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Carolina (English) No 222
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STUDENTS' E-MAIL NEWS FROM CZECH REPUBLIC
Faculty of Social Science of Charles University
Smetanovo nabr. 6
110 01 Prague 1
Czech Republic
e-mail: CAROLINA@cuni.cz
tel: (+42 2) 24810804, ext. 252, fax: (+42 2) 24810987
*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*
C A R O L I N A No 222, Friday, November 8, 1996.
FROM THE EVENTS OF THE PAST WEEK (October 30 to November 6)
DOMESTIC SCENE
ODS and CSSD Battle for Senate Elections
The Civic Democratic Party (ODS) and the Czech Social Democratic
Party (CSSD) will hold a majority of the future Senate's 81 seats,
reported the daily MF DNES November 5, with the newest public opinion
poll. Current estimates say only a minimum of candidates from other
parties will pass through the first round of voting November 15-6. ODS
party members have a real chance to enter the November 22-3 second round
in 80 districts. Seventy-three of CSSD's 79 candidates could also move
on.
The survey of 12,000 people, conducted for MF DNES, Czech
Broadcasting (Cesky rozhlas) and Premiera TV, showed that in the second
round, the two leading Czech political rivals could go head to head in
72 voting districts. In 35 of these districts the public is sure about
the front-running candidate. The Civic Democratic Alliance, the
Christian Democrats and the Communists have their best shot at winning
only in areas where they are running celebrities. For example, the
actress Helena Ruzickova holds the most interest in Lounsko, where she
is running as an independent for the Communists. The neo-Fascist
Republicans will be the only parliamentary party not to run in the
Senate elections.
The only candidates who might be elected in the first round are
Commerce Bank (Komercni banka) General Director Richard Salzmann in Brno
and Zdenek Klausner in Prague 4. Both are running on the ODS ballot.
' Michal Schindler/Andrea Snyder
Slovak Border Law Passes into Second Reading
Parliament passed the constitutional law concerning Czech borders
with Slovakia into a second reading October 30.
One-hundred-and-forty-four members of Parliament, including 46 Social
Democrats, two Communists and the coalition supported the law.
In return for their support, the Social Democrats are demanding
individual talks with residents of U Sabotu, the controversial Moravian
community which would be turned over to Slovakia. They are also
demanding an increase of the compensation fee from the approved 50
million crowns to 60 million crowns for their support of the law, which
Interior Minister Jan Ruml rejected. The Czech government is offering
each U Sabotu homeowner moving to the Czech Republic 1.5 million crowns
for new housing, and they will also maintain ownership of their old
properties. Each resident over 18 years of age will receive 400,000
crowns and children will get 200,000 crowns apiece.
Petition Chairman Martin Lajza October 31 criticized the Social
Democrats, who had originally promised the community full support. He
said residents are not interested in increasing compensation, but in
maintaining the borders as they are.
A constitutional majority, or 120 of 200 votes, will be necessary
to pass the third reading. Czech and Slovak interior ministers signed an
agreement January 4 to set the border, which will be valid 30 days after
the parliaments of both countries pass the constitutional law. Although
the Slovak Parliament already approved the law in the spring, their
Czech counterparts were not able to do so. The coalition only had 112
votes and was defeated by the opposition.
Pavel Novak/Andrea Snyder
Republican Leader Demolishes Bench in Parliament
When Parliament Vice-Chairman Jiri Vlach called the Republican's
interpellation (when Parliament deputies request government
representatives to answer questions) a carnival, Association for the
Republic-Czechoslovak Republican Party Chairman Miroslav Sladek reacted
by demolishing his desk. Sladek first swept his papers from the desk,
then ripped the top of the desk off and began beating the body of the
table with it. Other deputies called a doctor and an ambulance in
reaction to his behavior.
Vlach had criticized the far-right Republicans, saying their
questions again were too broad. After earlier criticism they had
specified about 90 of their 500 requests, saying that the particular
issue is one of culture, honor, labor, usefulness, etc.
Some deputies expressed concern after one Republican was seen in
possession of a gun. Parliament Chairman Milos Zeman said it will be
necessary to discuss the topic of gun control. He said deputies should
turn weapons in at the reception, because the safe there is big enough
for "even 200 guns."
