he Uzbek joint stock innovation Ipak Yuli (Silk Road) bank, joint stock commercial Namanganbank and private Umarbank have merged into one bank to be known as Ipak Yuli with a charter capital of 566 million sums.

The stockholders of the banks have agreed on the merger so as to increase the potential for involvement in investment projects, reduce the overheads and improve the service of the clientele, an official in the press service of Uzbekistan's Central Bank told Interfax on Thursday.

Of the 34 banks now active in Uzbekistan, 10 are private, four are joint ventures with foreign capital and one is totally owned by foreign capital. The official rate of exchange is 260.59 sums to the dollar.

n 6th July Uzbek TV broadcast a special 20-minute programme on the Shanghai Five summit held in Dushanbe on 5th July, which Uzbekistan attended as an observer. The broadcast included a report on the proceedings at the summit, and excerpts from Uzbek President Karimov's address to the summit and remarks at a news conference following the signing of the Dushanbe Declaration. Karimov, speaking in Russian, said that Uzbekistan shared the views of the other states at the summit regarding the threats posed by terrorism and extremism, and was ready to cooperate with other states to jointly settle regional security issues. He also spoke of the need for Uzbekistan, as a populous state at the core of Central Asia, to play a major role in the region. Karimov said that the presence of both China and Russia at the summit was a guarantee of peace and stability in the region. The following are excerpts from the programme:

[Presenter] Respected television viewers. As we have already reported, a regular summit of the Shanghai Five member states was held in Tajikistan's capital, Dushanbe, on 5th July. Uzbekistan attended the summit as an observer. Here is our report on the summit.

[Correspondent over video of Uzbek President Islam Karimov speaking at expanded-format meeting at Dushanbe summit] The president of the Republic of Uzbekistan, Islam Karimov, delivered a speech at the summit. Our head of state spoke about the activity of the Shanghai Five member states and expressed his thoughts about issues which concern the people all over the world.

[Karimov, in Russian] First of all, allow me on behalf of the delegation of Uzbekistan to express gratitude for inviting us to take part in the work of the summit of heads of the Shanghai Five member states and to express to all heads of state, and in their person the people of these countries, our sincere respect.

We are profoundly pleased that the present summit is being held in Dushanbe. This is evidence, above all, of the real results of a peaceful settlement and achievement of national accord in Tajikistan. Uzbekistan adheres to the principle of indivisibility of security and is open to the outside world, it has an interest in expanding and deepening dialogue and cooperation with all states which show a sincere interest in reinforcing stability and peace in the region and throughout the world. I think that there is no necessity today to substantiate or prove to anyone that the position of our country is close to the positions of countries which are members of the Shanghai Five on the issues of preserving stability and reinforcing security, as well as the fundamental principles of international and interstate policy, the policy of respecting independence and sovereignty, equality, noninterference in each others' internal affairs, recognizing territorial integrity and observing universally-accepted humanitarian values.

Our countries' positions coincide on the issues of jointly combatting such global threats and challenges as international terrorism, aggressive nationalism and separatism, political and religious extremism, drug trafficking and transborder crime. I would like to emphasize this, because as aggressive aspirations and attempts increase by various radical forces to undermine stability and security, the people's peace and tranquility, to turn the countries of Central Asia from the way that they have chosen - from the secular and democratic way of development - so coordinated actions by all peaceable countries to remove these threats by all peaceloving countries, and of course this depends on the great powers, become of decisive significance.

Today we see this in the example of the Russian Federation and the People's Republic of China. The recognized reputation of these countries throughout the world, the integration of their huge natural, economic and industrial potential and the opportunities offered by the resources of the Central Asian states, the implementation of joint projects, above in the sector of communication and the spheres of hydropower and thermal energy, and the formation of favourable conditions for trade exchange, can create good grounds not only for peaceful and safe development, but can also guarantee the stable, social and economic growth of states in this region.

Uzbekistan is impressed by the fact that the activity of the Shanghai Five member states is not limited only to settling problems connected with border regulations. At present one can notice the tangible role played by this regional group in tackling the issues of security, prevention and localization of conflicts, maintaining stability, reinforcing law and order, fighting drug trafficking, that is in settling those problems upon which the consistent and progressive development of the entire regional community depends.

In the context of the existing and emergent threats, the escalation of extremism and separatism and international terrorism in the region, the aspiration of international extremist centres and the forces which stand behind them to implement their far-reaching strategic plans in the region and to undermine peace and stability not only in the Central Asian states, but also to shake, I stress, to shake the stability in the neighbouring countries, in this context, it is increasingly urgent to solve these tasks.

It is important to understand that what we are dealing with in our region is not abstract or spontaneous manifestations of terrorism. This is very important. What is we are talking about is well-organized, externally directed, agressive international terrorism, a form of terrorism which they today try to hide under cover of the dogmas and banners of various radical religious sects. In this respect, we support the items tabled on the agenda concerning strengthening regional security and combined counteraction against the threat of international terrorism, religious extremism and ethnic separatism.

Dear heads of state! As life itself shows, it is not enough merely to understand the nature of existing security threats. One must not, in our view, limit oneself only to presenting facts, making statements for effect and hoping for this danger to pass by. That is nothing other than an attempt at self-deception. If a threat hangs over a neighbouring country today, tomorrow it will reach your country. And I support the view of respected [Tajik President] Emomali Sharipovich [Rahmonov] that we cannot feel calm at home at a time when neighbouring countries are experiencing destabilization in their situation, and far-reaching evil plans are being carried out there.

We are ready to cooperate with the participants in the Shanghai process, to achieve practical results by jointly settling regional security issues.

Dear heads of state! The conflict in Afghanistan remains the main factor destabilizing the situation in the region. This country has turned into an unyielding base for international terrorism and extremism, the main region for drugs production and arms smuggling. The threats coming from Afghanistan are recognized by the whole of the international public as a real danger to peace and security.

Taking into account the fact that terrorism is commonly assessed as a global phenomenon, we hope that the Shanghai Five countries will back Uzbekistan's initiative to set up within UN structures an international centre for fighting terrorism. We believe that the implementation of this proposal will also make a definite contribution to the organizational and structural reform of the UN on the eve of the forthcoming millenium summit. We express the hope that China and Russia, as permanent UN Security Council members, will make their own contribution to promoting the efficiency of UN efforts in fighting terrorism, drugs and arms smuggling, and give their special attention to the recent address by Central Asian heads of state to the permanent UN Security Council members on the situation in Afghanistan.

