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                 RFE/RL Daily Report No. 159

                                            August 20, 1992

                SUCCESSOR STATES TO THE USSR

ABKHAZ VOW TO RESIST GEORGIAN "OCCUPATION." The situation in
Sukhumi on 19 August was reported by ITAR-TASS to be calm,
although occasional shots were fired. Abkhaz parliament
Chairman Vladislav Ardzinba, who had retreated to Gudauta
with 1,500 members of the Abkhaz National Guard, denied
reports of his resignation. The advance of Georgian National
Guard troops northwards from Sukhumi towards Gudauta was
halted by fighting near the villages of Esheri, according to
Interfax. Abkhaz parliament deputy Zurab Achba warned that
the Abkhaz parliament was preparing a campaign of armed
resistance against the Georgian "occupation." Georgian Deputy
Prime Minister Aleksandre Kavsadze, who was abducted by
supporters of ousted President Zviad Gamsakhurdia last month,
was freed on 19 August. On his return to Tbilisi he vowed to
campaign for the release of two senior Georgian security
officials still held hostage. (Liz Fuller)

CONFEDERATION OF MOUNTAIN PEOPLES ISSUES ULTIMATUM TO
GEORGIA. The Confederation of Mountain Peoples has issued an
ultimatum to Georgia to withdraw its troops from Abkhazia by
21 August and pay compensation for the damage it caused,
ITAR-TASS reported on 19 August. The ultimatum was issued by
an extraordinary session of the confederation's parliament
meeting in Groznyi and attended by nine delegations from
North Caucasian republics. If Georgia does not comply, the
confederation will declare the start of hostilities against
Georgia. In the meantime, a delegation from the North
Caucasian republic of Adigeya has been in Moscow to discuss
the situation in Abkhazia. The deputy prime minister of
Adigeya, Ruslan Khadzhibekov, told ITAR-TASS on 19 August
that the leaders of the North Caucasian region will meet in
Armavir on 20 August to work out a common position towards
Georgia. Adigeya has condemned the actions of the Georgian
leadership. (Ann Sheehy)

ATTEMPT TO ASSASSINATE ARMENIAN PRESIDENT? On 19 August,
Radio Baku broadcast a report carried by Radio Erevan the
previous day that shots had been fired at Armenian President
Levon Ter-Petrossyan as he was leaving his home on 17 August.
One of Ter-Petrossyan's bodyguards was seriously injured.
Radio Baku implied that the attacker was motivated by
dissatisfaction with Ter-Petrossyan's policy over
Nagorno-Karabakh. (Liz Fuller)

"DNIESTER REPUBLIC" FORMING OWN ARMY. "Dniester republic
president" Igor Smirnov announced on 13 and 14 August that
the republic intends to form its own army, Interfax and
DR-Press reported. On 14 and 16 August, the "Dniester
republic" held military parades in Tiraspol. In speeches
marking the occasion, Smirnov and the commander of Russia's
14th Army, Maj. Gen. Aleksandr Lebed, said that the 14th Army
will help the "Dniester republic" to create its own army. An
air show marked the debut of the "Dniester republic's" air
force, consisting of planes and helicopters transferred from
the 14th Army, DR-Press reported on 17 August. On 18 August,
the "Supreme Soviet" in Tiraspol began deliberations on
forming the republic's own army which will also include
spetsnaz and border troops, an RFE/RL correspondent reported.
(Vladimir Socor)

"DNIESTER" RUSSIAN VOLUNTEERS FOR SERBIA. Representatives of
"Working Russia" and other communist-nationalist Russian
organizations are recruiting volunteers for Serbia among
"Dniester" Russian armed detachments and Cossack units which
had arrived on the Dniester from the Russian Federation,
DR-Press press reported from Tiraspol on 17 August. Several
volunteers were intercepted in Romania on their way to
Serbia, the agency added. The "Serbian Republic of Krajina"
formed on Croatian territory is the first entity to have
extended recognition to the "Dniester republic." (Vladimir
Socor)

WORK ON DRAFT CIS CHARTER NEARS COMPLETION. Work on the draft
CIS charter will be completed by 1 September, Ivan
Korotchenya, the head of the working group responsible for
organizing CIS summits, told BelInform-TASS on 19 August. The
charter will set out the rights and obligations of
member-states. For reasons that are not clear, the
representatives of only six member-states (Armenia, Belarus,
Kyrgyzstan, Moldova, Russia, and Uzbekistan) seem to have
been taking a full part in the discussions, while Ukraine and
Turkmenistan have been represented by observers. The draft
charter includes sections on an economic court, a human
rights commission, and collective security. The latter
heading alone suggests it will not find favor with all
member-states. (Ann Sheehy)

