From: msirbu@next5.cs.umr.edu (Mihai Sirbu)
Subject: RFE/RL Daily Report 08 SEP, 1992 (long)
Date: Tue, 8 Sep 1992 15:01:22 GMT
Organization: University of Missouri-Rolla, Missouri's Technological University

The RFE/RL Daily Report is a digest of lastest developments
in the former Soviet Union and Eastern Europe. It is published
Monday through Friday (except German holidays) by the
RFE/RL Research Institute (a division of Radio Free Europe/
Radio Liberty, Inc.). Copyright 1992 RFE/RL, Inc.


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                       RFE/RL DAILY REPORT

                                       No. 172, September 8, 1992



                   SUCCESSOR STATES TO THE USSR

NABIEV RESIGNS. Tajik President Rakhmon Nabiev resigned on 7
September after armed opponents stopped him at Dushanbe airport,
ITAR-TASS and Western agencies reported from Dushanbe.  Nabiev was
reported to have intended to fly to his home base in Leninabad
oblast to confer with leaders there.  Instead, after several hours
of talks with government leaders at the airport, he agreed to
resign, later saying on CIS-wide TV that he had done so
voluntarily in order to stop the civil war in Tajikistan. Nabiev
handed his powers over to Supreme Soviet Chairman Akbarsho
Iskandarov.  Khovar-TASS reported that Nabiev's resignation would
be discussed by the Supreme Soviet on 8 September.  That body was
unable to muster a quorum to vote on his removal. (Bess Brown,
RFE/RL Inc.)

SHEVARDNADZE CALLS FOR AN END TO ABKHAZ BLOODSHED. In an address
broadcast on 7 September on Georgian Radio and summarized by
Interfax, Georgian State Council Chairman Eduard Shevardnadze
appealed for an end to what he termed "the senseless war" in
Georgia; he also criticized as "irresponsible" arguments by
unnamed Georgian political figures that the Abkhaz crisis should
be resolved by force.  Four Georgian soldiers were killed and 29
wounded in three separate clashes in Abkhazia on 7 September, and
a major railway line was destroyed by an explosion near the town
of Ochamchire, ITAR-TASS reported.  Russian members of the
commission formed to monitor implementation of the cease-fire
agreement signed in Moscow on 3 September are scheduled to arrive
in Abkhazia on 8 September. (Liz Fuller, RFE/RL Inc.)

AIR LINKS WITH CHECHNYA CUT. The president of Chechnya, Dzhokhar
Dudaev, has called on Tatarstan and Bashkortostan to stop
providing services to the Russian civil air fleet, Radio Mayak
reported on 5 September. Dudaev's appeal was in response to a
telegram from Moscow saying that from 6 A.M.  on 5 September there
would be no further air links between Groznyi and any city in the
Russian Federation. At the same time Dudaev threatened that if any
government interfered in the internal affairs of Chechnya, "then
we will wage war on its territory." The Russian government's
action is presumably aimed at making it more difficult for
volunteers to go to Abkhazia. (Ann Sheehy, RFE/RL Inc.)

YELTSIN MEETS WITH HEADS OF ADMINISTRATION. On 7 September, Boris
Yeltsin met with local government leaders of the Russian
Federation to discuss issues to be included in the agenda of an
all-Russian conference of the leaders of local soviets and
executive bodies. Interfax quoted Yeltsin's press secretary
Vyacheslav Kostikov as saying relations between representative and
executive bodies, and between regional executive bodies and the
central Russian government were discussed at the meeting. Interfax
said that at the meeting, Yeltsin complained that forces hampering
progress towards a market economy were prevalent in Russia. (Vera
Tolz, RFE/RL Inc.)