Uzbekistan welcomes the support voiced in the documents which were prepared for the summit, support for the process of creating a nuclear-free zone in Central Asia. Uzbekistan views the mechanism of operation of the emergent Central Asian zone free of nuclear weapons as the start of the advancing process of nuclear non-proliferation and disarmament and as a system of agreed measures for non-proliferation in future of other types of weapons of mass destruction.

[Karimov, in Russian, addressing journalists] First and foremost, in your presence, I would like to express my words of gratitude to the heads of state of the Shanghai Five member countries for inviting Uzbekistan to attend the regular meeting of the heads of state in Dushanbe. Today we are participating in the regular summit of the Shanghai Five as an observer. We will explain this, first and foremost, by the following, in our opinion very important, reasons. The Shanghai Five was set up five years ago, in 1996, as an organization which, first and foremost, purposefully worked to solve border issues, to create mutual trust, first and foremost, on the border. [word indistinct] stretching over 7,000 km. And I regard this as a vitally important task, which is being solved today in practice at the level of the Shanghai Five.

The declaration signed today by the heads of state shows a common aspiration for purposeful work aimed at transforming the Shanghai Five into a regional organization which can solve not only issues related to borders, security and ensuring stability, but also issues to do with trade, communication and other issues, that is problems, outside the initial tasks determined at the first meeting of the forum in Shanghai.

If we speak about Central Asia, we understand perfectly that in the conditions of Central Asia, Uzbekistan which occupies, let us say, the central place in Central Asia, even if we take into account factors such as that over 50,000,000 people are living in Central Asia and 25,000,000 of them are living in Uzbekistan, not to mention other aspects of the potential which Uzbekistan possesses - in view of this, everybody should understand, not only the heads of Shanghai Five member countries, but all those present in here, that these issues can be solved successfully only with the participation of the state which occupies a central place in Central Asia. These are the exact reflections as to why we are here today. I would like to take this opportunity to welcome the idea, the desire which has been voiced here, not to call henceforth the Shanghai Five the five, but to call it the Shanghai Summit, that is, I think, the [Shanghai] forum, in my view this is not a question of changing the title, but there is huge significance in this.

In my view, the presence of the head of the People's Republic of China, Mr Jiang Zemin, at the Dushanbe meeting, his active participation in today's summit, the presence of [Russian PResident] Vladimir Vladimirovich Putin and his active desire to develop and strengthen all the directions which the Shanghai Five has put forward, all this impresses us. In the conditions of Central Asia, the presence of two superpowers, I mean this, of two superpowers who have great potential and possibilities is not only a guarantee for ensuring security, peace and stability in this region and a rebuff to all the creeping manifestations and importuning of international terrorism, expansion, religious extremism and separatism, but is also a guarantee, namely the presence and accord between the two heads of state today, this is also a guarantee of the stable and confident development and prospects of the whole region and countries in this region.

Once again I would like to stress that I consider the understanding and accord, the coordination of interests of both Russia and China in this region, to be the main condition for the fact that these countries, which will take part in the Shanghai Five forum, all these countries will further develop and strengthen their cooperation.

A guarantee that the Shanghai Five will have prospects is, I consider, from my first participation in this meeting of the heads of state, the spirit of mutual understanding, the spirit of accord, the mutual respect, which was here in the Dushanbe meeting today. Thank you.

urther delays of Uzbekistan joining Article Eight of the IMF Charter that provides for convertible na-tional currency in everyday transactions are becoming dangerous for the country, Robert Rosenberg, the IMF permanent envoy in that country, said as he was speak-ing on the findings of the fund's mission in Uzbekistan.

The mission and the Uzbek Cabinet discussed the routine issues of possible social and economic conse-quences of liberalizing currency regulations but have not even started the work on the financial program of backing Uzbekistan if the country joins Article Eight, Rosenberg said. The Cabinet is aware of the need to lib-eralize the economy and is taking steps in that direction, albeit not consistently, he said.

The delays in doing it are becoming truly danger-ous, because even if foreign investments and exports in-crease, the normalization of the economic situation will take at least two to three years, Rosenberg said. The country's balance of payments has deteriorated since 1996 when the Uzbek Cabinet went back on its commitments in macroeconomic policy, he said. The in-flow of foreign currency and export have fallen, Rosen-berg said.

The exchange rate, unduly favorable for the Uzbek currency, discourages both the exporters and potential foreign investors, he said. The next IMF mission will arrive in Uzbekistan in November. Uzbekistan joined the IMF in 1992. Over that period the fund has extended loans of $140 million and approved loans of $185 million. November 1996, the IMF halted the second tranche of a loan due to limi-tations on import and forex operations and raised inflation forecasts. Cur-rently relations between the government of Uzbekistan and the IMF are limited to technical and consultative assistance on managing state spending, monetary policy, though financial support for practical steps to market reform have not been excluded.

resident Islam Karimov of Uzbekistan has signed a ruling on the development of the over-the-counter forex market. According to the government press service, July 1, 2000, a mechanism for selling forex off-exchange was in-troduced, which allows authorized banks to buy available currency from clients at a rates based on supply and de-mand.

The ruling also allows for licensed companies to convert earnings from the sale of imported goods into foreign currency at a rate based on demand. The ruling lays out the rules for mandatory cur-rency sales by businesses, as well as a temporary system for improving off-exchange trading.

The document establishes the rights of businesses existing for at least six months to buy foreign currency on the domestic market. During foreign trade, a number of requirements are to be observed. In particular, advance payments of con-tracts may be no more than 15% of the value of the contract, but no more than $100,000 and only under guarantee of a correspondent bank. Advances over that sum may be made only with official permission based on a ruling by the Foreign Trade Ministry.

he policy of gradual reform being implemented in Uzbekistan is guaranteeing stable economic growth: GDP has increased an average of 4% per annum over the past five years. Per capita GDP has increased an av-erage of 3% per annum. This information is contained in a joint press release from the republic's Finance Min-istry and Central Bank on Friday.

