As Deputy Finance Minister Kiço Dhosi made known on the economics page, the VAT base will be broad. A detailed study and selection of forms is now being made so as to avoid various fiscal problems. He added that “we think that within this year or at its end we will put this law into force. All small and medium-sized businesses with an annual turnover above 700 thousand dollars per year, from January 1, 1995, will pay value added tax.” Mr. Kiço Dhosi said that this type of tax, otherwise known as “VAT”, will compensate for some of the gaps created by the abolition of turnover tax and will create another opportunity for greater transparency in tax payments. According to him, VAT “is not a direct tax but an indirect tax” and for this reason it will have broad effects on the tax system and on the regulation of transactions.

Statement by President Berisha Bulgaria refused to take part in a meeting held in Sofia in 1991 in an attempt to divide Macedonia among Greece, Serbia and Bulgaria, President Sali Berisha said yesterday in a statement to journalists. On this occasion, Mr. Berisha underlined his respect for his Bulgarian counterpart Zhelyu Zhelev and said: “Macedonia, in an absolute way, has been and is a factor of stability for the Balkans. For the European Union and the USA, Macedonia, in a special way, is a key state. The Republic of Macedonia for certain states has been and continues to be a permanent subject of destabilizing activities. This destabilizing activity of some circles in Greece, which in fact do not recognize or have in no case recognized the legitimacy and existence of this state, is unacceptable.” Mr. Berisha also said that officials in Macedonia have pointed out that certain circles in Greece are encouraging ideas for the federalization of that country. “Absolutely,” but if Macedonia were historically within its ethnic borders, it would be more stabilized than it is today. Nevertheless, part of the region’s stability is also the Albanian community in Macedonia,” said the President of Albania. “It has proved itself to be a factor in the Balkans.” Berisha greeted “in a special way” the government of Bulgaria in 1991 for “all of its activity in defense of the [independence and] territorial integrity of Macedonia, despite the fact that [this] runs counter to some circles in Athens.” “The [Bulgarian] government and president set an excellent example of respect for the law and the existence of another country, under circumstances in which certain circles of neighboring states were seeking to wipe it off the map,” he said.

-20 million dollars credit- A visit of the Foreign Ministry secretary to Japan -20 million dollars credit- A visit of the Foreign Ministry secretary to Japan The visit of the DP delegation and Japanese economic assistance to Albania constitute an event of special importance. It has brought Albanian-Japanese bilateral relations to a qualitatively new stage. It is no coincidence that the Republic of Japan became the first Far Eastern country officially visited by a DP delegation. It was marked by warm talks with the highest Japanese state and party circles and enabled the head of the delegation, the secretary for foreign relations at the DP, Mr. Eduard Selami, to exchange views with distinguished personalities of Japanese political and public life. At the invitation of Mr. Michio Watanabe, Minister of Foreign Affairs of Japan, a high Albanian state delegation, headed by the secretary general of the Ministry of Foreign Affairs, Mr. Sokrat Plaka, is paying an official visit to Japan. Within the framework of Japanese government cooperation with Albania, the Japanese government has granted our country 20 million dollars in soft credit for the repair of the “Karl Marx” and “Mao Ce Dun” hydropower plants. The head of the Japanese delegation, Mr. Minoru Tanba, first director of the Eastern Europe Department at the Japanese Foreign Ministry, told “RD”: “The Japanese government supports democratic and economic developments in Albania. We will further encourage good relations and bilateral cooperation in all fields.” Meanwhile the first deputy foreign minister, Mr. Tetsuya Endo, at his country’s embassy in Tirana declared to “RD”: “Albania helped itself with understanding and goodwill to turn toward the outside world. Albania is once again a country free from totalitarian communist ideology. This makes me feel very good because we believe in democracy. We will support Albania and encourage comprehensive bilateral relations with Albania.” He particularly recalled the support of democratic nations toward Japan after the Second World War and thanked for reciprocal friendship and sympathy.

