START Warnings earlier in November of possible default on the debt because of lack of hard-currency reserves had prompted a meeting of G-7 officials in Paris on Nov. 6. END START The Nov. 21 agreement confirmed the Oct. 28 memorandum, committing the republics to agree on allocating responsibility for the debt. END START The G-7 countries committed themselves to gaining agreement from other creditors (commercial banks) and to maintaining short-term credits. END START A proposal for a $1,000 million bridging loan, with 104 tonnes of gold as collateral, was not taken up because, Soviet sources said, it raised" social and political problems". END START The amount of Soviet gold remaining was quoted as 240 tonnes by economist Grigory Yavlinsky in October. END START There were 150 tonnes in Western banks as loan collateral. END START END START END START Before the G-7 meeting opened, Russia, Ukraine, Byelorus and Kazakhstan issued a statement on Nov. 18 repudiating agreements signed by the union government with international financial bodies. END START The four republics assumed their responsibility for the Union's debts, but would not accept contracts signed" after the Soviet Union ceased to exist as a single state" [for IMF agreement with Soviet Union see p. 38553]. END START Azerbaijan and Turkmenia had rejected their share of the Soviet Union's foreign debt. END START END START Aid agreements END START END START END START The World Bank signed a $30,000,000 technical aid deal with Gorbachev on Nov. 5. END START On Nov. 20, the USA approved $1,250 million in loan guarantees to buy food and animal feed. END START END START END START The aid would be offered to all 12 republics, but administered through Moscow. END START An accord on food provision in 1992 had been signed on Nov. 5 between the 12 republics, banning restrictions on food exports from the republics, and delegating the conclusion of agreements on purchasing food from foreign states to the IEC. END START END START END START The European Bank for Reconstruction and Development (EBRD) announced its first loans to the Soviet Union, totalling $19,000,000, on Nov. 26. END START END START END START Silayev on a visit to Brussels on Nov. 26-27 signed agreements with Jacques Delors, the President of the European Commission on credits agreed in October [see p. 38538], and held talks on extending these credits. END START END START END START US co-operation in modernizing the agricultural sector was discussed in a meeting between Gorbachev and US officials in Moscow on Nov. 13. END START END START Abolition of fixed exchange rate END START END START END START From Dec. 2, the rouble exchange rate for tourists was to be allowed to float, in what the Financial Times called" another small step towards a partially convertible currency". END START END START END START The tourist rate had been devalued on Nov. 4 by 31.9 per cent, to reach $1.00=47 roubles. END START However, the official and commercial exchange rates remained unchanged at six roubles and seven roubles to the dollar respectively. END START During November there had been difficulties in paying money held in hard currency accounts to foreigners, a sign of the shortage of hard currency in the union account. END START END START The republics END START END START END START Azerbaijan END START END START END START At a Cabinet meeting on Nov. 9, Turkey agreed to recognise Azerbaijan's independence. END START Azerbaijan had made a formal request for recognition on Nov. 5, following an unofficial visit to Turkey by Prime Minister Gasan Gasanov on Nov. 3-4, when he held talks with Turkish leaders. END START END START END START Azerbaijan's August declaration of independence had been confirmed by the republican Supreme Soviet in October [see p. 38538]. END START A spokesman for the Turkish government said that Turkey's relations with Moscow would not be affected. END START Gasanov said on Nov. 20 that Azerbaijan was hoping for increased commercial links, and, as a Turkic speaking nation, would adopt the Latin alphabet in order to increase cultural co-operation with Turkey. END START END START Armenia — President's visit to north America END START END START END START President Levon Ter-Petrosyan visited the USA and Canada on Nov. 14-15. END START His request that US President Bush recognize Armenia's independence was refused, although the US was planning to open a consulate in Armenia in 1992. END START In Canada he visited the large Armenian community and held talks with Prime Minister Brian Mulroney. END START END START Escalation of Nagorny Karabakh dispute END START END START END START On Nov. 26, the Azerbaijani parliament adopted a resolution annulling the autonomous status of the mainly Armenian-populated region of Nagorny Karabakh, which had been under dispute since 1988. END START Henceforth it would be governed by an Azerbaijani National Unity Council. END START A meeting of the Soviet State Council on Nov. 27, to which the Presidents of both Armenia and Azerbaijan were invited, adopted a resolution calling on them to" abrogate all acts that change Nagorny Karabakh's legal status". END START Although aimed at Azerbaijan, technically it also concerned Armenia's claim on the region. END START Both sides accepted the resolution, but Gorbachev's proposition for a 10 km buffer zone was rejected. END START END START END START Azerbaijan's declaration followed a worsening in relations after a helicopter carrying high-ranking republican and military officials among its passengers crashed on Nov. 20, killing 21 people. END START Azerbaijan accused Armenian forces of shooting down the helicopter, while Armenia claimed that the cause had been poor weather. END START Azerbaijan had cut off gas supplies to Armenia on Nov. 5. END START Both Turkey and the USA warned the republics that escalation of the conflict could affect relations. END START END START Kirghizia END START END START END START On Nov. 1, Kirghiz President Askar Akayev reported his satisfaction with his recent visit to the USA, when he had met Bush, spoken at the UN and held talks with businessmen. END START END START END START The Prime Minister of Kirghizia, Nasirdin Isanov, died in a car accident on Nov. 29. END START END START Tajikistan: Presidential elections END START END START END START On Nov. 24, Tajikistan held presidential elections, following the protests of September and October over the republican communist party and its role during the August coup [see pp. 38418; 38538]. END START Rakhman Nabiyev, who had seized power in September, and resigned as chair of the Supreme Soviet during the electoral campaign, was elected president with 58 per cent of the vote and a turnout of 84.6 per cent, according to preliminary results. END START END START END START Nabiyev had led the republic's Communist Party under Brezhnev, and was generally seen as a hard-line conservative. END START His nearest rival in the elections, for which there had been seven candidates in all, was a film producer, Davlar Koudonazarov, who gained only a quarter of the vote, despite being backed by both opposition parties, the Democrats and Islamic Rebirth (whose own candidate had withdrawn). END START Koudonazarov's claim that the voting had been manipulated was supported by the observer from the USSR Supreme Soviet. END START END START Ukraine END START END START END START Ukraine set up a 6,000-strong Border Guard on Nov. 4, drawing troops from Interior Ministry divisions. END START Since they would be stationed on inter-republican boundaries, the Supreme Soviet voted at the same time to work towards a definition of legal state borders with its neighbours by Feb. 1, 1992. END START The remainder of the 33,000 troops belonging to the Interior Ministry would be included in the Border Guard by April 1992. END START END START Chechen Ingushetia crisis END START END START END START During November the mainly Moslem autonomous republic of Chechen-Ingushetia within the Russian Federation demanded its independence after a leadership change in August. END START Yeltsin had to back down from imposing a state of emergency. END START The incident raised fears of the break-up of the Russian Federation, and doubts about Yeltsin's leadership. END START END START END START The communist leadership of Chechen-Ingushetia, which had supported the August coup, was brought down by demonstrations in August in the capital, Grozny. END START President Doku Zavgayev had resigned on Sept. 7 and the Supreme Soviet had been replaced by a provisional 13-member Supreme Council. END START However, this was dismissed in October by the Chechen National Congress (CNC), an opposition body led by Gen. Dzhakhar Dudayev. END START It had an armed branch, the National Guard, which took over KGB headquarters and surrounded the radio and television studios. END START Ingush members of the Provisional Council had resigned, making it clear that they wanted to remain in the Russian Federation. END START The Russian Federation Supreme Soviet sent a delegation to the region, but it was said that Russian Vice-President Aleksandr Rutskoi had exacerbated the situation by giving an ultimatum to the National Guard to disband on Oct. 10, in return for the holding of presidential elections on Oct. 27. END START END START END START On Oct. 24 the RSFSR Supreme Soviet said that the elections called by the CNC were illegal and that only elections organized by the provisional Supreme Council would be recognized. END START Despite this, the elections were held and Dudayev was the victor, defeating nine other candidates, although there were allegations of malpractice. END START END START END START Yeltsin's Nov. 8 declaration of a state of emergency in Chechen Ingushetia was backed by the despatch on Nov.10 of about 650 Interior Ministry troops, who were forced to withdraw, however, when surrounded by armed Chechens. END START The Russian Supreme Soviet overturned the declaration of the state of emergency the following day, ordering instead a weapons blockade (although the republic was already well-armed). END START END START END START Meanwhile, Dudayev had ordered a general mobilization, and claimed a share of Soviet military hardware. END START His supporters hijacked an internal Soviet flight on Nov. 8 and forced it to fly to Ankara, in an attempt to publicize their cause. END START Dudayev claimed that he had received expressions of support from the leaders of Georgia and Azerbaijan, and also from the largely Moslem autonomous republics of Tartaria and Dagestan. END START The post of Prime Minister was assumed by Dudayev on Nov. 18, after the current incumbent resigned, since the Council of Ministers had been disbanded. END START Yeltsin's representative in Chechen Ingushetia was dismissed on Nov. 14, for providing" misleading information". END START Rutskoi, who had forcefully supported the imposition of a state of emergency, defended his decision in the face of increasing criticism. END START END START Georgia END START END START END START President Zviad Gamsakhurdia announced on Nov. 7 and 12 that Georgia had taken over all equipment and facilities belonging to Soviet Interior Ministry troops and the Soviet army stationed on the republic's territory. END START END START END START On Nov. 25, the Georgian Supreme Council voted to lift the state of emergency in areas of South Ossetia, in an effort" to reduce tension in the region" [for developments in October see p. 38358]. END START to USA — Banning of Communist Party END START END START END START Russian Federation — Yeltsin's visit to Germany — Naming of Russian government — Citizenship law — Kozyrev's visit END START END START END START President Yeltsin began a three-day visit to Germany on Nov. 21, his first visit abroad since the attempted coup. END START He met Chancellor Helmut Kohl, leaders of political parties, and President Richard von Weizsäcker. END START END START END START A joint declaration, signed on Nov. 21, noted Russia's commitment to paying its foreign debt, and to re-establishing a German Volga republic; the German side offered support in Russia's transformation to a" market economy-oriented future". END START In a meeting with German businessmen on Nov. 22 Yeltsin described future measures, such as low tax regimes for foreign investors, as an incentive to start up joint ventures. END START END START END START Yeltsin named his government for implementing the economic reforms announced on Oct. 28 [see p. 38537]. END START On Nov. 6, he took on the post of Prime Minister, thus becoming responsible for the Interior, Defence, and Russian KGB. END START Vice President Rutskoi was named head of an operational control centre. END START Gennady Burbulis was named first Deputy Prime Minister. END START Two deputy Prime Ministers were named: Yegor Gaidar, heading economic policy, and Aleksandr Shokhin, in charge of social policy. END START END START END START On Nov. 28, the Supreme Soviet passed a law giving citizenship to Russians living outside the borders of the Russian Federation. END START END START END START This would affect the estimated 26,000,000 Russians in other Soviet and former Soviet republics by extending rights to those who had not taken local citizenship. END START The measure also restored citizenship to 175 cultural figures stripped of their citizenship on emigration, and to those who had joined the Russian emigration to Israel. END START END START END START Andrei Kozyrev, Russian Foreign Minister, visited the USA on Nov. 25-27, meeting Secretary of State James Baker and delivering a message from Yeltsin to President Bush. END START END START END START On Nov. 19 it was announced that Yeltsin had appointed Russia's Deputy Foreign Minister, Andrei Kozlovsky, as special representative to the USA. END START He would work within the Soviet embassy. END START END START END START Yeltsin issued a decree on Nov. 6 banning the Communist Party of the Soviet Union (CPSU) and the Russian CP and nationalizing their property. END START The decree stated that the events of the coup proved that the CPSU was never a political party, but" a special mechanism for exercising political power by merging with state structures or subordinating them to the CPSU". END START END START END START By law, political parties could be banned only by a court decision, which had not been received. END START The original decree of Aug. 23 had suspended CPSU activity" pending juridical inquiry" [see p. 38372]. END START END START END START END START END START EUROPE END START END START END START ALBANIA END START END START END START Economy — Continuing strikes END START END START END START From Nov. 1, controls were removed on the prices of products and services in heavy industry and transport. END START Retail prices of staple foods and consumer goods remained unchanged. END START END START END START The government expressed concern over the breakdown in public order in the Tropojë and Shkodër districts, due to shortages of food and energy. END START On Oct. 31, the People's Assembly had approved a bill to give financial assistance to" persons who remain jobless due to the implementation of economic reform". END START END START END START An announcement by President Ramiz Alia on Nov. 3 warned that police would intervene to stop strikes, which continued during November. END START END START END START There was a further emigration attempt from the port of Durrës on Nov. 5. END START Post Office and health workers staged warning strikes, and in the Fier district, oil industry workers went on strike from Nov. 13, despite an earlier strike having been deemed illegal on Nov. 4 at a meeting of the Council of Ministers. END START University students went on strike, including a hunger strike at Shkodër University. END START END START END START About one-third of the staff of Albanian Radio and Television (RTV) went on strike from Nov. 1 in support of demands by the Independent Radio-Television Trade Union for the resignation of RTV's directors, a demand supported by the Democratic Party, whose deputies boycotted the debate on the status of RTV in the People's Assembly. END START A law passed on Nov. 24 declared RTV to be a state-owned body, under the control of the People's Assembly. END START END START END START The Democratic Party on Nov. 21 denounced the shortage of newsprint — which had prevented the publication of any newspapers for most of November — as a government attempt to control the media. END START END START Political parties END START END START END START On Nov. 1, the government issued a decree nationalizing most of the property of the former ruling Albanian Workers' Party. END START On Nov. 9, the Justice Ministry approved the creation of the Albanian Communist Party. END START The Bratska Political Association of Macedonians, legalized on Sept. 3, was banned on Nov. 9; the Justice Ministry claimed that there were false documents in its application for registration. END START END START Investment agreement with Germany END START END START END START On a visit to Germany on Oct. 31-Nov.1, Foreign Affairs Minister Muhamet Kapllani signed an investment promotion agreement with his German counterpart, Hans-Dietrich Genscher. END START END START END START END START END START EUROPE END START END START END START BULGARIA END START END START END START Bulgarian Cabinet END START END START END START END START New government END START END START END START The first wholly non-communist Bulgarian government since the Second World War, formed following the Union of Democratic Forces (UDF) victory in the October general election [see p. 38539], took office on Nov. 8, when the National Assembly approved the Cabinet by 128 votes to 90. END START On Nov. 13, the National Assembly set the date for presidential elections for Jan. 12, 1992. END START END START END START President Zhelyu Zhelev had asked UDF leader Filip Dimitrov to form a new government, following the Nov. 5 resignation of the outgoing government led by Dimitur Popov. END START END START END START Dimitrov's new Cabinet, of whom nine were also members of the National Assembly, contained some structural changes. END START The Ministries of Education and Science were merged, the Ministry of Foreign Economic Relations was abolished, and a Ministry of Regional Development, Housing Policy and Construction replaced the Ministry of Construction and Architecture. END START For the first time since 1944, the Defence Minister was a civilian. END START END START END START On Nov. 4, the National Assembly elected Stefan Savov as its Speaker. END START It was also proposed that three deputy speakers be elected, one from each parliamentary group, but the USD deputies objected to this, arguing that the Movement for Rights and Freedoms (MRF) was based on (Turkish) ethnicity and thus constitutionally unlawful. END START The USD deputies boycotted the vote, in which Snezhana Botusharova of the UDF and Kadir Dzhalil Kadir of the MRF were elected deputy speakers. END START END START Party developments END START END START END START On Nov. 1 the parliamentary faction of the Bulgarian Socialist Party (BSP — the successor to the Bulgarian Communist Party) became the Parliamentary Union for Social Democracy (USD), and on Nov. 13 it named a shadow cabinet. END START END START END START The Federation of Democracy Clubs held a conference on Nov. 2-3 to establish a Liberal Party. END START The chair of the Federation, Petko Simeonov, was elected chair of the new party. END START END START END START On Nov. 14, the BSP organized a rally in protest at the reading of a bill to confiscate its property. END START END START International aid — Foreign relations END START END START END START The Secretary-General of the Western European Union (WEU), Willem van Eekelen, made an official visit to Bulgaria on Oct. 31-Nov. 3 and held talks with Zhelev. END START The then Prime Minister Popov expressed concern in his talks with van Eekelen about a military build-up in Turkey. END START END START END START The United States granted most favoured nation (MFN) status to Bulgaria on Nov. 13, thus easing tariffs on Bulgarian imports to the USA. END START The US Agency for International Development (USAID) granted an additional US$10,000,000 to Bulgaria on Nov. 15, as well as announcing a $50,000,000 fund for the development of private businesses. END START According to USAID, the US administration had increased aid to Bulgaria from $2,200,000 in 1990 to $88,000,000 in 1991. END START END START END START Dimitrov and representatives of the Bulgarian government met a delegation from the European Bank for Reconstruction and Development (EBRD) on Nov. 12. END START END START END START The European Communities (EC) approved emergency payments to Bulgaria on Nov. 11 [see p. 38587], and on Nov. 13 President Zhelev led a Bulgarian delegation to Brussels, where EC Commission President Jacques Delors told him that talks on an association agreement between Bulgaria and the EC would begin by Dec. 15. END START END START END START On Nov. 14, in a speech to the North Atlantic Council (the highest authority of the North Atlantic Treaty Organization — NATO), Zhelev suggested holding regular political consultations between Bulgaria, Greece and Turkey. END START Zhelev also called for NATO aid to Bulgaria for economic development, in view of the NATO aid given to Greece and Turkey and the" fragile balance of forces in that region". END START END START END START On Oct. 30, the then Defence Minister, Col.-Gen. END START Yordan Mutafchiev, had made the first visit to China by a Bulgarian Defence Minister in 30 years. END START END START Energy crisis END START END START END START Periodic power cuts were imposed from Oct. 29 after electricity supplies from the Soviet Union were suddenly suspended. END START It was suggested this was due to the unilateral Ukrainian decision to cut energy supplies. END START END START END START On Oct. 30, the nuclear reactor at Kozloduy was reported to be working at half-capacity and there were reports on Nov. 12 of a further technical failure at the plant, which had been partially closed in September for safety reasons [see pp. 38448-49]. END START END START END START END START END START EUROPE END START END START END START CZECHOSLOVAKIA END START END START END START Discussion of Federal Constitution END START END START END START During November discussion of the future constitutional structure of Czechoslovakia intensified; after the failure of negotiations between federal and republican leaders, President Vaclav Havel proposed changes to prevent paralysis of the state. END START The move to hold a referendum (as proposed by Havel in September — see p. 38449) on the possibility of a split into separate Czech and Slovak republics also reached deadlock. END START END START END START A demonstration was held in the Slovak capital, Bratislava, on Oct. 28, on the occasion of the 73rd anniversary of the Czechoslovak Republic, in support of a continuing federation. END START The meeting, which was attended by Havel and leaders of the federal and republican governments, was disrupted by Slovak nationalists, and Havel left without making a speech. END START On Nov 1, 13 Moravian and Silesian parties signed a charter demanding equal and independent status within Czechoslovakia. END START END START END START The idea of a referendum had been supported by a petition with 516,000 signatures; any such referendum would have to be held five months before the elections, planned for June 1992. END START END START Havel's proposals for common state END START END START END START On Nov. 3, Havel invited federal and republican leaders to talks on the future constitution, and made proposals for implementing a five-part agreement between the Czech and Slovak parliaments on a common state. END START END START END START The timetable for negotiations would include approval of the agreement first by the republican parliaments and then by the Federal Assembly by the beginning of December. END START The Czech and Slovak parliaments would then approve republican constitutions in accordance with the agreement. END START The new Federal Constitution would be passed by the spring of 1992 and the three constitutions — federal, Czech and Slovak — would take effect simultaneously by May 1, 1992 at the latest. END START Independently of this process, the Federal Assembly would discuss calling a referendum in December. END START END START END START On Nov. 11-12 the presidiums of the Czech and Slovak parliaments met near Bratislava in joint session to discuss Havel's proposals. END START In a communiqué they said that difficulties still remained, over differing perceptions of the future state structure, but they undertook to adopt a treaty on its principles by the end of November. END START END START END START The Slovak side was insisting that the treaty should have legal force, while the Czech side opposed this, fearing that it might supersede the Constitution. END START The Slovak parliament on Nov. 15 passed a resolution approving its presidium's position, but on Nov. 19 the Slovak government nevertheless voted by 12 to eight to accept the view that the treaty was a basis for discussion, rather than a legal document; it also agreed to concede further powers to the common state. END START END START END START Meanwhile, on Nov. 13 the Slovak parliament had defeated a proposal to declare the sovereignty of Slovakia, on a vote postponed from Nov. 8 to allow the completion of the negotiations between the Czech and Slovak parliaments' presidiums [for September motion on Slovak sovereignty in September see p. 38449]. END START END START Federal Assembly deadlock on referendum — Havel's proposals END START END START END START The Federal Assembly proposed minimum conditions for the continuation of a joint state on Nov. 5, and on the following day it passed a bill detailing procedures for holding a referendum. END START (A Referendum Law had been passed on July 18 — see p. 38351 — but on Oct. 8 the Assembly had delayed its discussion of the issue.) END START However, on Nov. 13 the Assembly failed to approve any of the six versions of a question to be put in a referendum. END START END START END START The bill had established that the question had to require" a clear yes or no". END START In the face of continuing failure to reach any agreement on the future of Czechoslovakia, the federal government unanimously adopted a resolution pledging itself to submit draft proposals for the legislative and executive authority to the republican and federal parliaments. END START END START END START On Nov. 17, Havel broadcast his proposed amendments to the referendum law and the existing Constitution. END START END START END START The President, he said, should be able to call a referendum independently, and should be obliged to declare a referendum if 20 per cent of voters in one republic called for one. END START Havel also proposed that a new constitution should first be initialled by the republican parliaments, and called on the federal government quickly to draft its proposals on executive authority [see above]. END START END START END START Havel's most controversial proposals concerned legislative procedures for the Federal Assembly, since, he said," the present Federal Assembly can easily find itself in a situation when it will be totally incapable of passing any fundamental laws vital for the functioning of the state". END START He proposed to allow the dissolution of the Federal Assembly and the institution of presidential rule until new elections. END START The federal representative body should be altered to constitute a Federal Assembly and an independent Federal Council, formed of representatives from the republican parliaments with direct participation in proposing legislation. END START He also proposed an electoral law, details of which remained unspecified. END START END START END START Demonstrations were held in favour of Havel's appeal, including a meeting of 50,000 people in Prague on Nov. 21. END START END START Delay in privatization plans END START END START END START The implementation of privatization legislation was delayed due to a decision on Nov. 6 by the Czech Minister for Privatization, Tomas Jezek, who said that too little time had been allowed for compiling the list of companies suitable for privatization. END START Federal Finance Minister Vaclav Klaus described the decision as" disloyal", and the Slovak privatization ministry also opposed the delay. END START END START END START Vouchers for kcs1,000 (about US$34), enabling the citizen to choose companies in which to purchase shares, had been on sale since Oct. 1, and the list of enterprises to be privatized was available on Nov. 20. END START The Czech government decided to delay the placing of orders for shares until after March 15, 1992. END START END START END START The Federal government had decided on Sept. 26 to investigate the source of money being used in small-scale privatization. END START Klaus had objected to the move, saying that he" did not know any method of distinguishing in practice dirty money from clean money". END START END START Civil code END START END START END START On Nov. 5 the Federal Assembly approved amendments to the Civil Code, bringing court procedures into line with the Bill of Rights approved in January [see p. 37974]. END START It also approved a government draft for a commercial code to take effect from Jan. 1, 1992. END START END START Death of Husak END START END START END START Gustav Husak, first secretary of the Czechoslovak Communist Party from 1968 to 1987, and President until the revolution of 1989, died on Nov. 18 in Bratislava, aged 78. END START END START END START END START END START EUROPE END START END START END START HUNGARY END START END START END START Currency devaluation — Banking law END START END START END START The forint was devalued by 5.8 per cent from Nov. 8, in an effort to improve the competitiveness of Hungarian products abroad. END START On Nov. 14, the Financial Times reported the passing of a banking act, intended to speed the privatization of Hungary's banks, describing it as" the most significant reform of the financial sector since… 1987". END START The law limited any shareholder, including the state, to a 25 per cent share, and established capital requirements consistent with Bank for International Settlement norms. END START END START Independent Smallholders controversy END START END START END START The national board of the Independent Smallholders Party (FKgP), a member of the governing coalition, withdrew the party mandate from two government ministers, Gyula Kiss, Labour Minister, who was accused of concealing former membership of the Hungarian Socialist Workers' Party (HSWP), and Ferenc Jozsef Nagy, Minister without Portfolio, and two state secretaries as of Nov. 1. END START END START END START The deputy leader of the parliamentary FKgP faction, Sandor Olah, was expelled from the party on Nov. 1 for opposing the move to expel the ministers, and two other deputies were expelled. END START The party announced the creation of a" documentation office", to uncover" crimes against Magyardom". END START END START END START On Nov. 4, however, FKgP parliamentary deputies passed a vote of confidence in the expelled ministers and state secretaries and suspended the faction membership of Jozsef Torgyan, FKgP chair and leader of the parliamentary group. END START END START END START Torgyan claimed that there was division between" the unified membership and leadership" and individual officials, and that the parliamentary faction risked splitting in two over the issue. END START At a party congress on Nov. 16 Torgyan warned that Antall would be going against parliamentary democracy if he were to keep" politicians who no longer have the FKgP's backing" in the coalition. END START END START Bill allowing prosecution of former communists END START END START END START On Nov. 4 the Országgyülés (parliament) passed a bill to allow prosecution for the crimes of murder and treason committed between Dec. 21, 1944, and May 2, 1990 — the period between the first meeting of the independent Hungarian parliament after the Soviet occupation and the convening of the present parliament. END START END START END START The bill was passed by 197 votes to 50 with 74 abstentions. END START President Göncz, himself imprisoned under Communist rule, asked the Constitutional Court for a ruling on the new law, which he considered to be ill-defined. END START The new law followed a bill approved by parliament on Oct. 31 granting compensation to people deported or imprisoned under the Communist regime between 1939 and 1989, and the families of those unlawfully executed. END START This was expected to affect around 250,000 people and to cost the state between 6,000 million and 6,500 million forints (about US$80-86,000,000) in 1992. END START END START Relations with NATO and UK END START END START END START Gen. John Galvin, Supreme Allied Commander Europe, visited Hungary on Oct. 30-Nov. 2 and had talks with Prime Minister Jozsef Antall, and Defence Minister Lajos Für, following Antall's visit to NATO headquarters on Oct. 28. END START President Arpad Göncz began a five-day state visit to the United Kingdom on Nov. 18. END START END START END START END START END START EUROPE END START END START END START ESTONIA END START END START END START Citizenship law END START END START END START The Estonian parliament voted 64 to 14, with two abstentions, on Nov. 6 to reinstate the 1938 Law on Citizenship. END START The law granted Estonian citizenship automatically to all Estonians; immigrants applying for citizenship would be required to have lived for two years in the country. END START Marriage to an Estonian gave automatic eligibility for citizenship. END START [For Latvian and Lithuanian citizenship laws see this page; p. 38585.] END START END START END START Re-enactment of the law had been demanded by the Congress of Estonia [see p. 38420], to emphasise the legal continuity of the republic. END START While the passing of the law ended weeks of debate, some aspects were left unclear and its implementation remained to be decided by the government. END START The Supreme Council voted on Nov. 18 to introduce visa controls on the Estonian borders from Jan. 10, 1992, to" step up the campaign against crime and stop illegal migration into the republic". END START END START END START The Constitutional Assembly, set up on Sept. 7 to draft a new constitution [see p. 38420], continued its debates, having run over the Nov. 15 deadline. END START END START Talks with Soviet negotiators — Other foreign relations END START END START END START On Nov. 10-11, the first session of negotiations between Estonia and the Soviet Union as independent states was held. END START According to a communiqué issued after the talks, the areas for negotiation had been set. END START These were state borders, citizenship, withdrawal of army units from Estonia, and legal issues. END START The leader of the Soviet delegation, Anatoly Sobchak, a member of the Political Consultative Council, said that the issue of the possible return of territory to Estonia had to be dealt with in separate negotiations with the Russian Federation. END START END START END START Estonia established diplomatic relations with Cuba on Nov. 12, and with Mongolia on Nov. 20. END START The Danish Prime Minister, Poul Schlüter, visited Estonia on Nov. 5-6, and signed a treaty of mutual investment and insurance opportunities with his Estonian counterpart, Edgar Savisaar. END START Schlüter said that similar treaties with Latvia and Lithuania would be concluded in future. END START END START Conscription END START END START END START Conscription into an Estonian army began on Nov. 11. END START Service, for 18 months, was compulsory for men over 19 who had not served in the Soviet army. END START END START END START END START END START EUROPE END START END START END START LATVIA END START END START END START Citizenship law END START END START END START Controversy over the citizenship issue continued in November, the Latvian Supreme Council having passed proposals on Oct. 17 which proposals included stringent residency, linguistic and oath of allegiance requirements for ethnic non-Latvians (48.2 per cent of the population of the republic according to 1989 census figures). END START END START END START Under the basic criteria for the restoration of Latvian citizenship and naturalization, approved by the Supreme Council by 93 votes to 30 with seven abstentions, citizenship would be granted automatically to anyone who had held Latvian citizenship before 1940 (the start of Soviet occupation), and to their descendants, even if they were not currently resident in Latvia. END START However, dual citizenship would not be allowed. END START Anyone else wishing to receive Latvian citizenship had (i) to have lived in Latvia for at least 16 years; (ii) to be conversationally fluent in Latvian and conversant with the Latvian constitution; (iii) to renounce Soviet (or any other) citizenship; and (iv) to swear allegiance to the Latvian republic. END START Opposition deputies said that the bill would establish" an apartheid regime", as citizenship had implications for obtaining work and property ownership. END START [For Estonian citizenship law see this page.] END START END START Nationalization of military property END START END START END START On Nov. 5, the Supreme Council adopted a decision nationalizing all fixed Soviet military property on Latvian territory, and declaring void any transactions in army property made since Aug. 24. END START A Soviet presidential spokesman said on Nov. 6 that the decision could have no legal force as it was a unilateral measure. END START END START Government reorganization END START END START END START On Nov. 12 Prime Minister Ivars Godmanis proposed a reorganization of the government in order to move toward the formation of a Cabinet of ministers. END START The proposals, adopted by the Supreme Council, would establish 16 ministries in the Latvian government, in place of the former 23. END START There would be 17 ministers, who would each" be obliged to stimulate the privatization of his sector". END START The Justice Ministry would be given higher profile, and a Defence Ministry would be created. END START END START END START END START END START EUROPE END START END START END START LITHUANIA END START END START END START Citizenship — Currency law END START END START END START A two-year term within which any permanent resident of the republic could request Lithuanian citizenship, declared in 1989 [see p. 37045], expired on Nov. 4. END START On Nov. 6 preliminary results showed that 87 per cent of those eligible had acquired citizenship, but 370,000 people who had not taken Lithuanian citizenship effectively became stateless or foreign citizens; dual citizenship had not been permitted. END START There were calls to revoke the mandate of deputies who had failed to register as Lithuanian citizens. END START [For Estonian and Latvian citizenship laws see p. 38585.] END START END START END START The Lithuanian parliament adopted on Nov. 5, by 76 votes to none, a law on issuing currency, and set up a committee to determine the implementation of the new currency, the litas. END START In a speech to parliament, Prime Minister Gediminas Vagnorius warned of the difficulties which would be incurred in trade with Soviet republics, were the litas to be introduced immediately. END START END START Price liberalization — Confiscation of communist party property END START END START END START On Nov. 11 retail prices of consumer goods were liberalized and food prices went up. END START According to the Soviet news agency Tass, prices of dairy products would rise by about 25 per cent and bread by as much as 100 per cent. END START To compensate for this, state grants to students, pensioners and the low-paid would rise by 30 to 40 per cent. END START On Nov. 19 industrial prices were also freed. END START END START END START On Nov. 7 the parliament voted to appropriate the property of both the Soviet and the Lithuanian Communist Party (CP) without compensation (the CP had been banned in Lithuania from Aug. 23 — see p. 38373). END START END START Foreign relations END START END START END START NATO established diplomatic links with Lithuania on Nov. 22. END START Diplomatic relations between Lithuania and Armenia were established on Nov. 21. END START On Nov. 7 it was announced that Lithuania and Bulgaria had signed a trade and most-favoured nation treaty in Sofia. END START Lithuania thus became the third Soviet republic to conclude an economic agreement with Bulgaria, following Russia and Byelarus [see p. 38350]. END START END START END START A delegation from the European Parliament visiting Lithuania held talks with chair of the Supreme Council (de facto President) Vytautas Landsbergis on Nov. 5. END START Landsbergis made a visit to Italy on Nov. 16-19, during which he met Italian political leaders and was received by the Pope. END START END START END START END START END START EUROPE END START END START END START POLAND END START END START END START Deadlock over formation of new government END START END START END START Complex political negotiations continued throughout November over the formation of a coalition government, following the October elections [see pp. 38535-36]. END START After an attempt by former Solidarity parties to form a government had ended in failure, the centre-right agreed to form a coalition led by Jan Olszewski of the Centre Alliance, a development resisted by President Lech Walesa. END START END START END START Walesa had asked his former Solidarity colleagues in the Democratic Union — the largest party in the Sejm (lower house of parliament) — to put forward a candidate for Prime Minister, and on Nov. 8 he asked Broneslaw Geremek, a Democratic Union leader, to form a government. END START On Nov. 13, however, Geremek resigned, saying that he had failed to win support for a left of centre coalition. END START END START END START A centre-right coalition of the Confederation for Independent Poland, Liberal Democratic Congress, Centre Alliance, Peasant Alliance and the Christian National Union, proposed Olszewski as Prime Minister on Nov. 14. END START Walesa, however, was concerned that Olszewski could not ensure the continuation of the economic reform programme or a stable parliamentary majority, and instead apparently snubbed the centre-right by appointing his former driver Mieczyslaw Wachowski to negotiate on Nov. 19. END START Walesa was reported to prefer the reappointment of outgoing Prime Minister Jan Krzysztof Bielecki of the Liberal Democratic Congress. END START END START END START Bielicki formally submitted his resignation at the inaugural session of the new Sejm on Nov. 25, despite a plea from Walesa to remain. END START On Nov. 26 the Sejm postponed the acceptance of Bielecki's resignation until Dec. 6. END START On Nov. 28 the would-be centre-right coalition offered to form a" government of experts" to bring stability. END START END START END START At the inaugural session the Sejm elected as its Speaker Wieslaw Chrzanowski, of the Christian National Union. END START END START Links between CPSU and former Polish communists END START END START END START The former communist party, now the Socialist Democracy of the Republic of Poland (SDRP) confirmed on Nov. 7 that it had received an interest-free loan worth more than US$1,200,000 in January 1990 from the Communist Party of the Soviet Union (CPSU). END START END START END START Former first secretary Mieczyslaw Rakowski said that he had paid the money back. END START Disclosures made in the Soviet press forced the former communists to admit other contacts with the CPSU after the collapse of communism in Poland, including a meeting in March 1991, at which plans were discussed to finance East European post-communist parties with cash from private companies. END START END START END START The Prosecutor's Office in Warsaw opened an investigation into breaches of currency regulations on Nov. 28. END START END START Changes in Presidential Chancellery END START END START END START Jaroslaw Kaczynski, head of the Presidential Chancellery and Minister of State, and Lech Kaczynski, also a Minister of State, resigned on Oct. 31. END START Janusz Ziolkowski was appointed head of the Presidential Chancellery, and Jerzy Milewski was appointed Minister of State and also as Secretary of the Committee for National Defence, replacing Maciej Zalewski. END START END START Protests over pensions change END START END START END START Walesa signed a bill to revalue pensions on Nov. 8, but announced that the law was to be amended immediately to reduce the number of people whose pensions would be cut as a result. END START The pensioners' organization threatened to defend the former pensions law through the courts. END START On Nov. 19 the Ombudsman, Ewa Letowska, called on the Constitutional Tribunal to declare the revaluation unconstitutional. END START END START New agreements with Germany END START END START END START On Nov. 8 Poland and Germany agreed to de-restrict the use of territorial waters bordering the two countries and to ease restrictions on cross-border road traffic. END START END START END START END START END START EUROPE END START END START END START ROMANIA END START END START END START New constitution END START END START END START On Nov. 21, the Parliament, meeting as the Constituent Assembly, endorsed a new constitution guaranteeing pluralism, human rights, and a free market. END START The voting reached the necessary two-thirds majority, with 414 in favour and 95 against. END START The constitution would be confirmed by a referendum within 30 days. END START END START END START According to the Financial Times of Nov. 22, the constitution owed much to the French system, allowing substantial presidential powers. END START The final text defined as unconstitutional attempts to achieve territorial separation; some deputies had wanted the qualification of" territorial" to be omitted, but President Ion Iliescu had spoken against this proposal, associated with an anti-Hungarian faction. END START END START Convertibility of leu END START END START END START Prime Minister Theodor Stoloyan announced on Nov. 6 that the Romanian currency would be made internally convertible, thus ending the two-tier system of exchange rates. END START END START END START The new rate would be fixed at around 180 lei to the United States dollar, or midway between the official rate and the currency market floating rate. END START Stoloyan promised continued state control of prices for basic goods until May 1992. END START However, a Hungarian radio report of Nov. 13 spoke of panic buying. END START END START Foreign aid — Agriculture crisis END START END START END START The European Communities (EC) granted additional loans to Romania at a meeting of Finance Ministers in Brussels on Nov. 11 [see also G-24 summit this page; for aid to Bulgaria see p. 38584. END START END START END START This followed a visit beginning on Oct. 13 by an EC delegation to assess Romania's requirements. END START Italy granted aid worth $50,000,000 and credits of nearly $100 million to Romania during the Food and Agriculture Organization (FAO) session in Rome, it was announced on Nov. 19. END START END START Relations with Moldava END START END START END START The Moldavan Prime Minister, Valery Muravsky, made a one-day visit to Romania on Nov. 2. END START In a press statement, he noted that governmental exchanges would" speed up the process of the Republic of Moldava's integration with Romania". END START A commodity exchange agreement was reported on Nov. 13, by which Moldava would supply farm produce in exchange for Romanian consumer goods. END START END START END START A delegation from the Western European Union (WEU), led by its Secretary-General, Willem van Eekelen, visited Romania on Nov. 4. END START During the NATO summit in Rome [see pp. 38600-01] Romania had made known its willingness to co-operate with NATO, and on Oct. 30 had announced the renegotiation of its friendship treaty with the Soviet Union. END START The existing treaty, signed in April but not yet ratified, included a clause preventing either side from joining an alliance against the interests of the other. END START END START Political parties END START END START END START On Nov. 4 a political grouping, the Union of the Democratic Left, was created, open to all centre-left parties. END START END START END START A merger of the Republican Party and the Social-Liberal Party-20th May, to form a new grouping retaining the name Republican Party, was announced on Nov. 16. END START END START END START The Liberal Party (formerly the National Liberal Party — Young Wing) withdrew from the Charter for Reform and Democracy (a grouping formed in July 1991 including the ruling National Salvation Front) on the grounds that it was too closely linked with the structures of the former government. END START END START Trade union umbrella body END START END START END START Three trade union confederations, Fratia, Alfa, and the National Council of Free Trade Unions of Romania, formed a National Advisory Council of Romanian Unions, claiming at a press conference on Nov. 9 to represent 4,000,000 of the country's 4,500,000 trade union members. END START END START END START The National Advisory Council was formed, it claimed, not in opposition to Stoloyan, but because of the involvement of unrepresentative union leaders in negotiations with the government. END START On Nov. 16, it signed a protocol with the government on co-operation in negotiating work contracts and pensions. END START END START END START END START END START EUROPE END START END START END START BALTIC STATES END START END START END START Baltic leaders in USA END START END START END START On Oct. 28, the Prime Ministers of Estonia, Latvia and Lithuania, Edgar Savisaar, Ivars Godmanis and Gediminas Vagnorius, signed agreements with United States Vice-President Dan Quayle, integrating the Baltic states into the US Overseas Private Investment Corporation (OPIC). END START END START END START The Corporation promoted private business and joint ventures, which it was hoped, would aid their economies. END START Quayle said that Congress was being asked for US$15,000,000 in economic aid to the Baltic states, as against $14,000,000 in the previous fiscal year. END START END START END START The Baltic delegations were in Indianapolis to attend a meeting of the International Baltic Economic Commission (IBEC) at the Hudson Institute on Oct. 28-30. END START The IBEC, established in 1990, brought together Western advisers and officials from the Baltic states to advise them on the transformation to a market economy. END START It was also announced that volunteers from the US Peace Corps would be going to the Baltic states. END START END START Baltic Assembly END START END START END START Parliamentary delegations from the Baltic states met in Tallinn, the Estonian capital, on Nov. 8-9 for discussions on forming a co-ordinating body. END START There was opposition to the idea of a joint parliament, but, as a compromise, a consultative interparliamentary body was set up. END START The presidium and committees were to be formed by December, and it was hoped to hold the first session of the Baltic Assembly by January 1992. END START END START END START END START END START EUROPE END START END START END START EASTERN EUROPE END START END START END START G-24 summit END START END START END START The Foreign Ministers of the G-24, a grouping formed by the Organization for Economic Co-operation and Development (OECD) countries and international financial organizations and whose assistance to central and eastern Europe was being co-ordinated through the European Communities (EC), met in Brussels on Nov. 11. END START For the first time Albania attended the meeting, at which EC Commission Vice-President Frans Andriessen reported that US$32,000 million had been given in aid since early 1990. END START END START END START The United States and Japan were criticized for leaving the bulk of contributions to the European members of G-24. END START However, an EC threat to contribute only half of the amount deemed necessary for Bulgaria and Romania (respectively $800 million and $1,000 million) did not materialize, as EC Finance Ministers, meeting separately, had already decided on aid to these countries without the precondition of equal contributions from their G-24 partners. END START Participants in the G-24 meeting recognized the need for urgent food aid to Romania and Albania, as well as Bulgaria's problem of electricity shortages after the partial closure of the Kozloduy nuclear power station [see pp. 38350; 38448]. END START END START END START END START END START EUROPE END START END START END START FINLAND END START END START END START Devaluation — Wages pact — Treaty with Soviet Union END START END START END START On Nov. 15, acknowledging the seriousness of the economic crisis in Finland, the centre-right government of Esko Aho devalued the markka by 12.3 per cent. END START END START END START The markka, which had been pegged to the European currency unit (ECU) in June [see p. 38297], had been allowed to float temporarily by the Bank of Finland the previous day, after speculative pressure had caused short-term interest rates to rise to 30 per cent and resulted in a heavy capital outflow. END START It was now pegged again within the range of between 5.39166 and 5.72516 to the ECU. END START END START END START On Nov. 28 employers and unions concluded a two-year pay deal, under which wages would be frozen in 1992 but would rise the following year if inflation exceeded 5.4 per cent. END START END START New treaty with Soviet Union END START END START END START The preliminary text of a new good neighbourliness and mutual co-operation treaty with the Soviet Union was agreed at talks on Nov. 5-6. END START It had been agreed in September that a new accord should be negotiated to replace the 1948 Treaty of Friendship, Co-operation and Mutual Assistance [see pp. 38444-45] and a first round of talks took place in October. END START END START END START Under the agreement both parties would not use force against each other or threaten to do so. END START (The 1948 treaty had gone further, committing each party to defend the other against an aggressor.) END START In accordance with the Final Act of the Conference on Security and Co-operation in Europe (CSCE), the inviolability and territorial integrity of the two countries (which shared a 1,260 km border) would be respected. END START END START END START END START END START EUROPE END START END START END START NORWAY END START END START END START Cabinet reshuffle END START END START END START On Nov. 15 two ministers, Eldrid Nordboe and Matz Sandman, resigned for family reasons. END START The Trade and Shipping portfolio was taken over from Nordboe by Björn Tore Godal, leader of the Storting's standing committee on foreign affairs, while Sandman's portfolio, Children's and Family Affairs, went to Grete Berget, a close personal adviser to Prime Minister Gro Harlem Brundtland. END START END START END START END START END START EUROPE END START END START END START SWEDEN END START END START END START Economic measures END START END START END START The new centre-right coalition government led by Carl Bildt [see p. 38542] announced a series of specific measures in early November aimed at" revitalizing the country's economy and industry" and" introducing a new era of enterprise, growth and development". END START END START END START Proposals for spending cuts totalling 9,000 million kronor (US$1,660 million) were put forward on Nov. 5; a reduction of value added tax (VAT) from 25 per cent to 18 per cent on a range of basic goods and services on Nov. 6; reductions in the tax on capital income from 30 per cent to 25 per cent and a similar reduction in the tax on share profits on Nov. 8; and the privatization of 35 major state-owned companies in stages from early 1992 onwards and the lifting of restrictions on foreign investors buying into or taking over Swedish companies on Nov. 11. END START END START END START END START END START EUROPE END START END START END START UNITED KINGDOM END START END START END START By-elections — Appeal Court rulings END START END START END START Conservative by-election losses END START END START END START In three parliamentary by-elections on Nov. 7, the ruling Conservative party lost two seats (and had now suffered seven consecutive by-election defeats in previously Conservative-held seats), while the main opposition Labour party held Hemsworth. END START [For last by-elections see pp. 38355; 38200]. END START The government had let it be known on Sept. 30 that it would not now call a general election in 1991. END START END START END START The Liberal Democrats won Kincardine and Deeside with an 11.4 per cent swing from the Conservatives; this gave the Liberal Democrats their 10th seat in Scotland, overtaking the Conservatives (nine). END START The Scottish National Party candidate came third and Labour fourth. END START A particular issue was the application by a local hospital for NHS trust status [for which see p. 38500], which was opposed even by the Conservative candidate. END START END START END START Labour won Langbaurgh with a 3.6 per cent swing from the Conservatives, in a campaign marred by alleged racial insinuations against the successful Labour candidate, Ashok Kumar. END START END START END START Labour held Hemsworth, where the Conservatives were beaten into third place by the Liberal Democrats. END START The successful candidate had been imposed by the Labour Party nationally after it had refused to place on the selection short-list the locally preferred nominee, Ken Capstick, who was a close associate of Arthur Scargill, president of the National Union of Mineworkers. END START END START Court of Appeal rulings on" Tottenham Three" END START END START END START The Court of Appeal on Nov. 25 overturned the conviction of Winston Silcott, sentenced to life imprisonment in 1987 for the murder of Police Constable Keith Blakelock in October 1985 during a violent disturbance at Broadwater Farm estate in Tottenham, north London [see p. 34256]. END START (Silcott remained in prison, to complete a separate life sentence imposed in 1986 for an unrelated murder committed in 1984.) END START END START END START Mark Braithwaite and Engin Raghip, also sentenced to life imprisonment for the murder of PC Blakelock, were released on bail on Nov. 27 pending the court's final ruling on their cases. END START Their convictions were formally quashed on Dec. 5. END START END START END START The main issues before the Appeal Court were the authenticity of confessions said to have been made by the defendants while under detention, and the conduct of the police. END START Detective Chief Superintendent Graham Melvin was now under suspension from the Metropolitan Police. END START [For March 1991 overturn of" Birmingham Six" convictions see p. 38111; for June overturn of" Maguire Seven" convictions see p. 38301.] END START END START Death of Robert Maxwell END START END START END START Robert Maxwell, controlling shareholder in Mirror Group Newspapers (MGN) and in Maxwell Communication Corporation (MCC), died on Nov. 5 after falling from his yacht off the Canary Islands. END START END START END START Massive speculation immediately arose over his death, particularly in the light of recent allegations that Maxwell and a senior Daily Mirror journalist, Nick Davies, had both had involvement with the Israeli secret intelligence service Mossad; Davies had been dismissed on Oct. 29 on the grounds that he had lied in relation to a meeting which he was said to have had in 1985 with a United States arms dealer. END START Further speculation centred on the financial state of the main Maxwell companies. END START END START END START END START END START EUROPE END START END START END START NORTHERN IRELAND END START END START END START Increasing violence — Deployment of extra troops END START END START END START Reacting to an upsurge of violence in Northern Ireland, the UK government announced (i) on Nov. 13 that the Royal Ulster Constabulary (RUC) was to be strengthened by 441 officers; and (ii) on Nov. 27 that a further army battalion would be sent to Northern Ireland, increasing the number of British regular soldiers there from 10,500 to 11,000. END START END START END START A Irish Republican Army (IRA) bomb attack on the top-security Musgrove Park hospital in Belfast on Nov. 2 killed two British soldiers and injured seven other people, including a five-year-old girl. END START A hospital porter, Liam Dougan, was charged on Nov. 6 with the murder of the two soldiers. END START END START END START A soldier of the Ulster Defence Regiment (UDR) was killed and another seriously injured in a missile attack in the village of Bellaghy, County Londonderry, on Nov. 6. END START END START END START Three attacks in Belfast on the night of Nov. 12-13, which left four people dead and seriously injured two others including a baby, were claimed by the IRA. END START A Roman Catholic taxi driver was shot and badly injured on Nov. 13 by loyalist paramilitaries apparently in retaliation for the IRA murders. END START END START END START Two Roman Catholics and a Protestant were shot dead on Nov. 15-16 as they left the factory where they worked in Craigavon, south west of Belfast. END START END START END START On the UK mainland, two IRA bombers were blown up as they planted a bomb in St Albans, Hertfordshire, on Nov. 15. END START They were later identified by the IRA as Frankie Ryan, 25, and Patricia Black Donnelly, 18. END START The bomb exploded, apparently prematurely, in an empty bank building near a concert hall where the band of the Blues and Royals was at the time giving a charity performance in front of some 350 people. END START END START Overturning of extradition order by Irish Supreme Court END START END START END START The Supreme Court in Dublin on Nov. 15 overturned an order for Anthony Sloan to be extradited to the UK. END START END START END START Sloan, a convicted member of the IRA, faced a 20-year prison sentence in Northern Ireland for possessing a machine gun. END START He escaped from Crumlin Road prison in Belfast in 1981, but subsequently spent more than seven years in prison in the Republic for the breakout. END START The Court ruled that under existing law, possession of a firearm as a political offence was not subject to the extradition laws. END START On the same day, the Irish government promised a detailed study of the loophole in the extradition law, which prevented extradition for possession of, but would have allowed it for use of, a firearm. END START END START Human rights report END START END START END START The US-based human rights group Helsinki Watch published on Oct. 2 a report on Northern Ireland, detailing" extensive human rights violations". END START It was especially critical of killings, punishment shootings and" kneecappings" and hostage-taking by paramilitary groups, but also recommended stricter controls on police and army use of lethal force, an end to destructive house searches, better investigation of extra-legal actions by the security forces, and the restoration of the rights of detainees to be brought promptly before a court. END START END START END START END START END START EUROPE END START END START END START IRELAND END START END START END START Haughey's survival of party no confidence vote END START END START END START At a specially convened meeting of the parliamentary group of the ruling Fianna Fáil party on Nov. 9-10, Prime Minister Charles Haughey survived a vote of no confidence in his leadership. END START During the meeting, which lasted more than 14 hours, party members voted in an open vote by 55 to 22 in favour of Haughey remaining leader. END START END START END START A motion calling on the party to end his leadership had been tabled on Nov. 6 by backbenchers led by Sean Power, who were critical of Haughey's handling of recent financial scandals in two state companies and his close personal association with several of the figures named in the controversies. END START END START END START Haughey's government survived a vote of no confidence in the Dáil (parliament) on Oct. 18 by 84 voted to 81. END START END START END START Just before that vote Fianna Fáil and the Progressive Democrats, the junior coalition partner, had reached agreement on tax reforms which had been the subject of three months of negotiation and which had threatened to bring down the government. END START A radical overhaul of the tax system would seek to reduce income tax but curtail" the vast range of exemptions, shelters, allowances and concessionary tax rates". END START END START END START Haughey's own position had been called into question over the involvement of close associates in a series of financial scandals, in particular at the state telecommunications monopoly Telecom Éireann, whose chairman Michael Smurfit resigned over a property deal on Sept. 24 at Haughey's instigation, and at the recently privatized sugar group Greencore (formerly Irish Sugar PLC), whose chief executive Chris Comerford had also resigned in September amid allegations of illegal share dealings by senior executives. END START Inquiries were set up in both cases, while Haughey announced on Sept. 22 that a serious fraud agency was to be established. END START END START END START Haughey dismissed two ministers before the no confidence vote. END START END START END START Albert Reynolds, the Finance Minister, was dismissed on Nov. 7 after he attacked Haughey, saying that he was not satisfied that the strong and decisive government necessary for the well-being of Ireland still existed. END START A second minister, Padraig Flynn, responsible for the environment, who had also made clear he would vote against Haughey, was dismissed on Nov. 8. END START END START END START Reynolds said that he would support a formal attempt to oust the Prime Minister and on Nov. 8 said that he would seek the Fianna Fáil leadership if Haughey was defeated. END START A day later he claimed that he had been the victim of a dirty tricks campaign, saying that his house had been under surveillance and that a carefully organized smear campaign had been waged against him, apparently concerning loans alleged to have been made to his petfood company several years previously. END START END START Cabinet reshuffle END START END START END START A Cabinet reshuffle was announced on Nov. 13. END START The new Cabinet was approved by the Dáil on the same day. END START END START END START Vincent Brady, the Fianna Fáil chief whip, was named Defence Minister. END START Brendan Daly moved from Defence to Social Welfare, Michael Woods from Social Welfare to Agriculture and Food, Michael O'Kennedy from Agriculture and Food to Labour, and Bertie Ahern from Labour to Finance in place of Reynolds. END START Noel Davern was appointed Education Minister, Mary O'Rourke switched from Education to Health, and Rory O'Hanlon from Health to Environment in place of Flynn. END START END START END START Haughey's original choice for the Defence post, James McDaid, withdrew hours after his nomination when opposition leaders accused him of being a Sinn Féin" fellow-traveller" in that he had opposed the extradition to the United Kingdom of an IRA escapee, James Pius Clarke. END START McDaid denied any links with the IRA and withdrew after it became clear that the junior partner in the government, the Progressive Democrats (PDs), would not vote for a reshuffle including him. END START He later admitted he had provided an affidavit for Clarke, who escaped from the Maze prison where he was serving 18 years for the attempted murder of a member of the Ulster Defence Regiment. END START In the affidavit, McDaid said he had seen Clarke at a party in County Donegal on the night in 1977 of the alleged murder attempt in Northern Ireland. END START END START END START END START END START EUROPE END START END START END START BELGIUM END START END START END START Extremist gains in elections END START END START END START In an early general election on Nov. 24 the traditional parties lost votes to the extremist anti-immigrant Vlaams Blok in Flanders and, to a lesser extent, to the environmentalist Ecolo party in Wallonia. END START The following day Wilfried Martens, who had served as Prime Minister of different coalitions since December 1981, resigned. END START It was expected to be months before a government could be formed. END START END START Collapse of outgoing coalition END START END START END START The general election, due by Jan. 19, 1992, had been called on Oct. 7, after Flemish and Walloon differences had undermined the coalition on two occasions. END START END START END START The Flemish nationalist Volksunie pulled out of the coalition on Sept. 29 over the renewal of export licences for two Walloon arms exporting companies with contracts for Saudi Arabia and the United Arab Emirates. END START The Flemish Socialists and Volksunie (which had pacifist tendencies) objected to the renewal, while the Walloon parties were concerned to preserve jobs. END START In the event ad hoc committees for Wallonia, Flanders and bilingual Brussels were set up to decide on arms exports, the renewal was approved, and replacements were appointed for the two Volksunie ministers. END START However, the coalition was then split again, over telecommunications contracts signed unilaterally by the (Flemish) Posts and Telecommunications Minister Marcel Colla (which would have benefited Flemish companies), and over the allocation of television licence fees to the regions (which Wallonia needed to help pay teachers' wages — see also p. 38465). END START END START Election results END START END START END START Of the 7,144,884 registered voters 6,592,441 went to the polls, representing a turnout of 92 per cent — voting was theoretically compulsory. END START Of the votes cast 7 per cent were null or void. END START END START END START The two Christian Social parties were the CVP (Christelijke Volkspartij) from Flanders and the PSC (Parti social chrétien) from Wallonia. END START The two socialist parties were the PS (Parti socialiste) from Wallonia and the SP (Socialistische Partij) from Flanders. END START The two liberal parties were the PVV (Partij voor Vrijheid en Vooruitgang) from Flanders and the PRL (Parti réformateur libéral) from Wallonia. END START The FDF (Front démocratique des francophones bruxellois) came from Brussels. END START END START END START In addition to electing the 212 members of the Chamber of Representatives (lower house of parliament), voters also elected the 106 directly elected members of the 184-member Senate (upper house). END START The distribution of these 106 seats was CVP 20 seats (22 previously), PS 18 (20), SP 14 (17), PVV 13 (11), PRL 9 (12), PSC 9 (9), Vlaams Blok 5 (1), Volksunie 5 (8), Ecolo 6 (2), Agalev 5 (3), Rossem 1 ( -), FDF 1 (1). END START END START Factors in protest vote END START END START END START The strength of the protest vote against the mainstream parties was seen as reflecting popular disillusionment with their unsuccessful attempts to resolve the country's long-running linguistic problems and to complete constitutional reforms [see p. 38465]. END START Many European newspaper reports also put the surge in support for Vlaams Blok in the context of rising anti-immigrant feeling across Europe [see p. 38593]. END START END START END START Anti-immigrant feeling had not in the past been strong in Belgium, although in May young north African immigrants had rioted in Brussels, prompting the government to reinforce its policy of integrating immigrants [ibid.]. END START According to Le Monde of Nov. 22 the number of asylum seekers (who came especially from eastern Europe) had risen to 1,700 per month, and a new law to speed the processing of asylum applications stipulated that these should be processed within two months, after which an applicant recognized as a refugee could take up provisional residence while waiting for a definitive decision. END START There were 900,000 foreigners in Belgium (of whom one-third came from Africa) out of a total population of 9,800,000. END START END START END START *Member of outgoing Martens coalition. END START END START END START **List headed by Jean-Pierre Van Rossem, 46, an anarchist and former multi-millionaire, who was arrested for fraud immediately before the election. END START END START END START ***Seat won by Front national, with 1.1 per cent of vote. END START Half a dozen other parties also contested the elections without securing representation. END START END START END START END START END START EUROPE END START END START END START NETHERLANDS END START END START END START Euthanasia bill END START END START END START A bill effectively legalizing euthanasia was submitted to parliament on Nov. 8. END START It was intended to give legal sanction to regulations introduced in November 1990, under which a doctor intending to perform euthanasia was obliged to consult a second doctor and to inform the coroner after the patient's death. END START The procedure covered all cases of euthanasia expressly requested by the patient, of assisted suicide, and of switching off life-support systems for patients in a coma or severely handicapped new-born children. END START END START END START Under the existing law, helping someone to die was a criminal offence punishable by up to 12 years' imprisonment, but this had rarely been invoked in recent years amid great public debate and controversy on the ethics and possible modalities of euthanasia. END START The bill represented a compromise aimed at accommodating the strong reservations of many Christian Democrats, the senior government coalition partner. END START END START END START According to a report commissioned by the government, cases of euthanasia in the strict sense accounted for 2,300 deaths annually (out of a total of around 130,000), assisted suicides for 400, and switching off life-support systems for 1,000. END START END START Attacks on government offices END START END START END START Members of Radical Anti-Racist Action (RaRa) claimed responsibility for two bomb attacks on the main building of the Ministry of the Interior and the home of a junior minister at the Ministry of Justice on Nov. 13. END START The group declared in a statement that the attacks were a protest against the government's asylum policy, which it claimed" writes off, excludes and dehumanizes people". END START END START END START END START END START EUROPE END START END START END START GERMANY END START END START END START Cabinet and party changes END START END START END START On Nov. 25 Wolfgang Schäuble left the Cabinet to become parliamentary leader of the Christian Democratic Union (CDU), i.e. effectively number two in the party after Federal Chancellor Helmut Kohl; he succeeded Alfred Dregger, 71. END START His Interior portfolio was taken over by Rudolf Seiters, whose post as Head of the Chancellery went to Friedrich Böhl. END START END START END START The CDU's choice of Schäuble, 49, who had been confined to a wheelchair since an attempt on his life in October 1990 [see p. 37763], was the last of a series of leadership elections by all four main parties in November. END START Within the ruling coalition, the Liberal Democrats (FDP) and the Christian Social Union (CSU) both re-elected their chairs (respectively Otto Graf Lambsdorff, 64, and federal Finance Minister Theo Waigel, 52). END START The opposition Social Democrats (SPD) meanwhile chose as their new parliamentary leader on Nov. 12 Hans-Ulrich Klose, 54, currently party treasurer and a former mayor of Hamburg (1974-81). END START Hans-Jochen Vogel had announced his intention to step down as leader of the SPD parliamentary group on Oct. 28, having already relinquished the chair of the party to Björn Engholm in May [see p. 38199]. END START END START Other senior appointments END START END START END START On Oct. 18 the Bundesrat (upper house) unanimously elected Alfred Gomolka, Minister President of Mecklenburg-West Pomerania, as its president for the coming year, the first holder of this office from what had been East Germany. END START END START END START On Oct. 1 Gen. Klaus Naumann took over as Inspector-General of the Armed Forces (Bundeswehr) in succession to Adml. END START Dieter Wellershoff. END START END START Law on access to Stasi files END START END START END START On Nov. 14 the Bundestag approved legislation on public access to the files which the former East German state security police (or" Stasi") had kept on 6,000,000 East Germans (one in three of the population). END START END START END START Under the legislation individual victims of Stasi defamation would be able to see and use their records to restore their reputation. END START However, publication of records by the press would be only be permitted if authorized by the commission which had been set up to administer the files. END START (This body was headed by Joachim Gauck, an east German Lutheran pastor who had been a co-founder of Neues Forum.) END START The German journalists' trade union (DJV) criticized the new law, which, it said, represented" the most serious effort at limiting freedom of the press" since the time of Nazi Germany. END START END START Agreement on withholding tax END START END START END START On Nov. 12 the Cabinet announced plans to introduce a 25 per cent withholding tax on investment income from January 1993. END START A similar 10 per cent tax had been announced in 1987 [see p. 35723] with effect from January 1989 but was dropped in April 1989 after it had provoked a flight of capital abroad [see pp. 36597-98]. END START This time the impact of the tax was softened by large tax-free allowances for personal savers and exemptions for foreigners. END START END START Coal industry END START END START END START On Nov. 11 Economics Minister Jürgen Möllemann reached an agreement with mine owners, electricity companies and trade unions which would reduce annual coal output from 70,000,000 to 55,000,000 tonnes by the end of the decade. END START Government subsidies would be reduced and the workforce cut from 130,000 to 100,000. END START END START Visit by Yeltsin END START END START END START Russian President Boris Yeltsin visited Germany on Nov. 21-23 (his first foreign visit since the August coup attempt in the Soviet Union). END START He and Kohl signed a joint declaration which, while stopping short of formal recognition of Russia, committed both parties to the closest future co-operation in international relations and economic affairs. END START END START END START Yeltsin gave a firm commitment to establishing an autonomous republic for ethnic Germans near the city of Volgograd. END START This was seen as important in persuading the approximately 2,000,000 ethnic Germans in the Soviet Union not to migrate westwards. END START END START END START The Soviet Defence Minister, Gen. Yevgeny Shaposhnikov, had visited Germany on Nov. 11-13 for discussions on bilateral issues, including in particular the withdrawal of Soviet troops from German soil, and on the rapidly changing security situation in the Soviet Union. END START END START END START END START END START EUROPE END START END START END START AUSTRIA END START END START END START FPÖ gains in Vienna elections END START END START END START The right-wing Liberal Party (FPÖ), campaigning on an anti-immigrant platform and led by the populist Jörg Haider, more than doubled its vote in Vienna in municipal elections on Nov. 10, to become the second largest party in the city parliament. END START The Social Democratic Party (SPÖ) led by mayor Helmut Zilk lost the absolute majority of votes which it had held in Vienna since the end of the Second World War, although, because of the complex proportional system of apportioning seats, it retained an absolute majority of seats. END START END START END START The SPÖ won 47.7 per cent of the vote and 52 seats (54.9 per cent and 62 seats at the last elections in November 1987 — see p. 35792); the FPÖ won 22.6 per cent and 23 seats (9.7 per cent and eight seats in 1987); the Austrian People's Party (ÖVP) won 18.1 per cent and 18 seats (28.4 per cent and 30 seats in 1987); and the Green Alternatives won over 9 per cent and thus entered the parliament for the first time with seven seats (having won just under 5 per cent in 1987). END START END START END START The FPÖ gains in Vienna, which had separate provincial status, followed similarly strong performances in provincial elections in September and October [see pp. 38448; 38543]. END START Haider had been dismissed as governor of Carinthia in June 1991 for praising the Nazis' employment policies [see p. 38298]. END START The party's slogans included" Vienna for the Viennese" and the FPÖ claimed that there were a further 100,000 illegal residents in Vienna, in addition to the 240,866 foreigners with legal residence permits (out of a total city population of 1,500,000). END START END START Presidential candidates END START END START END START During November the three largest parties announced their candidates for the presidential elections scheduled for April 26, 1992, to elect a successor to Kurt Waldheim, who had in June 1991 declined to stand for a second term [see p. 38298]. END START END START END START Rudolf Streicher, 52, Minister of Transport and Public Economy since 1987 [whose name was inadvertently excluded from the list on p. 37926], was announced as the SPÖ candidate on Nov. 14. END START Thomas Klestil, 59, a former United States ambassador and UN permanent representative, was put forward by the ÖVP the following day. END START Heide Schmidt, 43, who was deputy to Haider in the FPÖ but on the party's liberal wing and was described as a skilled politician respected outside the FPÖ, was nominated by the FPÖ on Nov. 21. END START END START END START END START END START EUROPE END START END START END START FRANCE END START END START END START Proposed constitutional reforms — Adoption of budget END START END START END START In a television interview on Nov. 10 President François Mitterrand foreshadowed a package of constitutional reforms. END START END START END START Full details, he said, would be presented in 1992 after the March regional elections. END START The reforms, which would be subject to a referendum, would include a reduction of the current seven-year presidential term, probably to five years, and the reinforcement of the role of the National Assembly and the Constitutional Council. END START In addition an element of proportional representation would be introduced in time for the 1993 elections, as already proposed at a Socialist Party convention on Oct. 12-13 with the formation of electoral alliances with minority parties in mind. END START END START END START The use of Article 49.3 of the Constitution (enabling adoption of legislation without a vote unless the opposition tabled and won a vote of no confidence) to push the final draft of the 1992 budget [see p. 38544] through the National Assembly early on Nov. 16 renewed controversy over certain aspects of the Constitution, critics pointing out that almost all sections of the budget had been adopted without a vote. END START The motion of censure tabled by the opposition under the procedure was defeated on Nov. 18 by 289 votes to 264. END START END START FN immigration proposals END START END START END START Bruno Mégret, deputy leader of the extreme right-wing National Front (FN), revealed on Nov. 16 a list of 50 working proposals to halt immigration and control immigrants. END START The controls, he said, would not affect European Community (EC) citizens or those from countries which shared a" common destiny, culture, religion and civilization" with France. END START END START END START The proposals, based on the premise that" cosmopolitan" laws put French people at a disadvantage, effectively placed immigrants in a separate category of those who could not be joined by their families and should not be eligible for certain benefits, while French people would take priority for jobs and housing. END START Naturalization would be established as the only means of gaining nationality, all naturalizations since 1974 would be reviewed, and the automatically renewable 10-year residency permit would be replaced by a two-year permit. END START Illegal immigrants would be expelled using chartered transport after being housed in camps set up at ports and airports. END START To stop" false tourism", visitors from certain countries would have to pay a deposit on entering France and to undergo an AIDS test. END START Quotas for the children of migrants would be introduced in school classes, ghettos would be dismantled, and mosques and Islamic schools restricted. END START Adherence to international agreements such as the Schengen agreement on free movement among EC member states [see p. 37535] would be cancelled. END START END START Discovery of Jewish files END START END START END START An anti-Nazi lawyer, Serge Klarsfeld, discovered in mid-November that a Second World War filedrawn up by French police in October 1940 on the instructions of the Gestapo and containing information on all Jewish people in Paris was still in existence at the Ministry of War Veterans, where it was apparently used to check pension claims. END START Its existence, had been officially denied in 1980. END START END START Other internal developments END START END START END START Industrial unrest END START END START END START A three-week strike over pay at the motor company Renault's main engine and gearbox plant at Cléon ended on Nov. 8 after police had stormed the plant on Nov. 5 and removed barricades to allow a degree of production to recommence. END START Talks ensued with management, after which the General Confederation of Labour (CGT) instructed employees to return to work. END START The dispute, which also affected the firm's other factories, cost Renault an estimated F1,400 million (about US$251 million) and caused production losses of 70,000 cars. END START END START END START On Nov. 16 police marched through Paris in support of better pay and an improved career structure, despite an Interior Ministry ban on the march. END START Thousands of doctors, nurses and other health workers also marched on Nov. 17 in protest at government restrictions on health service expenditure and over pay. END START Nurses ended a six-week dispute on Nov. 8 when the government offered a deal on pay and shorter hours. END START END START Illegal funding of political campaigns END START END START END START The trial opened in Paris on Nov. 25 of 63 people from property development and other companies accused of fraudulent billing to cover up illegal contributions of about F500,000,000 to right-wing parties' election campaigns. END START Two days later Gérard Monate, head of the now-dissolved consultancy Urba-Gracco, and eight others went on trial for channelling electoral funds worth F3,000,000 to the Socialist Party's 1988 campaign using similar means. END START However, 27 politicians who had been named before the trial were protected by a retrospective amnesty approved by the National Assembly in 1990 which covered illegal funding. END START END START END START The two cases had prompted the establishment of an all-party commission to investigate the financing of political parties. END START Its report, published on Nov. 21, concluded that despite recent legislation covering the public financing of parties represented in parliament, illegal practices continued. END START The commission proposed further legislation, state contributions in proportion to a party's share of votes, tax relief on membership fees and the publication of party accounts. END START END START END START A former senior Finance Ministry official, Alain Boublil, was charged on Nov. 7 with insider trading in connection with the takeover by the state aluminium corporation Pechiney of American National Can (ANC), a subsidiary of Triangle Industries, in 1988. END START END START END START Information published in Le Figaro in September 1991 following Swiss investigations appeared to confirm that, as speculated in the press at the time, Roger-Patrice Pelat, a friend of Mitterrand who died in March 1989 [see p. 36706], had bought a large number of Triangle shares via a Swiss company, Experta Treuhand, only days before the Pechiney-ANC deal. END START END START Transfer of ENA to Strasbourg END START END START END START In continuation of the policy of decentralization in progress over the past few years, Prime Minister Edith Cresson announced on Nov. 7 that the École Nationale d'Administration (ENA), the elite civil service school, was to be transferred from Paris to Strasbourg by 2000 to strengthen links with Europe. END START Other state institutions were also to leave Paris. END START END START END START END START END START EUROPE END START END START END START SPAIN END START END START END START Neo-fascist demonstration END START END START END START Some 10,000 neo-Fascists from Spain and elsewhere assembled in Madrid's Plaza Oriente on Nov. 17 to commemorate the 16th anniversary (on Nov. 20) of the death of Generalissimo Francisco Franco. END START END START END START The annual gathering was on this occasion attended by supporters of far-right groups in Austria, Belgium, Germany and Italy. END START Paramilitary dress was worn and Nazi banners waved. END START More than 100 police earlier in the day prevented demonstrators from laying wreaths on the graves of German pilots of the Condor region who died fighting for Franco during the Spanish Civil war. END START END START END START END START END START EUROPE END START END START END START ITALY END START END START END START Lombardy League victory END START END START END START Local elections in the city of Brescia, Lombardy, on Nov. 25 produced an unexpected win for the separatist Lombardy League. END START With 24.4 per cent of the vote, the League scored its most important electoral success since its first appearance, under the name of the Lombardy Regional Party, in 1987. END START END START END START Although the Christian Democrats (CD), who had controlled the city council since the end of the Second World War, won only 94 fewer votes than the League — translating as 24.3 per cent of the vote and 7.6 per cent down on the last elections — the Brescia poll was widely interpreted as signalling a disillusionment among voters with existing electoral options. END START END START END START The Lombardy League had polled 19 per cent of the vote in local elections throughout Lombardy in May 1990, becoming the second most important party in the region [see pp. 37468-69]. END START In the latest poll, support in Brescia for the Socialist Unity Party (PUS-formerly the PSI) fell from 15.5 per cent to 10.3 per cent. END START END START END START The Lombardy League advocated effective autonomy for the region, and an end to what it regarded as the squandering of locally created wealth by central government. END START It also argued for immigration controls and the repatriation of those immigrants without jobs or qualifications. END START The League's leader, Umberto Bossi, announced on Nov. 27 that with his party now occupying 14 seats on the 50-seat city council — one more than any other party — he intended to appoint a mayor and put together a coalition adminstration. END START END START Bill on minority languages END START END START END START On Nov. 21 the central Chamber of Deputies approved a bill endorsing a number of dialects and locally used languages for optional use in primary schools, government offices, and broadcasting. END START The legislation was largely inspired by the priority which the regional parties gave to preserving local cultural identities. END START END START END START One the most widely used dialects included in the bill was Sardinian; others were Ladino, Catalan, and the Occitan dialect existing mainly in southern France. END START French, German, Albanian, Greek, Slovene and Croatian were similarly recognized in specified parts of Italy. END START Local authorities were to decide how the legislation might be applied in communities where at least 15 per cent of the inhabitants spoke one of the" minority languages". END START The right-wing Italian Social Movement (MSI) and the Republican Party (RP) unsuccessfully opposed the legislation, which was subject to Senate approval. END START END START END START END START END START EUROPE END START END START END START GREECE END START END START END START General strike — EC criticism END START END START END START A 24-hour general strike in protest against the government's economic policy was called on Nov. 7 by two principal unions and had the support of the opposition Panhellenic Socialist Movement (Pasok). END START END START END START The strike was called by the General Confederation of Greek Workers (GSEE) and the civil service union Adedy, both of whose leaders were members of the Pasok central committee. END START A procession of 30,000 demonstrators marched to the Parliament building, where they presented a petition calling for action against unemployment and the increasing cost of living, and a halt to the privatization programme. END START Although the budget for 1992 was still in preparation, the Economy Ministry had already announced public-sector salary increases for 1992 of 6 per cent (with inflation anticipated to fall to 10-12 per cent). END START END START END START A government representative denounced the strike as politically motivated. END START The socialists organized a further show of strength on Nov. 15 when Pasok leader Andreas Papandreou addressed a mass demonstration, the largest since the April 1990 elections, outside the GSEE headquarters. END START Papandreou called for an early general election (elections were not due until 1994), describing the conservative New Democracy (ND) administration as" an operetta government"; it was ready to sell everything, he said," even the Acropolis", and had brought the country to the edge of bankruptcy, put democracy at risk, and made poverty and unemployment" a daily reality". END START END START END START A report by the Commission of the European Communities (EC), details of which were published by the Economy Ministry on Nov. 4, called for at least another year of economic stringency, noting that by the end of 1991 (the first year of the three-year stabilization plan which the EC had required when making its February 1991 loan — see pp. 37968; 38478) the government would have failed to meet its targets for the reduction of inflation and of the public-sector deficit. END START The second EC loan tranche, worth ECU600,000,000 (about uS$750 million), was due early in 1992. END START Tax revenues had increased, but not as much as planned, the report said, criticizing the government's failure to bring under control the increasing problem of tax evasion. END START END START END START END START END START EUROPE END START END START END START TURKEY END START END START END START Turkish Cabinet END START END START END START END START Formation of coalition government END START END START END START A protocol for a coalition between the True Path Party (DYP) and the Social Democratic Populist Party (SHP) was signed on Nov. 19. END START The DYP deputy chairman Suleyman Demirel, 67, was to be Prime Minister. END START The Cabinet announced the following day comprised Erdal Inonu, the SHP leader, as Deputy Prime Minister and Minister of State, 17 Ministers heading specific ministries and 14 other Ministers of State. END START The DYP contributed 20 ministers and the SHP 12. END START END START END START On Nov. 30 the new Cabinet was approved by a National Assembly in which the coalition government had a combined total of 266 of the 450 seats. END START END START END START The new Foreign Minister, Hikmet Cetin, was an SHP member of Kurdish origin, and the Justice Minister Seyfi Oktay was also from the SHP. END START DYP members controlled all other key ministries, with Nevzat Ayaz as Defence Minister and Ismet Sezgin as Interior Minister. END START The overall management of the economy became the responsiblity of a DYP Minister of State, Tansu Ciller. END START Another Minister of State, Mehmet Kahraman had a brief to follow up measures to improve human rights. END START END START Özal's continuation as President END START END START END START Following the Oct. 20 general election Demirel had reaffirmed his campaign pledge to remove President Turgut Özal from office, on the grounds of his alleged constitutional abuses and corruption. END START By late November, however, Demirel was understood to have secured from Özal an undertaking that in future he would not stray beyond his constitutional role as President. END START In return he would be allowed to continue in office, with his term not due to expire until 1996. END START END START END START On Nov. 2 three possible drafts for constitutional changes to the procedure for electing a president had been announced by Demirel. END START All would have had the effect of removing Özal. END START The DYP needed, however, a three-fifths parliamentary majority in order for such changes to be made. END START By Nov. 4 Demirel was reportedly contemplating a temporary alliance to this end, to include not just the SHP but also the Islamic fundamentalist Welfare Party (RP). END START Such an alliance was unacceptable to a number of DYP deputies and to the SHP; the RP had said that it would co-operate only if an Islamic leader was first agreed on to replace Özal. END START END START END START Demirel had also, according to The Month in Turkey newsletter of Nov. 10, rejected an offer by the outgoing Motherland Party (ANAP) Prime Minister, Mesut Yilmaz, for the ANAP to provide a DYP government with" tacit support" for the first 500 days, although the ANAP was regarded as closer in its ideology to the DYP than was the SHP. END START END START Coalition policy document — Kurdish policy END START END START END START On Nov. 25 a programme agreed on by the coalition partners was announced in the National Assembly. END START It planned for a more open democracy to include a revision of" anti-terrorism" legislation and improvements in the field of human rights, media censorship and academic freedom. END START The document stated that Kurdish cultural rights were to be recognized and that Kurdish regions would enjoy increased autonomy in local government. END START END START END START Investment would be encouraged in the underdeveloped south-east region, and allegations of human rights abuses there would be scrupulously investigated. END START Strong measures would continue to be taken against the Kurdish guerrillas in the region, with the proviso that they should not enfringe human rights. END START END START END START During his election campaign Demirel had spoken of the need for a strong hand in dealing with Kurdish guerrillas. END START His new position reflected the fact that the SHP, now his coalition partner, included 22 deputies representing a Kurdish party, the People's Labour Party (HEP), which had had its official recognition withdrawn. END START At the opening of parliament on Nov. 6, two of these deputies caused an outcry when they protested against the reference in the oath of allegiance to the unity and indivisibility of the" great Turkish nation". END START END START END START Interviewed on the radio on Nov. 2, Demirel criticized support given by Democratic Left Party (DSP) leader Bulent Ecevit to proposals for the creation of a Turkish-controlled buffer zone in northern Iraq in order to allow the activities of Kurdish Workers' Party (PKK) guerrillas to be supressed. END START Demirel maintained that" when putting this fire out the important thing is to approach the regional people with sympathy and affection". END START He was similarly conciliatory on policy towards Cyprus and Greece, observing that" if the leaders of the two countries use Turkish-Greek relations as tools in internal politics, a solution will be harder to reach". END START END START END START The new government's policy document promised a new constitution to replace the one formulated under military rule in 1982. END START It also outlined an economic programme including tax reform, the restructuring of state enterprises, and a reduction in inflation without the introduction of harsh austerity measures. END START END START Dissolution of right-wing alliance END START END START END START On Nov. 15 the RP dissolved its electoral alliance with the neo-fascist Nationalist Work Party (MCP-Milliyetci Calisma Partisi — leader Alpaslan Turkes). END START The two parties had together secured 62 seats — 19 of them occupied by MCP members, who now announced that they would serve as independent deputies. END START END START Extension of state of emergency END START END START END START On Oct. 31 the state of emergency which had applied in the south-eastern provinces since 1987 was renewed following a meeting on Oct. 31 of the National Security Council. END START It was also planned to intensify the military campaign against the Kurdish Workers' Party (PKK), with conscripts to be replaced by mobile commando teams in early 1992. END START END START Sentencing of activists — Prison closure END START END START END START A mass trial by the Second Martial Law Court of Istanbul of 1,243 alleged militants of the Dev Sol (" Revolutionary Left") group concluded on Nov. 1, almost nine years and eight months after it had begun. END START One person was sentenced to death, 41 sentenced to life imprisonment and 555 to terms of imprisonment of up to 36 years. END START END START END START On Nov. 25 the new coalition government announced that it was to close the prison in the north-western town of Eskisehir where human rights groups had alleged that torture of political prisoners took place. END START All political prisoners (totalling some 200) were shortly to be transferred elsewhere. END START Earlier in the month prisoners in seven prisons had begun hunger strikes in reponse to the evidence of torture in the maximum-security prison, which had been opened in October. END START END START END START END START END START EUROPE END START END START END START EUROPEAN COMMUNITIES END START END START END START Agreements with Hungary, Czechoslovakia, and Poland END START END START END START On Nov. 22, after a week's delay, association agreements between the European Communities (EC) and Czechoslovakia, Hungary and Poland were initialled in Brussels. END START END START END START The agreements, under discussion since February [see pp. 38115; 38443-43], provided for free trade within 10 years and the possibility of eventual EC membership for the three east European countries. END START The agreements were due to be signed on Dec. 16, after which they required ratification by the European and national parliaments. END START END START END START Safeguards for the Spanish steel industry were incorporated in an additional protocol, the talks having been held up over Spain's concern that cheap steel exports from the three countries would disrupt its domestic industry. END START Other protocols covered measures protecting EC textile manufacturers and farmers [ibid.]