The press release explains that the introduction of conversion on current accounts in the second half of 1995 led to the use of the main part of limited currency resources for the import of consumer goods. Limits were introduced in 1996, with the aim of redirecting currency flows towards the import of modern technol-ogy and inputs, which increased their share in overall imports to 80% by 2000. Due to the reconstruction and development of the fuel and energy complex since independence, the repub-lic has managed to double production and achieve en-ergy independence, the press release said.

As a result of measures to develop small and mid-sized business, the share of these companies has in-creased from 1% to 29% of GDP in the reform years. GDP in 1999 was 95% of the level in 1991. Unemployment in the republic amounts to 0.5% of the able-bodied population, while for other CIS repub-lics this indicator fluctuates between 5% and 10%.

Real private incomes increased 28% in 1999and the presence of a budget surplus in the first half of 2000 meant that the government did not have to issue GKOs to attract funds, reducing debt on these papers by 4% since the start of the year. A presidential decree from August 1, 2000 in-creased wages for budget workers, pensions social bene-fits and stipends an average of 50%, with expected in-flation in the second half of 2000 of 7%-9%. The mini-mum wage from August 1 amounts to 2,450 sum.

The republic's foreign debt amounted to $3.7 bil-lion as of January 1, 2000 and according to the World Bank's main criteria (ratio of debt to GDP and exports, ratio of total payments on foreign debt to GDP and ex-ports) Uzbekistan is a country with "more than moder-ate foreign debt." The press release notes that Uzbek gold and cur-rency reserves currently amount to $1.2 billion. The country has had a surplus in its balance of payments since 1998, including a surplus of $101 million in 1999.

he World Bank's new three-year program for the development of Kazakhstan has been presented in Tashkent. A World Bank official said the program calls for moderate financing, institutional and technical assistance and consultation for supporting the government's re-form program. Since 1994 the World Bank has ap-proved nine loans totaling $458 million for Uzbekistan, of which more than half has already been disbursed.

Besides the loans, Uzbekistan is also a beneficiary and participant in two regional projects financed by the global ecology fun - for managing water resources and the environment at the Aral sea, and a cross-border biodiversity program in Central Asia. Four grants have been received from the Institutional Development Fund. International Finance Corporation (IFC) a part of the World Bank group, has also approved financing for 15 projects in Uzbekistan to a total of $241 million. IFC is making significant investment into small and medium business, production, and the financial sector.

In the 2000-2001 financial years, loans are to be made to reform agriculture, social transformation, city transport, water supplies and sanitation, irrigation and drainage. The loans are to demonstrate the advantages of reform introduced on a pilot basis through to a na-tion-wide scale. They are to show the opportunities for learning from world experience and will assist in man-aging and reducing risks.

The biggest interest, says the representative, is a project for overhauling the Karshin cascade pumping stations, to be realized over a three-four year period for a total of $114 million. A water supply and sanitation project is to play a big role in preserving the cultural heritage of Samarkand and Bukhara. The project will cost $33.8 million. The new program will be launched soon. A document titled Strategy of Cooperation with the Country is to be drawn up and submitted to the Uzbek government and the board of the World Bank first quarter 2001.

he Central Bank of Uzbekistan has set a new re-financing rate of 24% from July 3, said the bank's press service. The refinancing rate has been reduced from 36% in January to 24% in July. In fixing the refinancing rate, the bank considered the reduced rate of inflation, which fell from 4.0% in January to 1.4% in May 2000, as well as its expected rate through to the end of the year and the current stabiliza-tion of the financial market. The reduction in refinancing rates will also assist in reducing the interest on bank loans to industry, small and medium business and farmers.

UZBEKISTAN CHANGES IMPORT GOODS SALES TAX

Uzbekistan July 1 introduced a new system for paying taxes on gross earnings from the sale of imported consumer goods. The system calls for differentiated rates depending on the profitability of the operation, said the government press service. According to the government ruling, taxes on gross earnings will be paid monthly on a growing total. Vege-table oil, animal fats, sugar and tea will be exempted from excises on import.

The measures are aimed at systematizing trade in imported consumer goods, developing and strengthen-ing organized trade, increasing consumer purchasing power, as well as at improving the consumer goods price formation. According to the document, the state tax committee and the committee for demonopolizing and developing competition, are to provide control over observance of the tax rules by trade organizations. The ruling introduces a tax on goods imported by shuttle traders at the current rates without the maximum norms of duty-free imports from July 1.

UZBEKISTAN INCREASES SUPPORT FOR VINEYARDS AND WINERIES

The government of Uzbekistan July 1 increased the excise on domestically produced vodka and brandy from 80% to 82% and plans to spend the funds raised on support for fruit and vegetable production, vineyards and wine and vodka production. Deputy chairman of Uzbek holding company Uz-plodovoshvinprom Timur Umarov said the addition 2% excise would be controlled by the holding and accumu-late in the account of the fund for reconstruction and development, specially created for implementing proj-ects for developing new vineyards and fruit production as well as for topping up the holding's working capital.

In 2000, the funds raised by the additional 2% are to total around 2 billion sum. The funds raised by the 2% will accumulate in the fund for reconstruction and development and represent serious state support with serious money, said Umarov. According to Umarov, the reconstruction and de-velopment fund will also receive dividends on shares owned by the state. In the next few years, the fund plans to plant 10,000 hectares of new vineyards and reconstruct exist-ing ones, which cover an area of 23,000 hectares.

Umarov said that this year the government of Uzbekistan provided the holding with a goods loan of 1.2 billion sum for advance spending by fruit and vege-table producers. Uzplodovoshvinprom holding company was set up in 1997 based on he Uzplodovoshvinprom association. The holding currently joins 42 joint-stock companies, 14 JVs more than 50 fruit, vegetable, and wine producers, and 89 agricultural companies.

UZBEKISTAN TO INCREASE CONTROL OVER ALCOHOL SECTOR

The State Property Ministry of Uzbekistan has de-cided to increase the state's holdings in the alcoholic beverages companies in the Uzplodovoshvinprom holding company from 25% to 51%. According to Uzplodovoshvinprom chairman Timur Umarov, increasing the state's share will come in part through offsetting tax arrears with new share issues to that sum. January 1, 2000 the state held 25% in alcohol pro-ducers, workforces held 26%. A further 25% was held by foreign investors and 24% by private investors.

