberty.

This is Part II, a compilation of news concerning Central,
Eastern, and Southeastern Europe.  Part I covers Russia,
Transcaucasia and Central Asia and is distributed
simultaneously as a second document.  Back issues of RFE/RL
NewsLine and the OMRI Daily Digest are online at RFE/RL's Web
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Headlines, Part II

* PUSTOVOYTENKO SAYS WORLD BANK TO CONTINUE SUPPORT TO
UKRAINE

* MILOSEVIC REBUKES HOLBROOKE

* DJUKANOVIC BLASTS MILOSEVIC

End Note: THE LATVIAN CHALLENGE
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EAST-CENTRAL EUROPE

PUSTOVOYTENKO SAYS WORLD BANK TO CONTINUE SUPPORT TO UKRAINE.
Ukrainian Prime Minister Valeriy Pustovoytenko has said the
World Bank is ready to help Ukraine promote economic reforms,
Interfax reported on 5 October. Pustovoytenko added that he
had "very productive talks" with World Bank President James
Wolfensohn in Washington and that Wolfensohn had "confirmed
our cooperation." Pustovoytenko pledged that Ukraine will not
default on its debts. Ukraine has already received $1.23
billion in loans from the World Bank. Last month, the World
Bank decided to give Ukraine $900 million for four projects
to be implemented by the end of 1999. JM

OFFICIAL MONTHLY INFLATION RATE IN UKRAINE REACHES 3.8
PERCENT. The State Statistics Committee has reported that the
monthly inflation rate rose to 3.8 percent in September, up
from 0.2 percent in August, Ukrainian News reported on 5
October. However, experts believe that figure is grossly
understated. "In this manner, the government is trying to
lower inflationary expectations," the agency quoted one
expert as saying. The official inflation rate for the first
nine months in Ukraine was 6.1 percent. The official hryvnya
exchange rate fell by 51 percent in September. JM

UKRAINIAN SPEAKER OPPOSES VOTE OF NO CONFIDENCE IN CABINET.
Ukrainian Supreme Council speaker Oleksandr Tkachenko has
said he is opposing a vote of no confidence in the
government, ITAR-TASS reported on 5 October. A total of 202
deputies have supported a motion by the Hromada party and the
Socialist Party to put the issue on the parliamentary agenda.
The cabinet is expected to deliver a report on the economic
situation to the legislature on 13 October. Tkachenko said
that under Ukraine's current financial straits, the
parliament should seek to avert a political crisis. He added
that he does not rule out the possibility of replacing some
ministers but is against ousting the entire cabinet. JM

BELARUS REACHES 'FULL UNDERSTANDING' ON DEBTS WITH RUSSIA.
Belarusian Deputy Prime Minister Vasil Dalhalyou told
Interfax on 5 October that Belarus and Russia have reached
"full understanding" on mutual debts. Dalhalyou added that
Belarus's $220 million debt for Russian gas deliveries will
be paid in full in goods and services. The previous day,
Belarusian Deputy Prime Minister Valeryy Kokarau told
Belarusian Television that, given the current shortage of
cash, "there is no alternative to barter settlements within
the Union of Belarus and Russia." Dalhalyou also admitted
that the Russian financial crisis has dealt a "painful blow"
to Belarus. Before the crisis, Belarus's assets in Russian
banks amounted to 220 million rubles ($14 million) and $50
million. JM

ESTONIA WELCOMES OUTCOME OF LATVIAN CITIZENSHIP REFERENDUM.
Tallinn has welcomed Latvians' approval of amendments to the
country's citizenship law that ease restrictions on granting
citizenship to non-Latvian residents, BNS and Reuters
reported on 5 October. The Estonian Foreign Ministry said in
a statement that the results of the referendum "confirm
convincingly that the issues of the integration of non-
citizens in Latvia are solved according to the highest
international standards." The same day, the OSCE High
Commissioner for National Minorities Max van der Stoel said
he is pleased with the results of the Latvian referendum and
hopes Estonia will also liberalize its citizenship law. The
Estonian government has proposed amendments to the
citizenship law that are similar to those passed in Latvia.
JC

POST-ELECTION MANEUVERING GETS UNDER WAY IN LATVIA. Latvia's
Way, which came a close second to the People's Party in the 3
October elections, has held talks with the New Party on
forming a possible coalition government, BNS and Reuters
reported. A Latvia's Way spokeswoman said the New Party had
showed it would support a government headed by Transport
Minister Vilis Kristopans. Maris Grinblats, the leader of the
Fatherland and Freedom party, said his formation would agree
to cooperate in the formation of a new government with
Latvia's Way. Grinblats added that his formation also
respects Latvia's Way choice of Kristopans as premier.
Meanwhile, the winner of the elections, the People's Party,
has said it want to begin talks with Latvia's Way and that
such discussions could begin as early as 6 October. JC

