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President Georgi Purvanov has called a meeting of the Consultative Council on National Security to discuss the fulfilment of government commitments related to the country's Euro-Atlantic integration. Pressphoto BTA photo: Tihomir Penov
Minors from 'Osogovo' blocked the office building of the Ministry of Economy and handed in to Vice PM Nikolay Vassilev two fried slices of bread wrapped in toilet paper. Taste it and you will see what we are eating. Sorry that we have no money for napkins, said the miners, who haven't been paid their wages for 7 months. Photo Stoyan Nenov
SITUATION IN CRISIS REGIONS.
MIA
Shootings from several types of infantry weapons were heard overnight in Tetovo area. The shots ceased in the morning hours, MIA's correspondent reports.
The police department informed that the gunfire was not aimed towards specific targets.
Bursts of fire were registered from the Juvenile Reformatory School, Tetovo Teke, SEE University, Residential Complex 82, Zicara, Kupenik, Gorna Carsija, Ciglana, Vonvardarska and Sipad settlements as well as the military barracks "Kuzman Josifovski Pitu."
According to police and army sources, shootings were also registered from Mala Recica, Lisec, Gajre, Selce, Vejce, Zerovjane, Slatino, Tearce, Prsovce, Trebos, Palatica, Odri, Dobroste, and Rasadiste locality.
Twenty-eight violations of the public peace and order were registered overnight in Kumanovo - Lipkovo region, MIA's correspondent reports.
According to police sources, the shootings came from Slupcane, Vaksince, Matejce, Ropaljce, Opae and Nikustak villages and were not targeted.
PM GEORGIEVSKI LAID CORNERSTONE FOR CONSTRUCTION OF REGIONAL WATER SUPPLY SYSTEM.
MIA

Macedonian Prime Minister Ljubco Georgievski laid a cornerstone Wednesday for construction of a water supply system for the settlements Gazi Baba-Petrovec-Ilinden and the villages Skopski Pole, Jurumleri, Kolonija, Idrizovo, Drma, Mralino, Petrovec, R'zenicino and Ognenci.
"I regret that today, at the beginning of the 21st century, we still have settlements, located only 10 kilometers from Skopje, without a water supply system," Georgievski said.
The water supply project was part of the Macedonian Government plan for improving of living conditions of villagers, he said, adding that an amount of 1,1 million for the construction is provided by the "Telecom" sale.
Georgievski, accompanied by Ministers of Finance - Nikola Gruevski, Cuture - Ganka Samoilovska-Cvetanova, Transport and Communications - Ljupco Balkovski, Environment and Urban Planning - Marjan Dodevski and Internal Affairs - Ljube Boskovski, attended Wednesday in Stip a formal setting into work of 400kW long-distance power line Dubrovo-Stip.
The officials also attended a ceremony for handing over of 34 property denationalization certificates to the owners from Stip, Radovis, Strumica, Vinica, Probistip and Sveti Nikole.
"The Electric Power Supply Company (ESM) has invested over US $ 6 million in this long-distance line, aimed to provide efficient power supply and to cut the energy transmitting losses to minimum. This line marks a start of the project for connecting of the electric power system of Macedonia with those of the neighboring countries. " Georgievski said.
ESM Director Lambe Arnaudov also delivered a speech at the ceremony.
Answering to journalist questions, Georgievski said that his party VMRO-DPMNE defined its lists of candidates for the parliamentary elections.
Georgievski said he would be the list carrier at the election district no. 5 - the Ohrid-Bitola region; Gruevski -at the election district no.1; Gjorcev at no.4.
These candidates would bring victory to VMRO-DPMNE at the forthcoming elections, Georgievski said.
Georgievski explained that he could not attend a meeting of SEE Heads of Government in Salzburg, saying that those meetings were useful, but "more important developments are taking place in Macedonia now, above all - the parliamentary elections."
Today, Georgievski and Finance Minister Nikola Gruevski attended Wednesday a formal handing over of property denationalization certificates in Stip to 34 families from Stip, Vinica, Probistip, Strumica and Radovis.
According to the Finance Ministry press release, a total of 955,841 sq.m. of cultivated land was returned to the former owners from Stip, Vinica and Probistip, and a total amount of Denar 478,612 is returned as securities.
At today's ceremony in Stip, a total of 153,996 sq.m. of cultivated land was also returned to 12 families from Strumica and Radovis. Two certificates referred to returning of 258 sq.m. of construction sites and 147 sq.m. of business premises.
