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Tuesday.

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President Georgi Purvanov summoned the first meeting of the newly established Crime Control Coordination Council. The idea for the establishment of the Coordination Council was announced August 21 after a meeting of the President with the Interior Minister Georgi Petkanov, Interior Ministry chief secretary Boiko Borissov and Prosecutor General Nikola Filchev. BTA photo by Bistra Boshnakova

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A funeral procession for two Macedonian police officers moves through the western town of Gostivar Tuesday, Aug. 27, 2002. Dail Jankoski and Aleksandar Nikolic, both Macedonian police officers, were killed in a drive-by shooting in Gostivar Monday early morning. The shooting came only weeks before the Sept. 15 parliamentary elections. (AP Photo/Boris Grdanoski)

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Macedonian police officers, act as pall bearers for two fellow officers, during a funeral procession in front of the church St. Dimitrije on the main square in the western Macedonian town of Gostivar Tuesday, Aug. 27, 2002. Dail Jankoski, 47, and Aleksandar Nikolic, 39, were killed in a drive-by shooting in Gostivar early Monday morning. The shooting came only weeks before the Sept. 15 parliamentary elections.(AP Photo/Boris Grdanoski)

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Macedonian policemen walk by the funeral procession for two colleagues who were shot dead early Monday. The drive-by attack on a police checkpoint in the western town of Gostivar, populated mainly by ethnic Albanians, occurred shortly after midnight a police spokesman said, and it comes less than three weeks before the first elections since the country narrowly averted ethnic civil war last year. Picture taken August 27, 2002. REUTERS/Ognen Teofilovski

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Macedonian policemen carry the caskets of the two murdered Macedonian policemen, in Gostivar August 27, 2002. The drive-by attack on a police checkpoint in the western town of Gostivar, some 100km (62 miles) southwest of Skopje, populated mainly by ethnic Albanians, occurred shortly after midnight on Monday, a police spokesman said, and it comes less than three weeks before the first elections since the country narrowly averted ethnic civil war last year. (MACEDONIA OUT) REUTERS/Ognen Teofilovski

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Thousands of people have attended the funeral of the two policemen who were killed on Monday in front of their police station in the Macedonian town of Gostivar. CTK/EPA

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U.S soldiers serving in the NATO-led peacekeeping mission in Kosovo stand behind a large cache of ammunition in Camp Bondsteel Tuesday, Aug 27, 2002. U.S peacekeeprs discovered more than 838 hand grenades, 23 mortars of different calibers and 11 rocket propelled grenades in the remote village of Korbulic near the border with Macedonia . (AP Photo/Visar Kryeziu)

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A U.S soldier serving in the NATO-led peacekeeping mission in Kosovo, together with a Kosovo police officer, check the grenades for finger prints on large cache of ammunition in Camp Bondsteel Tuesday, Aug 27, 2002. U.S peacekeepers discovered more than 838 hand grenades, 23 mortars of different calibers and 11 rocket propelled grenades in the remote village of Korbulic near the border with Macedonia. (AP Photo/Visar Kryeziu)

Murdered Policemen Buried in Gostivar.
 
Makfax
 
Killed policemen laid to rest in funeral survives at Gostivar cemetery
The two murdered policemen, Danil Jankovski and Aleksandar Nikolic, will be laid to rest in funeral services in Gostivar cemetery at 13:00 hours.
 
The two policemen were shot to death in Gostivar early on Monday. The attack was perpetrated with heavy machine-gun rounds fired from a passing-by automobile. The police has detained three suspects linked to murder.
 
The cowardly murder triggered nationwide concern and sorrow over the death of two policemen. Government officials and the international representatives expressed condolences to the families of murdered policemen. However, Danil Jankovskis brother rebuffed to accept condolences offered by the Minister of Interior Ljube Boskovski.
 
The city of Gostivar is still in shock in the wake of despicable act of violence.
 
No shootings had been reported last night in Gostivar region. The overnight calm in Gostivar region yesterday contrasted sharply with continuing volleys of automatic weapons fire reminiscent of conflict-affected areas. The movements of people and vehicles on the streets of Gostivar had been reportedly diminished last night.
 
Boshkovski: "They told me that if I arrest Ahmeti, I'll go in Hague"
 
pressonline.com.mk
 
"The same people who stopped me to finish my job in the Trebosh action, threatening to bombard Republic of Macedonia and to send me to Hague, in a joint meeting yesterday told me that if I arrest Ali Ahmeti, I will end up in Hague", said Boshkovski.
 
Republic of Macedonia Minister of Interior, Lube Boshkovski, visited the location in Gostivar today where the two policemen were killed and stated that "he police knows the organizers and persons who committed this act, and for this reason two suspected persons were arrested"
 
"A serious investigation has to be conducted. It is a fact that the motives are similar with the attack that occurred two years ago in the entrance of village Aracinovo, when in the same way three members of the police forces were killed. We believe that the background of this action is deeply political, because we are in a pre-election period, and certain persons do not feel comfortable with the elections and the Macedonian democracy", stressed Boshkovski.
 
He emphasized that "these terrorist gangs should be aggressively eliminated because they are still active in Macedonia and that, same as before, there are still threats from the international community in Macedonia".
 
"The same people who stopped me to finish my job in the Trebosh action, threatening to bombard Republic of Macedonia and to send me to Hague, in a joint meeting yesterday told me that if I arrest Ali Ahmeti, I will end up in Hague", said Boshkovski. He added that he will "fight these gangs until the end".
 
"We have the logistic support from the calm Albanian population, which every day is facing brutal attacks from these gangs that act politically according to the needs they have", said in the end Minister Boshkovski.
 
REGULAR GOVERNMENT SESSION.
 
MIA
 
The Government session Tuesday was dedicated to the loss making companies and the status of their employees, as well as the measures that are overtaken for the solution of this issue, Government Spokesman Gjorgi Trendafilov stated after today's session.
 
The Government adopted the National Strategy for decrease of poverty in the Republic of Macedonia, which is a study that has been prepared by the Ministry of Finance and a group of Macedonian experts.
 
"This study shows the serious relation of the team that worked hard, along with the parameters that could assist in the solution of the situation in this sphere, although part of the decisions have been already implemented by the Government", Trendafilov stated.
 
The Government also passed the decision for accession to the agreement for intellectual property and records, which comes in the framework of the activities for WTO membership.
 
Trendafilov informed that the youth handball team has been rewarded with Denar 1,200,000 i.e. Euro 20,000 for the 4th place at the European Junior Championship in Poland.
 
Regarding the security situation and the murder of the two policemen in Gostivar, the Government was acquainted with the measures that are being overtaken, Trendafilov stated, emphasising Monday's meeting of highest state officials, attended by Prime Minister Ljubco Georgievski, as well as Ministers of Interior and Defence Ljube Boskovski and Vlado Popovski.
 
He also reminded on Monday's meetings of Prime Minister Georgievski with several foreign ambassadors and international representatives.
 
"There are no indications that the murder has a criminal background, but that it is a terrorist attack", Trendafilov stated.
 
Today, the Macedonian Government began its session with one minute of silence as a sign of respect for the tragically killed members of the Ministry of Interior Daniel Jankovski and Aleksandar Nikolik, who lost their lives in Gostivar on Monday.
 
As emphasised in the announcement, the Government expressed deep sympathy to the families of the killed policemen, expressing condemnation on the perpetrators of this act.
 
Today's Government session, presided by Prime Minister Ljubco Georgievski, included the reviewal and adoption of the National Strategy for decrease of poverty in the Republic of Macedonia. According to the macroeconomic overview, poverty is a multidimensional problem that includes economic, social, political and cultural issues.
 
Still, the economic growth is the most significant factor that influences poverty.
 
Long-term economic growth directly decreases poverty through opening of new jobs, as well as growth of the real income of households, which increases the budget resources that are available to the state for social programs, improvement of quality and access to education and investment in infrastructure.
 