. END START [For EC aid to the Soviet Union see pp. 38538-39.] END START END START END START END START END START EUROPE END START END START END START COUNCIL OF EUROPE END START END START END START Accession of Poland END START END START END START On Nov. 26 Poland became the third eastern European country after Hungary and Czechoslovakia [see p. 38503], to join the Council of Europe. END START Poland's accession followed the holding of free multiparty elections on Oct. 27 [see pp. 38535-36] and brought the number of member countries to 26. END START END START Court of Human Rights ruling on Spycatcher END START END START END START On Nov. 26 the European Court of Human Rights ruled that the United Kingdom government had been in breach of the Convention on Human Rights in attempting to prevent three newspapers from publishing extracts from Spycatcher, the memoirs of the former MI5 officer Peter Wright [see pp. 35537-39; 36155-56; 36502-03; 37158; 37784]. END START END START END START The unanimous decision found the UK in breach of Article 10 guaranteeing freedom of expression when it had banned the Observer, Guardian, and Sunday Times newspapers from printing extracts from the book after it was published in the United States in July 1987. END START However, the Court also ruled by 14 votes to 10 that the UK government had been justified, in the interests of national security, in preventing the newspapers from publishing material from the book before then. END START The government was ordered to pay costs of £100,000 to each newspaper. END START The long-running legal battle was estimated to have cost newspapers and the UK government £3,500,000 in total. END START The ruling brought to 28 the number of violations of the Convention by the UK government. END START END START END START END START END START EUROPE END START END START END START EUROPE END START END START END START Immigration issues END START END START END START Support for anti-immigrant politics in many west European countries grew in late 1991, fuelled by the belief that a" flood of immigrants" posed an economic and cultural challenge. END START Governments and organizations such as the European Communities (EC) and the Council of Europe sought steps to contain both the influx of migrants, many of whom came from the Soviet Union and eastern Europe, and the rise of racist sentiment. END START END START END START An EC Commission report delivered to EC governments on Oct. 9 recommended that they should take measures to restrict illegal immigration and to harmonize procedures on asylum and that the situation of legal immigrants and genuine refugees within the EC should be improved. END START Asylum applications within the EC had risen from 169,000 in 1988 to 327,000 in 1990. END START END START END START Immigration and asylum issues had thus far been subject only to intergovernmental co-operation within the EC (notably through the so-called Trevi group), but some member states were seeking to bring this within the orbit of EC competence in negotiations on European political union due to be concluded at the Maastricht summit on Dec. 9-10. END START END START Anti-immigrant feeling in individual countries END START END START END START Recent elections had shown significant gains by right-wing groups campaigning on anti-immigrant platforms, notably in Austria [see pp. 38448; 38543; 38590], in Belgium [see p. 38589], in Bremen in Germany [see p. 38447] and in Sweden [see p. 38444]. END START END START END START Racist attacks in Germany, particularly those by neo-Nazis against Gastarbeiter (" guestworker") hostels in the east [see p. 38447], attracted most attention because of the country's Nazi past. END START There was no agreement among the parliamentary parties on modifying Germany's traditionally liberal constitutional provisions on asylum [see p. 38544], although agreement was reached to house asylum seekers in camps by January 1992. END START By contrast, on Nov. 9 over 100,000 demonstrators in 100 German cities protested against racism on the anniversary of" Kristallnacht" in 1938, when the wholesale destruction by the Nazis of synagogues and Jewish property took place [see pp. 3323-24]. END START [For November anti-racist attack on Netherlands Interior Ministry see p. 38590.] END START END START END START There were attacks on asylum centres in Switzerland [see p. 38497 for increase in number of asylum seekers in Switzerland]. END START END START END START In Italy, where tougher immigration legislation laws had been approved in 1990 [see p. 37507-08], the government sought to repatriate thousands of Albanian refugees during 1991 as well as to provide economic assistance to Albania to reduce the influx [see p. 38105-06; 38400]. END START END START END START In the United Kingdom legislation was introduced in early November to close" loopholes" in immigration law and to streamline the processing of immigrants' claims in order to reduce a backlog of over 60,000 cases. END START Over 60 per cent of these cases were from Africa, 21 per cent were from south Asia and 3 per cent were from eastern Europe. END START The number of asylum seekers had grown from 5,000 in 1988 to an expected 46,000 in 1991. END START END START END START In France, the National Front (FN) leader Jean-Marie Le Pen made openly racist proposals on immigration [see p. 38591] which in some cases had been echoed by politicians of other political parties [see pp. 38445-46], manoeuvring in advance of regional elections in March 1992. END START The socialist government announced tougher measures against illegal immigrants in July [see p. 38354] and in October the National Assembly approved legislation restricting illegal immigration [see p. 38544]. END START END START END START In Spain, where visa requirements had been introduced for north Africans in May 1991 [see p. 38201; right-wing commemoration of 16th anniversary of Franco's death see p. 38591]. END START END START OECD and AI reports END START END START END START A report by the Organization for Economic Co-operation and Development (OECD) in late July 1991 maintained that fears voiced at a Council of Europe conference on east-west migration in January 1991 of a massive influx of immigrants from eastern Europe [see p. 37969] were proving not to be well-founded. END START Nevertheless, it noted, in Germany 44 per cent of asylum applications came from eastern Europe in 1989, while in Austria visa requirements had been imposed for Bulgarians, Poles and Romanians during 1990 [see pp. 37969; 38464]. END START END START END START A report by the human rights organization Amnesty International (AI) on Nov. 26 criticized the" unfair barriers" erected against asylum seekers in Europe. END START Governments were criticized for not putting enough pressure to end human rights violations in countries where the asylum seekers originated. END START END START Berlin conference END START END START END START Interior or Justice Ministers from the 12 EC countries, Switzerland, Austria, and 13 east European countries (including the three Baltic republics and Ukraine) met in Berlin on Oct. 30-31 at a conference on illegal migration from eastern and central Europe. END START A communiqué said that government measures would (i) crack down on groups smuggling refugees across borders: (ii) standardize border controls; (iii) deploy forces in remoter border areas; and (iv) apply heavy fines for airlines failing to check travellers' papers adequately at their point of departure. END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START MIDDLE EAST END START END START END START The Madrid Conference END START END START END START Delegations from Israel, Syria and Lebanon, and a joint Jordanian-Palestinian delegation, met around a single conference table in the Royal Palace, Madrid, on Oct. 30, 31 and Nov. 1, and held bilateral talks in the Palacio de Parcente on Nov. 3. END START The conference opened with an address by Spanish Prime Minister Felipe González, followed by speeches by leaders of the conference's sponsoring governments — US President George Bush and Soviet President Mikhail Gorbachev. END START END START END START Some 4,000 media workers covering the conference were based in an exhibition hall 2 km away, where the proceedings were relayed on to a giant screen. END START The security operation for the protection of delegates involved about 12,000 police. END START END START Delegations at Madrid END START END START END START Israel. END START Prime Minister Itzhak Shamir, 76 — leader; Benjamin Netanyahu, the Deputy Foreign Minister — chief spokesperson. END START END START END START Palestinians: Haider Abdel-Shafi, 72, a medical doctor from Gaza, led the Palestinian component of the joint Jordanian-Palestinian delegation. END START Faisal al-Husseini, 51, was overall head of the Palestinian representation [see p. 38514] and the chief Palestinian spokesperson was Hanan Ashrawi. END START END START END START Jordan: led by Kamel Abu Jaber, who had been Foreign Minister since October. END START END START END START Syria: led by Foreign Minister Farouq al-Shara. END START END START END START Lebanon: Faris Buwayz, 36, Foreign Minister since December 1991. END START END START END START The UN and the European Communities (EC) had observer status at the conference, and the Arab League, the Gulf Co-operation Council, the Arab Maghreb Union, and the Saudi Arabian and Egyptian governments were also officially represented. END START The Egyptian Foreign Minister, Amr Moussa, and the current President of the EC Council, Hans Van den Broeck, made speeches on Oct. 30. END START END START END START Nabil Al-Shaaf, described as a leading advisor to Palestine Liberation Organization (PLO) chairman Yassir Arafat, was present in Madrid on behalf of the PLO, which was not officially represented. END START END START Delegates' speeches — Responses on Nov. 1 END START END START END START On Oct. 31 the delegation leaders were each accorded 45 minutes to speak. END START END START END START Shamir said that the goal of the forthcoming bilateral talks would be" to sign peace treaties between Israel and its neighbours and to reach an agreement on interim self-government arrangements with the Palestinian Arabs". END START His speech emphasized the importance of the third stage of multilateral talks on regional issues. END START He appealed to Arab leaders to" show us and the world that you accept Israel's existence", to end the" poisonous preachings against Israel" which were evident in their countries, and to" renounce your jihad [holy war] against Israel". END START He asked the" Palestinian Arabs" to" renounce violence and terrorism… stop exposing your children to danger by sending them to throw bombs and stones at soldiers and civilians". END START In passages referring to the history of the dispute, Shamir noted:" We are the only people who have lived in the land of Israel without interruption for nearly 4,000 years… END START We are the only people for whom Jerusalem has been a capital. END START We are the only people whose sacred places are only in the land of Israel." END START Territorial demands might be made by Arab delegates, but" as an examination of the dispute's history makes clear, its nature is not territorial. END START It raged well before Israel acquired Judaea, Samaria, Gaza and the Golan in a defensive war." END START Whereas" wars have not solved anything in our region", Shamir suggested that peace could" turn the Middle East into a paradise, a centre of cultural, scientific, medical and technological creativity". END START END START END START The Palestinian speech was delivered by Abdel-Shafi. END START It referred to the Palestinians' struggle for" sovereignty" and envisaged a future" confederation between the two states of Palestine and Jordan, which can be a cornerstone for our security and prosperity". END START It called for an immediate halt to land confiscations and settlement building in the Occupied Territories, in order to allow for" bilateral negotiations on the withdrawal of Israeli forces, the dissolution of Israeli administration and the transfer of authority to the Palestinian people". END START It would be necessary to provide" international protection for our people" during this phase, which could find acceptance as a" transitional stage, provided interim arrangements are not transformed into permanent status". END START Abdel-Shafi mentioned by name the Palestine National Council and the PLO and stressed Palestinian commitment to the" special status and non-exclusive character" of Jerusalem. END START His speech endorsed the intifada and referred to thousands of detainees held in Israel and to doubts about the peace process among the Palestinian population. END START " We have evolved a respect for pluralism and diversity and we shall guard the opposition's right to differ… END START " END START Referring to the" past tragedy of another people" as it affected the" present existence" of the Palestinians, and addressing" the Israeli people, with whom we have had a prolonged exchange of pain", the speech noted that" the occupier can hide no secrets from the occupied and we are witness to the toll that occupation has exacted from you and yours". END START END START END START Speaking for Jordan, Abu Jaber emphasized" our traditional Jordanian moderation" and warned against the" extremists and the rejectionists who speak in absolute terms and are still lurking in the wings". END START King Hussein would have preferred a separate Palestinian delegation, he said, but" we have no objection to providing an umbrella for our Palestinian brethren". END START Jordan demanded" the total withdrawal of Israeli forces from occupied Jordanian, Palestinian, Syrian and Lebanese lands". END START Abu Jaber said that" the Palestinian people must be allowed to exercise their right of self-determination in their ancestral homeland" and added:" Let me speak plainly that Jordan has never been Palestine and will not be so." END START Jordan hoped that the conference would work towards a solution" leading not only to the withdrawal of Israeli forces from the Arab occupied lands, including Arab Jerusalem, but also to the delineation of Israel's permanent borders, and finally peace". END START Jordan, he added," deserves support as it continues the… transition to political pluralism." END START END START END START The Syrian speech, delivered by Al-Shara, was generally perceived to be more militant in tone than the Palestinian. END START The Syrian delegation was" determined to reject any exploitation of the current peace process to legalize what is not legitimate and what is unacceptable in the eyes of the UN… END START " END START Syria demanded" Israel's withdrawal from every inch of the occupied Syrian Golan, the West Bank, Jerusalem, the Gaza Strip and southern Lebanon" and the securing of the Palestinian people's legitimate rights. END START Al-Shara asserted that" the world public opinion now realizes more than ever before, especially in the aftermath of the Gulf crisis, that double standards are no longer acceptable in this age; that the principles of international law, not the law of the jungle, must be repected". END START Syria sought a" just and comprehensive peace", and" our acceptance of holding bilateral talks is also a clear indication of our serious contribution towards the establishment of a real, comprehensive peace in the region". END START END START END START The head of the Lebanese delegation, Faris Buwayz, said that" Lebanon is concerned above all with the total liberation of all its territory". END START The example of the recent ending of the Lebanese civil war showed, he said, that" miracles are easy when destiny is at stake". END START END START END START In the Nov. 1 session time was allocated to each delegation for replies to the previous day's speeches. END START END START END START Shamir attacked Syria for attempting to present itself as" a model of liberty and the protection of human rights including those of Jews" while in fact harbouring many terrorist organizations. END START Al-Shara in his speech brandished a wanted poster showing Shamir when younger and said that" he himself recognizes that he was a terrorist and that he participated in the assassination of Count Bernadotte [the UN mediator] in 1948". END START END START Bilateral talks — Joint statement END START END START END START The conference adjourned on Nov. 2 for the Spanish All Souls public holiday, and resumed the next day for bilateral talks. END START END START END START Five hours of talks between an Israeli negotiating team and members of the Jordanian-Palestinian delegation produced a joint statement which said that further negotiations would be divided into" two tracks", to discuss Israeli-Palestinian and Israeli-Jordanian issues. END START These negotiations would work towards the conclusion of a two-phase agreement in which Palestinians would first have an interim period of self-rule before negotiating a final settlement with Israel. END START END START END START Separate Israeli-Lebanese and Israeli-Syrian meetings finally began late in the evening of Nov. 3, after US and Arab diplomats had helped resolve disagreements over procedure between Israeli and Syrian representatives. END START Reports referred especially to the involvement of Prince Bandar Bin Sultan, Saudi Arabia's ambassador to the USA, in this mediation. END START END START Developments in Occupied Territories END START END START END START The participation of Palestinian representatives, with the support of most of the organizations within the PLO, at the peace conference in the Madrid produced tension and clashes in the West Bank and Gaza. END START Opposition to the conference appeared to be mobilized by the Popular Front for the Liberation of Palestine (PFLP), the Democratic Front for the Liberation of Palestine (DFLP) and the Islamic organizations Hamas and Islamic Jihad. END START END START END START Widespread arrests of alleged PFLP activists by the Israeli police and security services" in recent months" had been reported by the Israeli military authorities on Sept. 26. END START On Oct. 2 the Hamas representative in Jordan, Ibrahim Ghawsheh, had called for an escalation of the intifada in protest against the forthcoming conference. END START END START END START On Oct. 23 a general strike was declared in the Occupied Territories in rejection of the Madrid conference. END START Hamas supporters and others were on Oct. 26 reported to be enforcing the strike in East Jerusalem. END START However, over 1,000 demonstrators, predominantly boys and young men with some brandishing olive branches, marched through Gaza City on Oct. 29 and 30 chanting" Yes to the peace conference". END START Clashes were also reported between those opposed to the conference and supporters of the PLO-mainstream Fatah organization. END START Ashrawi, one of the negotiators leaving the West Bank for Madrid in the last week of October, told a television team that the intifada would continue. END START END START END START Throughout the conference young people carrying olive branches continued to demonstrate in support of Palestinian participation. END START Delegates returning to the West Bank from Madrid on Nov. 10 were greeted in Jericho by thousands of people expressing euphoric support. END START It was announced on the same day that" political committees" had been formed in the Occupied Territories. END START Press reports varied as to whether the new committees were Fatah-inspired or organized by the PFLP and DFLP, but it appeared that they would be a forum for the local response to the ongoing peace process. END START END START END START On Nov. 11 Ashrawi told a news conference in Jerusalem that the Palestinian leadership was not" working on a detailed blueprint for autonomy" but was" working on projects, several issues that have to deal with interim transitional arrangements". END START END START Gaza Chamber of Commerce elections END START END START END START In elections for the Gaza Chamber of Commerce on Nov. 4 nationalists who backed the Madrid conference won 13 of the 16 seats, unexpectedly leaving only three to Islamic groups who had rejected the conference. END START Some 1,500 traders, industrialists and self-employed artisans, out of 1,700 eligible, had turned out to vote. END START END START END START A report in the Israeli media on Nov. 8 said that following these elections a communiqué issued by the Hamas leadership in the diaspora referred to the importance of a" quiet dialogue" between Hamas and the PLO in order to avoid the violent public clashes between their members. END START END START New Israeli settlement in Golan — Knesset vote END START END START END START On Nov. 4 the Israeli Housing Minister Ariel Sharon formally opened a new civilian settlement, named Kela, on the Golan Heights. END START On Nov. 12 the Israeli Knesset passed a resolution by 26 votes to 12 stating that the Golan Heights were non-negotiable territory, reaffirming an annexation decision of 1981. END START The vote was criticized by a number of Arab states; an official Syrian statement on Nov. 13 said that it was an" open defiance of the principles and objectives" of the Madrid conference. END START END START Deportation threat against Ashrawi END START END START END START After reports on Nov. 15 that the Israeli police had recommended that Ashrawi be prosecuted for contravening laws forbidding contact with the PLO, there were immediate expressions of concern from Bush and the Jordanian Foreign Minister Kamil Abu Jabir. END START Ashrawi had said on Jordan on Nov. 9 that she and her fellow delegates had been given diplomatic protection by the USA and the Soviet Union. END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START PALESTINIAN AFFAIRS END START END START END START Reopening of Damascus office END START END START END START After a meeting in Damascus on Nov. 9 between Farouq al-Shar'a, the Syrian Foreign Minister, and Farouk Qaddumi, his equivalent in the Palestine Liberation Organization (PLO), Syria and the PLO took a further step towards the normalization of their relations. END START Qaddumi announced that it had been agreed in principle that Al-Fatah, the largest constituent group within the PLO, would re-open its offices in the Syrian capital after a break of eight years. END START END START END START In 1983 the offices of Al-Fatah had been closed and its leader, PLO Chairman Yassir Arafat, was expelled from Damascus, following Syria's backing of a mutiny against Arafat within the ranks of his own faction [see p. 32458]. END START END START END START Al-Fatah was also seeking a rapprochement with Damascus-based radical Palestinian groups in the Palestine National Salvation Front (PNSF), an anti-Arafat coalition. END START On Nov. 12 a PNSF delegation held two hours of talks with a Syrian Vice-President, Abdel Kalim Khaddam. END START END START Suspension of PFLP END START END START END START At a news conference in Damascus on Nov. 6 it was announced by Georges Habash, the secretary-general of the Popular Front for the Liberation of Palestine (PFLP), that his organization was suspending the membership of its representative on the PLO Executive Committee. END START END START END START Habash stated that the PFLP's decision was a result of what he described as the" erroneous political line" being pursued by the PLO leadership in accepting conditions set by the United States for the formation of a Palestinian delegation to the Madrid conference. END START The PFLP rejected the US proposals as a solution" liquidating the question of Palestine" and" asserting Israel's right to our land through a Palestinian and Arab recognition and an international testimony". END START Habash invited those parties serious about reaching a" just and comprehensive solution" to hold an international conference attended by the permanent members of the UN Security Council and other parties concerned" including the PLO". END START Habash added that despite the suspension, the PFLP" will continue to work alongside other national institutions." END START It was confirmed by Palestinian officials that the PFLP did not attend the PLO Executive Committee meetings held on Nov. 14-18 in Tunis. END START END START Execution of alleged assassin of Abu Iyad END START END START END START On Nov. 22 the London-based daily newspaper Al-Hayah reported the execution of Hamzah Abu Zayd, the alleged assassin of the senior PLO members Salah Khalaf (Abu Iyad) and Hayil Abd al-Hamid (Abu al-Hol) and their aide Muhammad al-Umari who were killed in Tunis on Jan. 14, 1991 [see pp. 37975-76]. END START Quoting a responsible Palestinian source, the newspaper reported that Abu Zayd had been executed" a few days ago in international waters". END START He had been sentenced to death in March by a Palestinian military tribunal sitting in Sana'a, Yemen. END START END START Arafat's visit to Syria and Jordan END START END START END START On Nov. 6 Arafat, accompanied by PLO Executive Committee members Yassir Amr, Abdullah Hourani and Yasser Abd ar-Rabbuh, arrived in Damascus after visiting Amman. END START In a statement quoted by Syrian Arab Republic Radio Arafat praised the pan-Arab position which Syria had expressed at the Madrid conference. END START On Nov. 7 the delegation was received by Vice-President Khaddam and later met with President Hafez al-Assad and Foreign Minister Shar'a to co-ordinate plans for the next stage of the talks. END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START ISRAEL END START END START END START Labour Party convention END START END START END START Almost 3,000 delegates attending the opposition Labour Party convention in Jerusalem on Nov. 18-21 voted on a number of policy issues which were expected to figure in the general election due by November 1992. END START END START END START The wording of resolutions relating to security and foreign affairs adopted by the convention represented in some respects a victory for a group of younger" doves". END START This group also argued for measures of economic liberalization and for a clearer separation of the Labour Party from the Histadrut trade union organization. END START END START END START A resolution referring to Palestinian" national rights" was adopted in the formula originally proposed by the party's preparatory committee. END START The" doves" had agreed to withdraw their own amendment, which mentioned the Palestinians'" right to self-determination". END START On this as on all the other resolutions relating to" security issues", amendments proposed by the right of the party were defeated. END START END START END START A call for a year's freeze on settlements in the West Bank and the Gaza Strip (with the exception of Jerusalem and the Jordan valley) was adopted as part of the party's platform, as was a commitment to a repeal of laws outlawing" contacts with terrorist organizations [which included the Palestine Liberation Organization-PLO]". END START The convention's preparatory committee had discussed whether to advocate a declaration of support for direct negotiations with PLO members" having no prior record of terrorist activity", but in the event this was left unresolved. END START END START END START Delegates voted in favour of the" strengthening" of" existing settlements" on the Golan Heights, although it was also resolved that the future of the Golan was negotiable. END START The former Labour Party leader, Prime Minister and Defence Minister Itzhak Rabin, who was generally regarded as a hardliner, surprised delegates with his affirmation that Israel would have to give up" some kilometres of land in exchange for peace". END START END START END START A resolution unexpectedly approved on Nov. 21 advocated" the independence of religion from state", in view of a" politicization of religion" in which" religious institutions are abusing the values of democracy". END START The resolution attracted strong criticism from party chairman Shimon Peres and from Rabin; the small religious parties had in the past been crucial components of Labour-controlled coalition administrations. END START END START END START In the leadership elections scheduled for mid-February 1992 it was expected that Peres would be challenged by Rabin. END START On Nov. 28 the secretary-general of the Histadrut, Yisrael Qeysar, announced that he also would stand. END START END START Rejection of Vananu petition — Denial of refugee status for Menashe END START END START END START On Nov. 5 it was reported that Israel's Supreme Court had rejected a petition by Mordechai Vananu to be allowed to clarify events surrounding his detention. END START Vananu's brother Meir Vananu told the Davar newspaper that the court had" rejected my brother's request to allow the public to know how he was brought to Israel". END START No official information was available on the hearing. END START Vananu, who had been held in solitary confinement since 1986, was in March 1988 given an 18-year prison sentence for passing information likely to harm state security, after he had offered a United Kingdom newspaper information about Israel's nuclear programme [see p. 35922]. END START END START END START On Nov. 18 the Australian authorities announced that Australia had refused refugee status to Ari Ben-Menashe, a self-described former Israeli agent whose accounts of Israeli government arms dealings had been cited in a recent book by Seymour Hersh [see p. 38550]. END START END START Killing of infiltrators from Egypt END START END START END START By Nov. 8 a total of 12 Iranians had been detained while crossing the Israeli-Egyptian border in the western Negev desert. END START One Iranian was killed by Israeli soldiers in the first days of November, and four more, who had been carrying rifles and ammunition, were killed on Nov. 11. END START END START END START Those arrested claimed to be part of a group of former dissident Iranian Mujahedin who had been based in Iraq. END START On Nov. 13 the Egyptian Interior Ministry said that it had no evidence to suggest that the guerrillas had entered Israel through Egyptian territory. END START END START Visit by De Klerk — Arens' visit to Beijing END START END START END START The President of South Africa, F. W. de Klerk, visited Israel on Nov. 10-13. END START It was the first official visit by a South African President since 1975. END START END START END START In meetings with the Israeli Prime Minister Itzhak Shamir and the Foreign Minister David Levi ways of promoting trade between the two countries were discussed and a memorandum on co-operation was signed. END START In July 1991 Israel had lifted the sanctions it had adopted against South Africa in 1987, but had made it clear that new military contracts would remain formally embargoed. END START END START END START Defence Minister Moshe Arens visited China in early November. END START Details of the visit remained subject to Israeli military censorship, but military exports to China were understood to have been discussed. END START END START Direct flight bringing Soviet immigrants — Appointment of ambassador END START END START END START The first direct flight bringing Soviet Jewish immigrants to Israel arrived in Tel Aviv on Nov. 5, following an agreement signed in October by the Jewish Agency and by the Soviet and Israeli airlines, respectively Aeroflot and El Al. END START On Nov. 14 Soviet President Gorbachev appointed Aleksandr Bovin as ambassador to Israel [see also p. 38406]. END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START JORDAN END START END START END START New Jordanian Cabinet END START END START END START Field Marshal Sharif Zaid Ibn Shaker Prime Minister; Defence Dhuqan al-Hindawi Deputy Prime Minister; Education END START END START END START *Ali al-Suhaymat Deputy Prime Minister; Transport END START END START END START * **Kamil Abu Jabir Foreign Affairs Abdullah al-Nusur Industry and Commerce Awad Khulayfat Higher Education Yanal Hikmat Tourism and Antiquities END START END START END START *Basil Jardana Finance END START END START END START *Ziyad Fariz Planning Yusuf al-Mubayyidin Justice END START END START END START *Abd al-Karim Kabarti Labour Jamal al-Sarayirah Communications END START END START END START *Saad Hayil al-Surur Public Works and Housing END START END START END START *Samir Qawar Water and Irrigation END START END START END START *Jawdat al-Subul Interior END START END START END START *Ali Abu al-Raguib Energy and Mineral Resources END START END START END START *Salih Irshidat Youth END START END START END START * **Shaykh Izz al-Din al-Khatib al-Tamimi Waaqfs (Religious Endowments) and Islamic Affairs END START END START END START * **Abd al-Razzaq Tubayshat Municipalities and Rural Affairs and Environment END START END START END START * **Mahmud al-Sharif Information Mahmud al-Samrah Culture Muhammad al-Saqqaf Supply Arif al-Batayinah Health Fayiz al-Khasawinah Agriculture Amin Awwad Mashaqibah Social Development END START END START END START *Ibrahim Izz al-Din Minister of State for Prime Ministry Affairs Atif al-Butush Minister of State for Parliamentary Affairs Sultan al-Adwan Minister of State END START END START END START *Jamal Hadithah al-Khurayshah Minister of State Adnan Abu Odeh Royal Court Chief END START END START END START *Member of outgoing Cabinet. END START END START END START **First Appointed to post on Oct. 3, 1991. END START END START Resignation of Prime Minister END START END START END START On Nov. 16 Taher al-Masri resigned as Prime Minister after only five months in the post [see p. 38311]. END START Three of his ministers had resigned on Oct. 3 in protest at the terms of Jordan's participation in the Middle East peace conference and at his lack of success in tackling economic problems. END START Despite replacing five members of his Cabinet, on Oct. 3 he lost the support of the 80-member House of Representatives (lower house of parliament). END START END START END START Masri's resignation was precipitated by a petition signed on Oct. 6 by an alliance of 49 deputies from the Moslem Brotherhood (with 22 seats), the Constitutional bloc (17 seats), the Democratic Alliance and some independent Islamic deputies. END START This stated that the government had lost the confidence of the majority in parliament and urged it to resign. END START Most of the signatories opposed the principle of peace negotiations with Israel, while others were angered at their exclusion from the government. END START END START END START (In the face of growing opposition to the peace process during October the government seized the latest editions both of the weekly newspaper of the People's Democratic Party, Al-Ahali, for criticizing the royal decree of Sept. 25 prolonging parliament's recess until Dec. 1 and also of the Moslem Brotherhood weekly, Al-Ribat, for questioning Jordan's participation in the conference. END START A rally called for Oct. 11 by the Moslem Brotherhood and Hamas to mark the first anniversary of the killing of at least 17 Arabs at the Temple Mount in Jerusalem [see p. 37873] was also banned.) END START END START END START Following Masri's resignation, King Hussein called on his cousin Field Marshal Sharif Zaid Ibn Shaker, 57, who had led a transitional government in 1989 [see p. 36602], to form a government. END START The new broader-based government appointed on Nov. 21 included Dhuqan al-Hindawi, the leader of one of the parliamentary factions which brought the motion of no confidence. END START The Moslem Brotherhood, which opposed the peace talks on principle, remained excluded from government. END START END START END START Foreign Minister Jabir, first appointed on Oct. 3, was a United States-educated professor of political science, who had been advising King Hussein on the peace process and led the Jordanian delegation to the Madrid conference [see p. 38594]. END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START LEBANON END START END START END START Hostage releases END START END START END START Two Western hostages, Terry (Terence Hardy) Waite and Thomas Sutherland, were released on Nov. 18 by the pro-Iranian Islamic Jihad for the Liberation of Palestine, as part of a UN-mediated three-way exchange of Western hostages, Arabs held by Israel and Israelis missing in Lebanon [see p. 38550]. END START The UN Secretary-General Javier Pérez de Cuéllar confirmed on Nov. 18 that he expected the release of the five remaining Western hostages by Christmas. END START END START END START The Qatar News Agency quoted an unidentified Islamic Jihad spokesman as saying that his group expected Israel" to reciprocate by releasing another group of Arab prisoners". END START However, the secretary-general of Hezbollah, Sheikh Abbas Musawi, said on Nov. 20 that the fate of the Western hostages was no longer linked to that of Arabs held by Israel, a declaration which appeared to remove the last political obstacle to the resolution of the hostage issue. END START END START END START Waite, a British citizen and special envoy of the Archbishop of Canterbury, had been seized on Jan. 20, 1987, while on a mission to secure the release other hostages [see p. 35024]. END START Sutherland, a United States national and dean of Agriculture at the American University in Beirut (AUB), had been kidnapped on June 9, 1985 [see p. 34133]. END START END START END START Waite's release revived questions about his possible involvement with the US administration official at the centre of the Iran-contra scandal, Lt.-Col. Oliver North. END START END START END START A British Broadcasting Corporation (BBC) television programme, Panorama, broadcast on Nov. 18, suggested that Waite had been set up as a front man in the arms for hostages deal and helped gather intelligence on the whereabouts of the captors. END START It alleged that he had been fitted out with a secret transmitter on one of his missions to Lebanon, to pinpoint the exact location of the hostages and kidnappers. END START It also claimed that he had nearly 20 meetings with North between 1985 and 1987. END START Press reports cited evidence of his involvement with the USA, including his use of a US military helicopter to travel from Beirut to Cyprus in 1986 and his involvement in the release of three US hostages, the Rev. Benjamin Weir, freed on Sept. 14, 1985, and Lawrence Jenco and David Jacobsen, released on July 26 and Nov. 2, 1986, respectively, all of whom turned out to have been traded for arms. END START Seyed Shamseddin Khareghani, Iran's chargé d'affaires in London, said in an interview on Nov. 21, that the kidnappers and Iran thought" Waite was a US spy, with links with the CIA" [Central Intelligence Agency], when he was abducted. END START North denied all the allegations. END START END START Security situation END START END START END START Israel and its" proxy" militia the South Lebanese Army (SLA) continued military operations in southern Lebanon throughout November, despite growing pressure from the Lebanese government and the international community to halt the attacks. END START END START END START Lebanese Prime Minister Umar Karami announced on Nov. 2 that the USA had asked Israel to" cease all military activity in southern Lebanon at once because the Middle East peace process cannot afford such aggressive acts". END START The Foreign Minister, Faris Buwayz, who was leading the Lebanese delegation at the Madrid peace talks [see p. 38513; 38594], had appealed to the USA to intervene, and a protest had been submitted to the UN Security Council. END START END START END START Israel had been shelling targets in the area following the killing of three Israeli soldiers near Aramta on Oct. 29 [see p. 38550]. END START On Nov. 1, Israeli jets, in three raids, destroyed two bridges linking Nabatiyeh with the Iqlim Al Toufah region and attacked a number of Hezbollah bases in the area. END START On Nov. 2 villagers at Kufr Rumman near Nabatiyeh were ordered to leave their homes after evacuation orders were allegedly issued from an Israeli position. END START Hundreds of villagers fled from the area. END START Israel sources said the SLA was responsible. END START END START END START The Israeli bombardment resumed on Nov. 5 against a background of clashes involving the Israeli army, the SLA and guerillas. END START Targets included the area around Nabatiyeh, villages in the Bekaa valley and Kabrikha and Braachit in the area controlled by the UN Interim Force in Lebanon (UNIFIL). END START The Israeli air force attacked" terrorist targets" in the Rashidiyah refugee camp, south of Tyre and in the Ain al-Hulwah camp on Nov. 7. END START END START END START In the early morning of Nov. 8 an explosion on the campus of the AUB destroyed the main administration building and damaged a number of others. END START One person was killed and six people injured. END START A Syrian soldier was also killed by the bombers as they escaped. END START The Interior Minister, Maj.-Gen. END START Sami al-Khatib, said that the government believed that the bomb was intended as" an obstacle for the peace conference and for reconciliation in Lebanon". END START No one claimed responsibility. END START The As Safir newspaper of Nov. 20 reported details of an investigation headed by Khatib, which concluded that the bomb attack was organised by an SLA officer. END START END START END START Israel continued its bombardment of villages in the south on Nov. 12 and Israeli aircraft staged mock attacks over the area. END START On Nov. 14 a camp used by the Popular Front for the Liberation of Palestine in Rashidiyeh was bombed, two Hezbollah bases in the Jabal Safi area and in Mlita were attacked and a bridge, previously bombed on Nov. 1 and under repair, was destroyed. END START END START END START UN sources reported that an Israeli patrol on Nov. 13 opened fire on a compound manned by UNIFIL, but that no one was injured. END START Israel said that the incident was an accident. END START Two days later an Irish member of UNIFIL was killed and another injured when their patrol was attacked by the SLA. END START END START END START Three Lebanese soldiers were killed on Nov. 25 when their patrol was hit by a rocket fired from an area occupied by the SLA. END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START IRAQ END START END START END START Release of UK-held Iraqi assets END START END START END START The Iraqi authorities on Nov. 24 released the South African-born British businessman, Ian Richter, imprisoned in Iraq since July 1986 and convicted in February 1987 of bribery and forgery charges. END START The United Kingdom announced at the same time that it was freeing Iraqi assets worth £70,000,000 (about US$126,000,000), but a UK Foreign Office spokesman denied allegations that Richer's release had been secured by an unpublicised arrangement between Iraq and the UK, said to involve the unfreezing of part of £621,400,000 (US$1,100 million) held by banks in the UK. END START END START END START On Nov. 18 and 20 the Iraqi government had announced that orders for supplies to meet humanitarian needs costing US$3,240 million worth would not be met, because Western governments had not agreed to free Iraqi assets [see p. 38211], estimated at around US$4,000 million [see p. 38361]. END START END START Food crisis END START END START END START The Iraqi Agriculture and Irrigation Minister, Abdul Wahab Mahmoud al-Sabbagh, said in Rome on Nov. 13 that thousands of Iraqis faced starvation following a 75 per cent drop in food production. END START END START END START He said that permitted grain imports since March had totalled only 100,000 tonnes, half the normal monthly grain requirements, and" only 15 per cent of our people can afford to buy food on the free market". END START A report by the UK charity Oxfam on Nov. 20 underlined the critical nature of Iraq's food and medical situation. END START On Nov. 3 the Observer had reported food riots in a number of Baghdad suburbs on Oct. 16, 18 and 20. END START END START END START The UN Food and Agriculture Organization (FAO) on Nov. 7 extended by two months its programme of emergency relief [see pp. 38165; see also p. 38548]. END START END START END START Meanwhile, in a move reportedly designed to check the further collapse of the dinar, the Finance Minister Majid Abd Ja'far confirmed on Nov. 7 that the central Rafidain Bank had been authorized to accept currency known to be counterfeit [see also p. 38407]. END START END START Concern over rejection of oil sales resolution END START END START END START Efforts to persuade Iraq to pump oil to pay for essential imports, under the terms of UN Resolution 706 [see pp. 38406; 38451], ended in failure on Nov. 24 after six days of talks in Baghdad between government ministers and the head of the UN's Inter-Agency Humanitarian Programme for Iraq and Kuwait, Prince Sadruddin Aga Khan, who told a press conference that" the government of Iraq may be held responsible for failing to take advantage of the window of opportunity… afforded by the arrangement for oil exports and imports of essential needs", but added that Western governments could alleviate Iraq's humanitarian problem by releasing all Iraqi assets. END START END START END START On Nov. 15 the Trade Minister, Mohammad Mehdi Saleh, had reiterated Iraq's rejection of UN Resolution 706 as a violation of Iraqi sovereignty. END START " Iraqis," he said," will not sell their freedom for food." END START END START END START The International Herald Tribune of Nov. 25 reported that Iraq had secretly exported small quantities of refined oil products to Lebanon and Turkey to help pay for food. END START END START Extension of UN relief operations to mid-1992 END START END START END START The government agreed, at the end of talks with Prince Sadruddin, to extend by six months a" memorandum of understanding", due to expire in December, permitting UN relief agencies to continue operations in the north and south of the country. END START END START END START In early November international relief agencies had accused Iraq of preventing the direct distribution of food to all except Kurdish-held territories in the north. END START END START END START The completion of the first stage of the government's reconstruction programme was marked by the re-opening on Nov. 4 of the Jumhuriya bridge in central Baghdad and the partial restoration on Nov. 16 of a concrete factory, also in Baghdad. END START END START Destruction of uranium enrichment equipment END START END START END START The head of the seventh UN nuclear inspection team which visited Iraq on Oct. 11-22 [see p. 38548], Demetrios Perricos, announced in Manama, Bahrain, on Nov. 18 that UN inspectors had destroyed most of the equipment known to have been used to enrich uranium for Iraq's nuclear weapons programme. END START END START END START The International Atomic Energy Agency (IAEA) confirmed on Nov. 15 that the first consignment of confiscated enriched uranium had been airlifted to the Soviet Union. END START END START END START Reports on Nov. 7, based on documents seized by UN inspectors [see p. 38451], said that Iraq had successfully detonated a" partial nuclear bomb" at al-Atheer, 100 km south of Baghdad. END START END START Chemical and biological weapons inspections END START END START END START Officials from the fifth chemical weapons inspection team [see p. 38548], which completed its mission on Nov. 5, were reported on Nov. 12 as saying that they had found Scud missiles fitted with crudely made chemical warheads. END START END START END START The UK government was reported on Nov. 22 as having admitted that the UK had exported to Iraq the chemical, sodium sulphide, used in the manufacture of chemical weapons. END START END START END START A third biological weapons inspection team arrived in Iraq on Nov. 19 [for arrival in October of second team see p. 38548]. END START END START Cabinet changes END START END START END START President Saddam Hussein on Nov. 6 appointed Interior Minister Ali Hasan al-Majid as Defence Minister to replace Gen. Hussein Kamil [for whose April appointment see p. 38165]. END START Watan Ibrahim al-Hasan, Saddam Hussein's half-brother, was named Interior Minister on Nov. 13. END START END START END START The latest round of Cabinet changes [for other 1991 changes see pp. 38081; 38165; 38308; 38452] was regarded by analysts as strengthening the influence of hard-liners such as Majid and further enhancing the role of members of Saddam Hussein's family in matters affecting security. END START END START END START On Nov. 6 former Prime Minister Saadoun Hammadi [see p. 38452 for his dismissal in September] was named adviser to the President with the rank of Cabinet minister. END START END START Blockade in Kurdistan END START END START END START Kurdish leaders announced on Nov. 12, following meetings with government ministers in Baghdad, that they were withdrawing all guerrilla forces south of Arbil, in northern Iraq, in exchange for an end to the three-week long economic blockade [see also p. 38548]. END START END START END START The latest truce came amidst reports that the partial blockade of food and fuel had seriously tested the capacity of Kurdish fighters to administer the region and had caused widespread civilian suffering. END START END START END START In mid-November, however, Kurdish leaders were reported to be preparing for a fresh economic blockade and an imminent government attack on Kurdish strongholds. END START END START END START On Nov. 17 thousands of Kurds had fled Arbil fearing that orders to evacuate villages south of the city were a prelude to a government offensive. END START Reports that the government had re-imposed a food embargo were denied by Trade Minister Saleh on Nov. 17. END START END START Expulsion of Iraqi diplomat from Sweden END START END START END START A senior Iraqi diplomat charged with spying on Iraqi refugees, including Kurds, was expelled from Sweden on Nov. 12. END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START IRAN END START END START END START Agreement with India — Transfer of nuclear technology END START END START END START An Iran-India joint commission held its fifth session in Tehran on Nov. 5-11, when President Ali Akbar Hashemi Rafsanjani told the Indian Minister of External Affairs, Madhavsinh Solanki, that Iran was ready to help in solving the differences between India and Pakistan. END START The two countries signed a new three-year programme for cultural and scientific exchanges. END START END START END START On Nov. 17 Rafsanjani condemned the United States for attempting to dissuade China and India from transferring to Iran nuclear technology to be used for non-military purposes. END START The Washington Post of Nov. 21 gave prominence to Rafsanjani's declarations and reported that" India announced this week that it will not sell a nuclear reactor to Iran, largely because of mounting international pressure". END START The newspaper also said that" diplomats" believed that China had likewise decided against selling a nuclear reactor to Iran [see p. 38549]" leaving the country with little hope of an early revival of its [nuclear] programme". END START END START END START The Indian authorities on Nov. 22 and 28 denied that US pressure had been brought to bear, maintaining that negotiations for the sale of a reactor were at a preliminary stage and would not contravene international law. END START The International Atomic Energy Agency (IAEA) representative in New Delhi said on Nov. 23 that the IAEA would not be concerned by any sale of a reactor to Iran, which was a signatory of the Nuclear Non-Proliferation Treaty (NPT). END START END START Rallies for anniversary of US embassy occupation END START END START END START The official council for the co-ordination of Islamic publicity organized a demonstration on Nov. 4 to mark the 12th anniversary of the occupation of the United States embassy in Tehran. END START " Various sectors of the city's population, including students" were reported by official radio to have marched towards the" building of the former US dens of espionage" chanting anti-US and anti-Israel slogans. END START END START END START The day was proclaimed a National Day of Struggle against World Arrogance, and at the Jamaran mosque, Tehran, theology students from Baneh" together with various strata of the people" were addressed by Ahmad Khomeini (son of the late Ayatollah Khomeini). END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START ALGERIA END START END START END START Question of FIS participation in elections END START END START END START Uncertainty continued over whether the fundamentalist Islamic Salvation Front (FIS) would participate in the general election to be held on Dec. 26. END START On Nov. 27 a military court in Blida, the town where FIS leaders were being held, released one FIS leader, Mohammed Said, but confirmed detention orders against seven others, including Abassi Madani and Ali Belhadj. END START All eight had been detained since June [see also p. 38312] and their release had been repeatedly demanded by the FIS as a precondition to FIS participation in the election. END START END START END START Up to 300,000 FIS supporters marched without incident through Algiers after Friday prayers on Nov. 1, calling for the establishment of an Islamic state and for the release of the imprisoned leaders. END START It was the first FIS demonstration since the lifting of the state of siege in September. END START END START END START Abdelkader Hachani, one of the FIS leaders imprisoned on Sept. 27 [see p. 38456], had been released on Oct. 29. END START On Nov. 6 he was allowed to make a television broadcast in which he argued that the programme of the FIS was a non-violent one. END START A ban on the publication of two FIS newspapers was lifted in mid-November. END START END START END START Hachani asserted in a radio interview on Nov. 20 that" if the situation remains as it is" the FIS would" exert every available means, within the framework of the law, so that there will be no elections and so the whole Algerian people boycott these elections". END START He cited 2,700 FIS supporters dismissed from their jobs since June and said that FIS political prisoners were still being held in a number of towns. END START The FIS and other groups were convinced, he said, that" the sole solution to all the problems and crises suffered by the country is to adopt Islam as a way of living". END START END START END START The military authorities at Blida refused to allow Madani and Belhadj to sign documents authorizing their lawyers to register them as parliamentary candidates before the Nov. 11 deadline for registration. END START On Nov. 28 the FIS's consultative council announced that it had postponed a decision on participation in the election" in order to give the regime another opportunity to spell out its intention to clear the political atmosphere". END START END START Registration of parliamentary candidates END START END START END START The FIS and over 40 other parties registered a total 5,794 parliamentary candidates for the 430 National Assembly seats. END START This represented a 55 per cent increase compared with numbers registered in June. END START END START END START A number of the 1,089 candidates who were running as independents were members of the ruling National Liberation Front (FLN) — a fact noted with disapproval by FLN secretary-general Abdelhamid Mehri at an emergency session of the FLN central committee on Nov. 21. END START END START END START The FIS had put up a candidate in each constituency (and claimed to be the only party to do so). END START Nahdah, the Islamic party led by Sheikh Djaballah, announced that it was putting forward 206 candidates. END START Djaballah said on Nov. 27 that" the Islamic state would be established by all the potential existing in Algeria, and not through the potential of one single party". END START END START Law on foreign investment in oil and gas END START END START END START On Nov. 30 the National Assembly approved legislation allowing foreign companies increased involvement in the exploration and exploitation of oil and gas reserves and mining operations. END START International companies would be allowed to work in existing oil fields as well as opening up new ones, and gas finds could now be included along with oil in production-sharing agreements. END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START LIBYA END START END START END START US and UK indictments of Libyans for Lockerbie bombing END START END START END START The United States and United Kingdom authorities on Nov. 13 announced that they had filed charges against two Libyan nationals who were believed responsible for the bomb which exploded on an aircraft over Lockerbie, Scotland, in 1988. END START Abdelbaset Ali Mohammed al-Megrahi, 39, and Al-Amin Khalifa Fhimah, 35, who were both presumed to be in Libya, were reportedly members of the Libyan intelligence services and former employees of Libyan Arab Airlines. END START END START END START The bomb on board the Boeing 747 Pan American World Airways (Pan Am) passenger aircraft flight PA 103 on Dec. 21, 1988, which had killed all 259 people on board and 11 people in the village of Lockerbie [see pp. 36409-10] was believed to have been placed in luggage which joined the flight at Frankfurt. END START Investigators had concluded that this suitcase had reached Frankfurt on an Air Malta flight which left Malta earlier that day. END START Around the time of the bombing, Megrahi had been security chief for Libyan Arab Airlines and Fhimah had been the airline's station officer in Malta. END START END START END START On Nov. 13 the UK Foreign Secretary Douglas Hurd told the House of Commons that warrants for the arrest of the two Libyans had been issued by Lord Fraser, Scotland's Lord Advocate. END START They faced charges of conspiracy, murder, and contravention of the Aviation Security Act of 1982. END START Simultaneously with the UK announcement, the acting US Attorney General William Barr (later confirmed in his post — see p. 38568) announced that indictments and arrest warrants would be issued against Megrahi and Fhimah, accused of participating in a" scheme to destroy an American aircraft", killing the passengers on board. END START The formal US indictments were issued the next day. END START END START END START It was suggested in the US and European press that Syrian, Iranian or Palestinian groups might also have participated in planning the bombing. END START Investigators had until late 1990 suspected involvement by a Syrian-based group, the Popular Front for the Liberation of Palestine-General Command (PFLP-GC). END START The authorities now maintained that the bombing was an act of revenge for the April 1986 raid on Tripoli by US aircraft [see pp. 34454-59] and that available evidence indicated sole Libyan responsibility. END START END START French charges over 1989 DC-10 bomb END START END START END START The French government had on Oct. 30 issued warrants for the arrest of four Libyan officials in connection with the destruction near the Chad-Niger border in 1989 of a DC-10 belonging to a private French airline [see p. 36910]. END START Abdullah Senoussi, a brother-in-law of the Libyan leader Col. Moamar al Kadhafi and deputy chief of the Libyan intelligence services, was among those named. END START The Libyan embassy in Paris rejected the allegations. END START END START Discussion of sanctions — International reaction END START END START END START The US and UK press gave prominence to reports that officials in both countries might ask Group of Seven (G-7) and European Community (EC) countries to impose commercial sanctions against Libya (additional to the existing US and EC sanctions) if they did not succeed in having Megrahi and Fhimah extradited. END START By Nov. 16 US President Bush was said not to have ruled out a military strike against Libya. END START END START END START EC Foreign Ministers had on Nov. 4 told their five Arab Maghreb Union (AMU) counterparts, with whom they were meeting in Brussels, that they were unable for the time being to lift the sanctions that restricted arms sales to and diplomatic relations with Libya. END START END START END START Iranian radio on Nov. 16 claimed that the charges constituted" the start of a new psychological and propaganda war by Washington against Libya". END START The Egyptian newspaper Al-Jumhuriyah of Nov. 16 warned Bush against a military strike which would not" punish Kadhafi, but rather the Arab friends of the USA". END START A Soviet Foreign Ministry statement of Nov. 30 said that such an action would set a" dangerous international precedent". END START END START Libyan reaction END START END START END START A statement by the Libyan Foreign Ministry on Nov. 15 had denied" any Libyan connection" with the Lockerbie" incident", and reiterated a" condemnation of terrorism in all its forms". END START It called for an investigation of the charges by a" neutral international investigation committee" or the International Court of Justice. END START On Nov. 18 a UK request for the extradition of the two men was presented by the Italian ambassador in Tripoli (as UK-Libyan diplomatic relations had been suspended since 1984). END START The request was subsequently refused. END START END START END START On Nov. 18 Libya announced that it had set up a judicial inquiry to investigate the allegations. END START The Justice Ministry said that Judge Ahmed Taher al-Zawi would be seeking access to evidence held by the British and US legal authorities. END START END START END START In a joint statement issued on Nov. 27 the US and UK governments asserted that" appropriate compensations" would have to be paid by Libya for the victims of the bomb. END START In a separate section of the statement, France joined in calling on the Libyan government to" prove by concrete actions its renunciation of terrorism". END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START MOROCCO END START END START END START Campus disturbances — Sentencing of students END START END START END START From mid-October and into early November there were disturbances on the university campus in Oujda, and less seriously in Fez, Meknes and Kenitra, as Islamic fundamentalist students clashed with secularist opponents, in some cases supporters of the National Union of Moroccan students (UNEM). END START END START END START At the Mohammed I University in Oujda, 20 km from the border with Algeria, the confrontations began on the night of Oct. 7, when a number of non-fundamentalist students were abducted from university residences. END START The discovery on Nov. 1 of the body of a 20 year-old who had been abducted from his science class prompted the police to raid clandestine prisons which the fundamentalists had established in the vicinity of the campus. END START On Nov. 4 an opposition newspaper reported that three students had been killed in Oujda and that the police had arrested a number of Algerian nationals in connection with the killings. END START Some sources said that the clashes had been between members of the fundamentalist Adl wal Ihsan (" justice and charity") group and members of the leftist Kaiyidine group. END START END START END START By Nov. 15, 25 students in Oujda had been sentenced for up to nine years in prison for involvement in the disturbances. END START In Fez, where 15 people had been hospitalized after similar clashes in October, a court on Nov. 8 pronounced sentences of up to four years on 30 students (16 Islamic fundamentalists and 14 described as Marxist-Leninists). END START END START Release of military detainees END START END START END START Between Sept. 23 and Oct. 29, 26 members of the military were released after spending over 18 years as prisoners in the remote fortified prison of Tazmamart in the Atlas Mountains, which was demolished in September. END START END START END START According to the Morrocan Association of Human Rights (AMDH) and the humanitarian organization Amnesty International (AI), they were survivors from an original group of 61 prisoners. END START Some of the group whom were alleged to have participated in the August 1972 attempt to kill King Hassan (for release of family of Gen. Oufkir see p. 38121). END START Others had been imprisoned following an attack on the royal palace at Skhirat, near Rabat, in 1971. END START END START Realignments among parliamentary opposition END START END START END START On Nov. 19 the Istiqlal (" independence") party and the Socialist Union of Popular Forces (USFP) announced that they had decided to act together for" the establishment of true democracy". END START A conference held by the two parties discussed the general election which was due in mid-1992 and called for an" independent, national body" to oversee it. END START Delegates also called for the voting age to be lowered from 20 to 18 years and for voter lists and electoral boundaries to be revised. END START END START END START Earlier, as the Chamber of Representatives on Oct. 17 held its first session for the parliamentary year 1991-92, it was announced that a new opposition grouping, the National Movement (MN), had been formed under the leadership of the veteran Berber politician Mahjoubi Aherdane, who in 1957 had founded his Popular Movement party (MP). END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START BAHRAIN END START END START END START On Oct. 27 Bahrain and the United States signed a defence co-operation accord. END START Similarly to the one signed by Kuwait, it allowed for common military exercises and the storage of equipment and use of port facilities by US forces. END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START DAMASCUS DECLARATION END START END START END START Foreign Ministers of the signatories to the Damascus Declaration (the six Gulf Co-operation Council (GCC) states plus Syria and Egypt) met in Cairo on Nov. 10. END START A joint communiqué made no reference to the formation of an Arab force for deployment in the Gulf and it was resolved to reconvene in April 1992. END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START SYRIA END START END START END START The People's Assembly on Nov. 13 approved a budget for 1991 which provided for expenditure of £S84,690 million (US$7,548 million), representing an increase of 37 per cent over the 1990 budget [see p. 38069]. END START END START END START END START END START MIDDLE EAST — ARAB WORLD END START END START END START TUNISIA END START END START END START President Ben Ali marked the fourth anniversary of his accession to power (Nov. 7, 1987) by pardoning 1,070 people sentenced by civil and military courts; 141 would be released and the others would have their sentences reduced. END START END START END START END START END START NATO END START END START END START Rome summit — Invitation to east European countries — New strategic formula END START END START END START Leaders of the North Atlantic Treaty Organization (NATO) ended a summit meeting in Rome on Nov. 8 with an invitation to eastern European countries for closer co-operation, starting with a foreign ministers' meeting in December. END START END START END START The two-day meeting of heads of state and government spelled out new strategies in the aftermath of the Cold War, aimed at coping with the dangers of instability in eastern Europe and elsewhere. END START A communiqué on NATO's" new strategic concept" replaced the old reliance on" forward defence" with new emphasis on crisis management and preventive diplomacy. END START END START END START The communiqué reaffirmed the trend to arms reductions and smaller, more mobile forces. END START END START END START The strategy communiqué and the summit's other major statement, a" declaration on peace and co-operation", re-affirmed the importance of the US alliance with European countries but also stressed the strengthening of NATO's" European pillar". END START The statements said that NATO remained essential but welcomed the growth of a" European identity" in defence matters, expressed in the European Communities (EC) and in the Western European Union (WEU). END START END START END START This two-track approach was seen by the press in member countries as reflecting continued manoeuvring over the role of the United States in the alliance, against a background of US troop reductions in Europe and Franco-German proposals for a European military force. END START US officials had shown concern about the increased emphasis on a" European identity," pressed by France in particular. END START A Washington Post report on Nov. 9 described the outcome in Rome as" fuzzy" and the declaration as" filled with compromise language". END START END START Call for meetings with east European representatives END START END START END START The 16 NATO leaders invited Bulgaria, Czechoslovakia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and the Soviet Union to send foreign ministers to a meeting at NATO headquarters in Brussels, expected to be held on Dec. 20, with the purpose of issuing a joint declaration launching a" new era of partnership". END START END START END START The summit declaration applauded those countries' commitment to political and economic reform, and called attention to a continuing programme of visits and contacts. END START It proposed that the December meeting should be followed by regular meetings at various levels, including ministerial meetings in what it said" might be called a North Atlantic Co-operation Council". END START Soviet President Mikhail Gorbachev praised the Rome initiatives on Nov. 11. END START END START END START The NATO leaders stressed their support for the Conference on Security and Co-operation in Europe (CSCE) — which grouped east and west European countries, the USA and Canada — and urged that the CSCE's role be enhanced and expanded. END START END START The" new strategic concept" END START END START END START The new strategy, as agreed at the summit, aimed to define a role for NATO now that" the threat of a simultaneous, full-scale attack on all of NATO's European fronts has effectively been removed…". END START END START END START More unpredictable risks, the strategy communiqué said, arose from new instabilities. END START These could result from the economic, social and political problems," including ethnic rivalries and territorial disputes, which are faced by many countries in central and eastern Europe". END START Even in a co-operative relationship, Soviet military capacity was still" the most significant factor" of which NATO had to take account in maintaining the European military balance. END START While maintaining its defence, however, NATO saw greater opportunities than ever before for achieving its aims through political means, including dialogue, co-operation, crisis management and other efforts to prevent conflict. END START END START END START NATO military forces would be smaller but more mobile and flexible, and with the capability to be built up when necessary. END START Strategic nuclear forces," particularly those of the United States", were still an essential deterrent, but nuclear artillery and ground-launched short-range nuclear missiles were no longer needed in Europe and would be eliminated. END START END START Appeal to Soviet republics END START END START END START In a separate statement on Nov. 8, the summit urged Soviet republics to respect international arms control treaties, to keep nuclear weapons under a single authority, and to limit the size of their armies. END START END START END START The statement reflected worries among the NATO leaders about the risks as Soviet central control disintegrated and republican governments took power. END START It welcomed the Soviet leadership's intention to keep nuclear weapons under" the safe, responsible and reliable control" of a single authority. END START Urging restraint in the development of conventional forces, the statement said that otherwise these could exacerbate political tensions. END START END START END START French President François Mitterrand dissociated himself from the statement because of a passage which, praising Soviet moves to democracy and" economic liberty", said that market economies should be created in the Soviet republics. END START Mitterrand told a press conference that NATO should not" preach" to others on how to organize their internal affairs. END START END START Call for ceasefire in Yugoslavia END START END START END START The NATO leaders deplored the fighting in Yugoslavia and called on all parties to co-operate with international efforts to bring about a ceasefire. END START END START END START In a formal statement on Nov. 8, they condemned attacks by the Yugoslav National Army on Dubrovnik and other Croatian cities, but they added that recognition for seceding republics" can only be envisaged in the framework of an overall settlement" and that such a settlement had to guarantee the rights of" national or ethnic groups within the individual republics." END START END START Extension of Wörner's term as Secretary-General END START END START END START NATO headquarters announced on Nov. 7 that Manfred Wörner" s term as NATO Secretary-General was to be extended until June 30, 1993. END START END START END START END START END START INTERNATIONAL END START END START END START DISARMAMENT END START END START END START Soviet acceptance of" Open Skies" policy — Progress of CFE talks in Vienna END START END START END START The Soviet Union announced on Nov. 5 that it would henceforth drop all its objections to" familiarization" overflights of its territory by Western surveillance aircraft conducting inspections in accordance with international disarmament agreements. END START The announcement was made in Vienna at the recently reconvened talks on the so-called" Open Skies" policy, which allowed both sides to conduct aerial supervision for defence purposes. END START END START END START The" Open Skies" policy had been proposed by the United States in December 1989 [see pp. 37112], and test flights had been made in eastern Europe [see p. 37201], but talks on its implementation had effectively been suspended in May 1990 after Soviet expressions of reservations over militarily sensitive areas [see pp. 37267; 38255] and they had been reconvened only on Sept. 9, 1991 [see p. 38458]. END START END START END START Meanwhile, talks were also continuing in Vienna on the implementation of the Treaty on Conventional Forces in Europe (CFE), which had been signed in November 1990 by 22 states from eastern Europe and the North Atlantic Treaty Organisation (NATO) [see pp. 37838; 38255; 38458], and which provided for a multilateral reduction of troop deployment levels in Europe as well as a general reduction of conventional weapons stockpiles. END START END START END START The US Senate voted on Nov. 25 to ratify the CFE treaty, and it also approved, by 86 votes to eight, the allocation of $500,000,000 from the US defence budget to help finance the destruction of tactical nuclear weapons in the Soviet Union, as proposed on Oct. 5 by President Mikhail Gorbachev [see p. 38553]. END START END START END START These moves took place, however, against a growing background of uncertainty as to whether the increasing political instability might make it difficult to implement all of the agreements undertaken by the Soviet leadership on behalf of the Soviet Union. END START Special concern surrounded the plans announced by the Ukrainian Republic to run its own 420,000-strong army independently of the Soviet Union — a move which would result in a serious excess over the troop levels agreed in the CFE treaty. END START END START END START A draft text of the proposed CFE treaty on troop strength reductions was presented on Nov. 21 by 11 participating states (Bulgaria, Canada, Czechoslovakia, France, Germany, Hungary, Italy, Luxembourg, Norway, the United Kingdom and the United States). END START It covered all land and air forces, but not paramilitary forces, on which the treaty framework provided only for an exchange of views to take place. END START END START END START END START END START INTERNATIONAL END START END START END START INTERNATIONAL MONETARY SITUATION END START END START END START Financial instability after fears of slowing economic growth END START END START END START International financial markets experienced a period of considerable turbulence in the autumn of 1991, as uncertainties grew about the sustainability of the recovery in the United States economy, and as fears were expressed that the German economy might also face intractable difficulties in meeting the costs of unification. END START Consequently most of the world's major stock markets lost ground during this period, and international currency exchange markets became highly unstable. END START END START END START The US dollar, which had peaked at US$1.00=DM1.85 during May and June 1991 from a February trough of 1.44, had fallen back by the end of November to below 1.6, as early hopes of a rapid recovery in US consumer spending faded, and as unfavourable indicators in the employment market coincided with news of a disappointing trade balance in September. END START The deutschmark was boosted by rumours that a realignment of the parities in the European Monetary System might be imminent ahead of the Maastricht summit of European Community leaders in December. END START Sterling and the French franc remained weak, despite a raising of interest rates in France, and a major outflow of funds was observed from Finland into Germany, following Finland's announcement of a 12.3 per cent devaluation of the markka in mid-November [see p. 38587]. END START END START END START Fears of a major world stock market crash were expressed on Nov. 17-18, after a 120-point fall in the Dow Jones Industrial Average in New York. END START The collapse in confidence was prompted by proposals by the US Senate to limit credit card borrowing [see also p. 38566], a move which would have damaged the revival of retail markets; markets calmed, however, following Treasury Secretary Nicholas Brady" s dismissal of the idea, and the index ended the month 6 per cent down from the 3,075 level recorded at the end of October. END START END START END START Worries in the USA also spread to the London market, where the FT-SE 100 index fell during the month of November from 2,550 to 2,400 on uncertainties about the strength of the UK industrial recovery. END START In the Tokyo stock market the Nikkei Average also fell back during November from 25,000 to 23,500, as the implications of slowing economic growth and stock market scandals [see p. 38558] took their toll: this was 13 per cent below its 1991 peak in May, and 41 per cent down on the position at the end of 1989. END START END START END START END START END START INTERNATIONAL END START END START END START GATT END START END START END START Failure to meet Uruguay Round deadline — New momentum in negotiations END START END START END START After five years of negotiations on the Uruguay Round of multilateral trade talks of the General Agreement on Tariffs and Trade (GATT), intended to establish new rules liberalizing world trade, negotiators failed to meet a Nov. 1 target date to produce draft agreements. END START END START END START United States President Bush, meeting European Community (EC) officials in the Hague on Nov. 9, was reported to have moderated US demands for cuts in EC subsidies for farm exports, giving a new impetus to negotiations. END START Lower-level meetings in the following weeks, however, failed to produce any quick breakthrough. END START Agricultural export subsidies had been the crucial stumbling block on which this round of GATT talks foundered in December 1990 [see p. 37930]. END START END START END START The EC had moved toward a more flexible position in October when the German cabinet agreed that subsidies to farmers could be reduced and partly replaced by direct income support. END START The German, French and Irish governments had hitherto been the most adamant against further concessions in the argument