This is another example that the activities of the Macedonian Government and the Finance Ministry, intensified after changing of the Law on Denationalization, are giving results, the press release reads.
PRESIDENT TRAJKOVSKI'S STATEMENT.
MIA
Assessment on extending the NATO mission mandate to Macedonia should be done after the parliamentary elections, President Boris Trajkovski said Wednesday.
The decision also required an assessment of the political and security situation in the country after the elections, which is part of the peace process that began last year, as well as consultation with the new government, Trajkovski said.
Asked about US President George Bush letter on Macedonia's membership into NATO, Trajkovski said that the US Administration reconfirmed its "open door" policy.
"It is a fact that NATO will hold to that policy in regard with admission of new members. However, it is well known that many standards should be meet for acquiring full-fledged NATO membership. In his letter, Bush expresses his expectation that the citizens of Macedonia and the political parties will do their best for the elections to be carried out in fair and democratic atmosphere, as one of the standards for the democratic progress of one country," Trajkovski said.
Asked about the activities on establishing crisis group for negotiations with Greece on the name dispute, Trajkovski said that the negotiation process should be expanded within the United Nations.
"I consider that the Macedonian negotiating team should be joined by people, who took part in the succession process of the former Yugoslavia's property, who are experts of international law and are working as diplomats at the moment." Trajkovski said.
PM GEORGIEVSKI: MACEDONIA IS FOR COOPERATION WITH EU AND NATO.
MIA
Macedonian Prime Minister Ljubcho Georgievski says that the Macedonian Government has nothing against NATO troops to remain in the country, emphasizing that there is an ambition the European forces to replace the Alliance's one.
"French President Jacque Chirac and German Chancellor Gerhard Schroeder made a statement Tuesday that they were ready to take over the establishment of the European forces. Macedonia has nothing against the proposal the European forces to take over NATO's mission, if such agreement is made," Georgievski said.
He did not comment the attacks by the opposition, which blamed the authorities for provoking the security tensions, assessing these statements as ungrounded.
"We obtained official information and even the Macedonian Ambassador in Brussels was notified about the establishment of a new terrorist organization 'Ilirida.' The name of the former leader of the Party for Democratic Prosperity Nevzat Halili is also mentioned in that respect. If we do not want to face the reality that the Albanian extremism has not given up from its territorial ambitions, then our 'immunity' to defend will decline," Georgievski said.
Macedonian Prime Minister said that the Interior Ministry did not receive any information about the establishment of such organization, but there were some information pointing out to various movements on the ground.
"The estimations imply that there are around 200 persons in the new organization," Georgievski said.
To a question whether this organization is active on the ground, Georgievski pointed out to the constant attacks on the Macedonian watchtowers. "Many things will depend on the developments in Kosovo, the elections in South Serbia and the presidential elections in Serbia, which will be held two weeks after the Macedonian ones. These arguments point out that the ideas for winning territories and establishing 'Great Albania' are not over yet," Georgievski said.
BODY FOR STRUCTURAL REFORMS IN SESSION.
MIA
In accordance with yesterday's decision of the Macedonian Government, the Body for Structural Reforms agreed at a session Wednesday to continue the negotiations with the Slovenian company, interested in buying of the publishing house "Nova Makedonija".
"Nova Makedonija" was worth about 14 million, i.e. 66,76 of shares are state-owned, while the rest belongs to the employees, Minister of Economy Besnik Fetai said after the session.
According to the audit report, the company debts are at 16,7 million. The company's report says that debts, without the interest rates, are at 10,854 million.
The Slovenian company offered 2,3 million for a buy-out and 6 million as an investment in the next six years, Fetai said. It also suggested cutting the number of employees for 250, out of a total of 1,421, which was not accepted by the Body for Structural Reforms.
The consulting company, in charge of 15 loss-making companies, would be also engaged in solving the status of the companies "Hemteks" and "Frinko", Fetai said. He expected that the status of those companies would be determined until the end of September at latest.
At today's session, the Body also decided to open new tenders for the companies "Zletovo Rudnici", "Godel", "Toranica", "Silika", "Goteks", MZT "FAM", Tehnika "Ruen" and "Mikron", and ZIK "Kocansko Pole" at the end of August.