David Vlk/Andrea Snyder
Poldi Parliamentary Committee Chosen
Jan Cerny, Civic Democratic Party Parliamentary Club
vice-chairman, was voted in as the head of the Poldi Kladno Steelworks
investigation committee. His goal will be to determine the conditions of
the company's privatization and financial functioning. In a round of
secret voting, 91 of 175 deputies voted in his favor, while Communist
counterpart Vaclav Exner received 60 votes.
Lucie Podesvova/Andrea Snyder
Compensation of Gulf War Veterans to be Decided in March
Minister of Defense Miloslav Vyborny (Christian Democrats) has
admitted that five years ago the army did not act properly towards
veterans of the Persian Gulf War and underestimated its impact on their
health. The ministry is to finish its investigation into the matter by
March.
The then-Czechoslovak anti-chemical unit measured threshold levels
of chemical poisons yperite and sarin (see Carolina 220) in the sector
they were working in. Today this fact is taken to be the main cause of
the disorder called Gulf War Syndrome. American soldiers were also
serving in the same area of northern Saudi Arabia in 1991. Last month
the Pentagon announced that approximately 20,000 of the soldiers have
had post-war health problems.
If the Ministry of Defense establishes that the health problems of
Czech soldiers as well are related to their work in the Gulf, the
veterans will have the right to financial compensation in the amount of
60,000 crowns to 125,000 crowns. This amount can then be doubled by the
court. The total amount which the ministry would have to pay out could
then reach tens of millions of crowns.
Parliamentary deputies are also interested in the problem of
veterans. The head of the parliamentary defense and security committee,
Peter Necas (Civic Democratic Party) has asked the minister of defense
to explain whether his ministry's officials were not guilty of
high-handedness when five years ago they prohibited veterans from
donating blood, without giving the reason.
Petra Kuskova/Andy Faust
Military Aircraft Down
A Suchoj 22 M4 bomber crashed November 1 in Tasovice na Blanensku.
The pilot died instantly. On February 1 an Aero L-39 crashed near
Pardubice, and the army lost a MIG-21 near Usti nad Orlici September 2.
One witness was quoted as saying, "the airplane exploded while
still in mid-air. Not too high above the ground it turned into
a fireball about 10 meters (32 feet) in diameter. The pilot had no
chance of survival." In its descent, the plane damaged the tops of trees
and one of 17 cottages in the area.
Circumstances surrounding the crash are being investigated.
Chairman of the Joint Chiefs of Staff Jiri Nekvasil has forbidden
additional use of other Suchoj military aircraft.
This tragedy brings the state of the Czech army's air force into
the limelight once more. Funding is not sufficient for proper training,
fuel and spare parts. General Ladislav Klima denies connections between
lack of funds and the increase in accidents, saying "only first-class
aircraft and experienced pilots are a allowed to take off."
Pavel Novak/Andrea Snyder
1,000 Days Of The First Private TV Station Nova
On October 30, TV NOVA, the first private TV station in the Czech
Republic, celebrated 1,000 days from its first broadcast. Popular
newscasters, commentators and other stars of the screen and faithful
Nova viewers celebrated the anniversary throughout the country, with the
necessary assistance of Nova cameras. A decorated airship flew above
Prague, Nova's new logo in the corner of the screen was inaugurated and
viewers were treated to a slate of special programming, mainly from
Nova's own studios (and highly populist programming, one might add).
Many people hold many things against Nova, but in fact it attracts
almost 70 per cent of all Czech TV viewers and the commercial station
takes the lion's share of the advertising market in the Czech Republic.
Nova's programming is similar to typical American stations, with tabloid
reporting and attractive films and series (Dallas, M.A.S.H., Chicago
Hope). According to General Director Vladimir Zelezny, one of the
mistakes in the short-but-successful history of the new TV station was
an attempt to create its own sitcom series about an ordinary Czech
family called Novaks, which failed because of its poor quality.
Besides Nova and the two public channels of the Czech Television
there is one other private TV station, Premiera, which is struggling
with a number of problems, above all a lack of viewer interest.
