For 1995 A shift can be seen in the profile of interested investors, in favor of serious, reputable companies. What matters is that foreign investors are not driven away by artificial, bureaucratic obstacles unsupported by law. Interview with Mr. Selim Belortaja, State Secretary for Economic Relations with Foreign Countries, given to “RD” journalist Shpetim Luku “RD”—In your view, what are the effects of foreign investment on the Albanian economy? First, I am very pleased that foreign investment is being ranked among the topics deserving priority attention. As an economist, let me assure you that it fully merits this privilege. What does foreign investment represent? In reality, much more than what our mass media reflect. Thus, while the period 1991–1993 may be considered a period of promising or contracting foreign investments, 1994 can rightly be called the year when the promised contribution was actually delivered. While new contracts have not increased by more than 20% over the 1993 figure, actual implementation in 1994 was around three times greater than the figure reported. This is entirely normal, because an investment decision is complex and requires a series of preliminary studies; on the other hand, there will also be investors who cannot withstand competition and may even leave. What matters is that they do not leave because of artificial, bureaucratic obstacles unsupported by law. “RD”—Should foreign investment be assessed only through the figures provided by Customs? I think this is where a shortcoming in our information lies. Customs figures are indeed precise, recorded and verifiable, but they can reflect only part of foreign investment—only the part that comes in the form of machinery, equipment and, partly, spare parts. By the end of last year, this total figure had reached around $100 million, which means that 1994 merely doubled the figure of $40 million reported at the end of 1993. But foreign investment takes many forms. It is also realized in intangible form through monetary flows for investment and the transfer of technology (know-how). Construction materials are generally bought locally, as are many machines and items of equipment. Secondly, official statistics often leave out foreign investment in the private sector, and even … (Continued on page 2) I am very glad that you have listed foreign investment among the topics that deserve to be addressed as a priority. Let me assure you, no economist would deny that it fully merits this distinction. What does foreign investment represent? A very pertinent question. Most people think it means only foreign money entering the domestic economy. That is not correct. Although, in terms of capital value, at best it does not exceed 10% of GDP (Hungary), its effects are much broader and more complex. Foreign investment means at least 5 such economic and social effects: -MONEY (CAPITAL) -TECHNOLOGY -MARKETS -MODERN MENTALITY -I N T E G R A T I O N I N T E R N A T I O N A L “RD”—The mass media have created two opposing images: that foreign investors are coming and that they are not coming. In your opinion, what is the reality? How well does it match the picture presented by the mass media? It is now clear that, in the field of foreign investment, reality has long since surpassed every kind of wishful thinking. ... [part cut off at the top edge] As for the promise or contracting of foreign investment, 1994 can rightly be called the year in which the promised contributions were actually disbursed. over the 1993 figure, actual realization reported last January. It is neither accurate nor fair to ignore such a situation and indiscriminately sow nothing but skepticism by repeating that “foreign investors are staying away from Albania.” Of course, I do not want euphoria at all, and I am personally convinced that much more is needed and can be done. But in a country where AGIP and SHEVRON, OXIDENTAL and HAMILTON, SHELL and NAFTAPLIN, SIEMENS and COCA-COLA, KATO-AROMATIC, ROGNER and AL-KHARAF, as well as other smaller companies, are operating, it can in no way be considered a country “forgotten” by foreign investors. Foreign investments are coming to Albania, and the fact that not all foreign efforts and contacts have been completed, and that some of them come and go, is a fact that must be understood that deputies Ruli and Uka, in their explanations before the committee, show that the actions they undertook concerning the export of walnut wood were carried out on the basis of the laws in force at the time. Deputy Ibraj informed the committee that some of its members had requested that the Prosecutor General’s Office provide further documents on this matter so that everything could be clarified once and for all. Thus, another meeting of this committee is expected before a decision is made on the matter in question. N.GJINI