The Body decided to pay an advance of Denar 6,500, i.e. a total of Denar 13 million, as a severance pay to employees of the company "Astibo", Denar 12 million for the company "Zletovo Rudnici", Denar 30 million for the company "SASA" and Denar 20 million for the company "Ruen".
MINISTER NIKOLA GRUEVSKI ON FINANCE MINISTRY' ACTIVITIES.
MIA
"The fiscalization was carried out in every state apart from Albania and FR Yugoslavia. The process that has positive results everywhere must be implemented in Macedonia. The introduction of fiscal cash registries is an attempt to reduce the gray economy. It is hard to tackle this issue in its essence although it is easy to do it in a declarative way," Macedonian Finance Minister Nikola Gruevski says.
He reminded that the first strike on the gray economy was imposed with the introduction of the value added tax, which resulted into slight reduction of the gray economy.
The second strike was the reduction of the taxes. The Personal Income Tax was reduced to 15 percent, and considering the fact that the profit tax in Macedonia is among the lowest, 4,000 customs tariffs were reduced.
Underlining that with the decline of the taxes, the persons are less motivated to evade them, Minister Gruevski reminded on the other reforms in the tax system. Almost all laws in the tax area were revised in consultation with the world known experts from Europe and USA, including the experts from the IMF and the World Bank.
Fierce campaign against the tax evaders was launched, but with the beginning of the war the attention was focused on something else. However, that period has ended and the Finance Ministry is back on its primary goal. The lowered taxes improved the incomes, and many problems were resolved such as the problem with the eight percent owed to the pensioners and the increase of the salaries in the public administration.
"We are progressing step by step, and we cannot expect a turning point in the economy very fast. We cannot become a state with 5-10 percent of black economy overnight, if we are aware that we had 40-50 percent yesterday.
Lots of work, efforts and sometimes humiliations are necessary. Sometimes the people are in delusion that you want to harm them, and sometimes they are attracted by some political party or the tax evaders and they try to devaluate your personality. But you have to endure. That is the firmness of some politicians. I know that one day the people will understand and will realize that I was right. We do all this in order to have brighter future," Gruevski emphasized.
Reminding that both the salaries of the state administration and the pensions are increased, Gruevski underlined that the Bank for microcrediting would have been opened by now if the Parliament has adopted the law three months ago. That is one of the Ministry's most important projects.
Another significant project for the private sector is the establishing of the special financial institution similar to a credit agency. There are many companies in Macedonia, which products are in demand, but they do not have enough funds to buy raw materials and to produce. Therefore, the Agency's role will be to buy the raw materials for the producer. The agency will charge a commission, but most of the money will go in the producers' funds. After several cycles, the company would be able to obtain its own raw materials and will be able to function properly.
Another important project is the training of the Macedonian managers in the foreign countries. Around 400-500 managers will be sent on state-financed training courses in more advanced country and after two months they will return in Macedonia. Again after two months they will be sent into even more advanced country to get experience. The World Bank has already implemented this project in several countries in Central and East Europe and it has showed exceptional results. The project is very interesting and probably it will be implemented by the end of the year with the support of the World Bank.
"I will definitely remember my beginnings in the Finance Ministry, when I went to Washington on March 15, 2000. The Americans were very crossed, probably because lots of things were promised in the past and nothing has been achieved. Then we presented our program and projects. Our performance was confident and convincing, but we had a great task ahead of us and we succeeded to realize it. It was a great turning point. In 2000 we did a lot and there was an atmosphere for doing such things. But, 2001 has destroyed us. The war has destroyed us, and the economy has regressed.
Now we are going forward, to realize new projects," Minister Gruevski says.
Speaking of the Finance Ministry's activities during the military crisis in Macedonia, when attempts have been made to prevent the disaster in the economy, Gruevski said that it was very risky.
Usually, economic disasters happen during wartime and that was a potential risk for Macedonia. Maximum efforts have been made to avoid high inflation and devaluation, because if that happened then we would have had the same situation from 1992-93 or at least we would have suffered ten times bigger losses than we had.
"I am very happy we succeeded in that. The year 2000 was very interesting for me. We worked a lot and I am happy because the results were satisfying. We also worked in 2001, but the things were falling down, as there was war. We worked to save something," Gruevski underlined.
Macedonian Consulate in Athens Used to Earn Up to $1 Million on Visas.