Soon the first private bank in Albania The central office of the National Commercial Bank in Tirana declared yesterday that its Administrative Board has approved the procedure for licensing commercial banks in Albania. For the first time, said a senior official of this bank, “private banks may be licensed, as well as joint-venture banks with foreign capital.” In the bank’s central hall in Tirana, an official statement says that “the Administrative Board of BKT has examined the proposal submitted by the Council of the Bank of Albania. In accordance with article 4 of the law ‘On the bank in the Republic of Albania’, the Council of BKT licenses commercial banks in Albania.” According to this statement, “the Board, taking into consideration the bank’s economic stage and the demands of the financial market, decided to specify the legal, economic and financial conditions for opening branches of foreign banks and licensing commercial banks in Albania.”

for the normalization of relations between the two countries. The last meeting between the two states took place on Thursday in Geneva, where negotiations on the Albanian issue in Kosovo ended without success. It is now thought that a session may be held next week in Prishtina or in Belgrade. This was reported by the “Voice of America” correspondent in Geneva. According to the latest reports, hopes are for a settlement of the issue before the “World Bank” and the “International Monetary Fund” consider Yugoslavia’s request for the lifting of the economic embargo against it. Albanian officials have not ruled out the possibility of organizing a meeting between Prime Minister Nano and President Milošević, but such a meeting could hardly be realized without a prior settlement of the conflict in Kosovo.

Secondly the stoppage of the Yugoslav state The first economic and political measures of the American administration, at the end of the crisis in Bosnia, will affect Kosovo enterprises. The second stoppage on the supply of goods destined for Kosovo and, according to American sources, is expected to affect especially the province’s vital industrial sectors. According to American sources, stronger controls are expected to be applied on all supply lines involving Kosovo enterprises. The text mentions that supplies for Kosovo pass mainly through the infrastructure of the Yugoslav state and this is the most sensitive point. Reports speak of a blow to industrial production and difficulties in the energy and transport sectors, further increasing the consequences of economic isolation. (continued on page 6)

Albania the most successful country in the East A senior official in the international economic sector of the “World Bank”, Mr. Roger Grawe, called “The Economist” completely wrong in describing Albania as “the most failed country in Europe”. Mr. Grawe told the newspaper “The Independent” in London that “Albania apparently has done more than any former communist country and more than many of them have succeeded in introducing the market economy”. He called “The Economist” “extremely mistaken” in its assessment of Albania, whose “annual per capita income is growing by 20 percent a year. The budget deficit is being minimized, inflation has fallen from 30 percent in 1992 to about 16 percent at the end of 1993. The rise in private demand, export orientation and reform in agriculture are creating new momentum”. The “Independent” correspondent from Tirana writes that “the Albanian economy is at such an early stage that it is difficult to speak of an ‘export miracle’. But, with success in a range of indicators, it deserves attention”. He adds that the “World Bank” is “skeptical about the long-term benefits of import liberalization and underlines that the strong movement of emigrants to Greece and Italy has greatly helped the country with an increase of 300 million dollars a year in hard currency”. “If private incomes rise, this will be something very important for Albanian families and for purchasing power,” the article says.

ALI PODRIMJA AZEM SHKRELI The person responsible for the joint Albanian-Serbian conference in Copenhagen took the pretext from an article published in “Koha” in the “Reactions” column. From there he tried to construct a political argument to attack the positions of Kosovar intellectuals. The reaction states that the declaration represents an old way of treating the Albanian question in Kosovo and seeks to shift attention away from the real political and national problem. According to the author, the use of the names of Ali Podrimja and Azem Shkreli was done tendentiously. The article continues with criticism of approaches that, under the guise of dialogue, relativize the responsibilities of Serbian authorities and often present the Kosovo issue as a cultural rather than political problem.

Skedari Magj. Jeka [?], was taken [?] to the newsroom to be published by the man from Shkodër from Balshi [?].