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Thursday.

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Yesterday the beaches of the 'Albena' resort were crowded because of the fine weather. Tomorrow Vice-Minister of Economy Dimitar Hadjinikolov is expected to open the summer season at the 'Sunny Beach' resort. Photo Impact Press Group

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"We are not conflicting," Gen. Boiko Borissov, IM Chief Secretary, and IM Minister Georgi Petkanov were flat. Gen. Borissov, however, elaborated that he was not able to work together with the deputies of the IM Minister because they usurped his duties. Photo Marina Angelova

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A Bulgarian farmer herds sheep in a high mountain meadow in the Stara Planina mountains, June 6, 2002. Farmers, suffering from low diary and meat prices and shrinking domestic consumption, cut sheep numbers to 2,286 million last year from 2,549 million a year earlier, statistics office data showed. Despite a drop in livestock numbers, Bulgaria still manages to fulfil an export quota of some 6,000-7,000 tons of lamb to the European Union. REUTERS/Dimitar Dilkoff

SITUATION IN CRISIS REGIONS.
 
MIA
 
A detonation was heard at 00.30 Thursday morning on "Ilindenska" street in Tetovo, causing material damage to the garage of the house No. 160. The investigation is underway and the perpetrator has not been identified yet, Media Activity Center within the Coordinate Crisis Management Body reports.
 
Starting from Thursday, round a clock police patrols will be present in Selce village in Tetovo area.
 
After the de-mining of the terrain is completed, the patrolling in the last six villages from the General plan on police redeployment is expected to begin.
 
Shootouts have been registered Wednesday night since early Thursday morning from areas in Tetovo and the surrounding villages, MIA's correspondent.
 
Army and police sources say burst of fire and sporadic shootouts have been registered from Vonvardarska, Ciglana and Drenovec settlement, Tetovo Teke, the area around the bigger apartment blocks in Rasadiste locality, near Tetovo - Popova Sapka road, as well as from Mala Recica, Gajre, Lisec, Gjermo, Dzepciste, Neprosteno, Prsovce, Odri, Ozorniste, Trebos and Strimnica.
 
A severe blast was heard from the western part of the town around 01:30 hours. Police works on defining the right location of the explosion and discovering of the doer.
 
Police sources say fire was opened late on vehicle of police patrol Wednesday around 21:30 hours in Ciglana settlement. There has been no respond to the firing.
 
There was a quiet Wednesday night in Kumanovo - Lipkovo crisis region, MIA's correspondent reported.
 
A gunfire occur at 20:00 hours Wednesday, from direction of the villages Matejce, Nikustak, Vistica and Grusino.
 
In the five villages in Lipkovo region, patrolling of mixed police teams goes on as planed.
 
Expert teams of Museum of Tetovo Area performed an inspection on objects at site Arabati Baba Teke Wednesday.
 
The expert teams, along with the International organisation for trust-building IOM USAID determined the damages caused by the Albanian terrorist groups on this cultural-historic monument, which is protected by law and is a part of the rich cultural-historic heritage of the Republic of Macedonia.
 
OSCE representative for trust building Ian Ericoya was also interested in the findings, and had a meeting with the Museum director Srecko Jovanovski. For that purpose, Ericoya pledged that he would send a special UNESCO information.
 
As stated in the report, the display in the art gallery has been entirely destroyed, along with the Japanese pavilion with complete lighting, the library of the Museum with over 200 titles, among which rare encyclopedia from the beginning of the 20th century, originals of archeologist Pavle Vasik were destroyed. Furthermore, collections of books from the pre-war period of the Belgrade Faculty of Philosophy, as well as collections from the Croatian Museum of 1924/40 were also destroyed.
 
The entire collection that has been gathered by several ethnologists in the past 50 years has been taken, along with the destruction and stealing of more than 300 ethnologic items.

PRESS - CONFERENCE OF HOLY ARCHPRIEST SYNOD OF MACEDONIAN ORTHODOX CHURCH.
 