According to Umarov, following the increase in the state's holding to 51%, foreign investors will retain 25%, while the stakes of workers and private investors will be reduced to a total of 23%. Umarov also said that a 25% stake in Shokhrud (Bukhara region) is owned by Germany's LRS PLANUNG & Technologie, in Sirdari Wine Plant (Syrdarya region) by Britain's Comeron Company and in Tashkentvino by Switzerland's TSI Associates.

In 1997, Uzplodovoshvinprom association was re-formed as a holding company and is the largest fruit, vegetable and alcohol producer in Uzbekistan. The holding has 42 joint-stock company members, of which 23 are alcohol producers, and 14 preserves producers. Year to May this year, the holding's companies produced 18.38 million liters of wine, down 11.3% on the same period last year, 31.33 million liters of vodka and liqueurs (19.2% more), 450,000 liters of brandy (up 309.1%), 2.278 million bottles of sparkling wine (up 13.8%).

In 2000, the holding plans to produce 52 million liters of wine (58 million liters last year), 71.9 million li-ters of vodka and liqueurs (71.68 million liters), 1 mil-lion liters of brandy (570,000 liters), and 6.42 million bottles of sparkling wine (6.418 million bottles).

UZBEK GRAIN HARVEST AT OVER HALF OF TARGET AREA

Uzbekistan, according to June 29 data, has har-vested grain crops from 758,700 hectares of land, 55.8% of plan and 108,700 hectares more than on the same date a year ago, the grain department of republic's Agri-culture and Water Resources Ministry reported. From this area 2.4 million tonnes of grain were collected against 1.9 million tonnes for the same date a year ago. Grain yield totaled 3.2 tonnes per hectare (3.12 tonnes/hectare last year).

Ministry experts say that this year's gross harvest could rise by 400,000-450,000 tonnes compared with 1999, when 3.895 million tonnes of grain were harvested. As was reported earlier, the area of land under grain cultivation in Uzbekistan for 2000 rose 50,000 hectares and reached 1.36 million hectares. The increase came as a result of using more productive irrigated lands. The amount of irrigated land under grain cultiva-tion totaled 1.05 million hectares.

In 2000 Uzbekistan plans to receive 4.1 million tonnes of grain. State orders total 2.495 million tonnes. This year, 5,811 combines are being employed for grain harvest operations. Among these, are 1,465 pieces of foreign produced machinery, of which more than 1,200 combines come from just one company, Case of the United States. Experts note that this amount of machinery is suf-ficient enough for completing the grain harvest ahead of schedule - approximately by the end of July.

ndustrial output in the CIS rose 9.7% year to May 2000 compared to the same period last year, according to a statement from the Intergovernmental Statistics Committee.

The highest rates of growth in industrial output year to May were in Kazakhstan (17.1%), Georgia (11.4%), Ukraine (10.8%), and Russia (10.4%). In Tajikistan in-dustrial output rose 8.2%, in Uzbekistan - 5.4%, in Belarus - 5.1%, in Azerbaijan - 4.6%, in Moldova - 3.9%, in Armenia - 3.1%. in Kyrgyzstan industrial output shrank 1.7%.

GDP rose in practically all the CIS year to May compared to the same period last year. Azerbaijan's GDP rose 7.7%, Ukraine - 5.4%, Tajikistan - 4.5%, Belarus and Kyrgyzstan - 3.4%, Armenia - 1.3%. First quarter GDP was also up in Kazakhstan (9.1%), Russia (8.4%), Georgia (4.4%), and Uzbekistan (3.0%). Budget revenues first quarter exceeded spending in Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Ukraine. The currencies of the CIS are relatively stable.

Trade between CIS members was characterized by increased exports and imports. Increased fuel prices provided increased exports, said the Committee. The rest of the world maintained its significant role in for-eign trade.

Many CIS countries had real increases in retail trade and services. Inflationary trends were maintained, but have weakened throughout the CIS. In most CIS countries nominal and real wages are rising. The registered employment market is improving, but unemployment remains significant.

zbek President and head of government Islam Karimov signed a resolution on Friday on steps to further liberalize the currency market and expand currency exchange operations.

The document notes that from July 1, 2000, authorized banks (National Bank for For-eign Economic Activity, Uzpromstroibank, Asaka Bank, Uzzhilsberbank) will be offered the right to carry out the free purchase and sale of foreign currency in cash, through special ex-change points. These banks need to take steps to increase the amount of their currency op-erations and to increase their exchange point networks.

Uzbek commercial banks, with general licenses to carry out operations with foreign currency, may only buy foreign currency in cash. This cash, purchased by them, is sold monthly on the Inter-bank Currency Market by banks authorized by the Uzbek government.

In the resolution, the Uzbek government recommends authorized banks to buy and sell foreign currency at the market rate, created based on supply and demand, and also to place a maximum limit on the difference between the purchase and sales price for cash currency of not more than 5%.

Uzbek citizens will be able to exchange up to $300 at authorized exchange points by presenting a passport, a valid visa issued by a foreign country and an air or rail ticket. For non-residents, hard currency may be bought in the amount of currency exchanged earlier, to be confirmed by a receipt from an exchange point. According to the resolution, Uzbek private individuals may bring foreign currency amounting to not more than $5,000 out of the country, without permission from the Central Bank.

he chief adviser of the National Human Rights centre in Uzbekistan, Mavluda Akbarkhojayeva, has criticized some aspects of the working of courts in the country and their verdicts. Akbarkhojayeva, based on the number and types of appeals against court decisions considered by the centre, said "because of the ignorance of democratic views in the society and the failure to master the new transformations" the appeals for a review of verdicts were "being treated superficially and groundlessly rejected" by the courts. Akbarkhojayeva also targeted her criticism at the way judges are appointed in the country and said that "many posts of judges stay vacant for months and even years and this has a negative impact on the work of the courts".