Jaroslav Schovanec/Jan Majer
Strasky Supports Macek's Health Care Reforms
On November 3 immediately upon returning from a three-week
vacation, Minister of Health Jan Strasky met with Secretary Miroslav
Macek, who had proposed a new financial structure for the health care
system (see Carolina 221). The minister, whose reaction had been eagerly
anticipated, supported Macek in the face of several critics. Macek
himself refuted the suggestion that the entire proposed structure was
only his own creation, which Strasky confirmed by saying dozens of
people at the ministry had been working on it.
November 6 press reports, however, carried a statement by Strasky
saying Macek had violated ministry confidentiality in making the
proposal public before its discussion at the ministry and while Strasky
was out of the country.
Libuse Kolouchova, Bohdana Rambouskova/Petra Sevcikova, Andy Faust
Czech Physicians' Chamber Calls Macek's Proposal Unworkable
At its weekend congress in Olomouc November 2-3, the Czech
Physicians' Chamber (CLK) also concerned itself with Macek's proposal
(see above). The delegates welcomed the proposal's detail, although they
described it in its present form as unrealizable. They nevertheless
considered the document to be "a very good starting point for changes in
the area," according to CLK Chairman Bohuslav Svoboda. According to the
CLK, Macek's scheme does not completely solve the basic problem in the
funding of the health care system, but the chamber agrees it is
necessary for the state first to clear the existing debts of the
insurance companies to health-care providers and only then launch the
new system of financing.
Libuse Kolouchova/Petra Sevcikova, Andy Faust
Czech and German Parliament Deputies Play Soccer
Intending to advance the prolonged discussion of the Czech-German
declaration, some members of the Czech and German parliaments met on
a soccer field November 3. The home Prague Elite squared off with the
German Green Tulip, formed by members of the Green Party.
The Czech Republic was represented by Deputy Foreign Minister
Alexandr Vondra as team captain, Minister of Education Ivan Pilip (Civic
Democratic Party - ODS), or Parliament Deputies Michal Lobkowicz (ODS),
Jaroslav Orel (Christian Democratic Union-Czechoslovak People's Party)
and Karel Machovec (Social Democrat).
The gala kick-off was made by Antje Vollmer, vice-chairman of the
German Parliament, and Czech Foreign Minister Josef Zieleniec. The ball
struck the ground on the Czech side of the pitch, and unfortunately,
stayed there for most of the match. The final score concurred with this
fact: 3:0 for the Tulips. Tulip Captain Joschka Fischer said both sides
could congratulate themselves, because they had put Czech-German
relations into motion.
Lucie Vackova/Denisa Vitkova
FOREIGN AFFAIRS
Italian Prime Minister Visits Czech Republic
On November 5, Italian Prime Minister Romano Prodi came for
a one-day visit to Prague. At a meeting with Prime Minister Vaclav
Klaus, Prodi emphasized that in deciding conditions for the planned
eastward expansion of NATO, member countries must have regard for the
opinion of Russia; however, Moscow will definitely not have veto power
concerning the admission of new countries. In answering whether Italy
agrees with expansion in 1999, Prodi said it was not necessary to stress
the final date. Italy supports the Czech Republic's efforts to enter the
EU and NATO, and requests the acceptance also of Hungary and Slovenia
into both organizations. During his stay in Prague, Prodi also met with
President Vaclav Havel, Foreign Minister Josef Zieleniec and Parliament
Chairman Milos Zeman.
Denisa Vitkova/Denisa Vitkova
FROM SLOVAKIA
Prime Ministers Meet in Piestany
Slovak Prime Minister Vladimir Meciar, Hungarian Prime Minister
Gyula Horn and Austrian Chancellor Franz Vranitzky met in the Slovak spa
town of Piestany November 4, following up on last year's meeting in
Rust, Austria.
The main point of the Piestany discussion was the entrance of
central and eastern European countries into the EU. Vranitzky pointed
out that prospective Slovak and Hungarian entry, along with the expected
first wave of Poland and the Czech Republic, would be beneficial for
Austria.
The only controversial topic was the Slovak atomic power station
Mochovce, in regard to which Vranitzky said it is possible to produce
energy in other ways, and he reiterated Austria's continuing
disagreement with its construction.