The strategy for decrease of poverty in the country is based on policy of long-term economic growth, which is possible only in conditions of macroeconomic stability. According to this strategy, the Government puts the priorities of the Macedonian economic policy upon a stabile and well coordinated macroeconomic policy, continuation of reforms in the financial system, finishing of the privatisation process, reforms in the loss making companies, reform of the labor market and continuation of the reforms in the public administration, as well as strengthening of its capacity for carrying out of the activities.
 
According to the strategy for decrease of poverty, the basic macroeconomic objectives in the period between 2002-2005 will be the realisation of a cumulative real growth of the GDP at around 17%, preservation of the macroeconomic stability with an inflation rate of around 3,5%, annual export growth between 6-8%, real growth of investments in basic means at 10% of an annual level, full fiscal consolidation and establishment of budget balance, preservation of the foreign public debt at the present level, and further decrease of the internal public debt and decrease of the unemployment rate at 22%.
 
At today's session, the Government reviewed and adopted the overviews on shares of the Macedonian Privatisation Agency. Namely, according to the indicators, Euro 320 million out of the Euro 444,982,439 of total capital is intended for sale. The Government concluded that all shares that are not subjected to any dispute should be published in the daily newspapers in the course of the following week, in order to acquaint the public, followed by their inclusion at the stock market for sale.
 
According to the overviews, a Euro 3,9 million income has been achieved in a short period of time from the sale of the certificates that were given to clients of savings banks "TAT", "Alfa S" and "Lavci" and foreign currency savings, as well as the bonds that have been received based on the Law on denationalisation.
 
The Government adopted the draft-decision for providing of means for cash payment of the requests of clients of savings banks "TAT", "Alfa S" and "Lavci". The changes refer to the increase of the amount at Euro 3,923,000, thus enabling the payment of around 90% of the total number of clients, which savings do not exceed the amount of Euro 1,000, and the ones that renounced from the part of the requests over this amount.
 
The Government also adopted the report on the control of the legality of the transformation process of the society capital of company for international and internal shipping with public customs warehouses "Fersped" AD Skopje. The Government adopted the report of the commission for privatisation, which annuls the decision from January 24 1995, because it provides consent for additional privatisation of this company, according to the model of selling the company to individuals that take over the management- management model and all other acts for carrying out of the privatisation. Thus, the Government obliged the Macedonian Privatisation Agency to carry out this decision.
 
Greece may seek ad hoc solution to deploy EU peacekeepers in Macedonia.
 
AP
 
ATHENS, Greece - Greece said Tuesday it may seek a temporary solution for deployment of European Union peacekeepers in Macedonia if Greek leaders fail to resolve a dispute with Turkey over the proposed force.
 
Plans to create an EU defense force which is to initially replace NATO peacekeepers in Macedonia have been stalled due to Greek objections to a proposal giving Turkey rights to veto any EU military deployment in its region.
 
Turkey, which is a member of the NATO alliance but not the EU, insists on a say in the deployment of any EU force in its "sphere of influence" in return for Ankara's approval to let the EU to use NATO planning facilities. The force was scheduled to deploy by the end of October in Macedonia, where ethnic Albanian insurgents reached a peace deal last year with the government.
 
"Greece will struggle to create and operate the European rapid reaction force in 2002," Papantoniou said. "It is a main goal of the Greek presidency."
 
Greece chairs EU military discussions because Denmark which now holds the EU's rotating presidency has opted out of EU military operations. Athens will take over the full EU presidency on Jan. 1.
 
Papantoniou said that a solution may be complicated by Turkish elections on Nov. 3.
 
"We can't predetermine the final outcome with certainty over the next one or two months because of the uncertainty that surround the Turkish elections," Papantoniou said.
 
If Athens fails to find a solution to the problem, Papantoniou said "Greece will find an ad hoc solution measure which will allow the creation and deployment of a European peacekeeping force."
 
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RALLY OF COALITION VMRO-DPMNE AND LP IN PROBISTIP.
 
MIA

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The coalition of VMRO-DPMNE and LP at the rally held in Probistip on Tuesday presented its candidates for MPs in the third election district.
 
At the beginning of the rally, the present honored the killed policemen in Gostivar with a one-minute of silence.
 
The candidate list carrier of the coalition in the third election district, Ljube Boskovski, addressed the gathered citizens with the words" Macedonian miners of Probistip", and said that, "you defended Aracinovo, defeated the terrorists and proved that this city is ready to fight for every centimeter of this state."
 
Speaking about the organized crime, Boskovski said that he was proclaimed 'persona non grata' by the Albanians and added that he would continue to do everything in his power for the Macedonians in Albania to have the same rights as Albanians in the country.
 
Leader of VMRO-DPMNE Ljubco Georgievski said that this campaign "should determine the democratic processes in the country."
 
"The shooting in Gostivar Tuesday, showed that there are some who wish to distract the democracy in the country once again and we can not accept the thesis that it was a criminal act," Georgievski pointed out.
 
He also refereed to the Ohrid Agreement, which he assessed as "a one-way agreement, whereat the Macedonians are the only side that gives, while the Albanians are not willing to provide some peace at least."
 
Speaking about the attacks by the party of SDSM and the undemocratic processes in the country, Georgievski said that even in Britain one can not find such freedom of speech and the media as in the country, where there are over 150 NGOs financed by the SOROS foundation and which have unlimited freedom of work.
 
He reminded of the six years of power of party of SDSM, when over a 90% of privatization process of the public companies was carried out, i.e. of around 1,560 firms, out of which hardly 10% are productive at the moment.
 
"We modernized all the companies, made the major structural reforms in the economy, among which opening of 110,000 new posts, restoring of the 8% of the pensions and conveyed the process of denationalization," Georgievski said.
The leader of this party said that there were 1,100 small companies under constriction at the moment that would employ thousands of workers, which is the main goal of the coalition.
 
The coalition's candidates for MPs from this city, Vance Mijalcev and Milka Mickoska, stated that the actual government invested Euro13,5 million for construction of the hydro system of Zletovica and the 125 km-long highway as well as many infrastructure projects.
 
STOJAN ANDOV HELD PRE-ELECTION RALLY IN KUMANOVO.
 
MIA
 
The candidate list carrier in the second election district of the coalition VMRO-DPMNE and LP, Stojan Andov, met the citizens of Kumanovo in "11 Oktomvri" settlement.
 
Andov said that the coalition was "predestined to win," and added that, "this coalition was not founded as a result of the personal calculations of the state authorities, but it was founded during the heaviest crises in the country, when we were tested and passed the exam by defending our land," said Andov, stating that as a reason to trust this government, as "this country proved that it could handle the crises."
 
Furthermore, Andov said that the members of the coalition "Together for Macedonia" avoided to take part in defending their country last year, while the members of VMRP-DPMNE and LP coalition were in the first combat lines, "protecting the territorial integrity and building the peace in the state."
 
He refereed to the accomplishments of the actual government, reminding of the unresolved economic problems and the vacant state budget left by the previous government.
 
"The direct achievements of this government are the DM 500 million for covering of the state loses. The total of US 70 million foreign currency and denar saving deposits of the citizens in 1998, reached the amount of US 540 million in the time of the ruling government, which is eight times more," said Andov, adding that "this proves the trust of the citizens in their current government and state banks."
 
"Favorable conditions for new investments have been created as well as new jobs provided," he further pointed out, and promised that the coalition would open another 160,000 jobs in the forthcoming period.
 
He also said that the actual government raised the pensions, the administration salaries, salaries in the health and education sector and also pointed out that the raising of the salaries would become a practice in the next years to come.
 
"The work of the actual government is pointing out the only way how to carry out the reforms in the country. These engagements and achievements are to lead the people of this country along the only true path that has already been traced, "Andov stated, adding that on September 15 "the people will have to decide on their future, by choosing the coalition of VMRO-DPMNE and LP as their only right alternative for Macedonia.
 
WTO REGIONAL WORKSHOP ON MARKET ACCESS AND TRADE RELIEF.
 
MIA

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Macedonian Minister of Economy Besnik Fetai opened the WTO regional workshop on the topic "Market Access and Trade Relief in the Countries of Central and Southeastern Europe," organized by the negotiation group for access to the markets within the World Trade Organization (WTO).
 