YELTSIN REJECTS ELEVEN DRAFT LAWS.  President Yeltsin vetoed
eleven draft laws discussed at the fourth session of the Russian
Supreme Soviet.  Interfax reported on 7 September that among those
drafts to be returned to parliament for further scrutiny are the
laws on trade and manufacture of goods, legal protection of
electronic computers, data banks, computer chip technology, and
patents, Russia's monetary system, defense, interior troops, and
monetary regulation and control.  Interfax reported the same day
that over 260 bills and fifty resolutions had been proposed for
the discussion at the fifth session of the Russian parliament,
which will begin on 22 September. (Vera Tolz, RFE/RL Inc.)

SPLIT AMONG RUSSIA'S CHRISTIAN DEMOCRATS.  A regional organization
of the Russian Christian Democratic Movement in the city of Orel
adopted a resolution attacking the movement's Moscow leaders,
Viktor Aksyuchits, Ilya Konstantinov and Artem Artemov. The
DR-Press (an independent news service of the Democratic Russia
Movement) reported on 7 September that the Orel organization
accused the three leaders of getting too close to Russia's
"red-brown opposition" (the extreme nationalist and pro-Communist
forces).  The resolution complained that by cooperating with such
overtly anti-reformist forces, the leaders of the Christian
Democratic Movement discredit the very ideals of Christian
democracy and the movement as a whole. (Vera Tolz, RFE/RL Inc.)

DEMOCRATIC RUSSIA ASKS POPOV TO LEAVE ITS RANKS. On 7 September,
the DR-Press distributed an open letter addressed to former Moscow
Mayor Gavriil Popov. The letter was written in response to Popov's
recent article in Izvestiya, in which he summed up mistakes made
by democrats, including members of the Democratic Russia, after
the 1991 August coup.  In the article, Popov also described
anti-democratic tendencies within the movement. The letter
complained that despite his criticism of the movement, Popov is
still one of its members. It suggested that if the former mayor
indeed has such a poor opinion of Democratic Russia, he should
formally announce his resignation from its ranks.  (Vera Tolz,
RFE/RL Inc.)

CHUBAIS: BANKING SYSTEM UNFAIR TO PRIVATE SECTOR. Chairman of the
Russian State Property Commission Anatoly Chubais criticized
current lending practices of the Russian banking system, Interfax
reported on 4 September. Chubais asserted that scarce credit is
still allocated administratively to a large degree in Russia, and
banks discriminate against non-state enterprises. He singled out
the recent issue of new credits to state enterprises suffering
from payment crises as an example of the problem.  He further
noted that the persistence of a non-market approach to the
distribution of credits will be an obstacle to the transformation
of state enterprises into joint-stock companies, which is an
essential step in the privatization process.  (Erik Whitlock,
RFE/RL Inc.)

SUBSIDY FOR RUSSIAN DEFENSE INDUSTRY.  The Russian government has
allocated an additional 13.2 billion rubles in subsidies for the
defense industry in 1992, ITAR-TASS and Interfax reported on 7
September. The sum is earmarked for salaries of employees of firms
and organizations, including research and development personnel,
who are working on government procurement contracts. It is aimed
at preserving the cadres and capacity of the defense industry.  No
details are available on how much was allocated in the 1992 budget
for defense industry subsidies: these are thought to have been
included in the overall defense vote.  The new allocation will
presumably add to the consolidated budget deficit, currently
running at over 1 trillion rubles.  (Keith Bush, RFE/RL Inc.)

FINANCIAL PROBLEMS IN RUSSIAN GAS INDUSTRY CITED. "Vesti" carried
a story on 6 September detailing some of the severe financial
difficulties the gas industry is currently experiencing.  The
concern Gasprom, made up of enterprises of the former Ministry of
the Gas Industry, is reportedly on the edge of financial disaster
because of delinquent payments from customers totally 90 billion
rubles.  Also damaging are burdensome government taxes on the
concern, which take from between $2.5 and 3 billion rubles out of
profits yearly. In addition, Gasprom claims that a significant
share of its hard-currency earnings must be spent on buying food
and other goods for workers rather than on much needed capital
investment.  (Erik Whitlock, RFE/RL Inc.)

