To all the Albanian people HAPPY NEW YEAR! - Interview with the Prime Minister, Mr. Meksi, given to «RD» journalist Arif Krasniqi - Question: Mr. Prime Minister. The government team you lead has completed its first 9 months in office. Do you think that during this time you have done what you should have done, or what you were able to do? Answer: The results of the government's work to date are clear, from the establishment of peace and order, the launch of reform, the resumption of production, and the first steps toward beginning investment and construction. At the same time, the government acknowledges that many of its goals planned for this month have not been achieved. Investment is being delayed, for reasons that are known. The number of enterprises facing economic difficulties could have been greater; improvements to the legislation on investment and privatization should have been made earlier. Nevertheless, work has been done in these areas during this period, and the results will soon be seen with the approval of the relevant amendments and decisions, which aim to simplify the procedures and stages through which applications are reviewed. Question: Under the agreement with the IMF, the country was set on the path of reform. What are its first results, and do we still have the IMF's support? Answer: The government presented its program to Parliament, including the implementation of reform in accordance with its agreement with the IMF. The reasons for the agreement with the IMF are its support, its constraints and, above all, the guarantee it gives the European Community and Albania's partners so that Albania can be helped. It is quite clear that the IMF is a partner, a helper, whose support serves to reassure foreigners. On the basis of the law on the protection of foreign investment, the law on the protection of profits, the law on the protection of double investment for each country, tax incentives, etc. And in this respect there is room for improvement, which we will carry out within 2–3 weeks. Question: Unemployment, assistance, inflation. How much have government initiatives to soften their effects influenced people's lives? How do you see their concrete future? Answer: The government has tried, through indexation and compensation, by bringing as many factories and enterprises as possible into operation, and by injecting funds into a number of factories, to enable them to remain out of production for a longer time and thus reduce assistance, because an increase in assistance also means an increase in inflation. Inflation has generally been kept at the levels set by the so-called IMF program, so we have succeeded in this respect. Nevertheless, more remains to be done regarding assistance. Foreign investment, the creation of joint ventures, and bringing more factories into operation through their assistance should reduce this level of assistance, thereby making it possible for a larger number of people to enter production and for production in Albania to increase further. Of course, if foreign investment does not increase, the reduction in assistance will be small. The government's efforts take this into account, and I believe we will have success in the coming year. Question: A key point after the local elections was, and remains, the relationship between the two levels of government: central and local. How do you envisage resolving this problem? Answer: As I explained during the interpellation in the question session in the People's Assembly, there is a mistaken idea about local government. Local government is primarily a local administration that carries out those functions and meets the needs of the community. It is not the creation of a municipal republic, another republic in the district, and yet another republic here in Tirana in Parliament. In those districts where there is no conflict between municipal government, the municipality and the district authorities, there is no talk of a blockade of local government. It is quite clear that a qualitatively and entirely different authority is not being created in opposition to the previous one; rather, it is an authority that we want to become self-responsible within a short time. The government is completing the law on finance and the local budget to give local government greater opportunities. In this regard, following the solutions to be put in place before the coming year, and with the state's ability to support local government, our intentions are clear. We are trying, through certain local taxes and by defining more precisely the needs of each district and commune, to give them better opportunities to act. Certainly, the coming year will be one in which fairer relations between central and local government will be established, while also requiring other decisions. I would like all those who disagree, all those who accuse us of socialist centralism, all those who talk about a dictatorship of central government and the taking away of rights, to read the laws more carefully and learn more about the experience of other countries. For our part, we will organize ongoing familiarization seminars and maintain frequent contact with local communities. Question: The relationship between government and trade unions. What is the common and specific code of work? What are relations like in the dialogue with the latter, when petitions and statements continue to be published? Answer: In all countries in Albania's circumstances, emerging from a total collapse of the economy and entering a new cycle of production and organization of society, it is essential to have a good relationship between the government and the trade unions. We have tried to establish workable contacts and reach agreements at enterprise, branch, ministry, trade union and government levels, as we did with the unions two months ago. But meanwhile, we are all witnesses to attempts to create new conflicts, in the interests of those who want to destabilize Albania. The time has come for a clear dialogue in which everyone understands that the government has a limited pool of funds and a certain amount of revenue, and cannot spend more than it has. This dialogue would determine the way fo- (Continued on page 2) can be helped. It is quite clear that anyone who gives