Minister Fetai informed the participants that Macedonia was finalizing the admission process to the WTO. The agreement is to be signed on September 17th, as a result of the successfully conveyed bilateral negotiations on exchange of goods and services according to WTO principles.
 
"This will close the negotiation process, which means that Macedonia will officially become WTO member," Fetai said.
 
Despite the current situation in the region, the course of the country's policy for joining WTO remained unchanged, Fetai said.
 
According to Fetai, the principles of open trade system say that countries may prosper by investing their own capital in production and trade. He underlined that the policy of free trade, which enables free exchange of goods ans services, doubled the countries' capital by fostering competitiveness, thus resulting in chipper and high-quality production."
 
Fetai spoke of WTO as the world block of countries, besides the fact that it was founded only six years ago. Considering the fact that it is comprised of 144 permanent members and 28 aspirant countries and with the last admissions of People's Republic of China, Taiwan and the Russian Federation, Fetai assessed that "almost 95 % of the world trade exchange, is carried out in compliance with WTO regulations."
 
Representatives from 11 Central and SE European countries attend the workshop, which will last until August 29.
 
How to Take Down a Government, Part Two.
 
Antiwar
by Christopher Deliso in Skopje
 
Financial Coercion and Other Forms of Intervention.
 
Interviews with Macedonian Finance Minister Nikola Gruevski and Dr. Sam Vaknin.
Nikola Gruevski, Macedonia's young and energetic Minister of Finance, is regarded as one of the bright spots in a government long accused of incompetence and corruption. His efforts to put Macedonia on track for economic reform have met with considerable success. The ruling VMRO-DPMNE party is banking on his popularity to deliver them the crucial electoral district of Skopje, where he is the party's listed candidate.
 
Dr. Sam Vaknin is a Skopje-based economist from Israel. A long-time observer of Balkans politics, Dr. Vaknin has also served on and off as advisor to the Ministry of Finance, and is a UPI Senior Business Correspondent. Few other foreigners, if any, can speak with such authority on Macedonia's relations with Western financial institutions.
 
Minister Gruevski and Dr. Vaknin recently participated in the latest grueling round of Macedonia's negotiations with the IMF. The talks left little resolved.
 
Macedonia was unable to get a standby agreement with the Fund, meaning that the vital aid money is not available. Since there is no reason for this Macedonia has dutifully complied with the IMF's stipulations Minister Gruevski and Dr. Vaknin believe that the Fund's reticence has something to do with the upcoming elections.
 
Also, the International Crisis Group released (on 14 August) a major report damning the government for corruption and financial mismanagement. The report cites specific examples and goes into elaborate details, but does not present the other side of the story.
 
I recently spoke with both men in Skopje on these subjects, and the phenomenon of Western intervention in general. Their answers are both eye-opening and disturbing.
 
Minister Nikola Gruevski:
 
On privatization.
 
CD: Most criticism of the government's economics is in regard to privatization projects like the sale of OKTA oil refinery to the Greeks, Stopanska Bank and also the Macedonian Telecom. Many allege that government figures made special deals, or must have just been stupid to settle for a price lower than they could have gotten. What is your view on privatization and these criticisms?
 
NG: In the past, everything was created for the old Communist managers to succeed in privatizing by shaking down the small shareholders. Before we came in 1998, remember that 90 percent of the privatization had already been done. And the majority of companies privatized in SDSM times went down or stagnated.
 
the attitude of this government is that we have to speed up the privatization, finish it as soon as possible, and then forget about it. Except, that is, for the big loss-makers. Those cannot be so easily closed, because they have many workers. For these, we need to find strategic investors.
 
But we did agree with the World Bank to solve the 40 biggest loss-makers. OKTA was first on the list, and we had a deadline (we sold to the Greeks) after several other companies came and expressed an interest but never came again.
 
Remember, to get rid of the loss-makers, we are forced to sell at huge discounts. Sure, the agreement with OKTA could be better. But generally, it helped us we saved the company and 1200 workers. And we have an investment of $110 million in the pipeline Thessaloniki-Skopje. Now, they are starting to expand it northwards to Pristina, and after to Nis.
 
On the intervention of the ICG: the corruption report.
 
CD: You are referred to as a source several times in the ICG's report. Do you feel that Edward Joseph gave you adequate opportunity for defense?
 
NG: There was some discussion between us, but he basically wanted a confession about the government being corrupt. He insisted on this. I told him, "I don't know, and I don't have any proof."
 
Joseph replied, "I know that you yourself were not corrupt, but I want you to recognize now, in front of me, that some of the others were corrupt."
 
Again, I told him that I had not witnessed any specific corrupt dealings.
 
In regards to the privatization affairs, I know that some parts of the negotiations could have been better but I also know how difficult negotiating with the IMF can be. Some ministers who criticized me for not getting a better deal came to the negotiations and never came back. To Mr. Joseph I said, "it is very easy to criticize a deal when you weren't there." He agreed but still wanted me to make some confession.
 
CD: The report states (on p. 15) that investment fell 60-70 percent in 2001, and "remains off in 2002." Any response?
 
NG: This is not true. Our figures for investment are very close to those for 2000. Because of the war, there was a 20 percent fall in foreign investment.
 
CD: The majority of scandals Joseph discusses relate to the VMRO-DPMNE party. Do you detect a bias?
 
NG: I said to Joseph, "OK, it is good that you are talking about the important topic of corruption. But why, when you are interviewed in the papers or on TV, do you never mention some corruption from the past?" And he replied, "I am fighting with these people who are in the government now not those from before."
 
Another thing about Edward Joseph I would like to mention. It's very interesting, the coming of the ICG here. In the past, there were many corruption affairs in this country, no one bigger than TAT (a failed bank based on a pyramid scheme). But no one from the West came to make such claims. In 1999 and 2000 too, there were some corruption reports. But nobody (from the West) mentioned this.
 
Yet immediately after the crisis, Edward Joseph came, and pronounced that this government is the most corrupted of all the transition countries! This is untrue. He's making statements every three months in the media saying, "I am the representative of the most famous international NGO, not connected with any government." Of course, the opposition is using this very well. Don't forgot, SDSM was much more cooperative with the international community during the war. I believe they are the reason why we didn't get a better outcome from the Ochrid agreement. And their reward for this cooperation?
 
The arrival of Edward Joseph.
 
On the West's support for the Socialists.
 
CD: Wow! So you believe that the West is supporting SDSM?
 
NG: In the past, there were theories going around about an IMF and World Bank conspiracy. I was the last to believe this I tried to convince the other ministers that they are here to help fight poverty and boost investment.
 
Before the crisis of 2001, we were the most advanced country for reforms.
 
Prime Minister Georgievski was praised almost like some kind of miracle! Nobody mentioned corruption.
 
Then, during the war, this government tried its best to defend the country. In the first months, we had support from the West that is, when we didn't have the military equipment for defense.
 
But later, when we received some (helicopters and other armaments), the West shouted, "the equipment cannot be used! You have to negotiate!" The government did not accept this, and so lost the support of the West. After May 2001, the prime minister went from being a good guy to bad guy. And immediately, we began to be bad guys also for the IMF and World Bank.
 
It's very visible, the West's support for the opposition before the elections. I have the feeling that the international community wants to punish the prime minister's behavior. It frustrated a lot of people: "such a small prime minister, from such a small and unimportant country, to say such things about us big and important people!"
 
CD: So is there a conspiracy after all?
 
NG: At that time, still I didn't believe in any conspiracy. But in May 2002, when the IMF came, they immediately opened the issue of TAT (the failed bank). Before they came, we had some signals that they would try to postpone the standby agreement but it was necessary to find a reason.
 
One week after we attempted to solve this (TAT), the IMF became much stronger on the issue. Almost every project was finished. "If you don't solve TAT," they said, "you won't have any arrangement, and the donor support will stop too." And it happened. After we failed to get an agreement, the World Bank called immediately and said they would not help us because we failed with the IMF. And then, one by one the donors from the donor's conference called and cancelled too.
 