LEADERS OF KAZAKHSTAN, TATARSTAN, AND BASHKORTOSTAN MEET. The
presidents of Kazakhstan and Tatarstan, Nursultan Nazarbaev
and Mintimer Shaymiev, and the chairman of the Bashkortostan
Supreme Soviet, Murtaza Rakhimov, met in the west Kazakhstan
city of Uralsk on 19 August. Kaztag-TASS reported. In a joint
communique the three leaders expressed support for the
preservation of a common economic space and for Nazarbaev's
initiatives in strengthening integrationary processes in the
CIS. They also expressed their desire for greater economic
cooperation and increased contacts between their peoples. In
a statement on Abkhazia they said an attempt was being made
to solve political questions by force, "ignoring the legally
elected organs of state power." Although the statements of
the three leaders seem to have been unexceptionable, some may
look with apprehension on this coming together of Kazakhstan
with the two leading Muslim territories of Russia. (Ann
Sheehy)

YELTSIN ANNOUNCES MORE DETAILS ON VOUCHERS. President Yeltsin
devoted a significant part of his television address on 19
August to privatization vouchers. Calling for the creation of
"millions of owners, not a small group of millionaires,"
Yeltsin announced that the distribution of vouchers for
buying shares of state-owned enterprises would begin on 1
October. Each Russian citizen is to receive one voucher
valued at 10,000 rubles. The voucher holder may purchase
available shares directly, through an investment company or
sell it for cash. Yeltsin also confirmed that the total value
of state assets (calculated according to 1 January price
levels) that will be made available for purchase through the
voucher program is 1,400 billion rubles. (Erik Whitlock)

NEW PROPOSAL TO COMBAT "SCISSORS CRISIS." Minister of
Agriculture Viktor Klystun has proposed a new approach to
reversing the growing disparity between agricultural and
industrial goods' prices, according to the Financial Times on
19 August. This disparity, often referred to as the "scissors
crisis," has caused severe financial problems for the
agricultural sector which receives low prices for its output,
but must buy high-priced industrial inputs. Klystun's idea is
to privatize the sectors in such a way as to integrate
industrial and agricultural firms. Creating cross-ownership,
in Klystun's view, will reduce the present monopolistic
behavior of the industrial firms towards the agricultural
sector. (Erik Whitlock)

RUSSIAN TRADE BANK OBSTACLE TO MILLIONS IN TRADE. The Russian
Trade Bank, Rosvneshtorgbank, which handles most of Russia's
financial transactions with foreigners, is impeding billions
of dollars worth of business with the West, according to the
Journal of Commerce on 14 August. The US Export-Import Bank
alone has approved financing for 113 million dollar trade and
investment projects between Russian and American firms that
are awaiting required cosignatures from the Russian bank. The
German trade bank, Dresdner, also has millions worth of deals
caught in the Rosvneshtorgbank bottleneck. The report gave
little indication why the Russian bank is not processing the
credits. (Erik Whitlock).

RUSSIA SEEKS MORE GERMAN CREDITS. A visiting Russian
delegation asked the German government on 13 August for an
additional two-year import credit to purchase urgently needed
food, raw materials, and medical supplies, The Journal of
Commerce reported on 14 August. The German government was
reported to be hesitant about the request as it has earmarked
its export credit insurance program to help companies in the
eastern part of Germany export to the former Soviet Union.
Bonn has already authorized Hermes export credits to the
value of DM 5 billion mostly to firms in the eastern part of
the country that are trading with the former Soviet Union.
(Keith Bush)

GORBACHEV'S ROLE IN YELTSIN'S CAREER. Gorbachev told Radio
Liberty on 14 August that, when Boris Yeltsin resigned as
Moscow Party boss in October 1987, Yeltsin asked to retire on
a pension. But, telling him "life still lies ahead,"
Gorbachev insisted that Yeltsin take the job of deputy
construction minister instead. The first disgraced Soviet
leader ever to return to politics, Yeltsin bounced back to
the limelight in the parliamentary elections of March 1989.
(Volik Rahr)

REVELATIONS ABOUT PUTSCH. Izvestiya of 13 August published
excerpts from an interview which Russian Prosecutor Valentin
Stepankov recently gave to the German magazine, Stern.
Stepankov revealed that former KGB chief Vladimir Kryuchkov
found out that Gorbachev and Yeltsin had concluded a secret
agreement to change the government and replace Prime Minister
Valentin Pavlov with Kazakh leader Nursultan Nazarbaevz.
Stepankov further suggested that although Gorbachev had lost
control over the country's nuclear weapons during his
isolation in the Crimea, the Army General Staff never lost
that control. (Alexander Rahr, Moscow)