MIA

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The Holy Archpriest Synod of the Macedonian Orthodox Church (MOC) will never renounce, and never has had the intention of renouncing the fact that the title Macedonian Orthodox Church should be a part of the name of the Holy Church, as well as its independence.
 
The MOC's Holy Synod adopted a decision at its regular session Thursday at the monastery of "St. Bogorodica" in Matka, near Skopje. The session focused on MOC's independent status, upon the latest reactions of orthodox believers, Macedonian public and certain institutions in the country.
 
The Holy Synod adopted the decision that draft - documents could not be the final ones in its future discussions. Only the final documents, signed by the Synod Head of and the Archbishopric Church-National Council of MOC would be considered as valid.
 
As Metropolitan Petar stated at today's press - conference, the MOC's Synod estimated the Nis draft-agreement on establishing canonic unity between the two churches, which was signed on May 17, only as a working document of the committees of the Macedonian and the Serbian Orthodox Churches, which is does not mean a legal obligation for MOC or any of its organs.
 
According to the Holy Synod of MOC, as Metropolitan Petar said, "such high opinion and dedication of the Macedonian people to its mother church, binds the Holy Synod to regain its dignity in the Macedonian Constitution, which is the pillar of the Macedonian spiritual, national and state identity".
 
"Having in mind the MOC importance for the Macedonian people, MOC will give its support only to those political parties that protect the church interest in their political programs," Metropolitan Petar pointed out.
 
In order to confirm the unity of the Holy Synod, a joint liturgy, conducted by the Archbishop of Ohrid and Macedonia Stefan, is to be held on June 24 on the occasion of sanctifying the Church of "St. Sofia" in Ohrid.
 
Kodra Fura and Macedonia's Emerging War.
 
Antiwar
by Christopher Deliso in Skopje
June 6, 2002
 
The hulking Macedonian Army helicopter touched down on the mountaintop, blowing grass and debris over the edge of the wooded ravines to all sides of us. As we jumped down and onto the muddy track, I could see the tanks, APC's, and soldiers all around. This was Kodra Fura perhaps the most strategic place in the Balkans today.
 
Together with a handful of journalists and officials including US ambassador Lawrence Butler I had come to check out the volatile Kosovo-Macedonia border, scene of several recent armed provocations from the Kosovar Albanians. We were also to visit the nearby Tanusevci border checkpoint where the war began in earnest in February 2001, with the surprise killing of three Macedonian soldiers. Several Macedonian generals and officers were on hand to recount this event as well as the future of the much-desired redoubt.
 
Straddling the border between Macedonia and Kosovo, Kodra Fura and the hills above Tanusevci command all approaches. Right now, this is perhaps the most important security region for Macedonia. From here, one beholds all: the rolling hills of Kosovo, distant villages and fields, the glittering expanse of Camp Bondsteel, and the vital Skopje-Kumanovo corridor within. It is the key to controlling not only Macedonia's most populous area, but also the Kosovo and South Serbia borders.
 
Kodra Fura also overlooks a maze of smuggling routes. Drugs, weapons and women are regularly smuggled through here, on an invisible highway stretching from Bulgaria to Kosovo and points beyond. Further, this stronghold is situated dead north of Skopje, the capital.
 
For all of these reasons, Albanian militants from both sides of the border would dearly love to control this area: it is the puzzle piece they are missing in order to connect their Tetovo-area villages with their Kumanovo-area ones. If they can take Kodra Fura, the end is near for Macedonia and the entire South Balkan region as well.
 
Understandably, Macedonia is taking every precaution necessary to protect this strategic location. Now, with the increasingly bellicose rumblings from Kosovo's "government," securing the border is more vital than ever.
 
THE KOSOVO PARLIAMENT: A PEANUT GALLERY OF MALCONTENTS.
 
In this region, border belligerence is nothing new. The latest anti-Macedonia provocations started almost six months ago and I have been tracking the situation ever since. This increasingly surreal story of belligerence, hypocrisy and deception is fast descending into farce and one with mighty serious implications for Macedonia's future.
 