over agricultural exports. END START END START END START Changes in the EC position took place against a background of moves to reform the Community's Common Agricultural Policy (CAP). END START The USA, supported by Australia and other exporters of agricultural products, had originally wanted internal farm support to be cut by 75 per cent and export subsidies by 90 per cent over 10 years. END START The EC was unwilling to cut support by more than 30 per cent. END START END START END START After the Hague meeting, which brought together President Bush, EC Commission President Jacques Delors and the incumbent EC Council President, Netherlands Prime Minister Ruud Lubbers, the USA was understood to have scaled down its demands to cuts of 30 per cent (internal) and 35 per cent (exports) over five or six years. END START END START END START The meeting took place after GATT negotiating groups in Geneva had failed to draw up draft agreements by Nov. 1, a target set in October by GATT Director-General Arthur Dunkel [see p. 38555]. END START Seven groups were working on a range of subjects including anti-dumping rules, market access, textiles, intellectual property, services and provisions for settling disputes, as well as agriculture. END START In some of these areas, progress had been made but agreement was believed to be conditional on the outcome of the dispute over agricultural trade. END START END START END START The meaning of any percentage figures for reductions in export support would depend on hard bargaining to determine (i) the base period against which reductions would be measured; (ii) dates for implementation; and (iii) standards for measuring export values or quantities. END START It would also have to be decided whether direct income payments and other forms of support for farmers would be exempt or would be considered to be export subsidies. END START END START END START After the groups failed to produce drafts, Dunkel put forward a working paper defining principles on which new rules might be based, but avoiding numbers. END START He proposed full" tariffication", a system (advocated by the USA) under which all import restraints, such as quotas, would be converted to tariffs so that they could be systematically reduced. END START END START Environment working group END START END START END START The GATT Council decided on Oct. 9 to activate a working group to discuss possible conflicts between trade rules and environmental protection. END START END START END START The working group on trade and the environment had been long established, but never before convened, the Financial Times reported. END START The GATT council decided that it should discuss the relationship of environmental regulations and GATT rules designed to remove trade restrictions. END START END START END START END START END START INTERNATIONAL END START END START END START OIL END START END START END START Ministerial meeting END START END START END START The Organization of Petrolem Exporting Countries (OPEC) held its six-monthly ministerial meeting in Vienna on Nov. 26-27, electing Jibril Aminu of Nigeria as OPEC President, and ending with an agreement to allow member countries to continue to produce near to capacity in the first quarter of 1992. END START The decision to discuss output quotas again on Feb. 12, 1992, at a meeting of the ministerial monitoring committee in Geneva, was sufficient to reverse the pre-conference decline in prices. END START OPEC's next full ministerial meeting would be on May 20, 1992, in Vienna. END START END START END START Upward price movements in October, attributed largely to concerns about Soviet supplies, had taken Brent crude on Oct. 15 to $22.50 per barrel, its highest level since the Gulf War; it fell below $20 in November, but finished at $20.25 per barrel on Nov. 28. END START END START END START With Iraq not currently exporting [see p. 38598] and Kuwait only gradually returning to the market, OPEC's other 11 member states had felt able to defer any reimposition of output restrictions, particularly in view of the serious uncertainty about Soviet supplies. END START Their formal position was to reaffirm the" September decision" [see p. 38459], which had specified a collective OPEC output ceiling of 23,650,000 barrels per day. END START Individual country quotas had last been agreed in Geneva on July 26-27, 1990, immediately prior to the Iraqi invasion of Kuwait [see p. 37632], and had been in disuse since then. END START In practice total OPEC output in November was estimated by the International Energy Agency (IEA) as slightly higher than the nominal collective ceiling, at 24,100,000 bpd (23,800,000 bpd in October). END START END START END START The IEA, with 21 member countries (and Finland and France reportedly due to join shortly), announced on Oct. 15 that it would convene a three-day forum in Paris in February 1992 for both producer and consumer country representatives to discuss energy efficiency, environmental issues, industrial co-operation and the exchange of information (but not prices or production levels). END START END START END START END START END START INTERNATIONAL END START END START END START ENVIRONMENT END START END START END START Yanomami reserve END START END START END START In an unexpected move the Brazilian President, Fernando Collor de Mello, issued a decree on Nov. 15 establishing a Yanomami Park — a 94,000 sq km reserve for the Yanomami people on their traditional lands in north-eastern Brazil. END START Some 9,000 Yanomami lived in the area, and a further 12,000 across the border in Venezuela. END START END START END START The declaration of the reserve followed a long-running campaign by environmental groups, led by Survival International, which had threatened to organize a boycott of the 1992 UN Conference on the Environment and Development (UNCED) in Rio de Janeiro in protest at the Brazilian government's repeated failure to honour promises to recognize Yanomami land rights. END START In recent years, the tribe had been badly affected by diseases brought in by prospecting miners. END START END START European Energy Charter END START END START END START Delegates from 36 countries reached agreement in Brussels on Nov. 21 on a European Energy Charter, designed to ensure supplies of oil and gas from the republics of the Soviet Union. END START The Charter was subject to ratification at a meeting of Energy Ministers in The Hague on Dec. 16-17. END START END START END START The Charter provided for assistance to" economies in transition" (notably those of the republics of the Soviet Union) in developing their energy supplies, principally by encouraging private investment. END START It was endorsed by European countries, Canada, Japan and the United States. END START Environmentalists criticized it for emphasizing improved access to energy supplies while failing to ensure adequate environmental safeguards. END START END START Soviet decision to close Antarctic station END START END START END START The Chilean daily La Epoca of Nov. 7 reported that the Soviet Union had decided to close down its Antarctic research programme because of a" critical lack of resources", and the break-up of the Union. END START Withdrawal of Soviet personnel from the bases would begin in January 1992. END START END START Californian petrol regulations END START END START END START In the United States the State of California's Air Resources Board announced new regulations for petrol on Nov. 24, requiring a 30 per cent cut in emissions of air pollutants by March 1996. END START It was expected to reduce the state's total emissions of air pollutants by about 5 per cent, or 1,435 tonnes per day. END START As a first step, the sale of leaded petrol would be banned from January 1992. END START END START Capping of last Kuwaiti oil fire END START END START END START The last of the oil fires in Kuwait, which had been started by retreating Iraqi forces igniting well heads, was capped on Nov. 6. END START The fires had burned for approximately eight months, consuming about 2,000,000 barrels of oil at a cost to Kuwait of US$100,000 million. END START END START END START The 732 fires had been extinguished by 27 fire-fighting teams led by the United States expert Red Adair. END START Initial estimates that it would take at least two years to extinguish all the fires proved pessimistic as the teams rapidly gained experience in the task. END START Teams came from China, France, Hungary, Iran, Romania, the Soviet Union and the United Kingdom, as well as from the USA and Kuwait. END START END START Japanese acceptance of drift net fishing ban END START END START END START The Japanese government announced on Nov. 25 that it would agree to co-sponsor with the United States a UN resolution imposing an indefinite moratorium on the use of drift nets from the end of 1992. END START END START END START Japan's unexpected move followed prolonged pressure from the US administration, which had in September announced a ban on the import of drift-netted fish [see p. 38459]. END START Japan had previously been the largest single user of the nets, up to 50 km long and intended primarily for catching tuna, squid and pink salmon, but fiercely criticized by environmentalists as" walls of death" which caused widespread unintentional deaths of marine mammals and other sea creatures. END START It was estimated that in 1990 Japan's drift net fishery was responsible for the deaths of 41,000,000 sea creatures other than those it was seeking to catch. END START These included 700,000 sharks, 270,000 seabirds, 26,000 marine mammals, such as whales and dolphins, and 406 sea turtles, an endangered species. END START END START END START END START END START INTERNATIONAL END START END START END START UNITED NATIONS END START END START END START UNESCO general conference END START END START END START The 26th general conference of the UN Educational, Scientific and Cultural Organization (UNESCO) was held in Paris from Oct. 15 to Nov. 7. END START It approved a constitutional reform to make the members of the executive council direct representatives of their governments. END START Despite the reforms the UK, the USA and Singapore, which had left UNESCO during the 1980s, said that they would not yet rejoin. END START END START END START A budget of US$444,704,000 for the biennium 1992-93 was approved — a fall in expenditure of $11,000,000 compared with 1990-91, achieved by cutbacks including the loss of 62 posts. END START END START END START The conference approved the accession of Estonia, Latvia, Lithuania, the Marshall Islands, the Federated States of Micronesia and Tuvalu. END START END START FAO 26th biennial conference END START END START END START The UN Food and Agriculture Organization (FAO) held its 26th biennial conference in Rome on Nov. 9-27. END START END START END START A budget for the 1992-93 biennium, providing for expenditure of US$646,000,000 (representing a cut in real terms of 4.6 per cent), was approved without major controversy [see p. 37054 for 1989 budget disputes], and the USA undertook to pay before January 1992 its arrears for 1991, which amounted to some $34,000,000 out of a total contribution of around $75,000,000. END START END START END START The accession of the European Communities (EC) to the FAO was approved on Nov. 26. END START It was the first time that an organization rather than a country had been allowed to join a UN organization. END START South Africa (a founder FAO member which had withdrawn in 1964) was expected to apply for readmission, but withdrew after the Organization for African Unity (OAU) had indicated that such a move was" premature". END START END START UNIDO general conference END START END START END START The fourth general conference of the UN Industrial Development Organization (UNIDO) was held in Vienna, Austria, on Nov. 18-23. END START END START END START Delegates failed to approve two sets of restructuring proposals put forward by the EC countries and by the USA. END START The Neue Zürcher Zeitung of Nov. 24 described UNIDO as suffering from both a leadership and identity crisis. END START A biennial budget providing for expenditure of US$180,000,000 was approved; many countries were in arrears with their contributions. END START END START END START END START END START INTERNATIONAL END START END START END START WHO END START END START END START HIV and AIDS END START END START END START " The forthright revelation by Magic Johnson that he is infected with HIV" was welcomed on Nov. 11 by the director of WHO's global programme on AIDS, Michael H. Merson. END START The US basketball star's announcement, Merson said," drives home a basic truth about the AIDS pandemic", that sexually active people could not consider themselves invulnerable, whatever their sexual preference. END START In the UK the death of Freddie Mercury, 45, of the rock group Queen, was announced in late November shortly after his declaration that he did have AIDS; he was the latest of a number of celebrated musicians and other artists to die from AIDS. END START END START END START The World Health Organization's quarterly update statistics issued on Oct. 4 had estimated worldwide cases of infection with HIV (the human immunodeficiency virus) at between nine and 11,000,000, of whom 1,500,000 had developed AIDS. END START The estimated actual AIDS figure was more than three times the total of reported cases, which had reached 418,403 from 163 countries. END START HIV cases would rise to 30-40,000,000 by the year 2000, and AIDS deaths to 1,000,000 per year. END START END START END START A WHO analysis published on Nov. 11 in Geneva showed heterosexual intercourse to be responsible for three quarters of all cases of HIV infection. END START It was the dominant form of HIV transmission in the developing world and a rising cause of infection in the industrialized world. END START In the USA, where HIV first spread primarily among homosexual or bisexual men and injecting drug users, there were now an estimated 100,000 cases attributable to heterosexual intercourse. END START Perinatal (mother-to-child) transmission of HIV, already responsible for 900,000 out of some seven million cases in Africa, was also rising rapidly in industrialized countries. END START END START END START END START END START INTERNATIONAL END START END START END START AVIATION END START END START END START Arctic military air crashes END START END START END START Arescue mission was launched on Nov. 1 to bring back 13 survivors from a Canadian air force transport plane which had crashed on Oct. 31 near the military surveillance base at Alert, Ellesmere Island — the northernmost settlement in Canada, close to the North Pole. END START Five people had died. END START END START END START At least 20 people were reported killed on Nov. 18, when a Soviet military transport aircraft crashed in bad weather at the Amderna air field on the polar Karskoe Sea. END START END START END START END START END START INTERNATIONAL END START END START END START FRANCOPHONE COUNTRIES END START END START END START Fourth summit END START END START END START The fourth summit of francophone countries, held at the Palais de Chaillot, Paris, on Nov. 19-21 was attended by delegates from 50 countries and French-speaking communities. END START END START END START Delegations attending for the first time came from Cambodia, Egypt (with 250,000 French-speakers), Bulgaria (with 350,000), and Romania (with 1,100,000). END START Algeria, which with 12,000,000 French speakers was the second largest French-speaking country after France, did not attend, viewing the gathering as a remnant from colonial days. END START END START END START The" Chaillot declaration" approved at the end of the meeting pledged to" advance the process of democratization". END START Prime Minister Brian Mulroney of Canada announced that Canadian development aid would be tied to progress on democratization and respect for human rights. END START The meeting also decided that the international francophone television channel, TV 5, should from 1992 be broadcast to Africa for one hour a day. END START (TV 5 could already be received in western Europe, north America and the Caribbean). END START END START END START Delegates approved a motion calling for the" re-establishment of constitutional order in Haïti and the restoration of the legitimate President, Fr Aristide". END START END START END START The fifth summit was to be in 1993 in Mauritius. END START END START END START END START END START INTERNATIONAL END START END START END START SPACE RESEARCH END START END START END START ESA conference END START END START END START At a conference in Munich, Germany, on Nov. 18-20 ministers from the 13 member countries of the European Space Agency (ESA) decided not to move on from the research to the development phase of the key Hermes spacecraft and the Columbus space laboratory projects. END START END START END START Immediately before the conference Germany had expressed reluctance to commit further funds to the projects because of the costs of German unification. END START Ministers agreed to open projects to the Soviet Union and Japan for collaboration and were expected to meet in late 1992 to review the situation. END START END START Shuttle and Mir flights END START END START END START In late November the United States space shuttle Atlantis undertook a mission to launch a $300,000,000 missile warning satellite, according to newspaper reports of Dec. 2. END START END START END START The Soyuz TM-13 mission, launched on Oct. 2 from the Baikanur cosmodrome in Kazakhstan, carried one Austrian and two Soviet cosmonauts (one of whom was officially described as representing the Republic of Kazakhstan). END START One Soviet cosmonaut was transferred from Soyuz TM-13 to the Mir space station; another, who had spent 144 days in space [see p. 38219], returned to earth on Soyuz TM-13. END START END START END START END START END START INTERNATIONAL END START END START END START DEVELOPING COUNTRIES END START END START END START the Group of 15, on south-south co-operation within the Non-Aligned Movement, held a summit meeting in Caracas, Venezuela, on Nov. 27-29, attended by, amongst others, the heads of government of India, Indonesia, Malaysia and Senegal (which would host the next G-15 summit); third world debt, and protectionism among industrialised countries, featured prominently in discussion, and it was envisaged that a G-15 position on the new international order would be announced early in 1992. END START END START END START END START END START INTERNATIONAL END START END START END START ENERGY END START END START END START Physicists of the Joint European Torus (JET) based near Oxford, England, suceeded for the first time in producing for two seconds energy by means of nuclear fusion. END START END START END START END START END START INTERNATIONAL END START END START END START INTERPOL END START END START END START Albania, Lithuania, Mongolia and Vietnam joined Interpol at the 60th session of its general assembly on Nov. 4-8 in Punta del Este, Uruguay, bringing to 158 the total membership of the organization for international police co-operation. END START END START END START END START END START ASIA — PACIFIC END START END START END START AFGHANISTAN END START END START END START Area: 652,225 sq km. END START Population: 16,600,000 (1990 UNFPA est.). END START Capital: Kabul. END START Languages: Pashtu (official); Dari. END START Religion: Islam (nearly 100% — majority Sunni Moslems); Hinduism, Sikhism and Judaism. END START Armed forces: 58,000 (1990). END START Currency: afghani (US$1.00=56.6172 afghanis as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB, ICO (membership granted to Afghan Interim Government (AIG) — see p. 36537), IPU, NAM. END START END START POLITICAL SYSTEM END START END START END START Afghanistan, which had been a monarchy until 1973, was then declared a republic following a coup. END START A further coup in 1978 led by the People's Democratic Party of Afghanistan (PDPA) established the Democratic Republic in 1978, with close ties with the Soviet Union; legislative functions were assumed by a Revolutionary Council, which elected a Presidium and a Council of Ministers (Cabinet). END START Opposition to the new regime led to armed insurrection, and in December 1979, 80,000 Soviet troops entered Afghanistan [see p. 30229] arousing world-wide condemnation. END START END START END START At the end of 1986 the PDPA leadership announced a programme of" national reconciliation" to end the conflict with anti-government mujaheddin guerrillas who controlled large areas of the country. END START END START END START A new Constitution, restoring the name Republic of Afghanistan, was approved by the Loya Jirga (Grand National Assembly or Supreme Council — a nationwide traditional gathering of tribal and other leaders) on Nov. 30, 1987. END START It provided for an executive President and a bicameral National Assembly, the lower house of which would be elected for a five-year term, with the upper house being partly elected and partly appointed. END START The President would appoint the Council of Ministers, subject to the approval of the National Assembly. END START The PDPA would also lose its monopoly on political power. END START END START END START Following the withdrawal of Soviet troops, completed on Feb. 15, 1989 [see p. 36448], a state of emergency was declared and a 20-member Supreme Council for the Defence of the Homeland, headed by President Najibullah, was announced on Feb. 19 [see pp. 36449; 36656; 37043]; a newly created Executive Committee of the Council of Ministers was appointed on Feb. 21, and in May 1990 a new Cabinet was presented [see p. 37453]. END START At the PDPA's second congress held on June 27-29, the party was re-named the Homeland Party [see p. 37530]. END START END START Main government leaders END START END START END START President: Najibullah. END START END START END START Prime Minister: Fazl Haq Khaleqiar. END START END START END START Other principal ministers: Abdol Wakil (Foreign Affairs); Maj.-Gen. END START Mohammad Aslam Watanjar (Defence); Raz Mohammad Paktin (Internal Affairs); Mohammad Hakim (Finance); Gholam Faruq Yaqubi (State Security). END START END START Changes to Council of Ministers to June 1991 END START END START END START March 1990: dismissal of Lt.-Gen. END START Shahnawaz Tanay who was replaced as Defence Minister by Watanjar; appointment of Patkin as Minister of Internal Affairs. END START May 1990: nomination by Najibullah of Khaleqiar (who was not a member of the PDPA) as Prime Minister and appointment of new Cabinet [see p. 37453]. END START April 1991: dismissal of Sultan Ali Keshtmand as First Vice-President; appointment of Abdol Wahed Sorabi as Vice-President [see p. 38153]. END START June 1991: dismissal of Mahmud Barialay as Deputy Prime Minister [see p. 38295]. END START END START Ruling party END START END START END START Hezb-e Watan (Homeland Party, Najibullah sec. -gen.) END START END START Political parties END START END START END START There are many insurgent groups of mujaheddin guerrillas fighting against the government. END START Although the different groups co-operate with one another to varying degrees, relations are often strained by rivalry and feuding. END START In May 1985 seven major groups formed a grand alliance, the Ittehad-i-Islami Afghan Mujaheddin, which subsequently became the kernel of the Pakistan-based Afghan Interim Government (AIG) [see p. 36449]. END START It includes three moderate groups, namely Harakat-i-Inqilab-i-Islam (Movement for Islamic Revolution, Mohammad Nabi Mohammad l.), END START Jebha-i-Nejat-i-Melli Afghanistan (Afghan National Liberation Front, Seghbatullah Mujjaddedi sec. -gen.), END START Mahaz-i-Melli-i-Islami (National Islamic Front, Pir Sayed Ahmed Gailani l.) and four fundamentalist Sunni groups, namely, Hezb-i-Islami (Islamic Party, two factions respectively led by Gulbuddin Hekmatyar and Mohammad Yunus Khales); Jamiat-i Islami (Islamic Society, Burhanuddin Rabbani l.); END START Ittehad-i-Islami (Islamic Unity, Abdul-Rabur Rasul Sayaf l.) END START END START END START In June 1987 eight Islamic Shia factions, based in Iran, formed the Islamic Coalition Council of Afghanistan under Abdul Karim Khaleeli: the Afghan Nasr Organization; the Guardians of Islamic Jihad in Afghanistan; the United Islamic Front of Afghanistan; the Islamic Force of Afghanistan; the Dawa Party of Islamic Unity of Afghanistan; the Harakat-e Islami Afghanistan (the Islamic Movement of Afghanistan, Ayatollah Asef Mohseni l.); the Hezbollah; and the Islamic Struggle for Afghanistan. END START END START Elections END START END START END START Elections to the National Assembly were held on April 5-14, 1988. END START Najibullah was elected on Nov. 30, 1987, by the Loya Jirga as President of the Republic and C.-in-C. of the Armed Forces for a (renewable) seven-year term [p. 35425]. END START END START 1990/91 OVERVIEW END START END START END START After a period of political upheaval precipitated by an attempted coup in March 1990 [see pp. 37314-15], the government lifted the state of emergency in May and endorsed constitutional amendments aimed at ending the PDPA's monopoly on political power [for its renaming in June see p. 37530] and introducing multiparty democracy. END START END START END START Efforts to end the 12-year civil war prompted the government in May to renew its call for a ceasefire [see p. 37453]; in June it proposed a peace conference, after reports that the United States and the Soviet Union had failed to resolve differences over a transition process [see p. 37669]. END START END START END START Hopes of a peace settlement receded following an intensification in fighting between government troops and mujaheddin which culminated in the capture in October by mujaheddin forces of Tarin Kot, the capital of Uruzgan province, [see p. 37775]. END START Meanwhile, moves continued, sponsored by Pakistan, to forge political unity among warring rebel factions [see pp. 37355-56; 37775]. END START END START END START The thaw in US-Soviet relations and the unwillingness of both super-powers to prolong the war led to the first publicly acknowledged round of talks between Najibullah and sections of the mujaheddin alliance in November [see p. 37855]. END START In February 1991 high-ranking Soviet officials met with mujaheddin leaders in Islamabad [see p. 38008]. END START END START END START Peace negotiations suffered a serious setback in April following a major mujaheddin offensive against the town of Khost which eventually fell to the rebels [see p. 38153]. END START END START END START A UN peace plan proposed in May 1991, and accepted by the government, was rejected by mujaheddin leaders [see p. 38194]. END START Efforts by Pakistan and Iran to broker a peace settlement with the mujaheddin on the basis of the UN plan were reported to be in progress as of mid-1991. END START END START Economy END START END START END START According to non-governmental sources, the economy showed no real signs of improvement. END START Figures released by the International Monetary Fund (IMF) showed that Afghanistan recorded a visible trade deficit of US$220,600,000 in 1989 and a deficit of US$217,100,000 on the current account of its balance of payments. END START Other estimates indicated that the economic targets of the 1986-91 five-year economic and social development plan, including a 25 per cent growth in the economy over the plan period, were unlikely to be attained. END START END START END START In March 1990 the government acknowledged that the" intensification of the war" had compounded the country's economic difficulties in 1989. END START END START END START The 1990/91 budget, presented on March 17, 1990, allocated 1,500 million afghanis for development expenditure in the public sector. END START It forecast a 4.4 per cent increase in revenues and a 12.1 per cent increase in expenditure; investment was expected to increase by 43 per cent in 1990, with greater incentives for private capital investment. END START Agricultural production grew by 1 per cent in 1989/90 as compared with the previous fiscal year. END START Manufacturing industry was expected to grow by 12.9 per cent in 1990, increasing its share in the industrial gross domestic product (GDP) from 56.7 per cent to 58.6 per cent. END START The foreign trade growth rate was forecast to reach 18.8 per cent, of which the growth in exports was expected to account for 36 per cent and commercial imports 13.2 per cent. END START END START END START Also in March the government ordered confiscated property to be returned to private ownership in an attempt to revive the private sector [see p. 37453] and in May announced the redrafting of existing laws to encourage private and foreign investment [see p. 37453]. END START END START END START An IMF delegation held talks with Finance Ministry officials in Kabul in March 1991 and in May the Finance Minister, Mohammad Hakim, met in Canada officials from the Asian Development Bank (ADB) and the World Bank to negotiate project financing. END START END START END START The draft budget for fiscal 1991/92, approved by the government on March 4, 1991, showed a 29.3 per cent rise in income plans and a 3.4 per cent rise in expenditure plans over the previous year. END START Anticipated state income from internal sources showed an increase of 47.5 per cent. END START An increase of 51.7 per cent was forecast in the state development budget owing to increased foreign assistance contributions and project loans. END START END START END START A report on the first quarter of the current fiscal year, submitted by the Finance Ministry in mid-July, showed that state income had increased by 10.6 per cent in comparison with the government's estimate in its socio-economic development plan. END START END START Foreign affairs END START END START END START It was announced in January 1990 that France would be the first Western country to reopen its embassy in Kabul [see p. 37184] and Italy followed suit in July. END START Diplomatic relations were established with Colombia in August and with Venezuela in December. END START END START END START Relations with the Soviet Union were marked by a number of economic and trade agreements including a Soviet grant-in-aid in July 1990 to the value of 42,000,000 roubles (about US$74,000,000) to balance accounts with Afghanistan. END START (According to government figures, Eastern bloc countries accounted for 68 per cent of the total foreign trade turnover in 1986/87, of which the Soviet Union accounted for 60 per cent.) END START Najibullah held talks with Soviet leaders in Moscow during a visit on July 29-Aug. 25, 1990. END START END START END START Najibullah visited India on Aug. 28-31, when he held talks with Indian leaders and concluded a number of bilateral economic agreements. END START A wheat supply protocol was signed between the two countries in November. END START END START END START Relations with Pakistan continued to be strained as a result of Pakistan's active support for the mujaheddin; an offer to normalize relations was made by Najibullah in February 1991. END START In September 1990 the government criticized Saudi Arabia for extending an invitation to Pakistan-based mujaheddin for talks with Saudi leaders. END START END START END START In January 1991, the government protested to Sudan for granting recognition to the AIG. END START END START END START The involvement of the mujaheddin as part of the multinational force engaged in the Gulf war was criticized by the government which in February 1991 declared that military action in the Gulf had exceeded the mandate of UN Resolution 678. END START END START END START END START END START ASIA — PACIFIC END START END START END START BANGLADESH END START END START END START Area: 143,998 sq km. END START Population: 107,992,140 (1991 preliminary census returns — see p. 38394). END START Capital: Dhaka. END START Languages: Bengali (official — 95%); tribal dialects (5%). END START Religion: Islam (state religion — 87%), Hinduism (12%), Buddhism and Christianity. END START Armed forces: 103,500 (1990). END START Currency: (US$1.00=taka36.4403 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB, ICO, NAM, SAARC. END START END START POLITICAL SYSTEM END START END START END START The People's Republic of Bangladesh (formerly East Pakistan) was unilaterally proclaimed independent on March 26, 1971, by the Awami League; de facto secession from Pakistan followed the Indo-Pakistan war which was concluded in December 1971. END START Lt.-Gen. (retd.) END START Hussain Mohammad Ershad who came to power in 1982 after a military coup, was forced as result of widespread demonstrations to resign as President in early December 1990. END START Following a general election in February 1991 a new government led by the Bangladesh Nationalist Party (BNP) was sworn in in March. END START A popular referendum in September endorsed constitutional amendments restoring full powers to the Jatiya Sangsad (the unicameral legislature with 330 seats — 300 directly elected and 30 reserved for indirectly elected women) under a parliamentary system which had been suspended in 1975. END START Under the new Constitution the President, elected by the Jatiya Sangsad, assumed a largely ceremonial role. END START END START Main government leaders END START END START END START President: Abdur Rahman Biswas, formerly Speaker of the Jatiya Sangsad, was elected by its members in October 1991 to replace Acting President Chief Justice Shehabuddin Ahmed who had been sworn in as head of a transitional Council of Advisers in December 1990 [see pp. 37907; 38152; 38533]. END START END START END START Prime Minister: Begum Khaleda Zia was sworn in as Prime Minister in March 1991, and from October also held the portfolios of Defence, Establishment and Cabinet Division. END START END START END START Other principal ministers: A. S. M. Mustafizur Rahman (Foreign Affairs); Saifur Rahman (Finance); Zahiruddin Khan (Planning); Shamsul Islam Khan (Industry); Abdul Matin Choudhry (Home). END START END START Cabinet changes to June 1991 END START END START END START March 1990: resignation of Finance and Planning Ministers [see p. 37316]. END START July: appointment of Monzur Quader as Minister for Relief and Rehabilitation to replace Mamdudur Rahman Choudhry who was appointed Minister for Posts and Shipping. END START August: appointment of M. Abdus Sattar as Minister for Industry to replace Moudud Ahmed, who was appointed Minister for Planning; M. Faruq Choudhry replaced Sattar as Minister for Fisheries and Livestock. END START December: appointment of Council of Advisers [see p. 37907]. END START March 1991: swearing-in of new Council of Ministers [see p. 38102]. END START END START Ruling party END START END START END START Bangladesh Jatiyatabadi Dal (BNP — Bangladesh Nationalist Party formed in 1978 by merger of right-of-centre groups supporting the then President Ziaur Rahman (assassinated in 1981); Begum Khaleda Zia ch.; Badruddoja Choudhry vice-ch.). END START END START Other political parties END START END START END START Awami League (Sheikh Hasina Wajed gen. sec.); END START Jatiya Dal (National Party, Lt.-Gen. (retd.) END START Hussain Mohammad Ershad ch.); END START Jamaat-i-Islami Bangladesh (Islamic Party of Bangladesh, Abbas Ali Khan acting pres.); END START Bangladesh Communist Party (Saifuddin Ahmed Malik sec. -gen). END START END START Elections END START END START END START Last Jatiya Sangsad elections: February 1991 [see pp. 38006-07; 38102]; last presidential elections: October 1991 [see pp. 38533-34]. END START END START 1990-91 OVERVIEW END START END START END START After a period of relative calm in the early part of 1990 (marred only by sporadic violence surrounding the election of 460 sub-district councils (upozila) on March 12-25) the Ershad regime was confronted in mid-October with massive nationwide student protests. END START In November the government attempted to suppress further political unrest by imposing a state of emergency and ordering the arrest of the country's principal political leaders, including the BNP leader, Begum Khaleda Zia, and the head of the Awami League, Sheikh Hasina Wajed [see p. 37856]. END START Ershad's offer in early December to hold, by June 1991, simultaneous parliamentary and presidential elections was rejected by opposition parties, who demanded his immediate removal from office. END START On Dec. 6 Ershad was forced to relinquish power and handed over control of the government to Chief Justice Shehabuddin Ahmed who had been nominated as Acting President by the main opposition alliances. END START Ershad and a number of former ministers were arrested on charges of corruption and abuse of power, and the transitional government on Dec. 14 announced that parliamentary elections would be held on March 2, 1991 (subsequently brought forward to Feb. 27). END START END START END START The February elections resulted in a substantial victory (in terms of the number of seats won rather than the percentage of votes cast) for the BNP [see p. 38006]. END START In March Begum Zia was sworn in as the country's first woman Prime Minister [see p. 38102]. END START END START END START The devastating cyclone which struck the country in late April [see pp. 38152; 38176-77] proved a serious test for the new administration, which was subjected to widespread domestic and international criticism for its handling of relief efforts [ibid]. END START By June the government's initially fragile hold seemed stronger after popular endorsement of its bold constitutional initiatives aimed at restoring parliamentary democracy [see pp. 38394; 38439]. END START Meanwhile, Ershad's Jatiya Party suffered a serious blow when a court sentenced the former President to 10 years'" rigorous imprisonment" [see p. 38288]. END START END START Security END START END START END START June 1991: limited autonomy granted to Chittagong Hill Tracts (CHT) [see p. 38289]. END START END START Economy END START END START END START September 1990: impact of Gulf crisis [see p. 37697]. END START May 1991: international economic assistance for cyclone disaster. END START June: 1991/92 budget and cost of cyclone damage [see p. 38289]. END START END START END START Allegations of widespread economic mismanagement dogged the Ershad regime during the early part of 1990. END START In its 1990 annual report to foreign-aid donor countries, the World Bank castigated the government for a" particularly poor" budgetary performance and warned that without economic growth at a sustained 5 per cent, the prospects of alleviating the country's severe poverty were dim. END START (Economic growth had slowed from 4 per cent a year average in 1981-86 — modestly above population growth of 2.2 per cent — to only 2.8 per cent in 1989-90.) END START The resignation in March of two senior economic ministers [see p. 37316] following a visit by the President of the World Bank, Barber Conable, lent credence to reports that almost US$500,000,000 in credits were being withheld by the Bank and the International Monetary Fund (IMF) because of dissatisfaction with the government's short-term economic policies. END START In particular, concern over the country's widening trade deficit had been compounded by a sharp fall in foreign exchange reserves from a peak of US$1,007 million in February 1989 to around US$450,000,000 in March 1990. END START END START END START In April the World Bank-sponsored Aid to Bangladesh Consortium promised US$1,800 million in soft loans and grants — far less than the US$2,500 million requested by the government — reportedly because of continuing concern over the government's economic policies. END START END START END START In June the government presented its budget for fiscal 1990/91 which projected a total outlay of taka140,000 million with estimated revenue receipts set at just over taka75,627 million and revenue expenditure at taka73,000 million. END START END START END START The government's decision to devalue the taka by as much as 11 per cent in 1990, reportedly in response to the IMF's pressure for a 15 per cent devaluation to improve the competitiveness of the country's exports, helped ease the balance-of-payments deficit, leading by May 1991 to foreign exchange reserves standing at around US$700,000,000. END START Despite substantial losses resulting from the ban on exports to Iraq following that country's invasion of Kuwait in August 1990, tea exports rose 35 per cent in the second half of 1990. END START END START END START In August the IMF approved a three-year arrangement amounting to about US$353,000,000 under an enhanced structural adjustment facility (ESAF). END START In September the government announced new austerity measures including a reduction in public spending to counter the adverse effects of the Gulf crisis [see p. 37697] which, taking into account the loss of remittances from Bangladeshis in Iraq, loss of exports and a squeeze on jobs in other Gulf states, was expected to cause a loss of US$250,000,000. END START END START END START In May 1991 the Bangladesh aid Consortium increased longer-term assistance for the 12 months running to June 1992 [see p. 38177]. END START In June the Zia government presented its 1991/92 budget, detailing plans to deregulate the economy [see pp. 38289; 38394]. END START END START END START The central bank's annual report, released in February 1991, showed that GDP had grown by 2.3 per cent in 1990, but would slow in the 12 months to end-June 1991 as a result of an increase in oil prices and the loss of remittances from Iraq caused by the Gulf war. END START Agricultural production had increased by 5.6 per cent in 1989/90 while the industrial sector grew by 8.4 per cent, as compared with 2.3 per cent in 1988/89. END START However, the country's balance of payments recorded a deficit of US$100,000,000 in 1989/90 after a surplus of US$6,000,000 in the previous year. END START Concluding that the country's increasing debt burden would reduce its net aid receipts in the fiscal year to end-June 1991, the report projected that debt service costs would rise to US$331,000,000 (from US$290,000,000 in the previous fiscal year). END START END START END START Bangladesh's principal trading partners in 1988/89 were: exports to the USA, Italy and Singapore; imports from the USA, Japan and India. END START END START Foreign relations END START END START END START August 1990: deployment of troops to Gulf multinational force [see p. 37641]. END START September: departure of troops to Gulf [see p. 37694]. END START November: allegations of Indian involvement in anti-Ershad demonstrations [see p. 37856]. END START May 1991: signing of accord with USA [see p. 38177]. END START June: visit by Zia to China and the Middle East [see p. 38289]. END START END START END START The early part of 1990 witnessed closer relations with France following a visit by Ershad to Paris on Feb. 4-5 and a return visit to Bangladesh by President François Mitterrand on Feb. 22-24; in April France promised US$47,400,000 in aid to Bangladesh. END START A trade agreement with the Soviet Union was signed in March. END START A bilateral economic agreement with China was signed in Beijing on June 30 during a state visit by Ershad. END START Economic agreements with China were also signed in January, May and July. END START President Ershad visited Thailand on May 4-5 and Belgium on Oct. 16-18. END START Japan agreed during a visit in May by the then Japanese Prime Minister, Toshiki Kaifu to extend a loan of 31,200 million yen (US$235 million). END START Relations with India were marked in July by the signing of a cultural agreement, and in September by the re-opening of rail links for freight traffic; Indo-Bangladeshi talks on border security were held in April 1991. END START Defence officials from Pakistan visited Bangladesh in May 1990 and in July 1991. END START END START END START END START END START ASIA — PACIFIC END START END START END START BHUTAN END START END START END START Area: 46,500 sq km. END START Population: 1,500,000 (1990 UNPFA est.). END START Capital: Thimphu. END START Language: Dzongkha (official). END START Religion: Mahayana Buddhism (state religion); Hinduism (25%, mainly ethnic Nepalese). END START Armed forces: 5,000 (1990 est.). END START Currency: ngultrum (US$1.00=25.6988 ngultrum as at Sept. 30, 1991 — at par with Indian rupee). END START END START END START Major international affiliations: ADB, NAM, SAARC. END START END START POLITICAL SYSTEM END START END START END START The Kingdom of Bhutan is a hereditary limited monarchy in which power is shared between the King (assisted by a Royal Advisory Council), the Council of Ministers, the National Assembly (Tsogdu) and the monastic head of the Kingdom's Buddhist priesthood (Je Khempo). END START The Tsogdu is required to pass a vote of confidence in the King by a two-thirds majority every three years and has the power to replace the monarch. END START END START Main government leaders END START END START END START Jigme Singye Wangchuck, Druk Gyalpo (Dragon King) and Chair of the Council of Ministers, acceded to the throne in 1972. END START END START END START Other principal ministers: Lyonpo Dorji Tshering (Finance); HRH Namgyel Wangchuck (Home Affairs); Lyonpo Dawa Tshering (Foreign Affairs); Lyonpo Om Pradhan (Trade and Industries); Lyonpo T. Tobgyal (Social Services; Communications). END START END START Cabinet changes END START END START END START None to end-June 1991. END START END START Political parties END START END START END START There are no legal political parties. END START Illegal parties include: the Bhutan People's Party (R. K. Budathoki pres., D. K. Rai gen. sec.); the United Liberation People's Front (Balaram Poudyal l.); the People's Forum for Human Rights (Gopal Sharma, Vikay Thapa ls.). END START END START Elections END START END START END START The 151-member Tsogdu includes 106 directly elected representatives, each elected for a three-year term by individual constituencies at various dates depending on the expiry of their term. END START END START 1990/91 OVERVIEW END START END START END START Tension between the Bhutanese (Drukpa) and Nepalese communities increased markedly in 1990 and early 1991. END START The catalyst for the unrest had been the initiation of a programme of Driglam Namzha (national customs and etiquette) as part of the sixth five-year plan (1987-92). END START The programme, which aimed to revitalize (Buddhist) Drukpa culture, had the effect of seriously alienating the (Hindu) Nepalese minority. END START Various parties and groups were established 1989 and 1990 in Nepal itself to oppose the programme and to press for democratic reforms. END START The most influential of these groups was the Bhutan People's Party (BPP), which organized a series of large demonstrations in southern Bhutan in September 1990 to protest against Drukpa domination and to demand political reforms [see p. 37711]. END START Many of the demonstrators were Nepalese who had crossed into southern Bhutan from India. END START The demonstrations were broken up by the security forces and according to unsubstantiated BPP sources some 300 people were killed during the security operation. END START There were also reports throughout 1990 detailing acts of violence carried out against Bhutanese citizens by ethnic Nepalese and various other dissident elements. END START END START END START In an interview with The Times of India on Oct. 5, 1990, King Wangchuck expressed his willingness to enter into a dialogue with the dissidents. END START He said that he was willing to modify parts of the Driglam Namzha programme and admitted that the current mode of representation in the Tsogdu was imperfect since it gave the Nepalese-dominated districts in the south only 16 seats out of a total of 151. END START END START Foreign relations END START END START END START Bhutan and India signed an agreement on trade and commerce for 1990-95 in February 1990. END START Under the agreement, both countries would continue to have free trading arrangements as before. END START Trade would continue to be transacted in Indian rupees or Bhutanese ngultrum. END START END START END START King Jigme paid a four-day visit to India in late November 1990. END START He held talks with the then Prime Minister, Chandra Shekhar, and President Ramaswamy Venkataraman. END START During the visit a memorandum of understanding was signed providing Indian assistance for the second and third stages of the Chukha hydroelectric project [see p. 37356 for inauguration of the project's first stage by Venkataraman in October 1988]. END START END START END START In February 1991 the travel permit system between India and Bhutan was abolished, allowing free movement across the border. END START END START END START The seventh round of bilateral boundary talks between Bhutan and China, held in Thimphu in late August 1990, was reported to have made" good progress" and yielded" positive results" [for fifth and sixth rounds see p. 37356]. END START END START END START END START END START ASIA — PACIFIC END START END START END START BRUNEI END START END START END START Area: 5,765 sq km. END START Population: 250,000 (1989 est.). END START Capital: Bandar Seri Begawan. END START Languages: Malay; Chinese and English. END START Religion: Islam (official; mainly Sunni Moslems); majority of Chinese are Buddhists, Confucians or Daoists. END START Armed forces: 4,200 (1990). END START Currency: Brunei dollar (US$1.00=B$1.6816 as at Sept. 30, 1991). END START END START END START Major international affiliations: APEC, ASEAN, ICO. END START END START POLITICAL SYSTEM END START END START END START Having gained full internal self-government in 1971, Brunei became fully independent from the United Kingdom in 1984. END START The Sultan, in whom the 1959 Constitution vests supreme executive authority, presides over and is advised and assisted by a Council of Cabinet Ministers, a Religious Council and a Privy Council. END START A state of emergency has been in force and the Sultan has ruled by decree since a large-scale revolt in 1962 which resulted in the suspension of sections of the Constitution. END START END START Main government leaders END START END START END START Sir Hassanal Bolkiah, Sultan, Prime Minister and Defence Minister, effectively rules the country by decree. END START END START END START Other principal ministers: Prince Jefri Bolkiah (Finance); Prince Mohamed Bolkiah (Foreign Affairs); Pehin Dato Haji Abdul Rahman (Industry and Primary Resources); Pehin Dato Haji Isa (Internal Affairs and Special Adviser in Prime Minister's Office). END START END START Cabinet changes END START END START END START None to end-June 1991. END START END START Political parties END START END START END START There are no legal political parties. END START Illegal political parties include the People's Party of Brunei (Parti Ra'ayat Brunei — PRB) and the Brunei National Democratic Party (BNDP). END START END START Elections END START END START END START No elections. END START END START 1990/91 OVERVIEW END START END START END START During 1990 Sultan Bolkiah encouraged the population to adopt the concept of Melayu Islam Beraja (MIB — Malay Islamic Monarchy) as the state ideology. END START In a major speech delivered in October to mark the" Birth of the Prophet", the Sultan declared that MIB was" God's will". END START MIB emphasized strict observance of Islam, the distinctive nature of Brunei culture and the sovereignty of the monarchy. END START The Sultan's endorsement of traditional Moslem values was widely believed to be a response to an increase in social problems, especially unemployment which increased from 3.6 per cent in 1988 to 6 per cent in 1989. END START END START END START Political parties remained banned in Brunei, but party members detained by the government were released in 1990. END START Six long-term political detainees, all members of the PRB, were released in January [see p. 37190], and the leaders of the BNDP, Abdul Latif Hamid and Abdul Latif Chuchu, were released in April 1990. END START However, the following month Abdul Latif Hamid died after suffering an asthma attack. END START END START END START The Agence France-Presse (AFP) news agency reported on Feb. 13, 1991, that al-Arqam, a Moslem movement, had been banned by royal decree for allegedly spreading teachings contrary to Islam. END START END START Economy END START END START END START During 1989 and 1990 the Sultan and his government continued their efforts to reduce Brunei's dependence on income from petroleum and natural gas — broadening the economy was the primary aim of the fifth five-year plan (1986-90). END START Economic statistics indicated that the government had made some progress in its diversification plans. END START The 1989 GDP growth rate of 2.7 per cent, up from 2.2 per cent in 1988, was partly attributed to growth in the non-oil sector. END START END START Foreign relations END START END START END START The establishment of diplomatic relations between Singapore and China in October 1990 [see p. 37780] meant that Brunei became the sole ASEAN member without formal diplomatic ties with China. END START A Chinese delegation, headed by Deputy Foreign Minister Xu Dunxin, visited Brunei on April 10-13, 1991, after which the government announced that it was considering the matter of establishing diplomatic relations with China and wished to have economic and cultural exchanges. END START END START END START Attempts continued to be made during 1990 and 1991 to persuade Brunei to join the Five-Power Defence Arrangement (FPDA), in which Australia, Malaysia, New Zealand, Singapore, and the United Kingdom already participated. END START The five held large-scale military exercises in the South China Sea in April 1991. END START Shortly after the exercises, in early May, the Prime Minister of Singapore, Goh Chok Tong, visited Brunei for talks with the Sultan. END START After the talks Goh said that the Sultan had shown considerable interest in joining the FPDA, and that Singapore would welcome and support such a move. END START END START END START In July 1990, in response to the uncertainty over the future of US bases in the Philippines, Brunei joined Singapore in offering the USA the option of operating its forces from Brunei. END START END START END START A report in the Financial Times of May 21, 1991, claimed that a UK deal to supply arms to Brunei worth some £400,000,000 (US$692,000,000) was under threat. END START According to the report a protocol covering the supply of aircraft and naval vessels had been signed by Bolkiah and the then British Prime Minister, Margaret Thatcher, during the Commonwealth heads of government meeting held in Malaysia in October 1989. END START However, the report stated that no firm contracts had yet been signed and that" part of the deal could be lost to German or Italian suppliers". END START END START END START The then Prime Minister of Japan, Toshiki Kaifu, visited Brunei during a tour of South-East Asia in April-May 1991 [see p. 38191]. END START Kaifu was the first Japanese Prime Minister to visit Brunei. END START END START END START END START END START ASIA — PACIFIC END START END START END START CAMBODIA END START END START END START Area: 181,035 sq km. END START Population: 8,200,000 (1990 UNDP est.). END START Capital: Phnom Penh. END START Language: Khmer (official). END START Religion: Theravada Buddhism. END START Armed forces: 111,800 (1990). END START Currency: riel (US$1.00=799.087 riel as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; NAM. END START END START POLITICAL SYSTEM END START END START END START Legislative power in the State of Cambodia (SOC), a name adopted in April 1989 by what had been since 1979 the People's Republic of Kampuchea [for previous names see p. 37289], is vested in the National Assembly. END START The Assembly (which meets twice a year) elects a Council of State as its permanent organ from among its members. END START Executive power is held by a Council of Ministers elected by the Assembly and responsible to it. END START Much of the SOC's effective political power rests with the leadership of the country's sole legitimate party, the Kampuchean People's Revolutionary Party. END START END START Main government leaders of the State of Cambodia END START END START END START " Legitimate Head of State": Prince Norodom Sihanouk (since November 1991 — see p. 38573). END START END START END START Chair of the Council of Ministers: Hun Sen. END START END START END START Other principal ministers: Bou Thang (Vice-Chair); Chea Soth (Vice-Chair); Say Chhum (Vice-Chair); Say Phouthang (Vice-Chair; Chair of Central Control Commission); Kong Samol (Vice-Chair; Minister in charge of the Cabinet of the Council of Ministers); Gen. Tea Banh (Vice-Chair; National Defence); Hor Nam Hong (Foreign Affairs); Gen. Sin Song (Interior); Chhay Than (Finance). END START END START Changes to Council of Ministers 1990-1991 END START END START END START A number of ministers were replaced in August 1990, allegedly as a result of a power struggle [see p. 37655]. END START In September Hor Nam Hong replaced Hun Sen as Foreign Minister and Lt.-Gen. END START Nhim Venda replaced Taing Sarim as Trade Minister [see p. 37712]. END START END START National Government of Cambodia END START END START END START The National Government of Cambodia (NGC), the rebel coalition government-in-exile, was proclaimed in February 1990. END START It had previously been known as the Coalition Government of Democratic Kampuchea (CGDK). END START The NGC is a coalition of the three rebel factions, namely: (i) the Khmers Rouges (also known as the Party of Democratic Kampuchea, Khieu Samphan pres., Son Sen vice-pres., considerable influence wielded by Pol Pot, Ieng Sary, Ta Mok and Nuon Chea); (ii) the Khmer People's National Liberation Front (KPNLF, Son Sann pres.); and (iii) the Sihanoukists (also known as the United National Front for an Independent, Neutral, Peaceful and Co-operative Cambodia — Funcinpec, Norodom Ranaridh l.). END START END START END START NGC leadership: Prince Norodom Sihanouk (President); Khieu Samphan (Vice-President in charge of Foreign Affairs; Son Sann (Prime Minister). END START END START Supreme National Council END START END START END START The all-party Supreme National Council (SNC) was formed in September 1990. END START It has the following members: Norodom Sihanouk (President), Hun Sen (SOC), Gen. Tea Banh (SOC), Hor Nam Hong (SOC), Maj.-Gen. END START Sin Sen (SOC), Dit Munty (SOC), Im Chhunlim (SOC), Norodom Ranaridh (Sihanoukist), Khieu Samphan (Khmers Rouges, Son Sen (Khmers Rouges), Son Sann (KPNLF), Ieng Muli (KPNLF). END START END START END START The SOC replaced three of its SNC members in February 1991 [see p. 38005]. END START In June Prince Sihanouk replaced Chausen Kosal as one of the two Sihanoukist representatives [see p. 38293]. END START An agreement was reached that month under which Sihanouk became the SNC's neutral chair or president. END START END START Ruling party END START END START END START The ruling and sole party in the SOC is the Kampuchean People's Revolutionary Party (KPRP, Heng Samrin gen. sec.). END START END START Elections END START END START END START Elections to the 117-member National Assembly were held in 1981. END START In mid-1987 supplementary elections took place in six provinces, increasing the number of members in the Assembly to 123. END START The term of the Assembly has been routinely extended, most recently in February 1991 for a period of one year. END START END START 1990/91 OVERVIEW END START END START END START Progress towards agreement on UN peace plan END START END START END START The third Indonesian-sponsored informal meeting of the warring Cambodian factions opened in Jakarta in late February 1990. END START The meeting was concerned with a new Australian peace plan which proposed a large-scale UN involvement in Cambodia and which had met with a favourable response at the UN Security Council during January and February. END START Despite the apparent progress at the UN, the Jakarta meeting (JIM 3) ended early after the Cambodian factions failed to agree on the wording of a final communiqué. END START Another meeting of the factions in Tokyo in June also failed to produce an agreement. END START In July James Baker, the United States Secretary of State, announced a major shift in US foreign policy towards Cambodia and Vietnam. END START After talks with his then Soviet counterpart Eduard Shevardnadze in Paris, Baker told reporters that the USA would no longer support the tenure of the Cambodian seat at the UN by rebel NGC unless the Khmers Rouges were removed from the coalition. END START Baker also announced that the USA would enter into a direct dialogue with Vietnam over the issue of Cambodia and that it might be prepared to provide humanitarian aid to the SOC government. END START The Bush administration's revision of its Indo-China policy was partly designed to forestall a potential congressional rebellion over the issue. END START At the same time, the deterioration in Sino-US relations in the aftermath of the 1989 Tiananmen Square massacre and the improvement in US-Soviet relations during 1990 had added further impetus for a US policy revision. END START END START END START The five permanent members of the UN Security Council formally agreed on the Cambodian peace plan (the so-called" P-5 plan") in August 1990, and it was approved in September by the opposing Cambodian factions at the end of a two-day meeting in Jakarta. END START The parties also agreed on the formation of a 12-member Supreme National Council (SNC), to embody Cambodian" independence, sovereignty and unity" and to occupy the Cambodian UN seat during the transitional period before UN-supervised elections. END START The first meeting of the SNC convened in the disused Cambodian embassy in Bangkok on mid-September, but after two days the talks had ground to a halt, with disagreements over the appointment of a Chair. END START The SNC eventually convened again in Paris in late December, without an agreement having been reached on the Chair issue. END START A final statement released after the talks stated that there had been" concurrence" on most of the fundamental points of the P-5 plan, which, however, remained deadlocked during the early months of 1991. END START Significant progress was nevertheless achieved in May, when the factions agreed to begin implementing a temporary ceasefire. END START Further progress was made in June at a meeting of the SNC in Thailand, where Sihanouk contrived an agreement on a number of issues including (i) a permanent ceasefire; (ii) a cessation of arms supplies; and (iii) his own return to Phnom Penh. END START July was another month of hectic diplomatic activity, with further progress being made towards a full agreement on the P-5 plan during a series of meetings in China. END START END START Civil war END START END START END START As in previous years it was difficult to monitor the fighting in Cambodia during 1990, as independent confirmation of conflicting claims was extremely rare. END START According to Western reports, during the first months of 1990 the Khmers Rouges increased their infiltration of fighters and supplies from their border camps into Cambodia proper. END START The aim of the operation did not appear to be to capture territory, but instead, to construct communication routes and to destroy those established by the SOC government. END START Refugees reported that Khmer Rouge guerrillas made little effort at political indoctrination after capturing a village. END START Instead, the objective appeared to be to make deals with existing village leaders. END START While the Khmers Rouges provided the NGC's main military forces, in the middle of the year there were nevertheless reports of KPNLF and Sihanoukist attacks on several northern district capitals in Siem Reap, Preah Vihear and Kompong Thom provinces. END START END START END START The Phnom Penh regime responded to the increased Khmer Rouge infiltration by withdrawing into the interior of the country where it was much easier to construct solid defensive lines. END START One effect of this strategy was to create a large number of internal refugees — some reports estimating that some 150,000 Cambodians were displaced during 1990, either by being forcibly moved in to the interior by SOC troops, or by fleeing from Khmer Rouge attack. END START END START END START The 1991" fighting season" got under way in January, with heavy skirmishing in the north and north-west. END START According to some reports Khmer Rouge fighters used tanks in some of their operations. END START A ceasefire came into operation in May and all serious fighting stopped. END START END START Internal SOC affairs END START END START END START During 1990 there were signs that a power struggle was under way in Phnom Penh, the first indications of any discord within the leadership since 1981 when Pen Sovan had been removed as party chief and Premier. END START The power struggle in 1990 was reported in the West as a conflict between a hardline faction headed by Chea Sim, and a liberal or reformist faction headed by Hun Sen. END START In late May a number of Hun Sen's reformist allies (including Transport Minister Ung Phan) were arrested, apparently for trying to establish a rival political party. END START Other supporters of Hun Sen's liberalization drive, including Khieu Kanharith, editor of the weekly magazine Kampuchea, were subsequently dismissed from their posts and replaced with supporters of Chea Sim. END START Other signs that a power struggle was under way included an announcement in July that the KPRP congress, due to begin in December, had been postponed. END START END START Economy END START END START END START Cambodia faced a severe cutback in financial assistance from the Soviet Union and eastern Europe in 1991. END START Since 1979 the Soviet Union, in particular, had provided Cambodia with massive amounts of import credits, grants, and technical and military aid. END START However, from January 1991 Cambodia was obliged to start paying commercial rates for financial assistance and imports. END START The Soviet move focused attention on the dire state of the Cambodian economy. END START The continuing fighting in 1990 had meant a further decline in the country's food supply. END START A shortfall of over 300,000 tonnes of rice was projected for the 1990/91 harvest, a result in part of drought and flooding, but also because of the displacement of farmers by guerrilla activity. END START Inflation accelerated during 1990 (partly as a result of increased military spending necessitated by the Vietnamese troop withdrawal in 1989), leading to a fall in the value of the riel by almost 60 per cent of its value during the course of the year. END START END START END START END START END START ASIA — PACIFIC END START END START END START CHINA END START END START END START Area: 9,571,300 sq km. END START Population: 1,139,100,000 (1990 UNFPA est.). END START Capital: Beijing. END START Languages: Mandarin and local dialects; the Tibetans, Uighurs, Mongols and others have their own languages. END START Religion and philosphy: Confucianism, Buddhism and Daoism; Islam and Christianity (minorities). END START Armed forces: 3,030,000 (1990). END START Currency: yuan or renminbi yuan (US$1.00=5.3241 yuan as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB. END START END START POLITICAL SYSTEM END START END START END START The People's Republic of China was established in 1949 following the victory of communist guerrilla forces led by Mao Zedong. END START Under the terms of the 1982 Constitution legislative authority is vested in the National People's Congress (NPC), the members (approximately 3,000) of which are indirectly elected for five years. END START It convenes annually, and when not in session is represented by a 155-member Standing Committee. END START Executive power is exercised by the State Council which is elected by the NPC. END START Effective political control is in the hands of the Chinese Communist Party. END START END START Main government leaders END START END START END START Deng Xiaoping has been the dominant figure within the upper echelons of the ruling Chinese Communist Party since 1980. END START Deng retired from his last official post (Chair of the State Council Military Commission) in 1990, but in his role as" elder statesman" he probably remains the supreme power-broker. END START However, during 1990 Deng's position as leader was at least partly eclipsed by the rise to prominence of the anti-reformist economist Chen Yun. END START END START END START President: Yang Shangkun. END START END START END START Vice-President: Wang Zhen. END START END START END START Premier of the State Council: Li Peng. END START END START END START Other principal ministers: Yao Yilin (Vice-Premier); Tian Jiyun (Vice-Premier); Wu Xueqian (Vice Premier); Zhu Rongji (Vice-Premier); Zou Jiahua (Vice-Premier; Minister in charge of the State Planning Commission); Qin Jiwei (State Councillor; National Defence); Wang Bingqian (State Councillor; Finance); Tao Siju (State Councillor; Public Security); Qian Qichen (State Councillor; Foreign Affairs); Chen Jinhua (Minister in charge of the State Commission for Restructuring the Economy); Jia Chunwang (State Security); Cai Cheng (Justice); Hu Ping (Commerce); Li Lanqing (Foreign Economic Relations and Trade). END START END START State Council changes, January 1990 to July 1991 END START END START END START Liu Zhangyi replaced He Kang as Agriculture Minister in June 1990 [see p. 37532]. END START Chen Jinhua replaced Li Peng as Minister in charge of the State Commission for Restructuring the Economy in September [see p. 37713]. END START In December Tao Siju replaced Wang Fang as State Councillor and Minister of Public Security and Li Lanqing replaced Zheng Tuobin as Minister of Foreign Economic Relations and Trade [see p. 37917]. END START In March 1991 Hou Jie replaced Qian Yongchang as Minister of Communications and Huang Zhendong replaced Lin Hanxiong as Minister of Construction [see p. 38097]. END START In April Zhu Rongji was appointed as a Vice-Premier, Zou Jiahua (Minister in charge of the State Planning Commission) was promoted to Vice-Premier, and Qian Qichen (Foreign Affairs Minister) was promoted to State Councillor [see p. 38145]. END START In June Hu Qili, Rui Xingwen and Yan Minfu (all of whom had been removed from high-ranking posts in the aftermath of the June 1989" counter-revolutionary rebellion") were appointed to vice-ministerial posts [see p. 38290]. END START END START Other appointments END START END START END START A number of provincial governors were moved in August 1990. END START Li Changchun was shifted from Liaoning to Henan, replacing Cheng Weigao who went to Hebei. END START The governor of Hebei, Yue Qifeng, took over Li's former post in Liaoning. END START In May 1991 Zhu Senlin was appointed as acting governor of Guangdong province, replacing Ye Xuanping [see p. 38189]. END START Ye had been appointed Vice-Chair of the Chinese People's Political Consultative Conference (the government's largely ceremonial opinion-gathering forum) in April [see p. 38145]. END START END START Ruling party END START END START END START The Chinese Communist Party (CCP, Jiang Zemin gen. sec). END START The party's most powerful organ is the six-member Standing Committee of the Politburo (Li Peng, Qiao Shi, Yao Yilan, Jiang Zemin, Song Ping, Li Ruihuan). END START There are eight other full Politburo members: (Wu Xueqian, Wan Li, Tian Jiyun, Yang Shangkun, Li Tieying, Li Ximing, Qin Jiwei, and Yang Rudai), and one alternate member (Deng Guangen). END START The Secretariat is composed of four full members (Qiao Shi, Hu Qili, Deng Guangen, and Yang Baibing) and one alternate member (Wen Jiabao). END START The party's powerful Central Military Commission is chaired by Jiang Zemin; Yang Shangkun is first Vice-Chair, Liu Huaqing Vice-Chair, and Yang Baibing Secretary-General. END START END START Other political organizations END START END START END START China Association for Promoting Democracy (Lei Jieqiong ch.); END START China Democratic League (Fei Xiaotong ch.); END START China National Democratic Construction Association (Sun Qimeng ch.); END START China Zhi Gong Dang (Dong Yinchu ch.); END START Chinese Communist Youth League (Song Defu first sec.); END START Chinese Peasants' and Workers' Democratic Party (Lu Jiaxi ch.); END START Jiu San Society (Zhou Peiyuan ch.); END START Kuomintang Revolutionary Committee (Zhu Xuefan ch.); END START Taiwan Democratic Self-Government League (Cai Zimin ch.). END START END START Elections END START END START END START Indirect elections to the National People's Congress were last held between September 1987 and March 1988. END START Yang Shangkun was elected as President by the NPC in 1988. END START END START 1990/91 OVERVIEW END START END START END START The impact of the momentous events of mid-1989, culminating in the Tiananmen Square massacre in June [see pp. 36720-22], was still evident during 1990 and the first half of 1991. END START The government placed great emphasis on ideological and political education and the maintenance of a correct socialist line. END START The party's sixth plenum, held in March 1990, stressed adherence to the mass line, the importance of supervision and the raising of political awareness. END START The military, in particular, were subjected to intense political indoctrination. END START The powerful Yang brothers (President Yang Shangkun and Yang Baibing), who effectively controlled the People's Liberation Army, initiated a major military reshuffle in April and May 1990, affecting six of China's seven military regions. END START However, reports in October claimed that up to 1,300 Army officers had formed a secret group in support of the former CCP general secretary Zhao Ziyang and in opposition to the Yang brothers. END START END START END START Martial law was lifted in Beijing in January 1990, seven months after its imposition. END START The first anniversary of the Tiananmen Square massacre took place in June and passed off without any major incidents. END START The authorities seemed to adopt a dual approach to the anniversary; on the one hand they launched a massive security operation in the city and detained a number of potential trouble makers, but on the other hand they attempted to portray an image of leniency by releasing groups of pro-democracy activists who had been arrested in 1989. END START Chief among those released was Fang Lizhi, who was permitted to leave his shelter in the United States embassy in Beijing to travel to the United Kingdom. END START Nevertheless, trials of dissidents continued in 1990 and 1991. END START The United States based organization Asia Watch reported in May 1991 that there had been a large number of secret trials of dissidents during the previous six months. END START The authorities had claimed during the previous month that the courts had" basically completed" all trials connected with the 1989" counter-revolutionary rebellion". END START END START END START The CCP seventh plenum (of the 13th central committee) eventually took place in December 1990 after several months of delay, allegedly because of divisions between the central and provincial authorities over economic policy. END START The provinces were thought to favour more rapid and radical economic reform than the centre. END START The resulting communiqué, while providing broad proposals for the adoption of the eighth five-year plan and of a 10-year programme, contained little detail, prompting speculation that debate over the pace of reform was still intense. END START END START END START By the time of the second anniversary of the Tiananmen Square massacre in June 1991, the party was working towards rehabilitating some of the high-level casualties of the" turmoil". END START Hu Qili, Rui Xingwen and Yan Mingfu — all former high-ranking party members and supporters of Zhao Ziyang — were appointed to vice-ministerial posts. END START Zhao himself remained under investigation, although he had reportedly been allowed to retain his party membership. END START END START Security END START END START END START The government was seriously alarmed by an outbreak of unrest in April in the western Autonomous Region of Xinjiang Uygur. END START Over 20 people were killed in clashes between Islamic separatists (members of the Islamic Party of East Turkistan) and police in Kizislu Kirghiz Autonomous Prefecture near Kashgar. END START Commentators reported that the authorities were concerned that Moslem and separatist unrest in the Soviet Union might spread into Xinjiang Uygur. END START END START END START The authorities launched a widespread anti-pornography campaign during 1990. END START In mid-1991 a major anti-drug campaign was launched which resulted in the imprisonment and execution of a number of drug offenders. END START The authorities continued to hold large public trials of criminals during 1990 and 1991, which would often end in mass executions; in September 1990 65 people were executed after a trial in Canton. END START END START Economy END START END START END START In March 1990 Finance Minister Wang Bingqian presented details of the 1989 economic performance and the 1990 state budget to the NPC [see p. 37373], and in March of the following year he gave details of the 1990 economic performance and the 1991 budget [see p. 38096]. END START Also in March 1991 the State Statistical Bureau (SSB) gave details of the achievements of the seventh five-year plan (1986-1990) [see p. 38097]. END START The NPC approved China's eighth five-year plan (1991-95) in April. END START For the first time the government had also formulated a 10-year economic programme, covering the period 1991-2000 [see p. 38145]. END START In July 1991 the SSB released economic figures for the first half of 1991 [see p. 38340]. END START END START Foreign relations END START END START END START The government concentrated a great deal of effort during 1990 on restoring China's image abroad, adversely affected by the Tiananmen Square massacre of 1989. END START The government's international rehabilitation was greatly assisted by the Gulf war. END START As one of the five permanent members of the UN Security Council, China's support for the US-led effort to reverse Iraq's annexation of Kuwait was vital. END START A further factor aiding China's rehabilitation was its support for the UN peace plan for Cambodia. END START By the end of 1990 China had resumed its contacts with the West, with Japan and with the major international organizations. END START France resumed the granting of loans to China in February 1990, although Japan waited until November to reactive its development loan programme. END START END START END START The political upheavals in eastern Europe in the late 1980s and early 1990s shocked the Chinese leadership. END START The collapse of communism in Europe left China isolated as the main bastion of communist orthodoxy, and raised the spectre of renewed internal unrest. END START Nevertheless relations with Moscow were not impeded by the bewildering internal developments within the Soviet Union. END START Li Peng visited the Soviet Union in April 1990, the first visit by a Chinese Premier for 26 years, saying that his visit aimed to give" new impetus" to Sino-Soviet relations; seven agreements were signed during the visit. END START In late August the then Soviet Foreign Minister Eduard Shevardnadze visited China for talks with his Chinese counterpart, Qian Qichen. END START In March 1991 an unprecedented agreement was signed under which China would provide the Soviet Union with a commodity loan worth some US$730 million. END START Jiang Zemin visited the Soviet Union in May 1991 for talks with his Soviet counterpart, President Gorbachev (who had visited China in May 1989 — see pp. 36641-42), the first visit by a Chinese party leader to Moscow since Mao Zedong's 1957 trip. END START During the visit an agreement was signed on the demarcation of the eastern section of the Sino-Soviet border. END START Jiang's visit had been preceded by a visit to China by the then Soviet Defence Minister Marshal Dmitry Yazov, which fuelled speculation about a major arms deal between the two countries. END START END START END START Relations with the United States remained strained during 1990 and the first half of 1991. END START US President Bush (who had been head of the then US liaison mission in Beijing in 1974-75), appeared to want to restore relations as they had been before the Tiananmen Square massacre, but often came under congressional pressure to adopt a policy more critical of China. END START The release of dissident Fang Lizhi in June 1990 [see above] was an important symbolic gesture and helped Bush win his battle with congressional critics who had been attempting to block the renewal of China's most-favoured-nation (MFN) trading status. END START Official contact at senior level resumed in November 1990 when Bush met with Qian in Washington. END START END START END START In April 1991 the USA had placed China on its" 301 list" of unfair trade partners [see p. 38340] and had threatened trade retaliation. END START Nevertheless, in July Congress again approved the extension of MFN trading status to China. END START Bush had pressed for an unconditional renewal of MFN status, but after intensive congressional pressure Bush agreed to take" strong action" if China did not lower import tariffs, end illegal textile shipments via third countries, and strengthen the protection of intellectual property rights. END START In addition, further renewal of MFN status in 1992 was to be dependent on China meeting stringent conditions concerned with (i) improving human rights; (ii) ending the export of goods produced in prison labour camps; and (iii) controlling the sale of ballistic missiles to the Middle East. END START END START Tibet END START END START END START Area: 1,228,000 sq km. END START Population: 2,120,000 (1988 official est.). END START Capital: Lhasa. END START Languages: Tibetan and Chinese. END START Religion: No official religion, but almost 100% Tibetan (yellow sect) Buddhism. END START Armed Forces: (Chinese) PLA and Armed Police (ests. vary between 100,000 and 500,000). END START Currency: Chinese yuan (US$1.00=5.3241 yuan as at Sept. 30, 1991). END START END START Historical background and political system END START END START END START Hitherto a semi-independent region of western China ruled by the Dalai Lama, the head of Tibet's Buddhist clergy and its spiritual leader, Tibet was in 1950 occupied by the communist Chinese People's Liberation Army (PLA). END START A series of revolts against Chinese rule over several years culminated in an unsuccessful armed uprising in 1959. END START END START END START Tibet became an autonomous region of China in 1965, but the Tibetans continued to regard the Dalai Lama as their" god-king" and to resent the Chinese presence. END START As an autonomous region, Tibet (Xizang) has its own legislature (Local People's Congress) and is administered by a People's Government. END START Since pro-independence demonstrations in 1987, security has largely been controlled from Beijing. END START END START Leaders END START END START END START Spiritual leader of Tibetan people: The 14th Dalai Lama, His Holiness Tenzin Gyatso, fled to India after the failed uprising of 1959. END START In 1964 China declared him to be a traitor. END START END START END START Chair of People's Government: Gyaincain Norbu replaced Doje Cering in May 1990. END START END START END START Chair of Local People's Congress: Ngapoi Ngawang Jigme. END START END START 1990/91 OVERVIEW END START END START END START The Chinese government in May 1990 rescinded the martial law order in Lhasa (imposed in March 1989 following outbreaks of secessionist unrest), although a heavy armed presence remained in the city [see p. 37454]. END START Western human rights groups claimed that as many as 2,000 people had been executed by the authorities during the last six months of martial law, and many more were being held in detention. END START END START END START In December 1990 the Dalai Lama renounced his previous insistence on complete separation for Tibet and proposed instead that Tibet should enter into a" loose confederation" with China. END START There was no positive official Chinese reaction to the proposal [see also p. 37343]. END START END START END START The Dalai Lama visited the United Kingdom in March 1991, when his appeal to meet with Prime Minister John Major was refused although he met Prince Charles and the Lord Chancellor, Lord Mackay of Clashfern [see p. 38097; for December meeting with Major see p. 38679]. END START However, the following month the Dalai Lama met with United States President Bush in Washington, although on previous visits to the USA he had not been granted such a meeting; China made a strong protest to the USA. END START END START END START " Celebrations" were organized by the Chinese authorities in May 1991 on the 40th anniversary of the" liberation" of Tibet. END START Large numbers of Chinese troops were stationed in Lhasa to prevent any pro-independence demonstrations. END START END START END START Other major foreign policy events of 1990 included the renewal or establishment of diplomatic relations with Saudi Arabia, Indonesia and Singapore and an improvement in ties with Vietnam and South Korea. END START Chinese and South Korean officials agreed in October 1990 to establish trade offices in Beijing and Seoul. END START Li Peng paid a visit to North Korea in May 1991 and made a tour of South-East Asia in August 1990 and of the Middle East in July 1991. END START END START END START END START END START ASIA — PACIFIC END START END START END START HONG KONG END START END START END START Area: 1,071 sq km. END START Population: 5,900,000 (1990 UNFPA est.). END START Capital: Victoria. END START Languages: English and Chinese (official — Cantonese being most widely spoken). END START Religion: Buddhism; also Confucianism, Islam, Hinduism, Daoism and Christianity. END START Armed forces: 8,200 (UK, Gurkha and Hong Kong personnel — 1989). END START Currency: Hong Kong dollar (US$1.00=HK$7.7304 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB. END START END START POLITICAL SYSTEM END START END START END START Hong Kong island was ceded to the United Kingdom under the Treaty of Nanking in 1842; the Kowloon Peninsula was acquired by the convention of Peking in 1860; the New Territories were leased from China in 1898 for a period of 99 years. END START In 1984 the UK conceded that in 1997, upon the expiry of the lease on the New Territories, China would regain sovereignty over the whole of Hong Kong. END START The Sino-British Joint Declaration, initialled in September 1984, contained detailed assurances on the future of Hong Kong, with China guaranteeing the continuation of the territory's capitalist economy and life-style for 50 years after 1997. END START END START END START Hong Kong is administered by a UK-appointed Governor representing the UK sovereign, who presides over an Executive Council (with four ex-officio members and 10 nominated members) and a Legislative Council (Legco) consisting of three of the ex-officio Executive Council members, seven other ex-officio members, 20 appointed members and 26 elected members (12 chosen by an electoral college and 14 by" functional constituencies"). END START END START Main government leaders END START END START END START Governor: Sir David Clive Wilson. END START END START END START Principal secretaries: Sir David Ford (Chief Secretary); Alistair Asprey (Security); Hamish MacLeod (Financial Secretary); Michael Suen (Constitutional Affairs); David Nendick (Monetary Affairs); Barrie Wiggham (Civil Service); Peter Tsao (Home Affairs); K. Y. Yeung (Treasury); John Chan (Trade and Industry). END START END START Political parties END START END START END START There are covert branches of the Chinese Communist Party and the Kuomintang in Hong Kong. END START There are no genuine domestic parties, although a number of narrowly-based political groups exist. END START Some are liberal in orientation (including the United Democrats of Hong Kong Martin Lee l.) and others represent business interests (including the Liberal Democratic Federation). END START END START Elections END START END START END START Urban Council (Urbco) elections were held in May 1991 [see p. 38192]; the first direct elections to the Legco were held on Sept. 15 [see p. 38436]. END START END START 1990/91 OVERVIEW END START END START END START In the aftermath of the mid-1989 turmoil in China the UK government and the Hong Kong authorities proposed a package of measures aimed at restoring confidence in the colony ahead of 1997. END START Much of 1990-91 was spent implementing this package. END START In June 1991 Hong Kong obtained a Bill of Rights, which was denounced by Hong Kong liberals as ineffectual and therefore virtually meaningless. END START The Chinese government also criticized it, claiming that it was unnecessary as rights and freedoms were fully guaranteed by the Hongkong Special Administrative Region Basic Law (Hong Kong's mini-constitution) promulgated in April 1990 by the Chinese legislature, the National People's Congress. END START The Law did not, however, provide for genuine representative government as demanded by many Hong Kong citizens, although it increased the number of directly elected seats to the Legislative Council to one-third of the total by 1997. END START END START END START A key feature of the confidence-boosting package was the passage by the UK Parliament of the British Nationality (Hong Kong) Act in July 1990, which guaranteed British citizenship to 50,000 of the colony's" key" citizens and their families. END START The legislation, which had been opposed by the Chinese authorities, aimed to give security to business people, civil servants and other professionals in Hong Kong and to dissuade them from emigrating before 1997. END START Despite the act, the" brain drain" from Hong Kong continued during 1990; officials estimated that over 60,000 people emigrated in 1990, 20 per cent above 1989 levels. END START At the end of February 1991 the deadline passed for citizens to apply for a" first tranche" of allocations of UK passports under the act. END START The number of applications was only 65,623, far lower than the 300,000 expected [see also p. 38098, whhich includes provisional figures]. END START END START END START In order to boost business confidence the UK and Hong Kong authorities in 1989 approved a plan to construct a new airport and port system. END START After some 20 months of negotiation the Chinese and UK governments in July 1991 issued a memorandum of understanding on the construction of the system [see p. 38340]. END START Disagreement over the airport project had soured relations between China and the UK, with China expressing concern that the project might leave Hong Kong in serious financial difficulties when the colony reverted to Chinese control. END START The memorandum was widely seen as a victory for the Chinese side in the negotiations, with the UK effectively agreeing to Chinese demands that it should be able to set its own terms for the size and financing of the project. END START The agreement was signed in September during a visit to China by UK Prime Minister John Major [see p. 38435]. END START END START END START Official high-level contacts with China, suspended after the Tiananmen Square massacre, were