PAKISTAN HALTS FLIGHTS TO UZBEKISTAN. Pakistan International
Airlines was forced to suspend a weekly flight to Uzbekistan
scheduled for Sunday, 17 August, due to fighting in
Afghanistan's capital, Kabul, AFP reported on 16 August. The
shelling has disrupted air traffic around the capital. There
is no word as to when the flights will resume. (Cassandra
Cavanaugh)

MORE UZBEK DEMOCRATS ARRESTED, BEATEN. Megalopolis Ekspress
confirmed on 19 August what Russian TV reported on 12 August,
that another leader of the Uzbek popular democratic movement
"Birlik," former USSR People's Deputy and member of the
commission investigating the 1991 August putsch, Pulat
Akhunov, was arrested in the city of Andijan, and accused of
assault. Ironically, other leaders of "Birlik" have been
recently subject to random beatings, presumed to have been
carried out on government orders. Among the recent victims is
Bobir Shakhirov, a dissident imprisoned in the 1970s, who
recently proposed the idea of a "milli mejlis" or national
popular assembly, and who has been twice attacked by
unidentified assailants. (Cassandra Cavanaugh)

MORE MCDONALDS FOR MOSCOW. The Moscow city government has
given a 24-year lease on a site on the Arbat to the
Moscow-McDonalds joint venture, Interfax reported on 12
August. The restaurant is scheduled to open in 1994. There
are plans to open 20 McDonalds fast food restaurants in the
city. (Keith Bush)

                 CENTRAL AND EASTERN EUROPE

DEVELOPMENTS IN BOSNIA. On 19 August, Bosnian Foreign
Minister Haris Silajdzic, speaking in Washington, offered a
glimpse into Bosnia's strategy for the upcoming EC Conference
on Yugoslavia in London, to be held later this month.
Silajdzic said the Bosnian government would propose a
significant decentralization of political authority in that
republic. Constituent units controlled by individual ethnic
groups would even be given some degree of independence in
carrying on relations with neighboring states, apparently a
reference to Serb and Croat ties to their mother republics.
This appears to be a significant concession on the part of
the Bosnian Muslims, who have up to now refused to negotiate
while fighting continued, and had insisted on a unitary state
structure for the republic. (Gordon Bardos)

SERBIAN PARTIES FAIL TO AGREE ON TALKS. The 19 August meeting
of the ruling Socialist Party (SPS) and 13 opposition
parties, designed to organize round table talks preparing the
upcoming November elections in Serbia, failed to yield any
concrete results. Most opposition parties maintained that the
talks should decide problems, while the SPS and Serbian
insisted that anything discussed there should only be taken
as recommendations. Consultations on organizing the round
table are to continue next week. Also next week the federal
government begins similar talks on preparing federal
elections. Vuk Draskovic, leader of Serbia's largest
opposition party, the Serbian Renewal Movement, refused to
take part in the talks. (Milan Andrejevich)

CROATIAN FORCES CLASH IN BOSNIA. The Belgrade, Ljubljana and
international media reported on 19 August that there have
been an increasing number of clashes between Croatian forces
in Bosnia-Herzegovina in recent weeks. Clashes involve
Croatia's Defense Council forces (HVO) stationed in
Bosnia-Herzegovina and the Croatian Defense Forces (HOS), the
ultra-right military arm of the Croatian Party of Rights. On
9 August a HOS general and 8 of his troopers were slain by
HVO troops in Herzegovina. HOS retaliated by attacking HVO
positions. One HVO officer told Britain's ITN on 19 August
that "we will eliminate HOS because they have ruined
Croatia's reputation." (Milan Andrejevich)

POLAND'S COPPER STRIKE SUSPENDED. The month-old strike at the
Polska Miedz copper combine was suspended indefinitely
shortly after midnight on 20 August, PAP reported. Finance
ministry officials apparently agreed to adjust the combine's
status under the excess wages tax, which would allow for
limited wage increases. The apparent conclusion of the strike
by some 38,000 employees at Poland's largest industrial plant
may take the wind out of the sails of the radical and
postcommunist unions that are attempting to use pay disputes
to force the government to abandon market economic policies.
(Louisa Vinton)