JAPAN AND RUSSIAN DIGNITY.  Comments by Boris Yeltsin's personal
spokesman, Vyacheslav Kostikov, reflect Russia's continuing
concern that the turnover of the Kuril Islands to Japan in
exchange for Japanese economic assistance would be a blow to
Russian dignity. "We are willing to give something in return for
such help but we don't see this help as the be all and end all,"
Kostikov is quoted by the 8 September Financial Times as saying.
"The Japanese do not understand this. They talk to us like a
chronically sick child.  But we are not chronically sick. We are
just ill with communism. When Russia gets better, it will surprise
the world with its dynamism," Yeltsin's spokesman said. (Suzanne
Crow, RFE/RL Inc.)

AFGHANISTAN STILL A "MAIN INTEREST." Russian Foreign Minister
Andrei Kozyrev told a group of Russian diplomats recently
evacuated from Kabul that "Afghanistan was and still is one of
Russia's main global interests." At the same time, Kozyrev
stressed that Russia is not forming a confrontational alliance
with the United States in the region, and there are "no
imperialist pretensions" attached to Russia's interests.  Kozyrev
added that Russia's embassy in Kabul will be reopened as soon as
the safety of diplomats can be guaranteed, Interfax reported on 7
September. (Suzanne Crow, RFE/RL Inc.)

AZERBAIJAN TO DISCUSS CIS MEMBERSHIP. The chairman of the
Azerbaijani parliament, Isa Gambarov, told IMA-press on 5
September that the Azerbaijani parliament will debate whether
Azerbaijan should join the CIS, and that the National Council will
take a decision on this issue before the Bishkek summit on 25
September. Following the ouster of President Mutalibov in the
spring of this year, the Azerbaijan Popular Front had argued that
Azerbaijan was not a CIS member, because the parliament had not
ratified Mutalibov's signature on the Alma-Ata agreement.
Azerbaijani representatives have nonetheless regularly attended
CIS summits; Azerbaijan and Moldova were given an ultimatum in
July to come to a final decision on CIS membership prior to the
Bishkek summit. (Liz Fuller/Ann Sheehy, RFE/RL Inc.)

FOKIN DETERMINED TO STAY ON.  Ukrainian Prime Minister Vitold
Fokin told a press conference in Kiev that he has no intention of
resigning under pressure from the opposition, "Novosti" reported
on 5 September.  He maintained that he would leave office only if
he was convinced that his activities were harmful to the people or
if he felt that he had lost the confidence of President Leonid
Kravchuk.  Fokin also announced a new plan for further economic
reform.  (Roman Solchanyk, RFE/RL Inc.).

COSSACKS IN STAVROPOL KRAI TO BE ARMED? Evgenii Kuznetsov, head of
the administration of Stavropol krai, told an extraordinary
assembly of Cossacks of southern Russia that the Russian
government had decided to arm the Stavropol Cossacks, Radio Rossii
reported on 7 September.  Each Cossack patrolling the streets and
residential areas will now be permitted to have a helmet, a
bullet-proof vest, a rubber truncheon, a "Cheremukha" tear gas
aerosol, and a Makarov pistol.  At the same assembly the Cossacks
said they would not send Cossack units to Abkhazia.  They demanded
that movement around the North Caucasus of armed groups of
extremists being formed in Chechnya be blocked. (Ann Sheehy,
RFE/RL Inc.)

SOCIOLOGICAL STUDY OF COSSACKS IN NORTH CAUCASUS. Part of a
sociological study being conducted in all fourteen Cossack hosts
in Russia has shown that on the Don there are one to one and a
half million ethnic Cossacks, or 100 times more than experts had
estimated, Radio Rossii reported on 5 September.  Another
unexpected result was that they are not against private property,
although their official program stipulates communal land
ownership. (Ann Sheehy, RFE/RL Inc.)