Vest

Macedonian Consulate in Athens used to earn between $800,000 and $1 Million on visas [annually]. This income could suffice for covering of its expenses, and even of another, smaller embassy, according to Vest's sources in Ministry of Foreign Affairs.
Macedonian Government canceled visa requirement for Greek citizens in May of 1999, as a result of proclaimed "positive energy" towards the southern neighbor of Ljubcho Georgievski's new Government "for changes," [election slogan]. Then-Foreign Minister Aleksandar Dimitrov state for Vest that he could not defend the sustainability of the visa regime with Greece at the time, because Macedonia canceled the visa requirements for all other EU member-countries. Still, according to him, visa regime is in essence a bilateral question, and it's true that Macedonia got nothing in return for its friendly act.
Indeed, a large amount of Greek capital entered Macedonia, and some sources reckon that canceling of visas was part of the deal for privatization of OKTA oil refinery.
Politicians from both countries met quite frequently at that time. Greek Foreign Minister Jorgos Papandreu promised opening new border pass at Markova Noga near Prespa Lake and liberalization of the visa regime. They hinted cross-border traffic with ID cards only, and enhancing of business relations.
The proclaimed excuse for canceling the visa requirements for Greeks was the hardship of Greeks living in the north of that country in obtaining visas from Athens. But, at the same time, Greece denied Macedonia's proposal to open a consulate in Thessalonica.
Instead of the promised niceties, we now got even more humiliating behavior by the Greek Liaison Office employees, while the business relations equal brutal maltreatment on Wednesdays. According to sources in the Ministry of Foreign Affairs, the Greek consul against whom the current protest takes place limited the visas to citizens with diplomatic passport and parliamentary deputies, also.
Prime Minister Ljubcho Georgievski signed the decree for reciprocity on July 9, 2002, which would put visa requirements for countries that have visas for Macedonian citizens. August 1 was the activation date for this decision, but the Government postpone it due to numerous reactions by foreign diplomats and insufficient thoughtfulness.
Sources from the Ministry of Foreign Affairs also claim that upon breaking the news about the new visa decision, the Greek ambassador in Skopje Joanis Ikonomi requested an immediate audience. He complained that the trucks would have to wait a lot longer at the border and Greek businessmen would face many difficulties.
P.R.
MACEDONIAN PARTY LEADER-VISIT.
BTA
Sofia, July 31 (BTA) - The situation in Bulgaria and Macedonia, the two countries' domestic political development and bilateral relations figured high on the agenda of the talks between the leaders of the Bulgarian Socialist Party (BSP), Sergei Stanishev, and of Social-Democratic Alliance of Macedonia (SDSM), Branko Crvenkovski.
Crvenkovski is paying a visit to Sofia at BSP's invitation. He was Macedonian prime minister 1992 to 1998.
BSP has been defending consistently the position that insufficient effort is being made to create a new political climate in order to give a real contents to bilateral ties, said Stanishev emerging from the meeting. In his opinion, the implementation of many infrastructure projects is delayed.
At the meeting the two parties voiced their willingness to do everything within their powers to accelerate the implementation of infrastructure projects. This, according to Stanishev, is in the best interests of both countries and is important in the context of their European integration. "By displaying a capacity to solve together our problems and to come up with joint initiatives, we will show the new image of the Balkans and can help provide financial assistance," said Stanishev.
Sometimes the expression of good will between the two countries is no more than a formal statement, said Crvenkovski. In his opinion Corridor VIII is of strategic importance for both Macedonia and Bulgaria. He voiced his firm belief that the two parties, which command a great influence in their countries, should help the construction of the Corridor.
Stanishev said that the meeting was part of the dialogue between the SDSM and the BSP and that he discussed with Crvenkovski cooperation between the two parties, both of which are members of the Socialist International. He recalled that in late 2000 Crvenkovski paid a visit to Sofia at BSP's invitation, which President Georgi Purvanov returned in August 2001 in his capacity as BSP leader at that time.
Meeting earlier on Wednesday, Bulgarian Foreign Minister Solomon Passy and Crvenkovski discussed the development of contacts between the two countries.
"We talked about the infrastructure projects in the Balkans, Corridor VIII in particular," said Passy, adding that another topic of the talks was the two countries' European and Atlantic integration.
Earlier on Wednesday Crvenkovski met with President Georgi Purvanov and Prime Minister Simeon Saxe-Coburg-Gotha.
MISSILES - INDEPENDENT EXPERT ASSESSMENT.