Now, even the projects that cannot legally be stopped have been stopped. So I have begun to believe that there might be something to this idea.
 
On the future of Macedonia's reforms.
 
CD: If you lose the elections, are you afraid that the next Minister of Finance will destroy your efforts to reform?
 
NG: It depends on which person will come. If the past is repeated, all reforms may well be frozen or at least slowed down. 90 percent of the people in SDSM are the same as before especially in regards to economy.
 
In my period as minister, there was a 600 percent increase in progress from the previous regime. In one year we had more projects than all of SDSM's 8 years put together. In 2000, we had a 5 percent increase in GDP. The prediction then was another 6 percent for 2001, and again in 2002. At a lunch in Ochrid, the Prime Minister asked an IMF representative when the country would be free from the Fund. His answer? "In 2 years." Obviously, because of the war this hasn't happened.
 
Dr. Sam Vaknin:
 
On the West and Macedonia's elections: a history of interference.
 
CD: You told me that you could not recall, with the exception of the last presidential elections, such a high degree of interference. Can you explain?
 
SV: In 1999, Europe and the West strongly supported VMRO-DPMNE's candidate, Boris Trajkovski. He has lived in the US and has good relations with the Americans. He is a liberal in the economic and social sense in other words, he fit the profile.
 
However, his election was riddled with tacit intervention. In fact, the West hastened to congratulate the new president before the second round of voting had even been held. It turned a blind eye to an abnormally huge turnout in certain Albanian villages. People voted from the grave, and others, being out of the country at the time, by telepathy.
 
The West knew all this, but supported him anyway. Now, I know Boris Trajkovski personally, and I happen to think he is an excellent president certainly, a better choice than (his rival) Petkovski. Yet we are not talking about who would have been the better president. We are talking about crass and blatant interference, turning a blind eye to massive fraud, and manipulation of the national mood to fit a certain result.
 
On the axes of intervention: economics, edification, espionage and more.
 
CD: And there is more intervention this time around? How can it be characterized?
 
SV: The current level of interference is the highest ever, and follows several axes. First, the denial of economic aid. Cutting off the country's IMF credits and thereby the IMF's seal of approval affects World Bank credits, donor conference pledges, and by implication, all other forms of international credit.
 
Such credit is a lifeline for Macedonia. The cut-offs are being done despite the fact that Macedonia has fully complied with both the IMF's staff-monitored program agreed in December 2001, and with the two outstanding arrangements with the World Bank.
 
The second axis is the mysterious emergence of all kinds of do-gooders, cloaked as NGO's. While there is no disputing that the issues they raise are pertinent and vital to the health of Macedonia in the long-term, the question of their timing remains. These NGO's have, for instance, suddenly become unusually interested in the dissemination of political opposition views, by purchasing their newspapers regularly and in bulk. One NGO has published a massive corruption report, and another has recently embarked on massive campaigns of human rights education. Other NGO's and academics are suddenly very interested in the distribution of wealth and taxes among the Albanians.
 
The third axis is micromanagement of political processes in Macedonia, and of economic processes with political implications. For instance, the West got involved in all the important negotiations held between all of Macedonia's political parties. Western advisors, strategically placed in Macedonian ministries and other state agencies, have been forwarding classified Macedonian material to American intelligence agencies. One IMF-appointed advisor in the Ministry of Finance refused to collaborate with this program, and has been fired.
 
CD: Was she an American?
 
SV: Yes, she was an American.
 
I should add that the intelligence passed on includes top-secret military information about troop positions, armaments and operational plans. This intelligence has mysteriously been turning up in meetings in Washington between Macedonia and the Americans. This micromanagement is nothing other than classic espionage and intervention in the political process.
 
The fourth axis.
 
CD: Wow! Four?
 
SV: Well, there are many; I am mentioning only a few. Fourth is pressuring the government in the international media, and shaping world opinion through it.
 
For instance, we find disparaging articles especially about the prime minister and the minister of the interior appearing simultaneously in major American news outlets, such as the New York Times, in what appears to be an orchestrated campaign.
 
The fifth axis is the application of indirect pressure on Macedonia, through strategic allies such as Ukraine, financial allies such as the Netherlands, would-be allies such as Israel, and potential enemies, such as the Albanians. Now we are seeing a pattern of reactions by both the Albanian political establishment and paramilitary formations, which mysteriously tend to correspond with Western agendas.
 
And so, the same group is described as terrorists, and then as freedom fighters, within the space of a few months. Former MPRI personnel train the NLA on one occasion, and deny responsibility on another. NATO helicopters make enigmatic cargo drops in NLA-controlled territory. Clearly there is some kind of subtle coordination, at least implicit, between the wishes of the parties.
 
Inevitably, this has engendered a siege mentality and paranoia in the incumbent government not surprising, since this is the land of conspiracy theories.
 
On the real role of the OSCE.
 
CD: The OSCE is providing monitors to ensure fair and non-violent elections. Yet evidence from the past attests to willful disregard for violations if the violator is America's favorite.
 
SV: First of all, the OSCE is not an impartial body. In 1996-98 it had a mandate in Kosovo. Although both Serbs and Albanians were committing atrocities, the OSCE has never recorded a single incident incriminating any Albanian yet hastened to file reports of Serb massacres.
 
CD: Are you referring to Racak?
 
SV: Especially Racak.
 
CD: Given the West's apparent distaste for the ruling party, VMRO-DPMNE, how do you think the monitors will operate on the 15th of September?
 
SV: If VMRO wins, the OSCE will report gross violations, fraud and violence and maybe some of these will be true. However, if SDSM wins, the OSCE will provide its stamp of approval, declare everything kosher, and not report a singe incident.
 
The OSCE contributed mightily to the eruption of the Kosovo crisis. I am very afraid that it might contribute mightily to the re-eruption of violence in Macedonia. If they take sides, it might provoke Albanian claims for leverage and so render them the swing vote.
 
On the obstruction from the IMF: insider testimony.
 
CD: You claim that the IMF is deliberately stalling on giving funds to Macedonia, though the country has fulfilled its requirements, and that this obstruction is meant to influence the elections. How so?
 
SV: First of all, the IMF is not coordinated with the State Department it takes its orders from the State Department. In the IMF, only one country has a veto power the US. America provides 25-30 percent of the IMF's budget.
 
It is the long arm of US policy. Of course, I would find it very difficult to imagine some night-time meeting when the US says, "OK, you go and sabotage the elections for us." But subtly, the messages go back and forth.
 
Negotiators are told to be as stern as possible, for example.
 
I was involved very intimately with the latest round of IMF negotiations in Skopje. They came here with a clear plan to not conclude an arrangement this was clear from the beginning. Their decision was allegedly based on two things: TAT (the failed bank) and the raises we gave state workers.
 
What the IMF and the ICG corruption report didn't say is that the government offered to retract the TAT arrangement for compensating shareholders. This compensation plan had been their major objection.
 
I spoke about this with Prime Minister Georgievski and Finance Minister Gruevski. They gave me the green light to make concessions. I offered to the IMF to rewrite and amend the law, to retract the compensation agreement and so satisfy their demands. And you know what? They refused immediately.
 
CD: Immediately?
 
SV: Immediately! And they gave no reason why.
 
About 10 days after this, on one bright Monday morning, we compared our deficit spreadsheets with theirs. They were based on the December 2001 figures we had agreed on. On that day, we came to the point where our numbers converged; the IMF would have no choice but to conclude an agreement. Yet after stipulating a deficit target of 2.4 percent, they changed their demand, and stated that we must adhere to a deficit of 1.7 percent. They simply negotiated in bad faith when they saw that they were cornered and an arrangement was imminent, they changed the rules.
 
I can say that I have 20 years of experience negotiating with the IMF, on behalf of 6 different countries, and I have never seen anything like this.
Immediately after we failed to reach a standby agreement, the World Bank postponed the disbursement of funds based on its two agreements with Macedonia - because we had failed to reach a standby arrangement with the IMF. This was simply a breach of contract.
 