COSSACKS ON THE DNIESTER DESCRIBED AS ANTI-SEMITIC AND
"RED-BROWN." A correspondent for Nezavisimaya gazeta who recently
visited the theater of hostilities in eastern Moldova reported in
the daily's issue of 1 September that anti-Semitism and
"red-brown" views are widespread among the Russian Cossack
volunteers fighting for the "Dniester republic," and that they can
often be heard commenting that Jews have seized power in Russia.
Confirming the correspondent's assessment, Valerii Shukov, a
member of the Main Staff of the Union of Cossack Hosts of Russia
and chief editor of its press organ Stanitsa, who opposes
anti-Semitism, told the correspondent that many Don and Kuban
Cossacks--who provide most of the volunteers to the "Dniester"
cause--are "infected by anti-Semitism" and that their leadership
is "bolshevized" and "red-brown." Another Cossack dissident cited
by Shukov described the present Cossack leaders as a combination
of "reds" and "black hundreds." (Vladimir Socor, RFE/RL Inc.).

ARMENIA PROTESTS TO TURKEY OVER VIOLATION OF ITS AIRSPACE.
Armenian Deputy Foreign Minister Georg Gazinyan told reporters in
Erevan on 7 September that Armenia had sent a protest note to
Turkey following an incident on 6 September, in which a Turkish
military plane demanded permission to land at Erevan's main
airport, saying that it was carrying international arms control
delegates who were authorized to land there, Radio Erevan
reported. The plane was refused permission to land as it had not
obtained prior permission to overfly Armenian airspace, and
finally returned to Turkey. Gazinyan told reporters he did not
know which agency the arms control delegates in question
represented. (Liz Fuller, RFE/RL Inc.)

                    CENTRAL AND EASTERN EUROPE

UN CONSIDERING ADDITIONAL TROOPS.  International media report on 7
September that UN Secretary General Boutros Boutros-Ghali is
reviewing proposals for an expanded peacekeeping force in
Bosnia-Herzegovina. The plan calls for an additional 8,000 troops
and support staff to escort food and medical aid convoys.
According to Radio Bosnia-Herzegovina on 7 September, Sarajevo
health officials say that the city only has about three days of
food left and repeated warnings that residents face widespread
disease and hunger within a few weeks. Relief aid flights are
still grounded after the apparent downing of an Italian plane on 3
September. Nearly two-thirds of Sarajevo's supplies are brought in
by airlift. Cyrus Vance and Lord Owen, cochairmen of the Yugoslav
peace conference in Geneva, announced they are traveling to
Zagreb, Sarajevo, and Belgrade this week in an effort to find ways
of resuming humanitarian aid flights. (Milan Andrejevich, RFE/RL
Inc.)

KARADZIC PROMISES TO BEAT DEADLINE. Bosnian Serb leader Radovan
Karadzic told Belgrade TV on 7 September that his forces "will
beat" a 12 September deadline which places Serb heavy weapons
surrounding Sarajevo, Gorazde, Bihac and Jajce under UN
supervision.  Karadzic charged that while the Serbs are complying
with the agreements reached in London in late August, Croat and
Muslim forces are using the opportunity to "massacre and expel"
Serb communities.  He was referring to Western, Serbian, and
Slovenian media, which in the past two weeks have reported large
columns of Bosnian Serbs fleeing from eastern Herzegovina and the
town of Gorazde. Borba reports on 7 September that since April
Muslim forces have cleared out all Serb villages in the Gorazde
area and that in late August they killed more than 200 people from
a column of mostly 1,700 Serb refugees.  (Milan Andrejevich,
RFE/RL Inc.)

