On 11 May 1992, the Director General of the State Bank, Mr. Ilir Hoti, the Deputy Minister of Finance, Mr. Robert Çeku, and representatives of the German Development Bank Kreditanstalt für Wiederaufbau, Mr. Hanns-Peter Neuhoff, Deputy Director General for Europe and the Near East, and Mr. Jurgen Z. Trede, Chairman of the European Division, signed the disbursement of a loan of 37 million DM (around 25 million dollars). On 11 May 1992, the Director General of the State Bank, Mr. Ilir Hoti, the Deputy Minister of Finance, Mr. Robert Çeku, and representatives of the German Development Bank Kreditanstalt für Wiederaufbau, Mr. Hanns-Peter Neuhoff, Deputy Director General for Europe and the Near East, and Mr. Jurgen Z. Trede, Chairman of the European Division, signed the disbursement of a loan of 37 million DM (around 25 million dollars), which is intended to improve the water supply systems in the districts of Kukës and Kavajë, improve conditions in the Student City, support private investment in agriculture, and provide investment for existing enterprises in light industry, which will begin immediately. The loan will be administered by the Albanian State Bank under highly favorable long-term terms and will be repaid in lek. The Ambassador of the Federal Republic of Germany to Albania, Mr. Claus Vollers, also attended the meeting. RD correspondent

- There is a definite willingness to help Albania - No to the diplomacy of isolation! Yesterday morning, President of the Republic Sali Berisha chaired a meeting of the Council of Ministers, at which, first, he informed the government about the results of the meetings in Europe and, second, discussed and presented the following issues to the Government: In the briefing on the visits to the European Community, the Council of Europe, Rome and Paris, Albania’s commitment to building a genuine democratic state and pursuing a policy of preserving peace in the region—one that will lead Albania toward integration into Europe as soon as possible—was presented. At these meetings, the need for economic, financial and humanitarian aid was presented. A special place in these discussions was given to the situation of Albanians living in their own territories in Yugoslavia. It was emphasized that Albania and the political forces in Kosovo do not seek to change borders in the region and support the initiatives of the European Community, but insist that the European Community recognize the right of Albanians to self-determination, just as it does for others. As for Macedonia, our view is that we must respect the national and ethnic rights of the Albanians there. At the conclusion of the briefing on the visits, President Berisha stressed that there is a definite willingness to help Albania, provided that it follows the path of economic reforms. Regarding the issue of the IT [sic], the President instructed that Albanian diplomacy must free itself from the diplomacy of isolation, or facade diplomacy, as it has been until now. Albania needs a diplomacy of concrete steps, capable of implementing an open-door policy and bringing Albania out of isolation. For this reason, both the geographic coverage and the composition of diplomatic missions need to be restructured. The working methods and structure of this ministry, the President stressed, must change in accordance with Albania’s current interests, which are consistent with a policy of integration into Europe. In every possible way, the third shift for women should not exist. In addition to this (Continued on page 4)

Interview with the Director General of the State Bank Mr. Ilir Hoti Mr. Ilir, what is the situation? To stop this hemorrhage of banknotes, the Bank has taken the following measures: First, the process has been initiated of producing new banknotes abroad, with new denominations replacing the existing ones—200, 500 and 1,000 lek—which will arrive partly by June and the remainder by July. Second: within 10 days, the Bank will issue a banknote called the lek-valutë, in denominations of 50 lek valutë and 100 lek valutë, whose monetary value will be multiplied by 50. The Bank will provide a special explanation about this on TV and in the daily press. I clarify that the interpretation given in the newspaper «ZP» dated 12 May 1992 is incorrect, since the decision does not prohibit wage increases, including for military personnel, law-enforcement employees and SHIK employees; it merely gives them the opportunity to deposit their wages in savings banks and use them as they wish after 30 June. Answer: This decision is not a suspension of wage increases but a temporary suspension of wage payments. The government program’s overall reform requires, as a prerequisite, that the foundations of a monetary reform be established. This consists of reducing the outflow of the money supply from the Bank. We know that during the first quarter the outflow of this money supply was very high. This was caused, first, by the technical government’s decisions that took effect, such as wage increases, which added around 1 billion lek to the money supply, and by abuses of the «enterprise law» involving bonuses on top of wages, with certain enterprises tending to award up to 10 salaries (!?). These factors put the monetary and budget balances in a difficult position, affecting the delay in launching the reform. In view of this, the latest mission of the International Monetary Fund confirmed that the steps the Bank had begun taking were entirely correct. Is there currently a legal obstacle to wage increases, or is it that, for now, the Bank is unable to make the payments? Answer: There is no legal obstacle to wage increases where enterprises can justify them through positive financial performance, but until the end of June the Bank cannot fully withstand this runaway increase in wages and bonuses. This happens in every country, even in Germany today. But what is most important is the creation of conditions by this government so that, after this six-month period, the monetary outlook will be different. What measures has the State Bank taken to secure banknotes? Answer: To ensure the physical security of banknotes Prepared by MEHILL TANUSHI