resumed in January 1991 when Sir David Wilson visited Beijing. END START Lu Ping, the director of the Chinese Hong Kong and Macao Affairs Office, visited Hong Kong in March, the most senior Chinese official to visit the colony since 1989 [see p. 38097-98]. END START In April the UK Foreign and Commonwealth Secretary, Douglas Hurd visited both Hong Kong and China [see p. 38147] and in July Francis Maude, Minister of State at the UK Foreign and Commonwealth Office, visited China for talks on Hong Kong. END START [See also above for airport negotiations.] END START END START END START There was little progress on the issue of the Vietnamese" boat people" in Hong Kong. END START In September 1990 Vietnam appeared to accept in principle the concept of" involuntary repatriation", when it agreed to take back" economic migrants" who," while not volunteering to return, are nevertheless not opposed to going back". END START It was evident that the Vietnamese government remained extremely wary of accepting non-volunteers, fearing condemnation by the United States with whom it was currently attempting to normalize relations, but in June 1991 the USA agreed to drop its opposition to negotiations between UK and Vietnam on the question of" involuntary repatriation". END START END START Economy END START END START END START The Hong Kong economy performed poorly in the first half of 1990, but not nearly as badly as in the second half of 1989 when it had suffered from the international reaction to the upheavals in China. END START Domestic exports performed badly during the first half of 1990, but growth in the re-export trade partly compensated. END START Commentators expected an upturn in the second half of 1990, but the economy proved highly susceptible to the new circumstances imposed by the Gulf crisis. END START The rise in the price of oil had little immediate impact, but the collapse of world stock markets, the fall in demand, especially in the USA, for Hong Kong exports and the fear that Japanese banks would cut back on investment all led to growth predictions being revised downwards, in some instance to negative growth. END START END START END START END START END START ASIA — PACIFIC END START END START END START INDIA END START END START END START Area: 3,287,263 sq km. END START Population: 853,100,000 (1990 UNFPA est.). END START Capital: New Delhi. END START Languages: Hindi (official, spoken by 30%) and English; 16 regional languages are recognized by the Indian Constitution. END START Religion: Hinduism (80%), Islam (11%); Christianity, Sikhism, Buddhism and Jainism. END START Armed forces: 1,262,000 (1990). END START Currency: Indian rupee (US$1.00=Rs25.6988 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; NAM; SAARC. END START END START POLITICAL SYSTEM END START END START END START The Union of India (comprising 25 self-governing states and seven union territories) first became independent, as a dominion within the Commonwealth, in 1947; in 1950, according to the Constitution inaugurated in that year, it became" a sovereign socialist secular democratic republic". END START Executive power is vested in the President, elected for a five-year term by an electoral college consisting of the elected members of the upper and lower Houses of Parliament (the Rajya Sabha and the Lok Sabha respectively) and of the Legislative Assemblies of the States. END START The President appoints a Prime Minister and, on the latter's advice, a Council of Ministers, all of whom are responsible to Parliament. END START Most of the 244 members of the Rajya Sabha are indirectly elected by the state assemblies (one-third being replaced every two years) while all but two of the 545-members of the Lok Sabha are directly elected for a five-year term by universal adult suffrage. END START The legislative field is divided between the Union and the states, the former possessing exclusive powers to make laws with respect to matters grouped under 97 headings in the Constitution including foreign affairs, defence, citizenship and trade with other countries. END START END START Main government leaders END START END START END START President: Ramaswamy Venkataraman. END START END START END START Prime Minister: P. V. Narasimha Rao (also Minister of Personnel and Public Grievances; Science and Technology; Ocean Development; Electronics; Atomic Energy; Space; Chemicals and Fertilizers; Civil Supplies and Public Distribution System; Industry (additional charge)). END START END START END START Other principal ministers: Arjun Singh (Human Resources Development); Manmohan Singh (Finance); Madhavsinh Solanki (External Affairs); Sharad Pawar (Defence); Bakram Jakhar (Agriculture); S. B. Chavan (Home Affairs); M. L. Fotedar (Health and Family Welfare); Ghulam Bani Azad (Parliamentary Affairs); C. K. Jaffer Sharief (Railways); Sheila Kaul (Urban Development); Sitarem Kesri (Welfare); K. Vijaya Bhaskara Reddy (Law,, Justice and Company Affairs); Madhav Rao Scindia (Civil Aviation and Tourism); B. Shankaranand (Petroleum and Natural Gas); V. C. Shukla (Water Resources). END START END START Cabinet changes January 1990-July 1991 END START END START END START In January 1990 Prime Minister V. P. Singh made some low-level appointments to the Council of Ministers [see p. 37346], and carried out the first major expansion of his Ministry in late April [see p. 37378]. END START In August Devi Lal, the powerful Deputy Prime Minister and Minister of Agriculture, was dismissed from the Cabinet [see p. 37653]. END START Maneka Gandhi resigned as Minister of State for Environment and Forests in October [see p. 37774]. END START Singh was replaced as Prime Minister on Nov. 10 by Chandra Shekhar whose Council of Ministers was sworn in on Nov. 21 [see pp. 37854-55]. END START Five ministers resigned from the Chandra Shekhar government in February 1991 following their disqualification from membership of the Lok Sabha under the anti-defection laws [see pp. 38005-06]. END START The new Prime Minister, P. V. Narasimha Rao, was sworn in and his Council of Ministers appointed on June 21, 1991 [see p. 38288]. END START The Minister of State for Labour (independent charge), K. Ramamurthy, resigned in late July [see p. 38337]. END START END START Ruling party END START END START END START Congress (I) (P. V. Narasimha Rao, pres., Balram Jakhar, H. K. L. Bhagat, Rajendra Kumari Bajpai, Janardhan Poojari, Ghulam Nabi Azad, Vithal Narwal Gadgil gen. secs. END START END START Other parties END START END START END START Bharatiya Janata Party (BJP, Murli Manohar Joshi pres.); END START Janata Dal (JD, S. R. Bommai pres.); END START Communist Party of India (Marxist) (CPI(M), Jyoti Basu, M. Basavapunnaiah, Harkishan Singh Surjeet ls., E. M. Sankaran Namboodiripad gen. sec.); END START Communist Party of India (CPI, Indrajit Gupta gen. sec.); END START Samajwadi Janata Party (SJP, Devi Lal gen. sec.); END START Shiv Sena; Revolutionary Socialist Party; Forward Bloc; Indian Union Moslem League. END START END START END START The main regionally based parties include: All-India Anna Dravida Munnetra Kazhagam (AIADMK, Jayalalitha Jayaram l.); END START Asom Gana Parishad (AGP, Prafulla Kumar Mahanta l.); END START Dravida Munnetra Kazhagam (DMK, Muthuvel Karunanidhi pres., Nanjil K. Manogaran gen. sec.); END START Haryana Vikas Party; Jammu and Kashmir National Conference (JKNC, Farooq Abdullah l.); END START Jharkhand Mukti Morcha; Manipur People's Party; Nagaland People's Council; Shiromani Akali Dal (Simranjit Singh Mann pres.); END START Sikkim Sangram Parishad; Telegu Desam (TD, Nandmuri Tarak Rama Rao pres., P. Upendra gen. sec.). END START END START Elections END START END START END START Elections to the Lok Sabha were held in May and June 1991 [see pp. 38175-76; 38286-88]. END START END START 1990/91 OVERVIEW END START END START END START V. P. Singh" s minority Janata Dal government collapsed in November 1990, only 11 months after coming to power. END START Singh, who had entered office promising a return to value-based politics, departed with the country in a state of unprecedented social, economic and political turmoil. END START Singh was replaced by his arch-rival, Chandra Shekhar, who had spent the whole of 1990 courting anti-Singh colleagues within the Janata Dal. END START Chandra Shekhar managed to secure" outside" Congress (I) support for his small band of dissident Janata Dal members, but from the outset his government was weak and beholden to its patron. END START END START END START The fall of the Singh government was ultimately brought about by its response to the long-running" temple-mosque" dispute at Ayodhya in Uttar Pradesh [see below]. END START However, pressure on the government had increased markedly since his introduction of a controversial job reservations policy in August [see p. 37653]. END START The policy, which aimed to reserve 27 per cent of public-sector jobs for members of the lower castes, provoked caste-based violence across northern India (although it received a large measure of support in the predominantly low-caste south) and provided an issue around which Singh's opponents within the Janata Dal could coalesce. END START It also provided an opportunity for Devi Lal, whom Singh had dismissed as his deputy in August, to rally opposition to the government [see pp. 37710-11; 37774-75]. END START END START END START In September supporters of the radical Vishwa Hindi Parishad had launched a march to Ayodhya to begin construction of a Hindu temple on the grounds of the disused Moslem mosque there. END START The BJP leader, L. K. Advani, had also embarked on the march and his arrest in late October provoked his party to withdraw its support from Singh's government [see p. 37774]. END START The withdrawal of BJP support intensified divisions within the Janata Dal, which quickly split into two factions. END START In early November Singh's beleaguered government lost a vote of confidence in the Lok Sabha. END START Congress (I) were invited to form a new government, but its leader, Rajiv Gandhi refused, offering instead to support Chandra Shekhar's rebels [see p. 37854]. END START Meanwhile the Ayodhya issue continued to cause serious unrest during late 1990, with close to a thousand people being killed in communal violence across the country. END START The situation calmed in 1991 as Moslems and Hindus entered into discussion. END START END START END START Chandra Shekhar's efforts at keeping his minority government afloat ended in March 1991. END START He resigned, no longer willing to meet the political price demanded by Congress (I) for its parliamentary support [see p. 38101]. END START A general election was called for May and Chandra Shekhar was asked to stay on as caretaker Prime Minister. END START Voting in the elections started in mid-May but was postponed after the assassination of Rajiv Gandhi by Tamil separatists while addressing a rally in Tamil Nadu [see p. 38175]. END START Voting resumed in June and Congress (I) emerged as the victor [see pp. 38286-88]. END START The victory was far from a resounding one, however, and owed much to the" sympathy vote" aroused by Gandhi's untimely death. END START Congress (I) and its allies gained only enough seats to form a minority government; the party performed particularly badly in its traditional northern" Hindi belt" heartlands, where the BJP made a major impact, eventually emerging as the main opposition party and gaining over one-fifth of the total seats. END START Following the victory Congress (I) leaders set about choosing a Prime Minister. END START The contest for Prime Minister within Congress (I) was between Narasimha Rao, who had replaced Gandhi as party president after his widow Sonia Gandhi had refused the post, and the Chief Minister of Maharashtra, Sharad Pawar. END START Rao won the contest and persuaded Pawar to enter his new Cabinet as Defence Minister. END START The new government won a vote of confidence in the Lok Sabha in mid-July [see p. 38337]. END START END START Economy END START END START END START India's economy faltered during 1990, and with the impact of the Gulf war the situation worsened considerably during the first half of 1991. END START When Narasimha Rao's Congress (I) government came to office in mid-1991 it was faced with a US$70,000 million foreign debt burden and a long-standing foreign-exchange crisis which had continued despite receipt of a substantial IMF package in January [see p. 38006]. END START END START END START The Rao government moved swiftly to try and tackle the economic crisis. END START The measures included the devaluation of the rupee and the raising of interest rates, and the introduction of radical and far-reaching reform packages for trade and industry. END START At the same time the new Finance Minister, Manmohan Singh, introduced his first budget which raised corporate taxes, and cut fertilizer subsidies and (in real terms) defence spending. END START The budget should have been introduced by Chandra Shekhar's government in February, but had been postponed due to Congress (I) pressure [for details of Rao's reform measures and the budget see p. 38337; for 1990 budget presented by the Singh government in March 1990 see pp. 37315-16]. END START END START Foreign relations END START END START END START External relations were dominated by increasing tension with Pakistan over Kashmir [see below; p. 37965; see also p. 38631]. END START Relations with China improved greatly during 1990-91; in February 1991 the Indian External Affairs Minister V. C. Shukla visited Beijing. END START The two sides agreed to resume border trade which had been cut off since the 1962 Sino-Indian war [see p. 38006], and joint working groups on the border issue met in New Delhi in August 1990 and in Beijing in May 1991. END START END START END START Toshiki Kaifu, then Prime Minister of Japan, visited India in late April 1990. END START Kaifu reportedly advised Singh on the need to liberalize the Indian economy. END START END START END START In November India 1990 was elected as a non-permanent member of the UN Security Council for 1991. END START END START NORTHERN STATES END START END START END START Haryana END START END START END START Capital: Chandigarh END START END START END START Ruling party: Congress (I) END START END START END START Chief Minister Bhajan Lal END START END START END START Governor Dhanik Lal Mandal END START END START Himachal Pradesh END START END START END START Capital: Simla END START END START END START Ruling party: Bharatiya Janata Party END START END START END START Chief Minister: Shanta Kumar END START END START END START Governor: Virendra Verma END START END START Jammu and Kashmir END START END START END START Capital: Srinagar (summer), Jammu (winter) END START END START END START Ruling party: Under President's rule END START END START END START Chief Minister: Vacant END START END START END START Governor Girish Chandra Saksena END START END START Punjab END START END START END START Capital: Chandigarh END START END START END START Ruling party: Under President's rule END START END START END START Chief Minister: Vacant END START END START END START Governor: Gen. (retd) O. P. Malhotra END START END START Uttar Pradesh END START END START END START Capital: Lucknow END START END START END START Ruling party: Bharatiya Janata Party END START END START END START Chief Minister: Kalyan Singh END START END START END START Governor: B. Satya Narain Reddy END START END START Haryana END START END START END START A by-election in Haryana's Meham constituency in February 1990 provoked a crisis which seriously undermined V. P. Singh's Union government and the Janata Dal [see p. 37315]. END START The election, a violent and corrupt affair, was contested for the Janata Dal by Om Prakash Chauthala, the state's controversial Chief Minister. END START Chauthala needed to win a seat in the Haryana state assembly to secure his post as Chief Minister, a post which he had inherited in 1989 from his father, the powerful Deputy Prime Minister, Devi Lal. END START In the event the poll was countermanded, but the affair reflected badly on the government and the Janata Dal. END START Chauthala eventually resigned as Chief Minister in May, but his replacement, Banarasi Das Gupta, was a close associate so that the Lal clan remained in control of the state [see p. 37452]. END START In July the crisis erupted again when Chauthala was re-appointed as Chief Minister [see p. 37610]. END START Believing that a" deal" had been struck between Singh and Lal, a number of Union ministers temporarily resigned, prompting Singh himself to offer his resignation. END START In the event Chauthala resigned as Chief Minister in mid-July, to be replaced by Hukam Singh, and Devi Lal resigned as Deputy Prime Minister in August [see p. 37653]. END START However, in March 1991 Chauthala was once again appointed to the post of Chief Minister [see p. 38101]. END START He was unable to command a stable majority and the state was placed under President's rule in early April [see p. 38151]. END START Congress (I) won a majority of seats in state assembly elections held in Haryana in May, and in June Bhajan Lal was sworn in as the new Congress (I) Chief Minister [see p. 38287]. END START END START Himachal Pradesh END START END START END START The BJP routed the incumbent Congress (I) government in state assembly elections held in February 1990, and the next month the BJP's Shanta Kumar replaced Virabhadra Singh as Chief Minister [see p. 37245]. END START Virendra Verma replaced B. Rachaiah as the new state governor in December 1990 [see p. 37915]. END START END START Jammu and Kashmir END START END START END START Throughout 1990 militant Moslem groups in Jammu and Kashmir sustained a campaign of violence and civil unrest in support of their demands for an independent Kashmir or unification with Pakistan. END START India consistently claimed that the violence was organized by militants trained in, and funded by, Pakistan. END START Such claims were denied by the Pakistan government, but, inevitably, the conflict had a severely adverse effect on relations between the two countries. END START Border clashes, some serious, were frequent during 1990 and early 1991. END START Genuine international concern over the possibility of all-out war breaking out was expressed on a number of occasions. END START In July and August 1990 Indian and Pakistani officials held talks aimed specifically at reducing the chance of war. END START Although after the talks there were still reports of heavy skirmishing along the Kashmir border, at a third round of talks in Islamabad in late 1990 an agreement not to attack each other's nuclear installations was finalized. END START END START END START The militants had intensified their campaign in late 1989, prompting the government to dispatch large numbers of troops to the state and to impose widespread curfews and press restrictions. END START Early in 1990 the state's Chief Minister, Farooq Abdullah, resigned and Governor's rule was imposed [see pp. 37183-84]. END START The Governor, Jagmohan, proceeded to dissolve the State Assembly and in April all the main militant groups were banned, including the Jammu and Kashmir Liberation Front, the Jamaat-i-Islami and the Hizbul Mujahidin [see p. 37377]. END START The assassination in May of Maulvi Mohammed Farooq, the main Moslem religious figure in Kashmir, led to a serious deterioration in the security situation. END START Indian security forces clashed with mourners at Farooq's funeral, killing almost 50 people. END START Following the incident Jagmohan was replaced as state Governor by Girish Chandra Saxena, Prime Minister V. P. Singh's security adviser [see p. 37451-52]. END START In June rebels claimed to have formed a" provisional government" and, for the first time, they used rockets during one of their attacks [see p. 37530]. END START In July Governor's rule ended and President's rule was imposed. END START At the same time Saxena declared the entire Kashmir Valley a" disturbed area", thereby giving the security forces increased powers [see pp. 37610-11]. END START Nevertheless, the violence continued into 1991 [see pp. 37653; 38192; 38337-38] and the state was excluded from the May-June elections by presidential order [see p. 38101; 38151]. END START President's rule was extended for six more months from early March 1991 [see p. 38101] and again in September [see p. 38392]. END START END START Punjab END START END START END START In the absence of any concrete government initiatives, violence in the Punjab spiralled during 1990. END START India Today reported that 3,560 people, the majority of them civilians, were killed in the state between Jan. 1 and Dec. 11. END START President's rule was extended in April and October 1990 and in March 1991 [see pp. 37377; 37775; 38101]. END START Virendra Verma replaced Nirmal Mukarji as Governor in June and in December Verma was replaced by Gen. O. P. Malhotra [see pp. 37530-31; 37915]. END START END START END START Chandra Shekhar's short-lived government made an attempt to open negotiations with militant Sikhs on the future of the state. END START In December 1990 Chandra Shekhar met for talks with Simranjit Singh Mann, leader of one of the three main Akali Dal factions [see p. 37915]. END START (In January 1991 senior Akali leaders representing the Mann, Badal and Longowal groups merged as a single Akali Dal, to be known as Shiromani Akali Dal, with Mann as its leader — see p. 37964.) END START Two months before the meeting Mann had resigned his seat in the Lok Sabha in protest at, among other things, the government's refusal to allow a state legislature to be elected. END START Little emerged from the talks, and in February five Sikh militant groups issued a statement denouncing Mann and rejecting dialogue with the government [see p. 38006]. END START Nevertheless, in April 1991 leading separatists met with Chandra Shekhar in Delhi, after which the Prime Minister announced that a large number of Sikh youths imprisoned for minor offences would be released [see p. 38151]. END START Later that month it was announced that national and state-level elections would be held in Punjab in mid-June. END START However, less than 30 hours before polling was due to start, the Election Commissioner announced a postponement. END START He cited an upsurge in violence during the campaigning period, including attacks on two trains in which 78 people had died [see pp. 38151; 38287]. END START END START Uttar Pradesh END START END START END START The BJP defeated the JD government headed by Mulayen Singh Yadav in State Assembly elections held in May and June 1991. END START Kalyan Singh was sworn in as the new Chief Minister [see p. 38287]. END START END START Eastern States END START END START END START Arunachal Pradesh END START END START END START Capital: Itanagar END START END START END START Ruling party: Congress (I) END START END START END START Chief Minister: Gagong Apang END START END START END START Governor: Surendra Nath Dwiwedi END START END START Assam END START END START END START Capital: Dispur END START END START END START Ruling party: Congress (I) END START END START END START Chief Minister: Hiteshwar Saikia END START END START END START Governor Loknath Mishra END START END START Bihar END START END START END START Capital: Patna END START END START END START Ruling party: Janata Dal END START END START END START Chief Minister: Lallu Prasad Yadav END START END START END START Governor: Mohammed Shafi Qureshi END START END START Manipur END START END START END START Capital: Imphal END START END START END START Ruling party: United Legislature Front (led by Manipur People's Party (MPP)) END START END START END START Chief Minister: Raj Kumar Ranbir Singh END START END START END START Governor: Chintamani Panigrahi END START END START Meghalaya END START END START END START Capital:Shillong END START END START END START Ruling party:Meghalaya United Parliamentary Party END START END START END START Chief Minister: B. B. Lyngdoh END START END START END START Governor: Madhukar Dighe END START END START Mizoram END START END START END START Capital: Aizawl END START END START END START Ruling party: Congress (I) (in coalition) END START END START END START Chief Minister: Lalthanhawla END START END START END START Governor: Swaraj Kaushal END START END START Nagaland END START END START END START Capital: Kohima END START END START END START Ruling party: Joint Legislature Party (Nagaland People's Council-Congress (I) coalition) END START END START END START Chief Minister: Vamuzo END START END START END START Governor: M. M. Thomas END START END START Orissa END START END START END START Capital: Bhubaneswar END START END START END START Ruling party: Janata Dal END START END START END START Chief Minister: Biju Patnaik END START END START END START Governor: Yagya Dutt Sharma END START END START Sikkim END START END START END START Capital: Gangtok END START END START END START Ruling party: Sikkim Samgram Parishad END START END START END START Chief Minister: Nar Bahadur Bhandari END START END START END START Governor: Adml. (retd) Radhakrishnan Hariram Tahiliani END START END START Tripura END START END START END START Capital: Agartala END START END START END START Ruling party: Congress (I) (in coalition) END START END START END START Chief Minister: Sudhir Ranjan Majumber END START END START END START Governor: Raghunath Reddy END START END START West Bengal END START END START END START Capital: Calcutta END START END START END START Ruling party: Communist Party of India (Marxist) END START END START END START Chief Minister: Jyoti Basu END START END START END START Governor: Nurul Hasan END START END START Arunachal Pradesh END START END START END START Congress (I) retained control of the State Assembly in Arunachal Pradesh in elections held in February 1990, and Agong Apang was sworn in for a fourth term as Chief Minister in March [see pp. 37245]. END START Surendra Nath Dwiwedi replaced Loknath Mishra as governor of Arunachal Pradesh in March 1991 [see p. 38102]. END START END START Assam END START END START END START The separatist United Liberation Front of Assam (ULFA) carried out a series of assassinations, kidnappings and bomb attacks during 1990, and in late November the deteriorating security situation provoked the government into imposing President's rule [see pp. 37854-55]. END START Shortly afterwards the security forces launched" Operation Bajrang" aimed at stifling the unrest. END START Nevertheless, violence, often aimed at local Congress (I) politicians, continued and in January 1991 ULFA was proscribed [see p. 37964]. END START In February ULFA set out its terms for entering into negotiations with the central government, including a withdrawal of President's rule and a ceasefire [see p. 38006]. END START The next month the group declared a unilateral ceasefire and President's rule was extended for six months [see pp. 38101-02]. END START In April Chandra Shekhar suspended Operation Bajrang after ULFA provided assurances that it would not disrupt forthcoming national and state-level elections [see p. 38151]. END START Nevertheless, in May the government invoked the National Security Act as a" precautionary measure" in view of the elections [see p. 38192]. END START Congress (I) won the State Assembly elections held in early June and Hitashwar Saikia was sworn in as the new Chief Minister [see p. 38287]. END START D. D. Thakur had resigned as governor in March 1991 and had been replaced by Loknath Mishra. END START END START Bihar END START END START END START A Janata Dal-led coalition replaced Congress (I) as the Bihar state government following assembly elections in February 1990. END START Lallu Prasad Yadav was sworn in as the new Chief Minister in early March [see pp. 37245; 37315]. END START In March 1991 Mohammed Shafi Qureshi was appointed as the new state Governor, replacing B. Satya Narain Reddy, the Governor of Uttar Pradesh, who had been given temporary responsibility for Bihar in February following the dismissal of Governor Mohammad Yunus Saleem [see pp. 38006; 38102]. END START END START Manipur END START END START END START An anti-Congress (I) coalition (the United Legislature Party) took office in Manipur after state elections held in February 1990; Raj Kumar Ranbir Singh of the Manipur People's Party replaced R. K. Jaichandra Singh of Congress (I) as Chief Minister [see pp. 37245-46; for February 1991 split in Manipur People's Party see p. 38006]. END START END START Mizoram END START END START END START Laldenga, president of the Mizo National Front and former Chief Minister (in 1986-88), died in London in July 1990, aged 62. END START END START Nagaland END START END START END START Defections caused Congress (I) to lose its majority in the state assembly in May 1990, and a new United Legislature Front (ULF) government, headed by K. L. Chisi, leader of the Nagaland People's Council, took office. END START The ULF government collapsed in June, however, and a Congress (I) -NPC coalition (Joint Legislature Party), headed by Vamuzo of the NPC, gained control [see pp. 37452; 37531]. END START END START Orissa END START END START END START Janata Dal comprehensively defeated Congress (I) in State Assembly elections held in February 1990. END START Biju Patnaik replaced Hemendanda Biswal as Chief Minister [see p. 37246]. END START END START West Bengal END START END START END START The CPI(M) was returned to power in State Assembly elections held in May 1991; Jyoti Basu was sworn in for a fourth term as Chief Minister in June [see p. 38287]. END START END START WESTERN STATES END START END START END START Goa END START END START END START In April 1990 Luis Proto Barbosa replaced Churchill Alamao as Chief Minister of the Progressive Democratic Front (PDF) government. END START President's rule, which had been imposed in December after the PDF's main component, the Maharashtrawadi Gomantak Party (MGP), withdrew from the PDF, was lifted in late January 1991 and the leader of the breakaway MGP group, Ravi S. Naik, was sworn in as Chief Minister [see p. 37915; 37964]. END START END START END START In March 1991 B. P. Singh was appointed as governor of Goa [see p. 38102]. END START END START Goa END START END START END START Capital: Panaji END START END START END START Ruling party: Maharashtrawadi Gomantak Party (in coalition) END START END START END START Chief Minister: Ravi S. Naik END START END START END START Governor: B. P. Singh END START END START Gujarat END START END START END START Capital: Gandhinagar END START END START END START Ruling party: Janata Dal END START END START END START Chief Minister: Chimanbhai Patel END START END START END START Governor: Sarup Singh END START END START Madhya Pradesh END START END START END START Capital: Bhopal END START END START END START Ruling party: Bharatiya Janata Party END START END START END START Chief Minister: Sunderlal Patwa END START END START END START Governor: Kunwar Mahmood Ali END START END START Maharashtra END START END START END START Capital: Bombay END START END START END START Ruling party: Congress (I) END START END START END START Chief Minister: Sudhakarrao Naik END START END START END START Governor: C. Subramaniam END START END START Rajasthan END START END START END START Capital: Jaipur END START END START END START Ruling party: Bharatiya Janata Party END START END START END START Chief Minister: Bhairon Singh Shekhawat END START END START END START Governor: Debi Prasad Chattopadhyay END START END START Gujarat END START END START END START Janata Dal took control of Gujarat from Congress (I) in State Assembly elections in February 1990; in March Chimanbhai Patel replaced Madhavsinh Solanki of Congress (I) as Chief Minister [see p. 37245]. END START There was an outbreak of serious communal violence in Ahmedabad in April 1990 in which some 60 people died [see p. 37378]. END START Sarup Singh replaced Mahipal Shastri as governor of Gujarat in December [see p. 37915]. END START END START Madhya Pradesh END START END START END START The BJP defeated Congress (I) in State Assembly elections held in February 1990; Sunderlal Patwa was sworn in as Chief Minister, replacing Shyama Charan Shukla [see p. 37245]. END START END START Maharashtra END START END START END START Congress (I) retained power in Maharashtra in the State Assembly elections in February 1990 and Sharad Pawar was sworn in for a further term as Chief Minister [see p. 37245]. END START On resigning in June 1991 to take up the post of union Defence Minister [see p. 38288] he was replaced by Sudhakarrai Naik. END START END START Rajasthan END START END START END START The BJP replaced Congress (I) as the ruling party in Rajashtan after the State Assembly elections held in February 1990. END START Bhairon Singh Shekhawat replaced Harideo Joshi as Chief Minister [see p. 37246]. END START The Shekhawat ministry won a vote of confidence in the assembly in November 1990, necessitated by the withdrawal of support by the Janata Dal after the BJP had ended its support for the V. P. Singh government [see p. 37854]. END START END START SOUTHERN STATES END START END START END START Andhra Pradesh END START END START END START Capital:Hyderabad END START END START END START Ruling party: Congress (I) END START END START END START Chief Minister: N. Janardhan Reddy END START END START END START Governor: Krishna Kant END START END START Karnataka END START END START END START Capital: Bangalore END START END START END START Ruling party: Congress (I) END START END START END START Chief Minister: S. Bangarappa END START END START END START Governor: Khurshid Alam Khan END START END START Kerala END START END START END START Capital: Trivandrum END START END START END START Ruling party: Congress (I) END START END START END START Chief Minister: K. Karunakaran END START END START END START Governor: Basavaiah Rachaiah END START END START Tamil Nadu END START END START END START Capital: Madras END START END START END START Ruling party: All-India Anna Dravida Munnetra END START END START END START Chief Minister: Jayalalitha END START END START END START Governor: Bhishma Narain Singh END START END START Andhra Pradesh END START END START END START A cyclone hit Andhra Pradesh in May 1990, killing over 800 people [see p. 37452]. END START END START END START Hindu agitation around the disputed shrine at Ayodhya in December fuelled serious communal unrest in Andhra Pradesh, and especially in Hyderabad, where up to 200 people died. END START Marri Cheni Reddy resigned as Chief Minister in mid-December and was replaced by N. Janardhan Reddy [see p. 37915]. END START END START Karnataka END START END START END START A dispute within the ruling Congress (I) Party in Karnataka resulted in the imposition of a brief spell of President's rule in October 1990. END START The crisis resulted in the appointment of S. Bangarappa as the new Chief Minister in place of Veerendra Patil [see p. 37775]. END START END START END START The Governor of Goa, Khurshid Alam Khan, took on additional responsibility for Karnataka in January 1991 following the resignation of Bhanu Pratap Singh [see p. 37964]. END START END START Kerala END START END START END START Basavaiah Rachaiah replaced Sarup Singh as Governor of Kerala in December 1990 [see p. 37915]. END START The Congress (I) -led United Democratic Front ousted the CPI (M) -led Left Democratic Front from power in State Assembly elections held in June 1991. END START K. Karunakaran replaced E. K. Nayanar as Chief Minister [see p. 38287]. END START END START Tamil Nadu END START END START END START Surjit Singh Barnala was appointed governor of Tamil Nadu in May 1990 [see p. 37452]. END START The central government imposed President's rule in Tamil Nadu in January 1991 giving as its reason an increase in activity by Tamil militants in the state [see p. 37964]. END START Barnala refused formally to recommend the imposition of central rule. END START In February Barnala, who refused a transfer to Bihar, resigned as governor and was replaced by Bhishma Narain Singh [see p. 38006]. END START END START END START The Congress (I) allied A-IADMK won a clear majority in state assembly elections held in June 1991; Jayalalitha was sworn in as the new Chief Minister [see p. 38287]. END START END START Union Territories END START END START END START Andaman and Nicobar Islands END START END START END START Headquarters: Port Blair END START END START END START Lt.-Governor: Surjit Singh Barnala END START END START Chandigarh END START END START END START Headquarters: Chandigarh is the joint capital of Punjab and Haryana states END START END START END START Administrator: Gen. (retd) O. P. Malhotra END START END START Dadra and Nagar Haveli END START END START END START Headquarters: Silvassa END START END START END START Administrator: Khurshid Alam Khan END START END START Daman and Diu END START END START END START Headquarters: Daman END START END START END START Administrator: Khurshid Alam Khan END START END START Delhi END START END START END START Headquarters: Delhi END START END START END START Lt.-Governor: Markandey Singh END START END START Lakshadweep END START END START END START Headquarters: Kavaratti END START END START END START Administrator: J. Sagar END START END START Pondicherry END START END START END START Capital: Pondicherry END START END START END START Lt.-Governor: Har Sarup Singh END START END START Andaman and Nicobar Islands END START END START END START In December 1990 Surjit Singh Barnala, the then Governor of Tamil Nadu, was appointed to the additional post of Administrator of Andaman and Nicobar Islands in place of Lt.-Gen. (retd) R. S. Dyal. END START END START Delhi END START END START END START Markandey Singh replaced Arjan Singh as Lt.-Governor of Delhi in December 1990 [see p. 37915]. END START END START Lakshadweep END START END START END START Elections in late March 1990 for 10 island councils were the first since the formation of the union territory of Lakshadweep in 1956. END START Congress (I) won a clear majority of the 79 seats contested on the territory's 10 inhabited islands. END START Following the elections a 25-member Pradesh Council was created comprising 21 members elected by the island councils, the Lok Sabha representative (P. M. Sayeed, the Administrator (J. Sagar), the Collector and a female representative. END START The Council was a non-legislative body which would discuss and make recommendations to the Administrator on matters of administration, policy and development concerning the islands. END START END START Pondicherry END START END START END START In January 1990 Chandravati was appointed as Lieutenant Governor of Pondicherry. END START The following month Congress (I) were defeated in union territory-level elections and a DMK-led coalition took office under the chief ministership of D. Ramachandran [see p. 37246]. END START Chandravati was replaced as Lieutenant Governor in December by Har Sarup Singh [see p. 37915]. END START END START END START The DMK-JD coalition government in Pondicherry resigned in December and President's rule was imposed in January 1991. END START Elections to the territory's legislative assembly were held in June and resulted in a victory for Congress (I); a six-member Congress (I) ministry led by V. Vaithilingam was sworn in in early July [see pp. 38287; 38338]. END START END START END START END START END START ASIA — PACIFIC END START END START END START INDONESIA END START END START END START Area: 1,904,569 sq km. END START Population: 184,300,000 (1990 UNFPA est.). END START Capital: Jakarta (on island of Java). END START Languages: Bahasa Indonesia (official); about 25 local languages, including Javanese. END START Religion: Islam (78%), Christianity (11%), Hinduism and Buddhism. END START Armed forces: 283,000 (1990). END START Currency: rupiah (US$1.00=Rp1966.94 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; APEC; ASEAN; ICO; NAM; OPEC. END START END START POLITICAL SYSTEM END START END START END START The Republic of Indonesia (comprising some 13,700 islands known until 1949 as the Netherlands East Indies) is a unitary state in which executive power resides in a President who governs with the assistance of an appointed Cabinet. END START The President is elected for a five-year term by the 1,000-member People's Consultative Assembly (Majelis Permusyawaratan Rakyat — MPR). END START Of the MPR's members 500 are from the House of Representatives (Dewan Perwakilan Rakyat — DPR), the country's legislative organ, and the remaining 500 are government appointees (often from the armed forces), delegates of regional assemblies and representatives of parties and groups, the latter appointed in proportion to their elective seats in the DPR. END START END START Main government leaders END START END START END START President: Gen. (retd) Suharto has held the post since 1968. END START END START END START Vice-President Gen. (retd) Sudharmono. END START END START END START Principal ministers: Adml. (retd) Sudomo (Political Affairs and Security); Radius Prawiro (Economy, Finance, Industry and Development Supervision); Gen. (retd) Supardjo Rustam (Public Welfare); Gen. Rudini (Internal Affairs); Ali Alatas (Foreign Affairs); Gen. L. B. Murdani (Defence and Security); J. B. Sumarlin (Finance); Arifin Siregar (Trade); Wardoyo (Agriculture); Lt.-Gen. END START Sugiarto (Transmigration). END START END START END START Leading members of the armed forces: Gen. Try Sutrisno (C.-in-C. of the Indonesian Armed Forces; Head of Co-ordinating Agency for the Reinforcement of National Stability — Bakorstranas); Lt.-Gen. END START Edi Sudrajat (Army Chief of Staff). END START END START Cabinet changes to mid-1991 END START END START END START No Cabinet changes. END START END START Ruling party END START END START END START Sekretariat Bersama Golongan Karya (Sekber Golkar — Joint Secretariat of Functional Groups, Gen. (retd) Suharto pres., Gen. (retd) Wahono gen. ch., Rachmat Witoelar (sec. -gen.). END START END START Other parties END START END START END START Partai Demokrasi Indonesia (PDI, Soerjadi gen. ch., Nico Daryanto s.g.); END START Partai Persatuan Pembangunan (PPP — United Development Party, Ismael Hassan Metareum pres., Mardinsyah sec. -gen.). END START END START END START The following groups are in conflict with the government: Frente Revolucionario de Este Timor Independente (Fretilin, Jose Ramos Horta sec. for international relations, Jose Xanana Gusmao military commdr.); END START Organisasi Papua Merdeka (OPM, Elky Bemei l.); END START Free Aceh Movement (described by the government as the Security Disturbance Movement, GPK). END START The Indonesian Communist Party (PKI) is banned and the government frequently executes members of the party imprisoned since the 1960s. END START END START Elections END START END START END START Elections were held to the DPR in April 1987 [see p. 35326]. END START END START 1990/91 OVERVIEW END START END START END START Political activity during 1990 and early 1991 was largely dominated by the presidential elections due to be held in 1993. END START There was intense speculation as to whether President Suharto would run for a sixth consecutive term, and as to who, if he decided not to run, would succeed him. END START Suharto's pronouncements, although clouded in typical ambiguity, certainly gave the impression that he would stand for a sixth term. END START In his key-note National Day address to parliament in August Suharto appeared to endorse moves towards greater openness and democracy. END START In December he supported the formation of a new Moslem organization (the Association of Moslem Intellectuals), which united a broad spectrum of Moslem interests and was widely expected to be the basis of support for his candidacy in 1993 [see p. 37919]. END START In April 1991 a Democracy Forum was launched by leading intellectuals and religious figures, including Abdurraham Wahid, leader of the Nahdatul Ulama, the country's largest Moslem group [see p. 38149]. END START END START END START Suharto's advancement of a pro-democratic line was in part a response to pressure from sections of the armed forces (ABRI). END START Many of the younger ABRI leaders, eager to retain the military's dual military/political function, had started to project a more democratic image. END START In an effort to appease sections of ABRI opposing his sixth term, Suharto released Gen. Hartono Resko Dharsono, the country's most celebrated dissident, from prison in September 1990 [see p. 37715]. END START Dharsono, an associate of the so-called" Petition of 50" dissident movement, had been in prison since 1984 [see pp. 33286-87]. END START In August (immediately prior to Suharto's National Day speech) a group of prominent Indonesians, including many of the original" Petition of 50", had issued a public demand to Suharto to stand down in 1993 and to permit greater democracy. END START END START END START The new openness meant that there was a marked reduction in the arrests of alleged subversives and in the closures of newspapers. END START However, the new atmosphere also fostered increased debate on a number of issues which were potentially difficult for the government, including the social repercussions of increased economic growth. END START Criticism was levelled at the newly expanded private sector, which, it was claimed, was growing at the expense of the poorer sections of society. END START There was, moreover, a racial element to the criticisms, since many of the successful private businesses were controlled by ethnic Chinese. END START There was also a political element in that the criticisms contained an implicit condemnation of the extraordinarily large and powerful business empire built up by Suharto's family and close associates. END START END START Security END START END START END START Unrest continued in East Timor during 1990, with the security forces maintaining pressure on Fretilin and demonstrators. END START In November Fretilin offered the government unconditional peace talks, but the move was rejected outright by the government. END START The human rights organization Amnesty International issued reports on East Timor in February and August 1991 detailing cases of detention and torture [see pp. 38011; 38397]. END START END START END START The security forces continued operations against members of the OPM in Irian Jaya. END START Indonesian cross-border raids into Papua New Guinea in mid-1990 aimed at capturing OPM members caused friction between the two countries. END START Prior to the raids relations had been warm, and in April the two countries had signed a revision of the 1979 border agreement. END START The friction caused by the raids did not prevent Papua New Guinea deporting the captured OPM leader Mecky Salosa to the Irian capital Jayapura in July. END START END START END START Unrest in Aceh province on the northern tip of Sumatra erupted in April when separatist insurgents (members of the Free Aceh Movement) carried out a series of attacks on police posts, which prompted a major security operation against the rebels. END START By the end of 1990 there were as many as 12,000 troops active in the province. END START The military crackdown caused a number of Acehnese to flee to Malaysia. END START END START END START A member of the banned Indonesian Islamic Revolutionary Council was reportedly executed in February 1991 [see p. 38011]. END START In July two members of the PKI imprisoned in the 1960s were reportedly released from prison. END START END START Economy END START END START END START In 1990 the economy continued to expand as deregulatory reforms took effect. END START In May 1990 and June 1991 the government introduced new packages of tariff reforms, the latest stages of its five-year campaign to lower trade barriers. END START Inflation was a major concern during 1990, running at just under 10 per cent. END START In an effort to reduce it, the government increased interest rates, which restricted growth to an estimated 6.5 per cent in 1990, almost a full percentage point down from the 1989 figure. END START Rising oil prices, a result of the Gulf conflict, assured short-term gains in 1991, but alarmed the government which had as its primary economic goal the increase of non-oil exports. END START END START END START The 1991/92 budget was presented to the DPR by President Suharto in January 1991 [see p. 37962]. END START In June 1991 the Intergovernment Group for Indonesia (IGGI) agreed on a record US$4,750 million aid package [see p. 38294]. END START END START Foreign relations END START END START END START The major foreign policy event during 1990 was the restoration in August of diplomatic relations with China, during a visit to Indonesia by the Chinese Premier Li Peng. END START Relations had been suspended by Indonesia in 1967 [see pp. 22278-79; 22482]. END START In November President Suharto visited China and in June 1991 the Chinese President Yang Shangkun visited Indonesia [see pp. 22482; 37612; 37861; 38294]. END START END START END START Indonesia continued to play a major diplomatic role in the Cambodian peace process during 1990 and 1991. END START END START END START END START END START ASIA — PACIFIC END START END START END START JAPAN END START END START END START Area: 377,815 sq km. END START Population: 123,611,541 (1990). END START Capital: Tokyo. END START Language: Japanese. END START Religion. END START Shintoism and Buddhism; Christianity (minority). END START Self Defence Forces: 249,000 (1990). END START Currency: yen (US$1.00=132.772 yen as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; APEC. END START END START POLITICAL SYSTEM END START END START END START Under the Constitution adopted in 1947, Japan is a constitutional monarchy. END START Legislative authority is vested in a popularly elected bicameral Diet which is composed of a 512-member House of Representatives (elected for up to four years) and a House of Councillors (whose 252 members are elected for six years, with half being due for re-election every three years). END START END START Main government leaders END START END START END START Emperor: Tsegu no Miya Akihito. END START END START END START Prime Minister: Kiichi Miyazawa. END START END START END START Other principal ministers: Takashi Tawara (Justice); Michio Watanabe (Deputy Premier and Foreign); Tsutomu Hata (Finance — as given on p. 38558, where Kunio Hatoyama, the new Education Minister, is also erroneously listed as Finance Minister). END START END START Cabinet changes in 1990 END START END START END START There were Cabinet changes in February 1990 [see p. 37238]; September [see p. 37715]; and December [see p. 37917]. END START END START Ruling party END START END START END START The Liberal Democratic Party (LDP; Kiichi Miyazawa l., Keizo Obuchi sec. -gen.) has been in office since its formation in 1955. END START END START Other main political parties END START END START END START The Democratic Socialist Party (DSP, Keigo Oouchi ch; Takahi Yonezawa sec. -gen.) founded in 1960 by right-wing members of the Japan Socialist Party; Japan Communist Party (JCP, Kenji Miyamoto ch. of Central Committee); Komeito (Clean Government Party, Koshiro Ishida ch. END START Yuichi Ichikawa sec. -gen.) a Buddhist-based party founded in 1960; Social Democratic Party of Japan (SDPJ, Makouti Tanabe ch., replaced Takako Doi in July 1991 — see pp. 38292; 38343). END START Formerly called Japan Socialist Party, the SDPJ constitutes the main opposition party. END START END START Elections END START END START END START The LDP was returned to power at the general election of Feb. 18, 1990 [see pp. 37237-38]. END START Miyazawa was elected as LDP leader and Prime Minister in October 1991 [see p. 38558], succeeding Toshiki Kaifu who had held both posts since August 1989 [see pp. 36849-50]. END START END START 1990/91 OVERVIEW END START END START END START 1990 began with a general election for the House of Representatives in which the ruling LDP won a comfortable overall majority. END START The contest was seen as a crucial test of the LDP's continuing ability to hold office. END START The loss of the party's majority in the upper house in the elections of July 1989, against a background of scandals and the introduction of the unpopular consumption tax, had led to speculation that the party's 35-year period of unbroken rule was approaching its end. END START In the event the 1990 results confirmed the LPD's primacy and boosted the image of Prime Minister Kaifu. END START It also highlighted the strength of the party's local organization and its huge fund-raising ability. END START END START END START The election result also reflected the SDPJ (then the JSP)" s inability to field a sufficient number of candidates to achieve power. END START The party ran only 148 candidates, of whom 136 were elected, a larger proportion than in recent elections, but far short of the 257 seats required for an overall majority in the 512-member House of Representatives. END START Although SDPJ leader Takako Doi had wanted to field more candidates she had been prevented from so doing by pressure from sitting socialist members of the Diet. END START Her original wish to run two candidates in at least one-third of the country's 130 multi-member constituencies was abandoned on the grounds that it would have split the socialist vote in many areas. END START END START END START In contrast with the SDPJ, the three smaller opposition parties each lost seats, with the JCP and the DSP each falling below the 20-seat minimum threshold required for a party to propose legislation in the lower house. END START Their failure also appeared to reduce the chance of creating an effective opposition coalition. END START END START END START The election result enhanced the stature of Kaifu (who had been appointed as a caretaker leader in 1989) and reduced the amount of factional conflict within the ruling party. END START It also suggested that he would be permitted to remain as leader until the completion of his first term in October 1991, and would possibly achieve a second two-year term. END START Nevertheless, the fact that Kaifu did not lead any of the LDP's factions meant that he could never be entirely secure, as he remained vulnerable to the will of the party's factional power-brokers. END START This vulnerability increased during 1990 and the first half of 1991 as he grappled unsuccessfully with a series of complex problems [for his replacement in October 1991 see pp. 38528-29; 38558]. END START END START Electoral reform and Gulf war END START END START END START One of the key problems faced by Kaifu in 1990-91 was the issue of electoral reform. END START In May 1990 he had cautiously endorsed the reform plan suggested by the Election System Council, an advisory body to the Prime Minister. END START The plan involved the replacement of the current 130 constituencies (each of which had up to six seats) with some 300 single-member constituencies, with the remaining 200 seats distributed on the basis of proportional representation. END START The rationale behind the changes was to reduce the influence of" money politics" following the Recruit scandal [see pp. 37237-38]. END START It was argued that this could best be achieved by preventing the need for candidates from the same party to compete with each other in multimember seats, thereby reducing their need spend huge sums of money during the campaign. END START There were many in the ruling party who treated the proposals with great suspicion, however, and who worked to delay and discredit them on the grounds that they would undermine the current factional structure of the LDP. END START Many members of the opposition also disapproved of the planned change, arguing conversely that it would strengthen the LDP's hold on power. END START END START END START The other major problem to confront Kaifu stemmed from the Iraqi invasion of Kuwait in August 1990. END START Under US pressure, Kaifu announced in September a US$4,000 million contribution to the international effort against Iraq, and drew up a Peace Co-operation Bill to authorize the dispatch of 2,000 non-combatants from Japan's Self Defence Forces to assist the allied forces being deployed against Iraq. END START The measure, which would have involved the first overseas deployment of Japanese forces since 1945, was condemned by the opposition as unconstitutional (it was argued that Article 9 of Japan's post-war Constitution prohibited the country's participation in acts of collective defence) and by the governments of many of Japan's neighbours as an undesirable manifestation of nascent Japanese militarism. END START In the face of resolute opposition, the bill was withdrawn from the Diet in November [see p. 37859]. END START END START END START Under increased US pressure, Kaifu in January 1991 announced a further $9,000 million contribution to the Gulf war. END START This was eventually approved by the Diet but only in the face of tough SDPJ opposition and a damaging debate which further undermined Kaifu's authority. END START Once again, proposals to send Japanese forces to assist with the allied war-effort were defeated [see pp. 38010-11]. END START END START END START Damaged by the Gulf crisis and still without having achieved electoral reform, Kaifu's position by the end of 1990 looked considerably less secure than it had done in the immediate aftermath of the February elections. END START His faltering authority was demonstrated in December when an extensive Cabinet reshuffle was forced upon him by factional leaders. END START The LDP also suffered from the continuing consequences of the Recruit scandal (in October Hishashi Shinto, one of the country's most senior industrialists, was given a suspended two-year sentence for his role in the affair — see p. 37780) and the resignation from the party of a former Cabinet Minister, Toshiyuki Inamura, after being charged with large-scale tax evasion [see p. 37917]. END START END START Enthronement of Emperor END START END START END START Although there were violent clashes between rioters and police in Osaka in October 1990 [see p. 37780], there were fewer attempts by the radical left than had been expected to disrupt the enthronement ceremony of Emperor Akihito. END START The ceremony, together with the controversial Daijosai ritual (with its Shinto rites and implications of imperial divinity), passed off in November with only minor disturbances [see p. 37859]. END START END START Local elections END START END START END START Kaifu's prospects of a second term as leader brightened considerably after LDP successes in nationwide local elections held in April 1991 [see pp. 38147-48] in which the ruling party increased both its share of the vote and the number of seats which it held. END START END START END START The SDPJ lost seats in the local elections, with its worst showing since 1955. END START As a result, on June 21 Doi announced her resignation, which became effective in July when Tanabe was elected as her replacement [see pp. 38292; 38343]. END START END START END START The only setback for the LDP was its defeat in the gubernatorial election in Tokyo where the party had withdrawn support from its veteran incumbent governor, Shunichi Suzuki, in favour of a candidate supported by the DSP and Komeito. END START The deal had been struck by then LDP secretary-general Ichiro Ozawa in return for the support of the smaller parties in approving the Gulf package. END START When Suzuki won a fourth term, however, receiving almost 50 per cent of the vote, Ozawa resigned. END START His loss was a great blow for Kaifu as with him fell the strategy of forging a close working relationship between the LDP, the DSP and Komeito. END START END START END START In June a major scandal began to emerge involving securities dealers who had made secret compensation payments to favoured clients for losses incurred through taking their advice. END START In the light of the emerging scandal Kaifu pinned his hopes of re-election on his ability to achieve two pieces of legislation: the reform of the electoral system and the approval of Japan's right to send troops abroad in order to perform peace-keeping or disaster-relief roles. END START A special session of the Diet was called for early August, but with the developing securities scandal leading to widespread calls for urgent measures to improve regulation of the stock market, the LDP's failure to secure the support of Komeito and the DSP, and an unknown level of support for Kaifu within his own party, it was far from certain that the Prime Minister would succeed in his legislative aims. END START It was also uncertain by the middle of the year to what extent the LDP's factions were prepared to support a challenge to Kaifu for the leadership. END START This uncertainty had been increased by the death in May of Shintaro Abe, the leader of the party's second-largest faction. END START He was replaced in June by Hiroshi Mitsuzuka [see pp. 38191; 38292; for subsequent developments in securities scandal, special session of Diet see pp. 38342; 38397-98; for replacement of Kaifu by Miyazawa see pp. 38528-29; 38558]. END START END START Economy END START END START END START Despite a slump in the equity markets, the Japanese economy grew for a fourth consecutive year during 1990. END START Real gross national product (GNP) grew by 5.5 per cent in 1990, compared with 5.1 per cent in 1989 and 5.3 per cent in 1988. END START The main engines of growth were capital spending (under the June Structural Impediments Initiative (SII) agreement [see below; p. 36892] the Japanese government committed itself to spend 430,000,000 million yen (US$3,200,000 million) on public works over the next 10 years) and domestic consumption (domestic demand rose by almost 6 per cent during the year). END START The unemployment rate for fiscal year 1990 was 2.1 per cent, the lowest figure since fiscal year 1980. END START The inflation rate for 1990 was 3.3 per cent, the highest since 1981. END START END START END START There had been a fall in private consumption in 1989 following the imposition of the unpopular consumption tax. END START In 1990 sales of cars, video cameras and leisure related services boomed as consumers found themselves with higher disposable incomes because of wage increases averaging 6 per cent, at least double the rate of inflation. END START END START END START Among the industries which performed best were shipbuilding and construction. END START In 1989 Japanese companies had secured shipbuilding orders for new vessels totalling 9,700,000 gross tonnes, double the total of the previous year, so that although orders for 1990 were down to around 3,000,000 gross tonnes, shipbuilders' order books remained full until well into 1992. END START This, together with a doubling of ship prices in 1989-90, meant that five of the country's top seven shipbuilding concerns recorded profits after 10 years of losses. END START In the construction industry a record volume of backlog work and the government's massive programme of infrastructure spending led to predictions of considerable growth at least until 1993. END START END START END START The trade surplus fell from almost US$77,000 million in 1989 to $64,000 million in 1990, while the current-account surplus fell from almost $57,000 million to $35,800 million. END START Although exports continued to grow in 1990, up 3.9 per cent at $280,000 million, imports increased by 12.3 per cent to $216,000 million because of increases in oil prices and in demand for imported consumer goods, and overseas production also increased. END START The deficit on invisible items rose by 46 per cent to $22,600 million as an increasing number of Japanese made overseas visits. END START END START Collapse of equities market END START END START END START While the manufacturing sector showed its usual robust health, 1990 saw considerable volatility in Japan's financial markets, with equities plunging by nearly 15 per cent during the first three months of the year. END START Hopes that the LDP election victory would stabilize the markets proved unfounded, and in March the Bank of Japan (BoJ) raised the Official Discount Rate (ODR — the rate at which the BoJ lent money to commercial banks) by 1 percentage point to 5.25 per cent, the fourth rise since May 1989. END START The move was designed to ease the depreciation of the yen (which fell by 10 per cent against the dollar during the first three months of the year), dampen inflationary pressure and restore investor confidence. END START However, in April there were further sharp falls in the price of shares and the value of the yen. END START On April 2 share prices fell by almost 2,000 points as the Nikkei Average index plummeted by 1,987.30 points to close at 28,002.07 (compared with a record high of 38,915.87 on Dec. 29, 1989). END START It was the second largest fall in the country's history, exceeded only by the 3,836 point crash on" Black Monday" in October 1987. END START END START END START The slump slowed in pace but remained evident for much of 1990, and the ODR was raised to 6 per cent in August. END START In October the index fell below 20,000 points, leading to government intervention to support the market. END START The extent of the equity collapse was revealed in October when the country's big four securities brokers declared their worst profits since the" oil shock" year of 1973. END START The decline in pre-tax profits for the first six months of 1990 ranged from 55.1 per cent for Nomura Securities, the largest trader, to 74.2 per cent for Nikko and Yamaichi Securities. END START Although the slump in financial markets affected the ability of some companies to raise cheap money, its impact on the economy at large was limited. END START Among the greatest losers were the country's banks which, after recent years of high asset growth, saw the value of their share holdings greatly reduced. END START Fears that the share slump would drag down land prices proved unfounded, official figures showing an average national increase in land prices of 11 per cent in 1990, compared with 17 per cent in 1989. END START In early 1991, however, there was some evidence that land prices had levelled off and had even begun to fall. END START END START 1990 and 1991 budgets END START END START END START In May the House of Representatives approved a 66,236,791 million yen budget for the fiscal year beginning on April 1, 1990. END START (The February election had delayed the Diet's consideration of the budget, and had forced the government to adopt interim budgetary measures covering the first two months of the fiscal year.) END START END START END START In late December 1990 the Cabinet approved the budget for the fiscal year beginning in April 1991, in which it was predicted that the economy would grow by 3.8 per cent. END START The budget, which was passed by the Diet's lower house on March 14, totalled 70,347,000 million yen, a 6.2 per cent increase over the initial budget for fiscal 1990. END START It planned a 6 per cent increase in expenditure on public works (in accordance with the SII deal), but suggested that local authorities would be encouraged to increase public works expenditure by around 10 per cent. END START Debt servicing expenses were set to increase by 10.8 per cent, amounting to 22.5 per cent of general account outlays. END START Ministry officials attributed this increase to higher interest payments on outstanding government bonds. END START END START END START Defence spending was planned to rise by 5.1 per cent, the lowest percentage rise since 1960, and a whole percentage point lower than the previous year's increase. END START Finance Ministry officials specifically related the reduction in the rate of increase for defence expenditure to the relaxation of tension between what had been the Soviet bloc and the West. END START The proposed expenditure figure was in line with the 1991-95 medium-term defence spending programme, which was approved by the government on Dec. 20 and became operational in April 1991. END START The five-year programme was budgeted to cost 22,750,000 million yen, at an average annual increase of around 3 per cent. END START The fact that the 1991 figure was more than 2 percentage points higher than this figure was attributed to higher personnel costs and to contracts scheduled to be paid during fiscal 1991. END START Defence spending was calculated for 1991 at 0.951 per cent of projected GNP, less than 1 per cent; only between 1987 and 1989 had defence spending exceeded 1 per cent of GNP. END START The budget also increased the allocation for supporting US forces stationed in Japan from 168,000 million yen in fiscal 1990 to 177,500 million yen in 1991. END START END START Foreign relations END START END START END START Relations between Japan and the USA were bound up with the Gulf crisis [see above], with the USA appearing to want greater financial assistance from Japan (both for the Gulf operation and for the upkeep of US forces stationed in Japan) while also seeming unenthusiastic about the prospects of Japan actually deploying forces abroad in any capacity. END START The two countries achieved some progress in the sphere of trade relations, traditionally a source of mutual irritation. END START In March 1990 Kaifu met US President Bush for talks on trade issues, when various measures to open Japanese markets were agreed. END START This was followed in June by the successful completion of the Structural Impediments Initiative (SII) talks, which had begun in September 1989 with the aim of locating and removing structural causes for the considerable US-Japanese trade imbalance [see pp. 37376-77]. END START END START END START In January 1991 there were reports that the Japanese government was prepared to discuss opening its rice market to foreign imports, the source of one of the most bitter and protracted of trade disputes with the USA. END START The political strength of the farmers, who constituted some 10 per cent of the population and exerted a considerable electoral influence because of the anomalies of the electoral system, and their traditional close links with the LDP meant, however, that the reports were immediately denied, and no progress on the issue was forthcoming. END START In April 1991 Kaifu visited the USA for talks with Bush, and a multinational Import Board, established as a result of the SII talks, was inaugurated with the aim of reducing the US trade deficit with Japan which in 1990 had amounted to $41,000 million, almost half the total US deficit [see p. 38148]. END START In June the two countries agreed to extend the 1986 microchip deal by a further five years [see p. 38292], and finalized a pact granting greater foreign access to Japan's construction industry. END START In July Kaifu visited Bush at his holiday home in Maine [see pp. 38341-42]. END START END START END START The Gulf war and its attendant debate over the dispatching of Japanese troops overseas also affected Japan's relationship with its Asian neighbours, many of whom expressed fears that such a development might be the first step towards a resurgence of military power commensurate with the country's huge economic strength. END START This issue (together with the long-running territorial dispute over the disputed Senkaku islands) soured relations somewhat with China towards the end of 1990, even though earlier in the year Japan had been in the forefront of those countries arguing for a resumption of the aid to China which had been suspended after the Tiananmen Square massacre in June 1989. END START Relations improved with South Korea as a result of concessions over the treatment of the Korean minority within Japan, and Japan's admission of guilt over its past treatment of Korea [see p. 38623]. END START This issue of past treatment was also a factor in Japan's normalization talks with North Korea which began in 1990, as was the refusal of the North Korean government to open its nuclear industry to international inspection [see pp. 38621]. END START END START END START There were some signs in 1990-91 that Japan's long-running dispute with the Soviet Union might be drawing to an end. END START The conflict centred upon the Northern Territories, four islands (known in the Soviet Union as the Kuriles) which lay off the coast of Hokkaido, and which had been occupied by the Soviet Union in 1945. END START Although the two countries had resumed diplomatic relations in 1956, the outstanding territorial issue had frozen bilateral relations to the extent that they had not even signed a peace treaty formally ending the Pacific War. END START In July Kaifu made it clear that Japanese aid to the Soviet Union would not be forthcoming while the dispute remained outstanding. END START At the end of August the Soviet authorities eased restrictions on Japanese visits to family graves on Etorofu, the most militarily sensitive and least accessible of the four islands, and in September the Soviet Foreign Minister Eduard Shevardnadze visited Japan and suggested that his government was prepared to negotiate over the Northern Territories. END START Hopes that this would produce a settlement prior to the visit of Soviet President Gorbachev in early 1991, however, were dashed by Shevardnadze's subsequent resignation in December. END START In early 1991 there was an unprecedented degree of diplomatic activity between the two countries. END START Nevertheless, when Gorbachev made his visit to Japan in April it was not accompanied by any breakthrough over the territorial issue. END START He did, however, acknowledge the nature of the dispute and promised to reduce Soviet forces based on the islands and to facilitate Japanese access to them still further [see p. 38148]. END START END START END START END START END START ASIA — PACIFIC END START END START END START NORTH KOREA END START END START END START Area: 120,538 sq km. END START Population: 21,800,000 (1990 UNFPA est.). END START Capital: Pyongyang. END START Language: Korean. END START Religion: Buddhism, Confucianism, Daoism, Shamanism, Chondogyu. END START Armed forces: 1,111,000 (1990). END START Currency: North Korean won (US$1.00=0.9689 won as at Sept. 30, 1991). END START END START END START Major international affiliations: NAM. END START END START POLITICAL SYSTEM END START END START END START The Democratic People's Republic of Korea was established as an independent communist state in September 1948. END START Under the terms of the 1972 Constitution nominal political authority is held by a unicameral Supreme People's Assembly (SPA), the 687 members of which are elected every four years from a single list of candidates. END START The SPA, which elects a standing committee to represent it when not in session, also elects the President, who in addition to being head of state holds executive power and governs in conjunction with a Central People's Committee and an appointed State Administrative Council (Cabinet). END START Effective political control is exercised by the (communist) Korean Workers' Party, established in 1946. END START END START Main government leaders END START END START END START President of the Republic: Kim Il Sung. END START END START END START Premier: Yon Hyong Muk. END START END START END START Other principal ministers: Kim Yong Nam (Deputy Premier; Foreign Affairs); Kim Pok Sin (Deputy Premier; Chairman of Light Industry Commission). END START END START Cabinet changes END START END START END START A new State Administrative Council was made public on May 1990 [see pp. 37455-56]. END START END START Ruling party END START END START END START Korean Workers' Party (KWP, Kim Il Sung gen. -sec.). END START END START Other political parties END START END START END START There are no other legal parties. END START END START Elections END START END START END START SPA elections were held on April 22, 1990 [see p. 37375]. END START Kim Il Sung was re-elected President in May 1990 [see pp. 37455-55]. END START END START 1990/91 OVERVIEW END START END START END START The collapse of communism in many countries which were hitherto allies meant that North Korea was more isolated in 1990 than at any time in its recent history. END START This isolation was accentuated as, during the course of the year, the Soviet Union established diplomatic relations with South Korea and showed every sign of wanting to increase economic co-operation with the capitalist South [see p. 37714]. END START Even China showed signs of wishing to improve its relationship with South Korea, and in October 1990 the two countries established formal trade ties [see p. 37779]. END START END START END START Notwithstanding such international trends, however, the regime of Kim Il Sung, the" Great Leader", appeared unwilling to make any compromises in its traditional ideology and structure. END START In his 1991 New Year address Kim made no reference to the events in eastern Europe, choosing instead to reaffirm traditional policies and values. END START There was considerable speculation (allegedly stemming from Chinese official sources) that Kim would use the occasion of his 78th birthday (on April 15) to complete the long-anticipated handover of power to his son, Kim Jong Il, the 48-year-old" Dear Leader". END START The occasion, marked by its customary extravagant celebrations, passed, however, with no such announcement. END START Speculation concerning his forthcoming retirement was further dampened when in August the elder Kim proved his continuing stamina by undertaking a 19-day" on the spot guidance" tour of North Hamgyong Province. END START END START END START In April the ninth SPA was elected with the usual efficiency: turnout was claimed to be 99.78 per cent, with 100 per cent of votes cast for the successful candidates. END START At the 18th plenary session of the sixth KWP central committee, held in May on the eve of the first meeting of the new SPA, Choe Kwang and Han Song Yong (both of whom were aged and trusted comrades of Kim Il Sung) were promoted to the politburo [see p. 37455-56]. END START The appointments continued the policy of the last two years whereby Kim had promoted aged, faithful followers rather than elevating those belonging to Kim Jong Il's generation. END START END START END START Kim Il Sung was re-elected President of the Republic on May 24 and restated in his inaugural speech his commitment to socialism despite the" temporary setbacks" which had occurred elsewhere in the world [ibid.]