POLAND'S STRIKE SITUATION. Frustrated by the lukewarm
response to its call for a national protest on 18 August, the
six-union strike committee threatened even more radical
actions beginning 20 August. It also demanded
across-the-board raises of 1,100,000 zloty for every employee
and pensioner in Poland "in order to restore the living
standards of 1989." The radical farmers' union Self-Defense
threatened to block highways at 60 points; a Silesian train
drivers' union declared a general strike on regional
railways; and the postcommunist miners' union said it would
open a protest. The response to these protest calls is
unlikely to match the radicalism of the strike committee's
rhetoric. Only a handful of coal mines remained on strike on
20 August, and the railway protest got off to a half-hearted
start, perhaps thanks to warnings by the railway management
that the strike was illegal because mediation was in process.
Solidarity's train drivers' section cautioned its members
against taking part and warned of possible legal
consequences. The Gdansk shipyard management asked police to
evict the 40 workers who persisted in staging a sit-down
strike on the premises; the police declined to act unless a
crime was committed. (Louisa Vinton)

GOVERNMENT'S FIRM STANCE PAYING OFF? As the six trade unions
intent on politicizing Poland's labor conflicts seemed to
fall short of their aim to repeat the experience of August
1980, the government restated its determination to hold firm
and offer systemic solutions rather than local remedies for
strikes. Speaking in Cracow on 19 August, Prime Minister
Hanna Suchocka said that anarchy and destabilization were not
imminent threats. While willing to negotiate with all
law-abiding trade unions, the government "refuses to race
around Poland to answer their every call." This approach is
evidence of determination, not arrogance, Suchocka said. She
added that her cabinet's goal is to eliminate the causes, not
the consequences, of public dissatisfaction. (Louisa Vinton)

WORLD POLES CONGRESS OPENS IN CRACOW. Both Suchocka and
President Lech Walesa attended the opening session of the
Congress of Polonia and Poles from Abroad on 19 August in
Cracow. This is the first such congress to be held in Poland
since the war. Suchocka told the 300 delegates that Poland
was open to all Poles who wanted to return to their homeland,
but was not equipped to conduct an organized repatriation
campaign for Poles living in the former Soviet Union. (Louisa
Vinton)

BALTICS AND THE UN. The Baltic representatives have formally
appealed to the UN to take up the issue of former Soviet
troops remaining in the Baltic states, western agencies
report. In a 19 August letter to the UN Secretary General
Boutros-Ghali, the Baltic representatives said that they have
not seen much progress from European organizations such as
the CSCE, and that bilateral talks with Russia "have been
largely unsuccessful." Meanwhile, a Russian human rights
expert attached to a UN subcommission dealing with protection
of minorities told reporters on 19 August in Geneva that
Estonia and Latvia have adopted "discriminatory legislation"
vis-`-vis non-Baltics living in the area. Stanislav
Chernichenko, who claimed ethnic Russians do not have the
right to own land in Estonia and Latvia, said the situation
in Lithuania is "not as bad." In fact, land ownership in
Estonia and Latvia is determined not by a person's ethnicity
but by his or her citizenship status. (Riina Kionka)

SWEDISH BANK TRADES IN KROONS. The Swedish bank Forex has
become the second foreign bank to buy and sell the Estonian
kroon, the RFE/RL Estonian Service reported on 19 August.
Last month, the Lithuanian bank Litimpex was the first
foreign bank to trade in kroons, and last week a Finnish bank
became the first outside the former Soviet Baltic states to
accept kroons for deposit. (Riina Kionka)

ZHIRINOVSKY SPEAKS OUT. The leader of Russia's so-called
Liberal-Democratic Party has called for a reassertion of
Russian control over the Baltic states, western agencies
report. Vladimir Zhirinovsky, who recently returned from a
trip to Germany where he met with a number of like-minded
extreme rightist political parties, also told reporters on 19
August that Zionism and the United States are the two enemies
of Europe. "Zionists think up ideas and the US puts them into
practice," Zhirinovsky said. (Riina Kionka)

LANDSBERGIS CONGRATULATES YELTSIN. Chairman of the Lithuanian
Supreme Council Vytautas Landsbergis sent Russian President
Boris Yeltsin a note congratulating Yeltsin on the coup
anniversary, ITAR-TASS reports. Landsbergis's message
reportedly called the coup "the victory of Russia's
democratic forces over the putschists" during which "our
nations defended in solidarity democracy and the possibility
of civilized development." (Riina Kionka)

IMF TOUR CONTINUES. IMF Director Michel Camdessus wraps up
his Baltic tour by holding talks today (20 August) in Vilnius
with Lithuanian Prime Minister Aleksandras Abisala, BNS
reports. The two are scheduled to discuss Lithuania's economy
and the prospect of IMF loans. (Riina Kionka)