The following are excerpts of the interview published in the Uzbek newspaper 'Hurriyat' on 27th June:

[Q] Mavluda opa, our constitution sets the inviolability of the legal system.When citizens, on many occasions, do not feel satisfied with the court decisions they appeal to this centre. In what way do you render legal aid in such cases? In other words, what are the rights of the national centre?

[A] It is our duty, the lawyers, to ensure that inviolability of human rights and prevent the violation of an individual's legitimate rights by another individual. Today, we are striving for international standards in all spheres of life. The UN declared the period of 1995-2005 the decade of human rights. I also think that the formation of the national centre is a reflection of our high aspirations and a deserved step towards the construction of a law-governed democratic state. Our actual work is aimed at protecting human rights and freedoms and studying and mastering international norms in this sphere. In part, the department working with the public is winning people's trust through offering legal consultations for those who are appealing to us, considering their appeals or complaints in the regions, sending the conclusions to the corresponding establishments and monitoring them. Our national centre is gaining special prestige in society as a legal establishment. One thing is clear: people do not take their problems to a place they are not happy with and should not be interpreted as a sign that they are not aware of their rights. For example, most of those appealing to us ask for the presence of a representative from the national centre during preliminary investigations or the sitting of the court. They do not trust some of the courts noting such situations when the first piece of evidence during the questioning is conducted by various illegal methods in the absence of the defence lawyer and the judges are only restricted to making a copy of the prosecution's verdict instead of working independently on the case.

You mentioned the inviolability of the courts, which is set in the constitution. Unfortunately, because of the ignorance of democratic views in the society and the failure to master the new transformations, the letters, which we send to the courts asking for a review of the verdicts and decisions on the basis of the citizen's complaints and our conclusions based on the study of the documents, are being treated superficially and groundlessly rejected. Last year, the Republican Prosecutor's office, the Ministry of Social Security and the Syrdarya Regional administration responded to our letters in line with the law. The Supreme Court of the Republic of Uzbekistan, the Ministry of Justice and the Ministry of Defence, however, repeatedly violated the terms of answering, failed to settle the issues within their competence and displayed bureaucracy.

[Q] How many complaints did the centre receive from the citizens in 1999?

[A] Last year, the department of for relations with the public received 492 complaints and appeals including 151 where they were not satisfied with the court verdict, 57 court decisions, 55 on the illegal actions of the members of the prosecutor's office, 72 on the illegal transactions of the interior officers, 30 on social issues, 13 on the illegal actions of the local government officials, 10 on the violation of the rights of entrepreneurs,. 19 on labour conflicts, 28 on housing and municipal issues, 18 on residence permits, seven on passport issues, 12 on the failure to implement court decisions. In the last year, 122 of them were taken under control and 87 were positively settled.

[Q] Have measures been taken to punish those who have violated the law when settling cases and when the complaints were found justified?

[A] In fact, it is the imposition of administrative or criminal punishment on those who acted in such a way that causes difficulties in the review of the verdicts and illegal decisions. Because such people try, somehow, to justify their own deeds knowing well that the law and the people around them are trying to defend them.

[Q] Are there also appeals from people working in the courts and at the prosecutor's offices and the interior structures?

[A] Yes, a number of people from the courts, prosecutor's office and interior structures who had complained about their illegal dismissal from their posts were reinstated in their jobs after their complaints were found to be justified.

[Q] We observe the fact that the number of people seeking legal protection is growing and that almost all of the complaints have been shown to be justified. Does this situation necessitates a review of the courts' work procedure and introducing certain amendments to their competence? What do you think, why is this element of unfitness strong in some [court] decisions?!

[A] As you can see, unfortunately, 75-80 per cent of the complaints and appeals are about the court decisions and verdicts. There are also people involved in the protection of the law who do not have an adequate knowledge, do not work on themselves and indifferent to other people's fate. Sometimes the heads of the courts issue unqualified instructions. On the proposal of our president, a commission for preparing proposals on reforming the court and legal system has been formed under the Supreme Assembly [parliament] and leading lawyer, Abdusamad Polvonzoda, was appointed its head. I believe that the commission will submit important proposals on reforming the court and legal system.

On the issue of some incorrect decisions I have to speak a little about the process of selecting the candidates to the posts of judges. The personnel departments of the Board of Justice and the Ministry of Justice have wide powers in selecting specialists to the posts of judges. But for some reason these departments do not present the list to the minister or his deputies of specialists with many years of experience working in courts. These departments also groundlessly and with insignificant pretexts return the documents of those recommended by their employers. As a result, many posts of judges stay vacant for months and even years and this has a negative impact on the work of the courts.

Fortunately, the government does not ignore the influential factors during the renewal process. The Decree On the Formation of an Advanced Commission for Selecting the Judges and Recommending to the Posts issed by President Islam Karimov on 5th May will serve as an important basis for the realization of democratic reforms in the legal system and improving further the legal services.

t the state guesthouse where he was staying, Chinese President Jiang Zemin met with Uzbek President Islam Karimov on 5th July and had a cordial and friendly conversation with him. Karimov has come to attend the "Shanghai Five" summit as an observer.

Karimov said that he was very glad to meet President Jiang Zemin again. He expressed his gratitude to President Jiang Zemin for showing concern for Uzbekistan and thanked China and the other four nations for inviting him to attend the Dushanbe summit.

Karimov said that he often recalled his meeting with President Jiang Zemin during his visit to China last year. He was deeply moved by the reception and importance given by China to his delegation. He said: Uzbekistan and China treat each other in all sincerity and highly trust each other. Uzbekistan is China's reliable and trustworthy partner. We can cooperate on many issues. Uzbekistan appreciates China's principled stance in world affairs. China occupies an important position in Uzbekistan's foreign policy.

Jiang Zemin said that he was glad to meet Karimov in Dushanbe once again. He said: I welcome you to attend the "Shanghai Five" meeting. Uzbekistan is a country of important influence in the central Asian region. Uzbekistan's participation in the process of "Shanghai Five" cooperation will be of great significance. It will indicate that this cooperation mechanism is moving towards maturity and at the same time has opened a new channel for Sino-Uzbek cooperation.

Jiang Zemin said: The two countries share consensus or similar views on a number of issues. The two sides have common concern and interests. We have an identical position, particularly in attacking separatism, terrorism and extremism, and in maintaining regional peace and stability. I believe that your participation will instill new vitality in the development of the "Shanghai Five" meeting mechanism.