The day before yesterday, at the meeting of the Council of the European Community in Brussels, attended also by the delegation of the Republic of Albania... In his speech, the Chairman of the Council of Ministers of the Republic of Albania, Mr. Aleksandër Meksi, after presenting the situation under the necessary conditions. The agreement in question opens the way for trade and economic cooperation in the field of vari-

Britain agreed on Friday to return 13 million dollars to Albania in...

At the meeting of the Council of the European Community in Brussels, attended also by the delegation of the Republic of Albania headed by the Chairman of the Council of Ministers, Mr. Aleksandër Meksi, an agreement on economic and trade cooperation was signed between the Republic of Albania and the European Economic Community. of Albania, headed by the Chairman of the Council of Ministers, Mr. Aleksandër Meksi, an agreement on economic and trade cooperation was signed between the Republic of Albania and the European Economic Community. A political declaration between them was also adopted. The meeting was attended by the Chairman of the Commission of the European Community, Mr. Zhak Delor, as well as the foreign ministers of the 12 member states. Speakers at the meeting included the current President of the Council of the European Community, Portugal’s Minister of Foreign Affairs, Mr. Pinheiro, and the Vice-President of the Commission of the European Community, Mr. Andriesen. They welcomed the victories of democratic forces in Albania in the 22 March elections and reaffirmed the European Community’s commitment to helping Albania with food supplies and with the process of economic reform. the situation in the country and the main objectives of the program of Albania’s first democratic government, thanked the European Community for the assistance it has given and continues to give Albania, and expressed his confidence that the European Community and the Group of 24 would support Albania’s economic development and the consolidation of the new Albanian democracy. The Minister of Finance and Economy, Mr. Genc Ruli, and the President of the EC Council, Pinmejro, also signed the first agreement between the two parties. The agreement marks a historic moment in our country’s relations with the European Community. It acknowledges the changes that have taken place in Albania during the democratic process and provides for the further development of relations between the two parties, which will contribute to achieving the objective of an association agreement and [Shok - sic] at the appropriate time and way for trade and economic cooperation in various fields and provides that the parties will grant each other most-favored-nation treatment, and for assistance from the European Community for Albania’s accession to the Organization and International Conventions. Yesterday, held separate meetings with the Prime Minister and Minister of Foreign Affairs of Greece, Micotaqis; the Minister of Foreign Affairs of Italy, De Mikelis; the President of the Council of the European Community and Portugal’s Minister of Foreign Affairs, Pinheiro; the British Minister of State, Karel Jones; as well as brief meetings with other participating ministers. At these meetings, they expressed their readiness to support and assist Albania and to increase cooperation both within the framework of the European Community and bilaterally.

Britain agreed on Friday to return to Albania 18 million dollars’ worth of gold stolen by the Nazis during the Second World War, resolving a dispute that had strained relations for decades while offering Tirana much-needed financial assistance. A Foreign Office spokesman stressed that in exchange Albania had agreed to pay Britain 2 million dollars in compensation for the so-called Corfu Channel incident in 1946, in which 44 British sailors were killed when two warships struck mines off the Albanian coast. The mines are believed to have been laid by Yugoslavia at Albania’s request or with its knowledge. The Foreign Office stressed that British and Albanian officials reached the agreement in Rome on Friday. They described the agreement as ushering in a new and positive era in bilateral relations.

to an end.