. END START He explicitly rejected attempting to solve socialist problems by adopting capitalist methods, but did suggest that his government was interested in improving relations with capitalist countries. END START END START END START The twin trends of stagnation and decline continued to characterize the North Korean economy. END START As was usual the government released no economic statistics considered reliable by international commentators. END START The budget, presented to the SPA in May 1990, revealed a growth in revenue of 6.1 per cent compared with the previous year. END START END START Relations between North and South Korea END START END START END START The unification of Germany in 1990 left the Korean peninsula as the sole surviving example of formal partition originating from the Second World War. END START Despite the epoch-making changes in international relations, however, progress towards Korean reunification during 1990 remained slow and uncertain. END START END START END START The year began, as had become customary in recent years, with North Korean protests over the annual joint South Korean-United States" Team Spirit" military exercises. END START The South's refusal to cancel the exercises led to a freeze of all negotiating channels by the North. END START The most immediate casualty of this were the talks aimed at sending a single Korean team to compete in the Asian Games in China in September. END START The climate was not improved by the exposure in March of further North Korean tunnelling under the Demilitarized Zone (DMZ) separating the two countries. END START END START END START The talks freeze ended in July when the two sides agreed to participate in a summit meeting of their Premiers in September [see p. 37609]. END START There was little agreement concerning the agenda of the meeting, however, with the North favouring an immediate discussion of military, political and economic issues, while the South wanted first to agree on confidence-building measures such as exchange visits and cultural co-operation. END START The talks were also jeopardized by events surrounding plans by the South to open the border with the North for five days from Aug. 13; the North insisted that dissidents from the South should be allowed to attend a pro-unification rally in Panmunjom on Aug. 15 to celebrate the anniversary of Korean liberation from the Japanese rule [see p. 37657]. END START END START END START The Premiers' summit took place in Seoul in September [see p. 37699]. END START Although it made little progress its symbolic importance (the first such meeting to be held) was considerable. END START Both sides reiterated their established positions (within which there was little common ground), and the North also outlined three preconditions for further progress: (i) the scrapping of Team Spirit; (ii) no separate UN membership for the Korea states [but see pp. 38191; 38437]; and (iii) the release of those imprisoned in the South for having made unauthorized visits to the North. END START A second meeting was held in mid-October [see p. 37779-80] and a third in December [see pp. 37918-19], but they also failed to make any tangible progress. END START END START END START Relations between the two countries deteriorated in early 1991 against the background of the Gulf war and the approach of the 1991 Team Spirit exercises, scheduled for March. END START On Feb. 18 the North suspended the fourth round of Premiers' talks which had been scheduled for Feb. 25-28, but agreement was reached the same month on joint sports teams [see p. 38010; see also pp. 38341; 38437; 38529; 38576]. END START END START Other foreign relations END START END START END START Relations with the Soviet Union cooled considerably during 1990. END START The Soviet decision to establish diplomatic relations with South Korea was seen as a betrayal, and the meeting in June between Soviet President Gorbachev and his South Korean counterpart, Roh Tae Woo, was condemned by the North Korean official news agency as" unpardonable, traitorous bargaining" [see p. 37533]. END START END START END START Relations with the hardline regime in China fared better, with the general secretary of the Chinese Communist Party, Jiang Zemin, visiting Pyongyang on March 14-16, 1990, and Kim making a reciprocal visit to China on Sept. 11, shortly before the opening of the Asian Games in Beijing in which a South Korean team participated. END START In May 1991 Chinese Premier Li Peng made a three-day visit to North Korea [see p. 38191]. END START END START END START There was little change in relations with the United States, although in May 1990 the North for the first time handed over the remains of US servicemen missing in action from the Korean War [see p. 37456; see also p. 38295]. END START END START END START The most visible foreign policy progress came in relations with Japan. END START In September 1990 a Japanese delegation visited North Korea [see pp. 37714] The visit was a success, a communiqué was signed calling for negotiations aimed at the restoration of diplomatic relations, and two Japanese seamen detained in the North since 1983 were released in October [see p. 37779]. END START Exploratory talks were held in Beijing on in November and December [see pp. 37860; 37818], after which a first round of full normalization talks was held in Pyongyang in late January 1991 and a second in Tokyo in mid-March [see p. 38098]. END START The main obstacles to normalizing relations appeared to be North Korea's unwillingness to allow international inspection of its nuclear facilities, and Japan's refusal to accede to the North's demand for compensation not merely for the period of Japan's colonization of the country (1910-45) but also for the post-Pacific War period. END START A third round of talks was held in May, and in the same month the first direct charter flight between the two countries was made [p. 38191]. END START END START END START END START END START ASIA — PACIFIC END START END START END START SOUTH KOREA END START END START END START Area: 99,222 sq km. END START Population: 42,000,000 (1990 UNFPA est.). END START Capital: Seoul. END START Language: Korean. END START Religion. END START Buddhism, Christianity, Confucianism, Daoism. END START Armed forces: 650,000 (1990). END START Currency: South Korean won (US$1.00=839.61 won as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; APEC. END START END START POLITICAL SYSTEM END START END START END START The Republic of Korea became independent in August 1948. END START Under the Constitution of the Sixth Republic, adopted in February 1988, legislative authority rests with a National Assembly whose 299 members serve for four years. END START Executive power is held by the President who is popularly elected for a five-year term and who governs with the assistance of an appointed State Council led by a Prime Minister. END START The Constitution was adopted following sustained popular unrest during 1987. END START END START Main government leaders END START END START END START President of the Republic: Roh Tae Woo. END START END START END START Prime Minister: Chung Won Shik. END START END START END START Other principal ministers: Choi Gak Kyu (Deputy Prime Minister; Economic Planning Board); Lee Sang Ock (Foreign Affairs); Ahn Eung Mo (Home Affairs); Rhee Yong Man (Finance); Kim Ki Choon (Justice); Lee Jong Koo (Defence). END START END START Cabinet changes END START END START END START There were Cabinet changes in March 1990 [see pp. 37319-20]; September [see p. 37714]; October [see p. 37779]; November [see p. 37860]; December [see p. 37918]; February 1991 [see p. 38010]; and May [see pp. 38177-78]. END START END START Ruling party END START END START END START Democratic Liberal Party (DLP, Roh Tae Woo pres. — see below). END START END START Other main political parties END START END START END START The New Democratic Party (NDP, Kim Dae Jung pres., the main opposition coalition constructed around the socialist Party for Peace and Democracy (PPD)); Democratic Party (Lee Ki Taek pres., formed in 1990 by RDP members opposed to the creation of the DLP), Civil Rights Party (CRP, Kim Eui Taek pres.). END START END START Elections END START END START END START Amid allegations of fraud and electoral malpractice, Roh Tae Woo, candidate of the ruling DJP, was elected President on Dec. 16, 1987 [see pp. 35768-71]. END START In elections to the National Assembly on April 26, 1988, the DJP emerged as the largest single party but failed to retain an overall majority for the first time since its formation in 1981 [see pp. 36019-22]. END START END START 1990-91 OVERVIEW END START END START END START The year began with a remarkable realignment which transformed Korean politics and once again demonstrated Roh Tae Woo's political acumen and ability to wrong-foot the opposition. END START In late January 1990 it was announced that the then ruling party, the Democratic Justice Party, was to merge with the Reunification Democratic Party (RDP) and the New Democratic Republican Party (NDRP), two of the country's three main opposition groups [see p. 37187]. END START The move not only split the opposition, but also eradicated Roh's problem of having failed to achieve an overall legislative majority in the 1988 elections. END START It also expanded Roh's electoral power-base beyond the DJP's traditional heartland of North Kyongsang province and Taegu city. END START The RDP, led by veteran opposition figure Kim Young Sam, had traditionally drawn the bulk of its support from South Kyongsang province (including Pusan), while the NDRP, led by Kim Jong Pil, had been based in the north and south Chungchong regions. END START The only significant political grouping excluded from the new ruling coalition was the Party for Peace and Democracy (PPD), led by Kim Dae Jung, which drew its support mainly from Cholla province and the city of Kwangju, in the comparatively underdeveloped south-west of the country. END START END START END START The new Democratic Liberal Party (DLP) was formally inaugurated at a joint convention in February 1990 [see pp. 37187-88; 37247-48], and held its own first convention in May [see pp. 37456-57]. END START The size and political diversity of the coalition, however, meant that it was subject to factional infighting which at times threatened its very existence. END START In April Park Chul Un, Roh's nephew and a key presidential adviser, became involved in a major confrontation with Kim Young Sam over control of the accelerating process of rapprochement with the Soviet Union. END START Although Park had been largely responsible for South Korea's successful drive to establish diplomatic links with the countries of eastern Europe, Kim had in March visited Moscow and appeared intent on becoming increasingly involved in the process. END START In the resulting confrontation the threat of Kim withdrawing his former RDP members from the DLP was eventually sufficient to force Roh to side with him. END START While Kim retained his position as DLP executive chairman (a position which he elevated above his co-chairman Kim Jong Pil and Park Tae Jun), Park Chul Un was removed from the Cabinet (although he was reappointed to the Cabinet in December as Minister for Sports and Youth). END START END START END START There was further dispute later in the year over the issue of whether the country should retain its current presidential system of government or should adopt a prime ministerial system. END START In May the three former party leaders within the DLP had signed a secret memorandum agreeing to begin moving towards the latter system during 1990. END START The unpopularity of the planned change, however, led Kim Young Sam to reverse his position and exposed him to subsequent attack by DJP supporters within the ruling party, who leaked his role in the memorandum agreement to the press. END START Kim denied charges of inconsistency, and characterized the dispute as a further attempt to discredit him. END START The threat of his withdrawing from the coalition was again sufficient to rally the support of Roh, who was forced to join Kim in disowning the planned constitutional reform [see p. 37860]. END START END START END START Beneath the surface of the factional infighting lay the key issue of the choice of the DLP's candidate in the next presidential elections. END START Kim Young Sam made no secret of his wish to be Roh's successor, although there were many within the party, particularly former DJP members, who vehemently opposed his succession. END START The effect of the infighting, together with the government's unimpressive pace of democratic reform, meant that the ruling party's level of support dwindled throughout the year, a fact which was translated into several humiliating by-election losses [see p. 37375]. END START END START END START The DLP was also damaged by the resolute opposition of the PPD. END START Kim Dae Jung had accused Roh of staging a constitutional coup by his merger with the opposition, and had characterized the DLP as no more than an attempt to provide a form of constitutional legitimacy for the government's increasing authoritarianism. END START This claim was given credence by the DLP's use in July of its legislative majority to enact 26 bills in defiance of normal legislative procedure. END START In addition to bills to restructure the military leadership and reorganize the broadcasting media, there was also a particularly sensitive measure to settle the level of compensation for those killed or injured in the government's brutal suppression of the 1980 Kwangju uprising. END START The DLP's enactment of the package of legislation provoked fighting within the National Assembly and widespread street protests. END START It also resulted in a boycott of the legislature by the PPD between July and November [see pp. 37609; 37714; 37779; 37860]. END START END START END START Opposition criticisms that the DLP was moving with insufficient speed to eradicate the legacy of South Korea's recent history of military rule were highlighted by a scandal in October which revealed that the Defence Security Command (DSC), the counter-intelligence unit of the armed forces, was continuing to conduct surveillance operations against a broad range of civilian figures including Kim Dae Jung. END START The scandal led to the dismissal of the Defence Minister on Oct. 8 [see p. 37779]. END START END START END START Further scandals were revealed in February 1991, including the Suso housing scandal (a massive case of bribery) which led to a Cabinet reshuffle and a televised apology by Roh on behalf of his government [see pp. 38009-10]. END START However the government's position was bolstered by local elections, the first to be held in South Korea for 30 years, which took place in March 1991. END START The DLP won 49 per cent of the seats compared with only 19 per cent won by the PPD and 32 per cent won by independents [see p. 38098]. END START Also in March Roh stated that" for the sake of the nation and its political development" he should be" the last president to come from the army". END START The statement was widely interpreted as applying specifically to his ambitious brother-in-law and former Superintendent at the Korean Military Academy, Kim Bok Dong. END START END START END START The result of the local elections accelerated Kim Dae Jung's attempt to unite all elements of the anti-Roh opposition within a single party. END START The PPD merged with the small Party for New Democratic Alliance in April, and became the New Democratic Party [see p. 38147]. END START Kim was also known to be holding talks with other opposition groups. END START END START Popular unrest — second phase of local elections END START END START END START In May 1990 South Korea experienced the worst popular unrest since Roh had become President as many thousands of students participated in street protests throughout the country. END START The catalyst for the demonstrations was the beating to death of a student demonstrator by riot police. END START As they developed, however, the protests came to incorporate demands for the resignation of Roh's government and merged with the traditional demonstrations commemorating the Kwangju uprising. END START The protests were accompanied by at least eight cases of self-immolation, several of which resulted in deaths and were themselves the focus of further protests. END START In a bid to defuse the protests Roh was eventually forced to replace the Prime Minister [see pp. 38177-78]. END START Although the protests continued into June, their size diminished. END START Following an incident on June 3 in which Chung Won Shik, the new Prime Minister, was assaulted by students, the government began taking a tougher line with the protesters [see pp. 38291-91]. END START END START END START Unlike the protests of 1987 which had ended the Fifth Republic, the 1991 protests, although frequently large and violent, lacked support from the country's middle class. END START This was illustrated during the second phase of the local elections, held in June 1991 to determine the composition of the country's larger metropolitan and provincial assemblies. END START The DLP secured an impressive victory, winning 564 of the 866 seats at stake [see p. 38292]. END START The results, however, also confirmed the continuing regionalism at the heart of South Korean politics, with the DLP making no headway in the opposition-dominated south-west of the country. END START END START Economy END START END START END START The speed of South Korea's recent economic growth had been remarkable. END START Annual gross national product (GNP) increased dramatically from US$60,500 million in 1980 to $237,900 million in 1990. END START Per capita income grew from $1,592 to $5,200 during the same period. END START This cycle of growth, which was based primarily upon exports, reached its peak in 1986-88, when the annual rate of growth was in excess of 12 per cent. END START This figure fell to 6.7 per cent in 1989 as exports suffered from a less favourable exchange rate, from substantial increases in labour costs and from slower growth rates in South Korea's main trading partners. END START During 1990 export levels were static or fell in many key categories, including electronics and textiles, leading to concerns about the overall state of the economy. END START In March 1990 there was a wholesale dismissal of those Cabinet Ministers responsible for the economy [see p. 37319]. END START The new team moved the focus of economic policy away from the attempt to close the gap between rich and poor and returned to the pursuit of export-led high growth rates. END START END START END START Although South Korea recorded a growth rate of 9.1 per cent in 1990, this was achieved largely through a boom in the construction industry manufactured by a government-backed residential building programme which aimed to construct 2,500,000 new housing units in 1988-92. END START Increased levels of domestic consumption (including expenditure on luxury items), however, suggested that a more fundamental shift was under way whereby the dynamic of the South Korean economy was changing from one which was export-led to one based upon domestic demand. END START END START END START Labour disputes declined during 1990; the number of strikes was only 25 per cent of that for the previous year. END START Wages rose about 9 per cent, although inflationary pressure meant that average settlements would probably rise to 12 per cent in 1991. END START Rising labour costs, together with the depreciation of the won, helped to increase inflation to its highest level since 1981, with consumer prices rising by some 10 per cent in 1990, and wholesale prices by 7 per cent. END START END START END START Property prices continued to rise substantially faster than inflation, and there was evidence of increasing public resentment towards speculators. END START The government attempted to address the problem with a complex package of restrictions designed to limit landholdings, particularly in the larger cities; property taxes and capital gains tax were raised, while windfall gains from development projects were subject to heavy levies. END START Continuing weak enforcement, however, meant that the South Korea continued to have some of the lowest real property taxes in the world. END START END START END START The agricultural sector continued to lag behind other areas of the economy. END START During 1990 farmers mobilized considerable support against government plans to reduce restrictions on agricultural imports. END START END START END START The overall trade deficit in 1990, according to preliminary figures, was US$4,730 million — the first overall deficit to have been recorded for five years. END START It was attributed primarily to the decline in exports to Japan and to the increase in oil prices resulting from the Gulf crisis. END START Overall exports grew by 4.2 per cent to $64,900 million while imports grew by 13.4 per cent to $69,710 million. END START The country's current account, which had consistently recorded large surpluses since the mid-1980s, fell to a $2,100 million deficit in 1990, compared with a $5,100 million surplus in 1989. END START END START END START In September 1990 the Cabinet finalized the budget for fiscal year 1991 at 27,182,500 million won (US$36,800 million). END START This included 7,777,400 million won for defence spending, an increase of 12.9 per cent over the previous year. END START Despite this increase, however, defence spending as a proportion of the budget as a whole amounted to 28.6 per cent in the 1991 budget compared with 30.4 per cent in 1990. END START As a proportion of GNP, however, defence spending remained unchanged. END START END START Foreign relations END START END START END START The most striking successes of Roh's presidency were in the field of foreign relations, particularly his policy of establishing formal relations with communist regimes previously allied to North Korea. END START Diplomatic relations were established in 1990 with Bulgaria, Czechoslovakia, Romania, Mongolia and the Soviet Union [see p. 37714]. END START Roh met Soviet President Gorbachev in San Francisco in June 1990 [see p. 37533], and in December he visited the Soviet Union, the first such visit undertaken by a South Korean leader [see p. 37918]. END START In January 1991 the two countries negotiated a US$3,000 million assistance package involving a $1,500 million loan to finance the purchase of South Korean consumer goods and industrial products, $500 million tied to the purchase of South Korean capital goods, and $1,000 million in notionally untied loans. END START In April Gorbachev made a brief visit to South Korea, the first Soviet leader to visit either Korean state [see p. 38147]. END START END START END START It was estimated that trade with the Soviet Union increased by almost 50 per cent in 1990 to $889 million. END START South Korean exports, including electronic consumer goods, textiles and steel products, rose from $208 million in 1989 to $519 million in 1990. END START Imports, including pig iron, coal, aluminium and frozen fish, fell slightly to $370 million. END START END START END START Relations with China improved at a less dramatic pace, but in October 1990, after a South Korean team had participated in the Asian Games in Beijing, the two countries signed an unprecedented trade agreement, under which trade offices would be established in each country which would perform limited consular functions and would provide the basis for the eventual normalization of diplomatic relations [see p. 37779]. END START Trade with China rose by 22 per cent in 1990 to $3,850 million. END START South Korea's principal exports to China — synthetic fabrics, leather, paper and raw materials — were outstripped by imports of bituminous coal, crude oil, petroleum products and cement, giving rise to a $688 million deficit. END START END START END START Roh also visited Japan in May 1990 to mark the resolution of several outstanding issues between the two countries, including improvements in the position of the substantial number of Koreans resident in Japan, and the acknowledgment of Japanese remorse for the occupation of Korea between 1910 and 1945 [see p. 37457]. END START The then Japanese Prime Minister Toshiki Kaifu made a reciprocal visit to South Korea in January 1991 [see p. 37960]. END START Owing to the won's steep depreciation against the yen, South Korea's trade deficit with Japan worsened in 1990 to its highest ever level, exceeding $5,000 million. END START END START END START Relations with the United States, South Korea's main ally, also improved in early 1990 as the Roh government appeared to accept the proposed reduction (from 44,000 to 37,000 over two years) in the number of US troops stationed in South Korea. END START After talks lasting a year, the government also agreed in June to bear the cost of relocating the main US army base from Seoul to a new site south of the city. END START Trading relations between the two countries were considerably better than during the late 1980s, not least because US pressure had succeeded in opening some South Korean markets, causing the trade surplus with the USA to fall from $8,600 million in 1988 to $4,700 million in 1989. END START The slow pace of liberalization measures, however, particularly in the agricultural and finance sectors, continued to be a source of irritation to the USA. END START END START END START END START END START ASIA — PACIFIC END START END START END START LAOS END START END START END START Area: 236,800 sq km. END START Population: 4,100,000 (1990 UNFPA est.). END START Capital: Vientiane. END START Languages: Lao or Laotian (official); French and tribal languages. END START Religion: Buddhism; also Christianity and Animism. END START Armed forces: 55,100 (1990). END START Currency: new kip (US$1.00=699.201 new kip as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; NAM. END START END START POLITICAL SYSTEM END START END START END START The Lao People's Democratic Republic (LPDR) was proclaimed in December 1975 following the victory of the (communist) Lao Patriotic Front in a 25-year civil war. END START A President and a Council of Ministers were installed, but effective political power has since been exercised by the leadership of the sole legal political organization, the Lao People's Revolutionary Party (LPRP). END START A 79-member Supreme People's Assembly (SPA) was elected in 1989 with the primary aim of drafting a constitution. END START The LPDR's first Constitution, published in June 1990, was eventually endorsed by the SPA in August 1991 [see pp. 37533; 38390]. END START END START Main government leaders END START END START END START President: Kaysone Phomvihane. END START END START END START Prime Minister: Gen. Khamtay Siphandon replaced Kaysone Phomvihane as Premier (Chair of the Council of Ministers) in mid-August 1991 [see p. 38390-91]. END START END START END START Other principal ministers: Sisomphone Lovansay (Vice-Premier); Gen. Phoune Sipaseuth (Vice-Premier; Foreign Affairs); Khamphoui Keoboualapha (Vice-Premier; Economics, Planning and Finance); Brig. -Gen. END START Choummali Saignakong (National Defence); Asang Laoli (Interior); Col. Phao Bounnaphon (Commerce; Foreign Trade and Economic Relations). END START END START Cabinet changes in 1990-91 END START END START END START Sali Vongkhamsao, Vice-Premier and Minister of Economy, Planning and Finance, died in January 1991 [see p. 37963]. END START The Council of Ministers was reshuffled in August, with the appointment of a new Prime Minister, a new Minister of National Defence and a replacement for Sali Vongkhamsao [see pp. 38390-91]. END START END START Ruling party END START END START END START The Lao People's Revolutionary Party (LPRP) is the sole legal political party in Laos. END START The LPRP held its fifth congress in March 1991 at which (i) a new central committee and politburo were elected; (ii) the secretariat was abolished; and (iii) Kaysone Phomvihane, hitherto party general secretary, was elected as" president of the party" [see p. 38150]. END START END START END START LPRP politburo: Kaysone Phomvihane, Nouhak Phoumsavan, Gen. Khamtay Siphandon, Gen. Phoune Sipaseuth, Maychantane Sengmany, Lt.-Gen. END START Saman Vignaket, Oudom Khatti-gna, Brig. -Gen. END START Choummali Saignakong, Somlak Chanthamat, Khamphoui Keoboualapha, Thongsing Thammavong. END START END START Other parties END START END START END START The LPRP is the sole legal political party. END START END START Elections END START END START END START The LPDR's first national, central-level, elections to the SPA were held in March 1989 [see p. 36523]. END START The SPA elected Kaysone Phomvihane to the post of President in August 1991 [see pp. 38390-91]. END START END START 1990-91 OVERVIEW END START END START END START The major political event of 1990-91 was the promulgation of the new Constitution, the first since the communist victory in 1975. END START Ostensibly, efforts at drafting the constitution had been under way since the mid-1970s, but real progress had only become evident in mid-1990 when a first draft was published for discussion. END START The final document provided for a powerful president and inevitably, shortly after the constitution had been promulgated, Kaysone Phomvihane was elected President. END START He was replaced as Prime Minister by Gen. Khamtay Siphandon, hitherto Defence Minister. END START END START END START The other major political event was the LPRP's fifth congress which took place in March 1991. END START Kaysone, hitherto general secretary of the party, was elected as" party president". END START He remained firmly in control of the LPRP, and his powers were possibly increased by the abolition of the central committee secretariat. END START The" old guard" revolutionaries who had struggled alongside Kaysone since the 1940s, including Souphanouvong and Phoumi Vongvichit, left the politburo and, probably, active politics. END START END START Security END START END START END START There was an upsurge in anti-government guerrilla activity in 1990. END START In the north of the country guerrillas were particularly active during the first half of the year. END START Guerrilla sources accused the government of carrying out indiscriminate air attacks in areas under their control. END START In a report on the fighting on April 10, Lao National Radio stated that government forces had recently carried out two campaigns against" bad and vandalistic" elements in the north-western province of Bolikhamsai. END START Much of the insurgent activity was believed to have been carried out by the United Lao National Liberation Front. END START A new rebel radio station, the" Radio Station of the Government for the Liberation of the Lao Nation", in late July began broadcasting criticism of Kaysone and the Lao government and calling on the Lao people to follow the examples set by the peoples of eastern Europe. END START END START END START In October two former deputy ministers were arrested over an alleged coup plot; the two, along with a number of other top-level officials, had reportedly formed a pro-democracy grouping, the Social Democrat Group. END START END START Economy END START END START END START The government continued to implement the policy of radical economic reform initiated in 1987. END START The aim was to shift from central planning towards a more market-based economy, and towards this end the government had (i) removed subsidies and price controls; (ii) introduced a foreign investment code; (iii) restructured the banking system; and (iv) initiated a privatization programme. END START In June 1990 the country's first financial conference took place in Vientiane to evaluate the implementation and the future direction of the reform programme. END START The IMF in April 1991 approved a loan of SDR8,790,000 under a 1989 structural adjustment facility agreement; commenting on the reform programme, the IMF stated that most of the elements of a market-based economic system were in place in Laos. END START END START Foreign relations END START END START END START The then Prime Minister of Thailand, Gen. Chatichai Choonhaven, visited Laos in November 1990 [see p. 37857]. END START The Thai Army commander, Gen. Suchinda Kraprayoon, visited in March 1991 and an agreement was reached to withdraw all troops of both countries from disputed border areas. END START Laos and Thailand agreed on a plan under which Lao refugees living in Thailand would be repatriated or resettled by the end of 1994, and in August a security and co-operation agreement was signed [see p. 38391]. END START END START END START A decision taken by the United States in 1989 to withhold aid to Laos because of its failure to assist the USA in the suppression of drug trafficking was reversed in early 1990. END START Throughout 1990 Laos continued to assist the USA in the search for US servicemen reported missing in action (MIA) during the Vietnam war. END START In October Foreign Minister Gen. Phoune Sipaseuth met with US Secretary of State James Baker in New York, the highest-level meeting between the two countries since the communist victory of 1975. END START END START END START Delegations from Laos and China held their first meeting in Vientiane in August 1990 to discuss the delineation of a permanent border between the two countries; at the close of the meeting a provisional border agreement was signed. END START Technical border teams went on to meet in Vientiane in September, Beijing in November, Yunnan province (China) in January-February 1991 and Vientiane in August. END START The Chinese Premier, Li Peng, visited Laos on Dec. 15-17, and held talks with all the main political leaders in Laos, including Kaysone Phomvihane, Phoumi Vongvichit and Nouhak Phoumsavan. END START During the visit the two sides signed an agreement on economic and technical co-operation, under which China granted a long-term interest-free loan of 50,000,000 yuan (US$9,500,000) to Laos for" priority work in the improvement and construction of economic bases". END START Gen. Phoune Sipaseuth visited China in late April 1991 to attend celebrations of the 30th anniversary of the establishment of diplomatic ties between the two countries. END START Lao and Chinese officials met with officials from the office of the UN High Commissioner for Refugees (UNHCR) in Yunnan province in early July. END START After the meeting, the delegates signed a memorandum on repatriating Lao refugees from China. END START END START END START In February 1991 Laos signed an agreement with the Soviet Union under which future trade with the Soviet Union would be calculated at world market prices, with payment in hard currency. END START END START END START In February 1991 Laos and Vietnam signed an agreement on exchange of goods and payments for the 1991-95 period, under which future trade transactions between the two countries would be settled in hard currency, rather than in Soviet roubles as hitherto. END START The Far Eastern Economic Review of Feb. 28 estimated that two-way trade between the two countries in 1991 would total some US$14,000,000. END START END START END START The then Foreign Minister of Japan, Taro Nakayama, visited Laos in August 1990 when he announced details of a major aid package [see p. 37656]. END START END START END START A Lao delegation led by Souban Salitthilat, Vice-Minister of Foreign Affairs, visited Myanma in August 1990 for border demarcation talks. END START In December a Myanman delegation visited Laos; memorandums were signed on a future border survey and co-operation in the suppression of the narcotics trade. END START END START END START A delegation from France visited Laos in September 1990 to discuss co-operation and financial assistance during 1990-91. END START Later that month a ministerial delegation paid an official visit to France. END START END START END START END START END START ASIA — PACIFIC END START END START END START MACAO END START END START END START Area: 17 sq km. END START Population: 500,000 (1990 est.). END START Capital: Macao City. END START Languages: Portuguese and Cantonese (official); English widely spoken. END START Religion: Roman Catholicism and Chinese Buddhism. END START Armed forces: 3,000 (Comando de Forças de Segurança — Comforseg) (1990). END START Currency: pataca (US$1.00=P7.996 as at Sept. 30, 1991). END START END START POLITICAL SYSTEM END START END START END START Macao is a Special Territory of Portugal. END START It will revert to Chinese rule in 1999, the Chinese government having already, in 1988, established a Macao Special Administrative Region (SAR). END START Under the terms of the Constitution (embodied in an organic statute of Portugal, promulgated in 1976 and revised in 1990) executive power is vested in the Governor except in foreign affairs, which are the responsibility of the President of Portugal. END START The Governor (who is appointed by the President of Portugal) is assisted by as many as seven Under-Secretaries with executive powers, and presides over a Superior Council of Security and a Consultative Council. END START The Legislative Assembly of Macao comprises 23 members, of whom seven are government appointees, eight are indirectly elected by business associations and eight are elected by direct universal suffrage. END START END START Main government leaders END START END START END START Head of State: Mário Soares (President of Portugal). END START END START END START Governor: Gen. Vasco Rocha Vieira. END START END START END START Under-Secretaries: Vitor Pessoa (Economic Affairs); Jose Manuel Machado (Public Works); Brig. END START Lajes Ribeiro (Public Security); Macedo De Almeida (Justice); Salavessa Da Costa (Information Services, Tourism and Culture); Jorge Rangel (Education and Administration); Ana Maria Perez (Health and Social Affairs). END START END START Changes of Under-Secretaries in 1990-91 END START END START END START A reshuffle of Under-Secretaries was carried out in early 1990. END START In June the Under-Secretary for Justice, Manuel Magalhaes e Silva, resigned. END START In May 1991 all seven Under-Secretaries were replaced. END START END START Political parties END START END START END START There are no formal political parties, but a number of civic organizations exist, including Pro-Macao, the Electoral Union and the Flower of Friendship and Development of Macao. END START END START Elections END START END START END START Elections to the Legislative Assembly were held in October 1988 [see p. 36765]. END START END START 1990/91 OVERVIEW END START END START END START Carlos Melancia resigned as Governor of Macao in September 1990 following allegations of corruption. END START Melancia, who had been appointed to the post in mid-1987, had been implicated in a financial scandal in February 1990. END START It was alleged that he had accepted money from a German company bidding for a contract for the construction of the new Macao airport. END START Melancia, who resigned after being served with a summons in connection with the alleged bribery, denied all charges of corruption and maintained that he was the innocent victim of a politically motivated smear campaign. END START A staunch ally of President Soares, he had been criticized by political opponents of Soares for his soft handling of relations with China. END START In an attempt to counter such criticisms Melancia had, during a visit to Portugal in June 1990, launched an unprecedented attack against what he described as Chinese interference in the internal affairs of Macao. END START Upon his resignation Melancia was replaced, in an acting capacity, by Francisco Murteira Nabo, the Under-Secretary for Economic Affairs. END START In January 1991, on his re-election as President of Portugal, Soares appointed Gen. Vasco Rocha Vieira as the new Governor. END START Soares had paid a visit to Macao two months before his re-election. END START END START END START In March 1990 the Legislative Assembly had unanimously approved the final draft of the territory's revised Organic Law (Constitution). END START The revisions granted Macao increased autonomy in advance of the transfer of power to China in 1999. END START In July 1991 the Draft Basic Law of the Macao SAR, which was to become the territory's new Constitution in 1999, was published. END START Like Hong Kong, Macao would retain its capitalist system after 1999 and would have a high degree of autonomy, except in foreign affairs and defence. END START END START Budget and economy END START END START END START In late 1989 the government launched a five-year plan aimed at diversifying Macao's economy and thereby reducing dependence on the textile industry and tourism. END START The plan aimed to upgrade existing industries and to attract a number of new ones, such as financial services. END START Major problems facing the diversification plan included a lack of infrastructure and a labour shortage. END START However, efforts were well under way in 1990 to address the first problem, with the construction of an airport and a new industrial park. END START END START END START Macao became a contracting party to the General Agreement on Tariffs and Trade (GATT) in 1991 [see p. 37979]. END START END START END START END START END START ASIA — PACIFIC END START END START END START MALAYSIA END START END START END START Area: 329,758 sq km. END START Population: 17,900,000 (1990 UNFPA est.). END START Capital: Kuala Lumpur. END START Languages: Bahasa Malaysia (official); English widely used, Chinese, Tamil and Iban spoken by minorities. END START Religion: Islam (about 53%), Buddhism (about 19%), Hinduism, Christianity and Animism. END START Armed forces: 129,500 (1990). END START Currency: ringgit or Malaysian dollar (US$1.00=2.7318 ringgits as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; APEC; ASEAN; ICO; NAM. END START END START POLITICAL SYSTEM END START END START END START The Federation of Malaysia, consisting of the 11 states of Peninsular Malaysia and the two states of Sarawak and Sabah situated on the northern coast of the island of Kalimantan (Borneo), is a parliamentary monarchy. END START A Supreme Head of State (Yang di-Pertuan Agong) is elected every five years from among their own number by the nine hereditary Malay rulers of Peninsular Malaysia. END START The Yang di-Pertuan Agong appoints a Cabinet headed by a Prime Minister. END START Malaysia has a federal form of government, with a bicameral legislature, residual legislative powers resting with the states legislative assemblies. END START Parliament (Parlimen) consists of (i) a 69-member Senate (Dewan Negara), serving a six-year term, two members of which are elected by the Legislative Assembly of each of the states, the remaining 43 members being nominated by the Yang di-Pertuan Agong; and (ii) a 180-member House of Representatives (Dewan Rakyat) elected for a five-year term by universal adult suffrage by simple majority in single-member constituencies. END START END START Main government leaders END START END START END START Supreme Head of State: Sultan Azlan Muhibbuddin Shah. END START END START END START Prime Minister: Mahathir Mohamed (also Minister of Home Affairs). END START END START END START Other principal ministers: Ghafar Baba (Deputy Prime Minister; National and Rural Development); Anwar Ibrahim (Finance); Abdullah Ahmad Badawi (Foreign Affairs); Najib Tun Razak (Defence); Rafidah Aziz (International Trade and Industry); Ling Liong Sik (Transport); Sanusi Junid (Agriculture); S. Samy Vellu (Energy; Telecommunications and Posts). END START END START Cabinet changes in 1990-91 END START END START END START Mahathir appointed a new Cabinet in late October 1990 following the general election [see p. 37861]. END START He reshuffled the Cabinet in February 1991 [see p. 38011]. END START END START Ruling coalition END START END START END START Malaysia is governed by the multiracial National Front coalition (Barisan Nasional — BN, Ghafar Babar sec. -gen.). END START The principal party within the BN is the United Malays National Organization (UMNO Baru, Mahathir Mohamed pres.). END START The other members of the BN are: Angkatan Keadilan Rakyat (AKAR — People's Justice Movement, Mark Koding l.); END START Gerakan Rakyat Malaysia (GERAKAN, Lim Keng Yaik pres.); END START Liberal Democratic Party (LDP); Malaysian Chinese Association (MCA, Ling Liong Sik pres.); END START Malaysian Indian Congress (MIC, S. Samy Vellu pres.); END START Parti Bansa Dayak Sarawak (PBDS, Leo Moggie Anak Irok pres.); END START Parti Pesaka Bumiputra Bersatu (PBB, Abdul Taib Mahmud pres.); END START People's Progressive Party of Malaysia (PPP, Mak Hon Kam pres.); END START Sarawak National Action Party (SNAP, Amar James Wong Kim Min pres.); END START Sarawak United People's Party (SUPP, Wong Soon Kai pres.); END START United Sabah National Organization (USNO, Sakaran Bin Dandai pres.); the Sabah-based AKAR and LDP were admitted to the BN in July 1991 [see p. 38344]. END START END START Other parties END START END START END START The Angkatan Perpaduan Ummah (APU) is an opposition coalition consisting of the following four parties: Barisan Jama'ah Islamiah Se Malaysia (Berjasa, Wan Hashim Bin Haji Wan Achmed pres.); END START Parti Hisbul Muslimin Malaysia (Hamim, Asri Muda pres.); END START Parti Islam Se Malaysia (PAS, Fadzil Nor pres.); END START Semangat" 46 (Razaleigh Hamzah pres.). END START Other opposition parties include the Democratic Action Party (DAP, Lim Kit Siang sec. -gen.) and the former BN member Parti Bersatu Sabah (PBS, Joseph Pairin Kitingan pres.). END START END START Elections END START END START END START Azlan Shah was elected Supreme Head of State in March 1989. END START Elections to the House of Representatives were held in October 1990. END START At the same time elections were also held for all state legislative assemblies, except those of Sabah and Sarawak (where elections were held in July 1990 and April 1987 respectively). END START Elections to the Sabah State Assembly had been held in July 1990. END START A series of by-elections were held in May 1991. END START State Ruling party Chief Minister or Menteri Besar Johore BN Muhyiddin Yassin Kedah BN Osman Aroff Kelantan APU Nik Abdul Aziz Nik Mat Malacca BN Abdul Rahmin bin Thamby Chik Negri Sembilan BN Mohammed Isa bin Abdul Samad Pahang BN Khalil Yaacob Penang BN Koh Tsu Koon Perak BN Ramli Ngah bin Talib Perlis BN Abdul Hamid Pawanteh Sabah PBS Joseph Pairin Kitangan Sarawak BN Abdul Taib Mahmoud Selangor BN Mohammed bin Mohammed Taib Trengganu BN Wan Mokhtar bin Ahmad END START END START State details END START END START END START 1990/91 OVERVIEW END START END START END START The ruling BN coalition was returned to office in elections held in October 1990 with a reduced majority. END START The elections were a major test for Mahathir's government, since for the first time the UMNO-dominated coalition faced a cohesive, multiracial coalition of opposition parties. END START The opposition, grouped into an informal electoral alliance, the Gagasan Rakyat (People's Might), was led by one-time Mahathir ally Razaleigh Hamzah, leader of the UMNO offshoot Semangat" 46. END START The loose alliance also included the predominantly Chinese DAP and the PAS. END START The PBS, a BN component since 1986, switched its allegiance to the opposition a matter of days before the election. END START In the event the opposition's share of the seats increased from 37 to 53, but Semangat" 46 won only eight seats, compared with the 12 it had held before the election. END START Elections were also held to all 11 peninsular state assemblies; the BN formed governments in all the states except Kelantan where the APU coalition won all 39 seats. END START Following his success at the elections Mahathir was unanimously re-elected UMNO president at the party's general assembly in November-December. END START The assembly was the first to be held since 1987 when Mahathir narrowly survived a leadership challenge from Razaleigh, a contest which subsequently led to a split within UMNO. END START In February 1991 Mahathir was forced to reshuffle his Cabinet after the Finance Minister, Daim Zainuddin, resigned from politics. END START Daim was replaced by Anwar Ibrahim, who was widely regarded as Mahathir's political heir. END START END START Events in Sabah END START END START END START In July 1990 the then BN-affiliated PBS, led by Kitangan, won a clear majority of seats in elections to the Sabah State Assembly. END START The only other party to win any seats was the predominantly Moslem USNO, another BN member and the chief opponent to the PBS in the Sabah Assembly. END START After the elections charges were levelled that the federal government had intervened secretly on behalf of USNO in an attempt to undermine Kitangan. END START Shortly before the elections the federal government had released details of an alleged plot to take Sabah out of the Federation. END START Kitangan denied that any such plot existed, but four people, including one of his close associates, were placed in detention under the Internal Security Act. END START Relations between the state government and the federal government worsened in October when Kitangan pulled the PBS out of the BN only five days before the general election. END START In what was widely regarded as a politically motivated action Kitangan was arrested in January 1991 and charged with corruption. END START He was released on bail but other members of his staff, including his brother Jeffrey Kitangan, were detained under the National Security Act under suspicion of harbouring anti-federalist designs. END START In May Jeffrey Kitangan was again arrested on charges of involvement in a plot to pull Sabah out of Malaysia. END START That month UMNO won a seat in the Sabah state assembly for the first time, defeating the PBS in a by-election. END START END START Budget and economy END START END START END START According to the government's economic report for 1990, the economy registered a 9.4 per cent growth in gross domestic product (GDP) as compared with 8.8 per cent in 1989. END START Private investment and exports grew, while unemployment continued to fall. END START The only negative aspect highlighted by the report was an increased deficit in the current account of the balance of payments; however the overall balance of payments was expected to remain positive because of large capital inflows. END START The government predicted a growth rate of 7.8 per cent in 1991. END START END START END START In June 1991 Mahathir announced details of a national policy initiative to replace the New Economic Policy (NEP) which had operated from 1971 to 1990. END START The so-called New Development Policy (NDP) was devised to provide a theoretical framework for the Second Outline Perspective Plan (OPP2) for 1991-2000, the first phase of Mahathir's plan to build Malaysia into a fully developed state by 2020. END START In July Mahathir revealed details of the Sixth Malaysia Plan (SMP), the first of the decade's two more detailed economic plans [for details of NDP, OPP2 and SMP see pp. 38100; 38293; 38344]. END START 1990 1991 Total revenue 27,219 30,246 Tax revenue 19,835 21,776 Indirect taxes 10,042 10,337 Non-tax revenue 7,384 8,470 Total expenditure 25,993 29,040 Defence 2,288 2,500 Education 4,809 5,685 Health 1,335 1,467 Agricultural and rural development 1,012 1,118 General administration 2,516 2,828 Other purposes 14,033 15,442 END START END START END START 1990 and 1991 budgets (million ringgits) END START END START END START END START END START ASIA — PACIFIC END START END START END START MALDIVES END START END START END START Area: 298 sq km. END START Population: 214,139 (1990 census). END START Capital: Male. END START Language: Dhivehi (Maldivian). END START Religion: Islam (Sunni majority). END START Armed forces: 1,500 (1990). END START Currency: rufiyaa (US$1.00=Rf10.1634 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; ICO; NAM; SAARC. END START END START POLITICAL SYSTEM END START END START END START The Republic of Maldives, under British protection with internal self-government since 1887, first became fully independent as a sultanate outside the Commonwealth in 1965. END START It became a republic for a second time in 1968 and a full member of the Commonwealth in 1985. END START It has an executive President elected for a five-year term by universal adult suffrage, a Cabinet appointed and presided over by the President. END START There is a 48-member Citizens' Assembly (Majlis), 40 of whose members are elected for a five-year term; the remaining eight are appointed by the President. END START END START Main government leaders END START END START END START President: Maumoun Abdul Gayoom (also Commander-in-Chief of the Armed Forces and Minister of Defence, National Security and Finance). END START END START END START Other principal ministers: Fathulla Jameel (Foreign Affairs); Ahmed Mujuthaba (Trade and Industries); Umar Zahir (Home Affairs; Sports); Abbas Ibrahim (Fisheries and Agriculture). END START END START Cabinet changes in 1990-91 END START END START END START President Gayoom carried out a Cabinet reshuffle on May 30, 1990. END START Mujuthaba, hitherto Minister of Tourism, replaced Illyas Ibrahim (who had fled the country — see below) as Minister of Trade and Industry. END START Ismail Shafeeu was appointed as the new Minister of Tourism. END START Abbas Ibrahim (Illyas Ibrahim's brother and Gayoom's brother-in-law) was moved to Agriculture and Fisheries from Transport and Shipping, the latter post remaining vacant. END START Gayoom's brother, Abdulla Hameed changed portfolio from Atolls Administration to Education. END START END START Ruling party END START END START END START There are no political parties. END START END START Elections END START END START END START Gayoom was re-elected President for a third term in 1988 [see p. 36350]. END START Elections to the Majlis were held on Nov. 24, 1989. END START END START 1990/91 OVERVIEW END START END START END START The major political event of 1990 occurred in May when Illyas Ibrahim, Minister of Trade and Industry, Deputy Defence Minister and head of the National Security Service, fled the country. END START Ibrahim was widely regarded as the second most powerful man in the Maldives, after his brother-in-law, President Gayoom. END START Accusations of corruption had been levelled against Ibrahim for a number of years, and in May President Gayoom yielded to demands that the State Trading Organization (STO), which was under Ibrahim's control, be investigated for evidence of corruption. END START At the end of the month, and before the investigation began, Ibrahim went first to Sri Lanka and then to Europe. END START In August he returned to the Maldives, saying that he was willing to answer questions about the affairs of the STO. END START END START END START In late July 1990 President Gayoom announced that he had pardoned Ibrahim Nasir, his predecessor as President, who had fled the country in 1978 and had subsequently been charged with corruption. END START END START Economic indicators END START END START END START Government expenditure (1989) US$71,000,000 END START END START END START Government revenue (1989) US$45,000,000 END START END START END START Current-account balance (1990 forecast) US$3,600,000 END START END START END START Merchandise exports (1988) US$44,600,000 END START END START END START Merchandise imports (1988) US$94,500,000 END START END START END START Tourism receipts (1988) US$37,800,000 END START END START END START Source: Far Eastern Economic Review Yearbook, 1991. END START END START Foreign Relations END START END START END START The Maldives signed two economic agreements with China on Feb. 20. END START Under the terms of the agreements China would provide the Maldives with an interest-free loan of 5,000,000 yuan (US$1,100,000) and a grant of 5,000,000 yuan for implementing projects during the period 1990-95. END START President Gayoom, accompanied by Foreign Minister Jameel, visited India in mid-March 1990 and in January 1991. END START END START END START END START END START ASIA — PACIFIC END START END START END START MONGOLIA END START END START END START Area: 1,565,000 sq km. END START Population: 2,200,000 (1990 UNFPA est.). END START Capital: Ulan Bator. END START Languages: Khalkha Mongolian; Kazakh. END START Religion: no state religion; Buddhist Lamaism and Shamanism; 4% Moslem. END START Armed forces: 21,500 (1990). END START Currency: tugrik (US$1.00=41.952 tugriks as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB, NAM. END START END START POLITICAL SYSTEM END START END START END START The People's Republic of Mongolia has been a multiparty democracy since July 1990. END START The bicameral legislature comprises a parliament, the 53-seat State Little Hural, which deals with economic matters and government, and an upper house, the 430-member People's Great Hural, responsible for fundamental issues in domestic and foreign policy. END START The Great Hural is elected nationally and in turn elects the 50 members of the Little Hural where parties are represented in proportion to the election results. END START Three-quarters of the Little Hural deputies must also be members of the Great Hural. END START The President, who is head of state, is elected by the Great Hural. END START A new constitution is under discussion, proposals for which were made in June 1991 [see p. 38290]. END START END START Main government leaders END START END START END START President: Punsalmaagiyn Ochirbat. END START END START END START Prime Minister: Dashiyn Byambasuren. END START END START END START Other principal ministers: Radnaasumbereliyn Gonchigdorj (Vice-President; Chair of Little Hural); Davaadorjiyn Ganbold (Vice-Prime Minister); Tserenpilyn Gombosuren (Foreign Relations). END START END START Changes to Council of Ministers to November 1991 END START END START END START Seven ministries and three state committees were abolished (some being then reorganized) in April 1990 [see p. 37374]. END START Choyjamtsyn Badamhaamb was appointed Minister of Labour in the newly created ministry in August [see p. 37656]. END START Byambasuren was on Sept. 11 elected Prime Minister — a post which replaced that of Chair of the Council of Ministers hitherto held by Sharavyn Gungaadorj [see p. 37713]. END START The full composition of the Cabinet, replacing the Council of Ministers, was finally confirmed on Nov. 12 [see p. 37777]. END START END START Ruling parties END START END START END START The Mongolian People's Revolutionary Party (MPRP, Budragchaagyn Dash-Yondon l.) in coalition with the Mongolian Democratic Party (MDP, Erdenijn Bat-Uul l.), the Mongolian National Progress Party (MNPP, Dagvasurengiyn Ganbold l.); and the Mongolian Social Democratic Party (MSDP, Radnaasumbereliyn Batbayar l.). END START END START Other parties END START END START END START Mongolian Revolutionary Youth League (pro-MPRP); Mongolian Party of Free Labour (MPFL, Hoovdzayn Maam l.); END START Mongolian Party of Greens (MPG, Davaagiyn Basanjorj l.); END START Mongolian Religious Democratic Party (MRDP, Tserengiyn Bayarsuren l.); END START Party of Mongolian Herdsmen and Farmers (PMHF, unregistered). END START END START Elections END START END START END START Following political reforms in May 1990 which abolished the leading role of the MPRP, multiparty elections were held for the first time in July 1990, to the Little and Great Hurals, and to local Hurals in the 18 provinces and three municipalities [see pp. 37609-10; p. 37656]. END START In the Great Hural, the MPRP held 357 seats, the MDP 16, the MNPP six and the MSDP four; there were 39 members without party affiliations. END START In the Little Hural the MPRP held 31 seats, the MDP 13, the MNPP three and the MSDP three. END START END START 1990/91 OVERVIEW END START END START END START After the July 1990 elections the state structure was changed to re-establish a standing parliament (the Little Hural had been abolished in 1950). END START On Sept. 30 Ochirbat was elected as the country's first President [see p. 37713], and the Council of Ministers was replaced with a 15-member all-party Cabinet, confirmed in November [see p. 37777]. END START On Sept. 29 President Ochirbat appointed two advisory institutions: a 23-member Civil Council, led by former Prime Minister, Sharavyn Gungaadorj, and a 24-member Scholarly Council, led by an economist, Budsuren Tumen [see p. 37778]. END START END START END START After the elections the MPRP lost much of its remaining influence. END START Privileges granted to senior party members had been removed in June 1990 and its state subsidy removed in July. END START The opposition umbrella organization, the Mongolian Democratic Union (MDU), established links with the parties in eastern Europe which had forced political change there (such as Poland's Solidarity). END START Membership of political parties was banned for senior state officials in August 1991, which effectively removed much of the influence of the MPRP [see p. 38437]. END START END START END START Attitudes independent of the Soviet Union were expressed by the encouragement during 1990-91 of Mongolian culture. END START On June 4, 1990, it was announced that the vertical script would be reintroduced in schools, alongside the Cyrillic script which had been introduced in 1946. END START Streets in Ulan Bator were renamed to commemorate Mongolian rather than Soviet history and heroes. END START A decree signed on Dec. 23 removed religious affairs from government jurisdiction and promised government help for the repair of some monasteries, of which only four had remained after the purges of monks in the 1930s and 1940s. END START END START END START The reorganization of the armed forces, which began in 1989, was reported to have been completed in August 1991. END START Troop numbers had been reduced to 1986 levels, and there would be no recruitment in 1991. END START END START END START The crime rate was reported on July 6, 1990, to have risen by 11.9 per cent over the previous year, and on Oct. 25, 1991, to have risen by 10.9 per cent in the first nine months of 1991 over the same period in 1990. END START END START Economy END START END START END START Industrial output fell by 3.9 per cent in the first half of 1991, compared with the same period in 1990 [for economic performance figures for 1990 see p. 37960]. END START National revenue was down by 35.1 per cent and expenditure rose by 33.1 per cent. END START Foreign trade fell by 62.9 per cent to US$328,000,000. END START The start of Mongolia's move to a market economy was marked in January 1991 by partial freeing of prices and doubling of wages and benefits. END START The 1991 budget was cut in July by 30 per cent [see p. 38341]. END START Legislation on privatization was passed in May [see p. 38190], but by late 1991 it was clear that large-scale foreign assistance would be needed to prevent hardship as Mongolia attempted to develop a market economy. END START Rationing of basic foodstuffs was introduced in January 1991 [see p. 37960] and rationing of meat in May [see p. 38190]. END START END START END START In 1990, trade with Asia and the West accounted for about 5 per cent (approximately US$120,000,000) of Mongolia's total trade. END START Trade with the Soviet Union reached US$2,000 million, but was shrinking because of the withdrawal of Soviet aid and the transfer of trade to a hard-currency basis. END START Sino-Mongolian trade rose, however, in January-March 1991 by 43 per cent as compared with the same period in 1990 to reach US$10,000,000. END START Chinese port facilities near Tianjin were made available to Mongolia after a visit by China's President, Yang Shangkun, in August 1991. END START This would relieve pressure on the Soviet port of Nakhodka, the most frequently used route for Mongolian exports. END START There were negotiations with China to supply oil to Mongolia to supplement the reduced Soviet deliveries. END START In 1992, following legislation passed in February 1991 to allow foreign companies to exploit Mongolian oil reserves [see p. 38009], 10 oil prospecting concessions of 40,000 sq km each would be sold to foreign companies. END START Foreigners were allowed 100 per cent ownership of enterprises and certain tax exemptions under a foreign investment law passed in 1990, and by September 1991 43 joint enterprises had been set up. END START END START END START Unemployment was officially put at 22,000 in March 1991, but could be as high as 100,000 (14 per cent of the workforce) according to unofficial sources. END START END START Foreign relations END START END START END START During 1990-91 Mongolia continued to expand contacts with the industrialized world as well as to develop its relationship with China. END START END START END START United States Secretary of State James Baker paid a visit (curtailed by Iraq's invasion of Kuwait which began the Gulf crisis) to Mongolia in August 1990 [see p. 37656], and in January 1991 Ochirbat became the first Mongolian head of state to visit the USA [see p. 37960]. END START This exchange resulted in the signing of trade agreements and in US aid to Mongolia. END START Relations with Japan were also extended, with Toshiki Kaifu" s visit in August 1991, the first by a Japanese Prime Minister [see p. 38396], and a conference on aid to Mongolia held in Japan in September [see p. 38437]. END START In March 1991 30 Mongolian government officials visited South Korea to study the economy and discuss co-operation. END START Ochirbat's visit to Seoul in October resulted in a South Korean soft loan to Mongolia of US$10,000,000. END START On Oct. 4, when Mongolia established formal diplomatic relations with Israel, it was announced that Mongolia had diplomatic ties with some 108 countries. END START Ochirbat visited China in May 1990 [see p. 37454], and co-operation agreements in the educational and legal fields were signed on Nov. 26 and on July 4, 1991; an agreement was signed on June 24 to increase to eight the border crossings between China and Mongolia from the hitherto sole crossing at Erenhot in the Chinese province of Inner Mongolia. END START The first visit of a delegation from the Chinese PLA (People's Liberation Army) since 1961 took place in September 1991, and in a further sign of improving relations, Defence Minister Lt.-Gen. END START Shagalyn Jadambaa visited China in April 1991. END START However, Mongolian students staged a protest outside the Chinese embassy in Ulan Bator on June 4, 1990, to commemorate the crushing of the Chinese democracy movement in June 1989 [see pp. 36720-22], and there were further student protests in October over the issue of political prisoners in Inner Mongolia. END START END START END START Contacts with China increased in 1990-91. END START END START END START On Sept. 4, 1991, Mongolia became a member of the Non-aligned Movement [see p. 38458]. END START Kyodo News Agency had reported Mongolia as preparing to shift to a policy of armed neutrality. END START END START END START The Soviet Union and Mongolia agreed in November 1990 to review all treaties signed between them since 1921, since many were now obsolete. END START The difficulties in the relationship with the Soviet Union centred on repayment of Mongolia's debt, which the Soviet Union claimed stood at 9,700 million roubles, payable in hard currency. END START (All Mongolian-Soviet trade went over to hard currency and world prices from January 1991, following talks in November 1990.) END START It was reported that basic agreement on the settlement of the debt was reached in February 1991 [see p. 38009], with capital repayment postponed for 10 years, but with interest payments in 1991-95. END START END START END START Most Soviet advisers (who had totalled 40,000) left Ulan Bator during 1991. END START The second stage of Soviet troop withdrawals began in May 1990 [see p. 37454]; by June, 82 per cent of the 27,000 concerned were reported to have left (more than scheduled), and the remainder would leave by 1992. END START END START END START END START END START ASIA — PACIFIC END START END START END START MYANMA (BURMA) END START END START END START Area: 676,552 sq km. END START Population: 41,700,000 (1990 UNFPA est.). END START Capital: Yangon (Rangoon). END START Languages: Burmese (official); tribal languages. END START Religion: Buddhism (85%); Animism, Islam, Hinduism and Christianity. END START Armed forces: 230,000 (1990). END START Currency: kyat (US1.00=6.0398 kyats as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB. END START END START POLITICAL SYSTEM END START END START END START Following the military coup of September 1988 all state organs and institutions were abolished by the ruling junta, the State Law and Order Restoration Council (SLORC), and the country was placed under martial law. END START A Constituent Assembly was elected in May 1990 but the military authorities have effectively prevented it from convening. END START END START Main government leaders END START END START END START Gen. Saw Maung has served as Chair of the ruling State Law and Order Restoration Council since September 1988. END START He also holds the posts of Prime Minister and Defence Minister. END START Other powerful political personalities include Ne Win, the ageing" strongman" who stepped down from all his posts in 1988, and Ne Win's protegé, Brig. -Gen. END START Khin Nyunt, head of the powerful Directorate of Defence Services Intelligence and First Secretary of SLORC. END START END START END START Prime Minister: Gen. Saw Maung. END START END START END START Other principal ministers: U Ohn Gyaw (Foreign Affairs); Brig. -Gen David Abel (Trade; Planning and Finance); Maj.-Gen. END START Phone Myint (Home and Religious Affairs; Information and Culture). END START END START Cabinet changes January 1990-July 1991 END START END START END START No cabinet changes. END START END START Ruling party END START END START END START No ruling party. END START END START Political parties END START END START END START Following the military coup in September 1988 SLORC announced that political parties would be allowed to function. END START By early 1989 over 230 parties had registered and a total of 93 parties contested the May 1990 elections. END START END START END START The main opposition party is the National League for Democracy (U Aung Shwe ch., U Lwin gen. sec. — see below for removal of previous leaders) which won 392 out of 485 seats in the May 1990 elections. END START Other parties which won seats in the election (number of seats in parenthesis) were: Shan Nationalities League for Democracy (23); Rakhine Democracy League (11); National Unity Party (10 — formerly the ruling Burma Socialist Programme Party, U Tha Kyaw ch., U Tun Yi gen. sec., U Than Tin gen. sec.); END START Mon National Democratic Front (5); National Democratic Party for Human Rights (4); Chin National League for Democracy (3); Kachin State National Congress for Democracy (3); Party for National Democracy (3); United Paoh National Organization (3). END START END START END START In the aftermath of the elections the SLORC de-registered a number of parties, including the Party for National Democracy (Sein Win l.); the Anti-Fascist People's Freedom League (Bo Kyaw Nyunt ch., Cho Cho Kyaw Nyein gen. sec.); the League for Democracy and Peace (U Nu l., U Thein Sein gen. sec.); the United League of Democratic Parties; the National Politics Front for Youth; and the Patriotic Democratic Youth front. END START END START Elections END START END START END START Elections to a Constituent Assembly in May 1990 resulted in victory for the opposition National League for Democracy. END START The SLORC subsequently prevented the Assembly from convening. END START END START Guerrilla groups END START END START END START The National Democratic Front (NDF, Saw Maw Reh pres., Nor Mong Onn vice-pres., Tu Ja sec. -gen.) is the 11-member umbrella group co-ordinating the rebel effort for national self-determination. END START In 1988 the NDF created the Democratic Alliance of Burma (DAB) which incorporated a further 11 dissident groups, including students, monks and expatriates. END START END START END START The NDF is divided into three regional commands. END START END START END START Southern command: (i) Arakan Liberation Party (ALP, Maj. Khaing Ye Khaing ch., military wing — Arakan Liberation Army (ALA) Maj. Khaing Ye Khaing, c/s.); (ii) Karen National Union (KNU, Ba Thin sec. -gen.; military wing — Karen National Liberation Army (KNLA) Maj.-Gen. END START Bo Mya, pres. and c/s.); (iii) New Mon State Party (NMSP, Nai Nol Lar pres.; military wing — Mon National Liberation Army (MNLA) Nai Nol Lar c/s.); (iv) Lahu National Army. END START END START END START Central command: (i) Karenni National Progressive Party (KNPP, Bya Reh ch.; military wing — Karenni Revolutionary Army (KRA) Brig. -Gen. END START Bee Htoo c/s); (ii) Pa-O National Organization (PNO), Aung Kham Hti ch., military wing — Pa-O National Army (PNA) Col. Htoon Yi c/s.); (iii) Wa National Organization (WNO, Ai Chau Hseu ch.; military wing — Wa National Army (WNA), Ai Chau Hseu c/s.); (iv) Chin National Front (CNF). END START END START END START Northern command: (i) Kachin Independence Organization (KIO, Brang Seng ch.; military wing — Kachin Independence Army (KIA), Maj.-Gen. END START Zau Mai, c/s.); (ii) Shan State Progress Party (SSPP, Col. Sai Lak gen. sec., military wing — Shan State Army (SSA), Lt.-Col. Gaw Lin Da c/s.); (iii) Palaung State Liberation Organization (PSLO, Khrus Sangai ch.; military wing — Palaung State Liberation Army (PSLA), Maj. Ai Mong c/s.). END START END START END START The principal guerrilla group outside the NDF is the Communist Party of Burma (CPB, Ba Thein Tin ch.). END START The military strength of the CPB was seriously diminished in 1989 following a mutiny by Wa tribesmen, who constituted an estimated 80 per cent of the CPB's membership. END START The party's leaders fled into exile in China, while the leaders of the mutiny entered into discussions with the government. END START END START END START Various private armies exist, mainly funded by illegal drug production and trafficking, most notably the Mong Tai Army (formerly the Shan United Army) led by" narcotics warlord" Khun Sa (Chang Shee Fu). END START END START 1990/91 OVERVIEW END START END START END START SLORC, the military junta which had assumed power at the height of 1988's political unrest, allowed a general election to take place in May 1990 for a Constituent Assembly which would be charged with drafting a new constitution. END START Before the election commentators predicted that the military would interfere in the polling process to ensure victory for the National Unity Party (NUP), the descendant of the former ruling Burma Socialist Programme Party. END START In the event, the election was considered to have been free and orderly because the party most openly opposed to military rule, the National League for Democracy (NLD), won some 80 per cent of seats in the new Assembly. END START Despite the NLD's overwhelming victory, the military refused to sanction a transfer of power to a civilian government. END START END START END START Throughout 1990 and the first half of 1991 the SLORC had imposed a series of legal restrictions on the NLD and other opponents which effectively frustrated their political ambitions. END START Decree 1/90, issued in July 1990, formally stated that the SLORC would continue as the de facto government until a new constitution (to be drawn up by the SLORC) was submitted to a referendum. END START In late 1990 the SLORC initiated a major crackdown against opposition activities in order to force all parties to pledge allegiance to the decree [see p. 37857]. END START In April 1991 Lt.-Gen. END START Than Shwe, the SLORC Vice-Chair, officially announced that the SLORC would not transfer power to the Assembly elected in May 1990, on the grounds that the parties involved were" unfit to rule". END START Also in April 1991 the two main opposition leaders, Aung San Suu Kyi and Gen. (retd) Tin U (respectively general secretary and chair of the NLD) were removed from the party; the two had been detained by the military since mid-1989. END START As of July 1991 over 80 Assembly members, mostly from the NLD, had died, been imprisoned or had fled the country. END START END START END START The SLORC frequently resorted to violence and terror to subdue its opponents. END START In August 1990 two Buddhist monks were shot dead by soldiers at an anti-government demonstration in Mandalay. END START In September soldiers opened fire on political prisoners who had gone on hunger strike in Insein prison (Yangon); four were killed and many others were injured. END START Nevertheless, protest continued. END START A" parallel government" (the National Coalition Government of the Union of Burma), formed on the border with Thailand in December contained members elected to the Constituent Assembly, representatives of ethnic rebel groups, student dissidents and monks [see pp. 37655; 37711; 37915-16]. END START END START Security END START END START END START Government forces made some progress during 1990 in their long struggle against ethnic insurgents operating on the country's periphery. END START The NDF's southern command suffered serious defeats, with the KNLA and the MNLA both being dislodged from their heartlands during dry-season offensives. END START In the north the KIA remained effective, but previously CPB-controlled areas along the border with China came under government control. END START END START END START In January 1991 the state radio reported serious clashes between government troops and guerrillas of the KNLA, MNLA and KIA [see p. 37963]. END START In April government forces used fighter bombers to attack guerrillas along the Thai border after rebels had launched an attack on troops based in Phaw Hta [see p. 38151]. END START That month the government claimed to have signed a peace agreement with the PNO (of the NDF's central command). END START END START Economy END START END START END START Official provisional statistics registered a 7.4 per cent growth in gross domestic product (GDP) in 1989/90, compared with a negative growth rate of 11.4 per cent in fiscal 1988/89. END START In late 1990 the country's foreign debt was estimated at over US$5,000 million. END START The revised budget for 1989/90 showed a deficit of 1,367 million kyats, compared with the planned surplus of 7,000,000 kyats. END START The planned 1990/91 deficit was 4,624 million kyats, but commentators estimated that, with little foreign aid to offset increased spending, it could amount to over 15,000 million kyats, or some 14 per cent of GDP. END START Inflation was a serious problem during 1990, reaching as high as 70 per cent according to some estimates. END START A number of factors contributed to the high inflation rate, including increased government expenditure, the disappointing performance of the private sector and the poor state of the country's infrastructure. END START END START END START The SLORC did manage to attract some foreign investment during 1990, mainly in the oil and gas industries and in timber and mineral extraction. END START However, foreign investment was seriously impeded by the unrealistic exchange rate; the official rate remained at US$1.00=6.5 kyats throughout the year, while the black market rate fluctuated between 50 and 75 kyats to the dollar. END START The absence of foreign banks also hampered foreign investment. END START In an attempt to remedy this the SLORC introduced new banking laws in July 1990 which allowed foreign banks to open branches in Myanma. END START END START Foreign relations END START END START END START The SLORC's refusal to hand over power to the NLD in May 1990 was harshly criticized by many states, including the United States, Japan and the members of the European Communities. END START As a result, the country received little in the way of bilateral aid from these countries and various forms of trade sanction were imposed. END START However, relations with China remained close, as did those with neighbouring Thailand and with BO>Singapore. END START In late 1990 Myanma reportedly agreed to purchase arms worth some US$1,000 million from China. END START India, Myanma's other large neighbour, maintained a critical attitude towards the SLORC. END START END START END START END START END START ASIA — PACIFIC END START END START END START NEPAL END START END START END START Area: 147,181 sq km. END START Population: 19,100,000 (1990 UNFPA est.). END START Capital: Kathmandu. END START Languages: Nepali (official); Maithir and Bhojpuri. END START Religion: Hinduism (majority); Buddhism and Islam. END START Armed forces: 35,000 (1990). END START Currency: nepalese rupee (US$1.00=Nrs42.7512 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; NAM; SAARC. END START END START POLITICAL SYSTEM END START END START END START Under the provisions of the 1990 Constitution, Nepal is a constitutional monarchy, with a bicameral legislature, comprising a 205-member House of Representatives (Pratinidhi Sabha), elected on the basis of adult franchise, and a 60-member National Council (Rashtriya Sabha), 10 of whom are nominees of the King, 35 (including three women) are elected by the House of Representatives, and 15 are elected by an electoral college. END START The King is described in the Constitution as" the symbol of Nepalese nationality and of the unity of the people of Nepal". END START END START Main government leaders END START END START END START Head of state: King Birendra Bir Bikram Shah Deva succeeded to the throne in 1972. END START END START END START Prime Minister: Girja Prasad Koirala (also Minister of Defence, Foreign Affairs and Royal Palace Affairs). END START END START END START Other principal ministers: Mahesh Acharya (Finance); Sher Bahadur Deupan (Home Affairs); Gopal Man Shrestha (Commerce); Tara Nath Bhatt (Law and Justice; Parliamentary Affairs). END START END START Cabinet changes in 1990-91 END START END START END START Numerous Cabinet changes occurred at the height of the political unrest in Nepal in late March and April 1990 [see p. 37362]. END START On April 6 King Birendra dismissed the Prime Minister, Marich Man Singh Shrestha, and appointed in his place Lokendra Bahadur Chand, who resigned on April 16 to be replaced by the Nepali Congress Party president, Krishna Prasad Bhattarai; a new government was sworn in three days later. END START After the general election of May 12, 1991, Girija Prasad Koirala was sworn in as the new Prime Minister on May 26 and three days later he appointed a new Cabinet [see p. 38193]. END START In early July Mahesh Acharya and Ram Badan Yadav were appointed as Minister of Finance and Minister of Health respectively [see p. 38339]. END START END START Ruling party END START END START END START Nepali Congress Party (Krishna Prasad Bhattarai pres., Girija Prasad Koirala gen. sec., Ganesh Man Singh l.). END START END START Other parties END START END START END START King Birendra lifted the ban on political parties in April 1990. END START The Constitution promulgated in November 1990 specifies that no law may be adopted which bans, or imposes restrictions on, political parties. END START The major parties include: the United Nepal Communist Party (Man Mohan Adhikari l.) formed in January 1991 by the merger of the Marxist-Leninist and Marxist factions of the Nepal Communist Party; the United People's Front (Tanka Prasad Acharya, Dilli Raman Regmi ls.) formed in February 1991 by the merger of the Nepal Praja Parishad and the Nepali National Congress; the Nepali Sadbhavana Parishad Party (Gajendra Narayan Singh pres.); the National Democratic Party (Chand) (Lokendra Bahadur Chand l.); the National Democratic Party (Thapa) (Surya Bahadur Thapa l.); the United Left Front (Sahana Pradhan l.); the National People's Liberation Forum (M. S. Thapa ch.). END START END START Elections END START END START END START Elections to the House of Representatives and the National Council were held in May and June 1991 respectively [see pp. 38193; 38339]. END START END START 1990/91 OVERVIEW END START END START END START During 1990 Nepal was transformed from an absolute monarchy into a multiparty democracy. END START In February the combined opposition parties (the so-called Movement for the Restoration of Democracy, MRD) launched a peaceful" stir" aimed at restoring full democracy, organizing peaceful strikes and demonstrations. END START The government responded by carrying out mass arrests of pro-democracy activists, and by the end of February violent confrontations were taking place between demonstrators and the security forces. END START The protests continued and in early April, in an effort to contain the mounting unrest, King Birendra dismissed the Prime Minister, Marich Man Singh Shrestha, and appointed in his place the moderate Lokendra Bahadur Chand. END START However, the situation worsened considerably the next day when as many as 200,000 protestors descended on the royal palace in Kathmandu and troops opened fire on them, killing at least 50 people. END START The killings exacerbated the discontent and the King was forced to act; he quickly lifted the ban on political parties, dissolved parliament and met the MRD leaders for talks. END START In the middle of the month he appointed a new multiparty Cabinet headed by Nepali Congress Party president Krishna Prasad Bhattarai. END START The following month the King formally delegated the powers of parliament to the Bhattarai Cabinet and announce a general amnesty for all political prisoners. END START END START END START In late May a committee was established to prepare a new constitution. END START The King approved the committee's draft in September, but the following month he submitted a number of counter-proposals, prompting large numbers of demonstrators to take to the streets of Kathmandu. END START In early November the King formally proclaimed a new Constitution to replace that of 1962 which had enshrined the absolute powers of the monarchy and the multitiered system of panchayat representation. END START The new Constitution guaranteed (i) parliamentary government; (ii) a multiparty system; (iii) a constitutional monarchy; (iv) an independent judiciary; and (v) freedom of expression, the press, peaceful assembly and association. END START END START END START The first multiparty general election since 1959 was held on May 12, 1991, and resulted in a victory for the Nepali Congress Party which went on to form a new government under Girija Prasad Koirala. END START Bhattarai, the incumbent Prime Minister, had lost his seat in the election. END START Elections to the National Council, the upper house, were held in June 1991. END START END START Economy END START END START END START Finance Minister Mahesh Acharya presented the 1991/92 budget to the House of Representatives on July 11, 1991. END START Of total expenditure of NRs26,600 million (approximately US$620,000,000), NRs16,890 million (US$395,000,000) was allocated for development, most of which was earmarked for rural areas. END START Approximately 70 per cent of development expenditure was to be financed from foreign assistance and loans. END START Acharya estimated that the budget would leave a deficit of NRs2,080 million (US$49,000,000), to be covered by domestic borrowing and the sale of treasury bills. END START During his budget speech Acharya also announced plans to privatize much of the business sector. END START END START END START Nepal devalued its rupee by 20.96 per cent against the US dollar in early July, in line with a devaluation of the Indian rupee [see p. 38337]. END START END START Foreign relations END START END START END START Nepal's relations with India improved greatly during 1990. END START In June India finally agreed to restore trade and transit concessions which in March 1989 it had withdrawn, partly in protest at Nepal's decision to purchase Chinese weaponry. END START A communiqué restoring trade relations and re-opening transit points was signed by Prime Minister Bhattarai during his visit to India in June. END START Chandra Shekhar visited Nepal in February 1991, the first Indian Prime Minister to do so since 1977. END START END START END START END START END START ASIA — PACIFIC END START END START END START PAKISTAN END START END START END START Area: 803,943 sq km. END START Population: 122,600,000 (1990 UNFPA est.). END START Capital: Islamabad. END START Languages: Urdu (national); Punjabi, Sindhi, Pushto, English. END START Religion: Islam (state religion — 97%); Hinduism and Christianity. END START Armed forces: 550,000 (1990). END START Currency: Pakistani rupee (US$1.00=Rs24.4266 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB, ICO, NAM, SAARC. END START END START POLITICAL SYSTEM END START END START END START The Islamic Republic of Pakistan was proclaimed in March 1956, having been a British dominion since the partition of the Indian Empire in August 1947. END START Military governments have been in power almost continuously since independence, the most recent headed by General Zia ul-Haq who assumed control in July 1977. END START After Zia was killed in an air crash on Aug. 17, 1988, the acting President, Ghulam Ishaq Khan, ordered parliamentary elections to be held on Nov. 16. END START On Dec. 2 Benazir Bhutto, leader of the Pakistan People's Party which won the largest number of seats in the National Assembly, was appointed Prime Minister of a new civilian government. END START END START END START On Aug. 6, 1990, the President dismissed the Bhutto government and ordered fresh elections to be held on Oct. 24. END START An interim government headed by Ghulam Mustapha Jatoi was replaced on Nov. 10 by an elected government headed by Mian Mohammad Nawaz Sharif, leader of the Islamic Democratic Alliance, which won an absolute majority of seats in the National Assembly. END START END START END START The present Constitution promulgated in April 1973 provides for a parliamentary system and a bicameral federal legislature consisting of a 217-member lower house (the National Assembly) elected every five years and an 87-member upper house (the Senate) elected every six years, with one-third of its members relinquishing their seats every two years. END START The President, who is head of state, is elected by the federal legislature for a (renewable) term of five years. END START END START Main government leaders END START END START END START President: Ghulam Ishaq Khan. END START END START END START Prime Minister: Mian Mohammad Nawaz Sharif, also Minister of Foreign Affairs. END START END START END START Other principal ministers: Sayed Ghaus Ali Shah (Defence); Mir Hazar Khan Bijrani (Defence Production); Choudhry Shujat Hussain (Interior); Sartaj Aziz (Finance and Economic Affairs); Sheikh Rashid Ahmad (Industries and Culture). END START END START Changes to Council of Ministers to June 1991 END START END START END START February 1990: resignation of Sind Chief Minister [see p. 37246]. END START August: dismissal of Bhutto government and appointment of caretaker government [see pp. 37652-53]. END START November: swearing-in of Sharif government [see p. 37855]. END START February 1991: resignation of Foreign Minister [see p. 38007]. END START March: resignation of Minister for Local Government and other Cabinet changes [see p. 38102]. END START April: assumption of Foreign Affairs responsibilities by secretary-general at Foreign Affairs Ministry [see p. 38153]. END START May: appointment of woman minister [see p. 38194]. END START END START Ruling party END START END START END START The Islami Jumhoori Ittehad (IDA — Islamic Democratic Alliance, Mian Mohammad Nawaz Sharif l.) is a nine-party coalition composed of the Jamaat-e-Islami Pakistan (JIP, Amir Kazi Hussain Ahmad, sec. -gen.); the Jamiat-e-Ulema-i-Pakistan (JUP, Shah Ahmad Noorani pres.); the National People's Party (NPP, Ghulam Mustapha Jatoi, l.; the Pakistan Muslim League (PML, two factions led by Mohammad Khan Junejo and Fida Mohammad Khan); the Islamic Ahle Hadith; the Jamaat-ul Mashaikh; the Hezb-i-Jihad (Murtaza Pooya l.; the Azad Group; and the Nizam-i-Mustafa Group. END START END START Other political parties END START END START END START Pakistan People's Party (PPP — Benazir Bhutto sec. -gen.); END START Mohajir Qaumi Mahaz (MQM — Mohajir (Urdu-speaking migrants) National Movement, Altaf Hussain pres.); END START Awami National Party (ANP — People's National Party, Khan Abdul Wali Khan pres.); END START Jamiat-e-Ulema-Islam (JUI — Society of Islamic Scholars, Fazlur Rahman pres.); END START Jamhoori Watan Party (JWP — Democratic National Party, Mohammad Akbar Bugti l). END START END START Elections END START END START END START Last general election to the National Assembly: October 1990 [see p. 37763]; last election to the Senate: March 1991 [see p. 38102]. END START Presidential elections due by December 1993. END START END START 1990/91 OVERVIEW END START END START END START The government of Prime Minister Benazir Bhutto, already weakened by the withdrawal of the Muhajir Qaumi Mahaz (MQM) [see p. 37043], suffered a serious setback in May 1990 following the outbreak of some of the worst incidents of urban violence in Sind between rival ethnic groups. END START The inability of the PPP — dominated provincial government to handle the crisis led opposition politicians to call for its immediate dismissal and prompted the army to press in June for full emergency powers to check the spiralling communal violence. END START The government's political difficulties were compounded by growing differences with President Khan, who openly criticized its handling of the crisis. END START Reports that the President was increasingly taking the part of some sections of the armed forces led to speculation that a military take-over was imminent. END START END START END START Although the dismissal in August 1990 of the Bhutto government by presidential decree [see pp. 37652-53] did not, as expected, lead to military rule, the event was marked by controversy centring on the President's arbitrary exercise of power [see p. 37764] and on the haste with which criminal proceedings were brought against Bhutto and some of her former ministers. END START END START END START Elections held in October 1990 under the administration of a caretaker civilian government resulted in a landslide victory for the pro-Islamic and right-wing anti-Bhutto coalition — the Islamic Democratic Alliance (IDA) — led by Sharif, the former Chief Minister of the Punjab [see pp. 37763-64]. END START END START END START Among the new government's earliest measures was the introduction in April 1991 of the Sharia bill, which was aimed at the creation of an" Islamic welfare state", passed in May by the National Assembly. END START The bill was reportedly designed to restore the government's Islamic credentials which its critics maintained had been undermined by Pakistan's participation in the Western-dominated multinational force opposing Iraq in the Gulf [see pp. 37639; 37641; 37694]. END START END START END START Strains also emerged in the government's relations with sections of the army which regarded the government's Gulf policy as increasingly subservient to United States and" Zionist" interests. END START END START END START Attempts by the Sharif government to reduce inter-provincial rivalry and tensions between states and central government led in April 1991 to a fresh award for the division of financial resources. END START The scheme, based on each province's population, provided for the centre retaining one-fifth of the total pool, with the remainder being split between the Punjab (57.88 per cent); Sind (23.28 per cent); North-West Frontier Province (13.50 per cent) and Baluchistan (5.30 per cent). END START END START Economy END START END START END START Urban violence, inadequate infrastructure and, at 3.1 per cent a year, the fastest population growth in southern Asia were among the chief obstacles in the way of the Bhutto government's attempts to revitalize the economy. END START Gross domestic product (GDP), which was targeted to expand by 5.8 per cent in the fiscal year ending in June 1990, slowed to around 4.6 per cent because of poor industrial and agricultural production. END START The budgetary deficit, which in January 1990 had been estimated to stand at around Rs55,800 million, widened in June to Rs64,400 million [see p. 37530] largely because of increased defence spending projected in 1990/91 at Rs63,300 million, or approximately 37 per cent of total expenditure [see p. 37530]. END START END START END START Pakistan was badly hit by revenue losses resulting from the Gulf crisis and by the suspension in October of US economic aid [see below; p. 37764]. END START In November 1990 the country's foreign exchange reserves dropped perilously low, although reviving marginally in December to stand at around US$200 million. END START END START END START According to the government's annual economic survey published in May 1991, GDP was expected to grow by 5.6 per cent in the current fiscal year to June 1991, owing to an increase in agricultural production of 5.1 per cent, up from 2.1 per cent a year earlier. END START The survey showed that exports in the current fiscal year grew 22 per cent while imports rose 10 per cent. END START The Gulf crisis was estimated to have cost the economy around US$700 million. END START END START END START Economic reform under the Sharif government consisted primarily of measures aimed at deregulating the economy and introducing a systematic programme of privatization [see p. 38538]. END START The government was also committed to reducing radically the budget deficit by implementing cuts in social spending; defence expenditure, however, is set to increase by almost 11.6 per cent [see p. 38289]. END START END START END START Pakistan's principal trading partners in 1989/90 were: exports to the USA, Japan and the Federal Republic of Germany; imports from the USA, Japan and Kuwait. END START END START Foreign affairs END START END START END START February 1990: deterioration in relations with India [see p. 37246]. END START August: commitment to Gulf multinational force [see pp. 37639; 37641]. END START September: despatch of troops to Gulf multinational force [see p. 37694]. END START June: US-Pakistan talks; economic agreement with Iran [see p. 38289]. END START END START END START Relations with the USA which had generally been amicable under the Bhutto government, underwent a serious crisis in October 1990 following the suspension of aid worth around US$570 million on grounds that Pakistan was engaged in a nuclear weapons programme [see p. 37764]. END START END START END START Despite an intensification of fighting in Kashmir in the first half of 1990 talks with India continued, with the fourth round completed in April 1991. END START END START END START Close relations with China, marked by a large number of defence and economic co-operation agreements, were maintained during 1990-91. END START Sharif visited China on Feb. 26-March 1, 1991. END START END START END START France announced the sale to Pakistan of a nuclear power plant for commercial purposes during a visit by French President Mitterrand on Feb. 18-21, 1990. END START END START END START The first consignment of 32 Mirage jets from Australia arrived in Pakistan on Nov.29, 1990, following negotiations which had begun in late 1988. END START END START END START END START END START ASIA — PACIFIC END START END START END START PHILIPPINES END START END START END START Area: 300,00 sq km. END START Population: 62,400,000 (1990 UNFPA est.). END START Capital: Manila. END START Languages: Pilipino (native national language); Cebuano, Tagalog, Iloco, Ifugao, English, Spanish. END START Religion: Christianity (Roman Catholicism); Islam. END START Armed forces: 108,500 (1990). END START Currency: Philippine peso (US$1.00=P26.2065 as at Sept. 30, 1991). END START END START END START Major international affairs: ADB; APEC; ASEAN. END START END START POLITICAL SYSTEM END START END START END START The Republic of the Philippines became independent in July 1946. END START In 1965 Ferdinand Marcos became President and retained power thereafter through the increasing use of political corruption and coercion. END START In an attempt to rally domestic support and to placate the United States government (upon which his regime was heavily dependent), Marcos agreed to hold a Presidential election in February 1986. END START He was opposed by Corazon Aquino, the widow of the country's most prominent opponent of the Marcos regime until his murder in 1983. END START Although Marcos claimed victory it was generally believed that Aquino had secured a greater number of votes. END START In the face of huge popular demonstrations in favour of Aquino and a growing mutiny within the armed forces, Marcos fled the country on Feb. 25 and Aquino was declared President. END START A new constitution was approved by referendum in February 1987. END START Under its terms legislative authority was vested in a bicameral popularly elected Congress consisting of a 24-member Senate (elected for six years) and a 250-member House of Representatives. END START Executive power is in the hands of a President (directly elected for a single six-year term) and an appointed Cabinet. END START END START Main government leaders END START END START END START President: Corazon Aquino. END START END START END START Other principal ministers: Gen. Renato de Villa (Defence); Jesus Estanislao (Finance); Raul Manglapus (Foreign Affairs). END START END START Cabinet changes to mid-1991 END START END START END START Catalino Macaraig was dismissed as Cabinet Executive Secretary in December 1990 [see p. 37919]; his replacement, Oscar Orbos, resigned in July 1991, as did the Defence Secretary, Gen. Fidel Ramos [see p. 38344]. END START END START Ruling party END START END START END START President Aquino is supported by a loose coalition centred upon the Laban ng Demokratikong Pilipino (LDP, established in 1987, Neptali Gonzales pres., Jose Cojuangco sec. gen.). END START The LDP is itself a coalition comprising the PDP-Laban Party (founded in 1983 from a merger of the Pilipino Democratic Party (PDP) and Laban (Lakas ng Bayan — People's Power Movement), the party led by Aquino's husband prior to his assassination) and the Lakas ng Bansa (People's Struggle). END START END START END START Traditionally, the Aquino presidency has also been supported by those elements of the PDP-Laban Party (Aquilino Pimentel ch.) which chose to remain outside the LDP; and the bulk of the Liberal Party (established in 1946, but split in 1988 when supporters of Kalaw joined the GAD — see below — Jose (Jovito) Salonga l.). END START END START Other main political parties END START END START END START Communist Party of the Philippines — Marxist-Leninist (CPP-ML, split from the pro-Soviet PKP in 1968, Benito Tiamzon ch., Saturnino Ocampo gen. sec.) — the CCP-ML's military wing, the New People's Army (NPA), has been waging a guerrilla war since 1969; Grand Alliance for Democracy (GAD, established in 1987 to co-ordinate the anti-Aquino opposition in the legislative elections, the GAD included the Mindanao Alliance, Nacionalista Party, Social Democratic Party and the Kalaw wing of the Liberal Party, Juan Ponce Enrile pres.); END START Kilusan Bagong Lipunan (KBL — New Society Movement, established in 1978 as the ruling party of former President Marcos, Vicente Mellora sec. gen.); END START Mindanao Alliance (established in 1978, committed to the protection of civil rights and the economic development of Mindanao, Homobono Adaza l.; Nacionalista Party (originally established in 1907, resurrected in 1988 by Aquino's opponents, Salvador Laurel pres., Juan Ponce Enrile sec. gen.); END START National Democratic Front (NDF, ostensibly a wide coalition of leftist groups, but in practice tends to operate as a legal front for the CCP-ML and the NPA, Antonio Zobel ch., Saturnino Ocampo spokesman); Partido Komunista ng Pilipinas (PKP — Communist Party of the Philippines, established in 1930, pro-Soviet, Felicisimo Macapagal pres.); END START Partido ng Bayan (New People's Alliance) established 1986 by Jose Maria Sisson, former head of the illegal CCP-ML, Fidel Agcaoli ch.); END START Union for National Action (UNA, established in 1988 as an opposition coalition, Salvador Laurel l.). END START END START Elections END START END START END START The approval of the constitution by referendum in February 1987 was accepted as a de facto election of Aquino as President [see pp. 35319-20]. END START In a general election on May 11, 1987, candidates endorsed by the President won a decisive majority in both chambers of the new Congress [see pp. 35321-22]. END START END START 1990/91 OVERVIEW END START END START END START Politics END START END START END START Aquino's frustration with the tortuous complexity of Filipino party politics was evidenced by her announcement on June 12, 1990, of the formation of the Kabisig movement, derived from the Tagalog word meaning" arm-in-arm" or" brotherhood" [see p. 37534]. END START The new movement, which was characterized as a non-party coalition, was an attempt to inject new life into her government's programmes by reaching beyond the ruling LDP and its traditional patterns of patronage. END START As such, the move attempted to recapture the populist politics of" People Power" from which Aquino had mobilized so effectively against Marcos. END START END START END START Although Aquino gave assurances that the Kabisig would not be turned into a political party, the leadership of the LDP treated the new movement with great suspicion, believing that it represented an independent vehicle which could be used by Aquino to run her own favoured candidates in the 1992 elections. END START Following an LDP conference, the party leadership announced on Sept. 19 that it planned to break away from the coalition which had backed Aquino. END START The decision, if fully implemented, threatened to split the LDP, many senior members of which had given their approval to, or accepted positions within, the new movement. END START Aquino reiterated her assurances that the movement would not become a political party, and expressed her optimism that an accommodation could be reached between Kabisig and the LDP. END START END START END START In February Aquino became the first President of the Philippines to appear in court as she took the stand as a witness in support of her libel case against a newspaper columnist, Luis Beltran. END START The case arose from Beltran's claim that Aquino had hidden under her bed during a coup attempt. END START Aquino's decision to press the case — and to undergo a ferocious and lengthy cross-examination — was seen by some to have needlessly exposed her already tarnished public image to further damage, whilst others applauded it as further proof of the tenacious courage which she had displayed in opposing Marcos. END START END START END START Increasingly, the key domestic political issue was the forthcoming presidential election of 1992. END START With Aquino adamant that she would not stand for a second term, the jostling for position amongst those ambitious to succeed her intensified in late 1990 and early 1991. END START END START Security END START END START END START Throughout the first half of 1990 there were continuing reverberations from the December 1989 coup attempt — the most serious to date [see pp. 37120-21]. END START Although several of the coup leaders were arrested many others escaped, including Gregorio" Gringo" Honasan, a key member of the Reform the Armed Forces Movement (RAM), one of the clandestine right-wing organizations within the military which had been involved in repeated coup attempts against Aquino. END START In February 1990 the leading member of the opposition, Juan Ponce Enrile, was arrested on charges arising from the coup [see p. 37250], although a Supreme Court decision in June led to a reduction of the charges [see p. 37534]. END START An attempt in March to arrest Rodolfo Aguinaldo, the former Governor of Cagayan, led to a small rebellion which, although easily crushed, continued to demonstrated the unreliability of sections of the armed forces [see p. 37320]. END START Further evidence of this was provided by the escape from prison of Lt.