Jiang Zemin stated that he totally agreed with Karimov's appraisal of Sino-Uzbek relations. He said: By virtue of efforts made by the two sides over the past eight years or so, Sino-Uzbek relations have a relatively solid foundation and their cooperation in various fields has been fruitful. Marked achievements have been attained in Sino-Uzbek trade and economic cooperation and the level of their cooperation has been upgraded somewhat. We should continue to try to further promote bilateral relations.

The leaders of the two countries also exchanged views on issues of common concern. Vice-Premier Qian Qichen and others, who accompanied President Jiang Zemin on the trip, were present at the meeting.

zbek Prime Minister Utkir Sultanov and NATO General Secretary George Robertson discussed stability and security in the region, as well as issues relating to the development of bilateral cooperation at their meeting in Tashkent on Wednesday. Then, the NATO general secretary met with Uzbek Defense Minister Yuri Agzamov and Uzbek Minister for Emergency Situations Bakhodir Kasymov.

On Wednesday the information service of the NATO general secretary distributed a press release containing Robertson's views on the prospects of cooperation between NATO and the countries of Central Asia. From NATO's point of view, the importance of Central Asia lies not only in its history and economic potential, but also in its contribution to the stability and security in the Euro-Atlantic area."

"The strengthening of this security and stability has been the cornerstone of NATO's policy in the course of the last ten years," the NATO general secretary said.

he president of the republic of Uzbekistan, Islam Karimov left for the capital of the Republic of Tajikistan, Dushanbe, to take part [as observer] in a regular summit of the Shanghai Five member countries [Kazakhstan, Kyrgyzstan, Tajikistan, Russia, Kazakhstan] on July 5. According to observers, the main issue to be discussed at the meeting will be regional security. The agenda of the meeting also includes fighting international terrorism and putting an end to the smuggling of arms.

Tajik President Emomali Rahmonov received Uzbek President Islam Karimov at the government residence. During the friendly meeting they discussed issues of the summit of the heads of the Shanghai Five and other issues of mutual interest. Emomali Rahmonov expressed his satisfaction with Uzbek President Islam Karimov's participation in the summit of the Shanghai Five.

delegation led by NATO Secretary-General George Robertson was in Uzbekistan July 5-6. During this visit he had a meeting with the prime minister of Uzbekistan, Utkir Sultonov. During the talks the sides noted the need to raise the present Uzbek-NATO cooperation to a new level and discussed plans for future cooperation. Welcoming the high-ranking guest the prime minister noted that after George Robertson took over the leadership of NATO this organization started paying more attention to the issues of global security and our cooperation meets the interests of the two sides. Issues of further cooperation were discussed in the course of talks. They are mainly the fight against international terrorism and illegal circulation of drugs. At the end of the talks the NATO head made a statement to the media.

My visit to Uzbekistan above all means that NATO is paying important attention to reinforcing mutual relations with Uzbekistan and other countries of Central Asia, Lord George Robertson said. Global security and, above all, the threat of terrorism are our common problem and in this direction we have opportunities to cooperate with Uzbekistan.

To a question in what directions it will be developed, the NATO secretary-general said:

The main direction, I think, is peacemaking and operative compatibility. Of course, the issue of terrorism, international terrorism is of topical importance everywhere. Another sector of interest is a programme for science where NATO plays a very active role. We have many things in common with Uzbekistan. In the present world, after the end of the cold war, there is a real opportunity to work together, and for this reason I came to Uzbekistan, as the NATO secretary-general.

NATO Secretary-General George Robertson also visited the republic's defence and emergency situations ministries. Talks on stepping up cooperation continued there. Secretary-General George Robertson delivered a speech to students at the University of World Economy and Diplomacy in the capital Tashkent. Later the delegation led by the NATO secretary-general visited Samarkand and Bukhara.

zbekistan welcomes the fact that the activity of the Shanghai Five is not limited to dealing with border settlement problems, Uzbekistan's President Islam Karimov said at the summit of the Shanghai Five on Wednesday. He attends the meeting for the first time as an observer.

The Uzbek president said the regional group is playing an ever more remarkable role in coping with matters of security, prevention and localisation of conflicts, maintenance of stability, consolidation of law and order, combatting drug trafficking. Karimov said solution of these tasks becomes ever more topical with the mounting threat of the escalation of international terrorism, extremism and separatism and the striving of international extremist centres and forces backing them to implement their far-reaching strategic plans in the region -- not only to undermine peace and security in Central Asian countries but also to shaken stability in neighbour countries.

In this connection the Uzbek president said "there is no need to prove to anyone the closeness of Uzbekistan's approaches to the stances of countries united in the Shanghai Five on matters of preserving stability and strengthening security. The positions of our countries coincide on joint counteraction to such global threats and challenges as international terrorism, aggressive nationalism and separatism, political and religious extremism," the Uzbek president said.

he conflict in Afghanistan is the main factor destabilising the situation in the region. Afghanistan has been turned into a stronghold of international terrorism and extremism, into the main zone for the production of narcotics, Uzbek President Islam Karimov said on Wednesday, addressing the Shanghai Five summit. As long as armed confrontation is going on in Afghanistan, which is reproducing another generation of terrorists, we shall not be guaranteed against the threat of aggressive aspirations, creeping expansion, terrorism and religious extremism, he continued. The Uzbek president said in this connection that Uzbekistan supports international and regional efforts, aimed at resolving the Afghan problem, as well as the desire of the Shanghai Five to see the situation in Afghanistan settled.

ATO and Russia are starting to develop principally new relations, NATO Secretary-General George Robertson said. Roberston arrived in Uzbekistan on an official visit on Wednesday as part of his Central Asian tour.

The NATO secretary-general rivets attention to NATO-Russia cooperation and noted that the Alliance and Russia are recent adversaries and they are exchanging views on such important issues as strategy, defence policy, military doctrine, defence budget and a programme of developing the infrastructure. He stressed that by discussing vital political problems, NATO and Russia are strengthening confidence. Speaking of relations with Uzbekistan, the NATO secretary- general described cooperation between the Alliance and Tashkent as dynamic.