HUNGARY BREACHING UN YUGOSLAV EMBARGO?  Romania says 12 gasoline
tank trucks driven by Yugoslav citizens trying to transport fuel
from Gyor, Hungary, reached the checkpoint at the
Romanian-Hungarian frontier at Nadlac on 1 September.  Rompres
said in a dispatch on 7 September that according to the travel
documents the transport destination was "Yugoslavia." The Romanian
customs did not allow the tanks to transit Romania, considering
the transport a clear case of breaching the embargo imposed on
former Yugoslavia.  Two days later another shipment was stopped,
this time indicating "Skopje, Macedonia," as the destination.
(Michael Shafir, RFE/RL Inc.)

ETHNIC HUNGARIAN PARTIES CRITICIZE MECIAR. In a statement
published by CSTK on 7 September, the Hungarian Christian
Democratic Movement and Coexistence, two groups representing
Slovakia's ethnic Hungarians in the Slovak parliament, accused the
Movement for a Democratic Slovakia and its leader, Slovak Premier
Vladimir Meciar, of ignoring the interests and demands of ethnic
Hungarians and of refusing to recognize the legitimacy of
Hungarian deputies in the Slovak parliament. The statement says
the coalition of the two Hungarian parties represents more than
75% of all voters of Hungarian nationality in Slovakia.  The
statement accuses Meciar of being hostile toward ethnic Hungarians
and, in particular, toward leading politicians and deputies
representing ethnic Hungarians.  The two parties also reject
statements in the Slovak media alleging that deputies representing
ethnic Hungarians are causing political tension in Slovakia. (Jiri
Pehe, RFE/RL Inc.)

MECIAR ON RELATIONS WITH HUNGARY. Speaking to Hungarian
journalists in Bratislava about his 9 September visit to Hungary,
Meciar said he is looking forward to his trip "not with optimism
but realism," Radio Budapest reported on 7 September.  For
Slovakia, he said, the Gabcikovo project is a technical, not a
political problem, and it is up to Hungary, which unilaterally
renounced the relevant 1977 state treaty with Czechoslovakia, to
make the next move.  Meciar called "unrealistic" Hungary's desire
to solve minority issues with its neighbors through bilateral
treaties on the basis of collective minority rights. Bilateral
treaties were not possible, he said, because "nationality issues
are the internal affair of a given state," while collective rights
are not granted anywhere in the world and autonomy could lead to
separatism. Meciar also noted the existence--alongside Budapest's
"rational and subdued policies" towards its neighbors--of
"nationalist currents" in official Hungarian policy "aimed at the
restoration of a Greater Hungary." (Alfred Reisch, RFE/RL Inc.)

WALESA PROPOSES "REFORMIST CONFEDERATION." During a two-hour
meeting with Prime Minister Hanna Suchocka and Solidarity Chairman
Marian Krzaklewski on 7 September, President Lech Walesa proposed
the creation of a "solidarity confederation of reformist forces."
According to the president's spokesman, this confederation would
include the labor unions, employers, and political parties that
have opted for reform rather than a return to the old order.
Walesa stressed the importance of a "master plan" for Poland.
Suchocka noted that the government's "pact on state industry" is
designed to achieve this end. The government presented this
legislative package to the major unions on 7 September with a
request for speedy consideration. (Louisa Vinton, RFE/RL Inc.)

HAVEL IN POLAND.  Former Czechoslovak president Vaclav Havel, on a
private visit to Poland, told reporters on 7 September that he
does not consider the imminent breakup of Czechoslovakia tragic or
dramatic and hopes the process can remain quiet and friendly.
Havel also said he had not decided whether he will run for
president of an independent Czech Republic.  In Warsaw Havel met
with President Walesa.  Havel told reporters the two discussed
"regional issues." He is to meet with Premier Hanna Suchocka on 8
September. (Jiri Pehe, RFE/RL Inc.)