BTA
CDI-proposed Pyrotechnical Means For Missile Destruction Safe for Eight Out of Eleven Groups of Missile Components, BAS Says.
Sofia, July 31 (BTA) - The pyrotechnical means CDI proposed for the destruction of eight out of the eleven groups of components of the Scud, SS-23 and Frog missiles pose no hazards to humans or the environment, read the conclusions of a team of experts and scholars headed by Bulgarian Academy of Sciences Chairman Academician Ivan Yuhnovski the Defence Ministry made available to BTA. The missiles are planned to be destroyed at the Zmeyovo Test Range near the southern city of Stara Zagora.
In order to ensure the safety of the people and the environment, two of the components of the Scud missiles will definitely be destroyed outside Bulgaria, the press release says.
With one exception, the remaining ten components of the missiles fully meet the arrangements in the Memorandum on Understanding between the Governments of Bulgaria and the Unites States for assistance in the destruction and demilitarization of the missiles and the equipment relating to them and the agreement signed between the Defence Ministry and CDI.
The independent experts say that for one component of the SS-23 missile, the pyrotechnical means of destruction offered by CDI poses a threat for chemical substances emissions exceeding the maximum admissible levels outside the 5-km safety zone.
On their proposal, and acting under express provisions to this end in the agreement with CDI, the Defence Ministry and CDI will consider an option for an alternative method for the destruction of the component which will not be conducted on a test range.
MISSILES - DESTRUCTION - PRESIDENT.
BTA
Missiles Must Be Destroyed Quickly and Safely, President Purvanov Says.
Sofia, July 31 (BTA) - Bulgaria's preparations for NATO membership top the agenda of a meeting of the Consultative Council on National Security called Wednesday by President Georgi Purvanov, who is also Supreme Commander-in-Chief of the Armed Forces.
The need to review the implementation of the Action Plan for NATO Membership, the social readaptation of laid-off army servicemen, the need for additional financial resources for the army reform, and Bulgaria's commitment to destroy its SS-23 and Scud missiles and FROG rockets are the topics of discussion, as listed by Purvanov at the beginning of the meeting.
"A lot has been done to make the structure of the Armed Forces more functional and to reduce the size of the Bulgarian Army. Bulgaria's international partners give high assessment to the army reform, but much more effort is needed before Prague," the President said.
"It is incumbent on us to provide absolutely precise, objective and complete information to citizens concerning the destruction of the missiles. The missile elimination issue must be resolved on time, but safety should be the principal consideration," he said.
The President expressed confidence that the Consultative Council will categorically reaffirm the political will for the destruction of the missiles. He noted that the government institutions and the political forces agree on the need for the destruction. "Bulgaria has to meet its commitments if it wishes to be respected as a partner," he said.
"The role of the civil movement in the country, organized in the context of missile elimination, should not be ignored. It is unacceptable to attribute its emergence to the influence of external factors," the President said. "We cannot let this issue claim the public's attention forever, as the agenda [of society] is rather different."
BULGARIA-QUAKE.
BTA
Earthquake Registered Outside Bulgaria.
Sofia, July 31 (BTA) - An earthquake epicentred some 119 km south-southwest of Sofia was registered at 07:04 hrs. local time on Wednesday, the Civil Defence desk officer told BTA.
The quake measured 4 on the Richter scale and was felt in the area of Sandanski and Petrich (Southwestern Bulgaria).
No deaths or damage were reported. The Civil Defence is conducting a check.
Vassilev on the Offensive for Bulgartabak.
Standartnews
He is openly lobbying for Prince Cyril, claims BSP MP.
Nikolay Vassilev finally took off his mask. He started to press the Privatization Agency into declaring his favorite, consortium of Tobacco Capital Partners and P.O. Box Clar Innis, as the preferred buyer for Bulgartabak. The vice-premier lost control after the Agency released a fax yesterday saying that it is prepared to accept new, more advantageous offers for the holding. Three of the bidders, half of the parliament members and branch experts also set this requirement. A scandal flared up between chief of the Agency Apostol Apostolov and the vice-premier after the latter exerted pressure on the Agency, "Standart learnt. Vassilev is openly lobbying for the company connected with Prince Cyril, revealed BSP deputy Peter Dimitrov.
MPs Fought over Accommodations at the Seaside.
Standartnews
MPs vexed with double booked accommodations at the parliamentary holiday home in Sunny Beach.