WORLD BANK ASSISTANCE TO BULGARIA. John Wilton, since last
week head of the World Bank's Sofia office, said in an
interview published in 24 Chasa on 19 August that two
requirements had to be met before a second tranche of
economic assistancetotalling $100 millionwould be released.
Wilton added that the money, which had already been formally
allocated, would be forthcoming after Bulgarian adopts
contemporary legislation on bank regulation and detailed
rules on the implementation of privatization. He also
mentioned the need for a law on social security. Depending on
the progress of reforms, Wilton estimated that the World Bank
might release some $200-300 million per annum to Bulgaria.
(Kjell Engelbrekt)

U.S. SENATORS VISITING CZECHOSLOVAKIA. A group of five U.S.
Senators arrived in Prague on 19 August, CSTK reported. The
group, headed by Senate majority leader George Mitchell, met
with Czechoslovak Prime Minister Pavel Strasky and Defense
Minister Imrich Andrejcak to discuss, among other things, the
prospects of Czechoslovakia's disintegration. The senators
said that the United States will support changes in
Czechoslovakia and expressed hope that the division of
Czechoslovakia will be peaceful. Strasky told the senators
that while the question of Czech-Slovak relations was
important, the key issue was the transformation of the
economy, in particular the process of privatization. Strasky
emphasized that a number of American firms already own or
co-own firms in Czechoslovakia. He said that the
transformation of Eastern Europe will not be possible without
active US involvement. (Jan Obrman & Jiri Pehe)

CZECHOSLOVAK VOUCHER PRIVATIZATION MOVING FORWARD.
Czechoslovak Deputy Finance Minister Vladimir Rudlovcak was
quoted by CSTK on 19 August as saying that 75 percent of the
so-called investment coupons (vouchers), purchased earlier
this year by Czechoslovak citizens interested in
participating in the process of privatization, have been
traded for company shares. 8.5 million Czechs and Slovaks
bought the vouchers. The first round of share auctioning
began in mid-May; the second round ended on 18 August.
Rudlovcak said that in the two rounds, the demand for shares
in 428 joint-stock companies was below the number of shares
offered; in 42 companies the demand was greater than the
supply. The third round of auctioning will start on 26
August. (Jiri Pehe)

ANTALL ON HUNGARIANS ABROAD. Prime Minister Jozsef Antall
said at the opening of the third world congress of Hungarians
in Budapest on 19 August that "it is the constitutional duty
of the Hungarian government to take responsibility for
Hungarians abroad," MTI reported. Recalling that the Peace
Treaty of Trianon allotted two-thirds of Hungary's territory
and some 3.5 million Hungarians to neighboring countries, he
said that while "no one can deny that this hurt
[Hungarians]," this could not justify any demands to change
borders by force, Radio Budapest reported. Antall said,
however, that Hungary expected its neighbors to grant full
ethnic rights to Hungarians and pledged to continue to speak
out in defense of those rights, stressing that the "minority
question is not an internal matter." Over 4,000 Hungarians
from all over the world are attending the congress, which is
the biggest international gathering of ethnic Hungarians in
more than half a century. (Edith Oltay)

ROMANIA AGREES TO GIVE ECONOMIC AID TO MOLDOVA. On 19 August
Modlovan prime minister Andrei Sangheli ended a two-day visit
to Romania. Before returning home, Sangheli signed accords
with Romania that might help Moldova reduce its economic and
energy dependence on the former Soviet Union. Most of
Moldova's energy supplies pass through the Dniester region,
and separatists there have disrupted deliveries several
times. Radio Bucharest quoted Romanian prime minister Theodor
Stolojan and deputy foreign minister Teodor Melescanu as
saying that Romania agreed to help improve roads, banking,
and tourism in Moldova. It will also try to tie Moldova into
its electricity grid and oil supply network. (Dan Ionescu)

ROMANIAN PRIME MINISTER CALLS FOR NORMALIZATION WITH RUSSIA.
A Radio Bucharest correspondent in Moscow reported on 19
August that Romanian prime minister Theodor Stolojan had sent
a message to his Russian counterpart, Egor Gaidar. The
message, which was delivered by Romania's charge d'affaires
in Moscow, called for a normalization of bilateral relations
in all fields, and especially in the economic one. Stolojan
also invited Gaidar to visit Romania. (Dan Ionescu)

[As of 1200 CET]

Compiled by Hal Kosiba & Charles Trumbull


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