During the first day of his visit, he met Prime Minister Utkir Sultanov to discuss bilateral cooperation and measures to fight terrorism and illegal drugs trafficking. Robertson also met Uzbek Defence Minister Yuri Agzamov for talks on military strategic partnership, primarily Uzbekistan's participation in NATO peacekeeping operations.

he Central Bank of Uzbekistan's key refinancing rate will be 24 per cent with effect from 3rd July, a bank spokesperson told Interfax. Thus, the rate has dropped by a third, from 36 per cent in January to 24 per cent in July. The rate has fallen in line with inflation - which was 1.4 per cent in May compared with 4 per cent in January - financial market recovery and forecast inflation for the year-end. The Central Bank expects commercial banks to follow suit and cut their interest rates on loans to small and medium businesses, private farms and other sectors.

delegation led by Kyrgyz Foreign Minister Muratbek Imanaliyev was in Uzbekistan. A meeting between Muratbek Imanaliyev and Uzbek Foreign Minister Abdulaziz Komilov was held on 2nd of July. They mainly discussed the development of diplomatic relations between the two countries and the further expansion of comprehensive relations between Uzbekistan and Kyrgyzstan, in particular economic cooperation. Appropriate documents were signed as a result of an expanded format meeting including an agreement on travelling between the two Central Asian republics. The accord is signed by Imanaliyev and his Uzbek counterpart Abulaziz Kamilov.

"The agreement stipulates free crossing of the Uzbek-Kyrgyz frontier only for residents of the border zone. All the other nationals of Uzbekistan have to obtain visas at the Kyrgyz embassy in Tashkent," Imanaliyev said. Yet Russian nationals residing in Uzbekistan have no need to seek visas for crossing the Uzbek-Kyrgyz border.

"The agreement is a temporary forced measure," Kamilov noted.

ATO Secretary-General George Robertson begins his tour of Central Asian countries on Monday [3rd July]. He is going to pay official visits to Kazakhstan, Uzbekistan and Kyrgyzstan, where he will meet presidents, foreign ministers and defence ministers, as well as members of parliament of those countries. Robertson will visit Astana on 3rd-4th July, Tashkent on 5th-6th July and Bishkek on 6th-7th July.

zbek President Islam Karimov signed a resolution on 29th June on improving and developing the country's off-exchange currency market. The resolution stipulates rules for the purchase and sale of foreign currency by authorized banks and economic entities and the monthly monitoring of foreign currency revenue "from all sources". It says that authorized banks and economic entitities which violate the procedure for buying, selling and using currency may lose the right for up to six months to buy foreign currency. Prime Minister Otkir Sultonov has been charged with supervising the implementation of the resolution.

he list of authorized banks which have the right to engage in the buying and selling of foreign currency at the exchange offices are:

- the National Bank for Foreign Economic Activity;

- Uzpromstroybank [Uzbek industrial construction bank];

- Asaka Bank;

- Uzzhilzberbank [Uzbek housing and savings bank].

he Cabinet of Ministers [of Uzbekistan] has adopted a resolution on measures for the further liberalization of the currency market and widening the currency exchange operations. With the aim of liberalizing the currency market, widening the currency exchange operations, ensuring a gradual internal convertability of the national currency and preventing violations of the existing legislation on circulation of foreign currency on the territory of the republic, the Cabinet of Ministers resolved:

1. From 1st July 2000, the authorized banks listed in appendix No1 below, which have sufficient foreign currency resources in cash are to be granted the right to carry out operations for freely purchasing and selling cash foreign currency on the territory of Uzbekistan through their specialized currency exchange offices.

The authorized banks listed in appendix No1 are to take measures for increasing the size of currency exchange operations and widening the network of their exchange offices by opening additional offices at airports, other places of crossing border customs, tourism complexes and at trade centres.

2. It should be established that commercial banks which are holders of the general licence for carrying out foreign currency operations and which are not listed in Appendix No1 have the right only to purchase foreign currency. The cash foreign currency bought by commercial banks should be sold to the authorized banks listed in Appendix No1 at the interbank currency market every month. Exchange offices should carry out their work provided that they have appropriate detectors, testors and other necessary modern equipment for establishing the authenticity of foreign currencies. There are no restrictions for buying foreign currencies at exchange offices. Cash foreign currency bought by the exchange offices can only be used for selling it further through the exchange offices. Currency exchange operations are carried out by the authorized banks using their own funds, including the ones bought previously at the currency exchange offices and raised money by using their client's funds which are left after the obligatory selling of currency receipts, as well as by buying at the interbank currency market.

3. To recommend the authorized banks to buy and sell foreign currency at the floating rate according to supply and demand for foreign currency. The ultimate difference between the buying and selling rates of cash foreign currency at the exchange offices should be five per cent.

4. It should be established that the exchange offices of the authorized banks can sell cash foreign currency up to 300 US dollars to residents of the Republic of Uzbekistan with the presentation of their passports, entry visa to a foreign state, air or railway tickets.

The exchange of soms for foreign currency for nonresidents is to be carried out within the limits of the sum which was earlier exchanged to get soms for the foreign currency by presenting a paper from the exchange office confirming it. Taking cash foreign currency out of the republic by private individuals - residents, to the amount exceeding 5,000 US dollars equivalent is to be carried out with the permission of the Central Bank of Uzbekistan.

5. It should be established that the heads of authorized banks are personally responsible for the correctness of the operations at the exchange offices in line with the present legislation.

6. The Ministry of Internal Affairs, the National Security Service, State Taxation Committee and Prosecutor's Office of the Republic of Uzbekistan is to step up measures to suppress the illegal circulation of cash foreign currency on the territory of the republic and to reveal forged banknote in line with the present legislation.