Communism in Albania was defeated by a higher percentage than in all the countries of Eastern Europe Invited by the Conservative Party of Norway, the chairman of the Democratic Party, Mr. Eduart Selami, took part in its Congress. The Congress was held in Oslo, Norway, from 9–11 May 1992, and representatives of European right-wing and center-right parties took part. This Congress of the Conservative Party (the largest opposition party) was of great importance for a country. At the Congress, the chairman of the Democratic Party, Mr. Eduart Selami, held continuous meetings and working discussions throughout his stay with politicians, leaders of the participating parties, Norwegian and Scandinavian government officials, Norwegian and European parliamentarians, and businesspeople. During the closing session, the chairman of the DP addressed the Congress on behalf of the other guests as well, saying, among other things: “It is a happy occasion for me to take part in the Congress of the Conservative Party. It is a great honor to greet you also on behalf of the other foreign guests. It is a particular pleasure to be a guest in this beautiful, peaceful and hospitable country. Although we come from different countries and parties, and although we have problems, successes and difficulties of various kinds, we are united by the ideal of a common goal: building an ideal life, an ideal that inspires and strengthens us. The European ideal. While preserving and strengthening our culture and national identity, we must all have a common goal. I am sure that you have expected to learn a little more about the country The last former communist country, Albania, and about the circumstances in which, on March 22 this year, the country finally broke away from dictatorship. For almost half a century Albania became a self-isolated country, experienced the harshest communist dictatorship, and during those years resembled very much a huge prison built by the Albanians themselves. When the Democratic Revolution began in Albania 1.5 years ago, many, to say the least, believed that this process would be completed relatively peacefully and that the country would avoid bloodshed and civil war. Communist absurdity had reached its peak in Albania; the damage done was extraordinary, and the hatred accumulated through terror and physical and psychological persecution was immense. And yet, a miracle happened in Albania. Civil war was avoided, communism was defeated by a higher percentage than in all the countries of Eastern Europe, and Albania set out on the difficult but only path: the path of democracy. We won freedom; now we want to build democracy. Now we must show as soon as possible the first fruits of democracy to people whose hope and future were killed for half a century. We must show them that democracy is not anarchy and confusion, but order, calm, a state governed by law, and useful work. We must demonstrate that democracy is the only way we can and must live through this crisis. Despite our successes, as a nation we are aware of the challenges ahead. They are many-sided, but we are capable of overcoming them. We know that the fate of success lies in Albania’s own hands. But at this difficult historic moment, we need not only our own efforts but also the help of the West. This assis- (Continued on page 4)

The article entitled “From Rome to Roven[a?],” published in the latest issue of “RD,” discussed considerable quantities of goods allocated to Albania that have been waiting for weeks to be transported. And these goods may have to wait several more months. Since one day, perhaps, one of our ships will decide to bring them to us. But why not take a little more care and act sooner? This is a rather complicated question, and one worth asking. Let us try to substantiate it. It has been said that some merchant fleet ships have been contracted on unfavorable terms. But despite their concerns, a final decision was issued on 28.10.1991 to transfer some ships from state to private ownership. Yet so far not a single ship has been put up for sale. This has happened because director Enver Guc[i?] (formerly deputy director) apparently has strong reasons for this, which we will examine below. But there is also a startling paradox: the chairman of the committee for privatizing the merchant fleet, Petrit Deliallisi, is against privatization(!?) He declares that we will keep them even if they are making losses. Naturally, it is not Petriti and Enveri who lose, but the state. What are the reasons why some of the ships are not being privatized? The Italian ferry charges 450 thousand lire to transport a car. Our ships charge 300 thousand lire. Those who ship cars thus save 150 thousand lire, and our ships return fully loaded. Clearly, our state does not profit from this. Our fleet is divided among the “ownership” of the state’s ships. And this is no small beginning. That is why other goods the people need wait, and will continue to wait, in Italian ports for the day when they can be transported. Everyone enjoys the proceeds of this illegal trade without being prosecuted, and that is why they do not want the ships to pass into private ownership. In addition, some sailors have 2–3 crew members whom they put out as taxis in the city and who supply them with fuel from the state ships. In just one day, nearly 2 tons of fuel were stolen. So, for every Albanian, privatization is an urgent necessity, as well as a way to put an end to the abuse. But to achieve this, Enver Guc[i?] must change his mind. The director who is overseeing this with me) should be Sypran Vrjapin, who has all the documents and permits in order for the purchase of the ship “Saranda.” And he cannot do this because those who work on it, together with the director, “love” state property so much that they cannot part with it. Nevertheless, if we are to save the ships, privatization must be carried out as soon as possible and measures must be taken against those obstructing it. As for the reasons for privatizing the ships, besides their upkeep, it is enough to mention that before it was bought, the ship “Arbëria” had worked for 5 years in Norway, and after 5 years’ work there, how long should it have to work here for nothing? In the end, 100 thousand [unclear] 45 years of life. Let us hope that this dishonest trade at the state’s expense will be brought to an end.