At least 8 of the accommodations of MPs were double booked, the administration of the National Assembly warned yesterday. This year, there were general reshuffles in the Social and Domestic Services department and the new employees, being inexperienced, allotted more accommodations than the available ones. The news about the blunder terrified the MPs who already packed their suitcases. The first shift of holiday-makers have to leave for the seaside tomorrow. They will leave their families at the rest home and will get back to work till the end of the session on Saturday. The administration of the rest home of the Council of Ministers in Sunny Beach are feverishly searching for options to provide all the MPs with accommodations.
Stanishev Climbs Buzludzha on Motorbike.
Standartnews
Leader of BSP Sergey Stanishev on a motorbike will climb Mount Buzludzha (the place of the first congress of the Socialist Party - translator's note). The endeavor is dedicated to the 111th anniversary of the party. The rockers' procession will set off for the historic place from the BSP headquarters on 20 Positano St. on August 20. This year more youth parties are planned. A day before the holiday the BSP leadership will discuss the budget deficit with Finance Minister Milen Veltchev. The reds prognosticate that the deficit will double up before end-year if no urgent measures are taken.
In line with your yesterday's release with respect to the Minister of Foreign Affair, I inform you that
The Ministry of Foreign Affairs (and the Minister in particular) never commissioned, or contracted, or paid for, or (God forbid!) ordered the private MBMD polling agency to conduct the public-opinion poll you quoted.
Furthermore, the Minister had no mechanisms, or interests, or intention to ban any publications in the independent press.
With Best Regards:
Eleonora Dimitrova Director of "Infromation and PR" Directorate Ministry of Foreign Affairs
Hristo Fotev Stepped in Immortality.
Standartnews
Yordanka Hristozova
Three Bulgarian presidents said last farewell to the poet.
For more than two hours relatives and admirers of Hristo Fotev bade their last farewell to the poet in the lobby of the National Theatre yesterday. Chief Coordinator of the 'Vuzrazhdane' business club Stoyan Denchev, sculptor Vezhdi Rashidov, actor Yavor Milushev, poet Lyubomir Levchev, actress Vanya Tzvetkova, writer Anton Donchev, showman Toncho Tokmakchiev were among the people who attended the funeral of the poet famous for his most tender lyrics. Three presidents of Bulgaria came to the National Theatre yesterday. Zhelyo Zhelev and his wife Maria, Peter Stoyanov and the present head of the state Georgy Parvanov laid flowers at the coffin of Hristo Fotev. Actor Stephan Danailov delivered a speech. The song 'Nights in Bourgas' performed by Eva and Gogo from 'Tonica' moved all the present people to tears.
DIRTY GAMES.
Standartnews
Bulgartabac and Iceland Connection.
Who will get hold of Mr. X first, Prosecutor General or Finance Minister? This person owes $5.2 million in taxes to the fisc.
Let's recall how the Deutsche Bank bought BalkanPharma. The purchase of Balkanpharma by Deutsche Bank-London was sealed on June 17, 1999.
Literally the next day, on June 18, "the bank" gave up its property and remitted all its stocks to an offshore company registered in Cyprus. The highly reputed bank - or an institution presented under the guise of the bank - in this deal was represented by someone named Redfern, a totally unknown figure. From the Cypriote offshore the stocks were transferred to a company called Pharmaco.
A certain London broker, expert in devious manipulations, released the stocks of pharmaceutical plants of Doupnitsa, Troyan and Razgrad on the stock exchange in Iceland using the name Pharmaco. (Make a wild guess what is the name of this guy and what is he doing now?). Resorting to even craftier tricks, falsified documents and data he manages to pocket 19 dollars million for a starter, selling his stocks in Pharmaco to unwary Iceland investors. Later on he repeated the operation with the remaining stocks at a total profit of 35 million US dollars, with no risk whatsoever and without busying himself with such trivialities as the fate of these three pharmaceutical plants in Bulgaria.
To be continued
BULGARIA - ORTHODOX CHURCH - RIFT.
BTA
Priest's Murder by Another Clergyman Remains in Public Eye Sofia, July 31.
(BTA) - The decade-old rift in the Bulgarian Orthodox Church recently claimed the life of a priest and deepened further as the two rival synods traded accusations.