The headaches began when Albanian peasants from Kosovo started complaining about their "fields," which have allegedly been swallowed up by an "illegal" border. This dubious claim regarding a suspiciously mountainous region was quickly elevated to scandal when US Brigadier General Keith Huber in a statement that was quickly retracted supported the Albanians' disdain for an internationally-recognized border. Street protests in Vitina (12 KM north of the border) were followed by April's armed attack on a Macedonian border checkpoint. Tensions were raised again recently by another Albanian assault on the Tanusevci army station.
 
The really startling thing about all this, however, has been the politicization of the issue. The Kosovo "Parliament," in an astonishing display of intransigence, recently announced that it was officially condemning the Kosovo-Macedonian border. The token Serbs in that august body walked out in disgust, and UNMIK chief Michael Steiner instantly vetoed the statement. The US Embassy in Skopje quickly followed suit. KFOR is now dutifully trumpeting the same objection.
 
Despite the blanket negation of this "resolution," however, the fact that it was made by Kosovo's infantile "government" lends to it an unfortunate air of legitimacy. After all, wasn't NLA chief Ali Ahmeti able to transform himself from terrorist to politician just by putting on a suit? This trend is especially unsettling, when we consider the latest decree from the north.
 
"KODRA FURA IS OURS!"
 
On 30 May, the Kosovo parliament came out and said it: "Kodra Fura is ours, and Kosovo will return this piece of its territory."
 
Riiight. And if the territory is indeed "returned," I'm sure many a pleasant pastoral idyll will be spent atop that particular grassy knoll.
 
No, the truth here is unavoidable: by laying claim to the most strategic mountaintop in the Balkans, the Kosovar Albanians have finally said it. With one voice, they have finally announced their plans for Macedonia.
 
PLEASE, JUST DON'T MAKE THEM MAD!
 
While the Kosovar Albanians should be entering a world of pain right about now, they're not. The reactions from the West have varied from cynical amusement to blas disinterest. And this euphemistic frenzy shows no signs of abating as can be seen all too easily.
 
Take one example from my brief survey. In Belgrade, I asked one high-level Brit to comment on these bellicose rumblings from Kosovo's "government."
 
His answer? "Well obviously, they're going to make some mistakes at the beginning." Huh? When have legislative threats and attempted invasions ever been called "mistakes?"
 
Then there was the inimitable Jamie Shea, who back in April fielded questions from students in Brussels. A Macedonian student asked Mr. Shea why NATO has been pressuring the Macedonian army to end its weapons modernization program. Indeed, why are those state-of-the-art new tanks rusting away down in Strumica? Replied Shea: "well, how would an ethnic Albanian feel if he saw a tank like that entering his village?"
 
In other cases (such as illegal logging by Albanians in Tetovo), self-professed "confidence builders" like the OSCE claim they are powerless to implement justice. They are strictly observers; arrests are left up to the Macedonian police. Of course, however, the OSCE advises (rather strongly) that no such arrests be made, lest they inflame the Albanians. Consequently, no one is ever arrested, and the wild, wild west of Macedonia slips further into uncontrollable criminality.
 
Finally, let me add the comments of an American in Skopje who ignored the issue completely and instead took the opportunity to condemn Macedonia.
 
Apparently, those unhelpful Macedonians just aren't giving the Kosovar Albanians enough free run of the country which they really should (he implied), simply because the US has decided to run its visa-for-Kosovars program out of Skopje. This gentleman also predicted that Kosovo will be independent, and Macedonia perhaps non-existent, within ten years. Of course, there would be no connection between the twin disintegrations
 
THE BOTTOM LINE.
 
There is no way that the West cannot see the Kosovo border situation for what it is an outrageous and unprovoked declaration of war. By failing to take a tough stance on Albanian irredentism, Macedonia's Western overlords are more than irresponsible they're downright clever. In the absence of a strong and concerted Western denunciation, the Macedonians naturally come off as the loudest complainers of all. And so, because of their oh-so tiresome objections to foreign invasion, the Macedonians will inevitably just fall back into the same old trap "hardline nationalism."
 