Jan Potucek/Zuzana Kawaciukova
ECONOMY
Big Bank Privatization Discussions Heat Up
Excited discussion about privatization of four the largest banking
houses have started on Czech politic stage in the end of October.
Opinion at the way of revitalisation of the Czech banking sector are
different between the coalition and opposition, but also between the
government parties and even inside the politic parties.
The biggest problem erupted between the Czech National Bank (CNB)
and the government when the CNB proposed merging the Czechoslovak Trade
Bank (Ceskslovenska obchodni banka) and the Czech Savings Bank (Ceska
sporitelna). This would mean the establishment of the largest banking
house in central Europe and competition for the Commerce Bank (Komercni
banka).
Czech Prime Minister Vaclav Klaus criticized the idea in the
November 2 edition of daily MF DNES: "It's an utterly nonsensical idea.
It's the same as if somebody wanted to merge Sparta and Slavie and
thought they would play better."
The most hopeful prospects appear for the Investment and Postal
Bank (Investicni a postovni banka - IPB). Japan's Nomura International,
the most active world investor, has expressed interest in buying the
state's share of the bank. Nomura declined to comment on the October 31
meeting between Nomura and IPB. It is clear that the resolution of
IPB's future is not a question of days or weeks but months, at least.
Besides Nomura, which also acts as adviser to the Slovak National Bank,
interest in IPB's privatization has been expressed by the Dutch ING
Bank.
Supporters of quick bank privatization hope to see an increase in
Czech banking efficiency, which stands at about one-fifth of that of
more developed countries. Chairman Milos Zeman of the Social Democrats,
the largest opposition party, said the country should wait with
privatization until the capital market becomes more transparent, so the
sale of bank shares would be as advantageous as possible.
Matej Cerny/Zuzana Kawaciukova
MARKETS AND COMPANIES
* The Prague Stock Exchange suffered another decline last week, this
time a particularly bad one. The PX 50 index stopped at 501.6 points
November 6, 16 points less than a week ago. Thus it reached the
psychologycal barrier of 500 points. Approximately one-fourth of all
stocks reached a 1996 low and another quarter is dangerously coming
close to new lows. The KOBOS (Stock Exchange Continual Trading) system
accepted Skoda Plzen to its ranks this week.
* One of the biggest Czech companies, SPT Telecom, which carries the
most weight in calculating the PX 50 point value, has announced 1996
gross profits of 6 billion crowns.
* Olomouc Milo ranks among titles resisting the stock exchange's
downward trend. This company suffers from continuously excessive
accesive demand, and, considering the fact that demand approaches the
company's share capital, it is clear the price is being artificially
manipulated upwards. The majority owner and uncrowned king of central
Moravian investors, Emgrup company (see Carolina 221), can be almost
surely identified as the force behind the machinations.
* New Ostrava Steelmill, which started construction last year of its
famous and long-expected mini-steelmill, is raising the necessary amount
of 8 billion crowns at home and abroad. Besides loan negotiations with
an unknown international financial house, the company has decided to
issue seven-year bonds bearing 12.7 per cent interest.
* Northern Moravia's Trinec Ironworks are having a problem with an
unexpected loss. A new audit pointed out a 750-million-crown profit
overvaluation in last year's final accounting. The 741-million-crown
loss will have to be covered by future profits, thus acutely lowering
the company's attractiveness. Also, charges of dumping, a limited
domestic market and unresolved property issues are among their other
problems. Due to this situation, a demand to integrate the steel
industry is growing, for example in the case of Vysoke pece Ostrava,
which all the northern Moravian steel companies are looking to co-opt.
* The bad news does not end there for northern Moravian factories
- Tatra Koprivnice will probably come up short in Libya. To explain,
there are 500 Tatra trucks in this northern African country as the
remnants of a deal gone bad. The current, strong attempt to get Tatra's
vehicles back could be complicated by the prepared law on relations with
Libya, through which the Czech Republic will join in UN sanctions
against Ghaddafi's empire.