-Cdr. END START Bilbastro" Billy" Bibit, the alleged leader of the coup attempt [see p. 37376]. END START Bibit and four companions were believed to have been assisted by members of the Young Officers Union (YOU), a shadowy right-wing military organisation similar to RAM. END START Bibit was recaptured in January 1991 [see p. 37961]. END START END START END START Small bombs exploded in Manila almost daily, the bulk of which were believed to have been planted by military dissidents. END START For the most part the explosions caused few casualties and little material damage, but were effective in fostering an impression of insecurity. END START Some of the bombings were acknowledged as the work of" Cobra", a new right-wing military organization in the tradition of RAM and YOU. END START END START END START In October 1990 another prominent participant in the coup attempt, Col. Alexander Noble, emerged from hiding to lead a revolt on Mindanao. END START The rebellion was easily crushed, and immediately afterwards Congress approved legislation which made the act of rebellion punishable with life imprisonment [see p. 37781]. END START END START END START Several military dissidents were arrested in December and in January 1991 [see p. 37961]. END START In February Lt.-Col. Victor Batac, allegedly a leading member of RAM, and Maj. Abraham Purugganan, a member of YOU, were arrested in Manila [see pp. 38011-12]. END START Another leading member of RAM, Capt. Edgardo Divina, was captured in April, as was a Navy captain, Juancho Sabban, allegedly a leading participant in the 1989 coup attempt. END START END START END START By mid-1990 the government acknowledged that the threat posed by" military rightists" was a more serious problem that which emanated from the insurgency campaign of the communist New People's Army (NPA). END START During 1990 it was believed that the strength of the NPA had fallen to around 19,000 compared with 25,600 in 1988, as a result of the continuing success of the armed forces in disrupting and demoralizing the guerrillas by targeting the movement's leadership. END START In May 1990 Aquino dismissed the guerrillas as" a moribund movement, an organization which has lost its cause". END START Nevertheless, there was some evidence that the NPA was successfully shifting the central focus of its campaign from its traditional rural areas of operation to urban centres, particularly Manila. END START Amongst the victims of the urban campaign was Col. Saturnino Dumlao, a senior intelligent agent, who was ambushed as he drove through the southern Manila suburb of Paranaque on June 11, 1990. END START END START END START At the end of August Aquino offered to hold peace talks with all of her enemies including the right-wing military dissidents and the NPA [see pp. 37657-58]. END START Although her initiative represented a reversal of her previous stance, it produced little progress [see p. 37716]. END START END START END START In the first half of 1991 the NPA increased its activities throughout the country in an apparent attempt to win back lost ground. END START Between January and April it was estimated that 563 government soldiers had been killed in clashes with the guerrillas. END START END START END START The third source of armed resistance to the government lay in the long-running secessionist struggle being waged by Moslems in Mindanao and its neighbouring territories. END START Elections were held in February 1990 in the newly created Autonomous Region of Muslim Mindanao. END START The region comprised a non-contiguous amalgamation of Sulu, the Tawi Tawi island group and the mainland Mindanao provinces of Maguindanao and Lanao del Sur (the four provinces had approved the autonomy plan in the November 1989 referendum held in the 13 southern provinces of the Philippines — see p. 37042). END START The newly elected Governor, Zacaria Candao, was immediately confronted by an outbreak of serious fighting in June arising from a dispute between rival family clans. END START Nevertheless, the autonomous region assumed some degree of credibility when, on Oct. 12, Aquino granted limited executive powers to the Candao government. END START An official statement said that the functions of the departments of public works, labour and employment, local government, environment and natural resources, tourism, science and technology and social services had all been transferred to the Autonomous Regional Government. END START END START END START The creation of the autonomous region had been opposed by the Moro National Liberation Front (MNFL), the largest of the separatist guerrilla organizations, on the grounds that it made insufficient concessions to Moslem autonomy and failed to meet the terms of the 1976 Tripoli Accord [see p. 28440]. END START The MNLF continued its guerilla campaign, as did the smaller Bansa Moro National Liberation Front (BMNLF). END START END START Issues concerning Marcos END START END START END START On Sept. 28, 1991, a special court finally sentenced airforce Brig. -Gen. END START Luther Custodio and 15 other members of the military to life imprisonment for the 1983 murder of Benigno Aquino and Rolando Galman at Manila Airport. END START A further 20 defendants were acquitted. END START Aquino expressed her disappointment that, after an exhaustive legal process, the court had not directly implicated those, including the Marcoses, who were widely believed to have ordered the crime [see p. 37716]. END START END START END START Aquino had suffered an earlier disappointment when Imelda Marcos, widow of the former dictator, was in July 1990 acquitted by a US federal court on corruption charges [see p. 37613]. END START However, in December the government achieved a breakthrough in its protracted campaign to trace and retrieve the huge sums believed to have been looted from the country by the Marcos family, when the Swiss Supreme Court ruled that funds held by the family in Swiss bank accounts should be returned to the government of the Philippines, but stipulated that this could be done only after a Philippines' court had ruled against Marcos [see p. 37961]. END START In March 1991, although Aquino confirmed that Imelda Marcos continued to be banned from the country, she suggested that she would be allowed to return at some point in order to face corruption charges. END START In April a US District Court ordered Marcos to stand trial in May 1992 on civil fraud charges. END START Imelda, who vigorously protested her innocence of all crimes, continued to suggest that she wished to return to her homeland in order to honour her husband's dying wish by interring his body in the Philippines. END START Many observers saw her wish to return as also motivated by the desire to use the Marcos patronage network to participate (directly or indirectly) in the 1992 elections. END START By mid-1991 there were increasing signs that the ban could be lifted before the end of the year. END START END START Economy END START END START END START The December 1989 coup attempt and the abortive revolts which followed it damaged international investor confidence in the Philippines. END START By mid-1990 withdrawals of foreign investments had amounted to US$145,000,000, almost double the comparable figure for 1989. END START Other factors adversely affecting the economy included the Luzon earthquake [see p. 37613] and frequent power-cuts caused by a serious energy shortage. END START The situation was worsened when Iraq invaded Kuwait in August 1990, as some 65 per cent of the country's energy requirements were met by imported oil, and some 500,000 or more Filipino workers in the Middle East remitted between $1,000 million and $2,000 million each year. END START Figures for the first half of 1990 showed that the trade gap had grown by 62 per cent to $1,870 million. END START END START END START On July 4 the government drew up a budget for 1991 which was described officially as designed to curb inflation, reduce the budget deficit and maintain economic growth. END START The 247,400 million peso budget involved increasing spending by 17.9 per cent over the adjusted 1990 budget of 209,800 million pesos. END START The government predicted that the deficit would shrink from 17,000 million pesos in 1990 to 1,400 million in 1991, and that inflation would fall from its current rate of 12.2 per cent to 9.5 per cent by the end of the year. END START The rate of growth for 1990 was forecast at between 4.8 per cent and 5.2 per cent compared with 5.6 per cent in 1989. END START END START END START One of the key economic problems for the Philippines was the size of the country's foreign debt, estimated at US$26,100 million in June 1990, almost unchanged from the previous year. END START Despite several restructuring agreements since 1983 the cost of debt servicing continued to consume approximately one-third of export revenues. END START In recent years a major balance-of-payments crisis had been prevented only by assistance from foreign governments and loans from multinational institutions (particularly the World Bank and the Asian Development Bank). END START END START END START The expense of servicing the debt burden increased the budget deficit, which in turn stimulated inflation. END START The public-sector deficit was expected to expand from 33,900 million pesos in 1989 to at least 55,100 million by the end of 1990. END START In order to combat the growing deficit the IMF had insisted on cuts in government spending and liberalization measures for trade and investment, demands which were rejected by the Congress. END START Failure to reach an agreement with the IMF over an economic stabilization programme worsened the situation during 1990 by causing the withholding of agreed loans worth $715 million from the IMF, the World Bank and Japanese government agencies. END START The situation was also aggravated by a series of natural disasters, the most serious of which was the earthquake which devastated the infrastructure of central Luzon in July and killed more than 1,650 people [see p. 37613]. END START Following the earthquake there was strong pressure from the Congress to declare a unilateral moratorium on all debt repayment, a move which Aquino stated that she was determined to resist. END START END START END START Despite a 30 per cent increase in petrol prices imposed in September, a debt rescheduling agreement signed with Japan in October, and a devaluation of the peso by 8.7 per cent on Oct. 31, by November official forecasts predicted that the budget deficit would reach 60,000 million pesos at the end of 1990. END START Gradually Congress was won over to the need for tax increases and cuts in public expenditure. END START In December petrol prices were raised by a further 32 per cent, whilst on Jan. 3, 1991, Aquino signed an executive order which imposed an additional 9 per cent duty on almost all imports, including oil. END START The levy, which would be effective until June 30, 1992, was designed to raise at least 20,000 million pesos in additional revenue. END START Following these moves, it was announced on Jan. 17 that government officials had reached an agreement with the IMF over all measures to be included in a stabilization programme. END START A new 18-month standby credit facility was approved in February [see p. 38012]. END START Also, on Feb. 27, major donor countries and international organizations pledged $3,300 million in fresh loans and aid. END START END START END START The government also derived revenue from its privatization programme designed to return to private ownership many of the state companies acquired during the 20-year rule of Marcos. END START The largest privatization to date was completed in October 1990 when the Nonoc Mining and Industrial Corporation, a nickel refinery complex in the south of the country, was sold to the Philippine Nickel Corporation (Philnico) for $325 million to be paid over six years. END START END START END START Official statistics for the first nine months of 1990 suggested that the growth in real GDP fell to 2.8 per cent compared with 5.6 per cent in the comparable period of 1989. END START The country recorded a current-account deficit of US$2,430 million for the first 11 months, a 63 per cent increase over the equivalent period for 1989. END START At the end of December total foreign debt stood at US$28,549 million, an increase of 3.37 per cent over the previous year, whilst inflation averaged 10.6 per cent for the year. END START This economic slowdown, which threatened to become a full-blown recession, had the effect of highlighting structural weaknesses hitherto obscured by the comfortable consumer-led growth of the previous three years. END START Nevertheless, as with the complex issue of land reform, there appeared no evidence that the Aquino government had either the political will or the reserves of public confidence to undertake a programme of comprehensive structural reform. END START END START Foreign relations END START END START END START Relations with the USA were dominated by the issue of the future of the US bases in the Philippines, particularly the giant facilities of Clark Field air base and the Subic Bay naval installation. END START With the current leases due to expire in September 1991, talks between the two sides began in May 1990 [see p. 37458], having been delayed by the December 1989 coup attempt. END START The issue at the heart of the talks of the relationship between the Philippines and its former colonial master was made more complex by the huge economic importance of the bases to the Philippines in terms of employment opportunities and hard-currency earnings, and by the fierce opposition to their continued presence by the majority of those on both the political left and right. END START The negotiations continued into 1991 [see pp. 37658; 37716; 37861; 37919; 38195], but the situation was abruptly altered when Mount Pinatubo began erupting in June, causing extensive damage to both the Clark and Subic bases [see p. 38294]. END START By mid-1991 it was unclear whether an agreement would be reached over the future of the bases before the deadline, and whether, if reached, it would be ratified by the Senate as stipulated by the constitution of the Philippines. END START END START END START END START END START ASIA — PACIFIC END START END START END START SINGAPORE END START END START END START Area: 623 sq km. END START Population: 2,700,000 (1990 UNFPA est.). END START Capital: Singapore City. END START Languages: Malay (national); Chinese (Mandarin), Tamil and English. END START Religion: Daoism, Buddhism, Islam, Christianity and Hinduism. END START Armed forces: 55,000 (1990). END START Currency: Singapore dollar (US$1.00=S$1.6816 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB, ASEAN, APEC, NAM. END START END START POLITICAL SYSTEM END START END START END START The Republic of Singapore, which was granted internal self-government by the United Kingdom in 1959, was declared an independent, sovereign state in 1965 when it separated from Malaysia. END START Its Constitution provides for a President as head of state, elected by Parliament every four years. END START The President appoints a Prime Minister and Cabinet who are responsible collectively to Parliament. END START Parliament is unicameral and consists of 81 members elected by single-member wards and group representation constituencies (GRCs). END START The GRC or" Team MPs" were returned for the first time by the 1988 general election to ensure continued minority representation. END START END START Main government leaders END START END START END START President: Wee Kim Wee. END START END START END START Prime Minister: Goh Chok Tong. END START END START END START Other principal ministers: Lee Kuan Yew (Senior Minister, Prime Minister's Office); Ong Teng Cheong (Deputy Prime Minister); Brig. -Gen. (reserve) Lee Hsien Loong (Deputy Prime Minister; Trade and Industry); Yeo Ning Hong (Defence); Wong Kan Seng (Foreign Affairs); Richard Hu Tsu Tau (Finance); Suppiah Dhanabalan (National Development); Shanmugam Jayakumar (Home Affairs; Law). END START END START Cabinet changes in 1990 and 1991 END START END START END START Goh Chok Tong replaced Lee Kuan Yew as Prime Minister in November 1990 and the Cabinet was reshuffled at the same time [see p. 37860]. END START END START END START In late June 1991 the Cabinet was again reshuffled [see p. 38295]. END START Goh relinquished the Defence portfolio, appointing in his place Yeo Ning Hong, hitherto Minister of Communications and Information and Second Minister of Defence (Policy). END START Brig. -Gen. END START George Yeo was appointed to head the new Ministry for Information and Arts and also as Second Minister for Foreign Affairs. END START Other appointments were: Lee Boon Yang as Minister in the Prime Minister's Office and Second Minister for Defence; Mah Bow Tan as Acting Minister for Communications and Minister of State for Trade and Industry; Seet Ai Mee as Acting Minister for Community Development; and Sidek Saniff as Minister of State for Education. END START END START END START Goh announced a limited Cabinet reshuffle in early September [see p. 38441]. END START END START Ruling party END START END START END START The People's Action Party (Lee Kuan Yew sec. -gen.) has been in power since 1959. END START END START Other parties END START END START END START The Singapore Democratic Party (Chaim See Tong l.) won three seats in the 1991 general election. END START The Workers' Party (J. B. Jeyaretnum sec. -gen.) won one seat. END START Three other parties contested the election: the National Solidarity Party, the Singapore Justice Party and the Pertubohan Kebangsaan Melayu Singapura. END START END START END START Other political parties registered in Singapore include: Alliance Party Singapura; Angkatan Islam; Barisan Socialis; National Party of Singapore; Partai Rakyat (Singapore State Division); Parti Kesatuan Ra'ayat (United Democratic Party); People's Republican Party; Persatuan Melayu Singapura; Singapore Chinese Party; Singapore Indian Congress; Singapore United Front (Barisan Bersatu Singapura); People's Front; United National Front; United People's Front; and United People's Party. END START END START Elections END START END START END START A general election was held in August 1991 [see p. 38397]; Wee Kim Wee was elected for a second four-year term in August 1989 [see p. 37574]. END START END START 1990/91 OVERVIEW END START END START END START Lee Kuan Yew finally resigned as Prime Minister in late November 1990, after 31 years continuously in office [see pp. 37860-61]. END START The First Deputy Prime Minister, Goh Chok Tong, was duly sworn in as Lee's replacement. END START Lee remained in the Cabinet as a Senior Minister and his son (Goh's chosen successor), Lee Hsien Loong, was promoted to Deputy Prime Minister. END START Parliament voted to change the Constitution in January 1991 to convert the ceremonial office of president into a directly elected post whose holder would enjoy reserve veto powers over financial provision and senior public service appointments [see p. 37962]. END START Critics claimed that in its new form the post was earmarked for Lee Kuan Yew. END START END START END START Parliament adopted regulations in late August 1990 which a required foreign publication to obtain an annual permit if more than 300 copies were distributed in Singapore or if it carried articles on politics" in any country in south-east Asia". END START The Asian Wall Street Journal, the circulation of which had been restricted in Singapore since 1987 [see p. 35463], halted all circulation in mid-October in protest at the new legislation. END START In November 1990 Parliament had approved new legislation which the government said was intended to ensure religious harmony, despite criticism from opposition parties that the law would in practice restrict religious freedoms and suppress dissent. END START The Maintenance of Religious Harmony Bill provided for fines and imprisonment for those found guilty of heightening tension between members of different faiths, of inciting others to defy or challenge secular government policies, or to mobilize followers for subversion. END START Vincent Cheng, a Catholic social worker whom the government had accused of leading a" Marxist conspiracy", and Teo Soh Lung, one of Cheng's co-conspirators, were conditionally released from prison in June 1990 [see p. 37533]. END START Cheng and Teo were the last to be released of 22 people detained in 1987 for their involvement in the" conspiracy" [see p. 35462]. END START END START END START A long-running legal dispute came to an end in April 1991 when J. B. Jeyaretnam, a former MP and the secretary-general of the Workers' Party (WP), withdrew his appeal before the Singapore Court of Appeal for reinstatement of his parliamentary status. END START Jeyaretnam had been disqualified as an MP in 1986 [see pp. 35462-63] over alleged irregularities in the collection of WP funds. END START In 1989 he began libel proceedings in the UK against the Singapore government after the Privy Council had expressed" deep disquiet" over his treatment by the government [see p. 37574]. END START Jeyaretnam finally withdrew his case from the Court of Appeals on the grounds that the Attorney General had failed to respond to his proposal that the case be appealed to the Privy Council. END START (Civil cases in Singapore could only be taken to the Privy Council in London if both parties agreed in advance of hearings at the Court of Appeals.) END START END START Economy END START END START END START Finance Minister Hu Tsu Tau introduced to Parliament on March 1, 1991, the budget for the fiscal year beginning April 1, 1991, [see p. 37575 for details of 1990 budget]. END START Analysts described the budget as" neutral", despite predictions of a slowdown in economic growth in 1991. END START Hu announced an increase in the employer's contribution to the Central Provident Fund (CPF, the compulsory pension scheme) by 1 percentage point, to 17.5 per cent starting in July 1991. END START By contrast, he responded to heavy trade union lobbying by announcing a modest reduction of 0.5 of a percentage point in the employee's CPF rate, to 22.5 per cent. END START END START END START The budget forecast that overall government expenditure would increase by 15.4 per cent in the 1991/92 fiscal year to S$15,800 million. END START Total revenue would increase by S$1,900 million, to S$17,200 million, allowing for an overall surplus (that is, surplus minus net lending and plus net capital receipts) of S$3,500 million, or 5.3 per cent of gross domestic product (GDP). END START The Far Eastern Economic Review of March 14 reported that a surplus of S$5,300 million was expected for fiscal 1990/91. END START END START State of economy in 1990 END START END START END START The 1990 growth in GDP of 8.3 per cent was down from 9.2 per cent in the previous year and from 11 per cent in 1988. END START For the second year in succession the largest contribution to economic growth came from the financial and business services sector, which grew by 15 per cent, compared with 10.1 per cent in 1989. END START Manufacturing grew by 9.5 per cent, down from 9.8 per cent in 1989. END START The commerce sector was down to 7.8 per cent growth in 1990, from 8.3 per cent in 1989, and transport and communications also recorded a slight fall in growth, at 8.8 per cent compared with 9.4 per cent in 1989. END START Construction expanded by 7.2 per cent after five successive years of sluggish performance. END START END START END START A shortage of labour remained a key problem in 1990, despite the addition of some 60,000 people to the workforce during the year. END START The labour shortage served to drive wages up by 6.4 per cent, against productivity growth of only 3.4 per cent. END START As a result, unit labour costs grew during the year, particularly in comparison with the other Asian newly industrialized countries (such as Taiwan, Hong Kong and South Korea). END START END START END START A rise in exports in 1990 by 9.3 per cent to S$95,200 million served to emphasize the country's heavy dependence on its foreign trade. END START Despite the increase in exports, the overall trade deficit rose S$4,900 million to S$14,600 million in 1990. END START Non-oil exports constituted just under half the total export figure, rising by 8.5 per cent, compared with 10 per cent growth in 1989. END START Exports of oil increased by 30 per cent to S$17,100 million, largely as a result of increased volumes passing through Singapore following the onset of the Gulf crisis. END START Consumer electronics exports grew more slowly than in the previous year, but sales of computer disks rose by 31 per cent to S$7,200 million. END START END START END START The Economic Development Board (EDB) reported in January 1991 that Singapore had attracted a record US$1,410 million in manufacturing investment in 1990, with the United States surpassing Japan as the principal source. END START Investment commitments had mainly been in the electronics industries, which accounted for almost 49 per cent of the total, and in chemicals, which had almost 29 per cent. END START END START Foreign END START END START END START Singapore established diplomatic relations with China in October 1990 [see p. 37780]. END START Commentators claimed that formal relations with China would not strain Singapore's strong ties with Taiwan. END START The move followed a visit to Singapore in August by the Chinese Premier, Li Peng [see p. 37656], and the renewal that month of China's diplomatic relations with Indonesia, and was followed a few weeks later by a visit by Lee Kuan Yew to China [see p. 37780]. END START In May 1991 Lee Hsien Loong headed a delegation to China and Hong Kong. END START END START END START In November 1990 Singapore and the United States signed an agreement which allowed the USA increased use of Singapore's military facilities [see p. 37860]. END START Lee Kuan Yew subsequently paid a visit to Malaysia to brief Prime Minister Mohamed Mahathir on the agreement. END START END START END START In May 1991 the then Prime Minister of Japan, Toshiki Kaifu, visited Singapore as part of a tour of South-East Asia [see pp. 38191-92]. END START END START END START Bilateral relations with Malaysia and with Indonesia remained good during 1990. END START Much discussion between the three countries centred on the development of Goh Chok Tong's plan for an" economic growth triangle" involving Singapore, the Malaysian state of Johore and the Indonesian island of Batam. , 1989, 1990 Total GDP (US $million), 28,800, 34,600 Real GDP growth (%), 9.2, 8.3 GNP per capita (US$), 10,752, 12,765 Components of GDP (%), Private consumption, 46.6, 44.4 Total investment, 34.4, 38.6 Government consumption, 10.8, 10.6 Net exports, 8.9, 5.9 Consumer prices (% change p.a.), 2.4, 3.4 Retail sales volume (% change p.a.), 11.3, 1.7 Individual production (% change p.a.), 10.1, 9.5 Unemployment (% of labour force), 2.2, 1.7 Reserves minus gold (US$ million), 20,300, 28,400 Money growth (M1 % p.a.), 14.9, 10.8 Minimum Lending Rate (% p.a.), 6.2, 7.7 Public external debt (US$ million), 71.1, 38.3 Debt service ratio (%), 0.7, 0.2 Current Account Balance (US$ million), 2,500, 2,300 Exports (US$ million), 44,700, 52,600 Imports (US$ million), 49,700, 60,500 Trade balance (US$ million), -5,000, -7,900 Main trading partners, Exports (% by value), USA, 23.3, 22.0 Malaysia, 13.7, 13.5 Japan, 8.5, 9.0 Imports (% by value), Japan, 21.4, 20.2 USA, 17.1, 16.0 Malaysia, 13.2, 13.6 Source: Financial Times. END START END START END START Detailed economic figures, 1989-90 END START END START END START END START END START ASIA — PACIFIC END START END START END START SRI LANKA END START END START END START Area: 64,453 sq km. END START Population: 17,200,000 (1990 UNFPA est.). END START Capital: Colombo (seat of government is Sri Jayawardene Kotte). END START Languages: Sinhala, English and Tamil (all official). END START Religion: Buddhism (70%), Hinduism (15%, Tamil speakers), Islam, Christianity. END START Armed forces: 65,100 (1990). END START Currency: Sri Lanka rupee (US$1.00=Rs41.8083 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; NAM; SAARC. END START END START POLITICAL SYSTEM END START END START END START Known as Ceylon until 1972, and an independent state within the Commonwealth since 1948, under the 1978 Constitution the Democratic Socialist Republic of Sri Lanka has a presidential form of government; the President is directly elected for a six-year term, appoints the Prime Minister and cabinet, and is also empowered to dissolve the 168-member parliament which is elected by proportional representation. END START END START END START In response to Tamil demands for a separate state in the Northern and Eastern provinces of Sri Lanka, Parliament in August 1983 approved an amendment to the Constitution making the advocation of separatism illegal. END START Militant Tamil MPs elected in 1989 boycotted Parliament from mid-1990 [see p. 37611, but see also p. 38439 for partial ending of boycott in September 1991]. END START END START Main government leaders END START END START END START President: Ranasinghe Premadasa (also Minister of Defence; Buddha Sasana; Policy Planning and Implementation). END START END START END START Prime Minister: Dingiri Banda Wijetunge (also Minister of Finance; Minister of State for Defence). END START END START END START Other principal ministers as of late September 1991: Harold Herath (Foreign Affairs); Renuka Herath (Health; Women's Affairs); Festus Perera (Public Administration, Provincial Councils and Home Affairs); S. Thondaman (Tourism; Rural Development); Ranil Wickremasingh (Industries, Science and Technology); A. R. Mansoor (Trade and Commerce). END START END START Changes to Council of Ministers, March 1990 to June 1991 END START END START END START A major reshuffle took place in March 1990 [see p. 37316]. END START A further reshuffle took place in March 1991 following the assassination of Ranjan Wijeratne [see p. 38103]. END START Lalith Athulathmudali and G. N. Premachandra resigned in late August 1991 [see pp. 38393; 38440]; the departure of these UNP dissidents created the vacancies still unfilled as of end-September. END START END START Ruling party END START END START END START United National Party (UNP, Ranasinghe Premadasa l., Sirisena Cooray gen. sec.), with a minor coalition party, the Tamil-based Ceylon Workers' Congress (CWC, S. Thondaman l.). END START END START Other political parties END START END START END START Bahejana Nidahas Pakshaya (Chandrika Kumaranatunge l.), formed in early 1991 and allied with SLFP, LSSP, NSSP and Communist Party for May 1991 local elections; Eelavar Democratic Front (EDF, V. Balakumar l.) formed in 1990 on the basis of the former Eelam Revolutionary Organization of Students or EROS; Mahajana Eksath Peramuna (MEP — People's United Front, Dinesh Gunawardene gen. -sec.); END START Sri Lanka Freedom Party (SLFP, Sirimavo Bandaranaike l., Anura Bandaranaike national organizer); Sri Lanka Mahajana Party (SLMP, Ossie Abeygoonasekara l., part of the USA in 1988); Sri Lankan Moslem Conference (SLMC); Tamil United Liberation Front (TULF, K. Padmanabha sec. -gen., Vardharaja Perumal l.); for the 1989 elections the TULF front included the Eelam People's Revolutionary Liberation Front (EPRLF); United Socialist Alliance (USA, Vasudeva Nanayakkara l.) a grouping formed in 1988 and including the Communist Party and the historically Trotskyite Lauka Sama Samaja Party (LSSP) and Nava Sama Samaja Party (NSSP). END START END START Guerrilla groups END START END START END START The fierce factional fighting between Tamil separatist groups in late 1989 and early 1990, in the wake of the withdrawal of the Indian Peace Keeping Force, confirmed the ascendancy of the Liberation Tigers of Tamil Eelam (LTTE, Velupillai Prabhakaran l., Anton Balasingham political spokesman). END START Rival militant groups which had co-operated with the Indian forces were effectively relegated to politics in exile. END START Various groups broadly sympathetic to the LTTE, which had formed the EDF alliance [see parties above] and won 13 parliamentary seats in the 1990 elections, boycotted parliament after a ceasefire between the government and the LTTE broke down in mid-1990. END START END START END START The (nominally left-wing) Sinhala guerrilla Janatha Vimukti Peramuna (JVP — People's Liberation Front) was effectively wiped out as a serious threat by ruthless army action in southern areas in late 1989 and early 1990 [see pp. 37042; 37353]. END START END START Elections END START END START END START A general election, the first under proportional representation, was last held on Feb. 15, 1989, when the ruling UNP won 125 of the 225 seats and the main opposition SLFP won 67 [see p. 36467]; local elections were held in March and May 1991 [see pp. 38103; 38193]. END START Presidential elections were held in December 1988 [see p. 36381]. END START END START 1990/91 OVERVIEW END START END START END START The UNP's comfortable parliamentary majority and the fact that the Premadasa regime faced no imminent electoral test after February 1989 [see p. 38193 for May 1991 local elections], left the political opposition without a clear focus for action in 1990. END START Criticism grew, however, within the establishment and among some ambitious but sidelined UNP politicians, over what was seen as Premadasa's increasingly autocratic style of government and his reliance on a small group of personally appointed presidential advisers. END START The abrupt decision in June 1991 to ban all casinos, despite the involvement of erstwhile Premadasa associates in the rapidly expanding gambling industry, was seen by many observers as a sign of the President's confidence in his own authority, and thus as a contributory factor in precipitating the unsuccessful attempt, launched in August, to impeach him [see pp. 38440; 38534]. END START END START END START The Tamil secessionist struggle continued to overshadow the political scene. END START The LTTE effectively took total control of the north when the Indian Peace Keeping Force (IPKF) pulled out in March 1990. END START The LTTE's Tamil rivals, the groups which had set up provincial governments under IPKF protection, were destroyed and many thousands fled to Tamil Nadu state in southern India. END START The Sri Lanka government and armed forces swung from their position in early 1990 of coexistence with the LTTE to the pursuit of military victory over them (in which regard they achieved a series of successes from mid-1991 — see pp. 38392; 38439; 38534), while providing sporadic indications of willingness to seek a negotiated settlement. END START The state of emergency was repeatedly extended, and a string of massacres gave rise to continuing claims and counter-claims about the disregard for human rights, although in February 1990 the repeal of emergency regulation 55F removed the authority under which the security forces could dispose of bodies without any inquest (a particular feature of their late 1979 campaign in crushing the JVP insurgency in the south). END START The ability of the LTTE to find volunteers for suicide missions added to the problem of protecting prominent political figures. END START The assassination in March 1991 of the hardline security chief, Minister of State for Defence Ranjan Wijeratne [see p. 38103], although denied by the LTTE, was seen as linked with the May 21 killing in India of Rajiv Gandhi [see p. 38175]. END START This latter attack, widely held to have been the work of a Tamil Tiger suicide squad, again called into question India's desire after the IPKF withdrawal to remain at arm's length from the Tamil conflict in Sri Lanka — a major security issue, with India such a short journey from the LTTE's Jaffna stronghold across the Palk Strait, or from Mannar along the string of islands at Adam's Bridge. END START END START Economy END START END START END START The Sri Lankan economy, shrinking in real terms prior to 1990 (with 2 per cent nominal growth in 1989 far outstripped by inflation), recorded 6 per cent growth in 1990, with similar rates persisting into 1991, despite exaggerated initial fears of damaging repercussions from the Gulf crisis. END START The annual rate of inflation, at 21.5 per cent in 1990, had fallen to 12 per cent by August 1991. END START The balance of payments, benefiting from a small increase in the value of exports from US$1,959 million in 1989 to $1,982 million in 1990, returned to a positive figure with the inclusion of invisible earnings (including some recovery in tourism). END START Major earners were again garments and textiles, tea (a record crop in 1990 and exports of 215 million kg, outstripping India as the leading world exporter), refined petroleum products and gemstones. END START The commercial banking and finance sector was booming as of September 1991. END START In March 1991 foreign exchange controls were relaxed to attract foreign investment, while on Sept. 13 the IMF approved a further three-year enhanced structural adjustment facility, providing credits to a total of 336 million special drawing rights (US$455 million) in support of the government's 1991-94 economic and financial programme. END START END START END START END START END START ASIA — PACIFIC END START END START END START TAIWAN END START END START END START Area: 36,000 sq km. END START Population: 20,200,000 (1990 est.). END START Capital: Taipei. END START Language: Chinese (Mandarin). END START Religion: Buddhism; also Islam, Daoism, Christianity and Confucianism. END START Armed forces: 370,000 (1990). END START Currency: new Taiwan dollar (US$1.00=NT$26.5116 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; UN membership ceased in 1971. END START END START POLITICAL SYSTEM END START END START END START The government of Taiwan (formerly Formosa) is derived from that which ruled the Chinese mainland prior to the 1949 communist revolution; it maintains its claim to legal jurisdiction of this lost territory and continues to designate itself as the Republic of China (ROC). END START Executive power is in the hands of a President who is elected for a six-year term by the National Assembly (Kuo-Min Ta-Hui). END START Under the terms of the 1947 Constitution legislative authority is vested in the Assembly which receives legislative proposals from the Legislative Yuan (Li-Fa Yuan). END START The Executive Yuan or Cabinet is the highest administrative organ and is responsible to the Legislative Yuan. END START In addition there are also Control, Judicial and Examination Yuans. END START The majority of the members of the National Assembly and the Legislative Yuan hold seats for life, having originally been elected in 1947-48 to represent constituencies on the Chinese mainland. END START However, under a series of major constitutional amendments introduced in April 1991, all" senior parliamentarians" would be forced to retire by the end of the year [see p. 38146]. END START END START Main government leaders END START END START END START President: Lee Teng-hui. END START END START END START Prime Minister: Gen. (retd) Hau Pei-Tsun. END START END START END START Other principal ministers: Shih Chi-yang (Vice-Premier); Wu Po-hsiung (Interior); Vincent Siew (Economic Affairs); Wang Chien-shien (Finance); Frederick Chien Fu (Foreign Affairs); Chen Li-an (National Defence); Lu You-wen (Justice); Shirley Kuo (Director-General of Council for Economic Planning and Development; Minister Without Portfolio). END START END START Cabinet changes in 1990-91 END START END START END START Gen. Hau was appointed as Premier in May 1990 and reshuffled the Cabinet (Executive Yuan) [see pp. 37454-55]. END START In April 1991 the Communications Minister Clement Chang resigned after being implicated in an insider stock trading scandal [see p. 38147]. END START The Cabinet was reshuffle again in June 1991 [see pp. 38290-91]. END START END START Ruling party END START END START END START Kuomintang (KMT, Lee Teng-hui ch., James Soong sec. -gen.). END START END START Other parties END START END START END START China Democratic Socialist Party (CDSP, Wang Shih-hsien ch., Wong Hou-sen sec. -gen.); END START China Socialist Democratic Party (CSDP, Chu Kao-cheng l.); END START Chinese Freedom Party; Chinese Republican Party (CRP, Wang Yin-chun ch.); END START Democratic Liberal Party; Democratic Progressive Party (DPP, Huang Hsin-chieh ch., Chang Chun-hung sec. -gen.); END START Kuntang (KT, Wang Yi-hsiung ch., Yau-nan Wang sec. -gen.); END START Workers' Party (Lou Meiwen l.); END START Young China Party (YCP, Li Huang ch.). END START END START Elections END START END START END START In 1986 84 additional members were elected to the National Assembly (KMT 68, DPP 11, CDSP 1, independent 4). END START As of mid-1990 the Assembly had 691 members. END START Elections were held in December 1989 for 101 seats in the Legislative Yuan (KMT 72, DPP 21, and independents eight — see pp. 37122-23). END START As of mid-1990 the Legislative Yuan had 267 members (KMT 227, DPP 21, YCP seven, CDSP three and independents nine). END START END START 1990/91 OVERVIEW END START END START END START President Lee Teng-hui made substantial progress with his programme of political reform in 1990-91, although he faced considerable opposition to the reform measures from conservative elements within his own KMT and from opposition leaders who questioned the pace of the programme. END START Lee's most solid achievement was in late April 1991 to terminate the" Temporary Provisions", the continuation of which had acted as a block to any major political reforms. END START The Provisions, adopted in 1948, had enhanced powers of the President and frozen in office the mainland-elected members of the various deliberative assemblies, pending hypothetical recovery of the mainland. END START Lee also received National Assembly approval for a number of other major constitutional amendments, which reapportioned the seats in the three elected branches of government so that most of the delegates would be elected from Taiwanese (as opposed to mainland Chinese) constituencies. END START They also established a timetable for elections and the political reform process [see p. 37917]. END START END START END START 1990 had started bleakly for Lee, who ran into serious difficulties gaining the KMT nomination for the election due in March to the presidency, a post which he had held since the death of Chiang Ching-kuo in early 1988 [see p. 37515]. END START Lee was challenged by a powerful conservative faction which threatened him with selecting instead Lin Yang-kan, the populist president of the Judicial Yuan and Gen. Chiang Wei-kuo, Chiang Kai-shek's only surviving son. END START In the event Lin and Chiang pulled out at the last moment, prompting speculation that Lee had made a deal with the conservatives over the reform programme or over Cabinet posts. END START Having survived the challenge in March he was elected by the National Assembly for a six-year term [see p. 37318]. END START The Assembly session had opened in February but had been seriously disrupted by DPP protests. END START There was renewed unrest in May when Lee appointed a new Cabinet headed by Gen. Hau, a former Defence Minister. END START Hau was widely regarded as a conservative, and violent street protests erupted in Taipei when news of his appointment emerged. END START However, by the year end Gen. Hau had become a genuinely popular figure in Taiwan, largely as a result of the emphasis which he placed on finding solutions to various social problems [see pp. 37454-55]. END START END START Security END START END START END START Shortly after his election as President in May, Lee Teng-hui announced a presidential amnesty for all political prisoners. END START At the same time those convicted of political offences had their civil rights restored. END START However, by the middle of 1990 there were reports of fresh sentences being passed on various dissidents who had recently returned to Taiwan. END START END START Economy END START END START END START The gross national product (GNP) growth rate fell from 7.3 per cent in 1989 to 5.3 per cent in 1990. END START Officials blamed the fall on a collapse in the stock market, lower industrial production and falling domestic investment. END START END START END START The Executive Yuan approved an ambitious six-year development plan in late January 1991 [see p. 38009]. END START END START Foreign relations END START END START END START Relations with mainland END START END START END START In late April 1991 Lee signed a document declaring the end of the" Period of Mobilization for the Suppression of the Communist Rebellion", which effectively brought to an end more than four decades of" civil war" between Taiwan and the Chinese mainland. END START While Lee declared that Taiwan had not abandoned its" one-China policy", his action paved the way for further significant progress in relations between Taiwan and the mainland [see pp. 38146-47]. END START END START END START Throughout 1990 Lee had adopted a conciliatory approach towards relations with the mainland while nevertheless continuing to reject mainland China's advocacy of the principle of" one country — two systems" as a basis for reunification, proposing instead the rival notion of" one country, two regions". END START In his inaugural speech in May Lee offered to abandon the" three no's" policy (no contact, no compromise, no negotiation), but only on condition that the mainland renounced the use of force against Taiwan and implemented political and economic reforms [see p. 38190]. END START END START END START New mechanisms to facilitate contact between Taiwan and the mainland were created in 1990. END START A National Unification Council (NUC), chaired by Lee, and a Mainland Affairs Council (MAC) were established in October. END START In November the Straits Exchange Foundation (SEF) was established to deal with administrative and notionally non-political issues [see p. 37859]. END START Although ostensibly independent, the SEF was answerable to the MAC. END START The NUC formulated a national unification programme in early 1991 which was endorsed by the KMT in March [see p. 38098]. END START Elements of the programme, which contained no timetable, were welcomed by the mainland. END START In April-May an SEF delegation visited the Chinese mainland, the first formal visit by a Taiwanese delegation [see p. 38190]. END START END START END START In November 1990 the DPP had formed a Taiwan Sovereignty Independent Movement Committee to advocate what the party asserted was Taiwan's" independent sovereignty" which excluded mainland China. END START Lee declared that the DPP's actions would be dealt with according to the law which prohibited the advocacy of independence. END START END START Other foreign relations END START END START END START Taiwan's policy of" flexible diplomacy" continued to pay some dividends during 1990. END START Canada and Australia agreed to upgrade their offices in Taipei. END START The decision by Nicaragua to open diplomatic relations with Taiwan in November meant that only Mexico of the Central American countries maintained ties exclusively with the mainland. END START However, in August Saudi Arabia dealt the government a severe blow when it established diplomatic relations with the mainland. END START Other setbacks included the decisions by Indonesia and Singapore to resume (or open) diplomatic relations with China, without either government having formal relations with Taiwan. END START As of late 1990 Taiwan was recognized by 28 countries, the majority of which were small developing countries in Central and Latin America and in Africa. END START Relations with the Soviet Union improved in 1990-91; the Soviet Minister of Culture, Nikolai Gubenko, paid a private visit in November, the most senior Soviet politician to visit Taiwan. END START A Taiwanese trade delegation visited the Soviet Union and Eastern Europe in May 1991. END START END START END START END START END START ASIA — PACIFIC END START END START END START THAILAND END START END START END START Area: 513,115 sq km. END START Population: 55,700,000 (1990 UNFPA est.). END START Capital: Bangkok. END START Languages: Thai (national); small minorities speak Chinese, Malay and indigenous languages. END START Religion: Buddhism (Theravada); Islamic and Christianity (minorities). END START Armed forces: 283,000 (1990). END START Currency: baht (US$1.00=B25.4592 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; ASEAN; APEC. END START END START POLITICAL SYSTEM END START END START END START Prior to February 1991, when the armed forces toppled the elected government in a bloodless coup, Thailand was a constitutional kingdom, with a bicameral National Assembly (the legislature comprising the Senate and the House of Representatives). END START After the coup martial law was imposed (and lifted in May), the country's Constitution was terminated and the National Assembly and the Cabinet were dissolved. END START The heads of the armed forces created a ruling National Peace-Keeping Assembly (NPA — previously given as NPKA — see p. 38391). END START In March King Bhumibol approved an interim Constitution which provided for the appointment of a 292-member National Legislative Assembly to draw up a permanent constitution and prepare for a general election. END START In the same month the NPA appointed a civilian Prime Minister and a new Cabinet [see pp. 38003-04; 38099]. END START END START Main government leaders END START END START END START Head of state: King Bhumibol Adulyadej (Rama IX) (also Head of the Armed Forces). END START END START END START National Peace-Keeping Assembly: Gen. Sunthorn Kongsompong (chair); Armed Forces Supreme Commander and Army C.-in-C. END START Gen. Suchinda Kraprayoon (vice-ch.); END START Navy C.-in-C. END START Adml. END START Praphat Kritsanachan (vice-ch.); END START Air Force C.-in-C. END START Air Chief Marshal Kaset Rojanani (vice-ch.); END START Deputy Army C.-in-C. END START Gen. Issarapong Noonpakdi (sec. -gen.). END START END START END START Prime Minister: Anand Panyarachun. END START END START END START Other principal ministers: Sanoh Unakul (Deputy Prime Minister); Police Gen. Pow Sarasin (Deputy Prime Minister); Meechai Ruchuphan (Deputy Prime Minister); Gen. Issarapong Noonpakdi (Interior); Adml. END START Praphat Kritsanachan (Defence); Arsa Sarasin (Foreign Affairs); Suthee Singsaneh (Finance). END START END START Cabinet changes in 1990-91 END START END START END START In January 1990 Meechai Ruchupan resigned as Minister attached to the Prime Minister's Office [see p. 37188]. END START In March Gen. Chaovalit Yongchaiyut resigned as Army C.-in-C. and made his long-awaited entry into civilian politics as Deputy Prime Minister and Minister of Defence in Prime Minister Maj.-Gen. END START Chatichai Choonhaven" s Cabinet, from which he resigned in June [see pp. 37317; 37532]. END START Chatichai carried out a major reshuffle in August, including the replacement of Finance Minister Pramual Sabhavasu and Foreign Minister Air Chief Marshal Siddhi Savetsila [see p. 37655]. END START A dispute between ministers and the armed forces necessitated another reshuffle in November [see p. 37857]. END START In mid-December Chatichai formed a new government, replacing a number of parties in the ruling coalition which was then toppled in a military coup in February 1991 [see pp. 37916; 38003]. END START The ruling junta appointed an interim Prime Minister (Anand Panyarachun) and Cabinet in early March [see p. 38099]. END START END START Ruling party END START END START END START There has been no ruling party since the February 1991 military coup. END START END START Main political parties END START END START END START Chart Thai (Chatichai Choonhavan l.); END START Democrat Party (Chuan Leekpai l.); END START Ekkaparb (Bunchu Rothchanasathian l.); END START New Aspiration Party (Gen. Chaovalit Yongchaiyut l.); END START Palang Dharma (Chamlong Simaung l.) END START Prachakorn Thai (Samak Sundaravej l.); END START Puangchon Chao Thai (Gen. Arthit Kamlang-Ek l.); END START Rassadorn (Gen. Mana Rattanakoset sec. -gen.); END START Samakki Tham Party (Narong Wongwan l.); END START Social Action Party (Montree Pongpanit l.). END START END START END START The main illegal organization is the Communist Party of Thailand (Thong Jaemsri sec.). END START END START Elections END START END START END START The House of Representatives elected in July 1988 was dissolved in February 1991 by the military junta, which appointed a National Legislative Assembly in mid-March. END START Under an interim constitution promulgated at the start of the month, the National Assembly had no fixed term; its primary task was to draft a new Constitution with a view to the holding of a general election before the end of 1991. END START END START 1990/91 OVERVIEW END START END START END START The elected government of Gen. Chatichai Choonhaven was overthrown in a bloodless military coup in February 1991. END START A military junta, the National Peace-Keeping Assembly (NPA), took control of the country, giving political corruption as the main justification for their action. END START However, the coup was also in response to what leading factions within the army perceived as attempts by Chatichai to undermine their influence. END START The dominant figure in the NPA, and the effective coup leader, was Army C.-in-C. END START Gen. Suchinda Kraprayoon [see pp. 38003-04]. END START END START END START Chatichai's final year as Prime Minister had been a turbulent one, with widespread allegations of corruption, Cabinet disputes and serious labour unrest. END START In March 1990 Chatichai had moved to stabilize his government by bringing Gen. Chaovalit Yongchaiyut, hitherto Army C.-in-C. and Chatichai's strongest political rival, into his Cabinet as Deputy Premier and Defence Minister. END START Gen. Suchinda Kaprayoon replaced Chaovalit as the army leader. END START Less than three months after his appointment Chaovalit resigned after a Cabinet colleague, Chalerm Yubamrung (who was thought to be close to Chatichai), accused him of corruption. END START Chaovalit waited until October before registering his own New Aspirations Party to contest the next election. END START In July Chatichai's government survived a vote of no confidence in the House of Representatives, sponsored by the opposition on grounds of corruption and incompetence. END START The following month he enlarged his coalition, incorporating Puangchon Chao Thai, the party of former Army" strongman" Gen. Arthit Kamlang-Ek, and reshuffled his Cabinet in an attempt to deflect increasingly damaging allegations of corruption. END START Chatichai was forced to demote Chalerm in November after the armed forces had threatened to intervene. END START In December Chatichai resigned, but quickly formed a new coalition government incorporating former opposition parties Ekkaparb and Prachakorn Thai and discarding the Democrat Party, the Social Action Party and Muan Chon [see above]. END START END START END START Following the February coup the junta declared martial law, abrogated the Constitution and dissolved parliament and the Cabinet. END START An interim Constitution, approved by the King, was published in March and promised a new Constitution and fresh elections by the year end. END START Later that month the junta appointed a civilian Prime Minister, Anand Panyarachun, who formed a new Cabinet, and a military-dominated National Legislative Assembly. END START One of the Assembly's first actions was to approve legislation in April dissolving all of the country's powerful state enterprise unions [see p. 38151]. END START Under Chatichai such unions had wielded considerable power and had caused serious disruption to the government's privatization plans. END START In May martial law was lifted in most areas of the country and a ban on political activity was also lifted. END START 1989/90 1990/91 Total receipts 335,000 387,500 END START END START END START Economy END START END START END START Budgets for 1989/90 and 1990/91 (million baht), year ending Sept. 30. END START END START END START Taxation 282,755 347,511 END START END START END START Borrowing 25,000 n/a Others 27,244.6 39,988 Total expenditure 335,000 387,500 END START END START END START Education 59,962 73,979 END START END START END START Defence 54,758 63,077 END START END START END START Debt service 69,574 58,592 END START END START END START Public health/utilities 42,506 52,109 END START END START END START Economic services 68,966 85,686 END START END START END START Others 39,231 54,054 END START END START END START The economy grew by an estimated 9.9 per cent in 1990, following growth rates of 12.2 per cent in 1989 and 13.2 per cent in 1988. END START The export-led economic boom generated numerous problems, made worse by an inadequate infrastructure. END START Efforts were made during 1990 to resolve the infrastructure problem; the Cabinet approved a road and rail scheme and a mass transmit system for Bangkok, and a contract was signed for the installation of some 3,000,000 new telephone lines. END START The new port at Laem Chabang, on the eastern seaboard, was scheduled for completion in 1991. END START END START END START Following the coup the ruling junta made few changes to economic policy. END START However, it quickly neutralized the country's state enterprise unions, paving the way for the increased role of the private sector in the development of state enterprises. END START The junta also implemented certain populist policies, including the provision of wage supplements for rural workers. END START END START Foreign relations END START END START END START Foreign relations continued to be dominated by events in Indo-China. END START Thailand, like its ASEAN partner Indonesia, was intricately involved in the Cambodian peace process, and various meetings of the warring Cambodian factions were held in Bangkok and Pattaya. END START The Chatichai government maintained its policy of increased support for the State of Cambodia (SOC) and the Vietnam governments alongside a sterner approach towards the Thai-based Cambodian resistance. END START The policy was a product of Chatichai's influential group of advisers and was reportedly opposed by the Foreign Ministry itself; in August veteran Foreign Minister Siddhi Savetsila was replaced, largely because of his opposition to Chatichai's Indo-China policy. END START Following the military coup in February 1991, foreign policy reverted to a more traditional role. END START Increased support was provided for the Cambodian resistance and Chatichai's aim of turning Indo-China" from a battlefield into a marketplace" was no longer a priority. END START However, relations with Vietnam continued to improve and in June 1991 Gen. Sunthorn visited Hanoi. END START END START END START Chatichai had nevertheless made every effort to maintain traditional close relations with China, the principle patron of the Cambodian resistance. END START In August 1990 Chinese Premier Li Peng visited Bangkok, and in October Chatichai travelled to Beijing. END START In June 1991 President Yang Shangkun of China visited Thailand. END START END START END START Thailand maintained close relations with neighbouring Myanma despite widespread international disapproval of the failure of the ruling junta in Myanma to transfer power to elected civilians. END START Relations between the Thai and Myanman armies were especially close and reportedly extended to co-operation in business dealings and in the suppression of ethnic insurgency along their common border. END START END START END START Relations with the United States remained strong, although evidence emerged of increasing US frustration over the failure of the Thai authorities to guarantee full intellectual property and copyright protection. END START Chatichai visited Washington in June 1990. END START END START END START END START END START ASIA — PACIFIC END START END START END START VIETNAM END START END START END START Area: 329,566 sq km. END START Population: 66,700,000 (1990 UNFPA est.). END START Capital: Hanoi. END START Language: Vietnamese. END START Religion: Buddhism, Daoism, Confucianism, Hoa Hoa, Caodaism and Christianity. END START Armed forces: 1,052,000 (1990). END START Currency: dong (US$1.00=10538 dong as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; NAM. END START END START POLITICAL SYSTEM END START END START END START The Socialist Republic of Vietnam was proclaimed in 1976 after North Vietnam-backed communist insurgents had reunified the country in April 1975 by overthrowing the United States-supported government of South Vietnam after some 16 years of war. END START Under the terms of the 1980 Constitution legislative power is vested in a 496-member National Assembly (Quoc Hoi) elected for a five-year term, which elects a Council of State (the collective presidency) and a Council of Ministers headed by a Chair. END START Real political power rests in the hands of the Communist Party of Vietnam (CPV), which permeates the entire political structure, including the National Assembly, the Council of Ministers and the army. END START END START Main government leaders END START END START END START President of the Council of State: Senior Gen. Vo Chi Cong. END START END START END START Chair of the Council of Ministers (Premier): Vo Van Kiet. END START END START END START Other principal ministers: Pham Van Kai (Vice-Chair); Senior Gen. Dong Sy Nguyen (Vice-Chair); Tran Duc Luong (Vice-Chair); Nguyen Khanh (Vice-Chair and General Secretary of Council of Ministers); Gen. Doan Khue (National Defence); Nguyen Manh Cam (Foreign Affairs); Lt.-Gen. END START Bui Thien Ngo (Interior); Do Quoc Sam (Chair of State Commission for Planning). END START END START Cabinet changes in 1990-91 END START END START END START A reorganization of the Council of Ministers was carried out in April 1990 [see p. 37375]. END START In August 1991 Vo Van Kiet replaced Do Muoi as Premier and the Council of Ministers was again reshuffled [see p. 38390]. END START END START Ruling party END START END START END START The Communist Party of Vietnam (CPV, Do Muoi sec. -gen.) is the only authorized political party; its seventh congress was held in June 1991 [see p. 38271-72]. END START Members of the political bureau: Do Muoi; Le Duc Anh; Vo Van Kiet; Dao Duy Tung; Doan Khue; Vu Oanh; Le Phuoc Tho; Pham Van Kai; Bui Thien Ngo; Nong Duc Manh; Pham The Duyet; Nguyen Duc Binh; Vo Tran Chi. END START END START Elections END START END START END START The National Assembly was elected in April 1987. END START END START 1990/91 OVERVIEW END START END START END START Progress towards political reform under Nguyen Van Linh (then secretary-general of the CPV)" s programme of renovation (doi moi) was effectively halted by apprehension within the higher echelons of the CPV over the momentous events taking place in the Soviet Union and eastern Europe during 1989-91. END START Political reform was a central issue at the party's ninth plenum of the sixth central committee in March 1990 [see p. 37374]. END START Expressing concern over events in eastern Europe, it rejected outright the possibility of major political reforms and a leading reformist Tran Xuan Bach was dismissed from the politburo. END START Following the plenum the leadership adopted a hardline approach to dissent while increasing efforts to regain the support and trust of the large numbers of people who had become disenchanted with the widespread corruption within the government and the party. END START Large numbers of officials were dismissed and fined or imprisoned during 1990 as the result of a major anti-corruption campaign. END START In April the powerful state security apparatus launched a campaign, apparently aimed particularly at southerners, of arresting people who sought to undermine political security. END START Stringent press restrictions imposed in late 1989 were upheld throughout 1990, although the party journal, Tap Chi Cong San, published a series of articles in early 1991 in which prominent intellectuals were highly critical of the party and its line on political reform. END START END START END START The strict anti-reformist line resulting from the ninth plenum was largely absent from the resolutions of the 10th plenum held in December 1990. END START Some analysts pointed to the absence of Le Duc Tho, leader of a conservative faction within the party, who had died in October. END START At the 10th plenum a new draft political platform was released, which some commentators saw as marking a return to central planning, while others saw it as an essentially reformist tract. END START The party's seventh congress was held in late June 1991, after delays attributed to the debate within the party over economic and political policy. END START However, in the event the congress avoided real discussion of the more controversial policy details relating to doi moi. END START Widespread leadership changes were approved, however, including the appointment of Do Muoi as secretary-general in place of Nguyen Van Linh. END START END START Security END START END START END START In a trial held in October 1990, 38 members of the National United Front for the Liberation of Vietnam (NUFLVN) resistance movement were sentenced to long terms of imprisonment after being found guilty of attempting to overthrow the government. END START END START END START Two Roman Catholic activists, Fr Chan Tin and Nguyen Ngoc Lan, were arrested in May 1990 and charged with" anti-government preaching". END START Nguyen Ngoc Lan was subsequently placed under house arrest, while Fr Chan Tin was transferred to a different church. END START In November a Vatican delegation visited Vietnam for the first time. END START END START Economy END START END START END START During 1990 and early 1991 the Vietnamese leadership continued to try to implement the plan initiated by Nguyen Van Linh in 1986 to transform the country's centralized economy to a market-orientated system. END START However, the reform programme was seriously hampered by a series of external factors, including the maintenance of a trade embargo by the United States, the country's ineligibility (since 1985) for credit from the IMF and major reductions in Soviet aid (to approximately US$110 million for 1991). END START Beginning in 1991 Vietnam was also obliged to pay in hard currency, rather than in roubles, at international prices, for goods imported from the Soviet Union. END START In an attempt to compensate for the reduction of Soviet aid the government made serious efforts during 1990 to improve economic relations with its Asian neighbours, including Thailand, Indonesia and Taiwan. END START END START END START The Soviet Union had been by far the largest aid donor to Vietnam since the inception of the republic in 1976. END START As of 1990 Vietnam was estimated to owe the Soviet Union some US$18,350 million, of which US$10,340 million was due to be repaid before 1995. END START The reduction in Soviet exports of materials had a serious impact on heavy industry and textiles manufacturing, both of which had been adversely affected by internal subsidy reductions. END START The reduction of imports of Soviet fertilizer was also seen as a threat to grain production, one of Vietnam's major successes in recent years. END START In 1989 Vietnam had exported 1,400,000 tonnes of rice, making it the third-largest rice exporter in the world. END START Estimates for 1990 suggested that well over 1,400,000 tonnes would be exported in 1990. END START END START END START The reduction in Soviet assistance further increased Vietnam's budget deficit, already large because of the high level of government subsidies to ailing state concerns, and because of measures to offset threatened increases in inflation and unemployment. END START The budget deficit for 1990 was estimated at over 2,000,000 million dong, or some 7.7 per cent of gross domestic product (GDP). END START Unemployment had risen partly because of the demobilization of large numbers of soldiers following the Vietnamese withdrawal from Cambodia in 1989, and also because of the return of workers from eastern Europe. END START In order to combat inflation the government imposed strict controls on foreign currency. END START END START END START Despite the country's economic difficulties, international business interest in Vietnam increased during 1990 in anticipation of the normalization of relations with the USA and the attendant liberalization of international funding. END START In March 1991 Vietnam held its first foreign investment forum. END START One encouraging sign was the intensification of offshore oil exploration; in October 1990 it was announced that a Vietnamese-Soviet joint venture had discovered an oil field (Dai Hung) estimated to contain some 250 million barrels. END START END START END START New banking legislation was introduced in October after a pyramid scheme operated by the Thanh Huong perfume company had collapsed, emphasizing the current banking system's deficiencies, and provoking major public protests in Ho Chi Minh City. END START The managers of the company were sentenced to long terms of imprisonment in October. END START END START Foreign relations END START END START END START During 1990 and the first half of 1991 relations altered dramatically with the Soviet Union, which, struggling with momentous internal political and economic problems, made major cuts in its aid programme to Vietnam, and a cutback in the Soviet naval and air base at Cam Ranh Bay; in October 1990 the Soviet ambassador to Vietnam announced that the Soviet Union had started to withdraw its troops from the base. END START In May 1991 Do Muoi and Nguyen Van Linh visited the Soviet Union for talks centring on economic and foreign relations. END START The drastic change in its relations with the Soviet Union motivated Vietnam to improve relations with China and with the USA. END START END START END START Relations with China improved markedly during 1990. END START In June Chinese Vice-Minister of Foreign Affairs Xu Dunxin visited Hanoi, the highest level visit since 1979. END START In September a secret meeting of government and party leaders was held in China, and later that month Vice-Premier Vo Nguyen Giap openly visited Beijing. END START A further important step towards normalization occurred at the CPV's seventh congress in June 1991 when the long-serving Foreign Minister Nguyen Co Thach, a leading opponent of a pro-Chinese foreign policy, was removed from the politburo (being replaced in his ministerial capacity in August). END START END START END START Relations with the United States also improved during 1990. END START In July USA Secretary of State James Baker announced that the USA would enter into direct dialogue with Vietnam on the issue of Cambodia; the talks opened in New York in August. END START In October Baker and Nguyen Co Thach also held talks in New York, a significant move towards the resumption of diplomatic relations. END START However, in September US President Bush extended the US trade embargo against Vietnam for another year, despite significant congressional and business pressure not to do so [see p. 37712]. END START The following month the USA blocked an International Monetary Fund (IMF) move to formulate a structural adjustment programme for Vietnam. END START During his visit to the USA in October Thach also visited Washington for talks with Gen. John Vessey, Bush's special envoy on US servicemen missing in action (MIA) in Indo-China. END START Joint US-Vietnamese search missions for MIAs continued throughout 1990 and into 1991, and in April 1991, following a visit by Vessey to Hanoi, it was agreed that the USA would establish a" temporary office" in Hanoi to investigate outstanding MIA cases. END START Also in April the US government proposed a four-stage programme for the resumption of diplomatic relations, conditional on a diplomatic settlement of the Cambodian conflict and on significant progress on the MIA issue [see p. 38141]. END START END START END START Japan remained Vietnam's largest non-communist trading partner in 1990. END START In October Foreign Minister Nguyen Co Thach visited Tokyo, the highest level visit by a Vietnamese official since re-unification in 1976. END START In June 1991 the then Japanese Foreign Minister, Taro Nakayama, visited Vietnam. END START END START END START President Suharto of Indonesia visited Vietnam in November 1990. END START In February 1991 Malaysia became the first ASEAN country to open a diplomatic office in Ho Chi Minh City, the country's commercial capital. END START END START END START In October 1990 the European Communities announced the restoration of diplomatic relations with Vietnam. END START END START END START END START END START ASIA — PACIFIC END START END START END START APEC END START END START END START Full title: Asia-Pacific Economic Co-operation. END START Date of foundation: November 1989. END START Objective: To promote multilateral trade in the Asia-Pacific region. END START Member states: Australia, Brunei, Canada, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, United States. END START END START END START Senior officials from ASEAN and other Pacific rim countries met in Canberra, Australia, in November 1989 to inaugurate APEC. END START In an opening address to the conference, Australian Prime Minister Bob Hawke stressed that APEC had no" hidden agenda" and was a genuine attempt to encourage" open, multilateral trade" in order to prevent the world economy from fragmenting into" defensive trading blocs". END START END START END START The second ministerial meeting of APEC, held in Singapore on July 30-31, 1990, was a hesitant affair from which nothing concrete emerged. END START Promises were made to conduct" urgent reviews" of negotiating positions to facilitate a breakthrough at the deadlocked" Uruguay Round" of GATT negotiations. END START Members also set themselves the task of finding an acceptable formula to bring the" three Chinas" into the grouping, although Chinese Premier Li Peng stated in August that China was not prepared to join the organization as one of" three Chinas" [see pp. 37613; 37656]. END START END START END START END START END START ASIA — PACIFIC END START END START END START ASEAN END START END START END START Full title: Association of South-East Asian Nations. END START Date of Foundation: August 1967. END START Objectives: Acceleration of economic progress and stabilization of the south-east Asian region. END START Member states: Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. END START Secretary-General: Rusli Noor. END START END START 1990/1991 OVERVIEW END START END START END START The United States decision in July 1990 to withdraw its support from the seating of the rebel National Government of Cambodia at the UN and to enter into dialogue with Vietnam came as an immense shock to the ASEAN members [see p. 37598]. END START The conflict in Cambodia, and in particular the US policy change, inevitably dominated the 23rd annual ASEAN Foreign Ministers' meeting on July 24-25 in Indonesia [see p. 37613]. END START The new US position led to a closing of ASEAN ranks, with little evidence of the internal quarrelling over Cambodia which had surfaced at the 22nd annual meeting of Foreign Ministers in Brunei in 1989. END START END START END START The question of US military bases in Asia remained a source of intra-ASEAN tension during 1990. END START Malaysia, and to a lesser extent Indonesia, expressed concern at a November agreement which provided for increased US use of Singapore's military facilities. END START Unease over the bases issue did not, however, frustrate Singaporean efforts to promote an innovative economic" growth triangle" involving itself, Johore state in Malaysia and Riau province in Indonesia. END START Meanwhile negotiations between the US government and the Philippines over the future of Clark air base and of Subic Bay naval base remained effectively deadlocked, with the Philippines government continuing to insist that it would take over the bases when the current agreement expired in 1991. END START [For compromise agreement announced in October 1991 see p. 38534.] END START END START END START In October 1990 ASEAN economic ministers convened in Indonesia for their 22nd annual meeting. END START The ministers amended the terms of the ASEAN industrial joint-venture (AIJV) plan to include allowing non-ASEAN investors to hold up to 60 per cent of equity. END START They also adopted a new plan for common effective preferential tariffs on selected industrial products" to facilitate the free flow of goods within ASEAN". END START END START END START In March 1991 President Suharto of Indonesia, Singapore Prime Minister Goh Chok Tong, Sultan Sir Hassanal Bolkiah of Brunei and Malaysian Prime Minister Mahathir Mohamed convened in Bali for a seminar, which was attended by over 1,000 Asian and American delegates, with the theme" ASEAN and the world economy" [see p. 38101]. END START A major topic of discussion at the seminar was Mahathir's proposal, made in January, for an East Asian Economic Grouping (EAEG). END START END START END START Mahathir's proposal was one of a number of plans for enhanced intra-ASEAN economic co-operation which came under discussion at the 24th annual meeting of ASEAN Foreign Ministers held in Malaysia in July 1991 [see p. 38345-46]. END START The issue dominated the meeting and discussion on the ongoing peace process in Cambodia was relegated to second place. END START For the first time the Soviet Union and China were represented at the meeting. END START South Korea was accepted as ASEAN's seventh full" dialogue partner" at the post-ministerial conference. END START END START END START END START END START ASIA — PACIFIC END START END START END START SAARC END START END START END START Full title: South Asian Association for Regional Co-operation. END START Foundation: December 1985. END START Status: Regional co-operation association. END START Members: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. END START Chair: Maumoon Abdul Gayoom (Maldives). END START Sec. -Gen.: K. K. Bhargava (India). END START END START END START The fifth summit meeting of the SAARC was held in the Maldives in November 1990 [see p. 37856-57]. END START END START END START The SAARC council of ministers met in the Maldives on July 3-4, 1991, when it was agreed that the sixth SAARC summit would take place in Sri Lanka in November 1991. END START The ministers agreed to take" co-ordinated action" to combat the menace of terrorism which they said threatened to destabilize the South Asian region. END START The ministers also agreed to an Indian proposal that each member state should give the other most-favoured-nation treatment in trade, manufacturing services and tourism. END START END START END START END START END START ASIA — PACIFIC END START END START END START AUSTRALIA END START END START END START Area: 7,682,300 sq km. END START Population: 16,900,000 (1990 UNFPA est.). END START Capital: Canberra Language: English. END START Religion: Christianity (76% — Anglican Roman Catholic, other Protestant, Orthodox); most of the rest do not profess a religion. END START Armed forces: 68,100 (1990). END START Currency: Australian dollar (US$1.00=A$1.2481 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; APEC. END START END START POLITICAL SYSTEM END START END START END START The head of state of Australia, an independent member of the Commonwealth, is the British sovereign, represented by a Governor General. END START Under the Federal Constitution which came into force in 1901, legislative authority within the Commonwealth of Australia is vested in a bicameral Federal Parliament consisting of the Senate whose 76 members (12 from each of the country's constituent states and two each for the Northern Territory and the Capital Territory of Canberra) are directly elected for a six-year term and retire by rotation, one-half from each state on June 30 of each third year; and the 148-member House of Representatives elected for three years; each state has its own legislature, government and constitution. END START END START Main government leaders END START END START END START Governor General: Bill Hayden. END START END START END START Prime Minister: Paul Keating (who replaced Bob Hawke — in office since March 1983 — in December 1991). END START END START END START Other principal ministers: Gareth Evans (Foreign Affairs and Trade); Brian Howe (Health, Housing and Community Services); John Dawkins (Treasurer); John Button (Industry, Technology and Commerce) END START END START State Premiers END START END START END START New South Wales — Nick Greiner (Lib); Queensland — Wayne Goss (ALP); Tasmania — Michael Field (ALP); Victoria — Joan Kirner (ALP); South Australia — John Bannon (ALP); Western Australia — Carmen Lawrence (ALP). END START Chief Minister of the Northern Territory — Steve Hatton (ALP). END START END START 1990-91 Cabinet changes END START END START END START A major reshuffle took place in April 1990 [see p. 37378]; a reshuffle was occasioned by the resignation of Paul Keating as Treasurer and Deputy Prime Minister in June 1991 [see p. 38294]. END START END START Ruling party END START END START END START Australian Labor Party (ALP) (John Bannon nat. pres.). END START END START Other main political parties END START END START END START Australian Democrats Party (Janet Powell l.); END START Green Party; Liberal Party of Australia (John D. Elliott fed. END START pres.); END START National Party of Australia (Stuart McDonald fed. END START pres.). END START END START Elections END START END START END START In the general election of March 1990 the ALP was narrowly returned for a fourth successive term [see pp. 37320-21; for final Senate results see p. 37876]. END START END START 1990/91 OVERVIEW END START END START END START Politics END START END START END START In March 1990 the ALP (then led by Bob Hawke) won an unprecedented fourth consecutive federal election victory. END START By the middle of the year the ALP was also in control of every state government except New South Wales, where it had lost power in 1988. END START Superficially, the party's position looked unassailable, and commentators repeatedly claimed that, under Hawke's premiership, the ALP had been transformed into the natural party of government. END START During 1990 and the first half of 1991, however, this contention looked increasingly mistaken as, within weeks of the election victory, both Hawke and his party were recording high levels of public dissatisfaction in opinion polls. END START This was increased by the growing popularity of new Liberal-National parliamentary coalition leader John Hewson, who replaced Andrew Peacock after the election [see p. 37378]. END START END START END START Careful analysis of the electoral results showed that the ALP's narrow victory — its majority in the House of Representatives fell from 18 to eight and it suffered a negative swing of almost 2 per cent — had been achieved through skilful targeting of marginal constituencies and preference voters. END START The ALP finished with 0.2 per cent less of the two-party preferred vote than did the opposition coalition, and in at least 10 instances the ALP won because they received the second preference votes of supporters of the Greens. END START (The defeat of National Party leader Charles Blunt was a direct result of the transference to Labor of second preference Green votes.) END START END START END START The National Party's poor showing in the elections — it lost three seats to the ALP — came despite the economic problems affecting much of rural Australia. END START As such, its loss of support was part of the continuing legacy of the Fitzgerald inquiry into corruption within the Queensland government, where the Nationals had been in power for 30 years until defeated in 1989. END START The inquiry had been established in 1987 by National Party state Premier Sir Johannes Bjelke Petersen as a sop to the opposition, but gradually developed into a thorough examination of institutionalized corruption within the state. END START By mid-1991 more than 200 people — including police officers, judges, businessmen and former members of Sir Joh's Cabinet — had been charged with criminal offences. END START In early August 1991 the former police commissioner, Sir Terence Lewis, was sentenced to 14 years' imprisonment [see p. 38398]. END START The trial of Sir Joh himself was due to begin later in the year. END START END START END START The Democrats achieved their best ever showing in the general election — polling 11 per cent of the vote — and retained the balance of power in the federal Senate. END START In so doing, however, the party lost its leader, Janine Haines, who gave up her seat in the Senate in an unsuccessful attempt to win a seat in the House of Representatives (in which the party had no members). END START She was replaced as party leader by Senator Janet Powell. END START END START END START Although Hawke retained much of his former Cabinet following the general election, one notable absence was that of former Finance Minister Peter Walsh who retired from government because he felt that the Hawke administration lacked sufficient political will to tackle the country's pressing financial problems [see p. 37378]. END START Federal Treasurer Paul Keating retained his post and added to it the title of Deputy Prime Minister, thereby increasing speculation that he would succeed Hawke as Prime Minister [see above]. END START END START END START On Sept. 24 a specially convened ALP party conference in Canberra reversed the party's traditional hostility to privatization by backing the government's plans to allow a degree of competition for Telecom, the state-owned telecommunications authority, and to sell Australian Airlines (the state-owned domestic airline) and 49 per cent of Quantas, the national overseas carrier. END START It also approved the partial privatization of the federal government bank, the Commonwealth Bank, established 78 years earlier as Labor's first step into public ownership. END START On Nov. 8 Hawke stated that the telecommunications market would be opened to unlimited competition by mid-1997. END START END START END START Hawke achieved a further personal triumph on Oct. 31 when most of his plans for constitutional and structural reform were approved in principle by representatives of the country's eight state and territory governments. END START The reforms, which were discussed at a two-day conference in Brisbane, were designed to eliminate regional differences in regulations and services. END START The key to the achievement of a consensus lay in Hawke's agreement to increase the financial autonomy of individual states by expanding their powers to raise taxes and by loosening controls on how they spent money transferred to them by the federal government. END START In return the states agreed to co-operate with the federal government in reducing duplication of health and welfare services, cutting losses in state-owned businesses, co-ordinating infrastructure spending, and harmonizing regulations in areas such as environmental protection and professional qualifications. END START The most immediate impact would be on transport, through the creation of a national rail freight corporation and a national registration and taxation scheme for heavy vehicles. END START Both federal and state leaders at the conference warned, however, that the reforms would face stiff opposition from vested interests in state governments, public service, trade unions and the business community. END START END START END START On Nov. 20, 1990, the government announced an agreement with the trade unions, estimated to cost A$1,000 million per year, whereby it would increase tax cuts in return for continued wage restraint. END START The deal, which was designed to reduce inflation, was the latest in a series of accords between the ALP government and the trade union movement. END START A prices and incomes accord, negotiated in 1983, had (with several revisions) covered