Ahh, at least everything's back to normal!
 
COULD IT GET WORSE?
 
Perhaps more dangerous than Western disinterest in the border provocations, however, is the situation on the home front. Quite simply, Macedonia is fractured beyond repair. Although they are purposefully not saying it, the internationals must be aware of the truth: inter-ethnic cooperation in Macedonia will never occur again. The evidence is not long in coming.
 
Take Ali Ahmeti former chief of the NLA, and still listed on President Bush's terrorist blacklist. Ahmeti has been yearning for political legitimacy since he started the war in March 2001. Now, with his recently launched political party, he seems to have gotten it. Ahmeti's estranged colleagues in the DPA and PDP, by the way, made a point (on 29 May) of ruling out any inter-ethnic dialogue between Albanians, Serbs and Macedonians. Yet according to the West, those unhelpful Macedonians are the ones who won't cooperate.
 
YES AND IT ALREADY IS.
 
Things get even more bizarre, however. In an influential piece which appeared in Skopje's Dnevnik a few days after Kosovo's border "resolution," critical thinker Jason Miko raised the stakes by calling the bluff of Macedonia's Albanian politicians. The challenge was clear even from the title: "A time to decide." In the article, Miko suggested that the Macedonian Parliament adopt a resolution condemning the Kosovo decree. This, he argued, would give the Albanian MP's the chance to show where their true allegiances lay:
 
"I want to see who votes for this resolution and who votes against it. I want to see the Albanian deputies stand up and collectively say, "I am proud to be a citizen of the Republic of Macedonia and I will fight for the territorial integrity of the country. I condemn this action by the Kosovo parliament."
 
As expected, the resolution was passed. In a rare show of unity, all of the Macedonian MP's voted to affirm their nation's sovereignty. Astonishingly, however, none of the Albanian MP's not one voted to condemn the Kosovo Parliament's bellicose resolution. Some managed to conveniently "disappear" at the time the vote was held, while all the rest voted against their own country against the country which they have been elected to serve.
 
A more damning verdict than this cannot be imagined. It is now absolutely irrefutable: the Albanian political leaders in Kosovo and Macedonia are actively working together towards the same goal a united Greater Kosovo.
 
GAME OVER, INSERT ANOTHER QUARTER.
 
Just for fun, we can compare this the political status quo of June, 2002 with that of the decidedly more volatile February 2001, when the war first began. For it was right here, in this very same Tanusevci, that three Macedonian soldiers were murdered. Yet despite the greater threat to state security then, morale was much different:
 
"This event marked the beginning of the crisis, and the coalition government of the Prime Minister Lj. Georgievski as well as the Parliament condemned the 'armed groups of extremists' and asked for foreign military help. The public was scared, confused and not ready for what was to follow. It should be noted that at this moment the Albanian political leaders in Macedonia demonstrated a high degree of loyalty if necessary, the territorial integrity of Macedonia would be defended."
 
Further, in the all-party summit which followed shortly thereafter, this policy was clearly stated:
 
"The leaders of VMRO-DPMNE, SDSM, DPA and PDP supported the territorial integrity and the sovereignty of Macedonia; they agreed that the army should occupy the Macedonian border and KFOR should strengthen the control on the other side of the border."
 
It is all too obvious that nothing has improved. For all the confidence-building, for all the peace treaties and inter-ethnic reconciliation in short, for all the millions of dollars spent on making Macedonia whole again, it has only become more polarized than it was before the war. Is this the legacy the international community wants to leave behind?
 
NO SHORTAGE OF ROCKET SCIENTISTS HERE.
 
With their manpower, high-tech equipment and bloated salaries, one would assume that the international "peacekeepers" might understand the implications of tolerating this threat from the north. And they also might perhaps understand the gravity of the Albanian parliamentarians' domestic treachery something which is way, way out of line. Consider the hefty concessions the Albanians won under 2001's Framework Agreement: amnesties for NLA fighters, village reconstructions, greater local self-government, funding increases across the board and this is how they repay their country?
 