* The Czech environment's enfant terrible, Spolchemie from Usti nad
Labem, is thinking of participating in the privatization of the
Bulgarian firm Orgachim. Spolchemie has made an offer for a majority
share of the company, and tender results should be announced in
November. Bulgarian environmentalists have not yet commented.
Martin Cermak/Katerina Zachovalova
Exchange Rates at the Czech National Bank
(valid from November 6)
country currency
------------------------------------------
Australia 1 AUD 21.169
Belgium 100 BEF 86.204
Great Britain 1 GBP 44.395
Denmark 1 DKK 4.623
Finland 1 FIM 5.915
France 1 FRF 5.248
Ireland 1 IEP 44.387
Italy 1000 ITL 17.682
Japan 100 JPY 23.577
Canada 1 CAD 20.089
Luxemburg 100 LUF 86.204
Netherlands 1 NLG 15.843
Norway 1 NOK 4.231
New Zealand 1 NZD 19.104
Portugal 100 PTE 17.529
Austria 1 ATS 2.524
Greece 100 GRD 11.279
Slovakia 100 SKK 86.387
Germany 1 DEM 17.762
Spain 100 ESP 21.095
Sweden 1 SEK 4.058
Switzerland 1 CHF 21.149
USA 1 USD 26.853
ECU 1 XEU 34.083
SDR 1 XDR 38.877
CULTURE
Sweet Theresienstadt Does Not Try to Reproduce Camp
The first November evening was the first night of the
Czech-American production Sweet Theresienstadt in Prague's Archa
theater. This is the result of the three-year long cooperation of Archa
- known for its avantgarde projects - and the theater En Garde Arts of
New York. The script, written by Arnost Goldflam (playwright and
director of Brno's Ha Theater) was arranged for the stage by Damien
Gray, art director of New York's Workhouse theater.
The main impulse for realization of this play was the discovery of
the controversial diary of Willy Mahler, a journalist in the
Czechoslovak First Republic and a prisoner in the Theresienstadt
(Terezin) detention camp. Mahler's perception of ghetto issues relies
foremost on his romantic adventures, which changed according to how
often the transports were leaving the camp. After all, as the author
says, nothing can approach the Holocaust better than documentation, and
thus any artistic rendering of Theresienstadt facts would be weaker than
reality. "That's why I preferred to write a play about the illusions of
individuals who, in the deepest despair, try to find faith in life
itself," Goldflam said. Besides the diary, the plot also includes about
the creation of the German propaganda film about Theresienstadt, which
was directed by Kurt Gerron, one of Mahler's fellow prisoners.
The actors include many leading Czech theater personalities.
Lenka Javurkova/Magda Vanova
The House Of Usher Falls in Prague
Philip Glass' opera The Fall Of The House of Usher, based on Edgar
Allen Poe's story, made its Czech premiere November 3 as part of the
exhibit Dawn of the Medicine Men, in which Prague's Veletrzni Palace
presents art about the end of the second millennium. Musicians of the
Agon ensemble, interested in interpretation of contemporary serious
music, performed a chamber adaptation of the opus in one of the huge
halls of the functionalist palace.
Glass is considered one of the greatest living composers and his
name is nearly synonymous with minimalism, a musical style working with
schematic or even monotonous motives. The composer admits he found
inspiration in Indian music and other non-European music, making his
music more exotic.
The Czech public first met Glass, 59, when he visited Prague this
spring to introduce a sampling of his work (in cooperation with poetry
recited by Allen Ginsberg) tastefully arranged for solo piano.
Martin Cermak/Jan Majer
European Snowboard Event in Prague with Prodigy's Accompaniment
A concert by the British group Prodigy was the big attraction at
Ballantine's Urban High festival at Prague's Fairgrounds (Vystaviste)
November 2. The funk-metal Crazy Gods Of Endless Noise and Czech groups
Plexis and Slut also appeared on stage.
Actually, the main feature of the first November Saturday at the
Fairgrounds was a competition and exhibition of snowboard champions
among the world's top 16, for which a 71-foot/22-meter-high and
227-foot/70-meter-long U-ramp was built (the ramp was the largest ever
created for this purpose). For a large audience, which got in for free,
other attractions included a snowboard fashion show and a competition on
a smaller skateboard ramp.