And then the donors called one by one and backed out, citing our failure to reach an agreement with the IMF. They would not give us any of the pledged money, except for what was allocated to the implementation of the Framework Agreement. Coincidentally enough, most of this money is earmarked for Albanian projects. Why this discrimination?
 
CD: Are there any other examples of economic coercion you have encountered here?
 
SV: Many nations, but chiefly the US, often cross the line between aiding and promoting their commercial interests, and brute intervention in tendering and public procurement processes. Not just once or twice did the previous US ambassador, Mike Einik, do his damndest to influence the outcome of public tenders. This involved rampant arm-twisting, and he even rumored to have threatened the prime minister a couple of times. In fact, he called me once and said, "make sure that our (American) friend gets this tender." I replied, "Mr. Ambassador, I'm not the person to talk to about that, and even if I was I would not, especially after this phone call." Einik replied, "it would be better for all involved if you do it."
 
On the ICG's strategy of intervention.
 
CD: The ICG corruption report acknowledges (on p. 4) that some may suspect it of election meddling, because of its timely release, but denies the charge. What is your opinion?
 
SV: The report touches on a very important problem. In this sense, Edward Joseph has done a service to Macedonia, and for this I commend him. But I reject his claim that the report was not intended to affect the elections. I know it was and I use the word "know" judiciously.
 
Secondly, I don't think that the international community is nearly as worried about corruption as he claims. But I do think that corruption is a superb weapon for influencing election results. Yes, VMRO-DPMNE has been corrupt but what is the other option? SDSM has been at least as corrupt.
 
Macedonian political life is characterized by blatant nepotism and cronyism.
 
There is unfortunately no difference between any of the parties. The whole political class is malignant and cancerous. To single out a certain party by arbitrarily selecting a 4 year period, in order to obtain certain results, discredits the ICG and Mr. Joseph, despite their good contribution to the debate.
 
CD: Joseph's stated rationale is that the report's timely release would insure that the issue be discussed by all parties. Even if we give him the benefit of the doubt regarding this motive, is 30 days enough time for the parties to incorporate it?
 
SV: Had the report been published in June, or better still in March, I think Edward Joseph would have deserved a medal. By releasing it now, he and his organization are just meddling. The timing of this publication transforms Joseph and the ICG into a meddlesome outfit, in hoc with other motives, and utterly discredits him in my eyes and the eyes of many others.
 
I want to say for balance that Joseph did raise the subject in March, and collaborated with Transparency International in public debates, in which he has posed serious questions to major decision-makers like the prime minister. Yet it is one thing to be one voice among many, and another to publish an internationally recognized report with enormous resonance.
 
CD: So what was their other option? What could the ICG have done differently?
 
SV: There are two ways to go about it. The first is to release a patronizing report, telling the Macedonians what is wrong with them, their politics and society, and then to dictate a series of prescriptive measures warning that consequences will follow if these measures aren't met. This I find illegitimate, because the ICG's authority does not emanate from any legal structure or electoral process it's simply not democratic.
 
The second way could have been for the ICG to open a national dialogue, without acting like it knew all the facts in advance. It could have then summarized this grassroots dialogue, and the result would have been received a hundred times better than it was.
 
Do Macedonia's examiners set a good example?
 
CD: So, the problem is with the high moral ground the ICG took?
 
SV: The ICG relies too much on the international community's example. As a corrective and regulatory force, there are two problems with this. First, the European Commission itself has been consistently implicated in major corruption scandals. In fact the whole commission resigned in 1998, when all of them were implicated. There is an ongoing investigation of the EC's Albania mission, and a new investigation of the Kosovo mission. There is rampant EC corruption in Bulgaria.
 
The EU is not a disinterested party. It has its own agenda, motives and preferences. It is clearly not an objective arbitrator. Edward Joseph is fully aware of these scandals. But his view is that at least the West does something about it, while in Macedonia there is no action. It is a pertinent point but not a relevant one you can't have corrupt people regulating other corrupt people!
 
CD: Well put. They are aware, yet continue to bully. How much does this attitude affect Macedonian public opinion toward the West?
 
SV: The West has contributed to this (bad image), by being extremely insensitive culturally and historically. Unfortunately, the first efforts at ethnic reconciliation, building a civil society, and enhancing institutions and reform were carried out by Americans. It left a bitter taste. Americans have a way of prescribing: "everything you've done is idiotic or inefficient," they usually say.
 
"But here's the prescription just follow it and all will be fine." They then imply that if you don't want to follow it, you're backwards or retarded. This is a patronizing attitude which leaves very little opportunity for self-development.
The relationship between Macedonia and the international community is damaged beyond repair. No matter who is in power, the people are disenchanted, disillusioned and extremely suspicious it will be very difficult to re-establish trust. With money and bullying you can achieve a lot, but what the West fails to realize is that this is reversible. Sure, you can force other countries into strict reforms and constitutional change but then you have to continually be there to make sure they don't go back. The West must realize that what is achieved instead through inner insight and conviction is irreversible.
 
On the destruction of state sovereignty, and the limits of intervention.
 
CD: On a similar topic, why do international organizations think they have the right to influence a foreign election?
 
SV: International law has undergone a major revision since the beginning of the 1980's. Until then, the doctrine of sovereignty was very important. Starting in the 80's international law was transformed mainly by the Americans, who are, ironically, now trying to stem the tide.
 
In the 90's, the doctrine of sovereignty was replaced by that of humanitarian intervention. In other words, "you as a sovereign state have the right to do whatever you want, as long as you do not impinge on certain basic human rights." As an interventionist, Edward Joseph is right according to this current interpretation of international law. However, even if one follows this doctrine, it does not apply to violations of civil rights. It does not apply to violation of civil rights, or corruption, or bad governance in general.
 
What the NGO's are doing now is not grounded in any tenet of international law. They are trying to expand this limited sovereignty doctrine "if we can intervene in a case of genocide, we can also intervene to protect the environment, fight corruption, etc."
 
CD: So this is becoming a trend?
 
SV: The problem is that these NGO's are not elected, and are not affiliated with any international political institution. They have no mandate and no accountability, are self-empowered, and are, basically, the least democratic option possible. The NGO's are dictatorial in nature; they and only they make pronouncements, without being subject to any democratic process. The ICG is a law unto itself.
 
And this is where a very thin line between social responsibility and authoritative behavior is crossed. What if some Wahabi NGO from Saudi Arabia sprung up tomorrow, and decided to propagate Islamic values throughout the world? What authority should decide which cultural values are superior to others? Why should an NGO that propagates Islamic values be lesser than something like the ICG, which represents a very thin slice of Western liberal values?
However, this won't last. There will come a backlash. These NGO's are breaking the very thin ice on which they are walking, and they will drown I am sure of that.

CRIME-COUNCIL-MEETING.
 
BTA
 
President Purvanov Praises Recent Police, Interior Ministry Action against Crime Syndicates, Calls Them "Impressive"
 
Sofia, August 27 (BTA) - President Georgi Purvanov praised the recent actions of the Interior Ministry and police against organized crime, and called them "impressive". He said that in his opening speech at the first meeting of a Crime Control Coordination Council Tuesday.
 
"It must be clear than crime cannot be beaten by one ministry only but only with the joint efforts of the State and all its institutions," said the President. "The State must pool all its resources against organized crime and in defence of people's life, health and property. We must shrink the economic territory of crime syndicates and especially of the illegal drugs business, which has been pointed to by experts as the main source of income for organized crime."
 
President Purvanov spoke of a pressing need of changes in the criminal procedure and in the Code of Criminal procedure. According to him, there is a general understanding that the main problem is the absence of an efficient criminal procedure. "The solution has two components: stepping up the criminal procedure and limiting the possibilities for returning cases for further investigation by prosecutors to investigators and by the law courts to the pre-court authorities."
 
According to the head of state, it is important to streamline the procedure for remanding persons in custody while simplifying court control and safeguarding human rights during arrest. This is just one of many measures and changes in the legislation that need to be made according to the President.
 