No, the international braintrust surely understands the ramifications of Kodra Fura and the brewing conflict. For whatever reason, however, they are not very interested. Whether you want to chalk it up to laziness, boredom or simply their desire to drag out the crisis situation (and with it, their jobs), it's clear that Macedonia's minders are missing in action.
 
Anyway, if some other, more serious motive lies behind this gaping neglect for Macedonian state security, we'll probably never find out. Nevertheless and I'm just throwing it out there if the Kosovar Albanians really are ticked off about missing farmland, shouldn't they bring it up with the good folks who swallowed up over 1,000 acres of it?

Stoyanov: I'm Not Seeking to Meet Kostov.
 
Standartnews
Velislava Krasteva

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I'm not an UDF foe, the ex-president said after his meeting with Nadezhda Mihailova.
 
"I'm not going to be a foe to the UDF. My stand is open-hearted," Peter Stoyanov said after meeting with Nadezhda Mihailova. Yesterday the ex-president visited the UDF headquarters at the invitation of its leader. The two of them met for a first time after Mihailova took over the leadership. The meeting lasted for 1 hour. Nadezhda Mihailova said that she informed the former president about the UDF stand on topical issues and about the changes within the party. Stoyanov repeated once again that he did not intend to take part in Bulgarian politics and to consolidate the right-wing political space.

PLOVDIV - MILITARY EXERCISE.
 
BTA
 
Plovdiv, Southern Bulgaria, June 6 (BTA) - The US government has spent 700,000 dollars to cover costs involved in Exercise Cornerstone 2002, which is underway in Southern Bulgaria, the public information office of the exercise wrote in a press release Thursday, reacting to earlier press reports.
 
The money has been used as follows: 200,000 dollars for repair of barracks, 150,000 dollars for a bridge at Ognyanovo, 300,000 dollars for a bridge at Sinitevo, and 50,000 dollars for repair of an orphanage in Bratsigovo.
 
Exercise Cornerstone 2002 started on Monday. The Engineering Task Force of the Southeast European Brigade (headquartered in Plovdiv) and an engineering unit of the US European Command are taking part.
 
The exercise grounds include a training area near Asenovgrad, Plovdiv region, and areas in the vicinity of Ognyanovo, Sinitevo and Bratsigovo, Pazardjik region (all in Southern Bulgaria).
 
During the humanitarian operations of the exercise, the participating units will build a bridge to span the Maritsa River near Sinitevo and will repair a bridge at Ognyanovo and an orphanage in Bratsigovo.
 
Repair works have already been completed at the exercise headquarters in Plovdiv.
 
BULGARIA - EU.
 
BTA
 
Deputy PM Vassilev Meets EU Officials in Brussels.
 
Brussels, June 6 (BTA exclusive by Bulgarian National Television Correspondent Zornitsa Venkova) - Within his working visit to Brussels, Bulgarian Deputy Prime Minister and Economy Minister Nikolay Vassilev Thursday conferred with EU Internal Market Commissioner Frederik Bolkestein. They discussed Bulgaria's efforts to transpose and apply EU legislation in this area which is the backbone of the European Union.
 
Vassilev briefed the members of the Commission's Directorate General for Economic and Financial Affairs on the Government's record of actions to improve the business climate in Bulgaria and to prove that the country is a functioning market economy.
 
"I hope that Bulgaria will be acknowledged as such in the Commission's next progress report," the Deputy PM emphasized to his hosts.
 
With European Investment Bank President Philippe Maystadt, Deputy Prime Minister Vassilev considered the opportunities for diversification of the financial instruments by which the EIB can share in business promotion in Bulgaria. More specifically, the two discussed EIB loan-financing for small and medium-sized enterprises.
 
The talks will probably continue during a visit to Bulgaria which Maystadt was invited to pay on Thursday.
 
Vassilev also met with Belgian businessmen and familiarized them with the opportunities for investments in Bulgaria.
 