Chief of the Albanian Army General Staff in Ankara The Chief of the Albanian Army General Staff, General Sheme Kosova, arrived in Ankara at the invitation of his Turkish counterpart, General Ismail Haki Karadaji. Kosova, who arrived in Ankara aboard a Turkish “Casa-235” aircraft, was welcomed at the “Etimesgut” military airport by Karadaji. The Chiefs of Staff of Turkey and Albania exchanged a document aimed at increasing trust and cooperation in the field of security between their countries. Turkey’s General Ismail Haki Karadaji and the Albanian general, Sheme Kosova, exchanged [the document]. “The document exchanged in Ankara is not a treaty against any other country,” General Karadaji said during the ceremony. They both said that since the Balkans bear the burden of regional conflicts, every security measure in the region would help enhance European security. “The document, which will be called the ‘Tirana Document’ because its final details were agreed in the Albanian capital at a later date, will enter into force on 1 April 1995. Under the document, Turkey, a NATO member, and Albania will invite observers to one another’s maneuvers and take part in joint military exercises. The two countries will also increase military contacts and exchange personnel and military units. General Sheme Kosova will leave Turkey on 11 February.

As a follow-up to the work to strengthen the second meeting of the Albanian-American bilateral working group, held in recent days, a team of American experts on defense planning policy and its legal foundations arrived in Albania. The head of the American team, Professor Dr. Xhejms Anderson, and other members of the delegation were received at a special meeting by the Minister of Defense, Safet Zhulali. He described the visit as a direct response to the bilateral talks between Albania and the United States, serving to consolidate the new structures of our army as well as efforts to strengthen civilian control over it. He then highlighted the contribution of American experts in this important area of national defense, the assistance they provide to the staff and specialists of the Ministry of Defense in determining defense policy and strategy as effectively and quickly as possible, and in ensuring that these are supported by a comprehensive legal framework. Alongside meetings, displays and discussions with military specialists, the American team will hold a special session with the parliamentary defense committee.

The troubling issue of numerous unauthorized constructions in various districts, as well as the role of the Construction Police, became the subject of discussions and debates yesterday morning at a meeting of the parliamentary standing committee on industry, construction, posts and telecommunications. The Deputy Chairman of the Council of Ministers and Minister [text unclear in source] reported on these issues. The People’s Assembly should support these measures and provide greater backing to the Construction Police as it carries out its preventive role in enforcing the relevant law. The draft budget of approximately 344 million lekë for 1995 [text unclear in source], and the work of the group tasked with drafting the bill on public radio and television, were at the center of discussions held by the standing committee on Construction and Tourism. Dashamir Shehi, who, in addition to answering deputies’ questions, presented several measures the Government plans to undertake. To this end, Mr. Shehi requested that the Assembly… (Continued on page 2)

Gentlemen of the Alliance! In a wholly unexpected manner, far removed from any moral, political, or journalistic ethics, you have turned your political struggle against the present state into personal attacks. You have replaced the political struggle with insults and denigration of the person of Minister of Defense Safet Zhulali and his wife, insulting them publicly in statements by a group of AD deputies and in interviews, over their professions and duties as a village teacher and a newspaper seller under the communist regime. You would do well to know (Albanians know it well) that the professions mentioned above, as well as other professions, are far more honorable than the profession of informer—and of informant—against Astrit Qorri, Jamarber Markos, and the many other intellectuals who were interned, imprisoned, and executed; these are criminal acts that have weighed, and continue to weigh, throughout your lives, upon you, a handful of renegades, squeezed-out lemons who, after using you and draining you dry, have now thrown you into the garbage bin so that you may stink. M.SH.

The largest courtroom of the Court of Cassation has been prepared for today’s hearing of the case of five Albanian citizens of Greek ethnicity. Dozens of Albanian and foreign journalists, as well as representatives of radio and television, have been invited to attend the proceedings. Representatives of embassies that have shown particular interest in the case of the five have also been invited. As is known, the five defendants, Th. Bezhani, V. Papakristo, P. Mano, J. Simo and K. Qirjako, have been charged with the criminal offense of forming hostile organizations in Gjirokastër and arming them. At the first hearing, held on Monday, they were sentenced to between 6 and 8 years in prison; the Court of Cassation will hear the case of all five. What is particular about this trial is that, in addition to local lawyers, American lawyers will also defend Th. Bezhani. Some time ago, this court approved defendant Bezhani’s request to exercise his right to have foreign lawyers, since he also holds American citizenship. The panel of judges will be presided over by the President of the Court of Cassation, Zef Brozi. So far, in accordance with the norms of legal ethics, none of the members of the panel has made any statement. Thus, everything will depend on today’s hearing. According to the established procedure of the Court of Cassation, the case will be heard in session on the basis of the evidence in the case file. The defendants will be represented by their lawyers and will not themselves take part in the proceedings. However, since the trial will be public, their family members will be able to attend the hearing. ZH. LAZRI (ATSH)

