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Date:         Thu, 10 Sep 1992 15:31:34 -0400
From:         George Frajkor <gfrajkor@CCS.CARLETON.CA>
Subject:      Gasparovic

  Ivan Gasparovic, the chairman of the Slovak National Council, and
two other parliamentarians are in Canada this week for a symposium on
the 200th anniversary of the Quebec national Assembly.  So are Roman
Zelenay and Michal Kovacs, of the CSFR Federal assembly .
 Gasparovic has this to say about the negotiations between Czechs and
Slovaks so far:

    The Slovak constitution can be carried over intact into an
independent republic.
     The new flag is adopted -- it is the same as
the pan-Slavic (Russian) flag, but with the Slovak mountains/cross in
the upper left third.
        The government social and economic policy will be modelled
after Austria.  It will have heavy social emphasis (price supports on
basic foodstuffs, etc) within framework of private production of
goods.  Social programs, but not socialist policy.


     The Gabcikovo dam last week produced its first electricity.
Slovakia should be self-sufficient in electrical energy in the next
five years, with Gabcikova and Vah river developments coming on line.
      Federal television to be privatized but the manner of doing so
not yet determined.  Should be a purely commercial station operating
in both republics.

    There are four areas where , after independence, the two Republics
will establish cooperation :
  (a) customs --- no tariffs between the republics, common tariff
policy in almost all cases.  There will be customs posts at the
Slovak-Czech borders to regulate goods in transit from other countries
or goods subject to different tariffs (e.g., Slovakia intends to
protect its agriculture from EC competition).
  (b) defence --  army already being divided so that Slovak soldiers
are being posted on Slovak soil, Czech soldiers on Czech.  There is
mostly agreement on division of heavy material although Slovakia has
not enough big airports to receive its share of the planes being
offered.  A joint command along the lines of NATO to be established
after working out of common military doctrine.
  (c) currency -- Slovak and Czech crowns will be different, but each
will be legal tender in the other's state.  Both republics will
support the 1:1  exchange rate by a limited term agreement.  After a
few years experience with real world market rate, new agreements to be
made.
   (d) economy -- free movement of labor, capital and
visitors without permits or visas
between the republics. No effect on privatization process (coupon) now
underway.

        Both states have agreed to assume successor state status
jointly. All countries represented diplomatically in Prague have said
they will establish diplomatic relations with both republics.

 Problem areas:  Division of internal and external assets.
   The previous government had turned over Czechoslovak Airlines (a
federal asset) to a consortium of Czech interests and Air France,
which now jointly own it.  Slovakia, it would appear, gets nothing out
of this.  There is discussion about compensation. the deal was legally
passed through parliament.
   the previous government signed over the CSFR merchant marine (yes,
there is one, based at the Polish port Stettin) to the Czech Republic.
Slovaks are taking this to court as the deal was not legal in their
opinion.
     Slovakia is disputing the value of foreign assets as estimated by
the federal government.  Thinks they should be much higher. This
applies to areas where cash compensation is being considered in lieu
of physical assets.   (.e.g. Slovakia may not care to have a full
fledged embassy in a country where the CSFR now has one. Rather than
divide up existing buildings, it may prefer cash compensation. )
     Slovakia is already recruiting people for diplomatic services, who
will be posted in existing consulates and embassies pending final
division.  About 80 need to be hired.
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