BRUSSELS - BULGARIA- DEPUTY PM.
 
BTA
 
Deputy Prime Minister Vassilev Confers with Official of World Trade Centre Business Club.
 
Brussels, June 6 (BTA) - Bulgarian Deputy Prime Minister and Economy Minister Nikolai Vassilev arrived Thursday on a visit here. His first appointment was a meeting with officials of the World Trade Centre Business Club, the Bulgarian Economy Ministrys press office said.
 
Vassilev is in Brussels to attend a European business forum on "Entrepreneurship and Sustainable Development in Enlarged Europe" taking place in June 6 to 8.
 
The main objective the visit is to present Bulgaria as an attractive investment location and a fast modernizing country, Vassilev said before his departure. He said he will confer with European Commissioners and representatives of the Belgian cabinet and business circles.
 
Vassilev stressed that the visit is part of the efforts of the government to promote Bulgaria and attract foreign investment.
 
The Deputy Prime Minister said he expects that the EU and USA will be the main source of foreign investment in Bulgaria in the next five years.
 
Vassilev is scheduled to meet President of the European Investment Bank Philippe Maystadt, Glabverbel Director General Luke Villam, and officials of the ECs Directorate General Economic and Financial Affairs.
 
Ovcharov Proposes BSP to Coalesce with NMS.
 
Standartnews
Pavlina Zhivkova

"I propose the BSP leadership to discuss the opportunity to coalesce with the NMS at the forthcoming congress," said Roumen Ovcharov, BSP Deputy Chairman, in parliament yesterday. "Coalescing with the BSP is not on the agenda," most of the NMS MPs commented. "We have a good partnership with the MRF and need not changes," Ivan Iskrov said further.
 
RUSSIA-PM-VISIT.
 
BTA
 
Bulgarian PM Simeon Saxe-Coburg-Gotha Ends Official Visit to Russia with Meeting with Duma Chairman Genadi Seleznev.
 
Moscow, June 6 (BTA special correspondent Ekaterina Kazassova) - Bulgarian Prime Minister Simeon Saxe-Coburg-Gotha conferred Thursday morning with Genadi Seleznev, Chairman of the State Duma of Russia. This was last meeting on the official programme of the Bulgarian Prime Minister's visit to Russia which started on Monday.
 
"I hope you are now convinced that Russia is open for cooperation with the new Bulgarian government and the new Bulgarian President," Seleznev told Saxe-Coburg-Gotha. He recalled that an agreement on closer cooperation between the parliaments of the two countries was reached during his visit to Bulgaria earlier this year. Prime Minister Simeon Saxe-Coburg-Gotha signed the Guests of Honour Book of the Russian Parliament.
 
The Russian side assesses the current visit by the Bulgarian government delegation as a turning point in the development of bilateral relations. President Putin, Prime Minister Kassyanov and Russian Patriarch Alexy II all stressed the importance of the visit for the further development of bilateral relations.
 
Both sides expect the documents signed during the visit - a Declaration on Trade, Economic and Scientific Cooperation between Bulgaria and Russia, an Annex to the 1995 bilateral Agreement on Settlement of Mutual Financial Obligations and an Agreement on Cooperation between the Ministries of Culture of the two countries, to clear the way for the development of bilateral relations.
 
There are still some outstanding issues in bilateral relations - on the property of the former Soviet Union in Bulgaria, the Russian side's claims on Bulgartabak, the deficit in bilateral trade and the extension of the terms of arms licences.
 
These issues will be discussed at expert level and both sides expect them to be settled soon.
 
No progress has been made so far on the issue of the opening of new Bulgarian consulates in Russia. Russian Prime Minister Kassyanov said this is a long process and that it was easier to decide to introduce visas for Russian nationals than to open new Bulgarian consulates. He also said that the talks on the opening of a consulate in Novosibirsk are at the most advanced stage. The Bulgarian side said that the efforts to this end are continuing.
 
BULGARIA-RUSSIA.
 