SIEGERIST BOWS OUT. Joahim Siegerist, co-chairman of the
extreme nationalist People's Movement for Latvia party,
announced his intention to resign from that post on 4
October, BNS reported. Siegerist issued a statement saying he
assumed full responsibility his party's failure to gain entry
to the parliament. According to preliminary results, the
People's Movement for Latvia won less than 2 percent of the
vote. In the 1995 elections, in which it won 16 seats in the
parliament, Siegerist's party formed the third largest
faction at the time, after the Democratic Party Saimnieks and
Latvia's Way, and remained in opposition. JC

POLISH LOCAL ELECTION CAMPAIGN HEATS UP. Less than a week
before the 11 October elections, the ruling Solidarity
Electoral Action (AWS) has accused the opposition Democratic
Left Alliance (SLD) of using "unethical and illegal methods"
of campaigning by showing AWS candidates in the SLD's
television spots and advertising SLD election slogans on beer
bottles, Polish media reported. The SLD accused Solidarity
leader Marian Krzaklewski of "Bolshevist thinking" for his
statement that the local elections will be the "true
decommunization" of Poland (see "RFE/RL Newsline," 5 October
1998). Premier Jerzy Buzek, meanwhile, has rejected President
Aleksander Kwasniewski's criticism that the government is
dragging its feet on administrative reform. Buzek's spokesman
commented that Kwasniewski has joined "the false voices of
the opposition." A recent poll shows the SLD and AWS running
neck-and-neck, with 22 and 21 percent support, respectively.
JM

CZECH MINISTER AGAINST ASSIMILATION POLICY FOR ROMA. Pavel
Rychetsky, a deputy prime minister, has said that the
country's Romany community should maintain its language and
cultural identity and should integrate, not assimilate, into
society, CTK reported on 6 October. Rychetsky, whose
portfolio includes legislation and human rights, said he
strongly rejects a statement made the previous day by
opposition deputy Miroslav Macek calling for the Roma to
assimilate into Czech society. Rychetsky said he hoped
Macek's program is not similar to that of "Adolf Eichmann and
Josif Dzhugashvili [Stalin]." Peter Uhl, the government
commissioner for human rights, said there is often a tendency
to try and assimilate the Roma and that this strips them of
their ethnic identity. PB

CZECH POLITICIANS WANT SLOVAKIA IN FIRST WAVE. Deputy Premier
Egon Lansky said the Czech Republic must help Slovakia catch
up with the lead group of countries in joining Western
European structures, CTK reported on 4 October. Lansky,
speaking on Czech Television, said Prague must "keep Slovakia
on our side of Europe and not let it slip in the direction of
an insecure East end of Europe." Civic Democratic Alliance
Senator Michael Zantovsky said he was pleased by the election
results in Slovakia and added that the Czech Republic must
help the new Slovak government on "its parallel path toward
European and trans-Atlantic structures." PB

SLOVAK PARTIES DISAGREE OVER ELECTION OF PRESIDENT. The
parties likely to form the next Slovak coalition government
disagree over the means of electing the next president, the
daily "Sme" reported on 6 October. The Slovak Democratic
Coalition and the Hungarian Coalition Party want a popular
presidential election, while the Party of Civic Understanding
and the Party of the Democratic Left want the parliament to
quickly elect a new president for a two-year term and then
hold a popular election when that term expires. Slovakia has
been without a president since Michal Kovac's term expired on
2 March. In other news, Wolfgang Schuessel, foreign minister
of Austria, which currently holds the EU rotating presidency,
said on 5 October in Luxembourg that the EU would like to see
the new Slovak government formed as soon as possible. He said
it is premature to predict if Slovakia can be added to the
first wave of candidates for EU integration. PB

HUNGARY TO JOIN EU FIRST? EU Industry Commissioner Martin
Bangemann on 5 October told Hungarian Economics Minister
Attila Chikan that Hungary will be the first country among
those aspiring for membership to join the EU. After a private
meeting in Vienna, Chikan told reporters that Bangemann
talked about the possibility of Hungary's EU membership in
2002 with "pleasing unambiguity." In other news, Defense
Minister Janos Szabo and his Slovenian counterpart, Alojz
Krapez, signed an agreement in Misefa, Hungary, on military
cooperation and the protection of classified military
information. Szabo said Hungary believes NATO "must be open
toward Slovenia." MSZ