the whole of the Hawke government's period in office and was credited by its advocates with having created 300,000 jobs, reduced real unit labour costs and underpinned one of the longest periods of industrial harmony in the country's history. END START In the face of persistent inflation (more than 7 per cent per annum in 1990) many commentators predicted the imminent collapse of the accord. END START END START END START As the recession deepened [see below], the Hawke government began 1991 some 18 percentage points behind the opposition in opinion polls, raising questions concerning Hawke's future as leader, particularly as Keating had let it be known at a National Press Club dinner in December that he believed he would make a better Prime Minister than Hawke. END START On June 3 the rivalry between the two men culminated with a challenge by Keating to Hawkes' leadership. END START Hawke won the ballot by 66 votes to 44, but the allegations concerning his judgment and honesty which were highlighted by the challenge left him politically damaged [see p. 38294; for Hawke's eventual defeat by Keating see p. 38675]. END START Keating was replaced as Treasurer by Kerin. END START END START ALP's position in the states END START END START END START By mid-1991 the ALP remained deeply unpopular at federal level and in all the states except Queensland, where the party continued to benefit from reaction to the corruption of the former National Party government [see above]. END START In Victoria the opinion polls suggested that the ALP would be defeated at the next election. END START State Premier Joan Kirner had inherited office when John Cain was forced to resign in August 1990 after a Royal Commission inquiry into the collapse of the merchant banking arm of the state bank, Tricontinental, revealed a record of financial mismanagement, but she had been unable to reverse the consequent unpopularity of her party. END START In Tasmania there was increasing friction between the minority ALP administration and the Green Party legislators on whose support it depended. END START In South Australia another Royal Commission had raised doubts concerning the judgement of ALP Premier Bannon, the national party president, who was forced to provide a A$970 million rescue package for the state bank only months after he had assured the legislature that he had every confidence in the bank. END START END START END START The party was in most trouble in Western Australia, where in November 1990 the state government was forced to establish a Royal Commission to examine claims of corrupt links between politicians, bureaucrats and businessmen. END START State Premier Carmen Lawrence, who had resisted such a move since taking office at the beginning of 1990 [see p. 37250], finally conceded that an inquiry similar to the Fitzgerald inquiry was necessary to restore public confidence in the electoral system. END START Although the investigation was to cover the period from 1980 onwards, most of the allegations related to the so-called" W. A. Inc." period from 1987 to 1989, when ALP state governments led successively by Brian Burke and Peter Dowding had sought to promote economic development through close links with local entrepreneurs. END START Among the financial disasters of this policy were the state's attempt to rescue the failed Rothwell merchant bank, and a joint venture with the Bond corporation involving a petrochemical plant which was never built. END START The cost to the public of the mismanagement was estimated at A$400 million by Lawrence and at A$900 million by the opposition. END START As the inquiry progressed its revelations increased the unpopularity of the ALP state government, which was due to face re-election by 1993. END START In mid-1991 the ALP lost a by-election in Geraldton (which it had held for more than 70 years), winning only 16.7 per cent of the primary vote and recording an unprecedented negative swing of 30 per cent. END START On April 29 Burke resigned as Australian ambassador to Ireland and the Vatican. END START END START END START Although the inquiry was still in its early stages by mid-1991, there were suggestions that its impact would not be limited to Western Australia. END START Evidence given on April 11 by Laurie Connell, the former chairman of Rothwells, alleged that at an ALP fund-raising lunch in June 1987 Hawke had promised that the federal government would not abolish the company tax exemption for gold-mining companies. END START Hawke immediately denied the allegation to the federal parliament, claiming that he had given no such promise and that a decision about the tax was not made until a month after the lunch. END START Almost immediately it was revealed that he had told a radio interviewer on the morning of the lunch that there would be no such tax on gold-mining companies, and he was forced to return to parliament later on April 11 to admit that his memory of events had been mistaken. END START END START Aboriginal issues END START END START END START The World Council of Churches issued a report on Feb. 4, 1991, which criticized the treatment of the Aboriginal population (some 1.5 per cent of the total population). END START The report accused the government of abdicating its responsibility, and society of" justifying the continued systematic destruction of an indigenous culture, language and spirituality". END START It concluded that" the impact of racism by Australians on the aboriginal people in this nation is not just horrific, but genocidal and must be addressed". END START END START END START The same month Medical Journal of Australia published a report which found that the suicide rate for Aborigines had risen 10-fold since 1981, and was six times higher than that for other Australians. END START In 1988 there were 105.3 suicides per 100,000 Aborigines in South Australia, compared with only 10.1 per 100,000 in 1981. END START END START END START In May Aboriginal campaigners persuaded Edinburgh University, in Scotland, to return the remains of more than 300 Aborigines from its anthropological collection in order that they could be reburied according to Aboriginal traditions. END START The decision marked an important victory in an ongoing campaign to secure the return of collections of Aboriginal remains by institutions throughout Europe. END START END START Economy END START END START END START Corporate failures END START END START END START Business confidence was undermined in 1990 by a series of spectacular corporate failures. END START Heavy corporate borrowing in the 1980s (encouraged by government deregulation) together with a sustained period of high interest rates and, from 1990, with a contracting economy, proved a fatal combination for many companies. END START Several high-profile companies collapsed, including Qunitext, a television and leisure resort company headed by Christopher Skase; Rothwells, the Perth-based merchant bank; and the Hooker Corporation, a property and retail group headed by George Herscu. END START The largest failure involved the Bond Corporation [see p. 37877]. END START It was reported on Oct. 3 that in the previous two weeks Australian groups had recorded combined losses of around A$6,500 million. END START END START END START There was also turmoil in the media sector. END START In September the television station Network Ten went into receivership with debts of A$445,000,000, while the largest network, Nine, owned by Alan Bond, was bought by Kerry Packer, the head of Consolidated Press Holdings. END START The John Fairfax Group, burdened by debts of A$1,700 million, went into receivership on Dec. 9. END START The country's other major media group, News Corp., headed by Rupert Murdoch, admitted to short-term debts of A$508,650,000 at the end June 1990. END START Cost cutting measures employed by the company included the merger of two Melbourne newspapers (the Sun News-Pictorial, a morning tabloid, and the Herald, an evening broadsheet) and two in Sydney (The Daily Telegraph, a morning tabloid, and the Daily Mirror, an evening tabloid). END START The year ended with News Corp. negotiating a US$8,000 million debt restructuring package with a group of 150 banks. END START END START END START Personal misfortune also struck several of Australia's most renowned corporate entrepreneurs. END START Robert Holmes à Court died of a heart attack on Sept. 2, while on Oct. 7 Packer suffered a massive heart attack whilst playing polo. END START Bond was arrested on Dec. 6 following an investigation into the 1988 collapse of Rothwells Ltd., a merchant bank run by his business associate, Laurie Connell [see p. 37920]. END START On the same day Herscu was found guilty of paying a A$100,000 bribe to a Queensland Cabinet Minister in 1983. END START Skase was charged with two counts of corruption in May 1991, and was declared bankrupt on June 13. END START END START END START In early October 1990 the government attempted to restore confidence by announcing tougher regulations to limit the scope of the sort of corporate flamboyance which had characterized much of the 1980s. END START The measures included increased fines for insider trading. END START On Oct. 15 the Reserve Bank of Australia attempted to counter collapsing confidence by cutting official interest rates by one percentage point to 13 per cent. END START The Commonwealth Bank immediately announced that its rate for leading corporate customers would be reduced from 16.5 per cent to 15.5 per cent. END START After 18 months of monetary restraint, it was the fifth cut to have been effected since the beginning of 1990 (by the end of the year the basic rate had been reduced to 12 per cent). END START Treasurer Keating had used high interest rates as his main weapon in the struggle to reduce the country's current account deficit, but they had been for blamed for contributing to the loss of business confidence. END START END START Confirmation of economic recession END START END START END START Figures issued at the end of November 1990 confirmed that the economy was in recession. END START Real gross domestic product (GDP) fell by 1.6 per cent in the three months to September, following a fall of 0.4 per cent in the June quarter. END START Taken together, the two quarters showed the weakest rate of growth for a six-month period since March 1972. END START Keating described the situation as" the recession that Australia had to have" in order to reduce its huge current-account deficit which had exceeded A$21,000 million in 1989/90. END START Nevertheless, the Treasurer suggested that the worst was probably over, and that the recession would not be as deep as that of 1982/83 when GDP had declined for four consecutive quarters and both inflation and unemployment had exceeded 10 per cent. END START END START END START By the end of February 1991 unemployment had reached 738,000, a six-year high at 8.7 per cent. END START Inflation was close to 7 per cent and the current-account deficit was running at an annual rate of around A$17,000 million. END START Although Keating once again expressed optimism that the recession was bottoming out, he ruled out any further cuts in interest rates in the immediate future. END START END START Trade liberalization measures END START END START END START On March 12 Hawke announced a package of market-liberalization measures designed to make the economy more competitive and to reduce the current account deficit. END START The centrepiece of the package involved cuts in average import tariffs from 15 per cent to 5 per cent by 1996. END START Tariffs on passenger vehicles were to be reduced from 35 per cent in 1992 to 15 per cent by 2000, and protection for textiles, clothing and footwear was to be cut from a maximum of 55 per cent to 25 per cent. END START Import quotas would be abolished by 1993. END START Announcing the measures to parliament, Hawke stated that" the days of our being able to hitch a free ride in a world clamouring, and prepared to pay high prices, for our rural and mineral products are behind us". END START END START END START Many commentators criticized the package, however, for its failure to include a reform of the labour market or the public sector. END START It was not unusual for a single employer to have to negotiate with five or more of the more than 300 trade unions. END START Companies were also bound to match wages and conditions laid down in federal (and sometimes state) awards for their industry. END START This situation was widely held to be responsible for Australia's slowness in adopting new technology — automation in the motor industry was far less advanced than in western Europe — and for persistently low levels of labour productivity. END START An OECD survey suggested that output per worker in the public utilities was less than half the average of those of the organization's 24 members. END START With nationalized industries accounting for more than 25 per cent of the country's non-housing investment (compared with less than 10 per cent in the United States and Japan), the efficiency of the public sector had a considerable impact throughout the whole of the economy. END START END START Further cuts in interest rates — Replacement of Treasurer END START END START END START There was a further easing of monetary policy on April 4, 1991, when interest rates were cut by half a percentage point to 11.5 per cent. END START Australia's largest private bank, Westpac Banking Corp., immediately lowered its prime rate by half a percentage point to 15 per cent. END START A further cut of 1 per cent was announced by the Australian Reserve Bank on May 16, following the release of figures for the three months to March which showed the annualized rate of inflation had fallen from 6.9 per cent to 4.9 per cent, the lowest for nine years. END START Less welcome news for the government was that unemployment had risen to 844,000 (9.9 per cent of the workforce) by the end of April, the worst figure since 1983, the year that the ALP had come to power. END START END START END START In early June Keating unsuccessfully challenged Hawke for the ALP leadership, in a move which most commentators agreed left Hawke politically damaged. END START Hawke did receive a boost from the unemployment figures, however, which showed that there had been a fall in May to 9.4 per cent, the first reduction for five months. END START The country's current-account deficit for the first 10 months of the fiscal year also showed a fall of 27 per cent compared with the same period in 1989/90. END START The figure to the end of April 1991 was A$13,990 million compared with A$19,000 million to the end of April 1990. END START In a series of interviews on June 12 the new Treasurer, John Kerin, stated his commitment to his predecessor's tight budgetary policies, and reaffirmed the government's inflation target of 4 per cent for 1991/92. END START END START Disasters END START END START END START Serious bush fires menaced the Sydney suburb of Allambie Heights on Dec. 25, 1990, destroying several homes. END START Officials declared the north-east coast of Queensland a disaster area on Dec. 26, after cyclone" Joy" inflicted damage estimated at A$40 million with winds of up to 145 miles per hour. END START More than half of the state was again declared a disaster area in April 1991 when several days of heavy rains produced severe flooding for the second consecutive year. END START In addition to causing severe damage, the floods were responsible for the deaths of at least five people. END START END START Foreign relations END START END START END START Australia sent two frigates and a support ship to the Gulf to assist the multinational blockade of Iraq, following its invasion of Kuwait in August 1990. END START END START END START The government reviewed its relations with Taiwan, but decided to maintain its current policy of recognizing only the People's Republic of China as the sole legitimate government of China, acknowledging China's claim that Taiwan constituted a province of the mainland. END START In November 1990, however, the government acknowledged the growing trade links between Australia and Taiwan by announcing its intention to create a Taiwan Market Service in Australia, to encourage the establishment of direct air links between the two countries, and to create an Australian Education Centre in Taipei. END START END START END START The planned multi-function polis (MFP), a Japanese-inspired" city of the future" to be built in Adelaide, continued to prove controversial. END START The project was heavily criticized by the Liberals in the 1990 election campaign, and opinion surveys showed that there were considerable public misgivings about the enterprise, and the government worked hard in the post-election period to increase investment in the project from countries other than Japan. END START END START END START END START END START ASIA — PACIFIC END START END START END START NEW ZEALAND END START END START END START Area: 267,844 km. END START Population: 3,400,000 (1990 UNFPA est.). END START Capital: Wellington. END START Languages: English (official), Maori. END START Religion: Christianity (75%). END START Armed forces: 11,600 (1990). END START Currency: dollar (US$1.00=NZ$1.7612 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB; APEC. END START END START POLITICAL SYSTEM END START END START END START The head of state of New Zealand, an independent member of the Commonwealth, is the British sovereign, represented by a Governor-General. END START Legislative authority is vested in a unicameral House of Representatives which consists of 97 members who are popularly elected for up to three years. END START The Prime Minister and Cabinet are responsible to the legislature and are appointed by the Governor-General acting on its advice. END START END START Main government leaders END START END START END START Governor-General: Dame Cath Tizard. END START END START END START Prime Minister: Jim Bolger (since October 1990; also Minister in Charge of the Security Intelligence Service). END START END START END START Other principal ministers: Don McKinnon (Deputy Prime Minister; External Relations and Trade; Foreign Affairs); Bill Birch (Labour and Immigration); Ruth Richardson (Finance). END START END START 1990/91 Cabinet changes END START END START END START A Cabinet reshuffle took place in January 1990 [see p. 37189]; in September Mike Moore replaced Geoffrey Palmer as Prime Minister [see pp. 37716-17]; in October the general election was followed by the formation of a National Party government [see p. 37781]. END START END START Ruling party END START END START END START New Zealand National Party (conservative, one of the country's two main parties, James G. (Jim) Bolger l.; John G. Collinge pres.; Cindy Flook (sec. -gen.). END START END START Other main political parties END START END START END START Democratic Party (also known as New Zealand Democratic Party, NZDP; founded in 1953 as New Zealand Social Credit Political League; Garry Knapp l.; Chris Leitch pres.); END START Green Party of Aotearoa (The Greens; founded 1972 as New Zealand Values Party, Chris Thomas and Wendy Lynch conveners); Labour Party (democratic socialist, and one of the country's two main parties, Michael Moore parl. l.; Ruth Dyson pres.; Anthony Timms gen. sec.); END START New Labour Party (NLP) (Jim Anderton l.); END START New Zealand Self-Government Party (Mana Motuhake o Aotearoa; seeks greater political and economic autonomy for the country's 400,000 indigenous Maoris, Matia Rata l.). END START END START Elections END START END START END START The general election of Oct. 27, 1990, was won by the Nationalist Party led by Jim Bolger, with 48 per cent of the vote and 67 seats [see p. 37781]. END START END START 1990/91 OVERVIEW END START END START END START On Oct. 27, 1990, the Labour Party, by then led by Mike Moore, suffered a crushing general election defeat at the hands of the conservative National Party. END START The result had been widely predicted by opinion polls which showed that the Labour Party (in government since 1984) had lost the confidence of the electorate. END START One of the chief reasons for its loss of support had been the protracted struggle between Prime Minister David Lange and his Finance Minister, Roger Douglas, the architect of Labour's laissez faire approach to the economy, colloquially known as" Rogernomics". END START The conflict led to Douglas's dismissal from the Cabinet in December 1988 and Lange's resignation as Prime Minister in August 1989 when Douglas was voted back into the Cabinet by the Labour caucus. END START END START END START Lange's replacement as party leader and Prime Minister, Geoffrey Palmer, lacked the authority and style to improve Labour's standing with the voters. END START With the election due on Oct. 27, the latest date allowed by the Constitution, the party took a final desperate gamble by persuading Palmer to resign in September [see pp. 37716-17] and replacing him with the more dynamic Mike Moore. END START The new leader succeeded in reducing the huge gap between the two parties, and announced a hastily concocted" growth agreement" with the Council of Trade Unions which was designed to lay the ghost of" Rogernomics". END START It proved to be too little, too late, however, and Labour emerged from the election with fewer MPs than at any time for 50 years. END START END START END START Although Labour's defeat was crushing (its share of the vote dropped by almost 13 percentage points), the National Party victory was less decisive than it first appeared. END START The party increased its share of the vote by almost 4 percentage points, but nearly 7 per cent of votes cast went to the Greens and more than 5 per cent to the New Labour Party. END START Nevertheless, the first-past-the-post electoral system ensured that only one member of the minor parties was elected (the leader of the NLP, who retained the seat he already held) and that the National Party achieved a proportion of MPs considerably greater than that of its share of the vote. END START END START END START The government's economic policy, including severe cutbacks in the welfare state and extensive deregulation [see below], exacerbated existing divisions within the National Party which had been concealed but not resolved in the run-up to the election. END START The size of Bolger's election victory also meant that the government had a somewhat unwieldy caucus of backbenchers with widely differing views on the economy. END START Although the party's leadership was committed to Richardson's economic strategy, many National Party MPs advocated a more Keynesian approach involving greater government spending to stimulate economic growth and combat unemployment. END START This latter group was personified by Winston Peters, a young, articulate, part-Maori MP, who, prior to the election, had characterized his party's official economic policy as" drivel". END START Brought into the Cabinet by Bolger, Peters toned down his criticism but made no secret of his opposition to the policy of spending cuts. END START Opinion poll results showed that he was consistently more popular than Bolger with the electorate, and many commentators expected him to launch a challenge for the party leadership. END START END START Defence END START END START END START A White Paper on defence released on May 21, 1991, suggested that future defence considerations would be based less on the South Pacific, as had been the case over the last six years, and more on New Zealand taking an active part in global security matters. END START It suggested that defence should be based on" self-reliance and partnership" and a" new internationalism" designed to correspond with the country's current trading patterns. END START According to the White Paper, in addition to maintaining its defence relationship with Australia, the government's objectives were to re-establish an" effective defence relationship" with traditional partners including the USA and the UK, and to maintain and develop defence co-operation with ASEAN. END START END START Economy END START END START END START The new government inherited an economic position which, as measured by macro-economic indicators, was far from encouraging. END START The economy had grown by only 0.6 per cent over the four years to the end of 1990, and actually shrank by 0.3 per cent during 1990 itself. END START The current account had been in deficit for the last 17 years and by late 1990 constituted around 7 per cent of gross national product (GNP). END START External debt amounted to 73 per cent of gross domestic product (GDP) in December 1990. END START Unemployment stood at 9 per cent as according to international criteria but at 14 per cent by domestic criteria. END START END START END START The principal cause of New Zealand's economic problems was its failure to respond quickly enough to the post-war decline in prices for agricultural commodities, which constituted almost two-thirds of exports. END START In an attempt to continue funding its advanced welfare state, successive governments had borrowed overseas to finance budget deficits, while also presiding over one of the most heavily regulated economies in the capitalist world. END START Adversely affected in the 1970s by the United Kingdom's entry to the European Communities and by fluctuating oil prices, New Zealand declined from a position of having the third highest standard of living (as measured by per capita GDP) in 1951 to 15th in 1971 and 23rd by 1991. END START Faced with this inexorable decline, the Labour Party from 1984 onwards had embarked upon a massive programme of deregulation which included (i) scrapping import licensing; (ii) reducing or abolishing tariffs or export subsidies; (iii) floating the currency; (iv) deregulating the banking sector; (v) reforming the tax system; (vi) establishing an independent central bank; and (vii) privatizing large state-owned companies including Air New Zealand, NZ Telecom, NZ Steel, the government-owned energy group, Petrocorp, and two banks. END START END START END START The National Party's economic strategy, designed largely by Finance Minister Ruth Richardson, planned to continue Labour's tight budgetary and monetary controls, while also undertaking further privatization and deregulation. END START Richardson stated that her aim was the reduction of public expenditure from its current level of 41.7 per cent of GNP to the 1970 level of 30 per cent by the end of the decade. END START During the election campaign the party had asserted that the advanced welfare state was safe in its hands, but this promise quickly appeared to be a less than certain guarantee of the continuation of welfare programmes which in some cases had been in effect since the 1930s. END START Soon after taking office the National Party government estimated that the budget deficit by the end of fiscal 1991/92 (June 1992) would be NZ$3,700 million, rising to NZ$5,200 million at the end of fiscal 1992/93. END START END START END START On Dec. 19, 1990, Richardson presented a mini-budget which contained cuts in government spending on health, education, housing, defence and home loan subsidies to a total value of NZ$601 million in the current fiscal year, and NZ$2,370 million in the fiscal year ending June 1992. END START END START END START The cuts included reductions in unemployment and family benefits and in medical and sickness payments, and moves towards means-testing and charges for medical and educational services. END START Among the casualties was the family benefit (currently NZ$6 per week for each child), an icon of the welfare state since 1946. END START Basic unemployment benefits were reduced, while other supplementary benefits for unemployed people, for single parents and for the sick were to be subjected to means testing. END START Those made redundant were to wait for 26 weeks before being entitled to unemployment benefit. END START END START END START The mini-budget was accompanied by the announcement of legislation aimed at extensive deregulation of the labour market. END START The changes, to be implemented in May 1991, involved the scrapping of the country's mandatory system of conciliation and arbitration which had been in operation since 1984. END START Compulsory membership of a trade union, in force since 1936 with only a brief interlude, was to be abolished, and employers were to be released from their obligation to recognize or negotiate with unions or to be bound by pay awards negotiated at a national level. END START Employees and employers were to decide their own bargaining mechanisms in the form of individual or collective contracts, which could prohibit strikes and lockouts, and would be enforceable in the courts. END START END START END START The government promised in February 1991 to continue with the sale of state assets. END START The list of concerns to be privatized included the Bank of New Zealand (in which the government held a 63 per cent stake), the Electric Corp (which produced and distributed the electricity supplies), and the Land Corp (which controlled government land holdings). END START No timetable for the sales was announced. END START END START END START In March Richardson announced a NZ$750 million increase in government borrowing to fund a revised budget deficit of NZ$1,400 million for the year ending June 1991. END START Lower than expected corporate tax revenues and rising welfare expenditure were held to be accountable for the increased projection. END START Nevertheless, an OECD report published in the same month estimated that there were signs of a modest economic improvement. END START Inflation had fallen from a high of 15.7 per cent in 1987 to 4.9 per cent at end-1990, but at the cost of falling output and a sharp rise in unemployment. END START The report predicted economic growth of 1.5 per cent in 1991, rising to 2.3 per cent in 1992, driven by growth in investment and exports. END START It was predicted that inflation would continue to fall, but that consumption would remain depressed, with a continuing high level of unemployment and of current-account deficit. END START END START END START On April 1, as most of the welfare cuts were implemented, there were widespread protests throughout the country involving up to 100,000 people, the largest demonstrations since those in 1981 against the South African rugby tour. END START Effigies of Bolger and Richardson were burned in Auckland [see p. 38153]. END START END START END START Bolger claimed success for Richardson's strategy when in mid-1991 the inflation rate was shown to have fallen to a 25-year low of 2.8 per cent, compared with 7.6 per cent a year earlier. END START Rising unemployment and continuing high interest rates, however, resulted in declining National Party support. END START Opinion polls in June 1991 suggested that support for the National Party had fallen to 35 per cent, while that for the Labour Party had risen to 42 per cent. END START END START Foreign relations END START END START END START Relations with the United States had been severely strained by the Labour government's ban on nuclear-powered or nuclear-armed ships entering New Zealand ports or waters. END START The ban led to New Zealand's suspension from ANZUS, the trilateral defence treaty signed in 1951, and an effective freezing of relations with the USA, including an end to the exchange of intelligence information and the holding of joint military exercises. END START The National Party had in March 1990 committed itself to maintaining the ban which then ceased to be a domestic political issue. END START After the election the new government in November 1990 again expressed its support for the ban and confirmed that it remained in place. END START Nevertheless, Bolger also made no secret of his desire to improve relations with the USA. END START During the Gulf war New Zealand dispatched two army medical teams and two air force Hercules transport aircraft to assist the US-led coalition against Iraq. END START On March 1, 1991, Bolger personally telephoned US President Bush to congratulate him on the allied victory. END START Notwithstanding the membership of some staunchly pro-ANZUS people (such as Foreign Minister and Deputy Prime Minister Don McKinnon), the government as a whole appeared more committed to improving general relations with the USA rather than to seeking a return to the particular relationship which had been embodied within the ANZUS alliance. END START END START END START New Zealand's relationship with Australia, its other ANZUS partner, was not greatly affected by the nuclear prohibition policy. END START On July 1, 1990, the then Prime Minister, Palmer, visited Canberra to mark the abolition of the final restraints on free trade in goods between the two countries. END START The elimination of the final barriers came five years ahead of the schedule agreed in the Closer Economic Relations agreement signed in 1983. END START Both sides also committed themselves to achieving free trade in services and to beginning work on the harmonization of business, competition, securities and investment law. END START END START END START The government also repaired relations with several other countries during late 1990-91. END START In September 1990 Forestry Minister John Sutton made a visit to China, the first such visit since New Zealand had condemned the Chinese government's 1989 suppression of the pro-democracy movement in Tiananmen Square. END START On May 9, 1991, the governments of New Zealand and China signed an agreement to establish relations at consulate-general level. END START END START END START In April 1991 Michel Rocard visited New Zealand, the first French Prime Minister to do so. END START His visit, during which he apologised for the French role in the Rainbow Warrior affair, marked a considerable improvement in bilateral relations [see p. 38153; but see also p. 38345 for New Zealand condemnation of the honouring of the French agent involved in the Rainbow Warrior affair]. END START END START NEW ZEALAND ASSOCIATED TERRITORIES END START END START END START NIUE END START END START END START Area: 259 sq km. END START Population: 2,100 (1989). END START Capital: Alofi. END START Languages: English and Niuean. END START Religion: Christianity Currency: New Zealand dollar (US$1.00=NZ$1.7612 as at Sept. 30, 1991). END START END START Political system END START END START END START Since 1974 Niue has been a self-governing territory in free association with New Zealand, which in addition to providing economic assistance, has responsibility for the territory's defence and foreign policy. END START The Niue Assembly comprises 20 members (14 village representatives and six elected on a common roll); it chooses a Premier from amongst its number who appoints three Cabinet members, also chosen from the legislature. END START END START Main government leaders END START END START END START Premier: Sir Robert Rex, re-elected in the April 1990 general election [erroneously given as May on p. 37887] (also Minister for Economic Affairs, Public Services and Police). END START END START END START Other ministers: Tama Lata Fonu Posimani (Agriculture, Community Affairs, Telecommunications); Young Vivian (Finance, Education); Fisa Pihigia (Public Works, Broadcasting, Business Relations). END START END START Ruling party: END START END START END START None. END START END START Other political parties END START END START END START Although the Niue political system is not based upon formal political organizations, the Niue People's Action Party (NPAP), led by Young Vivian, was established in 1987 as an unofficial opposition to the Rex government. END START END START 1990/91 overview END START END START END START Opponents of Sir Robert Rex, the Premier since 1974, made substantial gains in the April 1990 general election, with the NPAP and its sympathizers winning 12 of the 20 seats in the legislature. END START Their attempts to take control of the legislature were foiled, however, when Rex, using all of his political experience and powers of patronage, induced four opposition legislators to defect to the government benches. END START In September Rex dismissed two of his three Cabinet colleagues for joining opposition calls for a change of premier, but he once again preserved his majority by appointing Young Vivian and another opposition member to the Cabinet. END START When the legislature convened in October, one of the those dismissed moved a vote of no confidence which was defeated by 15 votes to five. END START END START Economy END START END START END START In February 1990 Niue was hit by a cyclone which caused considerable damage, particularly in Alofi. END START END START COOK ISLANDS END START END START END START Area: 237 sq km. END START Population: 17,185 (1985 census). END START Capital: Avarua. END START Languages: English and Cook Islands' Maori. END START Religion. END START Christianity Currency: New Zealand dollar (US$1.00=NZ$1.7612 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB. END START END START Political system END START END START END START Since 1965 the 15 Cook Islands have been a self-governing territory in free association with New Zealand, which in addition to providing economic assistance, has responsibility for the territory's defence and foreign policy. END START The Parliament of the Cook Islands comprises 24 members (nine representing the main island of Raratonga, 14 representing constituencies on other islands, and one representing the many Cook Islanders resident in New Zealand) sitting for up to five years. END START It chooses a Premier from amongst its number, who then appoints a Cabinet. END START END START Main government leaders END START END START END START Queen's representative: Apenera Short. END START END START END START New Zealand Representative: Tim Caughley. END START END START END START Prime Minister: Geoffrey Henry (also Minister of Finance, Foreign Affairs, Tourism, Customs, Inland Revenue, Public Works, and Budget and Planning). END START END START END START Other ministers: Inatio Akaruru (Deputy Prime Minister); Vaine Tairea (Agriculture, Marine Resources, Trade, Labour, and Transport). END START END START Ruling party END START END START END START Cook Islands Party (CIP, Geoffrey Henry l.). END START END START Other political parties END START END START END START Democratic Party (DP, Pupuke Robati l.); END START Democratic Tumu Party (DTP, Vincent Ingram l., split from DP in 1985). END START END START Elections END START END START END START The CIP won 12 seats in the January 1989 general election, the DP nine seats, the DTP two, and an independent one. END START END START Overview END START END START END START By the beginning of 1991 the number of seats held by the CIP had increased from 12 to 14 — one member of the DP having defected to the CIP, and the sole independent member having joined the CIP — thereby giving the party, in alliance with the DTP, the two-thirds majority required to enact constitutional changes. END START Although Henry stated that he favoured constitutional reform — including an increase in the size of the Cabinet and a greater recognition of the role of political parties — he denied suggestions that his eventual aim was to achieve complete independence from New Zealand. END START END START END START Prime Minister Henry met United States President Bush on April 18, 1990 during a three-day private visit to the USA. END START The meeting was described by US State Department spokeswoman as primarily a" get-acquainted session". END START END START END START In late May 1991 it was reported that there had been a serious outbreak of dengue fever in the Cook Islands, with almost 800 cases having been reported since the beginning of the year. END START END START TOKELAU END START END START END START Status: Non-self-governing territory under New Zealand administration. END START Population: 1,690 (1986); there are also 2,316 Tokelauans resident in New Zealand. END START END START END START All executive and administrative authority is vested in an appointed Administrator, who is responsible to New Zealand's Minister of Foreign Affairs. END START In practice most powers are delegated to the Official Secretary, who heads the Office of Tokelau Affairs. END START Each of the territory's three atolls elects a commissioner (Faipule), who jointly chair the advisory assembly, the General Fono. END START END START Government leaders END START END START END START Administrator: N. D. Walter. END START END START END START Faipules: Peniuto Semisi (Fakaofo); Salesio Lui (Nokunonu); Kuresa Nasau (Atafu). END START END START ROSS DEPENDENCY END START END START END START Status: Non-self-governing territory under New Zealand administration. END START END START END START The Ross Dependency comprises eastern Antarctica and its associated islands. END START It includes a land area of 400,000 sq km and an ice-shelf of 330,000 sq km. END START Apart from scientific personnel it is uninhabited. END START END START END START END START END START ASIA — PACIFIC END START END START END START UNITED NATIONS TRUST TERRITORY END START END START END START BELAU END START END START END START Status: sole remaining component of UN Trust Territory of the Pacific, administered by the USA. END START Area: 508 sq km. END START Population: 15,105 (1990). END START Capital: Koror, on Koror Island. END START Languages: English, Palauan. END START Religion: Christianity Currency: US dollar. END START END START Political system END START END START END START Belau was one of the four components of the UN Trust Territory of the Pacific established in 1947 and administered by the United States. END START The three other components (the Federated States of Micronesia, the Marshall Islands and the Northern Mariana Islands) adopted revised constitutional relationships between 1978 and 1991 [see pp. 29288; 38XXX]. END START Although a compact of free association was signed in 1982 between Belau and the USA, it could not be implemented until the territory altered its Constitution (which required a 75 per cent vote in favour in a referendum) to rescind the clauses which banned the entry, storage or disposal of nuclear, chemical or biological weapons. END START Repeated referendums were held between 1983 and 1990 in an attempt to achieve this end, but each failed to secure the necessary 75 per cent approval level [see p. 37251]. END START END START END START Belau has a President, elected for a four-year term by popular vote, who appoints a Cabinet. END START The legislature (the Olbiil Era Kelulau) is bicameral: a House of Delegates comprising one representative from each of the territory's 16 states, and a 14-member Senate. END START There is also a Council of Chiefs, and each state has its own political institutions. END START END START Main government leaders END START END START END START US Interior Department's resident representative in Belau: J. Victor Hobson Jr. END START END START END START President: Ngiratkel Etpison. END START END START END START Other principal minister: Kuniwo Nakamura (Vice-President; Minister of Justice). END START END START Political parties END START END START END START Although the territory does not have formal political parties, two loose coalitions have evolved in response to the protracted debate over the compact of free association: the Coalition for Open Honest and Just Government opposes the compact, while the Ta Belau Party supports it. END START END START Elections END START END START END START Presidential elections were held on Nov. 2, 1988. END START END START 1990/91 OVERVIEW END START END START END START A further referendum on the compact of free association with the USA, the seventh in nine years, was held in February 1990, but delivered a" yes" vote of only 59.8 per cent, the lowest thus far recorded [see p. 37251]. END START END START END START In September 1990 the scheduled meeting took place between Belau's senior leaders and the US Interior Secretary Manuel Lujan. END START The meeting was prompted by a draft secretarial order, issued by the US Interior Department in July, which provided for an expanded role for the new resident US representative in Belau [see p. 37885]. END START Following the meeting a revised order was issued which, while not complying with all of the islanders' requests, was considerably more acceptable to them than had been the original directive. END START END START END START In November Victor Hobson was appointed as the Interior Department's resident representative in Belau. END START Hobson had been associated with the UN Trust Territory since 1963, and had served in Belau until 1977 when he was transferred to Saipan (Northern Marianas). END START END START END START Belau's economy, already adversely affected by debts arising from the Aimeluk power station constructed in the early 1980s and from a delay in US aid consequent upon the compact impasse, suffered a further setback in late 1990 when the territory was severely damaged by Typhoon" Mike". END START END START END START END START END START ASIA — PACIFIC END START END START END START FIJI END START END START END START Area: 18,376 sq km. END START Population: 800,000 (1990 UNFPA est.). END START Capital: Suva. END START Languages: Fijian, Hindi, English. END START Religion. END START Christianity (50%), Hinduism (40%), Islam (10%). END START Armed forces: 5,000 (1990). END START Currency: Fiji dollar (US$1.00=F$1.4567 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB. END START END START POLITICAL SYSTEM END START END START END START Fiji became an independent country within the Commonwealth in 1970, under a Constitution which provided that the head of state was the United Kingdom sovereign, represented by a Governor-General, who would appoint the Prime Minister and Cabinet in accordance with the wishes of the bicameral Fijian Parliament. END START The Alliance Party (which represented the native Melanesian population) governed the country from independence, but was defeated in the general election of April 1987. END START The new government was composed of representatives from an alliance between the multiracial Fiji Labour Party and the National Federation Party which was closely allied to the interests of those of Indian extraction who slightly outnumbered the Melanesian population. END START END START END START On May 14, 1987, there followed a coup led by Lt.-Col. (subsequently Maj.-Gen.) END START Sitiveni Rabuka and supported by the (predominantly Melanesian) armed forces, which involved the detention of the new government and the establishment of a military regime. END START Although civilian government was later restored, Rabuka and his supporters remained influential within the Council of Advisors which was established as an interim administration by the Governor-General, Ratu Sir Penaia Ganilau. END START An agreement in September to create a racially bipartisan administration, as a prelude to returning the country to full democracy, prompted Rabuka to stage a second coup on Sept. 25. END START The Constitution was revoked and on Oct. 6 he declared the Republic of Fiji. END START Queen Elizabeth II accepted the resignation of Ratu Ganilau on Oct. 15, and ceased to be Fiji's head of state (and the Commonwealth heads of government, meeting in Vancouver, Canada, on Oct. 16 declared Fiji's membership to have lapsed — see pp. 35606-07). END START The country was returned nominally to civilian rule on Dec. 5, when Ratu Ganilau was sworn in as President. END START A new Constitution which guaranteed Melanesian control of the legislature was promulgated in July 1990. END START END START Main government leaders END START END START END START President: Ratu Sir Penaia Ganilau. END START END START END START Prime Minister: Ratu Sir Kamisese Mara (also Minister of Foreign Affairs and Public Service). END START END START END START Other principal minister: Josefata Kamikamica (Deputy Prime Minister; Finance and Economic Planning). END START END START 1990/91 Cabinet changes END START END START END START The most significant Cabinet change was in July 1991 when Rabuka rejoined the government [see also below], and Public Utilities Minister Apisai Tora was dismissed for accepting the presidency of a newly created political party. END START END START Ruling party END START END START END START None. END START END START Main political parties END START END START END START Fiji Labour National Federation Parties, an opposition coalition composed of the Fiji Labour Party (est. 1985) and the National Federation Party (est. 1960, Hanish Chandra Sharma pres.); END START Fijian Political Party (est. 1990 by the Great Council of Chiefs); All National Congress (est. 1991, Apisai Tora l.); END START Fijian Conservative Party (est. 1989, Isireli Vuibau l.); END START Fiji Indian Liberal Party; Indian Congress Party (est. 1991); Nationalist Christian Party (Sakeasi Butadroka l.). END START END START Elections END START END START END START The last elections were held in 1987 [see above]. END START END START 1990/91 OVERVIEW END START END START END START In January 1990 Fiji was restored to nominal civilian rule [see p. 37189]. END START The interim government finally produced a new Constitution for the country in July which, as expected, guaranteed a majority in both houses of the bicameral legislature to the Melanesian population [see pp. 37613-14; 37881-82] who, since 1987, had become the majority [see below]. END START A considerable amount of power was also vested in the Bose Levu Vakaturaga (Great Council of Chiefs), a traditional structure consisting of some 100 Melanesian leaders. END START The Constitution also weighted Melanesian representation disproportionately in favour of the rural communities (dominated by traditional chiefs) as against urban areas. END START The Constitution was open to revision after seven years, and then after every 10 years, but only with the consent of the Melanesian majority. END START END START END START Although the Constitution contained guarantees of human rights and freedoms, it also stated that it" shall be the overall responsibility of the Republic of Fiji Military Forces to ensure at all times the security, defence and well-being of Fiji and its peoples". END START The clause was criticized by some as giving implicit authority to the army to stage further coups should they be deemed necessary. END START The Constitution also allowed a majority of MPs to declare the existence of a threat, and then to pass emergency laws and regulations to override all other parts of the Constitution. END START END START END START The interim government promised elections under the new Constitution in 1991, two years later than had originally been suggested, but in April 1991 the likely election date was revised to 1992. END START The opposition Fiji Labour National Federation Parties, led by Adi Kuini Bavadra (the widow of the ousted Prime Minister who had taken over the party leadership after her husband's death from cancer in 1989), denounced the Constitution as racist and anti-democratic and announced its refusal to participate in elections held under its auspices. END START END START END START Prior to the 1987 coups the Indian population slightly outnumbered that of the country's native Melanesian community. END START (Native Fijians were basically of Melanesian origin, although many also had some Polynesian inheritance particularly in the eastern islands; the inhabitants of Rotuma, an island 390 km north of Suva — for which special provision was made in the Constitution — were almost exclusively Polynesian). END START There was heavy Indian emigration after the second coup, however, particularly among those Indians with sufficient skills and capital to establish themselves elsewhere. END START The loss of such people caused shortages in key ares of the economy and necessitated the importation of expatriate skills, often at high cost. END START The drain did, however, also ensure that the Melanesians once again became the majority. END START At the end of 1990 the population was estimated to amount to 733,450, of whom 358,667 were Melanesians, 335,153 were Indians, and 39,630 were of other origin. END START END START END START In March 1991 the Great Council of Chiefs proposed the creation of a Fiji Political Party (FPP), which coup leader Rabuka immediately suggested that he might lead. END START Rabuka made a series of confusing statements during 1990-91, but appeared to indicate that he continued to harbour political ambitions, including a desire to be Prime Minister. END START On June 8, 1991, he called on the government to resign and, on June 11, mobilized the army reserves as though preparing for another coup. END START On the following day he apologized for his actions and pledged his allegiance to the government. END START Eventually, on July 15, he left the armed forces and returned to the government as Deputy Prime Minister and Minister of Home Affairs (to leave in late November in order to participate actively in the FPP). END START He was succeeded as army commander by Brig. END START Ratu Epeli Ganilau, son of the President. END START END START END START In April Bavadra resigned as chairman of the Labour Party after announcing her engagement to Clive Speed, an Australian businessman. END START END START Economy END START END START END START The economy grew by 5.3 per cent in 1990, compared with 12.5 per cent in 1989 and 0.8 per cent in 1988. END START Most of the growth was fuelled by the traditional industries of sugar and tourism. END START The sugar harvest was delayed because of a dispute over terms for a new harvesting contract between the government-controlled milling company, Fiji Sugar Corp., and the 22,000 (pre-dominantly Indian) sugarcane growers. END START Although the harvest yield was expected to be slightly less than in 1989, buoyant world prices meant that the growers were likely to reap record payments. END START Tourism also prospered in 1990, with 275,000 arrivals. END START Although several hotels undertook regrading programmes, no major work was undertaken in the construction of new resorts as investors appeared to be waiting for further indications of a permanent return to political stability. END START END START END START Although agriculture remained the largest sector of the economy (accounting for almost 20 per cent of gross domestic product (GDP) and 80 per cent of employment), there was a rapid growth in the non-sugar manufacturing sector, which had declined by 6.6 per cent in 1987, but grew thereafter by 3.2 per cent, 5.4 per cent and 7.8 per cent respectively in subsequent years. END START The growth resulted primarily from the introduction of the tax free factory (TFF) scheme. END START By the end of 1990 at least 113 TFFs were operational, 74 of which produced garments, while the remainder produced items such as furniture, leather goods and footwear. END START Some 8,000 people were employed making garments, and the industry in 1990 earned F$183 million, a figure exceeded only by sugar exports (F$248 million) and tourism (F$340 million). END START END START END START Annual inflation in 1990 was 8.1 per cent, compared with 6.5 per cent in the previous year, and the level of foreign reserves was steady at around F$330 million, the equivalent of four to five months-worth of imports. END START END START END START On Nov. 21, 1990, Finance Minister Kamikamica presented the 1991 budget, which predicted growth of 3.4 per cent in 1991, and a narrowing of the budget deficit to F$69,700,000 in 1991 compared with F$74,700,000 in 1990. END START END START END START In mid-1991 labour relations deteriorated sharply with the sugarcane harvest once again delayed because of disputes over payments for the previous year's crop. END START There was also a protracted and violent strike by 700 miners at the Emperor gold mine, the country's largest gold producer. END START The government responded to the unrest with a series of decrees which curtailed trade union rights and inflicted severe penalties on those convicted of disrupting key industries. END START The response exacerbated the strikes, and by the end of June 1991 both disputes were growing in scope and intensity. END START END START Foreign relations END START END START END START Relations with India, which had been difficult since the 1987 coup, deteriorated further in 1990 as a result of the discriminatory nature of the proposed constitution. END START In May 1990 the Fijian government ordered the closure of the Indian embassy. END START END START END START Relations with New Zealand and Australia, traditionally the largest source of aid for Fiji, improved somewhat but remained strained. END START The then Australian Prime Minister Bob Hawke described the new Constitution as" seriously flawed" but called upon the opposition to participate in future elections. END START A visit due to be made to Suva by Australian Foreign Minister Gareth Evans in November 1990 was cancelled by Mara after a speech to the UN General Assembly in which Evans derided the new Constitution. END START In January 1991 Don McKinnon (Deputy Prime Minister and Minister of Foreign Affairs) and Warren Cooper (Minister of Defence) became the most senior New Zealand ministers to visit Suva since the coups. END START END START END START President Ganilau made a state visit to China on April 22-29, 1991, during which he held talks with Chinese leaders. END START END START END START During the course of 1990 Mara made trips to China, Egypt, Israel, Malaysia, Singapore, Taiwan, the United States and the UK. END START END START END START END START END START ASIA — PACIFIC END START END START END START FEDERATED STATES OF MICRONESIA END START END START END START Area: 700 sq. END START km. END START Population: 91,440 (1985). END START Capital: Pohnpei Island. END START Language: English (official), local languages. END START Religion. END START Christianity. END START Currency: US dollar. END START END START END START Major international affiliations: ADB. END START END START POLITICAL SYSTEM END START END START END START As part of the UN Trust Territory of the Pacific, established in 1947, the Federated States of Micronesia (FSM) was administered by the US government. END START In 1982 the government of the FSM signed a compact of free association, implemented in 1986, under which the USA granted internal sovereignty and US aid in return for continuing US control of the country's defence and foreign policies. END START In December 1990 the UN Security Council approved the termination of the Trust status for the FSM. END START END START END START The FSM has four constituent states — Chuuk (formerly Truk), Kosrae, Pohnpei and Yap — each of which has its own government. END START Federal authority is vested in a President who is elected by the 14-member federal legislature, the National Congress, which is composed of 10 senators elected for two-year terms, and four at-large senators (one from each state) who are elected for four years. END START Both President and Vice President must be chosen from amongst the at-large senators. END START END START Main government leaders END START END START END START President: Bailey Olter. END START END START END START Other principal ministers: Jacob Nena (Vice President); Andon L. Amaraich (External Affairs); Aloysius Tuuth (Finance). END START END START Cabinet changes END START END START END START A new Cabinet was appointed in May 1991. END START END START Political parties END START END START END START None. END START END START Elections END START END START END START A general election was held in March 1991; Olter was elected President in May [see p. 38197]. END START END START 1990/91 OVERVIEW END START END START END START The FSM became an independent state (although, under the Compact of Free Association, the USA continued to control its defence and foreign relations) following the UN Security Council's approval of the termination of the UN's Trusteeship on Dec. 22, 1990 [see p. 37920]. END START The move opened the way for the FSM to join the UN in September 1991 [see p. 38458]. END START END START END START Diplomatic relations were established with South Korea on April 5. END START END START END START END START END START ASIA — PACIFIC END START END START END START FRENCH OVERSEAS TERRITORIES END START END START END START France's four Overseas Territories (territoires d'outre-mer) are French Polynesia, New Caledonia, the Wallis and Futuna Islands and the French Southern and Antartic Territories. END START They are regarded as an integral part of France and each (apart from the Southern and Antartic Territories) elects its own territorial assembly and sends representatives to the French legislature in Paris. END START END START FRENCH POLYNESIA END START END START END START Area: 4,200 sq km. END START Population: 196,000 (1989). END START Capital: Papeete. END START Languages: French, Polynesian languages. END START Religion: Christianity. END START Currency: franc of the Comptoirs français du Pacifique (franc CFP or Pacific franc) (US$1.00=101.54 francs CFP as at Sept. 30, 1991). END START END START Political system END START END START END START French Polynesia has a Territorial Assembly of 41 members, elected by universal suffrage for up to five years. END START From within its own members the Assembly elects a Territorial President who appoints a Council of Ministers. END START END START Main government leaders END START END START END START President of the territorial government: Gaston Flosse. END START END START Ruling party END START END START END START Coalition of Tahoeraa Huiraatira/Rassemblement pour la République (RPR, Gaston Flosse l.) and Ai'a Api (New Land, Emile Vernaudon l.). END START END START Other main political parties END START END START END START Front de Libération de la Polynésie/Tavini Huiraatira (FLP — Oscar Temaru, (l.); END START Ia Mana Te Nunaa (Jacqui Drollet sec. -gen.); END START Pupu Here Ai'a Te Nunaa Ia Ora (Jean Juventin pres.); END START Te Tiarama (Alexandre Léontieff l.). END START END START Elections END START END START END START Legislative elections were held on March 17, 1991, and elections for the President of the territorial government on April 4. END START END START 1990/91 overview END START END START END START The Constitution of Polynesia was amended by the French Parliament with effect from July 1990 to increase the powers of the President of the territorial government and those of the Territorial Assembly, and to establish five consultative local councils composed of elected territorial and municipal representatives. END START END START END START In the March 1991 legislative elections Tahoeraa Huiraatira — the opposition party led by Flosse which had been ousted from government in December 1987, after controlling the territory's government since March 1982 — captured 18 of the 41 seats in the Territorial Assembly. END START An alliance between the parties of the incumbent President of the territorial government, Léontieff, and the President of the Territorial Assembly, Juventin, secured only 14 seats. END START The moderate independence party headed by Drollet, lost its three seats, while the FLP, a hardline independence party, increased its share of seats from two to four. END START Ai'a Api held five seats. END START END START END START Following the election Flosse formed a coalition government with Ai'a Api, led by Vernaudon, who, like Léontieff, was one of French Polynesia's two deputies in the French National Assembly in Paris. END START A similar Flosse-Vernaudon coalition in 1982 had lasted only 110 days. END START Two other legislators were also reported to have joined the coalition following the elections. END START END START END START In the elections for President of the new Territorial Assembly on March 28 Vernaudon was supported by both the Flosse and the Léontieff coalitions and received 37 votes compared with the four cast for Temaru, the only other candidate. END START On April 4 Flosse was formally elected as President of the territorial government. END START END START END START The new government immediately announced a rigorous cost-cutting programme, claiming that the financial position was catastrophic. END START Although no official figure was released, Flosse indicated that public debt amounted to around 60,000 million francs CFP, and represented some 16 per cent of tax revenues. END START The proposed introduction of new and increased indirect taxes (French Polynesia had no income tax) led to protests in June, and serious rioting in the territory's capital, Papeete, on July 10. END START Peace was restored after the government agreed to abandon the tax increases. END START Shaken by the violence, Flosse retired for a week of reflection on July 12, turning the presidency over to his deputy, Michel Buillard. END START He resumed his executive duties on July 19 [see p. 38346]. END START END START French nuclear tests END START END START END START The use of Mururoa and Fangataufa atolls for the conducting of French nuclear tests continued to attract fierce criticism. END START On Nov. 14, 1990, France conducted a test in Fangataufa involving the detonation of a device with explosive power less than 100 kilotonnes. END START It was the fifth test since the French government's adoption of a new policy of disclosing all such tests, announced in May 1990 [not 1989 as wrongly stated on p. 37886]. END START The new policy was one of several steps taken by the government to defuse criticism of its testing program. END START Others involved a reduction in the number of annual tests from eight to six, and an invitation to foreign researchers to visit Mururoa to test France's claims that there had been no severe environmental damage. END START END START NEW CALEDONIA END START END START END START Area: 19,103 sq km. END START Population: 164,000 (1989). END START Capital: Noumea. END START Languages: French (official); Melanesian and Polynesian languages. END START Religion: Christianity. END START Currency: Comptoirs francais du Pacifique (franc CFP or Pacific franc) (US$1.00=101.54 francs as at Sept. 30, 1991). END START END START Political system END START END START END START New Caledonia is divided into three provinces (North, South and Loyalty Islands) each of which has its own directly elected assembly (consisting of 32, 15 and seven members respectively) elected for up to six years. END START The three provincial assemblies together constitute the Territorial Congress. END START The assemblies and the congress are each led by an elected president. END START END START Main government leaders END START END START END START President of the Territorial Congress: Simon Loueckhote. END START END START Ruling Party END START END START END START Rassemblement pour la Caledonie dans la République (RPCR, Jacques Lafleur l.). END START END START Other political parties END START END START END START Front National (FN, Guy George, l.); END START Front Uni de Liberation Kanak (FULK, Yann Celene Uregei l.); expelled from the FLNKS coalition in January 1990; Kanak Socialist National Liberation Front (FLNKS, Paul Neaoutyine, pres.), a four-party coalition committed to independence for New Caledonia; END START END START Elections END START END START END START In legislative elections in June 1989 the RPCR won 27 of the 54 seats compared with 19 won by the FLNKS. END START Loueckhote was re-elected President in July 1990 [see p. 37887]. END START END START 1990/91 overview END START END START END START Although the 1988 Matignon Accords formed the basis of a ceasefire in the struggle for the New Caledonian independence, there was increasing discussion during 1990 of the possibility that the planned independence referendum — scheduled for 1998 — could be abandoned in favour of a form of independence in association with France. END START Supporters of the plan claimed that it would allow an immediate settlement of the territory's status and therefore end the climate of uncertainty which was adversely affecting foreign investment. END START In May 1991 Lafleur, leader of the RPCR and president of the South province, threw his support behind the idea by calling for a" consensual solution" to the future status of the territory to be adopted prior to 1998. END START Although Neaoutyine suggested that the pro-independence forces were" open to any discussion", an FLNKS congress in June reasserted its position that the planned referendum was" a determining stage in New Caledonia's march towards independence". END START END START WALLIS AND FUTUNA ISLANDS END START END START END START Area: 274 sq km. END START Population: 12,408 (1983 census). END START Capital: Mata-Utu. END START Languages: French, Wallisian. END START Religion. END START Christianity. END START Currency: Comptoirs francais du Pacifique (franc CFP or Pacific franc) (US$1.00=101.54 as at Sept. 30, 1991). END START END START Political system END START END START END START The Territorial Assembly has 20 members and is elected by universal adult suffrage for up to five years. END START It appoints three of the six-member Council of the Territory (the other three being the traditional Kings whose kingdoms formed the territory). END START The Council assists the Chief Administrator who is appointed by the French government. END START The Territorial Assembly elects its own President. END START END START Main government leaders END START END START END START President of Territorial Assembly: Clovis Logologofolau. END START END START Ruling party END START END START END START Coalition consisting of Rassemblement pour la République (RPR, Clovis Logologofolau l., and the Union Populaire (UPL, Falakiko Gata l… END START END START Other political parties END START END START END START Union pour la Democratie Francaise (UDF); Lua kae tahi (affiliated to UDF). END START END START Elections END START END START END START In legislative elections in March 1987 the RPR won seven seats and formed a government in coalition with the UPL which had won six seats. END START END START 1990/91 overview END START END START END START Tension over the status of the territory continued in 1990, continuing allegations from Logologofolau that his elected colleagues, together with the traditional chiefs, were not being given a sufficient say in decision-making by the French-appointed Chief Administrator. END START In August 1990 the French government attempted to appease this growing discontent by promising to hold discussions in 1991 on the territory's future. END START END START END START END START END START ASIA — PACIFIC END START END START END START KIRIBATI END START END START END START Area: 861 sq km. END START Population: 69,000 (1989 est.). END START Capital: Bairiki. END START Language: I-Kiribati, English. END START Religion. END START Christianity. END START Currency: Australian dollar (US$1.00=A$1.2481 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB. END START END START POLITICAL SYSTEM END START END START END START The Republic of Kiribati, which is composed of 33 Pacific atolls within an area of 5,000,000 sq km, became an independent republic within the Commonwealth in July 1979. END START Legislative power is vested in a unicameral House of Assembly (Maneaba), comprising 39 members popularly elected for up to four years and one appointed representative of the Banaban community. END START The head of state is the Beretitenti (President) who is popularly elected from among the members of the Assembly; he governs with the assistance of an appointed Cabinet and is empowered to dissolve the Assembly and to call a general election. END START END START Main government leaders END START END START END START President: Teatao Teannaki (also Minister of Foreign Affairs and International Trade). END START END START END START Other principal ministers: Taomati T. Iuta (Vice-President; Finance and Economic Planning); Ieremia T. Tabai (Environment and Natural Resource Development). END START END START Cabinet changes in 1990-91 END START END START END START A new Cabinet was appointed in July 1991 after the presidential election [see p. 38345]. END START END START Ruling party END START END START END START National Progressive Party (Teatao Teannaki l.). END START END START Other political parties END START END START END START Christian Democratic Party (Teburoro Tito l.); END START Kiribati United Party (Tewareka Teutoa l.). END START END START Elections END START END START END START A general election was held on May 8, 1991, (with an additional round of run-off contests on May 15 — see p. 38196); Teatao Teannaki was subsequently elected as President in July [see p. 38345]. END START END START 1990/91 OVERVIEW END START END START END START On April 4, 1990, the governments of Kiribati and Taiwan approved a fishing agreement. END START Under the terms of the pact Taiwan was permitted to operate 20 fishing vessels within Kiribati's economic zone in return for annual payments of $250,000. END START END START END START It was reported on Sept. 4 that Kiribati and the Soviet Union had decided to establish diplomatic relations at ambassadorial level. END START END START END START END START END START ASIA — PACIFIC END START END START END START MARSHALL ISLANDS END START END START END START Area: 180 sq. END START km. END START Population: 43,355 (1989). END START Capital: Dalap-Uliga-Darrit Municipality on Majuro Atoll. END START Language: Marshallese (official), English. END START Religion: Christianity. END START Currency: US dollar. END START END START POLITICAL SYSTEM END START END START END START As part of the UN Trust Territory of the Pacific, established in 1947, the Marshall Islands were administered by the United States government. END START In December 1990 the UN Security Council approved the termination of its Trusteeship in relation to the Marshalls [see p. 37920], and the country joined the UN in September 1991 [see p. 38458]. END START END START END START The Marshall Islands has a 12-member Council of Chiefs (the Iroij), composed of traditional leaders with consultative authority on matters relating to land and custom. END START Legislative power resides in a 33-member legislature (the Nitijela), which is elected for four years and which chooses a President from among its members. END START The President is both head of state and head of government and appoints a Cabinet. END START END START Main government leaders END START END START END START President: Amata Kabua (also Minister of Resources and Development). END START END START END START Other principal ministers: Thomas Kijiner (Finance); Christopher Loeak (Justice). END START END START Ruling party END START END START END START None. END START END START Other main political parties END START END START END START The Ralik Ratak Democratic Party, founded in June 1991 by Tony DeBrum, a former protegé of Kabua and Foreign Minister, in opposition to the Kabua government. END START END START Elections END START END START END START Legislative elections were held in November 1991; the legislature was due to meet in January 1992 to elect a new government. END START Kabua was re-elected President in 1987. END START END START 1990/91 OVERVIEW END START END START END START China, which as one of the permanent members of the UN Security Council had supported the termination of the UN Trust Territory status, established an embassy in the Marshall Islands in January 1991. END START President Kabua undertook a nine-day official visit to China in March, during which he signed agreements on economic and technological co-operation. END START END START END START Diplomatic relations were established with South Korea on April 5. END START END START END START END START END START ASIA — PACIFIC END START END START END START NAURU END START END START END START Area: 21 sq km. END START Population: 9,000 (1989). END START Capital: No official capital. END START Languages: Nauruan, English. END START Religion: Christianity (Nauruan Protestant Church). END START Currency: Australian dollar (US$1.00=A$1.2481 as at Sept. 30, 1991). END START END START POLITICAL SYSTEM END START END START END START The Republic of Nauru, which achieved independence in January 1967, is an associate member of the Commonwealth. END START Legislative power is vested in an 18-member unicameral Parliament, elected for up to three years, which selects a President from among its members. END START The President, who is the head of state, governs with the assistance of an appointed Cabinet. END START END START Main government leaders END START END START END START President: Bernard Dowiyogo (also Minister of Internal Affairs, External Affairs, Island Development and Industry, Public Service, Civil Aviation). END START END START END START Other principal ministers: Kennan Adeang (Justice); Kinza Clodumar (Finance). END START END START 1990/91 Cabinet changes END START END START END START None. END START END START Ruling party END START END START END START None. END START END START Other main political parties END START END START END START The only political party is the Democratic Party of Nauru (Kennan Adeang l.). END START END START Elections END START END START END START Nauru's first President, Hammer DeRoburt, who had dominated the political structure of the island since independence, was forced to resign in August 1989 after a vote of no confidence. END START Following a general election on Dec. 9, 1989, Bernard Dowiyogo was elected as President on Dec. 12 by 10 votes to six [see p. 37126]. END START END START 1990/91 OVERVIEW END START END START END START On Jan. 16, 1991, Australia delivered a submission to the International Court of Justice at The Hague arguing against a compensation claim lodged in May 1989 by the government of Nauru for the cost of restoring soil and vegetation cover to much of the island. END START On Feb. 8 the Court gave the government of Nauru until July 19 to reply to the submission. END START The compensation claim covered a period between 1919 and 1967 when Nauru was under Australian administration, during which time its phosphates were extracted and sold at below market prices. END START A press release issued by the Australian government on Feb. 1 reiterated its claim that the issue" was definitely settled in the UN-supervised independence arrangements" which gave Nauru" total control and benefit of the phosphate mining industry". END START It also claimed that the revenue generated from the industry had provided Nauru with" the highest per capita income in the world and would have allowed the Nauruan government to rehabilitate the mined areas if it so wished." END START END START END START The Nauruan government, which was unhappy at being forced to pay A$21,000,000 for the phosphate facilities which it had inherited after independence from the British Phosphate Commissioners (BPC — established by the governments of the Australia, New Zealand and United Kingdom) never accepted that the matter had been settled. END START The news in 1985 that the international assets of BPC were to be wound up had provided the impetus for the compensation claim. END START END START END START The compensation issue was important because 80 years of phosphate mining had left 80 per cent of Nauru uninhabitable, and the phosphate deposits (formed over many centuries from accumulated bird droppings) were almost exhausted. END START The lack of ground cover and the convection current produced by the sun-heated exposed rock had resulted in little ground water and in reduced rainfall, so that the bulk of the island's drinking water had to be transported by the ships arriving to collect phosphate. END START Although the country had extensive overseas investments, the government-owned Air Nauru and the Nauru Pacific shipping line were thought to have made losses in recent years of hundreds of millions of dollars. END START END START END START END START END START ASIA — PACIFIC END START END START END START PAPUA NEW GUINEA END START END START END START Area: 462,840 sq km. END START Population: 3,900,00 (1990 UNFPA est.). END START Capital: Port Moresby. END START Languages: Pidgin, English, Motu (all official); there are also some 700-800 local languages. END START Religion: Pantheism, Christianity. END START Armed forces: 3,500 (1990). END START Currency: kina (US$1.00=K0.9418 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB. END START END START POLITICAL SYSTEM END START END START END START The head of state of Papua New Guinea, an independent member of the Commonwealth since September 1975, is the British sovereign, represented by a Governor-General. END START Legislative power is vested in a unicameral National Parliament, the 109 members of which are elected for up to five years by universal adult suffrage. END START Executive power is exercised by a Prime Minister and a National Executive Council (Cabinet), who are responsible to Parliament and are appointed by the Governor-General acting upon its advice. END START END START Main government leaders END START END START END START Governor-General: Wiwa Korowi was elected on Nov. 11, 1991 (Sir Vincent Serei Eri resigned on Oct. 1 — see p. 38534). END START END START END START Prime Minister: Rabbie Namaliu. END START END START END START Other principal ministers: Akoka Doi (Deputy Prime Minister and Minister for Fisheries and Marine Resources); Arnold Marsipal (Defence); Fr John Momis (Provincial Affairs); Michael Somare (Foreign Affairs). END START END START 1990/91 Cabinet changes END START END START END START Cabinet reshuffles were conducted in late 1990 and in March, June and October 1991 [see p. 38535]. END START END START Ruling coalition END START END START END START Both the government and the opposition are supported by loose coalitions consisting of many political parties. END START Like the parties themselves, these coalitions are usually unstable, and tend to be based upon personalities and patronage rather than ideology. END START END START END START The ruling coalition includes the Pangu Pati (Rabbie Namaliu l.); the Melanesian Alliance (Fr John Momis ch.); the National Party (formerly People's United Front, Michael Mel l.); the League for National Advancement (Karl Stack l.); the People's Action Party (PAP, Akoka Doi l.); elements of the Melanesian United Front (MUF); and independents. END START END START Other political parties END START END START END START People's Democratic Movement (Paias Wingti l.); END START People's Progress Party (Sir Julius Chan l.). END START END START Elections END START END START END START A general election held in June 1987 resulted in the return to power of a coalition government led by Paias Wingti, but this was defeated in a parliamentary vote of no confidence on July 4, 1988, and replaced by a coalition led by Namaliu. END START END START 1990/91 OVERVIEW END START END START END START Bougainville crisis END START END START END START The secessionist crisis on Bougainville Island continued to dominate domestic politics during 1990-91 [see pp. 37879-80 for summary to November 1990]. END START Although the rebel Bougainville Revolutionary Army (BRA) forced government units to withdraw from the island in March 1990, the consequent blockade and failure to achieve international recognition for the island's declaration of independence resulted in a stalemate. END START The Endeavour Accord, signed by the two sides on Aug. 5, involved an agreement to defer the implementation of the independence declaration in return for a lifting of the government blockade [see p. 37658]. END START The agreement broke down almost immediately, however, when the first supply ships to reach the territory were found to contain government security forces and were forced to withdraw. END START In September government troops recaptured Buka Island (north of Bougainville), allegedly in response to requests for assistance from the islanders themselves. END START In the resulting fighting with the BRA at least 23 people were reported killed. END START END START END START Following further negotiations the Honiara Accord was signed in late January 1991 [see p. 37962]. END START The government agreed not to station security forces on Bougainville on condition that the BRA disbanded itself and surrendered its weapons and prisoners to an international peace-keeping force. END START The immediate impetus for the agreement was the need to relax the blockade, which was causing immense hardship to the island's 120,000 population and which, according to some estimates, had resulted in the deaths of as many as 3,000 people. END START Although the accord meant that essential medical and fuel supplies began reaching the island in mid-February, the agreement's failure to address the central issue of Bougainville's future status meant that it could not provide a final solution to the conflict. END START In April the government landed troops in the north of Bougainville, which led to increased clashes with the BRA. END START Although further peace negotiations were scheduled for the latter half of 1991, the situation remained unresolved. END START END START END START The conflict caused a considerable strain on PNG's relationship with its neighbouring states. END START In June 1991 the government made an official protest to the Solomon Islands alleging that the BRA had been given government facilities in Honiara to promote its cause. END START Relations with Australia were also damaged in June by an admission from the PNG military that helicopters provided by the Australian government for transport and surveillance purposes had been used in February 1990 to dump the bodies of executed BRA rebels into the sea. END START END START Other issues END START END START END START In late October 1990 Namaliu adjourned parliament early in order to avoid a planned no confidence motion (over the Bougainville situation — see above), and in November he announced that the legislature would remain adjourned until July 1, 1991. END START The move was denounced by the opposition as unconstitutional and dictatorial. END START In January 1991 the Supreme Court ruled that the adjournment was in breach of the Constitution (which contained an obligation for the legislature to meet at least three times a year), causing Namaliu to announce that the legislature would reconvene in May. END START END START END START Other important issues in PNG during 1990-91 were rising crime, and corruption charges against the Deputy Prime Minister, Ted Diro. END START The former, a longstanding problem in the country, resulted in March in the launching of a much-publicized" crackdown". END START This included conventional proposals such as increased funding for the police, prosecution service and prisons, together with more controversial measures including the imposition of selective urban night curfews, the establishment of a national guard (to provide a form of employment for the country's growing pool of unemployed youths), the tattooing of the foreheads of convicted criminals, and the imposition of the death penalty for crimes such as murder and rape. END START Legislation to this effect was passed on Aug. 28, 1991, by 48 votes to 19. END START END START Diro affair END START END START END START The government's Ombudsman Commission presented a report to the public prosecutor in April 1991 which recommended that Diro should be prosecuted on 73 counts of misconduct and corruption in connection with his post of Forestry Minister. END START The decision of Diro (the leader of the PAP, one of the most important components in the government coalition) not to resign from the Cabinet in the face of such charges was supported by Namaliu. END START Although Diro continued to cling to office, by mid-1991 his position looked increasingly untenable; in September he was convicted on 81 charges of corruption, and he resigned in October [see pp. 38534-35]. END START END START Economy END START END START END START The Bougainville conflict [see above] affected the country's economy adversely, as the giant Panguna copper mine, which had previously provided about 17 per cent of national revenue and more than 40 per cent of foreign exchange earnings, remained closed. END START An economic austerity programme was imposed in early 1990, involving a 10 per cent devaluation of the kina, cuts in government spending, and restrictions on wage increases. END START While making primary products more competitive, the devaluation of the kina inevitably resulted in higher inflation which, by the end of 1990, was running at around 7 per cent per annum. END START In early 1991 the central bank of PNG warned that the country's budget deficit had ballooned, in 1990 and criticized the government for achieving annual spending cuts equivalent only to US$2,200,000, compared with projected reductions of US$73,800,000. END START END START END START The government requested international assistance to support the balance of payments and to stem the decline in international reserves. END START On April 26, 1990, the IMF approved an assistance package of a total value of 69,200,000 special drawing rights (SDR — US$90,000,000) which included SDR42,800,000 available immediately and SDR26,400,000 available under a 14-month standby arrangement. END START A further US$710,000,000 was promised by the World Bank and other Western donors, including Australia and Japan. END START END START END START The long-term outlook for the economy remained buoyant, however, because of the country's immense natural resources. END START In addition to other recent mineral discoveries, the first significant oil deposits (other than in the Kutubu oilfield area) to have been located in the area since the 1950s were discovered on the southern slopes of the Highlands. END START The deposits, whose discovery was announced by Command Petroleum on April 2, 1991, were believed to be situated close to the proposed route of a 260-km pipeline currently under construction to transport Kutubu oil to the Gulf of Papua. END START END START Foreign relations END START END START END START Relations with Indonesia continued to improve despite further incursions by Indonesian troops in pursuit of Melanesian separatists from Irian Jaya. END START A new border agreement was signed in March 1990, and in late October the two countries agreed to co-ordinate more closely in security efforts along their 800-km common border. END START In December the commander of the Indonesian Armed Forces made an official visit to Port Moresby. END START END START END START END START END START ASIA — PACIFIC END START END START END START SOLOMON ISLANDS END START END START END START Area: 27,556 sq km. END START Population: 314,707 (1990 est.). END START Capital: Honiara (island of Guadalcanal). END START Languages: English (official), Pidgin, more than 80 local languages. END START Religion: Christianity. END START Currency: Solomon Islands dollar (US$1.00=SI$2.7229 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB. END START END START POLITICAL SYSTEM END START END START END START The head of state of the Solomon Islands, an independent member of the Commonwealth since July 1978, is the United Kingdom sovereign represented by a Governor-General. END START Legislative authority is vested in a unicameral National Parliament, the 38 members of which are popularly elected for up to four years. END START The Prime Minister (who is elected by MPs from among their number) and an appointed Cabinet exercise executive power and are responsible to Parliament. END START END START Main government leaders END START END START END START Governor-General: Sir George Lepping. END START END START END START Prime Minister: Solomon Mamaloni (since March 1989 — see p. 36526). END START END START END START Other principal ministers: Peter Kenilorea (Foreign Affairs