BTA
 
Saxe-Coburg-Gotha Returns from Moscow: No Changes in Agreement on Settlement of Russian Debt to Bulgaria.
 
Sofia, June 6 (BTA) - There are no changes in the agreement on the settlement of Russia's debt to Bulgaria, Prime Minister Simeon Saxe-Coburg-Gotha said on Thursday, returning from a four-day official visit to Moscow. The prime minister, who was in Russia on June 3-6, called his first official visit there "very successful".
 
Saxe-Coburg-Gotha was asked to comment media reports that there was a change in the agreement on the settlement of the Russian debt. "Nothing has been changed, you will see it in the document, which will be published in the 'Official Gazette' for everyone to read, even with a magnifying glass if they wish," he said.
 
Asked why there had been no Bulgarian version of the document as reported by the media, Saxe-Coburg-Gotha said: "We should consider things in a constructive normal manner instead of promptly starting to look for gaffes. It is not that the translation was missing; there was a misunderstanding because the person who was to bring the document had gone to Mr Kudrin's office instead of going to the floor where the documents were signed. There was no gaffe.
 
Unfortunately, it is always bad things or things that may seem strange that are sought."
 
Russia will transfer 15 million dollars to Bulgaria by June 30 under the agreement between the Bulgarian Government and the Russian Federation, the Bulgarian Finance Ministry said in a press release on Thursday. In turn, Bulgaria will write off 25 million dollars of Russian debt on the day the said amount is credited to an account with a bank authorized by Bulgaria in favour of the Finance Ministry.
 
Saxe-Coburg-Gotha also said the Russian claims to property of Bulgartabac Holding were also discussed in Moscow. The sides agreed that they should be considered by experts and reliable documents should be found.
 
The issue of Russian arms licences used by Bulgarian manufacturers was also raised. The sides agreed that an agreement should be signed within a few weeks to settle the matter.
 
Asked about the Russian attitude to Bulgaria's wish to become a NATO member, Saxe-Coburg-Gotha answered that his hosts said they were following the developments and made no further comment. Russia's negative attitude to NATO enlargement is "nearly a thing of the past", according to the Bulgarian prime minister. "We can see the West is viewing our good relations with Russia in a favourable light," he said.
 
The opening of new Bulgarian consulates in Russia was also on the agenda.
 
Work on two of them has made progress, but technical matters take a long time, Saxe-Coburg-Gotha said.
 
Asked to comment on Russian media reports which quoted him as saying that the question of ex-Soviet Union property in Bulgaria would not be resolved during this visit, and further reports that it had been settled in favour of the Russian Federation, Saxe-Coburg-Gotha said: "I think you are not up to date on this subject at all. There is a big discrepancy between what we have signed and what you say. I have no further comment."
 
Asked why there were no ministers on the delegation, the prime minister said that Economy Minister Nikolai Vassilev, Foreign Minister Solomon Passy and Energy Minister Milko Kovachev had already been to Moscow and there was no reason why they "should come along with me again".
 
GAZPROM-BULGARIA-GAS MARKET.
 
BTA
 
Gazprom Managers, President Purvanov Discuss Development of Bulgarian Gas Market.
 
Sofia, June 6 (BTA) - A delegation of Gazprom and Gazexport headed by the deputy chairman of the Gazprom Managing Board Sergey Lukash met Thursday with Bulgarian President Georgi Purvanov to discuss the development of the Bulgarian gas market, the national programme for gasification and the opportunities for increasing Russian gas transits through Bulgaria.
 
The two sides at the meeting agreed that gasification will help improve the energy efficiency of the Bulgarian economy and bring it up to the European standards, said the Presidential press secretariat.
 
Some 520 million dollars in energy costs can be saved every year if Bulgaria implements the programme for gasification, the CEO of Bulgarian gas supplier Overgas, Sasho Donchev, told a news conference on Thursday. The gasification may be completed in 10 years on an investment of 400 to 420 million dollars, he said.
 
The distribution of gas through the gas distribution companies will take another 170 million dollars in annual investments at a relatively slow rate of return of 12 years, said also the Overgas CEO.
 