On the morning of July 22 the public learned of the particularly cruel murder of Stefan Kamberov, 66, in the vicinity of the St Panteleimon Monastery near Dobrinishte, Southwestern Bulgaria. Two persons were arrested as suspects: a priest and a priest's father. The brutal crime is said to be related to a controversy over the administration of the monastery.
Kamberov supported the "alternative" (formally unrecognized) Orthodox synod which was formed in 1992 by defecting priests led by Pimen, who was proclaimed "Patriarch." Metropolitan Inokentii took over as head of the synod after Pimen's death.
Inokentii and his supporters claim that the election of Patriarch Maksim and his Holy Synod was illegal.
One day before the murder, Kamberov went to the St Panteleimon Monastery to declare a hunger strike in protest against the seizure of the place by a group of priests headed by Metropolitan Nathanail, member of Maksim's Synod.
So the controversy over the administration rights to the monastery, which grew particularly bitter during the Easter of 2001, eventually escalated to the point of murder. Similar disputes have erupted in other places as well, and police is very often called to intervene.
The killing of the priest shocked the public. Three days after the tragic incident, the opposition Union of Democratic Forces (which was in power back in 1992) told Parliament it assumes "its share of responsibility" for the Church rift.
The Union urged Maksim and Inokentii to meet as soon as possible and restore the unity of the Orthodox community for the sake of all Christians.
On the following day, a committee based in Bansko, Southwestern Bulgaria, came up with a declaration to National Assembly Chairman Ognyan Gerdjikov, stating that the murder had been instigated by Metropolitan Nathanail and a priest from a nearby village. The committee demanded that the two be barred from Church affairs.
Laity and clergy gathered in front of Maksim's Synod in Sofia the same day to protest the escalation of the conflict.
The public reaction to the incident led the members of the two synods to gather for separate meetings.
Maksim's Synod, which enjoys international support from the other Orthodox Churches, objected to the idea to seek collective responsibility for the murder from the prelates of the Bulgarian Orthodox Church. The Synod stated it does not accept the accusation that Church dignitaries were the "moral instigators" of the crime, an accusation which "mars the prestige of our Holy Church."
The Synod also objected to any intervention from the secular authorities or lay individuals, for this would be "yet another instance of gross interference in the affairs of the self-governed Bulgarian Orthodox Church." Maksim's Synod urged again the defectors to repent and seek reunion.
According to the rival synod, even meetings and talks between members of the two communities are unthinkable after the murder. "Dialogue will be possible only if Metropolitan Nathanail and Patriarch Maksim retreat to a monastery," one of Inokentii's supporters said.
Associate Professor Ivan Zhelev, Director of the Directorate on Religious Faiths with the Council of Ministers, urged the two synods to meet but said he will not intervene. The Government tries to avoid intervening in such matters as it is seen as one of the factors which brought about the rift in the Orthodox Church.
Ten Trains Stop before End-Year.
INTERVIEW Standartnews: Georgi Nikolov

Victoria Serafimova
The only chance for these lines is to give them out for concession, says chief of the railway administration, Georgi Nikolov.
Georgi Nikolov is the director of the Railway Administration agency to the Ministry of Transport and Communications. For many years he has been the director of the Institute of Railway Transport.
Currently the experts of the agency prepare the efficiency analysis of all railways in Bulgaria. All Bulgarian and foreign consultants are unanimous that the subsidiary railway lines which suffer losses have to be closed, explained Georgi Nikolov. They account for at least a half of the entire 1450-km-long railway network in Bulgaria.
- Mr. Nikolov, a week ago it became clear that the Ministry of Transport will propose to the government to close down 700 km of subsidiary railway lines. What has necessitated such a step?
- The reason is that they have lost their function of the main transport means in these regions of the country. Motor vehicles have got the priority, while passenger and freight transportation by railways decreased drastically. However, there are several ways to keep these trains in motion.
- What are they?
- One is to set up a joint venture for their exploitation. The other option is to give them out for concession or give a chance to municipalities to subsidize them.
- Have final decision been taken about the closure of certain railway sectors?
- The first group of lines earmarked for termination are ten sectors about 308 km long, these are Tcherven Briag - Oriahovo; Pazardjik - Varvara; Gorna Oriahovitsa - Elena; Yunak - Staro Oriahovo, Yambol - Elhovo, Kaspitchan - Novi Pazar, Poduene - Pioner, etc. These lines are in extremely bad technical condition with a very small volume of passenger and cargo transportation. They are not cost-effective and too expensive as regards exploitation. They should be put out of use before the end of this year.