money, provides assistance or grants loans wants a guarantee that this money will generate returns and benefit the progress of the people. What are the results? The results are good, and I would mention just one thing. The fact that we received the first part of the contribution from the European Community, amounting to 35 million ECU, means that it considered the reform and its results useful and in line with the IMF agreement. Price liberalization expanded the market, increased agricultural production, and we will see its results next year. Price liberalization created a large network of traders. At the same time, placing enterprises with a larger number of workers on assistance gave those who remained an opportunity to move forward with production. We believe that, if we can soon sign the three-year medium-term plan with the IMF, we will have its full support, as well as that of everyone who provides assistance backed by the guarantee of the International Monetary Fund. Question: Privatization has been described as the key to the success of reform. How much progress has been made in this regard? Answer: It is true that privatization is the key to reform, because a market economy cannot be created on the basis of a centralized state economy. In this respect, we are at that stage, and I would say the main thing is what I mentioned earlier. The privatization of agriculture, which involves 65 percent of the Albanian population, and the improvement of efficiency in this branch of the Albanian economy have certainly opened the way to privatizing small-scale trade and small-scale transport. This work will proceed according to the government's plan. The government is committed to carrying it out within the first quarter on a broad scale in the food industry, trade, construction, communications and other areas. There are many results, and we believe this quarter will be decisive. Question: Foreign investment is constantly being sought as the only hope for the success of reform. How promising is the policy of partnership and concessions, and how do you think the legal and bureaucratic obstacles to encouraging foreign investment can be avoided? Answer: Foreign investment is essential in an economy undergoing transformation like Albania's. It is needed to create new enterprises and factories, to introduce new technology and to renew existing enterprises technologically. We know that all of them are at their present stage, in the darkest period of Chinese technology and industry. Therefore, investment cannot change things in favor of light industry and construction unless we attract it. We still have work to do in this regard. We will also create a more favorable environment. First, by simplifying the process and the procedures that attract investment. Second, by quickly creating a legal system that facilitates investment.

TIRANA FROM THE VISIT OF THE DELEGATION OF THE HOLY SEE The difficult situation in the region calls for more active intervention by the European Community Cardinal Fiorenzo Angelini and the delegation accompanying him were received at the Presidency by the President of the Republic, Sali Berisha. The President thanked the Holy See for the assistance it has provided in reviving religious faith during this period of transition from dictatorship to democracy, as well as for the tireless assistance of his interlocutor; the two called for more immediate and active intervention by the European Community. President Berisha received Cardinal Angelini «Caritas». He then informed the distinguished guest about the situation the country is going through, the progress of the reform, etc. The discussion focused on the difficult situation in the region. On this matter, the two interlocutors Community. The Cardinal, after thanking the President for his hospitality, expressed his willingness to help build several hospitals in Albania. (ATSH)

Press conference of President Berisha Yesterday, in one of the halls of the Presidency, President Berisha held a press conference. The first question concerned the Bulqizë strike. In connection with this, President Berisha said that, in general, he would like social problems not to be politicized. Albania is moving from a centralized economy to a market economy, and this is a difficult period for everyone. The Bulqizë strike had reasonable demands. The demand for a pay rise is also reasonable, but not to 70 percent of the European level. Given our level, this demand is unreasonable. It is regrettable that certain people manipulate the miners' demands and seek to destabilize the country. The demand for a better life is reasonable, but the only way to achieve it is to increase production. People should not continue to expect things from the government: it provides opportunities for change, but people bring about these changes through their work. The strike in Bulqizë also involves another problem: the failure to advance the reform because of obstruction by the enterprises' administration. Nevertheless, the government will never cease to engage in dialogue with the people. Regarding the criticism directed at the government at the FRPD Congress, Mr. Berisha said that it was the most positive aspect of the FRPD: open, sincere, constructive criticism. «I hope their voice will be heard, because it deserves to be heard.» Asked about the possibility of a military conflict in Kosovo, Mr. Berisha replied that Albania has no intention of military intervention, but has stated and continues to state that it will not allow ethnic cleansing in Kosovo. This would encounter great resistance in Albania, but not only in Albania, since the international community would not allow such a thing either. As for confronting Serbian military technology, history has shown that the fighting potential of the Albanians' freedom is very great. Speaking about the achievements of the past year, the President emphasized that free elections were a major achievement. The beginning of the reform was another: «It came to us as an unfamiliar friend; the democratic forces showed courage, and with that courage they signed the agreement with the IMF.» The majority of Albanians, regardless of their political beliefs, are benefiting from the reform. Albanians have received land and homes. The