SOUTHEASTERN EUROPE

MILOSEVIC REBUKES HOLBROOKE... Yugoslav President Slobodan
Milosevic told U.S. special envoys Richard Holbrooke and
Christopher Hill in Belgrade on 5 October that NATO air
strikes against Serbia would be a "criminal act." Milosevic
added that the international community should "contribute to
the revival of the political process instead of [resorting
to] pressure and threats." He repeated his assertion that the
authorities in Kosova ended their crackdown one week ago, a
view with which Holbrooke publicly disagreed. The Yugoslav
leader added that the U.S. position on Kosova amounts to
"support for Albanian terrorists." The following day,
Holbrooke and Hill went to Prishtina for meetings with
Kosovar leaders. Observers suggested that the two diplomats
now face several days of shuttle diplomacy between Belgrade
and Prishtina in an effort to persuade the two sides to
accept an interim settlement. PM

...WHILE BULATOVIC SEEKS TO BUY TIME. Yugoslav Prime Minister
Momir Bulatovic told the parliament on 5 October that the
government accepts Russia's recommendation that the OSCE send
a mission to Kosova to see whether Belgrade has met the UN
Security Council's demands on ending the conflict there.
Opposition deputies suggested, however, that Bulatovic's
proposal is aimed at buying time. The government earlier
rejected several attempts by the OSCE to send missions to
Yugoslavia on the grounds that the organization has not
granted Belgrade membership. At the 5 October legislative
session, the prime minister also asked the parliament to
approve a sales tax of up to 4 percent to provide additional
funds for the military. Bulatovic called upon journalists to
report on Kosova in a "professional, responsible, and
truthful fashion." PM

SERBIAN MINISTER THREATENS JOURNALISTS. Serbian Information
Minister Aleksandar Vucic sent a statement to several
independent broadcasters on 5 October charging that they
rebroadcast "programs produced for the services of propaganda
and psychological war by the Western forces." He added that
their participation in the distribution of such programming
represents an "act of espionage and a direct attack on the
constitutional system and legal order." The minister pointed
out that those who participate in such activities will be
"suitably punished," independent Radio B-92 reported. Vucic
belongs to the Serbian Radical Party of Deputy Prime Minister
Vojislav Seselj, who recently threatened to take independent
journalists and opposition politicians hostage in the event
of NATO air strikes (see "RFE/RL Newsline," 30 September
1998). PM

DJUKANOVIC BLASTS MILOSEVIC. Montenegrin President Milo
Djukanovic, who is a leading critic of Milosevic's political
and economic policies and the arch-rival of Bulatovic, said
on television in Podgorica on 5 October that the Belgrade
leadership bears primary responsibility for the conflict in
Kosova (see "RFE/RL Newsline," 5 October 1998). Djukanovic
charged that Milosevic's policies there amount to a "one-
sided, excessive, and indiscriminate [form of] anti-
terrorism," which has spared neither property nor human
lives, RFE/RL's South Slavic Service reported. The
Montenegrin leader added that Milosevic has contributed to
regional instability by fomenting ethnic mistrust and hatred.
Djukanovic argued that the Yugoslav leader is trying to
undermine democracy in Montenegro by feuding with the
international community and "promoting chaos at home."
Montenegrin Deputy Prime Minister Novak Kilibarda said that
Montenegrin conscripts will do military service only in their
own republic if Belgrade declares a state of emergency. PM

CLINTON WARNS OF 'FALSE PROMISES.' U.S. President Bill
Clinton told his Russian counterpart, Boris Yeltsin, in a
telephone conversation on 5 October that the international
community must not allow Milosevic to continue "playing the
classic game of making false promises designed to remove
international pressure." Clinton added that Milosevic must
comply with UN demands in a way that is "verifiable, tangible
and irreversible." En route from Washington to Jerusalem,
U.S. Secretary of State Madeleine Albright told reporters
that "there would probably have to be some kind of
international presence" to help implement any peace
settlement in Kosova, but added that NATO's planning other
than for air strikes is "very fluid." She stressed that
Washington's main aim is to produce a settlement, not "to use
force for the sake of using force." PM

ANNAN LEAVES DECISION TO SECURITY COUNCIL. In a long-awaited
report released on 5 October, UN Secretary General Kofi Annan
said that he lacks sufficient "people on the ground" in
Kosova to enable him to judge whether Milosevic has met the
Security Council's demands. Annan concluded that the council
will have to decide the issue for itself, including whether
to authorize NATO air strikes. Russian and Chinese diplomats
said that they will oppose any such authorization. In his
report, Annan condemned "appalling atrocities" in Kosova,
adding that "it is clear beyond any reasonable doubt that the
great majority of such acts have been committed" by the
Yugoslav forces. In Brussels, NATO Secretary-General Javier
Solana said that there is enough evidence to indicate that
Milosevic has not met the UN's demands. PM