Attending the meeting of the Crime Control Coordination Council were Prosecutor General Nikola Filchev, the President of the Supreme Administrative Court Vladislav Slavov, Deputy Justice Minister Sevdalin Bozhikov, Interior Ministry chief secretary Boiko Borissov, the acting director of the National Investigative Service Roumen Georgiev, and representatives of the parliamentary forces, including the ruling Simeon II National Movement, the Union of Democratic Forces, Coalition for Bulgaria and the Movement for Rights and Freedoms.
 
The idea for the establishment of the Crime Control Coordination Council as an advisory body with the President was announced at an August 21 meeting of the President with the Interior Minister Georgi Petkanov, Interior Ministry chief secretary Borissov and Prosecutor General Filchev. After the meeting the Presidential Press Secretariat said that the participants had agreed on the need to institutionalize cooperation among the state bodies in fighting crime.
 
CRIME CONTROL-MEETING AT THE PRESIDENCY.
 
BTA
 
Council on Crime Control Coordination with President Holds First Meeting.
 
Sofia, August 27 (BTA) - Crime cannot be brought under control by a ministry alone but by the joined efforts of the State and all its institutions, President Georgi Purvanov said on Tuesday, addressing the participants in the first meeting of the Council on Crime Control Coordination he called by proposal of the prosecuting authorities and the Interior Ministry.
 
In Purvanov's words, the economic territory of organized crime must be reduced and that of the narco business in particular since the latter is the basic financial source of organized crime, according to specialists.
 
Purvanov said that urgent changes in this country's legislation, including the Penal Code and the Code of Criminal procedure, should be made as early as this autumn. In his view, the process of criminal proceedings should be accelerated and the judiciary should be relieved from cases of lesser public importance. This can be done by shortening the time allocated for conducting a preliminary enquiry or investigation and for the judicial process by limiting the possibilities to return cases for further investigation from the prosecution to the investigation or from the law courts to the authorities in charge of pre-trial proceedings, and by expanding the scope of judicial bargaining.
 
There is also a potential in rationalizing the procedure involved in the detainment of persons by simplifying the judicial control over the application of the "remand in custody" measure and observing the interests of the public and the individual in accordance with the European Convention on Human Rights, Purvanov said.
 
Discussing the criminal law, Purvanov observed that the experts recommend to rationalize the system of punishment by making the severity of the punishment proportional to the gravity of the offence or crime. In his opinion, it is worth paying attention to the idea of adopting a law on the confiscation of property acquired through illicit activities or of unproven origin.
 
Attending the meeting of the Council on Crime Control Coordination were Roumen Nenkov, Vide President of the Supreme Court of Cassation; Prosecutor General Nikola Filchev; Vladislav Slavov, President of the Supreme Administrative Court; Deputy Interior Minister Roumen Stoilov; Deputy Justice Minister Sevdalin Bozhikov; Roumen Georgiev, acting director of the National Investigation Service; Gen. Boiko Borissov, Chief Secretary of the Interior Ministry; Nadezhda Mihailova, Floor Leader of the United Democratic Forces (UtdDF); and the representatives of the parliamentary groups Roumyana Georgieva of the Simeon II National Movement (SNM), Mladen Chervenyakov of Coalition for Bulgaria (CfB), and Ahmed Yussein of the Movement for Rights and Freedoms (MRF).
 
"The government representatives set forth their visions about the fight against crime, and at the next meetings everyone will come up with their argumentated proposals for making that fight efficient," Yussein of MRF told journalists after the meeting.
 
"No specific proposals were formed, we heard the opinions of representatives of the judiciary and the political forces, and I believe that the basic thing we need in Bulgaria is synchronization and coordination among the institutions which, as today's meeting confirmed, are actually missing," Mihailova of the opposition UtdDF said. She expressed her satisfaction that the judiciary had been represented at the highest level, saying she wondered that the other parliamentary groups and the executive had been represented at a lower level.
 
Mihailova called into question the legitimacy and the future of the Council, saying that according to Article 105 of the Constitution, it is the executive which is called to combat crime. "Furthermore, any specific legislative changes, including possible constitutional amendments, must be debated in the National Assembly," she said.
 
"The major topic of the discussion at the Council on Crime Control Coordination were the legislative measures," Chervenyakov of CfB said.
 
According to him, none of the participants was against the idea of legislative changes. The Socialists believe that it is necessary to develop a comprehensive concept of the reform in the legislation concerning crime.
 
"The position of the Bulgarian Socialist Party (BSP, in Coalition for Bulgaria) is that the Council on crime Control Coordination should be an expert one," Chervenyakov said.The BSP proposes four major groups of measures which the Council should discuss. It is necessary to make a comprehensive criminological analysis of the state, structure and dynamic of crime in the past 12 years, along with a detailed analysis of organized crime, according to the Socialists. In their view, Parliament should hear what the Justice Minister, the Interior Minister and the Prosecutor General have to say about the problem of
countering crime. The question of building an integrated information system for combating crime is still open, Chervenyakov observed.
 
New Disappointments Looming after Prague Summit.
 
Standartnews
Assoc. Prof. Tatiana Bouroudzhieva, Political Analyst
 
Politicians are preparing for local vote but it may happen that we are in for early general election.
 
This fall preparations will start for the local elections to be held in October 2003. This, however, brings forth one crucial question - could it happen that they will coincide with the early general elections. The debate about "pros" and "cons" most probably will start in winter, after the summit in Prague and the eventual invitation (if any) to join NATO. Till then the political parties will be living in their ivory towers. The NMS in the power tower, BSP and MRF - in a tower of politics, while the UDF will guard the perimeter of media appearances. Judicial power will fight for its right to remain unapproachable and the President will try to keep his central position in the life of the nation. No one will take interest in the real problems of the ordinary people. The people themselves are already well aware that politicians are indifferent to their problems. 'Civil society' in Bulgaria is a notion devoid of any meaning. And, if in 2001 the vote of the Bulgarians showed that they don't need the existing political system, now they may surprise the politicians again. They may clearly show to the power-vested that they are not welcome any more. In this sense nothing will be able to dispel the new disappointment. This time in the "good King".
 
BULGARIA-GREECE-INFRASTRUCTURE.
 
BTA
 
Sofia, August 27 (BTA) - According to Bulgarian Foreign Minister Solomon Passy, the time for signing the contract for the Bourgas-Alexa oil pipeline has not come yet, but the sooner it is signed, the better. Passy hopes that the construction of the pipeline will be one of the topics discussed at the forthcoming meeting of President Georgi Purvanov and his Russian counterpart Vladimir Putin due to be held in Moscow in mid-September.
 
This is what Passy told journalists on Tuesday after his conference with Greek deputy Foreign Minister Andreas Loverdos. Among other things, he and Loverdos considered the oil pipeline project. According to Loverdos, the construction of the pipeline is of vital importance for the citizens of Greece.
 
Taking a question, Passy said that work on the projects for constructing three new checkpoints on the Bulgarian-Greek border was going on, and that the Gotse Delchev checkpoint project had reached a very advanced stage.
 
According to Loverdos, the first checkpoint will be ready before the beginning of the Olympics in Athens in 2004.
 
On Wednesday Bulgaria and Greece are expected to sign an agreement on a five-year programme for cooperation in development. Greece will provide 54.29 million euros for the implementation of projects in Bulgaria.
 
BULGARIA-TURKEY-SUSTAINABLE DEVELOPMENT-SUMMIT.
 
BTA
 
Sofia, August 27 (BTA) - The Presidents of Bulgaria and Turkey will host a parallel event at the World Summit for Sustainable Development in Johannesburg, said Dafina Gercheva of the UNDP Sofia office. The motto of the event will be "Partnership for Local Action towards Sustainable Municipalities in Central and Eastern Europe".
 
The event will be held September 3 and is being organized by UNDP. Over 300 guests have been invited.
 
The programme includes screening of two films prepared by the UNDP offices in the two countries. The Bulgarian film is about horizontal partnership between municipalities and between stakeholders within a municipality, and about the benefits of such cooperation for society, Gercheva said.
 