main indicators are also positive: the decline in production has been halted, and there has been progress in opening up to Europe and overcoming the consequences of isolation. There have been major achievements isolation. As regards public order, there is marked stability compared with before. There are also indicators showing an improvement in living conditions. Nevertheless, there are vulnerable groups, and the government must listen to their voices. Regarding calls for early elections, President Berisha said that this is a communist, unconstitutional, undemocratic and anti-popular demand. It is communist because disrespect for the free vote was part of the communist tradition. E dhoxha did not respect the free vote after the war, and today's demands are a continuation of that tradition. People experiencing moral crises imagine government crises. This is undemocratic, because this government has the legitimacy to govern and has a majority; the imagined crisis is only a fatal crisis for those imagining it. This demand is (Continued on page 4)

The Socialists are using their own voters as cannon fodder. - Nano is holding meetings in Përmet, Tepelenë, Memaliaj and Gjirokastër. Will the result be a new Polican or another new Bulqizë? Winter has now arrived and, as expected, there are many difficulties. Problems with electricity, heating, people on assistance, and other hardships besides. Some people have more problems and some fewer, but we all have problems. We had all anticipated and accepted these difficulties, and of course what remained to be done was to try, as best we could, to ease them. The government did, and is doing, everything possible. But that was not enough: the misfortune of flooding also struck the north, where families are still living in abnormal conditions. Once again, there was nothing to do but make an effort, because if we do not work, if we do not try, no one will bring us the food we need to live down from the skies by helicopter. The world is helping us because it understands the difficulties of the reform we are carrying out and is lending us a hand so that we too can become like Europe. Most Albanians understand this today, because it is simple to understand that when you have been thrown into the middle of the sea, the only thing left to do is start swimming; if you stay where you are, complaining and crying, you will sink. Certainly, we are closer to the brink than others, but these people want us to drown here too, not to try; and when we start swimming, they tie our hands and push us under with their dirty hands. The «Socialists», who also know well the difficulties facing us, had prepared themselves too—not, like all Albanians, to get through the difficulties, but to destroy them, deepen them as much as possible and, above all, create new difficulties. The statements made six months ago that «this government will not survive the winter» and that «new elections will be held in the spring», following the parliamentary crisis that brought down the previous governments, are now being accompanied by concrete actions by the «Socialists» and those helping them. They know that winter was the most suitable period for achieving their anti-Albanian aims. Thus, in their supposed concern, they have poisoned us. The «defenders» of the «underprivileged classes» who still live in villas and eat in restaurants where a single lunch costs more than an intellectual's monthly salary are «concerned» about the people's problems. Yes, of course, they do not express this «concern» to the people of Tirana or Shkodër, nor to those of Kavajë or Korçë, because people there know their true face. They go to spread their poison in Korçë, Bulqizë, Ballsh, Përmet, Tepelenë and Memaliaj, precisely the small areas where the PS won, which are also becoming victims of their game. The vileness of the «Socialist» bosses goes so far that they consider their own voters cannon fodder. They did not care that the miners' lives were at risk in Bulqizë; all they cared about was achieving their aims. The «Socialists» will certainly jump up at these unfounded accusations, but is it really a coincidence that unrest breaks out precisely in the places dominated by the «Socialists»? Is it really a coincidence that the drivers' strikes involve absurd demands and ultimatums directed at the government? Who can say there is any logic in the fact that the miners of Bulqizë demand, by ultimatum, 50 dollars for a day's work (at a time when production has fallen to a minimum), while in the flooded areas there are families who can barely secure their daily bread and yet manage to understand? These days F. Nano and G. Ruci are making a «tour» of their «stronghold» areas, such as Përmet, Tepelenë, Memaliaj and Gjirokastër. At these meetings Nano says that these discussions and meetings are not being held for an election campaign (note the words «election campaign» at a time when elections will take place four years from now), but to exchange messages with people. What will come after these «messages»? A new Polican, or will the events of Bulqizë be repeated? The «Socialists» have sworn that they will bring down the government in winter, if it survives until then. They know that this winter will be the end of their political careers if they fail to achieve their goal, so they will stop at nothing. They have shown that they do not shrink from crime when power is at stake. Take care, Socialist gentlemen: one cannot know whom the people's unrest may hit hardest—those who are trying with all their strength and resources to change the difficult situation, or those who brought this country to its present state and are now doing everything possible to continue their criminal work. We have said it before and repeat it: the PD and the democratic government received the confidence of 70 percent of Albanians for four years; therefore, they will remain in power for four years. And let us be certain that after those four years Albanians will be even more determined to give the PD their confidence for another four years. So do not fan a fire when no one knows whom it may burn.

Answer: The government presented its program to Parliament, including the implementation of reform in accordance with its agreement with the IMF.