COOK SAYS EU READY TO 'BACK FORCE.' Speaking to the BBC on 5
October after a conference of EU foreign ministers in
Luxembourg, British Foreign Secretary Robin Cook said that
the ministers "want Milosevic to comply with the United
Nations resolution [on Kosova], to stop the hostilities,
withdraw his forces and allow the refugees to get home. If he
will not do that without the use of force, Britain is ready
to back force. I got a very clear message yesterday from that
meeting that we are agreed on the two important issues. First
of all we are absolutely determined that Milosevic must
adhere to the Security Council resolution. And secondly we
are all agreed that if necessary, and none of us wants to do
it, force must be used to make him comply with the Security
Council resolution...a resolution that Russia voted for." PM

ALBANIA OFFERS TO ASSIST NATO WITH AIR STRIKES. Foreign
Minister Paskal Milo told Reuters in Tirana on 5 October that
"Albania will offer all its facilities" for possible NATO air
raids on targets in Serbia. Milo stressed that Yugoslav
forces have failed to withdraw, as the Security Council
demanded, and that the "way is open" for tough measures by
the international community. He added that "we are convinced
the reaction from the international community will be very
strong." Paolo Tonegutti, head of NATO's newly opened office
in Tirana, declined to say if the Atlantic alliance is
working with Albania to prepare for possible air strikes. He
noted, however, that "everything Albania has done during
[recent military] exercises is more or less what Albania can
do for NATO in any other event." Albania has provided airport
facilities, medical infrastructure, and training areas to the
alliance. FS

NEW ALBANIAN FINANCE MINISTER SUSPENDS CUSTOMS INSPECTORS.
Anastas Angjeli on 4 October ordered the suspension of 48
customs inspectors, whom the previous administration of Prime
Minister Fatos Nano had hired without requiring them to pass
a mandatory test. A Finance Ministry spokesman told the ATSH
news agency that the move is designed to increase efficiency
and fight corruption. He added that the inspectors can return
to their jobs once they pass the examination. Meanwhile,
newly appointed Information Minister Musa Ulqini told Radio
Tirana on 5 October that his priority is to help transform
Albanian Radio and Television (RTSH) from a state-run into a
public broadcasting institution. The parliament on 1 October
approved a new law regulating public and private
broadcasting, which paves the way for a thorough reform of
RTSH and clarifies the legal status of private broadcasters.
FS

ROMANIAN PRIME MINISTER ENDS WASHINGTON VISIT. Radu Vasile
said on 5 October that he urged international financial
institutions to have patience with Romania, an RFE/RL
correspondent in Washington reported. Vasile, speaking at the
end of a working visit to the U.S., said he was told that the
pace of reform in his country must increase if Bucharest
wants international loans. In a radio interview earlier the
same day, Vasile said it would be "crazy" for Romania to sign
a multimillion-dollar deal with Bell Helicopters. Vasile said
the deal would increase the country's debt by $1.5 billion.
Vasile's government had supported the deal, while the IMF and
Vasile's finance minister opposed it. PB

TURKISH MILITARY CHIEF EXPRESSES SUPPORT FOR BUCHAREST.
General Constantin Degeratu, the Romanian army's chief of
staff, and his Turkish counterpart, General Husein
Kivrikoglu, met in Bucharest on 5 October, Rompres reported.
Degeratu said that the Romanian army was at a critical moment
in its history and needed strong support from the Turkish
army so that Romania could meet its interoperability goals
and be better prepared for NATO accession. Kivrikoglu said
that Ankara "will back up, as it has done up to now,
Romania's wish to enter NATO structures." The two also agreed
to cooperate in fighting terrorism and organized crime. PB

COMMUNIST PARTY RETURNS TO MOLDOVAN PARLIAMENT. The Moldovan
Communist Party, the largest faction in the parliament,
returned to the legislature on 5 October after a week-long
boycott, Infotag reported. Vadim Mishin, chairman of the
parliament's Committee for State Security and Public Order,
said the decision to return was based on meetings between
party members and their supporters. "The voters understand
the current situation in parliament...and unanimously back
us." Mishin said the Communists will continue to oppose laws
of a "reformist character" because such legislation is
against the interests of the people and is passed only owing
to the pressure of "international financial organizations."
PB