(Abr)
Superdollar: Friend or Foe?
Washington Post Writers Group
By Robert J. Samuelson
Call it the superdollar. On foreign-exchange markets, the dollar has reigned supreme for years. It symbolizes America's economic power -- and now the world economy's potential instability. If you want to scare yourself, contemplate the following. The dollar begins to fall. That is, its value slips relative to other currencies. Foreigners with massive investments in U.S. stocks and bonds begin to sell their holdings. They fear currency losses on their American investments because a depreciated dollar would fetch less of their own money. The selling then feeds on itself. The stock market swoons.
American consumer confidence withers. The recession resumes and spreads to the rest of the world through lower U.S. imports. Wham! Is this horror story likely? Probably not. Is it possible? Well, yes. Since early March, the dollar has already depreciated about 6 percent to 7 percent against the yen and the euro. And there are huge foreign investments in the United States that could be sold quickly. At the end of 2001, foreigners owned $1.7 trillion of U.S. stocks and $3.2 trillion of government and corporate bonds. The conditions for a dollar crisis exist, but that doesn't mean one will happen. Few economic subjects puzzle ordinary people more than "the dollar" -- with good reason.
Even economists are baffled. The reason is simple. Since World War II, the dollar has replaced gold as the main global money. It's used for trade and international investments. The dollar is also the main "safe haven" currency for people who don't trust their own country's money. No economic theory can consistently explain the dollar's behavior, because the world's desire for dollars is constantly shifting. Let's review the history. After World War II, Europe and Japan suffered an acute dollar shortage. They were rebuilding and desperately needed dollars to buy essential machinery and food, mainly from the United States. The Marshall Plan from 1948 to 1952 initially relieved the scarcity.
Later in the 1950s, the supply of dollars was fed by American foreign aid and the overseas investments of U.S. companies. What almost destroyed the dollar's global role, in the late 1960s and '70s, was inflation. If the dollar's value -- measured by what it can buy -- is eroding rapidly, foreigners don't want to hold the currency. The rapid inflation of the 1960s doomed the system of fixed exchange rates created at the Bretton Woods conference in 1944.
Rapid price increases made U.S. exports less competitive. President Nixon abandoned fixed exchange rates in 1971. Before that the dollar always bought a constant amount of other currencies. Floating exchange rates aimed to increase U.S. exports by allowing a modest dollar depreciation. But rampaging inflation caused a flight from the dollar. Once then-Federal Reserve Chairman Paul Volcker and Ronald Reagan suppressed inflation (down to 4 percent in 1984), the dollar's international role strengthened because global commerce was expanding at a ferocious pace. Companies, institutional investors and wealthy individuals all needed more dollars. Since 1990 the volume of world exports has roughly doubled. In the same period, international capital flows -- cross-border investments -- more than quadrupled, to $6.6 trillion in 2000.
Demand for dollars rose. For Americans, the superdollar is both a blessing and a curse. Because the world wants dollars, the currency's exchange rate settles at a level that produces continuous trade and "current account" deficits.
American exports become costly, imports cheap. In 2001, the U.S. current-account deficit was $417 billion -- 4.1 percent of gross domestic product. (Along with trade, the current account includes travel, foreign aid and investment income.) Cheap imports also hold down U.S. inflation; that's another benefit. The curse of the "strong dollar" is that it penalizes U.S. manufacturers and farmers in world trade. When the economy booms, losses seem tolerable. In a faltering economy, they can become crushing. Not surprisingly, steelmakers clamored for higher tariffs and farmers for bigger subsidies. The superdollar also reflects the weaknesses of Japan and Europe.
There's no reason the dollar couldn't share its global roles with the euro and yen. Not only are these currencies used less but Japan and Europe don't absorb all their own savings. The surpluses get invested in the United States, propping up the demand for dollars and explaining the huge foreign holdings of U.S. stocks and bonds. The result is a lopsided global economy, too dependent on American consumers (to absorb imports) and U.S. financial markets (to absorb surplus savings). Given low U.S. inflation and the lack of appealing investment alternatives, there's no reason that this vast recycling couldn't continue for a long while. Equally, there's no reason that something -- more terrorism, poor corporate profits, another Enron scandal -- couldn't shatter confidence and trigger a flight from the currency. The correct answer is, well, unclear. Here, as elsewhere, economic theory can't explain economic reality.
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