IS industrial output was up 9.7 per cent year-on-year in the first five months of 2000, the CIS Interstate Statistics Committee reported Friday. The highest growth was posted in Kazakhstan (17.1 per cent), Georgia (11.4 per cent), Ukraine (10.8 per cent) and Russia (10.4 per cent). Industrial output was up 8.2 per cent in Tajikistan, 5.4 per cent in Uzbekistan, 5.1 per cent in Belarus, 4.6 per cent in Azerbaijan, 3.9 per cent in Moldova and 3.1 per cent in Armenia. Industrial production slumped 1.7 per cent in Kyrgyzstan. Gross domestic product rose in almost all CIS countries. GDP was up 7.7 per cent in Azerbaijan, 5.4 per cent in Ukraine, 4.5 per cent in Tajikistan, 3.4 per cent in Belarus and Kyrgyzstan and 1.3 per cent in Armenia. In the first quarter of 2000 GDP rose 9.1 per cent in Kazakhstan, 8.4 per cent in Russia, 4.4 per cent in Georgia and 3.0 per cent in Uzbekistan. First quarter state budget revenue exceeded spending in Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Ukraine. CIS countries maintain relatively stable exchange rates on their currency markets, the statistics committee said.

he air defence forces of Russia and Uzbekistan have been put on joint combat duty, a spokesman for the Russian Air Force Staff said on Tuesday [4th July].

The joint duty was to begin in September 2000, the spokesman told the Military News Agency. However the parties managed to prepare air defence armament and materiel and establish proper interaction much earlier. The equipment of air defence command posts provides for exchanging information on the aerial situation in automatic mode 24 hours a day.

The beginning of joint duty shows that Russia and Uzbekistan are strengthening military co-operation, Lieutenant-General Yuriy Bondarev, deputy Air Force commander for the CIS Unified Air Defence System, said. The duty is organized in accordance with the instruction for joint actions of air defence forces on duty, which was approved by the Russian and Uzbek defence ministers on 19th June, he noted.

From now on, joint combat duty under the auspices of the CIS Unified Air Defence System is entrusted to six CIS member states, namely Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Uzbekistan, Bondarev stressed.

ATO Secretary-General George Robertson has called on ex-Soviet states in Central Asia to balance their diplomatic ties with Russia and the West, reflecting the world changes since the end of the Cold War. Robertson was speaking in the Kazakh capital Astana on Tuesday on the first leg of his Central Asia tour that will also take him to Uzbekistan and Kyrgyzstan. He met Kazakh President Nursultan Nazarbayev and other top officials.

"The Cold War is over and it's not any longer a question of choosing things," he told reporters, saying that building on both relationships would "bring the world much closer together."

The West has watched with alarm as the oil-rich states between Russia, China and Iran gradually turn back to Moscow because of a shared concern over rising religious fundamentalism along the southern flank of the former Soviet Union. U.S. officials including Secretary of State Madeleine Albright have visited the area in what political analysts have said are efforts to boost Washington's diminishing influence over the region's increasingly autocratic leaders.

Robertson said NATO shared the concern of Central Asia and Russia over the rising tide of religious fundamentalism. This threat was the main reason behind Uzbek President Islam Karimov's decision to stay in a defence treaty with Russia after he just dodged death in a bomb attack last year. And in a clear snub to NATO, Karimov on Tuesday cancelled his appointment with Robertson and flew instead to Dushanbe where he is expected to meet Russian President Vladimir Putin.

NATO SHARES KAZAKH CONCERNS

Robertson said Kazakhstan would benefit from keeping its options open.

"It makes very good sense for Kazakhstan to maintain good relations with Russia but also keep its connections with the West," he said, adding that NATO understood the special nature of Russia's relationship with its neighbour.

"NATO and Kazakhkstan do share many common concerns...terrorism, drug trafficking and cooperation in event of natural disasters," he said after talks with Nazarbayev.

Kazakh officials said they planned to deepen cooperation with NATO through its Partnership for Peace programme.

"The important questions for us are defence and information from NATO analysts about the areas surrounding Kazakhstan, taking into account the situation in Afghanistan," parliamentary speaker Zharmakhan Tuyakbayev said after meeting Robertson.

Central Asian heads of state, especially Uzbekistan's Karimov accuse Afghanistan's ruling Taleban militia of training radical Moslem rebels who they say stir up rebellion in their countries. The Taleban says it provides only moral support. Robertson also downplayed Karimov's decision to cancel their meeting.

"I will be having discussions in Tashkent with the minister of defence. And I expect that a lot of the subjects that we have discussed this morning will come up in Tashkent," he said.

delegation from the International Civil Aviation Organization led by its president, Assad Kotaite, was in Uzbekistan. President Islam Karimov received the president of the International Civil Aviation Organization.

Having welcomed the respected guest, the head state expressed his satisfaction at meeting him. He said that Uzbekistan attaches great significance to Mr Kotaite's first visit to Uzbekistan. He greatly assessed the organization's role in civil aviation and noted the importance of its work in coordinating international activity in that field. The head of Uzbek state said that the respected guest had an opportunity to closely acquaint himself with not only work in the aviation field but also with life in Uzbekistan as a whole.

During the talks the sides discussed further developing cooperation between Uzbekistan and the International Civil Aviation Organization and noted the need for initiating new links to this end.

The president of the International Civil Aviation Organization expressed his gratitude for the reception and said that acquaintance with Uzbekistan would play an important role in outlining the organization's plans for cooperation and aid in this field.

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ccording Official Press Office, President Islam Karimov received Daewoo Motors President Kim Shin Djong on June 30. He expressed satisfaction with the growing links between Uzbek enterprises and Daewoo. Kim Shin Djong noted that in Uzbekistan, all conditions for the successful activity of Daewoo Motors and its cooperation are present. Details of the discussion has not been disclosed, and it is possible that leaders discussed the upcoming takeover of the Daewoo Motor's assets by Foreign car firm, which is likely to Ford Motors. Daewoo is one of Uzbekistan’s largest corporate partners, with its UzDAEWOOavto car manufacturing facility in Asaka.

uri Sarkisyan has been appointed to coach the Uzbekistan national side, the country's soccer federation said on Monday. Sarkisyan, 45, replaces former Russia coach Pavel Sadyrin, who resigned last month to take over struggling Russian premier division side CSKA Moscow. Sarkisyan, who led Niftchi Fergana to the runners-up spot in last year's Uzbekistan championship, takes charge for the first time in a friendly against North Korea this week. Uzbekistan were the only former Soviet Central Asian republic to qualify for this year's Asian Cup finals which kick off in Lebanon in October. Uzbekistan have been drawn in Group C with Japan, Qatar and Saudi Arabia.