According to him, EBRD, the International Finance Corporation and many other international financial institutions are interested in providing funding for such a programme.
 
To complete this project, households too will have to pay about 360 million dollars a year for the gas installations in their homes.
 
According to Gazexport Director General Oleg Sienko, Bulgaria is a transit country which is very important for the transportation of Russian gas across the Balkans. The existing gas transmission capacities are used only 11%. "There are conditions for the construction of a gas transmission corridor to Italy and this project is viewed by the Bulgarian side and ourselves as a strategic matter," Sienko said.
 
Sasho Donchev added that "the shortest way for Russian natural gas to Southern Italy is through Bulgaria."
 
"Everything about the Gazprom business is of interest for us," Sergey Lukash of Gazprom said when he was asked whether the gas giant is interested in the privatization of the Bulgarian gas transmission network. He said that decisions are to be made jointly with the governments of Russia and Bulgaria and that joint ventures will probably be set up to implement projects within the national gasification programme.
 
GOVERNMENT-BUDGET FRAMEWORK 2003-2005.
 
BTA
 
Government Approves Budget Framework for 2003-2005.
 
Sofia, June 6 (BTA) - The government approved on Thursday the budget framework for the period between 2003 and 2005, the Information and PR Directorate said.
 
GDP growth is projected at 4.5 per cent in 2003 and at 5 per cent in each of the next two years.
 
Inflation is projected at 4.5 per cent in 2003 and at 3.5 per cent in each of the next two years. The calculation was based on an exchange rate of 2.2 leva to the dollar.
 
The bulk of non-interest budget payments in 2003-2005 will be made for social welfare, economic activity and services, defence and security, health care and education.
 
The budget framework projects a low deficit for 2003 and 2004 and a break-even budget for 2005.
 
The tax burden should be reduced, according to the government. A flat rate of 23.5 per cent will be proposed for profit tax in 2003. Municipalities should be exempt from this tax. Then profit tax should fall to 20 per cent in 2004 and 15 per cent in 2005. Natural persons may expect annual rises in the tax threshold.
 
Public sector spending will be reduced by increasing its effectiveness and directing resources to the top priority areas. The State's withdrawal from a number of areas will be encouraged so as to give way to the private sector with a view to strengthening the functioning market economy.
 
GDP will grow by 4.5 per cent to 35,986.7 million leva in 2003, by 5 per cent to 38,919.7 million leva in 2004, and by another 5 per cent to 42,019.6 million leva in 2005.
 
A current account deficit of 6 per cent of GDP is projected for 2003, 5.2 per cent of GDP for 2004 and 4.7 per cent of GDP for 2005.

BSP Should Quit with Business.
 
INTERVIEW Standartnews: Tatiana Doncheva

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Velislava Krasteva

Sponsors have shaped King's people into a parliamentary group, claims Tatiana Doncheva, member of Executive Bureau of the BSP.

What will happen at the BSP congress that is to start on Saturday?, is the political question posed repeatedly in the last two weeks.

- Mrs. Doncheva, what is the most difficult problem that the BSP must resolve at its 45th Congress to be held this weekend?

- We must make a very thorough revision of our standpoints, to reconsider the manner of political decision-making. The possibility of letting the illegitimate formations take political decisions should be ruled out. All dependencies from 10 years ago must be shaken off.

- Will you specify what dependencies the BSP must shake off?

- There are several types of dependencies. Some look like dependent relations between party and business. Or between various communities, which at certain historical junctures in the last ten years have influenced the decision-making in the BSP.

- Is politics still dependent on business?

- Politics and business live in symbiosis, which at the moment is detrimental to both politics and business. However, sponsors have never interfered into the formation of the BSP parliamentary group, as it happened with the NMS.

- Is the BSP ready to define its attitude to the government?

- Certainly yes, we are the opposition, aren't we?

- But you have two ministers in the present cabinet.

- There participation in the government does only harm to the BSP.

(Abr)

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