Lenka Javurkova/Jan Majer
Jara Cimrman's Time Finally Comes
The renaming of the TGM Theatre in Prague's Zizkov neighborhood to
the Zizkov Theater of Jara Cimrman was announced by Zdenek Sverak and
Ladislav Smoljak (the creators of the Cimrman myth) and Theater Director
Jana Pazdernikova October 31.
Cimrman, one of the most famous Czech myths, is a person who
(through the mediation of his creators and the actors of Zizkov Theater)
has entertained the Czech public for several generations. The fact that
the theater has been hopelessly sold out for any of the 12 plays about
Jara Cimrman for the last five years paints an accurate picture of the
Czechs' love for Cimrman.
Lucie Podesvova/Magda Vanova
SPORT
Czech Handballers Defeat Israelis in 1997 World Championship Match
The Czech handball team is close to ensuring its participation in
the World Championship after a clearly defeating Israel in Prague
November 3, 27-19. The Czechs are at the top of their qualification
group and for advancement into the world championship in Japan 1997 they
need only two points from two remaining games with Belarus. The Czech
handball team was also victorious in the first match in Tel Aviv, 25-23.
Honza Mazak/Milan Smid
Sparta - Fiorentina 1-1: All Czech Teams Out of European Soccer Cups
The Czech Soccer Cup winner Sparta tied its the return match with
the Italian team AC Fiorentina 1-1, in Prague October 30, and was thus
eliminated from the European Cup's Winner Cup competition. Sparta, the
last Czech representative in the European Soccer Cups, lost the first
match in Fiorentina 2-1 two weeks ago.
Roman Jedlicka/Milan Smid
Czech Soccer League
Results of the 12th round (November 1-4): Drnovice - Opava 2:1,
Ostrava - Slavia 1:0, Liberec - Ceske Budejovice 0:2, Brno - Viktoria
Zizkov 1:1, Olomouc - Karvina 3:0, Sparta - Teplice 4:2.
The match Bohemians - Jablonec was stopped in the 61th minute after
an explosive was thrown on the field and Jablonec goalie Janos was
injured. Plzen - Hradec Kralove is to be played November 8.
Standings after the 12th round (not complete): 1. Liberec 22, 2.
Drnovice 21, 3. Brno 20, 4. Slavia 19, 5. Olomouc 18, 6. Ostrava 18, 7.
Opava 18, 8. Jablonec (-1) 17, 9. Sparta 17, 10. Budejovice 17, 11.
Teplice 15, 12. Karvina 12, 13. Plzen (-1) 10, 14. Zizkov 9, 15. Hradec
Kralove (-1) 8, 16. Bohemians (-1) 8.
Czech Hockey Extraleague
Results of the 17th round: Plzen-Vsetin 3-1, Olomouc - Litvinov
2-3, Zlin - Slavia 4-2, Pardubice - Vitkovice 2-1, Opava - Kladno 4-4,
Sparta - Jihlava 10-2, Trinec - C.Budejovice 2-1
Results of the 18th round: Litvinov - Trinec 4-1, Vsetin - Sparta
5-1, Pardubice - Olomouc 4-1, Slavia - Vitkovice 0-4, Jihlava - Zlin
3-1, Kladno - Plzen 4-2, C.Budejovice - Opava 3-2.
Standings after the 18th round: 1. Vsetin 25, 2. Pardubice 23, 3.
Vitkovice 22, 4. Trinec 21, 5. Kladno 19, 6. Budejovice 18, 7. Zlin 17,
8. Litvinov 17, 9. Sparta 16, 10. Opava 15, 11. Slavia 15, 12. Plzen
14, 13. Olomouc 11, 14. Jihlava 11.
WEATHER
While the weather at the end of last week, with its cold drizzle
and temperatures around 8 degrees Celsius/46 degrees Fahrenheit, quite
corresponded to the calendar and All Souls Day atmosphere, after the
weekend it looked like spring had returned. In many Czech locales, the
mercury reached 20 degrees Celsius/68 degrees Fahrenheit and the blue
sky and the warming sun suggested we would not have to think about
scarves and gloves yet.
Denisa Vitkova/Denisa Vitkova
English version edited by Michael Bluhm
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