At the fourth conference of the socialists of the capital ULQINI RESIGNS, META TO HEAD THE PARTY Photo: A. Kamo After Musa Ulqini’s resignation, the chairman of the PSSH, Fatos Nano, proposes Ilir Meta to the conference for the post of chairman of the PS of the city. He was accepted by full consensus. — (Pages 2-3) Photo: A. Kamo

The International Monetary Fund sets out the consequences of this year’s severe unrest GDP is expected to grow above the regional average by 110%, inflation is expected to be below 20%, budget revenues 4.2% higher than in 1995, and the year will be stable. The IMF links the decline in the economy to the growth of the informal market sector and fiscal behavior. The sharp fall in GDP, and high inflation during the third quarter of this year, whose end was affected by the political unrest at the beginning of 1997, is considered in the IMF report to have been more severe than expected, but it may have reached its lowest level in the final quarter. Albanian economic leaders have estimated that GDP fell by around 7-8 percent during the year, while annual inflation at the end of October was around 40%, down from 54% at the end of August. Forecasts have been made that it will fall on an annual basis to around 15% by the end of this year. The slowdown in the devaluation of the currency is thought to be mainly due to the stabilization of the political situation and the positive influence that the stabilization of the political situation had on the foreign exchange market. In September the government approved an average wage increase of 11 percent in the budget sector. The lowest monthly salary was doubled from 3,150 lek to 6,500, while the overall wage fund in the budget sector rose by 12 percent. Such measures also helped prevent a further rise in inflation. Voice of America, in a report broadcast later, describes the spring unrest of the disastrous year 1997 as a dangerous precedent in the country’s recent history. It emphasizes that the fall in GDP was inevitable for a country where the government lost control and institutions were severely damaged. According to information from Tirana, total electricity production was 34% lower than in the same period of 1996. Industrial production, meanwhile, shows a decline of 15% in the first seven months. As an effect of the unrest, according to the IMF report, agricultural production fell by 5.4% and exports by 8%. The movement of people caused the disruption of the fiscal administration and the deterioration of customs management. Budget revenues fell by 34 percent in the seven-month period, while the costs of social care and public order increased. It is stressed that social insurance payments had not been made on time and that the Albanian government is bearing a large part of the additional expenditure. Private lending in the banking system has been very low, while the increase in unpaid electricity bills by public consumers has been highlighted. The main condition for this stabilization is the restoration of trust in state institutions and the return of fiscal and monetary discipline. The report also underlines that economic reconstruction will be slow without improvements in public order and the functioning of the rule of law.

London will be the diplomatic stop today for Albanian Prime Minister Fatos Nano. London will be the diplomatic stop today for Albanian Prime Minister Fatos Nano, hosted by the British government. Prime Minister Nano will use his tour of 11 countries to advance economic relations and business with the British government. In an interview with the BBC, the Albanian prime minister appears to be seeking attention for the low industrial indicators, the country’s presence, and the influence of the leadership class and foreign investors. British Prime Minister Tony Blair and his Albanian counterpart Fatos Nano are expected to discuss the problems of Kosovo and integration into Euro-Atlantic institutions. It was said earlier that London will mark an important stage in the diplomatic itinerary of the prime minister. The Albanian prime minister appears to be seeking first and foremost support for aid and the building of the country’s infrastructure, and the British government made it clear that it would essentially allow this. In addition to recognition by the British government, work on foreign trade and English investments, and the issue of Kosovo and beyond, there is also a tendency toward cooperation with banking circles and with the support of the British government. — (Page 8)

After the government’s talks with the IMF Ambitious projects for 1998 20% wage increase for budget-sector employees 300 million new lek for higher pensions

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ENERGY KESH: PAY THE BILLS, OTHERWISE THERE WILL BE NO ELECTRICITY (Page 5)

BERISHA IN SHKODER MESSAGES ABOUT WAR, DESTRUC- TION AND OTHER BURNINGS (Page 5)