FSM FACES BANKRUPTCY.  On 7 September some 8,000 auto workers from
16 FSM plants responded to a call by the FSM management to "show
their will to work" by appearing at the gates of the Tychy
factory, where a sit-in strike has been underway for over a month.
Strikers and nonstrikers engaged in a shouting match. FSM's
director announced that 12,300 of the firm's 21,500 employees have
signed a declaration indicating their desire to work and their
contempt for the strikers' "illegal methods." He set the plant's
daily losses at 12 billion zloty ($900,000) and warned that the
stoppage threatens hundreds of thousands of other workers in the
industry.  The head of the FSM strike committee admitted to Polish
TV that the strike's aims are political. (Louisa Vinton, RFE/RL
Inc.)

CZECH PREMIER ON RATIFICATION OF EC ACCORDS.  In an interview with
Mlada Fronta dnes, Czech Prime Minister Vaclav Klaus dismissed the
view of some EC members that Czechoslovakia should suspend the
ratification of its association agreement with the European
Community due to the planned division of the country. According to
Klaus, "this is not what John Major and Helmut Kohl tell me in
face-to-face talks." He acknowledged, however, that Czechoslovakia
cannot expect the association agreement to be ratified in
September as originally planned.  "An unstable country on its way
to division cannot become a member of any international community,
including the EC," said Klaus. (Jiri Pehe, RFE/RL Inc.)

EC AGREES TO BALTIC LOANS. On 7 September the Financial Times
reported that the EC finance ministers at a weekend meeting in
Bath, England, agreed in principle to provide $300 million in
medium-term loans to the Baltic States to reduce their balance of
payments deficit.  The EC loan would represent half of a $600
million package of loans from the G-24. EC Finance Commissioner
Henning Christophersen said that he expects a quick decision on
the EC half of the loan within the next few weeks. (Saulius
Girnius, RFE/RL Inc.)

POLAND-IMF AGREEMENT IN OCTOBER? After consultations with IMF
officials, Finance Minister Jerzy Osiatynski announced on 7
September that Poland could sign an agreement with the IMF in
early October.  Michel Deppler, the deputy director of the IMF's
European department, praised the government's resolve and Poland's
economic performance. The one major sticking point in the talks is
the scale of the budget deficit.  IMF officials predict that the
1992 deficit will reach 107 trillion zloty, while the Polish
government sets it at 80 trillion. Both figures exceed the
5%-of-GDP target set in the 1992 budget law. Osiatynski noted,
however, that the gap between IMF and government figures is
narrowing and that the IMF will assist in the planning of the 1993
budget. (Louisa Vinton, RFE/RL Inc.)

HUNGARIAN-BELGIAN JOINT STATEMENT.  Hungarian Foreign Minister
Geza Jeszenszky and his Belgian counterpart, Willy Claes, signed a
joint statement on bilateral cooperation in Budapest on 7
September, MTI reports. Claes expressed Belgian support for
Hungary's cooperation with the EC, NATO, and the West European
Union as well as for a political dialogue between the Benelux
Union and the Visegrad Triangle (Czechoslovakia, Hungary, and
Poland.) (Judith Pataki, RFE/RL Inc.)

BISHOP TOKES'S PROTEST FAST. On 7 September Bishop Laszlo Tokes
withdrew his acceptance of an invitation from President Ion
Iliescu for talks on his demands and is continuing his protest
started on 2 September, Radio Bucharest reports. Tokes said he his
decision was prompted by Iliescu's statement in which he called
the fast a "political diversion." The bishop said he was still
considering an appeal by the Democratic Convention to end the
fast, however. Meanwhile, prominent religious leaders in
Timisoara, including Nicolae Corneanu, head of the Orthodox Church
in the Banat, and Rabbi Ernst Neumann, leader of the Timisoara
Jewish community, expressed support for Tokes. (Michael Shafir,
RFE/RL Inc.)

STOLOJAN: "SABOTEURS" TRY TO INFLUENCE ELECTIONS. Prime Minister
Theodor Stolojan said the distribution of bread and other food is
being disrupted by saboteurs trying to undermine proreform
candidates in the September elections, Western agencies report.
This phrasing is a euphemism for former communists in the
bureaucracy, and possibly also for the Democratic Front of
National Salvation, on whose ticket Iliescu is running. Stolojan
said he is considering the militarization of distribution networks
to ensure deliveries. (Michael Shafir, RFE/RL Inc.)