She said a good example of cooperation among stakeholders is the Velingrad municipality in Southern Bulgaria, whose business centre has turned into a locomotive force for the local community. An example of partnership at regional level is the twinning of four municipalities in a bid to find working solutions to ongoing problems by introducing sustainable development practices.
 
The film will also tell of the 3-4 most successful pilot projects of the 17 that UNDP launched under the Opportunities 21st Century programme.
 
The focus in the Turkish film is on vertical partnership: between local and central government.
 
The local offices of UNDP will also propose new initiatives for sustainable development in Central and Eastern Europe.
 
"The idea is to recognize what has been achieved and help countries as Bulgaria and Turkey, which are known in the region with their good results, carry on the work," Gercheva said. She explained that the aim is to get the attention of potential donors. Another aim is to provide opportunities for exchange of experience, skills, structures and mechanisms between countries with more experience in this field and inexperienced countries. Bulgaria and Turkey could be an example for countries of the former Soviet Union which are at an early stage, Gercheva said.
 
SUSTAINABLE DEVELOPMENT-JOHANNESBURG-SUMMIT.
 
BTA
 
President Purvanov to Attend World Summit on Sustainable Development in Johannesburg.
 
Sofia, August 27 (BTA) - A Bulgarian delegation headed by President Georgi Purvanov will attend the World Summit on Sustainable Development in Johannesburg, sid the Foreign Ministry Tuesday. The Summit opened August 26 and will continue until September 4.
 
The Bulgarian delegation include Labout Minister Lidia Shouleva, Environment Minister Dolores Arsenova, Agriculture Minister Mehmed Dikme and Deputy Foreign Minister Petko Draganov.
 
Austrians to Contest Bulgartabac Deal.
 
Standartnews
Nevena Mircheva
 
Tobacco Holding will attack the government's favourite company's nomination as buyer of the holding.
 
Tobacco Holding - one of the bidders in the privatization of Bulgartabac, will challenge in court the decision of the Privatization Agency (PA) on the choice of the holding's buyer, employees in the office of the Vienna-registered company, said yesterday. The motives to challenge the deal in court, will be announced officially on the day they submit the appeal. Currently, the legal advisors of Tobacco Holding prepare the papers, which will be ready in a couple of weeks. Metatabac - the company disqualified from the bidding, also informed that it will file a claim in court. Today it will transpire whether the third candidate - Rosbulgartabac, will challenge the PA's decision.
 
Companies Owe Each Other 20 Bln.
 
Standartnews
Stephan Kioutchukov
 
The liabilities jeopardize banks' security, finance expert maintains.
 
The companies' debts have increased up to 18 - 20 billion levs, while only the liabilities to the National Insurance Institute (NII) amount to 700 million levs, to the fisc - 300 - 400 million levs, Financier Joseff Avramov said yesterday. The inter-company indebtedness may hamper the ventures to pay back credits to the banks, Avramov warned. To him, however, the finance institutions in this country are stable enough. A joint report of the International Monetary Fund (IMF) and the World Bank (WB) reads that the banks won't be shaken in terms of finances should crediting increase sharply. This fall 10 million levs will be allotted from the budget on setting up a guarantee fund with the Small and Medium Business Agency, Avramov said further. 250 to 300 million levs should be poured in the fund through itemized loans from the WB and EBRD (European Bank for Reconstruction and Development). Guarantee trust of 300 million levs should be also established for farm producers who aspire for SAPARD projects, Avramov elaborated. If the fixed interest rate (FIR) is changed, then the interests on bank deposits will grow twice, up to 5 - 6 percents, Jossef Avramov prognosticated. The interests on bank credits are likely to reduce, down to 12 percent. The FIR should be fixed in accordance with the interbank interest rate in Frankfurt or London plus 3 to 4 percent. Currently, FIR is specified in line with the profitability of the 3-month state securities. Nationwide system of credit rating of the companies should be established to facilitate loans' allocation, Avramov elaborated. The Bulgarian Chamber of Commerce and Industry is the only institution to set up such a system, but the government should back up credit rating system of the companies, he added.
 
FRANCOPHONIE - BOUTROS-GHALI - VISIT.
 
BTA
 
Head of International Francophonie Organization Expected in Bulgaria.
 
Sofia, August 27 (BTA) - Boutros Boutros-Ghali, Secretary General of the International Francophonie Organization, will start a working two-day visit to Bulgaria Wednesday, August 28, the Foreign Ministry said in a press release Tuesday.
 
Boutros-Ghali will confer with Foreign Minister Solomon Passy. The two are expected to sign an agreement on the functioning of the Francophone Institute of Administration and Management in Sofia.
 
Since Bulgaria became a full member of the International Francophonie Organization in 1993, the country has been working towards becoming a regional centre in Central and Eastern Europe, performing coordinating functions in multilateral cultural, educational, scientific and technological cooperation among francophone nations.
 
The Francophone Institute of Administration and Management in Sofia went into operation in 1996. Its two-year curriculum is taught entirely in French. The Institute enrolls some 100 students from Bulgaria, Macedonia, Romania, Moldova and other countries, the Foreign Ministry said.
 
IRAN - GOVERNMENT - MINISTER - BULGARIA.
 
BTA
 
Iranian Housing and Urban Development Minister Starts Visit to Bulgaria.
 
Sofia, August 27 (BTA) - Iranian Housing and Urban Development Minister Ali Abdol-Alizadeh arrived on an official four-day visit to Bulgaria Tuesday at the invitation of Deputy Prime Minister and Regional Development and Public Works Minister Kostadin Paskalev, the Regional Development Ministry said in a press release.
 
The Iranian guest was welcomed at Sofia Airport by Deputy Regional Development Minister Hassan Hassan. The two expressed hope that the upcoming talks will give a fresh impetus to bilateral relations.
 
The Iranian delegation comprises MPs, heads of Housing Ministry directorates, senior executives of privately-owned companies and representatives of construction associations.
 
The guests toured the Sofialand Entertainment Park, which is currently under construction. They were welcomed there by Executive Director Ventsislav Boyadjiev and senior executives of Glavbolgarstroy. They also visited the recently unveiled Business Park.
 
Business talks between the two delegations are scheduled to begin on Wednesday. Before that, Minister Paskalev will confer with Minister Abdol-Alizadeh. The sides will consider an intergovernmental agreement on long-term cooperation in the construction sector.

Criminals Have No Respect for the State.
 
INTERVIEW Standartnews: Boiko Rashkov

346813a.jpg

Milena Nikolova

Prosecutors must be authorized to break privatization deals, says Boiko Rashkov.

Doctor of Law Boiko Rashkov was born in 1954. He lectures on criminal procedure at the University of National and World Economy and has tens of scientific publications. In 1995 he was appointed as the director of the National Investigation. He is an MP from the Coalition "For Bulgaria" in the 39 National Assembly. Deputy chairman of the Parliamentary Committee on Internal Security and Public Order.

- Mr. Rashkov, do you think that there is a crime boom in Bulgaria?

- Obviously, the situation is getting more complicated. The crimes are becoming more and more daring lately, which shows that the criminals have no respect whatsoever to the state institutions.

- How would you comment the statement that the acting constitution impedes summary legal proceedings.

- I wouldn't agree to that. Currently there is the necessary legal basis for summary proceedings.

- What can you say about the proposal of the Prosecutor General to authorize prosecutors to cancel privatization deals is the procedural infringements are proven?

- I would vote "for" giving the right to the prosecutors to invalidate the deals concluded in violation of the Bulgarian laws. This will put barriers before criminal privatization and plundering of national treasures.

(Abr)

Peacekeepers find a large ammunition cache in Kosovo.
 
AP
 
CAMP BONDSTEEL, Yugoslavia - International peacekeepers and police have found a large ammunition cache in the southeastern part of Kosovo near the border with Macedonia, an official said Tuesday.
 
The ammunition discovered Monday by NATO-led peacekeepers, the U.N. and local police included 838 hand grenades, 430 fuses and some 20 mortars of different calibers.
 