and Trade); Christopher Abe (Finance and Planning). END START END START 1990/91 Cabinet changes END START END START END START A new Cabinet was appointed in October 1990 [see p. 37862]. END START END START Ruling party END START END START END START Mamaloni resigned as leader of the People's Alliance Party in October 1990 but remained Prime Minister at the head of a coalition government of" national unity". END START END START Other main political parties END START END START END START Nationalist Front for Progress (NFP, the main opposition group, Andrew Nori l.); END START United Party (UP, Peter Kenilorea l.). END START END START Elections END START END START END START The 1989 general election was won by the PAP [see p. 36465]. END START END START 1990/91 OVERVIEW END START END START END START Prime Minister Mamaloni came under increasing pressure in 1990 both from opposition leader Nori and from growing dissatisfaction from within the ruling PAP. END START Although Mamaloni successfully defeated a motion of no confidence in May, a second vote was scheduled when the legislature reconvened in October. END START A week before it was due, Mamaloni resigned as leader of PAP and announced that he would continue in office as the head of a government of national unity. END START He dismissed five of his ministers (including Deputy Prime Minister Danny Philip) and replaced them with four members of the opposition and one PAP backbencher [see p. 37862]. END START The remaining PAP ministers refused party demands that they resign from the government and they were subsequently expelled from the party in early 1991. END START END START END START The formation of a coalition government and the splitting of both the ruling party and the opposition suggested a return to the traditional political style, under which political structures revolved around personalities and party affiliations remained weak and without clear ideological foundations. END START END START END START END START END START ASIA — PACIFIC END START END START END START TONGA END START END START END START Area: 748 sq km. END START Population: 98,000 (1989 World Bank est.). END START Capital: Nuku'alofa. END START Languages: Tongan, English (both official). END START Religion. END START Christianity (mainly Wesleyan). END START Currency: pa'anga or Tongan dollar (US$1.00=TS1.2481 as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB. END START END START POLITICAL SYSTEM END START END START END START The Kingdom of Tonga, an independent constitutional monarchy within the Commonwealth, was a British Protected State for 70 years before achieving full independence in 1970. END START The Tongan sovereign is head of state and exercises executive power in conjunction with an appointed 10-member Privy Council which functions as a Cabinet. END START The 29-member unicameral Legislative Assembly consists of the King, Privy Council, nine hereditary nobles (elected by their peers) and nine popularly elected representatives. END START Elected representatives hold office for three years. END START END START Main government leaders END START END START END START Head of state: King Taufa'ahau Tupou IV. END START END START END START Prime Minister: Baron Vaea (also Minister for Agriculture; Forestry and Fisheries; Marine Affairs) — replaced Prince Fatafehi Tu'ipelehake in mid-1991. END START END START END START Other principal ministers: Crown Prince Tupouto'a (Foreign Affairs; Defence); Cecil Cocker (Finance). END START END START 1990/91 Cabinet changes END START END START END START None. END START END START Political parties END START END START END START None. END START END START Elections END START END START END START The most recent elections were held on Feb. 15, 1990 [see p. 37251]. END START END START 1990/91 OVERVIEW END START END START END START The success of three" pro-democracy" commoner candidates — ably led by Akilisi Pohive — in the 1990 general election increased the pressure for reform of the absolutist power of the Tongan King and his appointed government. END START The focus for this pressure was a tenacious campaign for information concerning the sale of Tongan passports [see pp. 37884; 38103]. END START Pohive and the pro-democracy movement took the case to the courts in 1989, and it was due to be heard in the Supreme Court on Feb. 22, 1990. END START END START END START The Privy Council, however, reconvened Parliament for an emergency session on Feb. 18 and pushed through amendments to the Nationality Act, the Passport Act and the Constitution itself, in order to provide a retroactive legal basis for the sale; denied its legal foundation, the court case was dismissed. END START END START END START Increasingly the passport issue was seen as an illustration of the country's need for constitutional reform. END START Finance Minister Cocker admitted to parliament that the government had made T$29,600,000 from the sale of passports up to Jan. 31, 1991. END START The King claimed that all the funds acquired through the passport sales had been accounted for. END START Amongst the alleged uses were the refinancing of the government-owned airline, hurricane relief, the purchase of stock in the Bank of Tonga, and the acquisition of land in London upon which to build a high commission. END START END START END START There was also speculation concerning the health of both Taufa'ahau Tupou and his aged Prime Minister, the former having cancelled a state visit to Japan in order to travel to Australia for medical treatment, the latter having been incapacitated for a number of years after suffering a stroke. END START By mid-1991 several commoner MPs were calling openly for Prince Fatafehi Tu'ipelehake's resignation and for his replacement by an elected Prime Minister. END START END START END START On Feb. 11, 1991, the government freed the pa'anga from its fixed link with the Australian dollar, choosing instead to determine its value against a weighted basket of currencies. END START END START END START In late June 1991 the legislature passed the 1991-92 budget for the financial year beginning on July 1. END START The budget totalled $T40,000,000, a rise of $T2,700,000 over the previous year. END START END START END START END START END START ASIA — PACIFIC END START END START END START TUVALU END START END START END START Area: 26 sq km. END START Population: 8,229 (1985). END START Capital: Funafuti atoll. END START Languages: English, local languages. END START Religion: Christianity. END START Currency: Australian dollar (US$1.00=A$1.2481 as at Sept. 30, 1991). END START END START POLITICAL SYSTEM END START END START END START The head of state of Tuvalu, an independent special member of the Commonwealth since October 1978, is the United Kingdom sovereign, represented by a Governor-General. END START Legislative authority is vested in a unicameral 12-member Parliament which is popularly elected for up to four years. END START Executive power is exercised by a Prime Minister elected by MPs from among their number, and a Cabinet appointed by the Governor-General upon the advice of the Prime Minister. END START END START Main government leaders END START END START END START Governor-General: Toalipi Lati. END START END START END START Prime Minister: Bikenibeu Paeniu (also Minister of Foreign Affairs; Economic Planning). END START END START END START Other principal ministers: Alesana Seluka (Deputy Prime Minister; Minister of Finance and Commerce); Ionatana Iontana (Works and Communications); Toomu Sione (Natural Resources; Home Affairs Works and Communications). END START END START Political parties. END START END START END START None. END START END START Elections END START END START END START Bikenibeu Paeniu became Prime Minister following a general election in September 1989 when he defeated Tomasi Puapua, who had held the post since 1981 [see p. 36977]. END START END START 1990/91 OVERVIEW END START END START END START Toalipi Lati succeeded Sir Tupua Leupena as Governor-General of Tuvalu on Oct. 1, 1990. END START END START END START Following a large budget deficit in 1990 the Minister of Finance and Commerce announced plans to reduce public spending. END START END START END START END START END START ASIA — PACIFIC END START END START END START UNITED STATES PACIFIC TERRITORIES END START END START END START NORTHERN MARIANAS END START END START END START Status: US Commonwealth Territory. END START Area: 457 sq km. END START Population: 31,563 (1987 est.). END START Capital: Saipan. END START Languages: English (official); also Chamorro, Carolinian and Japanese. END START Religion: Christianity. END START Currency: US dollar. END START END START Political system END START END START END START Originally part of the UN Trust Territory of the Pacific administered by the United States, the Northern Mariana Islands voted to become a US Commonwealth Territory in 1975, and a new Constitution became operational in 1978. END START One of two US Commonwealth Territories (Puerto Rico is the other — see p. 38241), its inhabitants have US citizenship. END START Technically, however, the territory's new status was not internationally recognized until the formal termination of the UN's Trusteeship in December 1990 [see below; p. 37920]. END START END START END START Executive authority is vested in a popularly elected Governor, who is assisted by the Northern Marianas Commonwealth Legislature. END START The legislature consists of a nine-member Senate and a 15-member House of Representatives; its members are elected for two-year terms. END START END START Main government leaders END START END START END START Governor: Lorenzo (Larry) De Leon Guerrero. END START END START Political parties END START END START END START Political activity mirrors that on the US mainland, and is therefore dominated by the Democratic Party and the Republican Party. END START END START Elections END START END START END START Following gubernatorial and legislative elections in November 1989, the Republicans controlled the office of Governor and the Senate, while the Democrats had a majority in the House of Representatives [see p. 37886]. END START END START 1990/91 OVERVIEW END START END START END START The UN Security Council formally approved the termination of the UN Trust Territory on Dec. 22, 1990 [see p. 37920], thereby giving full legality to the Commonwealth status of the Northern Marianas Islands. END START END START AMERICAN SAMOA END START END START END START Status: US Unincorporated Territory. END START Area: 195 sq km. END START Population: 38,2003 (1989 est.). END START Capital: Pago Pago. END START Languages: English, Samoan. END START Religion: Christianity. END START Currency: US dollar. END START END START Political system END START END START END START Executive authority is vested in a Governor, who is popularly elected for a four-year term. END START The legislature (Fono) consists of an 18-member Senate elected for four years by Matai (traditional clan leaders), and a popularly elected House of Representatives elected for two years. END START The territory also elects one (non-voting) delegate to the United States House of Representatives. END START In 1986 a constitutional convention comprehensively revised the territory's constitution, but the changes have yet to be ratified by the US Congress. END START END START Main government leaders END START END START END START Governor: Peter Coleman. END START END START Elections END START END START END START Coleman was elected Governor in November 1988. END START END START 1990/91 OVERVIEW END START END START END START A referendum held in November 1990 decisively rejected the proposal that the Governor's power of veto should be restricted. END START END START GUAM END START END START END START Status: US Unincorporated Territory. END START Area: 549 sq km. END START Population: 132,726 (1990 est.). END START Capital: Agana. END START Languages: English (official); also Chamorro and Japanese. END START Religion: Christianity. END START Currency: US dollar. END START END START Political system END START END START END START Executive authority is vested in a Governor, popularly elected for a four-year term. END START The Guam Legislature consists of 21 members (senators) who are popularly elected for two years. END START The territory elects one (non-voting) delegate to the US House of Representatives. END START END START Main government leaders END START END START END START Governor: Joseph F. Ada, in office since 1987. END START END START Political parties END START END START END START Political activity mirrors that on the US mainland, and is therefore dominated by the Democratic Party and the Republican Party. END START END START Elections END START END START END START Ada was re-elected Governor in November 1990. END START In legislative elections the same month the Democrats won 11 seats compared with 10 for the Republicans. END START END START 1990/91 OVERVIEW END START END START END START Discussions continued throughout 1990 between the Guam commission for self-determination, led by Ada, and the US government on the terms of the territory's future Commonwealth status. END START (In a referendum in 1982 Commonwealth status had been the most popular option). END START The main obstacles to an agreement appeared to be the desire of the Guam government to retain veto powers over the application within the territory of US federal legislation, and the issue of self-determination for the indigenous Chamorros, who constituted some 45 per cent of the population. END START The issue of the US military bases on Guam was also discussed [see p. 37886]. END START END START END START END START END START ASIA — PACIFIC END START END START END START VANUATU END START END START END START Area: 12,190 sq km. END START Population: 152,000 (1989 World Bank est.). END START Capital: Port Vilau. END START Languages: English, French, Bislama (all official). END START Religion: Christianity. END START Currency: vatu (US$1.00=110.953 vatu as at Sept. 30, 1991). END START END START POLITICAL SYSTEM END START END START END START The Republic of Vanuatu became an independent member of the Commonwealth in July 1980. END START Legislative authority is vested in a unicameral Parliament, the 46 members of which are elected for four years on the basis of universal adult franchise. END START Executive power is exercised by a Prime Minister (who is elected by Parliament from among its members) and by a Council of Ministers which consists of MPs appointed by the Prime Minister. END START The President, the republic's head of state, is elected for five years by an electoral college composed of the Parliament and the Presidents of the Regional Councils (local government bodies, to which a considerable degree of power is constitutionally devolved). END START END START Main government leaders END START END START END START President: Fred Timakata. END START END START END START Prime Minister: Maxime Carlot replaced in December 1991 Donald Kalpokass, who had replaced Fr Walter Lini, in September [see pp. 38442; 38676]. END START END START END START Other principal ministers: Sethy Regevanu (Finance; Housing). END START END START 1990/91 Cabinet changes END START END START END START On Nov. 19, 1990, Lini conducted a reshuffle in which he took over the portfolios of Civil Aviation and Tourism; Energy; Fisheries; and Foreign Affairs. END START Another reshuffle on Feb. 4, 1991, included the replacement of Finance Minister Sela Molisa, and on June 27 four Ministers were dismissed, including Kalpokas, hitherto Education and Foreign Affairs Minister. END START END START Ruling party END START END START END START The Union of Moderate Parties (UMP, Maxime Carlot l.); the traditional francophone opposition to Lini's anglophone government, won 42 per cent of the vote and 19 seats in elections in December 1991 [see p. 38676]. END START END START Other main political parties END START END START END START The Vanuaaka Pati (VP — Our Land Party, Walter Lini l.), a vehicle for" Melanesian socialism"; Melanesian Progressive Party (MPP, Barak Sope ch.); established in 1988 by former members of the VP. END START END START Elections END START END START END START In a general election held on Dec. 2, 1991, the UMP finished as the largest single party [see p. 38676]. END START END START 1990/91 OVERVIEW END START END START END START Although the VP remained the dominant force in Vanuatu, the party was unable to regain the authority which it had lost during the leadership struggle of 1988 [see p. 36381]. END START The party was effectively opposed by the new MPP (founded by Barak Sope, Lini's rival, whose conviction following the 1988 coup attempt had been quashed on appeal — pp. 36397-98; 36526), in alliance with the conservative UMP. END START The VP's position was also undermined by Lini's poor health (he had been left partially disabled by a stroke in 1987) and by the charge that the government was too authoritarian. END START This charge was highlighted in mid-1990 when the government announced the establishment of a review committee to examine the possibility of constitutional reform prior to the 1991 general election [see pp. 37882-83]. END START Of the 35 members of the committee 24 were drawn from the VP. END START END START END START Lini's increasing insecurity was reflected in his decision in late 1990 to assume responsibility for several key Cabinet portfolios, and his dismissal of Finance Minister Molisa in early 1991. END START Numerous political appointees and civil servants were also replaced by friends and relations of Lini, whom he considered to be more loyal. END START Although the VP won local elections in February 1991, there was evidence of increasing discontent within the party over Lini's leadership, accentuated in May 1991 when he suffered a heart attack. END START In an effort to bolster support Lini demanded a pledge of loyalty from each of his ministers. END START After undergoing medical tests in Australia, Lini returned to work on June 14 and, on June 27, dismissed four ministers who had not acceded to his loyalty pledge. END START These included Donald Kalpokas, the VP's general secretary, who was sacked as Minister of Education and Foreign Affairs, together with Home Affairs Minister Iolu Abbil, Lands Minister William Mahit and Trade Minister Harold Qualao. END START END START END START Vanuatu's 1991 budget, as presented to the legislature in late 1990, called for expenditure the equivalent of US$42,000,000, an increase of 7.8 per cent compared with 1990. END START END START END START President Timakata made a state visit to China in October 1990. END START END START END START END START END START ASIA — PACIFIC END START END START END START WESTERN SAMOA END START END START END START Area: 2,831 sq km. END START Population: 168,000 (1988). END START Capital: Apia. END START Languages: Samoan, English. END START Religion: Christianity. END START Currency: tala (US$1.00=2.385 tala as at Sept. 30, 1991). END START END START END START Major international affiliations: ADB. END START END START POLITICAL SYSTEM END START END START END START Western Samoa achieved independence from New Zealand in 1962 and became a member of the Commonwealth in 1970. END START The head of state, the O le Ao O le Malo, acts as a constitutional monarch with the power to dissolve the unicameral 47-member Fono (the legislative assembly) and to appoint a Prime Minister upon its recommendation. END START The Fono is elected by universal suffrage for up to three years, although the right to stand for election remains confined to members of the Matai (elected clan leaders). END START END START Main government leaders END START END START END START O le Ao O le Malo: Susuga Malietoa Tanumafili II. END START END START END START Prime Minister: Tofilau Eti Alesana (also Minister for Foreign Affairs; Broadcasting; Police and Prisons). END START END START END START Other principal ministers: Tuilaepa Sailele Malielegaoi (Finance); Fuimaono Lotoman (Justice). END START END START 1990/91 Cabinet changes END START END START END START A new Cabinet was appointed in May 1991 after the April general election [see pp. 38196-97]. END START END START Ruling party END START END START END START Human Rights Protection Party (HRPP, Alesana l.). END START END START Other main political party END START END START END START Samoan National Development Party (SNDP, Va'ai Kolone l.). END START END START Elections END START END START END START In the general election of April 1991 the HRPP was returned to office with 26 seats, while the opposition SNDP won 18 [see pp. 38153-54]. END START END START 1990/91 OVERVIEW END START END START END START At the beginning of 1990 the Matai (elected clan chiefs) continued to dominate the electoral system by constituting both the electorate and the only source of candidates for 45 of the 47 seats in the Fono. END START The system was being increasingly undermined, however, both by the growing numbers of those holding Matai titles and by a reduction in the traditional structures through which the chiefs had exercised authority. END START In October 1990 all citizens over the age of 21 were invited to vote on two proposed constitutional reforms. END START The first, which involved the creation of an electoral system based on universal suffrage, was narrowly approved; the second, the proposed creation of an upper legislative chamber composed of Matai, was rejected. END START Despite opposition from the SNDP, the result of the referendum was translated into legislation which was passed by the Fono in December. END START END START END START The Fono was dissolved in February 1991 and a general election was held on April 5, some weeks later than had originally been scheduled because of the difficulties involved in registering the 80,000 newly enfranchised electors. END START Initial results gave the HRPP 26 seats compared with 18 for the SNDP and three independents. END START Among the defeated candidates was opposition leader Tupua Tamasese Efi. END START By the time that the new Fono convened in early May, the traditional political manoeuvring had increased the HRPP's legislative strength to 30 seats, compared with 16 for the SNDP and one independent. END START Alesana was re-elected Prime Minister for what, he later stated, would be his final term in office. END START Among the new ministers appointed by the Prime Minister was Fiame Naomi, the country's first female Cabinet member. END START END START END START END START END START ASIA — PACIFIC END START END START END START SOUTH PACIFIC FORUM END START END START END START Background: The SPF, created in 1971, is a regional organization of independent and self-governing states in the South Pacific. END START END START END START Membership: Australia, the Cook Islands, Fiji, Kiribati, the Marshall Islands, the Federated States of Micronesia (FSM), Nauru, New Zealand, Niue, Papua New Guinea (PNG), the Solomon Islands, Tonga, Tuvalu, Vanuatu and Western Samoa. END START END START END START Executive body: South Pacific Forum Secretariat. END START END START END START Secretary-General: Henry Fati Naisali. END START END START END START END START END START END START END START END START END START Keesings Contemporary Archives. Sample containing about 61075 words from a periodical (domain: world affairs) Data capture and transcription Longman ELT BNC World Edition: Header automatically generated by mkhdr 0.30 Approximately 891 Kbytes running text, containing about 61075 orthographically-defined words; for encoding details see <tagUsage> element. Oxford University Computing Services13 Banbury RoadOxford OX2 6NN U.K.Telephone: +44 1865 273221Facsimile: +44 1865 273275Internet mail: natcorp@oucs.ox.ac.ukHLE krw112 THIS TEXT IS AVAILABLE WORLDWIDE only as part of the British National Corpus at nominal charge FOR ACADEMIC RESEARCH PURPOSES SUBJECT TO A SIGNED END USER LICENCE HAVING BEEN RECEIVED BY OXFORD UNIVERSITY COMPUTING SERVICES, from whom forms and supporting materials are available. THIS TEXT IS NOT AVAILABLE FOR COMMERCIAL RESEARCH AND EXPLOITATION unless terms have first been agreed with the BNC Consortium Exploitation Committee. Apply in the first instance to Oxford University Computing Services. It is your responsibility, as a user, to ensure that an End User Licence is in place. For your information, the Terms of the End User Licence are set out in the corpus header, which is likely to have a file name similar to "corphdr" or "CORPHDR". Distribution of any part of the corpus under the terms of the Licence must include a copy of the corpus header. Distribution of this corpus text under the terms of the Licence must include this header embodying this notice. THE EXACT CONDITIONS OF USE FOR THIS TEXT ARE NOT CURRENTLY KNOWN TO THE ARCHIVING AGENCY. PLEASE CONTACT THE DATA CAPTURE AGENCY NAMED IN THIS HEADER FOR FURTHER INFORMATION. 1994-11-24 Keesings Contemporary Archives. Longman Group UK LtdHarlow1991 See the project description in the corpus header for information about the British National Corpus project. 1991: W non ac polit law eduCurrent events - Periodicals World politics - Periodicals History - Periodicals politics 2000-12-13edOUCSLast check for BNC World first release2000-09-01edOUCSCheck all tagcounts2000-06-23edOUCSResequenced s-units and added headers2000-01-21edOUCSAdded date info2000-01-09edOUCSUpdated all catrefs2000-01-08edOUCSUpdated source title2000-01-08edOUCSUpdated titles1999-12-25edOUCScorrected tagUsage15th September 1999edUCREL, University of LancasterPOS codes revised for BNC-2; header updated1994-11-24eddominicInitial accession to corpus END START END START END START END START EUROPE END START END START END START SOVIET UNION/CIS END START END START END START End of Soviet Union — Formation of CIS — Resignation of Gorbachev END START END START END START The Soviet Union was on Dec. 21 replaced by a Commonwealth of Independent States (CIS), grouping 11 of the former constituent republics of the Union (but not Georgia) in a loose alliance, without central governing bodies. END START The CIS was formally established at a meeting in Alma Ata, when assurances were given to the world community that single control would be maintained over the nuclear weapons on former Soviet territory, and that the treaty obligations of the Soviet Union would be respected by the newly independent states. END START The Russian Federation took over many of the functions of the former Union. END START END START END START The President of the Soviet Union, Mikhail Gorbachev, resigned on Dec. 25, to praise from world leaders for his achievements over six years in office. END START END START END START Some observers believed that the new formation should not be viewed as a permanent body, but rather as a means for the republics to escape the central power exercised by the Soviet Union. END START Disputes between CIS members became apparent immediately, especially over economic issues, and control of armed forces. END START END START Events prior to formation of CIS END START END START END START The Soviet Union was declared defunct on Dec. 8, when the leaders of the Slav republics of Byelarus, Russia, and Ukraine met near Minsk (Byelarus). END START The Presidents of Russia and Ukraine, Boris Yeltsin and Leonid Kravchuk, and the Chair of the Supreme Soviet of Byelarus, Stanislav Shushkevich, issued a statement:" The USSR, as a subject of international law and a geopolitical reality, ceases to exist." END START They announced that the new body which they had established, the Commonwealth of Independent States (Sodruzhestvo Nyezavisimikh Gosudarstv), was open to all republics of the former Soviet Union, and to any other state which shared its aims. END START END START END START The meeting in Minsk was described as intended to prevent the splitting apart of the Slav republics in the conditions of the Soviet Union's disintegration. END START It followed the approval on Dec. 4 by the USSR Soviet of the Union (the lower house) of the draft Union Treaty, under negotiation since the failed coup in August [see pp. 38368-73]. END START As in November, Gorbachev warned of disaster if such a treaty (now intended to form a" Union of Sovereign States" — see p. 38581) binding the republics of the Soviet Union and confirming the relationship between the centre and the republics were not signed. END START However, the Treaty's successful conclusion appeared increasingly unlikely after Dec. 1, when Ukraine's wish for independence was confirmed by a nine-tenths majority in a referendum, and its Supreme Soviet had subsequently voted on Dec. 6 not to ratify any Union Treaty [see below]. END START A meeting between Yeltsin and Gorbachev on Dec. 5 had concluded that a Treaty would be meaningless without Ukraine's participation. END START END START END START Gorbachev described the Minsk declaration as an" illegal and dangerous" constitutional coup. END START He attempted to use the union structures to guide developments, calling on Dec. 9 for a Congress of Peoples' Deputies to be convened to discuss the Minsk agreement. END START The Kazakhstan President, Nursultan Nazarbayev, was also initially unenthusiastic over the exclusively Slav composition of the Commonwealth, and at a meeting on Dec. 9 between Nazarbayev, Gorbachev and Yeltsin, who was acting as the envoy of the Commonwealth, he said that Gorbachev was still needed as a central force. END START END START END START The leaders of Kazakhstan and the Central Asian republics (Kirgizstan (formerly Kirghizia), Tajikistan, Turkmenistan (formerly Turkmenia), and Uzbekistan), met in Askhabad in Turkmenistan on Dec. 12 to discuss their reaction to the Minsk declaration. END START They decided to become members of the CIS provided they were given the status of its co-founders. END START END START END START This meeting followed the ratification on Dec. 10 and 12 of the CIS declaration by the original signatories' Supreme Soviets. END START The Ukrainian Supreme Soviet made amendments to reinforce the republic's status as an independent state, including measures to strengthen border guarantees, to have its own armed forces and to bear responsibility for minorities within its borders. END START Nationalist deputies in Byelarus were also putting forward demands, including requests for a republican currency, a share of Union gold and currency, and control of armed forces on Byelarussian territory. END START END START Alma Ata meeting establishing CIS END START END START END START On Dec. 21, in Alma Ata (Kazakhstan), the leaders of the republics who had met in Minsk and Askhabad were joined by those of Moldova and the trans-Caucasian republics of Azerbaijan and Armenia. END START Georgia, the only other former Soviet republic (bar the Baltic states, which had become independent in September — see pp. 38419-20), sent observers, but internal power struggles (including the attempt to depose the Georgian President, Zviad Gamsakhurdia), prevented Georgia's participation. END START The participants in the meeting signed the Dec. 8 protocol on the formation of the CIS. END START They signed a declaration which (i) stated that the CIS was open to all former Soviet states and any other countries which shared its objectives; (ii) stated that strategic forces would remain under unified control; (iii) confirmed co-operation on a single economic space; and (iv) stated that member states of the CIS undertook to honour the international obligations of the former Soviet Union. END START (The USSR Constitutional Committee had confirmed on Dec. 12 that obligations conferred by the Soviet Union's signature of international treaties applied to the republics which had left the Union, whether ratified by them or not.) END START END START END START The meeting supported Russia's request to take over the Soviet Union's seat on the UN Security Council, and Russia, Ukraine and Byelarus, already UN members, pledged to support other member states' applications for full UN membership. END START A joint measure on nuclear arms was agreed [see below]. END START It was made clear that the CIS was not considered a state or even a supranational grouping, and would therefore have no citizenship. END START END START END START Gorbachev was not invited to attend the Alma Ata meeting, but sent a letter setting out his views on the new developments. END START END START END START He advocated a co-ordinating body in the new structures, to prevent the process of dismemberment which was under way in the country. END START He suggested as a name" The Commonwealth of European and Asian States" (Sodruzhestvo Yevropeiskikh i Asiatskhikh Gosudarstv), and proposed joint citizenship for its population — of the Commonwealth and of the relevant constituent states. END START He emphasized the need for single command of strategic forces and for a common foreign policy, with the Commonwealth being recognized as a subject in international law. END START The letter concluded with a request for a final session of the USSR Supreme Soviet in order to hand over power constitutionally, because" it is gross discontinuities, destructive revolutions and usurpations in the course of social development which are one of the reasons for the historic misfortunes of our peoples". END START END START END START Prior to the Alma Ata meeting, Kazakhstan's President Nazarbayev had expressed his preference for the name" Eurasian Commonwealth of Independent States" for the new body. END START He appeared to conceive the Commonwealth as a tighter union than was envisaged by the Slav republics, and the purpose of the Alma Ata meeting as negotiating the new structure rather than formally including new members, as its original founders had appeared to suggest. END START END START Abolition of Union structures END START END START END START On Dec. 19 Yeltsin issued three decrees bringing under Russian Federation control all the ministries of the former USSR on Russian territory, except for the Ministry of Defence and the Ministry of Atomic Power and Industry. END START END START END START The USSR Ministry of External Relations, established in November from the old Foreign Ministry [see p. 38581], was abolished and its property transferred to the Russian Foreign Ministry. END START Embassies abroad thus came under Russian rather than Soviet jurisdiction. END START The Russian Ministry of Security and Internal Affairs was established, comprising the former USSR Ministry of Internal Affairs, the Russian Federal Security Agency and those bodies which, as approved by the USSR Soviet of the Republics on Dec. 3, had replaced the Committee for State Security (KGB), abolished in October [see p. 38537]: the Inter-Republican Security Service and the Foreign Intelligence Service. END START Viktor Barannikov, USSR Interior Minister, was appointed head of the new Russian Ministry. END START END START END START The Economic Directorate of the Russian President's Administration transferred to its budget the personnel and funds (including hard currency) of the Kremlin, the USSR President's Administration and the Interstate Economic Committee — IEC, which was set up in November [see p. 38581]. END START The head of the IEC, Ivan Silayev, was sent to Brussels, as Russia's permanent representative to the European Communities (EC). END START END START END START On Dec. 28 the Russian Constitutional Court demanded the suspension of the decree forming the new Russian Ministry of Security and Internal Affairs until the court could rule on its constitutionality. END START END START END START On Dec. 27 All-Union Television and Radio became the Ostankino Russian State Television and Radio Company. END START Yegor Yakovlev remained as its head. END START Yeltsin announced at the meeting in Minsk on Dec. 30 that the first channel of Central Television would be given over to the Commonwealth, the second would be Russian, the third would be Moscow Television and the fourth would be an educational channel. END START END START END START On Dec. 26 a joint session of the Soviet of the Republics and the Soviet of the Union issued a declaration on their own abolition; a meeting of Dec. 12 had been inquorate, boycotted by Russian, Byelarussian and Ukrainian deputies. END START END START END START At the Dec. 26 meeting the deputies also released from their duties as of Jan. 2, 1992, the staff of the USSR Supreme Court, the judges of the Supreme Court of Arbitration, and the USSR Procurators' Office. END START Five hundred deputies called for a session of the Congress of People's Deputies to formalize the dissolution of the Soviet Union, but the call was not heeded. END START On Dec. 23 the USSR Committee for the Supervision of the Constitution had dissolved itself. END START END START END START The eight heads of government of the republics forming the economic community, formed on Oct. 18 [see p. 38537], had postponed indefinitely their meeting due to open on Dec. 18 because of" the uncertainty of the political situation". END START The meeting had been due to clarify agreements in the Economic Community, prior to ratification by the constituent republics' Supreme Soviets. END START Viktor Gerashchenko, chair of Gosbank, the USSR State Bank, resigned on Dec. 26. END START END START Gorbachev's resignation END START END START END START After days of speculation about his future following the collapse of any central authority in the former Soviet Union and following a decision at the Dec. 21 Alma Ata meeting to abolish the post of President, Mikhail Gorbachev announced his resignation on Dec. 25 in a speech on All-Union Television. END START END START END START In his resignation speech, Gorbachev asserted that although he had been in favour of" the independence and self-determination of peoples and the sovereignty of republics", he had also believed in" preserving the union state and the country's integrity". END START He was therefore resigning on principle. END START He reviewed the changes made during his period as Soviet leader saying that" a totalitarian system which deprived the country of an opportunity to become wealthy and prosperous a long time ago has been liquidated", and he expressed his hopes for the future:" Some mistakes could probably have been avoided, much been done better, but I am sure that sooner or later our shared efforts will achieve results." END START END START END START Yeltsin had said at a press conference after the Alma Ata meeting that" we do not want to follow the tradition which has taken shape since 1917 of burying each [former] head and leader of the state and subsequently reburying him or regarding him as a criminal". END START He said that the republican leaders had discussed at the meeting financial and other support for Gorbachev" in the period after his resignation", and he and Gorbachev had a long meeting on Dec. 23 to discuss transition arrangements. END START END START Setting up of CIS bodies END START END START END START At a meeting in Minsk on Dec. 30 the co-ordinating bodies of the new Commonwealth were discussed. END START Temporary agreements were signed setting up councils of heads of state and of heads of government. END START The supreme body was the Council of Heads of State, which would take on the responsibility of legal succession from the dissolution of the Soviet Union. END START The councils would normally meet in Minsk, the Council of Heads of State at least every six and the Council of Heads of Government at least every three months; both would have a rotating chairmanship. END START Joint sittings were allowed, as was the creation of working bodies. END START While the working language would be Russian the official languages would be the state languages of the participating states. END START END START Economic reform END START END START END START There was no concrete proposal made at the meeting in Minsk on Dec. 30 to settle economic issues affecting the member states of the CIS. END START A protocol was signed, however, preserving economic ties into the first quarter of 1992 and with the aim of guaranteeing over that period deliveries of the equivalent of 70 per cent of first quarter deliveries in 1991. END START END START Military arrangements END START END START END START On resigning as President on Dec. 25, Gorbachev also resigned as Commander-in-Chief of the Armed Forces; the nuclear codes were handed over to Yeltsin. END START END START END START At the meeting in Minsk on Dec. 30 agreement was reached on strategic forces, whereby the CIS states undertook the former Soviet Union's obligations in international treaties, and pledged to pursue a co-ordinated policy in the areas of disarmament and international security. END START END START END START Decisions on the use of nuclear weapons would be made by the President of the Russian Federation in consultation with the leaders of the other republics in which nuclear weapons were stationed — Ukraine, Byelarus and Kazakhstan — and with the leaders of other members of the CIS. END START Byelarus and Ukraine had stated at the Dec. 21 meeting that they wished to sign the 1968 Nuclear Non-Proliferation Treaty. END START Nuclear forces in Ukraine would be dismantled by the end of 1994 (including tactical nuclear weapons by July 1992). END START It was also agreed that conventional armed forces would come under a single armed forces command, though leaving an option for CIS member states to control their own armed forces — this was in response to demands from Moldova, Ukraine and Azerbaijan. END START END START END START I. Kalinichenko was appointed Commander-in-Chief of border troops. END START Settlement of the issues of border troops and conventional forces would take place following discussions over the subsequent two months, although it was recognized in the protocols that Ukraine was creating its own armed forces as of Jan. 3, 1992. END START The borders of the former Soviet Union were currently guarded by the Committee for the Protection of State Borders with Joint Command of Border Troops, which had taken over the KGB's responsibility for border troops, as approved by the Soviet of the Republics at its meeting on Dec. 3. END START On Gorbachev's resignation from the post on Dec. 25, the Soviet Defence Minister, Marshal Yevgeny Shaposhnikov became Commander-in-Chief. END START He was asked at the Dec. 30 meeting to continue for the two months while new structures were elaborated. END START END START END START It was also agreed on Dec. 30 that space research would be carried out jointly by CIS member states. END START END START END START Yeltsin announced to the Russian Supreme Soviet on Dec. 25 that all forces of the Russian Security and Internal Affairs Ministry were to be withdrawn from the Caucasus. END START The troops of the former USSR Interior Ministry were already being withdrawn from the disputed Armenian enclave of Nagorny Karabakh in Azerbaijan [see also p. 38582]. END START Sub-units of the regular army would remain on the border between the two republics, but would not contain Armenian troops. END START There were reports of intensified fighting in Nagorny Karabakh during the latter part of December. END START END START END START Republican representatives had met in Moscow to discuss future military structures on Dec. 20. END START Defence Minister Shaposhnikov was pressing for unified command with a supreme commander in charge of all strategic and conventional forces, which would allow little room for republican armies. END START However, Ukrainian President Leonid Kravchuk had signed a decree on Dec. 12 appointing himself commander of the estimated 1,200,000 Soviet troops in Ukraine, and on Dec. 17, following a vote in the republican Supreme Soviet, Azerbaijan's President Ayaz Mutalibov declared himself Commander-in-Chief of the" non-strategic" military forces stationed in Azerbaijan. END START END START END START Yeltsin and Gorbachev had held separate meetings with military commanders on Dec. 11, apparently in an attempt to ensure armed forces support for the new Commonwealth. END START After the closed meeting, military sources reported that Yeltsin had informed them of 90 per cent pay rises which he had ordered the previous week. END START Gorbachev had apparently asked for the military to support him as Commander-in-Chief. END START Gen. Vladimir Lobov was replaced as Chief of General Staff on Dec. 7, on his return from a visit to the United Kingdom, by the Commander of the Leningrad military district, Col.-Gen. END START Viktor Samsonov. END START Lobov's" state of health" was cited as the reason [for his appointment in August see p. 38371]. END START END START Baker's visit — International recognition END START END START END START The United States Secretary of State, James Baker, arrived in Moscow on Dec. 15 for a previously arranged visit. END START In the context of the rapid disintegration of Soviet structures, he was pressed by the individual republics for recognition of their independent status by the USA, especially as, following the Dec. 8 Commonwealth declaration, Baker had announced that" the Soviet Union as we know it no longer exists". END START END START END START In Moscow Baker first held talks with Yeltsin together with the Soviet Defence and Interior Ministers Shaposhnikov and Barannikov, Gorbachev, the then Foreign Minister Eduard Shevardnadze, and Russian government leaders. END START He travelled to meet the leaderships of Kazakhstan, Kirgizstan, Ukraine and Byelarus. END START END START END START In response to his requests for assurances on the safety of control over nuclear weapons, he was told that nuclear weapons remained under single control and that disarmament was continuing according to plan. END START However, doubt arose over whether Kazakhstan was prepared to give up the nuclear weapons on its territory, as it had earlier stated and as Yeltsin was assuring it would. END START END START END START Baker travelled from the former Soviet Union on Dec. 19 to Brussels, where he reported to the meeting there of North Atlantic Treaty Organization (NATO) Defence Ministers. END START Though assuring them that Kazakhstan, Byelarus and Ukraine had undertaken to give up their nuclear weapons, he also warned of the danger of social unrest in the former Soviet Union. END START NATO ministers promised humanitarian aid, and drew up guidelines for recognising the independence of the former Soviet republics. END START German Foreign Minister Hans-Dietrich Genscher, in the context of meetings both of NATO and of the EC, was demanding swift recognition to avoid the creation of" uncertainties". END START END START END START International recognition of the former constituent republics of the Soviet Union, and of Russia as its legal successor, followed swiftly after the Alma Ata agreement. END START END START END START The USA gave diplomatic recognition to Russia together with Ukraine, Armenia, Kazakhstan, Byelarus and Kirgizstan on Dec. 26. END START It also recognized the independence of the remaining republics, but diplomatic recognition would be dependent on their meeting conditions of human rights and democracy. END START END START END START On Dec. 25 the EC published a communiqué in which it considered Russia to be" exercising the rights and international obligations of the former Soviet Union". END START The following day the EC recognized Ukraine and Armenia as independent states, as they had offered written acceptance of the EC criteria for recognition. END START These included respect for human and minority rights, not altering borders by force and observation of the treaties signed by the Soviet Union. END START The EC meeting at Maastricht [see pp. 38657-59] had broken off discussions on economic and political union to seek assurances of security following the Dec. 8 Minsk agreement. END START END START END START Norway had become the first NATO member to establish diplomatic relations with Russia, following moves by Bulgaria and Hungary. END START Japan recognized all CIS members on Dec. 28. END START China, which had sharply criticized Gorbachev after his resignation for having caused" political chaos, ethnic strife and economic crisis", nevertheless on Dec. 27 recognized as independent states the members of the CIS. END START Canada, which had recognized Ukrainian independence on Dec. 2 [see below], announced the establishment of diplomatic links with Ukraine and Russia, and recognition of the other nine members of the CIS [for recognition of central Asian republics by Moslem states see below p. 38657]. END START END START END START The Soviet Union's representative at the UN, Yuli Vorontsev, became Russia's representative on Dec. 24, after delivering a letter from Yeltsin to the Secretary-General informing UN members that the Soviet Union would henceforth be represented by Russia. END START END START Foreign debt END START END START END START As agreed with the Group of Seven (G-7) industrialized countries in November [see p. 38581], Vneshekonombank (the Soviet bank for foreign economic affairs), which came under Russian control in December [see p. 38581], ceased principal repayments on the Soviet Union's foreign debt from Dec. 5. END START Talks with creditor Western commercial banks, co-ordinated by Deutsche Bank AG, reached an agreement on Dec. 17 to allow the Soviet Union a three-month delay on principal payments of its debts to banks. END START The Russian Deputy Prime Minister in charge of economic policy, Yegor Gaidar, declared on Dec. 16 that Vneshekonombank was bankrupt. END START END START END START Seven of the original 15 Soviet republics reached a partial agreement on Dec. 5 to divide the Soviet debt. END START The two largest creditor republics, Russia and Ukraine, would take 61.34 per cent and 16.37 per cent of the debt respectively. END START END START The republics END START END START END START Russia: economic reform — Yeltsin's visit to Italy — Threatened resignation of Popov END START END START END START Russia's privatization programme was outlined at a press conference on Dec. 30 by Gaidar. END START Rapid privatization was intended to mitigate the anticipated steep price rises after price liberalization on Jan. 2, by introducing competition in the conditions of mainly monopoly production. END START No ceiling was to be set on prices, except for essentials such as milk, bread, transport, communications and fuel, whose rise in price would be controlled by the government. END START END START END START The privatization programme envisaged a two-stage sale within 1992 of small and medium-sized enterprises, shops, trading companies and uncompleted construction projects. END START The privatization process for state farms, land and housing had not yet been regulated. END START Restrictions were placed on the sale of various amenities and resources. END START Foreigners would be allowed to take part in the privatization on equal terms with Russian citizens, in an attempt to encourage hard-currency investment. END START Workers would be given shares of up to a quarter of the total in their enterprise. END START END START END START Other measures were announced which it was hoped would enable the Russian government to balance its budget in the first quarter of 1992. END START These included a value added tax of 28 per cent, a 32 per cent profit tax, and a 45 per cent tax on the profits of commodity brokers. END START Enterprises would be required to sell a portion of their hard-currency profits to Russia's State Bank at the artificially low commercial rate. END START Defence orders would be cut to at least half the 1991 rates, and state investment would be reduced by seven- or eight-fold. END START A price-indexed minimum income was assured to protect the unemployed. END START However, there were warnings of cash-flow problems, and it was announced that by April 1992 a 1,000 rouble note would be in circulation. END START A 500 rouble note would come into circulation in the near future. END START END START END START The Russian Supreme Soviet, meeting on Dec. 25, heard Yeltsin's report on the new Commonwealth structure. END START It voted by 137 votes to two, with 14 abstentions, to change the republic's name from the Russian Soviet Federated Socialist Republic (RSFSR) to The Russian Federation (Russia). END START On Dec. 27 Vice-President Aleksandr Rutskoi was removed from the chairmanship of five state committees which were then transferred to the jurisdiction of the government. END START This followed increasing criticism by Rutskoi of the Russian government, especially of its economic policy. END START In an interview with the Nezavisimaya gazeta of Dec. 18 he had said" there is no governing power and no democracy in Russia". END START END START END START Yeltsin made an official visit to Italy on Dec. 19-20, signing with the Italian Prime Minister Giulio Andreotti a joint declaration establishing the basis for the two countries' relationship. END START The major results of the visit were in the economic sphere, including a deal on the conversion of military plants to civilian production and the unfreezing of US$6,000 million of credits to the Soviet Union from Italy, of which 80 per cent would go to Russia. END START Italy also granted immediate food aid to Russia worth US$1,500 million. END START It was agreed that the Italian conglomerate FIAT would take a 30 per cent share in the Volga Automotive Plant Association factory (VAZ) at Togliattigrad, the largest car-making plant in Russia [for 1966 Italian-Soviet agreement to construct plant see pp. 21404; 21566]. END START END START END START The mayor of Moscow, Gavriil Popov, threatened to resign on Dec. 10 over differences with the Moscow city council and the Russian Supreme Soviet over his programme of economic reform, particularly the proposed speed of privatization of housing and businesses within the city. END START He repeated his threat at the constituent congress of the Democratic Reform Movement (DRM — see p. 38347) on Dec. 15. END START After a meeting with Yeltsin on Dec. 26 he withdrew the threat. END START END START Ukraine: Independence referendum and presidential elections — Economy END START END START END START On Dec. 1 Ukraine held a referendum on the independence of the republic, in parallel with republican presidential elections. END START The result was an overwhelming majority in favour of an independent Ukraine, even in predominantly Russian areas, such as Crimea and the east of the republic. END START The chair of the Supreme Soviet, Leonid Kravchuk, was elected President. END START END START END START Official results put the turnout at 84 per cent, of which 90.32 per cent had voted affirmatively to the question" do you confirm the proclamation [made on Aug. 24 — see p. 38373] of Ukraine's independence?". END START Kravchuk gained 61.59 per cent of the votes, beating six other candidates, including the Ukrainian nationalist, Vyacheslav Chornovil, who came second with 23 per cent. END START END START END START The independence referendum had provoked warnings from Gorbachev that it would lead to a breakup of the Union and hence disaster. END START The Romanian Parliament had issued objections on Nov. 28 to the referendum's being held in those Ukrainian territories which between 1918 and 1940 had been part of Romania, namely Northern Bukovina and Bessarabia, but which had been ceded to Ukraine under the terms of the Molotov-Ribentropp pact. END START END START END START In a statement issued on Dec. 3 the Russian government recognized the independence of Ukraine. END START Among the first countries to recognize Ukraine as an independent state were the former Soviet republics of Estonia, Latvia and Lithuania, other eastern European countries, Croatia, and Canada (which had a large Ukrainian minority). END START A fundamental shift in US policy towards the Soviet Union was noted by observers prior to the referendum in reports that the USA would be prepared to recognize an independent Ukraine, provided that US concerns over arms and human rights were met. END START END START END START On Dec. 6 the Ukrainian parliament voted not to sign any Union Treaty with the Soviet Union, following a declaration made the previous day that the 1922 Treaty creating the Soviet Union, and any further Soviet constitutional treaties, were null and void in relation to Ukraine. END START The parliament also gave a final reading to the bill creating republican armed forces [see p. 38538]. END START END START END START Russia's economic reform programme [see above] was causing friction between it and the other republics. END START Ukraine planned to introduce its own circulating coupons for food and essential goods purchases if Russia failed to deliver extra roubles to safeguard Ukraine against the freeing of consumer prices in Russia from Jan. 2 (a measure already delayed by two weeks). END START On Dec. 27, Ukraine's Supreme Soviet passed a measure freeing prices from Jan. 2, in connection with Russia's economic policy, and the Ukrainian government discussed on Dec. 30 the measures to be taken to implement distribution of coupons from Jan. 10, in order" to protect Ukraine's consumer market". END START END START Moldova: presidential elections — violence END START END START END START The incumbent, Mircea Snegur, was elected President of Moldova in popular elections on Dec. 8. END START Two candidates had withdrawn from the contest, leaving him as sole contender. END START Official results put the turnout at 82.88 per cent, of which 98.17 per cent had voted for Snegur. END START END START END START Moldova had declared independence from the Soviet Union in August 1991 [see p. 38373]. END START The Moldovan Popular Front, which had backed Snegur, a former communist, was split over the issue of unification with Romania. END START Snegur favoured a gradual approach, but part of the Popular Front, demanding immediate action, was calling for a boycott of the presidential elections. END START On Dec. 1 in Kishinev (the capital), a National Council of Reunification was established, consisting of 28 Moldovan and 37 Romanian parliamentarians. END START END START END START The presidential elections were partially boycotted in the predominantly Russian area of the Dnestr region, which had held its own presidential elections on Dec. 1, together with a referendum on independence for the region. END START Igor Smirnov had been elected" president", and 98 per cent of the 78 per cent turnout reportedly had voted for independence. END START In southern Moldova, an Orthodox Turkic-speaking area (Gagauz), 85.1 per cent of the population had taken part in a vote on Dec. 1 which gave a 95.4 per cent majority for independence. END START Concurrently, Stepan Topol was elected" president" of the Gagauz region. END START On Dec. 11 Moldovan republican leaders had declared these referendums illegal. END START END START END START Violence broke out on Dec. 13, when shooting between Moldovan Interior Ministry troops and ethnic Russian militia reportedly left five people dead in the town of Dubossary. END START The armed forces withdrew on Dec. 16, following a meeting between Snegur and Smirnov. END START The Moldovan leadership had claimed that the Soviet Army in the republic was supplying arms to" extremist elements" in Russian areas, and on Dec. 7 it had appealed to the UN for action. END START END START Kazakhstan: elections — Name change END START END START END START Nursultan Nazarbayev was elected unopposed as President of Kazakhstan by popular mandate on Dec. 1. END START 98.76 per cent of those eligible to vote had supported Nazarbayev, with 1.4 per cent voting against, according to the Central Electoral Commission. END START Yerik Asanbayev, Nazarbayev's nominee, became Vice-President. END START END START END START Nazarbayev was sworn in at a session of the republican Supreme Soviet on Dec. 10, at which the republic dropped the words" soviet socialist" from its title to become the Republic of Kazakhstan. END START Abdildin was elected chair of the Supreme Soviet. END START END START END START On Dec. 16 the Supreme Soviet passed a law declaring Kazakhstan's independence, which was recognized by Russia on the following day. END START END START Uzbekistan: presidential elections END START END START END START On Dec. 29 presidential elections were held in Uzbekistan and won by the incumbent President, Islam Karimov, reportedly with 86 per cent of the vote. END START Muhamad Salikh, chair of the ErK democratic party, gained 12 per cent. END START The opposition movement, Birlik, was banned from taking part, as it was not officially constituted as a political party. END START In parallel, a referendum on independence was held, in which 98.2 per cent of those taking part voted in favour. END START Karimov had visited Turkey on Dec. 16-19 and signed co-operation agreements. END START END START Autonomous republics END START END START END START The autonomous republics of Mari-El, Mordova and Yakutia, situated within the Russian Federation, held presidential elections during December. END START These popular elections replaced the parliamentary election of the chair of the Supreme Soviet (hitherto de facto president). END START END START END START In Mari-El, the incumbent, Vladislav Zotin, was elected on Dec. 15 by 59 per cent in the second round of voting, beating one other candidate. END START In Mordova on Dec. 22 the Democratic Russia candidate, Vasily Guslyannikov, defeated the incumbent, Nikolai Biryukov.In Yakutia, the incumbent, Mikhail Nikolayev took over 70 per cent of the vote on Dec. 22. END START END START END START On Dec. 28, Nagorny Karabakh (an autonomous region within Azerbaijan) held elections to a parliament, after proclaiming itself a republic. END START Nagorny Karabakh demanded membership of the CIS, it was announced on Dec. 17. END START [See also p. 38582.] END START END START END START Tatarstan's Supreme Soviet also declared on Dec. 28 that the autonomous republic was joining the CIS with the status of co-founder. END START END START END START The Supreme Soviet of South Ossetia (an autonomous region within Georgia) declared the region independent on Dec. 21, and confirmed the resolution on unification with Russia. END START It also voted to establish a republican defence committee. END START END START Visit by Iranian Foreign Minister to Central Asia — Moslem states' recognition of Central Asian republics END START END START END START The Iranian Foreign Minister, Ali Akbar Vellayati, arrived in Moscow on Dec. 24 for a 10-day visit to the Moslem republics of the Soviet Union. END START END START END START After talks in Moscow with Gorbachev, Yeltsin and Shevardnadze, Vellayati visited the republics of Kazkahstan, Kirgizstan, Tajikistan, Turkmenistan, Uzbekistan and Azerbaijan. END START Memorandums of understanding were signed with all the republics, bar Uzbekistan, with which a document was to be signed at a later date. END START The agreements mainly covered transport and communication links, including an agreement to link the autonomous republic of Nakhichevan with Azerbaijan through Iranian territory (Nakhichevan was separated from Azerbaijan within the CIS by Armenian territory). END START END START END START Vellayati said that Iran's relations with the republics would be formulated" through Moscow"; observers noted a rivalry for influence in the area between Iran and Turkey. END START On Dec. 16 Turkey decided to recognize all the newly independent Soviet republics. END START END START END START On Dec. 21, Afghanistan had recognized the independence of all the Moslem republics. END START Pakistan, which had a short time before recognized Azerbaijan's independence, recognized the independence of the Central Asian republics and of the Russian Federation on Dec. 20, following a three-week visit to the Soviet Union by the Minister of State for the Economy which ended on Dec. 18. END START END START END START END START END START EUROPE END START END START END START EUROPEAN COMMUNITIES END START END START END START Maastricht summit END START END START END START The heads of state and government of the European Communities (EC) held a summit meeting in Maastricht, the Netherlands, on Dec. 9-10, to conclude the year-long parallel intergovernmental conferences on European political union (EPU) and economic and monetary union (EMU) which had opened in Rome in December 1990 [see p. 37905-06]. END START END START END START The 12 member country heads of government attending the Maastricht meeting had all been at the Rome summit and at Luxembourg in June 1991 [see pp. 38295-97]. END START END START END START The Maastricht summit ended with agreement early on Dec. 11 on a treaty framework for European union, incorporating the EPU and EMU agreements and setting a timetable for their implementation, and providing for a new security/defence dimension to EC co-operation. END START END START END START At one stage these key agreements appeared jeopardized by the intransigence of the United Kingdom government over the inclusion of social policy in the union treaty. END START However, early on Dec. 11, in what was described by the Financial Times of Dec. 12 as an" astonishing compromise", EC leaders agreed that the entire chapter on social policy should be removed from the union treaty. END START END START END START This tactic, described by the Dutch government as" positive opting out" by the Eleven, effectively left the decision on the social policy chapter as an intergovernmental accord to implement the 1989 Social Charter using EC institutions and machinery (as with the Schengen agreement on border controls — see pp. 38505; 38297). END START A UK government official declared on Dec. 11:" If they decide to do something that we regard as excellent, we will do it too, if they so something terribly damaging, we will choose not to do it." END START The Eleven agreed to proceed by qualified majority vote on health and safety, working conditions, information and consultation of workers, equality at work between men and women, and integration of persons excluded from the labour market. END START A unanimous vote would be necessary on social security and social protection of workers, protection of workers made redundant, representation, collective defence of workers and employers, conditions of employment for third-country nationals, and financial contributions for promoting jobs. END START Pay, the right of association, the right to strike or the right to impose lockouts were not covered by the social agreement. END START END START END START The German Federal Chancellor Helmut Kohl declared at the summit:" What we are doing now is irrevocable. END START On the way to political union we are now crossing the Rubicon. END START There is no going back." END START Italian Foreign Minister Gianni De Michelis described the union treaty as a" victory for Europe" and" the most significant change in Europe since the adoption of the Treaty of Rome" (establishing the European Economic Community in 1957). END START Acting Belgian Prime Minister Wilfried Martens said that the summit had produced" a concrete result" but that he had" other hopes for Europe". END START END START Political union END START END START END START The text on political union as approved by EC leaders dropped from its preamble the word" federal", used in earlier drafts including the most recent Dutch draft of Nov. 11. END START The preamble instead described the treaty as marking" a new stage in the process of creating an ever closer union among the peoples of Europe". END START END START END START The principle of subsidiarity, whereby decisions were taken at as low a level as was feasible, was stressed. END START A new article in the treaty declared that the EC would act" only if and in so far as the objectives of the proposed action cannot be sufficiently achieved by the member states". END START Speaking to the European Parliament (EP) after the summit Ruud Lubbers, Prime Minister of the Netherlands, said that the word federal had been dropped because it meant different things to different people. END START END START END START The treaty on political union introduced new areas of EC competence, including the concept of" union citizenship", and increased the powers of the EP. END START However, common policies on foreign and security policy and on judicial affairs [see below] were to form separate" pillars" standing outside the normal EC decision-making machinery [see also pp. 38295-96]. END START END START END START The dangers of such intergovernmental co-operation were highlighted by Jacques Delors, President of the EC Commission, in a speech to the EP on Nov. 20. END START He warned that" there is not one example of a grouping of nations which has survived on the basis of intergovernmental co-operation". END START He described a situation where external economic relations were managed by the EC and where foreign policy was controlled by member governments as leading to" organized schizophrenia". END START END START Economic and monetary union END START END START END START The Maastricht agreement broadly followed the revised draft EMU treaty presented in late October [see pp. 38543-44]. END START The second stage of EMU, involving the creation of a European Monetary Institute (the precursor to the full European Central Bank), was to start on Jan. 1, 1994. END START The European Council would decide by Dec. 31, 1996, whether the economies of a majority of states (seven of the 12 or six if the UK decided to opt out of stage three) met four key criteria. END START If this were so then the European Council could decide by a qualified majority when to start stage three. END START If no date had been fixed by the end of 1997 than the European System of Central Banks had to be established by July 1, 1998, and stage three would begin by Jan. 1, 1999, at the latest. END START END START END START The four key criteria on economic convergence were (i) that inflation should be no more than 1.5 per cent above the average of the three best-performing member countries; (ii) that the government deficit should not exceed 3 per cent of gross domestic product (GDP) and the public debt should not exceed 60 per cent of GDP; (iii) that the currency should have remained within the 2.25 per cent fluctuation margins in the European Monetary System for at least two years; and (iv) that interest rates should not be more than 2 percentage points above the three best-performing states over the previous 12 months. END START END START END START A special protocol allowed the UK to" opt out" of stage three rather than being locked into the process at this stage. END START END START END START This clause, also proposed in October, had been the subject of a heated House of Commons debate on Nov. 20-21. END START The motion, eventually approved by a clear majority of 101 votes, declared that it was" in Britain's interests to be at the heart of the European Community" but called on the UK government at Maastricht to pursue a policy which would avoid" the development of a federal Europe" and enable it" to exert the greatest influence on the economic evolution of the community while preserving the right of parliament to decide at a future date whether to adopt a single currency". END START During November former Prime Minister Margaret Thatcher had repeatedly called for a referendum before the UK agreed to join moves to introduce a single currency, and the debate further highlighted the divisions within the Conservative Party in its approach to Europe, although Thatcher after the summit reportedly professed herself to be impressed by Major's performance there. END START END START Foreign and security policy END START END START END START Opening provisions of the Treaty on European Union stated that the Union should assert its identity on the international scene" through the implementation of a common foreign and security policy which shall include the eventual framing of a common defence policy". END START General guidelines would be given by the European Council; the Council of Ministers would take such decisions unanimously but define matters where a qualified majority could be used. END START END START END START The Western European Union (WEU) would become" the defence component of the Union". END START WEU Foreign Ministers, meeting in the margins of the summit, adopted a declaration which included commitments to (i) elaborate and implement decision and actions of the Union with defence implications; (ii) invite EC countries not then WEU members (i.e. Denmark and Greece — which were NATO members — and neutral Ireland) to join; and (iii) move the WEU headquarters from London to Brussels. END START END START END START (At this time the EC was attempting to co-ordinate its position on the recognition of Croatia and Slovenia — see p. 38685 — and on Dec. 9 more than 10,000 people, primarily of Croat origin, held a rally in a Maastricht stadium calling on EC leaders to recognize Croatia.) END START END START Judicial and home affairs END START END START END START Judicial and home affairs co-operation (an intergovernmental pillar of the union treaty) was to cover asylum policy, the crossing of EC external borders, immigration policy, combating drug addiction, combating fraud, judicial co-operation in civil and criminal matters, and customs and police co-operation. END START END START Regional issues END START END START END START The union treaty also provided for the creation of a cohesion fund by Dec. 31, 1993, to finance environmental and transport infrastructure projects in member countries with a per capita GDP which was less than 90 per cent of the EC average. END START A Committee of the Regions comprising representatives of regional and local authorities was also to be established; it would have 189 members, ranging from 24 for each of the larger member countries to six for Luxembourg. END START END START Implementation of the treaty END START END START END START The treaty was scheduled to be signed in February 1992, after which it would require ratification by the 12 national parliaments. END START The European Parliament (EP) was only empowered to issue an opinion on them but END START END START END START As regards the ratification process, both the Italian and Belgian parliaments had declared that their said that their vote would take account of the (non-binding) opinion of the European Parliament. END START The vote of the Danish Folketing (unicameral parliament), as was made clear after its debate on Dec. 5, would be subject to confirmation in two referendums, as provided for in the Danish Constitution for matters affecting national sovereignty. END START The first of these (on political union) was to be held during 1992 and the second, on monetary union, in 1996-97; a protocol to the treaty allowed for this Danish referendum before Denmark could be required to participate in stage three of EMU. END START A referendum was also possible in Ireland. END START monetary union. END START June 1992: Lisbon summit to agree on future financing of EC. END START Jan. 1, 1993: Single internal market due to be implemented. END START Early 1993: Earliest likely date for start of negotiations with applicants for EC membership. END START End 1993: Governments to decide unanimously whether to deal with asylum policy as a Community issue. END START Jan. 1, 1994: Start of second stage of EMU including establishment of European Monetary Institute. END START June 1994: Elections to EP. END START 1996: Intergovernmental conference to review foreign policy and defence. END START Dec. 31, 1996: Deadline for decision on whether and when to move to stage three of EMU, if a majority of countries had achieved sufficient convergence of their economies; deadline for UK to notify the EC if it intends moving to stage three of EMU. END START July 1, 1998: European Central Bank and European System of Central Banks to be set up if not already established. END START 1998: Expiry of Brussels Treaty establishing WEU. END START Jan. 1, 1999: Latest date by which stage three of EMU to start and single currency to be introduced. END START END START Timetable to European Union March 1992: Signature of treaties on political and economic and END START END START END START Conclusions of the presidency END START END START END START Extracts from the conclusions of the presidency are given below. END START END START END START " Treaty on European union. END START The intergovernmental conferences on political union and economic and monetary union, meeting at the level of heads of state and government, reached agreement on the draft treaty on European union based on the texts concerning political union and on the draft treaty text concerning economic and monetary union… END START END START END START " The European Council notes that 11 member states desire to continue on the path laid down by the Social Charter in 1989 [see p. 37132]. END START To this end it has been agreed to annex to the Treaty a protocol concerning social policy which will commit the institutions of the Community to take and implement the necessary decisions while adapting the decision-making procedures for application by 11 member states. END START END START END START " Enlargement. END START The European Council recalls that the treaty on European union which the heads of state and government have now agreed, provides that any European state whose systems of government are founded on the principle of democracy may apply to become members of the Union. END START END START END START "… END START Negotiations on accession to the European Union on the basis of the treaty now agreed can start as soon as the Community has terminated its negotiations on own resources and related issues in 1992. END START END START END START " Uruguay round. END START The European Council notes that the trade liberalization negotiations have entered a conclusive stage. END START It has been informed about the progress of the negotiations, both in Geneva as well as in the Transatlantic Summit, at The Hague on Nov. 9, 1991 [see pp. 38601-02]. END START END START END START " The European Council reiterates its firm commitment to a substantial, balanced and global package of results of the Uruguay Round by the end of the year… END START END START END START Justice and home affairs. END START On Free movement of persons, immigration and asylum the European Council" noted the reports on immigration and asylum drawn up… by the ministers responsible… [and] agreed on the programme of work and the timetables laid down". END START It" took note of", and approved the recommendations in, the report by the Co-ordinators' Group on Free Movement of Persons. END START END START END START " Europol. END START The European Council agreed on the creation of a European police office (Europol), the initial function of which would be to organize the exchange of information on narcotic drugs at the level of the Community's 12 member states… END START END START END START " Drugs. END START The European Council took note of the report by the European Committee on the Fight Against Drugs. END START It invited the institutions of the European Community to employ all means to ensure that the act setting up the European anti-drug monitoring body could be adopted before June 30, 1992. END START END START END START " In the context of the widest possible information on drug problems the European Council supported the organization, during the second half of 1992, of a European week to promote the prevention of drug use…" END START END START END START On foreign policy issues the European Council" expressed its preoccupation with the critical food supply situation in Moscow and St Petersburg" and agreed to" take concrete rapid steps to help the populations of these cities". END START END START END START On the Soviet Union, the European Council underlined" the necessity for a constructive dialogue among all parties concerned to ensure that the process of transformation of the Soviet Union, which has entered a crucial phase, continues in a peaceful, democratic and orderly manner". END START It welcomed" the fact that the three republics [Byelarus, Ukraine and Russia which had decided on Dec. 8 to form a commonwealth of independent states] engaged in this comprehensive process of change have declared that they mutually recognize and respect each other's territorial integrity and the inviolability of the borders existing in the context of their Commonwealth". END START It also welcomed these republics' affirmation of" their readiness to respect the international commitments of the Soviet Union and to ensure single control of nuclear weapons on their territory" [see p. 38655]. END START END START END START The European Council declared that" at a moment when these Republics express democratically and peacefully their will to accede to full sovereignty, the Community and its member states wish to open with them, in a spirit of co-operation, a dialogue regarding the development of their mutual relationship". END START END START END START A declaration on the peace process in the Middle East attached" great significance to the Middle East peace conference in Madrid [see pp. 38594-95]", which" should lead to a just and comprehensive solution to the Arab-Israeli conflict and the Palestinian question". END START It was" of vital importance that the momentum gained at Madrid is not dissipated on procedural matters". END START " A halt to Israel's settlement activity in the Occupied Territories [was] an essential contribution to creating the stable environment which progress in the negotiations requires", as was" renunciation of the Arab trade boycott". END START END START END START A declaration on racism and xenophobia noted" with concern that manifestations of racism and xenophobia are steadily growing in Europe, both in the member states of the Community and elsewhere". END START The European Council" considers it necessary that the governments and parliaments of the member states should act clearly and unambiguously to counter the growth of sentiments and manifestations of racism and xenophobia." END START Ministers and the Commission were asked" to increase their efforts to combat discrimination and xenophobia, and to strengthen the legal protection for third country nationals…" END START END START END START The European Council took" a most serious view of accusations against Libyan nationals" in connection with the 1988 and 1989 Lockerbie and UTI airliner bombings [see p. 38692] and noted and fully endorsed" the demands made of the Libyan authorities by the governments of France, the UK and the United States on Nov. 27" [see p. 38599]. END START END START END START END START END START ASIA — PACIFIC END START END START END START NORTH-SOUTH KOREA END START END START END START Signing of non-aggression accord — Mutual renunciation of nuclear weapons END START END START END START The relations between North and South Korea improved more spectacularly during December than at any time since the Korean War with the signing of a historic non-aggression accord, and the negotiation of an agreement banning nuclear weapons from the Korean peninsula. END START Although the two Korean states remained technically in a state of war (the hostilities having been ended in 1953 by an armistice but not a peace treaty), many commentators felt that the December agreements laid a realistic foundation for the negotiation of a full peace treaty. END START END START Signing of Non-aggression accord END START END START END START The accord, formally entitled the" Agreement on Reconciliation, Non-aggression, and Exchanges and Co-operation between the South and the North", was signed on Dec. 13, by South Korean Prime Minister Chung Won Shik and his Northern counterpart Yon Hyong Muk. END START It followed two days of intensive talks at the fifth round of inter-Korean Premiers' talks which had opened in Seoul on Dec. 10 [for fourth round see pp. 38529-30]. END START END START END START The accord contained 25 articles arranged under the three sub-headings listed below: END START END START END START North-South reconciliation. END START Each state agreed to recognise and respect the other, including their respective political and social systems. END START Each pledged to desist from slander, vilification and acts of sabotage. END START Both countries agreed to work towards a peace treaty to replace the 1953 armistice agreement [for which see pp. 13077-79]. END START It was also agreed to establish a North-South Liaison Office at the neutral village of Panmunjom (within the Demilitarized Zone separating the two states) within three months. END START END START END START North-South non-aggression. END START Both countries committed themselves not to attack or invade the other, and to resolve disputes through a process of dialogue. END START It was agreed to create a joint military committee and to establish a direct telephone" hotline" between the two military commands. END START Amongst the confidence-building measures to be discussed and promoted by the joint committee were the exchange of military information, prior notification of major troop movements, and arms reduction, including the removal of weapons of mass destruction. END START END START END START North-South Co-operation and Exchange. END START Both sides agreed to encourage economic discussion, including the joint development of resources, and participation in joint industrial and commercial ventures. END START It was agreed to exchange information in various fields including science, culture, news and sport. END START Both sides undertook to promote reunification measures including allowing inter-Korean travel, postal and telecommunications contacts. END START END START Agreement to prohibit nuclear weapons from Korean peninsula END START END START END START The main omission from the non-aggression accord concerned the issue of nuclear weapons. END START Although these were obliquely referred to under the article dealing with confidence-building measures, the longstanding Northern demand that the South renounce the US nuclear weapons based on its soil was not addressed, nor was the more recent Western demand that North Korea allow international inspection of its nuclear facilities. END START Shortly before signing the non-aggression accord, however, the two sides announced that they would hold a meeting at Panmunjom on Dec. 26, in order to discus the issue of nuclear weapons within the Korean peninsula. END START END START END START The climate for an agreement on nuclear weapons had been improved by developments in the three months prior to December [see p. 38576]. END START US President George Bush had authorized the removal of US nuclear artillery shells and bombs in late September and mid-October respectively, although the timing of the withdrawal remained unclear. END START This was followed by an announcement on Nov. 8 from South Korean President Roh Tae Woo renouncing the manufacture, possession, and use of nuclear or chemical weapons. END START Roh called on North Korea to follow a similar course. END START Pressure on North Korea was increased when it was announced in mid-November that concern over the North's nuclear programme was such that the ongoing process of the reduction of US troops based in South Korea was to be halted indefinitely. END START On Nov. 25 the North Korean government declared that it would sign an agreement permitting international inspection of its nuclear facilities once the US had began withdrawing its nuclear weapons. END START (Although North Korea had signed the Nuclear Non-Proliferation Treaty in 1985 — see p. 34269 —, it had failed in its obligation to sign an inspection accord within the following 18 months.) END START END START END START Prime Minister Chung announced on Dec. 11 that all US atomic weapons had been removed from South Korean soil, and offered to open US military bases to inspection by the North on condition that the North permitted simultaneous inspection of its own nuclear facilities. END START Following the signing of the non-aggression accord, President Roh stated in a televised speech that" there do not exist any nuclear weapons whatsoever anywhere in the Republic of Korea". END START He called upon the North to close its nuclear reprocessing and enrichment facilities and to submit its nuclear programme to international inspection. END START END START END START The Panmunjom talks began on Dec. 26, and on Dec. 31 the two sides agreed a six-article document which was due to be signed by the Prime Ministers of North and South on Jan. 20, and to become effective from Feb. 18, 1992. END START Under the terms of the agreement both countries committed themselves not to" test, manufacture, produce, accept, possess, store, deploy or use nuclear weapons". END START Both also banned the development of nuclear reprocessing and uranium enrichment facilities. END START A joint committee was empowered to draw up a plan for mutual inspections. END START END START Rumours of forthcoming Presidential summit — Appointment of Kim's son as supreme commander of army END START END START END START During the fifth Premiers' talks there were strong rumours that arrangements had been discussed for a summit meeting between President Roh and his veteran North Korean counterpart, Kim Il Sung, early in 1992. END START The rumours were reinforced in mid-December when Roh suggested that, as" a basic framework on inter-Korean relations had been set", then" summit talks will be held earlier than had been expected". END START END START END START Evidence of the North Korean leader's continuing process of grooming his son, Kim Jong Il as successor, was also reinforced in December. END START A plenary session of the central committee of the ruling Korean Workers' Party chaired by the elder Kim, on Dec. 24, elected Kim Jong Il to replace his father as Supreme Commander of the Korean People's Army. END START END START END START END START END START AFRICA END START END START END START ETHIOPIA END START END START END START Decrees on regions and armed forces END START END START END START Three decrees to establish (i) a system of local administration; (ii) defence and police forces; and (iii) conditions favourable for local elections (principally dealing with disarming of groups and individuals) were approved in draft form by the Council of Representatives on Dec. 6 and published on Dec. 7, 10 and 11. END START A lengthy statement by the Council of Representatives on Dec. 13 explained how the flexibility allowed by the new system of local government might accommodate the complexity of relationships between ethnic and linguistic groups. END START END START END START The country was to be divided into 14" zones" or" regions", with the towns of Addis Ababa and Harar each constituting one region. END START In each region (with the exception of the two towns) up to 13 different" nationalities" were recognized. END START Most of these were accorded the right to establish elected" national local administrations" for self-government, or to join with neighbouring nationalities to do this. END START Central government would retain control of defence, foreign relations, economic policy and other specified fields. END START END START END START In the event of armed conflicts between different nationalities, the national army" can act independently as mediator to ease the dispute even without being asked to do so by the administrations concerned". END START Organizations which were represented on the Council of Representatives and which had" armies" could apply to have their armed forces officially registered. END START The soldiers would then be housed in barracks and funded by central government. END START END START Resignation of Finance Minister — Economic programme for transitional period END START END START END START The Finance Minister, Wolde Mariam Girma, was granted permission to resign on Dec. 3. END