SOFIA READIES MINORITY PROTECTION LEGISLATION. The Bulgarian
government on 5 October approved legislation to ratify the
1995 Framework Convention for the Protection of National
Minorities, BTA reported. President Petar Stoyanov signed the
convention in 1995 but needed government approval before it
could be sent to parliament for ratification. Legislators
will be asked to approve an additional declaration that
defines what constitutes a "national minority" in Bulgaria.
Some 10 percent of the population is made up of ethnic Turks.
Meanwhile, the National Statistics Institute in Sofia
reported that in the second quarter of this year, GDP was
10.9 percent higher than in the first quarter, BTA reported
on 5 October. PB

END NOTE

THE LATVIAN CHALLENGE

by Paul Goble

	By reaffirming their commitment to the inclusion of
those who moved into their country while it was under Soviet
occupation, the Latvian people have presented a series of new
challenges to the Russian Federation, the West, and perhaps
especially to themselves.
	On 3 October, Latvian voters rejected by a vote of 53
percent to 45 percent a referendum that would have repealed
an act of the Latvian parliament in June eliminating a number
of restrictions on naturalization procedures for non-citizens
living in Latvia.
	Because most of those falling into this category are
ethnic Russians who moved into Latvia during Soviet
occupation, Moscow, the West, and many ethnic Russians in
Latvia itself viewed the removal of these restrictions as a
necessary step toward Latvia's establishment of a civil
society and its full integration into the international
community.
	And each of these groups took steps to press the Latvian
government and people to move in this direction. The Russian
government regularly denounced Riga for its past approach to
non-citizens, and some in Moscow have taken more direct steps
to try to force Latvia to change its direction.
	Western governments have lobbied the Latvian authorities
both directly and through the offices of the OSCE High
Commissioner for National Minorities Max van der Stoel. They
have pointed out the risks to Latvia if it failed to meet
what they called European standards in this area.
	And non-citizens in Latvia itself often protested
against what they claimed was discrimination against them,
although as many Latvians have pointed out only a very small
percentage of those eligible in the past actually sought to
become citizens of the country.
	But now that Latvians have rejected the referendum and
thus reaffirmed their commitment to the integration of the
non-citizens on their territory, this step presents some new
challenges to everyone involved.
	To the Russian government, the Latvian vote removes one
of the most neuralgic issues in the relationship between
Moscow and Riga. It undercuts the recent diplomatic and press
campaign that Russians have launched against the Latvian
authorities. And it means that Russian efforts to advance
Moscow's influence in Latvia will need to find a new
direction.
	Almost certainly, the volume of Russian attacks against
Latvia will decline at least in the short term. After all,
the Latvian voters have adopted what many in Moscow said they
wanted.
	While this may mean that Moscow will seek to raise
additional issues about the status of non-citizens in Latvia,
it could also lead Moscow to refocus its attacks on Estonia,
the other Baltic country that Russia has said is mistreating
its non-citizens.
	To the West, the Latvian vote presents an even greater
challenge. Western officials made it clear to Latvian leaders
that the West would find it difficult to support Latvia if
its voters scrapped the modifications in the citizenship
legislation.
	According to Latvian President Guntis Ulmanis, these
Western representatives had indicated that their governments
would have been less willing to back Latvian membership in
key Western institutions like the EU and NATO and less
willing to defend Latvia against Russian charges of ethnic
discrimination.
	Now that the Latvian voters have done what the Western
officials said needed to be done, many in Latvia will be
looking to see whether the West will reward Riga for the step
it has taken.
	One indication that at least some in the West are
prepared to do so was an announcement by the U.S. State
Department on 5 October that Washington was releasing
$500,000 to help make the Latvian naturalization process more
accessible.
	Another was the statement by German Foreign Minister
Klaus Kinkel that the vote means that "an important barrier
has been lifted on Latvia's road to the European Union." And
yet a third was the announcement by Sweden that it will also
provide additional help to the Latvian government.
	But many Latvians are likely to be looking for even more
support from the West. Articles in the Latvian press indicate
that many in that country believe they have now met standards
on citizenship higher than those that exist in many other
European countries.
	And that represents the third and probably greatest
challenge arising from this vote--the one to the Latvian
people themselves. They now have the obligation to make this
system work, to implement in day-to-day life the provisions
of the laws they have now approved.
	That will not be easy, especially given the feelings
that this referendum both aroused and reflected. But it is
likely to be less difficult in the long term than putting
into practice something about which few are saying very much
at the moment.
	That is the acceptance of the principle that building a
civil society and returning to the West cannot be achieved by
any single action, however noble. Rather, these goals require
a process that will make demands on Latvia even as it
continues to make the kind of progress that the outcome of
this referendum reflects.

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