The grenades and mortars, placed in boxes, were hidden underground and inside tree stumps in a wooded hillside close to Korbulic, a remote southeastern village close to the border, said Master Sgt. Thomas Lott, who headed the team that took out the ordnance.
 
"When we arrived at the scene we had five different areas which had ammunition stored in them," said Lott from Moulton, Alabama. "They were covered with dirt."
 
Officials at Camp Bondsteel, the main U.S. military base in Kosovo, displayed the grenades and the mortars at the camp, as forensic experts from the U.N. and local police started the search for fingerprints.
 
Written text in the boxes suggested the ammunition was most likely manufactured in Albania, but no specifics were immediately known, Lott said.
Many weapons looted during the 1997 unrest in Albania are believed to have landed in the hands of ethnic Albanian insurgents fighting in Kosovo and neighboring Macedonia in the recent years.
 
Kosovo is legally part of Yugoslavia, but has been administered by the United Nations and NATO since June 1999, following a 78-day alliance air war that halted the crackdown of Serb forces on independence-seeking ethnic Albanians.
 
If This Man is a War Criminal Where is All the Evidence?
 
The Sunday Mail
by John Laughland
 
As the prosecution's star witness gives testimony, how Milosevic is making fools of Blair and the West.
 
In the great film with Marlene Dietrich and Charles Laughton, the "Witness for the Prosecution" appears in court and gives exactly the opposite testimony from what was expected. You would not know it from our media which passed over the event in silence but the same thing happened at The Hague recently, in the most important war crimes trial since Nuremberg, that of the former Yugoslav president, Slobodan Milosevic. One of the prosecution's star witnesses said precisely the opposite of what he was supposed to say, dealing what seemed like a fatal blow to a prosecution case which was already reeling from several previous blunders.
 
The star witness in question was Rade Markovic, the former head of the Yugoslav secret services. Before he appeared in the witness box, the media universally hailed him as the insider who would finally give the clinching testimony that Milosevic had personally ordered the persecution of the ethnic Albanian population of Kosovo. This is the single issue which NATO uses to justify its otherwise illegal attacks on Yugoslavia: without it, the moral justification for NATO's war in 1999 completely disappears.
 
The urge to hear Markovic's testimony was all the greater because the prosecution's last "star witness" had been a severe embarrassment. Ratomir Tanic had presented himself as another "insider", and had claimed that he had actually been present when Milosevic gave the genocidal order. Under cross-examination, however, Tanic was shown to be an agent of the secret services of various Western countries, and to be so unfamiliar with the corridors of power that he could not even say what floor in the presidential palace Milosevic's office had been on.
 
The embarrassment over Tanic was equalled only by that caused when an Albanian witness produced a list of names, which he alleged was of Albanians whom the Serb police were to execute. On closer examination, the list turned out to be a fake: the spelling mistakes were so numerous that only an Albanian could have written them.
 
Enter, therefore, Radomir Markovic, the secret police chief who knew more about what was going on in Yugoslavia than anyone else. But, in painstakingly detailed testimony lasting nearly three hours, he told the court that Milosevic had never ordered the expulsion of the Albanian population of Kosovo; that the former president had repeatedly issued instructions to the police and the army to respect the laws of war, and to protect the civilian population, even if it meant compromising the battle against Albanian terrorists; and that the mass exodus of Albanians during the Nato bombing was caused not by Serb forces but instead by the Kosovo Liberation Army itself, which needed a constant flow of refugees to maintain the support of Western public opinion for the Nato campaign.
 
"Did you ever get any kind of report," Milosevic asked him,"or have you ever heard of an order, to expel Albanians from Kosovo?" "No, I never heard of such an order. Nobody ever ordered for Albanians from Kosovo to be expelled," Markovic replied. "Did you receive any information about any plan, suggestion or de facto influence that Albanians were to be expelled?" asked Milosevic. Reply: "No, I never heard of such a suggestion to expel Albanians from Kosovo." "At the meetings you attended, is it true that completely the opposite is said, namely that we always insisted that civilians be protected, and that they not be hurt in the process of anti-terrorist operations?" "Certainly," said the witness. "The task was not only to protect Serbs but also Albanian civilians." "Is it not true that we tried to persuade the flow of refugees to stay at home, and that the army and police would protect them?" the former president asked. "Yes, that was the instruction and those were the assignments." "Do you know that the Kosovo Liberation Army told people to leave, and to stage an exodus?" "Yes," said Markovic. "I am aware of that."
 
The media greeted this stunning evidence with complete silence. Indeed, it even failed to report the most extraordinary assertion of all made by Markovic, namely that he had effectively been tortured by the new pro-Western authorities in Belgrade, in order to make him testify against Milosevic.
 
Markovic claimed that the new Minister of the Interior in the Western-backed government in Belgrade had taken him out to dinner and offered him release from prison where he has been incarcerated for over a year now and a new identity in a country of his choice, if only he would agree to testify against his former boss at The Hague. As Slobodan Milosevic tried to point out in his cross-examination until he was interrupted by the judge, that is it clearly falls under the terms of the United Nations' definition of "torture" to imprison someone in order to force them to co-operate. Markovic also alleged that the Tribunal's own prosecutors had falsified and embellished the written statement he had given them.
 
These were amazing allegations. With them, the whole prosecution case seemed to crumble. But even more stunning was the reaction of the British presiding judge, Sir Richard May. A judge is supposed to be a neutral arbiter between the prosecution and the defence: May, by contrast, has distinguished himself throughout the trial by his belligerence towards Milosevic, who is conducting his own defence, and in particular for his habit of interrupting Milosevic, even sometimes switching off his microphone, whenever the former Yugoslav leader's cross-examination shows up inconsistencies in a witness' evidence.
 
As May listened to Markovic, he tried desperately to stop him making these allegations against the Prosecutors and their allies in Belgrade. When Markovic began to describe his ordeal at the hands of the new Yugoslav government, May silenced him, saying to Milosevic, "This does not appear to have relevance to the evidence which the witness has given here. We are not going to litigate here with what happened to him (i.e. Markovic) in Yugoslavia when he was arrested." And when Milosevic insisted that the Tribunal's own investigators had falsified Markovic's written evidence, May interrupted him tartly by saying, "That is not a comment which it is proper for you to make." In Judge May's book, therefore, it is irrelevant if the prosecution is lying, or if it is an accomplice to torture.
 
Judge Richard May is no stranger to political activity, like the prosecutor, Geoffrey Nice, he is a committed Socialist: he stood as a Labour Party candidate for Finchley in the general election in 1979, where his Conservative opponent was none other than Margaret Thatcher. As a judge on the Midlands Circuit in the 1980s, he would dine out on this story, for which he enjoyed the admiration of his left-wing colleagues. But even this happy admission of political bias could not have prepared anyone for the way he would react to Markovic's shocking claims.
 
It gets worse. The Tribunal's priorities now seem so distorted that they see Milosevic's "political crime" of resisting NATO as worse than the crimes of physically torturing people to death. On 31st July, the Tribunal ordered the release from custody of a man called Milojica Kos. Kos had served four years of a six-year sentence for murder, torture and persecution as a guard at the notorious Omarska camp in Bosnia, which was compared at the time to a Nazi concentration camp. But the president of the Tribunal, Claude Jorda, said that Kos would be released early because of "his wish to reintegrate himself into society, his determination not to re-offend, his irreproachable conduct in detention, his attachment to his family, and the possibility of exercising a profession again." No such tolerance will be shown to Milosevic.
 
These events have provided spectacular proof of what critics have always said that the International Criminal Tribunal is a political kangaroo court in the hands of the West. But political manipulation can work both ways. Tony Blair has been a vigorous supporter of a clone of the Yugoslav tribunal, the new International Criminal Court. But why shouldn't the new court be as politicised as the present one? Plenty of anti-Western countries, like Iran, Sudan and Zimbabwe, have signed the new ICC treaty. If they decided to prosecute Tony Blair for attacking Iraq, say, there is little to stop them especially since the ICC defines "aggression" as a war crime. On his next trip abroad, therefore, Mr. Blair might be wise to pack his toothbrush.

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