The National Housing Entity must explain what happens next Interview with Mr. Vasillaq Papaj, chairman of the Durrës district council “RD”: What was the commitment of the local authorities to settle those “flooded out” by Lake Fierza? After Government Decision No. 306 was issued in June 1994, the Durrës district council committed itself to implementing it. For this purpose, 446 hectares of land were made available. Naturally, this was the land that remained after the agricultural land had been distributed in accordance with the law. Initially, the land provided in the former Durrës marshland was rejected by the newcomers, who argued that it was not productive. But we are well aware that land is not used only for cultivation. It can be used for all sorts of purposes, and, being on the coast and close to the highway, it has tourist value. Recently, they have begun arriving in accordance with the lists drawn up by the local authorities in Kukës. “RD”: Mr. Vasillaq, have the newcomers from Kukës actually been given plots and agricultural land? Certainly. First, we carried out an urban-planning study of the area. After that, we set about allocating plots to the first 400 families, and agricultural land has also been given to 60 percent of the families. By February 10, we, as the local authorities, will have settled all our obligations toward them. In the coming days we will send the National Housing Entity the decision of the KRT, which will proceed with the granting of loans. So far, land has been given to the following villages in Kukës: Kryemadhi 20.3 ha Breg lumi:34 ha Drinasi 34 ha (will receive another 40) Kneta...41ha The villagers have been given as much land as they had in Kukës, multiplied by a coefficient of 1.3. “RD”: How will the process continue? Who will be responsible for administering the loans? —I don’t know what to say about that! It is up to the National Housing Entity to explain what happens next. I think this entity should assign someone to deal with this matter. “RD”: You said the road has been built as far as the construction site. What is the general state of the infrastructure? —Yes, that is a fair question. Using district funds, we have sent (Continued on page 2)

Under the direction of the Minister of Culture, Youth and Sports, Mr. Teodor Laco, a consultation was held at the ministry with heads of central cultural and artistic institutions, researchers, specialists from the Directorate of Culture, composers, folklorists, choreographers, etc. Its purpose was to discuss the possibility of organizing the National Folklore Festival during 1995. After expressing their views on the important events of the previous year, the participants in the consultation, taking into account the rich folklore heritage preserved throughout all the ethnic Albanian lands and the efforts made in recent years to revitalize concert life and popular creativity through associations and artistic groups, approved the idea of organizing the National Folklore Festival this year. The 2,400-year-old Berat, a museum city of Albanian cultural traditions, will be the stage for this major artistic event, which will be organized in the spring or autumn of this year. The festival will showcase the finest Albanian folk creativity from Kosovo, Macedonia, Montenegro and Çamëria, and groups from the diaspora in Europe and America will also be invited. GJ.K.

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Regarding the article “Soros: We helped him a lot, but Berisha was not the one we expected,” published in the newspaper “Populli Po” on 7 February 1995 The Office of the Open Society Foundation for Albania (Soros) in Tirana issues the following clarification: The article, which claims to be a summary of an article published by the Greek newspaper “Ta Nea,” quotes employees of the Soros Foundation. We clarify that no employee of this foundation has ever met with journalists from Ta Nea. We also declare that this foundation has never used its funds for bribery or corruption of state authorities, as alleged. It has always made its activities public in the press. Furthermore, regarding the newspaper’s comments on the role of the Soros Foundation in bringing Berisha to power, we declare that we have no knowledge of the matter referred to above. The local foundation has never supported any particular political forces. Before the elections, as is known, this foundation legally brought in 140 tons of paper for the newspapers: “Drita”, “RD”, “Zeri i Rinise”, “Republika”, “Sindikalisti”, “Bashkimi” and “Alternativa SD”. Soros Foundation -Tirana Tirana, 7 February 1995