LITHUANIA, RUSSIA TO SWAP HOUSING FOR SHIPS.  On 6 September at a
meeting in Kaliningrad Baltic Fleet commander Vice Admiral
Vladimir Egorov and Lithuanian Deputy Foreign Minister Valdemaras
Katkus agreed that Russia will hand over two torpedo boats and two
small antisubmarine vessels if Lithuania builds housing in
Kaliningrad for 10,000 military officers withdrawing from the
republic, Radio Lithuania reports on 8 September. Russia also
agreed to train crews and prepare workshops and armaments for the
ships.  (Saulius Girnius, RFE/RL Inc.)

GORBUNOVS INSISTS ON COMPLETE TROOP PULLOUT.  On 7 September
Estonian Supreme Council Chairman Arnold Ruutel consulted via
telephone with his Latvian counterpart, Anatolijs Gorbunovs, about
recent press reports that Gorbunovs might be ready to discuss the
possibility of Russia maintaining some bases in Latvia after the
main contingent of troops leaves.  Gorbunovs denied such
allegations and said that he advocated a speedy and complete
withdrawal of Russian troops from Latvia. Ruutel and Gorbunovs
also discussed Latvia's debt to Estonia regarding the supply of
electricity, BNS reported on 7 September. (Dzintra Bungs, RFE/RL
Inc.)

RUSSIA, ESTONIA SIGN TRADE AGREEMENT.  Estonian Prime Minister
Tiit Vahi and Acting Russian Prime Minister Egor Gaidar signed a
free trade agreement on 7 September in Moscow, BNS reports.  Among
other things, the agreement provides for establishing trade
representations in Tallinn and Moscow, cooperation in customs
procedures, and guaranteed energy supplies.  The two sides also
discussed troop withdrawals and other bilateral issues. According
to an RFE/RL Estonian Service interview with Vahi's press
secretary, Neeme Brus, Russia raised concerns over the treatment
of non-Estonians, but did not link human rights questions to a
troop pullout.  The Russian side asked instead whether Estonia
might compromise on keeping in Estonia somewhat longer some units
that it would be too expensive to withdraw this year; Vahi
reportedly said Estonia would consider a compromise.  Brus added
that Monday's talks were carried out in a spirit of greater mutual
understanding than any previous discussions. (Riina Kionka, RFE/RL
Inc.)

BULGARIA, MOLDOVA SIGN FRIENDSHIP PACT.  Bulgarian President
Zhelyu Zhelev and Moldovan President Mircea Snegur signed a
friendship treaty in Sofia on 7 September. Valid for 10 years and
renewable, it guarantees the rights of the 89,000 ethnic
Bulgarians residing in Moldova.  In addition, it calls for the
revival of commercial opportunities (disrupted by the war in
Moldova), as well as closer cooperation in political, economic,
and cultural spheres.  It also articulates cooperation in
transport, energy, health, technology, and environmental areas
among others, BTA reports.  (Duncan M.  Perry, RFE/RL Inc.)

BULGARIA ADMITS ARMS SHIPMENTS TO IRAQ.  At a press conference on
7 September, an official of the government commission on arms
trade said a state company had illegally exported light artillery
guns worth $15 million to Iraq, BTA and Reuters report.  According
to the official, Georgi Bozduganov, Kintex managed to circumvent
arms export legislation by employing Polish firms as
intermediaries and using forged documents listing the Philippines
as end receiver.  In May Defense Minister Dimitar Ludzhev stepped
down after allegations that as chairman of the government
commission on arms trade he had allowed illegal arms deals.
(Kjell Engelbrekt, RFE/RL Inc.)

                                                 [As of 1200 CET]
Compiled by  Hal Kosiba & Charles Trumbull

                              (END)
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